Disclosure readability of firms investigated for books-and-records infractions

2020 ◽  
Vol 18 (1) ◽  
pp. 131-145
Author(s):  
Christopher Demaline
Keyword(s):  
Impression Management ◽  
Publicly Traded ◽  
Cross Sectional ◽  
Content Type ◽  
Unique Nature ◽  
The Usa ◽  
Financial Disclosures ◽  
The Difference ◽  
Sectional Analysis ◽  
Readability Level

Purpose The paper examines the difference in the disclosure readability of SEC investigated firms and the population of firms traded in the USA. This study aims to further refine the obfuscation hypothesis and broader impression management theory. Design/methodology/approach The paper used quantitative cross-sectional analysis of archival data gathered from the SEC Accounting and Auditing Enforcement Release Archive and the SEC EDGAR database. A one-sample t-test was used to compare mean readability levels. Findings The paper provides empirical evidence to support the assertion that disclosures of the firms being investigated for “books-and-records” infractions are more difficult to read than the disclosure of the average publicly-traded firm in the USA. Research limitations/implications First, the study did not make direct matched-pairs comparisons of the readability level. Second, the unique nature of the sample means that the results may not be generalizable. Further research is necessary to expand on this current work. Practical implications The paper includes implications for consideration by accounting standards setters, financial regulators and annual report readers. Originality/value This paper addresses an identified need to study the existence and degree of complexity and obfuscation in financial disclosures.

Does managerial ability affect the quality of environmental financial disclosure?

2019 ◽  
Vol 11 (6) ◽  
pp. 1055-1073
Author(s):  
Jason Chen ◽  
Jennifer Chen
Keyword(s):  
Financial Disclosure ◽  
Capital Expenditures ◽  
Managerial Ability ◽  
Publicly Traded ◽  
Content Type ◽  
The Usa ◽  
Financial Disclosures ◽  
Environmentally Sensitive ◽  
Practical Implications

Purpose The purpose of this paper is to determine whether managerial ability affects the quality of corporate environmental financial disclosures. Design/methodology/approach Regression analysis is used to examine the association between managerial ability and the quality of corporate environmental financial disclosures. Findings The results of primary empirical tests find a negative association between projection errors of corporate environmental capital expenditures and managerial ability. Overall results suggest that (1) managers appear to be equally capable of making relatively accurate projections of total corporate capital expenditures, and (2) managers with higher managerial ability are capable of estimating the projection amounts that appear to be significant, yet do not deviate substantially to what they intend to spend in the subsequent year(s) for legitimation purposes. Research limitations/implications The data collected and analyzed include only publicly traded companies in the environmentally sensitive industries in the USA; therefore, the results should not be generalized to non-US listed, private and non-publicly traded businesses. Practical implications Results of this study provide practical implications for stakeholders in their decision-making. For instance, understanding how different levels of managerial ability affect corporate environmental disclosures quality assists the board of directors in their evaluations of the performance of current top management. Furthermore, when contemplating new laws, governmental agencies and legislators can consider how managerial ability might affect the likelihood of environmentally sensitive businesses to comply with full disclosure and other reporting requirements. Social implications Information regarding top management’s ability to carry out socially acceptable environmental practices is very valuable for investors who are interested in socially responsible and green investing. Originality/value This study contributes to and links between two research streams: managerial ability in management literature and environmental financial disclosure literature. This is the first study that empirically tests whether the managerial ability is a determinant of the quality of corporate environmental financial disclosures.

Consumer willingness to pay for locally produced hard cider in the USA

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kimberly Lynn Jensen ◽  
Karen Lewis DeLong ◽  
Mackenzie Belen Gill ◽  
David Wheeler Hughes
Keyword(s):  
Consumer Preferences ◽  
Alcoholic Beverages ◽  
Cross Sectional ◽  
Content Type ◽  
Apple Cider ◽  
Consumer Demographics ◽  
Factors Influencing ◽  
The Usa ◽  
Targeted Marketing ◽  
Sectional Analysis

Purpose This study aims to determine whether consumers are willing to pay a premium for locally produced hard apple cider and examine the factors influencing this premium. This study examines the influence of hard apple cider attributes and consumer characteristics on consumer preferences for local hard apple cider. Design/methodology/approach Data from a 2019 survey of 875 Tennessee consumers regarding their preferences for a local hard apple cider were obtained. Probit estimates were used to calculate the premium consumers were willing to pay for a locally made hard apple cider and factors influencing this premium. A multivariate probit was used to ascertain factors influencing the importance of attributes (e.g. heirloom apples, sweetness/dryness, sparking/still and no preservatives added) on local hard apple cider preference. Findings Consumers would pay a $3.22 premium for local hard apple cider compared with a $6.99 reference product. Local foods preferences, urbanization, weekly purchases of other alcoholic beverages and shopping venues influenced premium amounts. Other important attributes were sweetness/dryness and no preservatives. Influence of consumer demographics suggests targeted marketing of local ciders could be successful. Originality/value Few studies examine consumer preferences for hard apple ciders. This study represents a cross-sectional analysis of the premium consumers would pay for local hard apple ciders and the importance of other hard apple cider attributes.

Does uncertainty boost overconfidence? The case of financial analysts' forecasts

2014 ◽  
Vol 40 (3) ◽  
pp. 300-324 ◽  
Author(s):  
Véronique Bessière ◽  
Taoufik Elkemali
Keyword(s):  
Stock Returns ◽  
Private Information ◽  
High Tech ◽  
Cross Sectional ◽  
Forecast Dispersion ◽  
Content Type ◽  
The Public ◽  
Public Announcement ◽  
Before And After ◽  
Sectional Analysis

Purpose – This article aims to examine the link between uncertainty and analysts' reaction to earnings announcements for a sample of European firms during the period 1997-2007. In the same way as Daniel et al., the authors posit that overconfidence leads to an overreaction to private information followed by an underreaction when the information becomes public. Design/methodology/approach – In this study, the authors test analysts' overconfidence through the overreaction preceding a public announcement followed by an underreaction after the announcement. If overconfidence occurs, over- and underreactions should be, respectively, observed before and after the public announcement. If uncertainty boosts overconfidence, the authors predict that these two combined misreactions should be stronger when uncertainty is higher. Uncertainty is defined according to technology intensity, and separate two types of firms: high-tech or low-tech. The authors use a sample of European firms during the period 1997-2007. Findings – The results support the overconfidence hypothesis. The authors jointly observe the two phenomena of under- and overreaction. Overreaction occurs when the information has not yet been made public and disappears just after public release. The results also show that both effects are more important for the high-tech subsample. For robustness, the authors sort the sample using analyst forecast dispersion as a proxy for uncertainty and obtain similar results. The authors also document that the high-tech stocks crash in 2000-2001 moderated the overconfidence of analysts, which then strongly declined during the post-crash period. Originality/value – This study offers interesting insights in two ways. First, in the area of financial markets, it provides a test of a major over- and underreaction model and implements it to analysts' reactions through their revisions (versus investors' reactions through stock returns). Second, in a broader way, it deals with the link between uncertainty and biases. The results are consistent with the experimental evidence and extend it to a cross-sectional analysis that reinforces it as pointed out by Kumar.

Leader positive humor and organizational cynicism: LMX as a mediator

2014 ◽  
Vol 35 (4) ◽  
pp. 305-315 ◽  
Author(s):  
Panagiotis Gkorezis ◽  
Eugenia Petridou ◽  
Panteleimon Xanthiakos
Keyword(s):  
Mediating Effect ◽  
Hierarchical Regression ◽  
Public Employees ◽  
Cross Sectional ◽  
Content Type ◽  
Organizational Cynicism ◽  
Member Exchange ◽  
Sectional Analysis ◽  
The Impact ◽  
The Relationship

Purpose – Leader-member exchange (LMX) has been proposed as a core mechanism which accounts for the impact of various antecedents on employee outcomes. As such, the purpose of this paper is to examine the mediating effect of LMX regarding the relationship between leader positive humor and employees’ perceptions of organizational cynicism. Design/methodology/approach – Data were collected from 114 public employees. In order to examine the authors’ hypotheses hierarchical regression analysis was conducted. Findings – As hypothesized, results demonstrated that LMX mediates the relationship between leader positive humor and organizational cynicism. Research limitations/implications – Data were drawn from public employees and, therefore, this may constrain the generalizability of the results. Also, the cross-sectional analysis of the data cannot directly assess causality. Originality/value – This is the first empirical study to examine the mediating effect of LMX in the relationship between leader humor and employees’ perceptions of organizational cynicism.

Firm Characteristics, Relative Efficiency, and Equity Returns

2009 ◽  
Vol 44 (1) ◽  
pp. 213-236 ◽  
Author(s):  
Giao X. Nguyen ◽  
Peggy E. Swanson
Keyword(s):  
Explanatory Power ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Equity Returns ◽  
Firm Characteristics ◽  
Stochastic Frontier Approach ◽  
Cross Sectional ◽  
Firm Efficiency ◽  
The Difference ◽  
Sectional Analysis

AbstractThis study uses a stochastic frontier approach to evaluate firm efficiency. The resulting efficiency score, based on firm characteristics, is the input for performance evaluation. The portfolio composed of highly efficient firms significantly underperforms the portfolio composed of inefficient firms even after adjustment for firm characteristics and risk factors, suggesting a required premium for the inefficient firms. The difference in performance between the two portfolios remains for at least five years after the portfolio formation year. In addition, firm efficiency exhibits significant explanatory power for average equity returns in cross-sectional analysis.

scholarly journals Characteristics of registered clinical trials assessing treatments for COVID-19: a cross-sectional analysis

BMJ Open ◽  
2020 ◽  
Vol 10 (6) ◽  
pp. e039978 ◽  
Author(s):  
Hemalkumar B Mehta ◽  
Stephan Ehrhardt ◽  
Thomas J Moore ◽  
Jodi B Segal ◽  
G Caleb Alexander
Keyword(s):  
Clinical Trials ◽  
Clinical Investigation ◽  
Scientific Progress ◽  
Cross Sectional ◽  
Design Elements ◽  
Cross Sectional Analysis ◽  
Therapeutic Benefits ◽  
Wide Range ◽  
The Usa ◽  
Sectional Analysis

ObjectivesThe coronavirus disease 2019 (COVID-19) pandemic has prompted many initiatives to identify safe and efficacious treatments, yet little is known regarding where early efforts have focused. We aimed to characterise registered clinical trials assessing drugs or plasma treatments for COVID-19.Design, setting and participantsCross-sectional analysis of clinical trials for the treatment of COVID-19 that were registered in the USA or in countries contributing to the WHO’s International Clinical Trials Registry Platform. Relevant trial entries of drugs or plasma were downloaded on 26 March 2020, deduplicated, verified with reviews of major medical journals and WHO websites and independently analysed by two reviewers.Main outcome(s)Trial intervention, sponsorship, critical design elements and specified outcomesResultsOverall, 201 clinical trials were registered for testing the therapeutic benefits of 92 drugs or plasma, including 64 in monotherapy and 28 different combinations. Only eight (8.7%) products or combinations involved new molecular entities. The other test therapies had a wide range of prior medical uses, including as antivirals, antimalarials, immunosuppressants and oncology treatments. In 152 trials (75.7%), patients were randomised to treatment or comparator, including 55 trials with some form of blinding and 97 open-label studies. The 49 (24.4%) of trials without a randomised design included 29 single armed studies and 20 trials with some comparison group. Most trial designs featured multiple endpoints. Clinical endpoints were identified in 134 (66.7%) of trials and included COVID-19 symptoms, death, recovery, required intensive care and hospital discharge. Clinical scales were being used in 33 (16.4%) trials, most often measures of oxygenation and critical illness. Surrogate endpoints or biomarkers were studied in 88 (42.3%) of trials, primarily assays of viral load. Although the trials were initiated in more than 17 countries or regions, 100 (49.8%) were registered in China and 78 (37.8%) in the USA. Registered trials increased rapidly, with the number of registered trials doubling from 1 March to 26 March 2020.ConclusionsWhile accelerating morbidity and mortality from the COVID-19 pandemic has been paralleled by early and rapid clinical investigation, many trials lack features to optimise their scientific value. Global coordination and increased funding of high-quality research may help to maximise scientific progress in rapidly discovering safe and effective treatments.

Are financial derivatives tax havens? Evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wanyi Chen
Keyword(s):  
Stock Exchange ◽  
Tax Avoidance ◽  
Financial Derivatives ◽  
Relevant Research ◽  
Cross Sectional ◽  
Tax Havens ◽  
Content Type ◽  
Potential Risks ◽  
New Perspective ◽  
Sectional Analysis

PurposeThe purpose of this study was to examine whether the use of financial derivatives by business enterprises can avoid taxes and whether tax authorities can detect and effectively enforce measures regarding this emerging tax avoidance method.Design/methodology/approachUsing panel data from the Shanghai and Shenzhen Stock Exchange listed companies from 2008 to 2019, this study used the Heckman self-selection two-stage model and a cross-sectional analysis to test a total of 22,578 samples. Moreover, propensity score matching (PSM), instrumental variable and Heckman MLE methods were conducted in the robustness test.FindingsThe results showed that enterprises could use financial derivatives to avoid taxation. The greater the tax effort is, the more obvious the effect of the company's use of financial derivatives for tax avoidance, which proves challenging for tax authorities to identify and manage.Originality/valueThis study expands on research on corporate tax avoidance and provides a new perspective for the study of financial derivatives. Moreover, it improves relevant research in the field of tax regulation, offering practical guidance for tax authorities to govern the use of financial instruments to prevent potential risks effectively.

The Multinomial, Multiattribute Logit Choice Model

1979 ◽  
Vol 16 (1) ◽  
pp. 124-132 ◽  
Author(s):  
Dennis H. Gensch ◽  
Wilfred W. Recker
Keyword(s):  
Choice Model ◽  
Behavioral Model ◽  
Multinomial Logit ◽  
Choice Modeling ◽  
Cross Sectional ◽  
Individual Level ◽  
Multiattribute Choice ◽  
Regression Approach ◽  
The Difference ◽  
Sectional Analysis

The authors argue that for the cross-sectional multiattribute approach to choice modeling, the multinomial logit is theoretically and empirically superior to the more commonly used regression approach. Other choice methodologies also are discussed briefly in relation to logit. The difference between individual level (where regression is appropriate) and cross-sectional analysis is recognized. Most marketing managers, because of their research goals, will be using a cross-sectional approach. The derivation of the logit from an underlying behavioral model of choice is illustrated. It is this underlying behavioral model of choice that provides logit with several conceptual advantages for modeling a multiattribute choice structure.

Blue ocean leadership activities improve firm performance

2018 ◽  
Vol 11 (2) ◽  
pp. 359-375 ◽  
Author(s):  
Kok Liang Loh ◽  
Shari Mohd Yusof
Keyword(s):  
Firm Performance ◽  
Lean Manufacturing ◽  
Sampling Procedure ◽  
Mediation Effect ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Management Level ◽  
Rigorous Research ◽  
The Difference

Purpose The purpose of this paper is to investigate the mediation effect of Blue Ocean Leadership (BOL) activities between lean manufacturing (LM) practices and firm performance. Design/methodology/approach This study applied sequential mixed method with expert opinion in the first stage and cross-sectional survey from automotive vendor companies in the second stage. The samples were drawn using random sampling procedure from automotive vendor companies in Malaysia with the final number of respondents of 64. Four main hypotheses were developed and tested statistically by applying multivariate data analysis using SmartPLS3.0 SEM software. Findings The results provide evidence that LM practices have positive and significant impact on firm performance. Moreover, activities of Genba-Kaizen significantly improve the firm performance by an amazing 30 per cent. Research limitations/implications The data used in the survey represent self-reporting by mainly the top management in operations or production. It is recommended for future study to include middle and lower management level to understand the difference of their activities. Besides, it is proposed to extent the population beyond automotive industry. Practical implications This study contributes to the LM body of knowledge by identifying the relationships between the LM practices, firm performance and BOL activities. Understanding these will help lean practitioners especially the leaders in making better decision in both manufacturing and service organizations. Thus, increasing the staff motivation and engagement eventually contributes to the firm performance. Originality/value Although there are growing numbers of anecdotal and empirical evidences in favour of LM in manufacturing environment, there has been almost no theory-building and methodologically rigorous research examining the link between the leaders’ activities with LM practices and firm performance. This study is addressing such gaps.

Fear of terrorism and its correlates in young men and women from the United States and South Korea

2020 ◽  
Vol 12 (1) ◽  
pp. 21-32
Author(s):  
Fang Hong ◽  
Yijing Lin ◽  
Mikyung Jang ◽  
Amanda Tarullo ◽  
Majed Ashy ◽  
...  
Keyword(s):  
College Students ◽  
Social Anxiety ◽  
South Korea ◽  
Moral Disengagement ◽  
The United States ◽  
Negative Outcomes ◽  
Cross Sectional ◽  
Content Type ◽  
Mediation Analyses ◽  
The Usa

Purpose The purpose of this study was to examine associations between fear of terrorism and several predictors (gender and nationality) and outcomes (moral disengagement, authoritarianism, aggression and social anxiety) in the USA and South Korean young adults. Of particular interest were the potential moderating and mediating roles of moral disengagement between fear of terrorism and the other outcomes. Design/methodology/approach Samples of 251 college students from the USA and 211 college students from South Korea completed survey packets including measures of fear of terrorism, moral disengagement, authoritarianism, aggression and social anxiety. Findings US participants expressed greater concern about a terrorist threat to their country, while South Koreans worried more about terrorist threats to their family or themselves. Females in both countries reported greater fear of terrorism and social anxiety. In both countries, fear of terrorism was associated with aggression, social anxiety and moral disengagement. Mediation analyses showed that fear of terrorism exerted a significant direct effect and an indirect effect via moral disengagement on aggression and authoritarianism in the US sample. Moderation analyses revealed that moral disengagement moderated the relationship between fear of terrorism and social anxiety in the Korean sample. Research limitations/implications This study has the common limitations of cross-sectional studies; i.e. it cannot prove causal relationships. Practical implications The findings support Albert Bandura’s view that efforts to address the excesses of counterterrorism and other negative outcomes of fear of terrorism, attending to issues of moral disengagement may be helpful. Originality/value The authors findings provide support for the view that fear of terrorism is associated with negative psychological and social outcomes and that moral disengagement can play an important role in those negative outcomes. Moreover, it adds to evidence that the negative role of moral disengagement shows considerable generalizability across gender and two very different cultures.

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