Linguistic tone of management discussion and analysis disclosures and the municipal debt market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kevin T. Rich ◽  
Brent L. Roberts ◽  
Jean X. Zhang
Keyword(s):  
State Level ◽  
Municipal Bond ◽  
Content Type ◽  
Rating Agencies ◽  
Final Sample ◽  
Debt Market ◽  
Linguistic Tone ◽  
Municipal Debt ◽  
Disclosure Tone ◽  
Market Consequences

PurposeAs the management discussion and analysis (MD&A) section contains discretionary narrative disclosures regarding a government's yearly financial changes and status, the authors investigate several municipal debt market consequences of linguistic tone within these disclosures.Design/methodology/approachThe authors textually analyze municipal MD&As with Linguistic Inquiry and Word Count (LIWC) software and develop narrative tone measures based on existing financial-specific dictionaries. Using a final sample of 446 municipal bond issuances from 2012 to 2016, the authors modify the current bond regression models to examine the association between MD&A disclosure tone and future bond interest costs or rating disagreements.FindingsThis study’s empirical analysis suggests that more negative MD&A tone is associated with higher future debt costs and greater future disagreements among bond rating agencies.Practical implicationsOverall, the evidence implies that municipal bond stakeholders use the information in narrative disclosures when evaluating risk, but that the qualitative nature can introduce differences in interpretation between users. Furthermore, additional training in MD&A writing and further standard guidance in MD&A disclosures could improve the MD&A's informativeness for bond market decision-making and state-level monitoring.Originality/valueThis study is first to incorporate narrative tone measures into bond models in a governmental context.

Shifts elsewhere could build up Polish policy doubts

2016 ◽  
Keyword(s):  
Oil Prices ◽  
Bond Yields ◽  
Content Type ◽  
Rating Agencies ◽  
New Information ◽  
Inflation Rates ◽  
Debt Market ◽  
Low Levels ◽  
One Year ◽  
Nationalist Government

Significance Poland's rating, therefore, remains at A2, despite persistent concerns about the policies of its one-year-old nationalist government, in particular, the threats to the independence of the country's institutions. Impacts Central Europe's inflation rates are at unprecedentedly low levels, with Poland and Hungary still experiencing deflation. Central bank action will be key, particularly the ECB, which disappointed markets on September 8 by downplaying the need for more stimulus. This is despite oil prices rising sharply since mid-January, with Brent crude nearly 70% up to just over 47 dollars per barrel. Investors' 'reach for yield' amid negative bond yields across Europe and Japan will fuel concerns about an EM debt market 'bubble'. Rating agencies' assessments of sovereign creditworthiness are being disregarded as backward-looking and revealing little new information.

Does a firm’s bond IPO influence monitoring by private lenders?

2016 ◽  
Vol 12 (5) ◽  
pp. 498-528 ◽  
Author(s):  
Tashfeen Hussain
Keyword(s):  
Public Debt ◽  
Free Cash Flow ◽  
Primary Data ◽  
Firm Characteristics ◽  
Cross Sectional ◽  
Content Type ◽  
Final Sample ◽  
Debt Market ◽  
Sectional Analysis ◽  
Private Loans

Purpose The purpose of this paper is to investigate whether a firm’s undertaking of a bond IPO influences the monitoring of the private loans granted to the firm by private lenders. If it does, in which direction the monitoring changes? Design/methodology/approach The author uses both univariate and multivariate analyses to test the hypothesis. For the purposes of this research, the author’s primary data sources are LPC Dealscan, which provides data on private loans; Mergent FISD, which provides data on public bond issues; and the Compustat Industrial Annual Database, which provides the required financial data for the sample firms. The author’s sample covers non-financial US firms for the period of 1991-2010. The author’s final sample consists of nearly 23,000 private loans granted to about 5,500 non-financial US firms. Findings The major finding of this research is that private lenders increase their degree of monitoring of loans that they extend to a firm after it issues a bond IPO. The results of the two-stage bond IPO anticipation model further strengthen the findings. The evidence suggests that as the firm issues public debt for the first time, private lenders get concerned about the potential increase of agency problems and leverage, and consequently, find it valuable to increase the degree of monitoring of loans. Also, the magnitude of change in monitoring is strongly influenced by the degree of information asymmetry, leverage, profitability, and potential to waste free cash flow. Originality/value This paper enhances one’s understanding of the contracting dynamics between private lenders and the firm as it issues in the public debt market. The findings can aid firms anticipate the borrowing conditions they will face if they undertake a bond IPO. Further, the cross-sectional analysis on covenant changes from pre- to post-bond IPO period identifies specific firm characteristics that impact the magnitude of change of covenant intensity and comprehensiveness. As a result, uncertainty regarding post-bond IPO outcomes is reduced for borrowing firms.

Variations in economic growth across states in Malaysia: an exploratory analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yusniliyana Yusof ◽  
Kaliappa Kalirajan
Keyword(s):  
Economic Growth ◽  
Socioeconomic Development ◽  
Secondary Data ◽  
State Level ◽  
Bootstrap Sampling ◽  
Content Type ◽  
Estimation Techniques ◽  
Development Index ◽  
Three Stage Least Squares ◽  
Development Gap

PurposeThe study contributes to the aim of regional development policy in reducing regional disparities, by examining the spatial balance in socioeconomic development across the states of Malaysia based on composite development index (CDI). Besides, the study has attempted to understand the issues in the development gaps across Malaysian states by evaluating the factors that explain the variation in economic growthDesign/methodology/approachThis study uses three-stage least squares (3SLS) and bootstrap sampling and estimation techniques to examine the factors that explain the variations in the growth of development across the states in Malaysia. The analysis involves 13 states in Malaysia (Johor, Melaka, Negeri Sembilan, Pulau Pinang, Perak, Perlis, Selangor, Kedah, Kelantan, Pahang, Terengganu, Sabah and Sarawak) from 2005 to 2015.FindingsThe pattern in the spatial socioeconomic imbalance demonstrates a decreasing trend. However, the development index reveals that the performance of less developed states remained behind that of the developed states. The significant factors in explaining the variation in growth across the Malaysian states are relating to agriculture, manufacturing, human capital, population growth, Chinese ethnicity, institutional factors and natural resources.Research limitations/implicationsThe authors focused on Malaysian states over the period between 2005 and 2015. The authors encountered some limitations in obtaining relevant data such as international factors and technological change that might also explain the variation in economic growth as the data on these variables are not reported at the state level. Moreover, the data on GSDP by sector was only available from the year 2005. Second, the study is based on secondary data. Future studies might examine the factors that contribute to the development gap across Malaysian states through interviews or questionnaires and compare the findings with the existing results. Despite its limitations, this study contributes to the existing literature that emphasizes on spatial balance of socioeconomic in a developing country, focusing on Malaysian states.Practical implicationsThese findings provide guidance for policymakers by understanding key potential areas to reduce the disparity in economic growth across Malaysian states by understanding their impact on the growth.Originality/valueThis study employs different method of 3SLS and bootstrap sampling and estimation techniques in examining the factors that explain the variations in the growth of development across the states in Malaysia.

Role of burnout on job level, job satisfaction, and task performance

2017 ◽  
Vol 38 (5) ◽  
pp. 630-645 ◽  
Author(s):  
Won Ho Kim ◽  
Young-An Ra ◽  
Jong Gyu Park ◽  
Bora Kwon
Keyword(s):  
Job Satisfaction ◽  
Task Performance ◽  
Organizational Context ◽  
Content Type ◽  
Job Level ◽  
Mediating Role ◽  
Final Sample ◽  
The Relationship ◽  
And Task

Purpose The purpose of this paper is to examine the mediating role of burnout (i.e. exhaustion, cynicism, professional inefficacy) in the relationship between job level and job satisfaction as well as between job level and task performance. Design/methodology/approach The final sample included 342 Korean workers from selected companies. The authors employed the Hayes (2013) PROCESS tool for analyzing the data. Findings The results showed that all three subscales of burnout (i.e. exhaustion, cynicism, professional inefficacy) mediate the relationship between job level and job satisfaction. However, only two mediators (i.e. cynicism, professional inefficacy) indicated the mediating effects on the association between job level and task performance. Originality/value This research presented the role of burnout on the relationships between job level, job satisfaction, and task performance especially in South Korean organizational context. In addition to role of burnout, findings should prove helpful in improving job satisfaction and task performance. The authors provide implications and limitations of the findings.

Farm wages and public works

2015 ◽  
Vol 8 (1) ◽  
pp. 19-72 ◽  
Author(s):  
Kanika Mahajan
Keyword(s):  
Theoretical Model ◽  
Wage Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Wage Growth ◽  
State Level ◽  
Random Allocation ◽  
Farm Sector ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS. Design/methodology/approach – To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model. Findings – The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004. Originality/value – This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.

The impact of labor freedom on geographic cost of living differentials

2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan
Keyword(s):  
Labor Market ◽  
State Level ◽  
The State ◽  
Annual Data ◽  
Significant Finding ◽  
Cost Of Living ◽  
Content Type ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.

The geographies of corruption in Nigeria: understanding the patterns and correlates

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Adeleke ◽  
Opeyemi Alabede ◽  
Tolulope Osayomi ◽  
Ayodeji Iyanda
Keyword(s):  
Positive Impact ◽  
Market Competition ◽  
State Level ◽  
Well Being ◽  
Moran’S I ◽  
Market Size ◽  
National Bureau ◽  
Moran's I ◽  
Content Type ◽  
Domestic Debt

Purpose Globally, corruption has been identified as a major problem. Even though corruption is widespread, it varies in magnitude, types and consequences. In Nigeria, corruption is endemic, and it is responsible for the many socioeconomic problems in the country. Hence, the study aims to determine the patterns and state level correlations of corruption in Nigeria. Design/methodology/approach Data for this study were sourced from the National Bureau of Statistics and other official sources and were analyzed with Global Moran’s I, Local Moran’s I and multivariate step-wise regression. Findings This study’s findings revealed significant clustering of corruption in the country with Rivers States as the only hotspot (I = 0.068; z = 2.524; p < 0.05), while domestic debt and market size were the state level significant predictors. Research limitations/implications Only bribery as a form of corruption was examined in this study, more studies are needed on the predictors of other forms of corruption. Practical implications This study recommends increased market competition through investment grants, subsidies and tax incentives to facilitate trade interactions among Nigerians, which can lead to exchange of cultural norms that discourage corruption. It is also advocated that domestic debt must be effectively and efficiently channelled towards economic development which in the long run will have a positive impact on the socio-economic well-being of the citizens as well as drive down corrupt practices. Originality/value Although the causes of corruption have received considerable attention in the literature, little is known on the geographical distribution and the effect of market size and domestic debt on corruption in Nigeria.

Can do and reason to: when are proactive employees willing to share negative information?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura E. Marler ◽  
Susie S. Cox ◽  
Marcia J. Simmering ◽  
Bryan L. Rogers ◽  
Curtis F. Matherne
Keyword(s):  
Online Survey ◽  
Negative Information ◽  
Proactive Personality ◽  
Interactive Effects ◽  
Personality Factors ◽  
Cross Sectional ◽  
Content Type ◽  
Motivational States ◽  
Final Sample ◽  
Cross Sectional Design

Purpose Information sharing is vital to organizational operations, yet employees are often reluctant to share negative information. This paper aims to gain insight into which employees will be reluctant to share negative information and when by drawing from the proactive motivation literature examining effects of proactive personality and motivational states on individuals’ willingness to share negative information. Design/methodology/approach A cross-sectional design was used, with data collected from a final sample of 393 individuals via an online survey. Hypotheses were tested using correlation and hierarchical multiple regression analyses. Findings Interactive effects indicate proactive individuals with accompanying high levels of role breadth self-efficacy (“can do”) or high levels of felt responsibility for constructive change (“reason to”) were less likely to be reluctant to share negative information. However, findings also suggest proactive individuals with lower levels of proactive motivation avoid sharing negative information. Originality/value The findings extend what is known about personality factors and employee willingness to share information to highlight which employees may be likely to avoid sharing negative information. The authors also examine the moderating influence of proactive motivational states on the relationships between proactive personality and reluctance to share negative information.

How far are we from understanding corruption? The effect of cultural distance on corruption perception

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mike Szymanski ◽  
Ivan Valdovinos ◽  
Evodio Kaltenecker
Keyword(s):  
Cultural Differences ◽  
International Business ◽  
Design Methodology ◽  
Cultural Distance ◽  
State Level ◽  
Generalized Least Squares ◽  
Content Type ◽  
The Usa ◽  
Corruption Perception ◽  
The Relationship

Purpose This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research. Design/methodology/approach The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations. Findings The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark. Research limitations/implications CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures. Originality/value To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

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