Unintended Consequences of Lowering Disclosure Thresholds

2014 ◽  
Vol 90 (1) ◽  
pp. 301-320 ◽  
Author(s):  
Kirsten Fanning ◽  
Christopher P. Agoglia ◽  
M. David Piercey
Keyword(s):  
Unintended Consequences ◽  
Data Availability ◽  
Perceptions Of Risk ◽  
Different Types ◽  
Low Threshold ◽  
Low Probability ◽  
Plausible Reason ◽  
Overall Risk

ABSTRACT In recent years, regulators have considered several initiatives to lower the threshold for disclosing risks to investors. We examine two ways in which disclosing more risks can actually lower investors' perceptions of risk. Utilizing an experiment, we find evidence of two unintended consequences on different types of investors. First, we demonstrate that the addition of low-probability risks to a disclosure can dilute (rather than add to) more probable losses, leading certain investors to lower their perceptions of overall risk. Second, since lowering the threshold changes the overall composition of the disclosure by adding low-probability losses, firms could adopt a tactic of minimization that characterizes the entire disclosure as unimportant, presenting the lowest risks most saliently, using compliance with the low threshold as a plausible reason for giving a lengthy disclosure of generally unimportant risks. Our findings suggest that such a tactic can be persuasive. Data Availability: Contact the authors.

Retroactive Tax Legislation, Reported Earnings, and Investors' Responses to Earnings “Surprises”: Evidence from R&D Credit Extensions

2016 ◽  
Vol 38 (2) ◽  
pp. 87-109 ◽  
Author(s):  
Brian Bratten ◽  
David S. Hulse
Keyword(s):  
Financial Reporting ◽  
Stock Prices ◽  
Unintended Consequences ◽  
Data Availability ◽  
Substantial Part ◽  
Tax Rates ◽  
Financial Reporting Standards ◽  
Average Decrease ◽  
Tax Legislation ◽  
Reported Earnings

ABSTRACT When Congress retroactively extends a temporary tax rule, the effect on earnings is complex because financial reporting standards require firms to apply the integral method using enacted tax law to determine quarterly income tax expense. We model this effect and examine earnings announcements following retroactive extensions of the federal R&D tax credit to test how investors incorporate the effect into stock prices. We find that investors respond when earnings are announced, even though the effect could have been determined several weeks earlier. We also show that in recent years, the effects of retroactive extensions of the credit are a substantial part of the average decrease in effective tax rates (ETRs) from the third to fourth quarter for calendar-year firms. Our results have implications for investors and researchers examining earnings and ETRs around retroactive extensions of temporary tax rules and suggest that congressional delays and GAAP interact to produce unintended consequences. JEL Classifications: M41; M48; G14; H25. Data Availability: Data used in this study are available from the sources identified in the text.

The Effects of Unfulfilled Preferential Treatment and Review Dispersion on Airbnb Guests’ Attitudes and Behavior

2021 ◽  
pp. 109634802110669
Author(s):  
Xiaoyun Zheng ◽  
Lu Zhang ◽  
Nathan Line ◽  
Wei Wei
Keyword(s):  
Attribution Theory ◽  
Unintended Consequences ◽  
Preferential Treatment ◽  
Negative Attitudes ◽  
Consumer Evaluations ◽  
Different Types ◽  
Dispersion Condition ◽  
And Behavior ◽  
Attitudes And Behavior ◽  
Low Dispersion

In sharing accommodation business such as Airbnb, while the provision of personalized amenities and services may seem like good business, hosts should be aware of the potential unintended consequences when they are not able to deliver what they promise. The present research examines how expectation gaps created by guest reviews interact with different types of preferential services to subsequently affect consumer behavior in the peer-to-peer accommodation economy. Grounded in attribution theory, this study offers new insights on customer responses to unfulfilled preferential treatment. The results suggest that in the condition of utilitarian services (e.g., airport transportation), participants in the low dispersion condition exhibited more negative attitudes, a lower level of repurchase intention, and a decreased willingness to write an online review. Conversely, in the condition of hedonic services (e.g., perform a talent show), expectation discrepancy did not result in different consumer evaluations across the dispersion conditions.

scholarly journals COVID-19: the relationship between perceptions of risk and behaviours during lockdown

2020 ◽  
Author(s):  
Richard Douglas Brown ◽  
Lynne Coventry ◽  
Gillian V Pepper
Keyword(s):  
Mortality Risk ◽  
Perceived Risk ◽  
Risk Perceptions ◽  
Health Behaviours ◽  
Unintended Consequences ◽  
Perceptions Of Risk ◽  
Extrinsic Mortality ◽  
Nationally Representative ◽  
The Uk ◽  
Threat To Life

Background Understanding COVID-19 risk perceptions and their impact on behaviour can improve the effectiveness of public health strategies in the future. Prior evidence suggests that, when people perceive uncontrollable risks to their health, they are less likely to make efforts to protect their health in those ways which they can control (e.g. through diet, exercise, and limiting alcohol intake). It is therefore important to understand the extent to which the threat of COVID-19 is perceived to be an uncontrollable risk, and to assess whether this perceived risk is associated with differences in health behaviour. MethodsWe surveyed a nationally representative sample of 496 participants, shortly after the peak of the pandemic in the UK. We collected data to assess people’s perceptions of COVID-19-related risk, and how these perceptions were associated with behaviours. We examined self-reported adherence to behaviours recommended by the UK Government and National Health Service to prevent the spread of the virus, as well as more general health behaviours. We predicted that increased perceived extrinsic mortality risk (the portion of a person’s mortality risk which they perceive to be uncontrollable) would disincentivise healthy behaviour. ResultsPerceived threat to life was found to be the most consistent predictor of reported adherence to measures designed to prevent the spread of infection. Perceived extrinsic mortality risk was found to have increased due to the pandemic, and was also associated with lower reported adherence to Government advice on diet and physical activity, as well as smoking. ConclusionsOur findings suggest that promoting a message that highlights threat to life may be effective in raising levels of adherence to measures of infection control, but may also have unintended consequences, leading to a reduction in health-promoting behaviours. We suggest that messages that highlight threat to life should be accompanied by statements of efficacy, and that messages evoking feelings of concern for others may also be effective in promoting compliance with anti-infection measures.

scholarly journals Are "Clean" Cosmetic Products Really Clean? A Pilot Study on the Validity of Cosmetic Labeling

2021 ◽  
Author(s):  
Jeannie H. Phan ◽  
Khine K. Kyaw ◽  
Julia K. Tan ◽  
Emily Q. Lam ◽  
Cheng-Kuan Lin
Keyword(s):  
Public Education ◽  
Regression Model ◽  
Reproductive Toxicity ◽  
Data Availability ◽  
Cosmetic Products ◽  
Health Concerns ◽  
Different Types ◽  
Labeling System ◽  
Inform Decision Making ◽  
Beauty Products

Abstract Background As a result of increased demand for environmental and health-conscious cosmetics, retailers have increasingly marketed their products using terms such as “clean” or "non-toxic". Sephora, a popular beauty retailer, implemented a clean seal system to label and promote their products. This study aims to compare the toxicity concerns of clean vs. non-clean products by using the Environmental Working Group (EWG)'s Skin Deep framework. Methods EWG’s Skin Deep Framework was used to rank products based on their cancer, allergy and immunotoxicity, developmental and reproductive toxicity, and use-restriction concerns, with lower scores indicating a cleaner product (ranging 0–10). The distributions of EWG scores among clean and non-clean products were investigated and stratified by different types of products (i.e. fragrance, hair, makeup, or skincare). A multivariable linear regression model was further applied to evaluate the association between EWG scores and clean seals, adjusting by types of products, level of toxicity concerns. Results 356 products were screened, including 180 (50.56%) clean products and 176 (49.44%) non-clean products. Clean products yielded a higher percentage of low hazard ingredients compared to non-clean products. EWG scores are positively correlated with the levels of toxicity concern for cancer, allergy and immunotoxicity, respectively. Clean products are also associated with a lower EWG score by 0.71 in the regression model. Fragrance products are most hazardous, with a 2.42 increase in EWG score. Conclusions Products under the binary “clean beauty” labeling system at Sephora may not necessarily capture the nuances of EWG’s ten-point scoring system and various dimensions of health concerns. It may be insufficient for consumers to solely rely on the presence of the clean seal when purchasing beauty products. Consulting multiple frameworks and sources to inform decision-making is crucial in addressing knowledge gaps. Further research and increased data availability from EWG’s database are necessary as well as public education on the application of Sephora’s clean seal.

An Empirical Analysis of Employee Responses to Bonuses and Penalties

2020 ◽  
Vol 95 (6) ◽  
pp. 395-412 ◽  
Author(s):  
Wim A. Van der Stede ◽  
Anne Wu ◽  
Steve Yu-Ching Wu
Keyword(s):  
Employee Turnover ◽  
Selection Effect ◽  
Unintended Consequences ◽  
Data Availability ◽  
Marginal Effect ◽  
Confidentiality Agreement ◽  
And Performance ◽  
Bonuses And Penalties ◽  
Employee Responses ◽  
Chip Manufacturer

ABSTRACT We examine how employees respond to bonuses and penalties using a proprietary dataset from an electronic chip manufacturer in China. First, we examine the relative effects of bonuses and penalties and observe a stronger effect on subsequent effort and performance for penalties than for bonuses. Second, we find that the marginal sensitivity of penalties diminishes faster than that of bonuses, indicating that the marginal effect of a bonus may eventually exceed that of a penalty as their value increases. Third, we find an undesirable selection effect of penalties: penalties increase employee turnover, especially for skillful and high-quality workers. These results may help inform our understanding of the observed limited use of penalties in practice due to their bounded effectiveness and possible unintended consequences. Data Availability: The confidentiality agreement with the company that provided data for this study precludes the dissemination of detailed data without the company's consent.

The Factors that Affect Accountants' Decisions to Seek Careers with Big 4 versus Non-Big 4 Accounting Firms

2012 ◽  
Vol 26 (2) ◽  
pp. 239-264 ◽  
Author(s):  
Penelope L. Bagley ◽  
Derek Dalton ◽  
Marc Ortegren
Keyword(s):  
Behavioral Control ◽  
Data Availability ◽  
Accounting Students ◽  
Perceived Behavioral Control ◽  
Additional Insight ◽  
Accounting Firms ◽  
Accounting Professionals ◽  
Big 4 ◽  
Different Types ◽  
Insight Into

SYNOPSIS Finding qualified accounting staff has consistently been a top issue facing CPA firms. However, little is known about the factors that influence accountants' decisions to seek careers with different types of firms. In our paper, we use Ajzen's (1991) theory of planned behavior to examine the reasons why some accountants seek careers at Big 4 firms, while other accountants seek careers at non-Big 4 firms. We survey accounting students and find that attitudes, subjective norms, and perceived behavioral control each influence firm-choice decisions. To provide additional insight into our results, we survey accounting professionals from Big 4 and non-Big 4 accounting firms. We find that, overall, students' perceptions, while more limited, are similar to those of accounting professionals. Further, we find that accounting professionals provide a number of insightful comments that offer several important implications for accounting firms. Finally, we assess whether accounting professionals perceive that certain types of accounting students are more likely to succeed at Big 4 versus non-Big 4 firms, and whether recruiting efforts are consistent with these perceptions. Data Availability: Data are available upon request.

Magnetic nanoparticles: mechanistic studies on the cancer cell interaction

2016 ◽  
Vol 5 (5) ◽  
Author(s):  
Joe Antony Jacob ◽  
Jumah Masoud Mohammad Salmani ◽  
Baoan Chen
Keyword(s):  
Cell Death ◽  
Magnetic Nanoparticles ◽  
Anticancer Activity ◽  
Cancer Cells ◽  
Cell Interaction ◽  
Mechanistic Studies ◽  
Normal Cells ◽  
Different Types ◽  
Induction Of Apoptosis ◽  
Plausible Reason

AbstractMagnetic nanoparticles are renowned for their anticancer activity. Recent studies have elucidated that magnetic nanoparticles induce cytotoxicity by induction of apoptosis in cancer cells. The magnetic nanoparticles can also be biosynthesized, and this presents an added advantage along with the concept of limited toxicity to normal cells. This review focuses on the mechanistic studies performed on the anticancer activity of different types of magnetic nanoparticles. Apoptosis was shown to be the most plausible reason behind the cell death mediated by various types of magnetic nanoparticles.

Changes in muscle stiffness produced by motor units of different types in peroneus longus muscle of cat

1990 ◽  
Vol 63 (1) ◽  
pp. 190-197 ◽  
Author(s):  
J. Petit ◽  
G. M. Filippi ◽  
F. Emonet-Denand ◽  
C. C. Hunt ◽  
Y. Laporte
Keyword(s):  
Dynamic Stiffness ◽  
Muscle Tension ◽  
Muscle Length ◽  
Motor Units ◽  
Muscle Stiffness ◽  
Peroneus Longus ◽  
Mechanical Responses ◽  
Longus Muscle ◽  
Different Types ◽  
Low Threshold

1. The effects of maximal tetanic contractions of varying numbers of motor units of the same type [slow (S), fast fatigue-resistant (FR), or fast fatigable (FF)] on the mechanical responses to muscle stretch were studied in the peroneus longus muscle of anesthetized cats. 2. Two types of stiffness measurements were made: 1) an average stiffness, defined as the tension change from the beginning to end of a 0.5-mm ramp stretch; and 2) a dynamic stiffness, defined as the ratio of peak-to-peak tension to amplitude of a maintained 85-microns sinusoidal stretch at frequencies of 10-80 Hz. 3. Contractions of slow and fast units elicited different increases in average stiffness. Type S units, although developing much smaller tetanic tensions than fast ones, produced a resistance to stretch comparable with or greater than that of fast units developing much higher tensions. 4. For comparable tetanic tensions, slow units also elicited a greater dynamic stiffness than fast units. During sinusoidal stretch, changes in muscle tension led changes in muscle length during contraction of S units, but the reverse was observed for frequencies 30-50 Hz during contraction of FF units. This suggests that the latter perform oscillatory work on the driving apparatus. 5. Type S units, whose low-threshold motoneurons are the first to be recruited, appear well adapted to play a role in posture and in slow movements because of the resistance they offer to forces tending to change joint position or to oppose the progression of slow movements.

scholarly journals Are "Clean" Cosmetic Products Really Clean? A Pilot Study on the Validity of Cosmetic Labeling

2021 ◽  
Author(s):  
Jeannie Phan ◽  
Khine Kyaw ◽  
Julia Tan ◽  
Emily Lam ◽  
Cheng-Kuan Lin
Keyword(s):  
Public Education ◽  
Regression Model ◽  
Reproductive Toxicity ◽  
Data Availability ◽  
Cosmetic Products ◽  
Health Concerns ◽  
Different Types ◽  
Labeling System ◽  
Inform Decision Making ◽  
Beauty Products

Abstract Background As a result of increased demand for environmental and health-conscious cosmetics, retailers have increasingly marketed their products using terms such as “clean” or "non-toxic". Sephora, a popular beauty retailer, implemented a clean seal system to label and promote their products. This study aims to compare the toxicity concerns of clean vs. non-clean products by using the Environmental Working Group (EWG)'s Skin Deep framework. MethodsEWG’s Skin Deep Framework was used to rank products based on their cancer, allergy and immunotoxicity, developmental and reproductive toxicity, and use-restriction concerns, with lower scores indicating a cleaner product (ranging 0- 10). The distributions of EWG scores among clean and non-clean products were investigated and stratified by different types of products (i.e. fragrance, hair, makeup, or skincare). A multivariable linear regression model was further applied to evaluate the association between EWG scores and clean seals, adjusting by types of products, level of toxicity concerns.Results356 products were screened, including 180 (50.56%) clean products and 176 (49.44%) non-clean products. Clean products yielded a higher percentage of low hazard ingredients compared to non-clean products. EWG scores are positively correlated with the levels of toxicity concern for cancer, allergy and immunotoxicity, respectively. Clean products are also associated with a lower EWG score by 0.71 in the regression model. Fragrance products are most hazardous, with a 2.42 increase in EWG score.ConclusionsProducts under the binary “clean beauty” labeling system at Sephora may not necessarily capture the nuances of EWG’s ten-point scoring system and various dimensions of health concerns. It may be insufficient for consumers to solely rely on the presence of the clean seal when purchasing beauty products. Consulting multiple frameworks and sources to inform decision-making is crucial in addressing knowledge gaps. Further research and increased data availability from EWG’s database are necessary as well as public education on the application of Sephora’s clean seal.

scholarly journals Open Government for all? Co-creating digital public services for older adults through data walks

2019 ◽  
Author(s):  
Juliane Jarke
Keyword(s):  
Older Adults ◽  
Digital Divide ◽  
Open Data ◽  
Open Government ◽  
Design Work ◽  
Design Decisions ◽  
User Test ◽  
Different Types ◽  
Design Activities ◽  
Low Threshold

Purpose – The purpose of this paper is to review interventions/methods for engaging older adults in meaningful digital public service design by enabling them to engage critically and productively with open data and civic tech.Design/methodology/approach – The paper evalutes data walks as a method for engaging non-tech-savvy citizens in co-design work. These were evaluated along a framework considering how such interventions allow for sharing control (e.g. over design decisions), sharing expertise and enabling change.Findings – Within a co-creation project, different types of data walks may be conducted, including ideation walks, data co-creation walks or user test walks. These complement each other with respect to how they facilitate the sharing of control and expertise, and enable change for a variety of older citizens.Practical implications – Data walks are a method with a low-threshold, potentially enabling a variety of citizens to engage in co-design activities relating to open government and civic tech.Social implications – Such methods address the digital divide and further social participation of non-tech-savvy citizens. They value the resources and expertise of older adults as co-designers and partners, and counter stereotypical ideas about age and ageing.Originality/value – This pilot study demonstrates how data walks can be incorporated into larger co-creation projects.

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