scholarly journals Birds of a Feather Flocking Together: Sustainability of Tax Aggressiveness of Shared Directors from Coercive Isomorphism

2021 ◽  
Vol 13 (24) ◽  
pp. 14052
Author(s):  
Sumayya Chughtai ◽  
Tayyaba Rasool ◽  
Tahira Awan ◽  
Abdul Rashid ◽  
Wing-Keung Wong
Keyword(s):  
Logistic Regression ◽  
Management Practice ◽  
Tax Reforms ◽  
Firm Level ◽  
Tax Aggressiveness ◽  
Board Interlocks ◽  
The Us ◽  
The Usa ◽  
Empirical Context ◽  
The Impact

The purpose of the study is to examine the sustainability of the tax aggressiveness of shared directors from coercive isomorphism and whether social networks of directors have an impact on their tax aggressiveness. Specifically, the study intends to examine how tax knowledge diffuses across firms and how this knowledge diffusion affects connected firms. To test the constructed hypothesis, the panel logistic regression model is estimated using a firm-level panel dataset for the US and Pakistan to analyze cross-country differences, as the USA holds more legislation and effective governance mechanisms. The study covers the period of 2007–2019. The data required for the empirical analysis was collected from the Thompson Reuters database. The results of panel logistic regression show a significant relationship between tax aggressiveness and director’s connections, suggesting that information diffuses by board interlocks. Specifically, the estimates suggest that there is a positive and significant influence of connected directors on the probability that the tax aggressiveness spreads through coercive isomorphism, inferring that the sustainability of the tax aggressiveness of shared directors from coercive isomorphism is strong. Findings reveal that Pakistani firms, when compared to the USA, are more likely involved in tax aggression because of fewer legislations and tax reforms. The results also reveal that coercive isomorphism significantly mediates the relationship between board interlocks and tax aggressiveness. These findings provide valuable insights into detecting the tax aggressiveness of firms and the channels through which this spread. The study contributes to the scarce research on the impact of board interlocks on tax aggressiveness and the influence of coercive isomorphism on these impacts. This study can help tax authorities in identifying tax-saving strategies through connected directors. Secondly, this study provides empirical evidence to support the diffusion of information regarding tax aggression and provides mechanisms with which to detect tax aggression. Third, our choice of empirical context also helps us contribute to the management practice of firms. CEOs and boards should be wary of interlocks with organizations, lest they inadvertently become reticent and hence prove to be of no good.

scholarly journals Heterogeneous firm-level responses to the US 2018 tariff announcement

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yafeng Qin ◽  
Zikai Yang ◽  
Min Bai
Keyword(s):  
Hong Kong ◽  
Stock Market ◽  
Mainland China ◽  
Chinese Stock Market ◽  
Firm Level ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
The Usa ◽  
The Impact

PurposeThis study examines the impact of the $60 billion tariff announcement of the US government on the Chinese exporting firms. In particular, it focuses on the firms whose revenues are highly dependent on the US economy.Design/methodology/approachThis study uses an experimental analysis and the event study methodology. The sample includes firms listed in mainland China and Hong Kong Stock Exchanges that have the highest revenues from exporting to the USA. The data are obtained from China Stock Market and Accounting Research (CSMAR) and DataStream.FindingsThe authors find that the tariff announcement has significantly negative impacts on stock performance both before and after the announcement, and the impacts are heterogeneous across all sample firms. For A shares listed in Mainland China, firms with more revenues from the US experience greater price drops on the announcement day, regardless of being in the targeted industry or not. But such finding is absent from H shares listed in Hong Kong. The authors also find that for all the firms, greater pricing power can alleviate the impacts of the tariff announcement.Research limitations/implicationsThe results provide implications to investors, policymakers and regulators on the further US-China cooperation in the future.Originality/valueThis is the first study documenting the heterogeneity of the impact of the tariff announcement and thus contributes to the prosperous studies on the varied firm-level responses in the Chinese stock market, and to the burgeoning literature by filling the gap of the financial market responses to the protectionist policy announcement.

The Impact of the Business Environment on the Formalization of Informal Firms. The Case of Kosovo

Südosteuropa ◽  
2020 ◽  
Vol 68 (4) ◽  
pp. 505-529
Author(s):  
Kujtim Zylfijaj ◽  
Dimitar Nikoloski ◽  
Nadine Tournois
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Business Environment ◽  
Positive Influence ◽  
Policy Implications ◽  
Tax Reforms ◽  
Firm Level ◽  
Characteristics Analysis ◽  
Significant Negative Impact ◽  
The Impact

AbstractThe research presented here investigates the impact of the business environment on the formalization of informal firms, using firm-level data for 243 informal firms in Kosovo. The findings indicate that business-environment variables such as limited access to financing, the cost of financing, the unavailability of subsidies, tax rates, and corruption have a significant negative impact on the formalization of informal firms. In addition, firm-level characteristics analysis suggests that the age of the firm also exercises a significant negative impact, whereas sales volume exerts a significant positive impact on the formalization of informal firms. These findings have important policy implications and suggest that the abolition of barriers preventing access to financing, as well as tax reforms and a consistent struggle against corruption may have a positive influence on the formalization of informal firms. On the other hand, firm owners should consider formalization to be a means to help them have greater opportunities for survival and growth.

The dollar, trade, technology and inequality in the USA

1998 ◽  
Vol 166 ◽  
pp. 78-86 ◽  
Author(s):  
Bob Anderton ◽  
Paul Brenton
Keyword(s):  
Technological Change ◽  
Relative Wage ◽  
Skilled Workers ◽  
Wage Bill ◽  
Sudden Rise ◽  
The Us ◽  
The Usa ◽  
Trade Competitiveness ◽  
The Impact ◽  
High Skill

The US experienced a considerable increase in inequality between skilled and less-skilled workers during the early 1980s—a period which corresponds with a large temporary appreciation of the dollar. This article investigates the reasons behind this rise in inequality by evaluating the impact of trade with low-wage countries (LWCs) and technological change on the wage bill share of skilled workers (which is designed to capture movements in inequality arising from changes in both the relative wage and employment opportunities of the less-skilled). We find that an increase in US imports from LWCs—encouraged by the large appreciation of the dollar in the early 1980s—seems to explain some of the rise in US inequality in low-skill-intensive sectors, but that technological change (proxied by R&D expenditure) explains the rise in inequality in high-skill-intensive sectors. However, given that the timing of the sudden rise in US R&D expenditure corresponds with the appreciation of the dollar, it may be the case that the deterioration in US trade competitiveness during this period contributed to the rapid increase in the rate of technological change via mechanisms such as ‘defensive innovation’. Hence one might also argue that the technology-based explanation for the rise in US inequality could actually be a trade-based explanation.

The speed of change and performance risk: examining the impacts of IT spending in the US hotel industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nan Hua ◽  
Tingting Zhang ◽  
Melissa F. Jahromi ◽  
Agnes DeFranco
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Hotel Industry ◽  
Content Type ◽  
Performance Risk ◽  
The Us ◽  
The Usa ◽  
Revenue Volatility ◽  
The Impact ◽  
Speed Accuracy

Purpose This study aims to investigate the impact of the speed of change (trend) in information technology (IT) expenditures on performance risk indicated by revenue volatility in the US hotel industry. Design/methodology/approach To systematically investigate the impacts of IT expenditures on hotel performance risks, this study collects the same store proprietary data of 1,471 hotel properties from CBRE, a leading hotel consulting firm in the USA, from 2011 to 2017, with a total of 10,297 observations. Findings Econometric analyses are performed and results indicate a significant and positive impact of the speed of change of IT systems expenditures on the performance risk after comprehensively controlling for confounding factors following prior research. Originality/value With the increased importance of IT in day-to-day activities, hospitality business owners have started to quickly adjust their investment in IT infrastructure and superstructure to enhance their business performance. However, their fast-changing expenditures may introduce more risks to their businesses based on the speed–accuracy tradeoff, systems theory and the Schumpeterian Growth Model. This study is one of the pioneer projects that ever assessed the impact of IT expenditure and speed of change on performance risks of hotels.

MO545INSIDE ANEMIA OF CKD: ESTIMATING THE IMPACT OF POLICY INTERVENTIONS ON ANAEMIA OF CKD IN THE USA BY MICROSIMULATION MODELLING

2021 ◽  
Vol 36 (Supplement_1) ◽  
Author(s):  
Lise Retat ◽  
Laura Webber ◽  
Juan Jose Garcia Sanchez ◽  
Claudia Cabrera ◽  
Susan Grandy ◽  
...  
Keyword(s):  
Healthcare Costs ◽  
Severe Anaemia ◽  
Service Planning ◽  
Microsimulation Model ◽  
Model Framework ◽  
The Us ◽  
The Usa ◽  
Direct Healthcare Costs ◽  
The Impact ◽  
Intervention Scenario

Abstract Background and Aims Anaemia is a common complication in patients with chronic kidney disease (CKD) and is associated with increased mortality, cardiovascular complications, reduced quality of life and increased use of healthcare resources. Mathematical modelling based on robust epidemiological and clinical data is a useful approach for predicting the future burden of disease and the impact of different intervention scenarios; this is important for health service planning. This analysis uses a microsimulation model, Inside ANEMIA of CKD, to predict the effects of a hypothetical intervention scenario that reduces the prevalence of anaemia of CKD on related healthcare costs in the USA from 2020 to 2025. Method A virtual cohort representing the US population was created within the Inside ANEMIA of CKD microsimulation model framework using demographics and epidemiological data drawn from the US Census Bureau, the Centers for Disease Control and Prevention, and the National Health and Nutrition Examination Survey. In the cohort, virtual individuals were ascribed an age–sex-stratified CKD status (defined by estimated glomerular filtration rate and albuminuria levels, as per international guidelines) and anaemia status (defined by haemoglobin level as mild, moderate or severe, as per WHO criteria) based on US prevalence data. Key comorbidities (type 2 diabetes, heart failure and hypertension) were also assigned, reflecting US-specific population statistics. Healthcare costs related to CKD and anaemia of CKD were taken from the published literature. The study modelled the effects on healthcare costs of a hypothetical intervention scenario in which the prevalence of moderate and severe anaemia is reduced by 20% per year from 2020 to 2025 compared with no intervention (baseline). In each scenario (i.e. intervention or baseline), the modelling analysis estimated healthcare costs related to CKD and anaemia (including inpatient, outpatient, pharmacy costs) for patients with moderate or severe anaemia of CKD. The model did not adjust for the potential costs of the intervention. Results Preliminary results predict that, with the hypothetical intervention, there could be 1.40 million fewer patients with moderate or severe anaemia of CKD in the USA in 2025 compared with no intervention (1.45 million versus 2.85 million). This represents a 49% reduction in cases of moderate or severe anaemia of CKD in 2025 with the intervention versus no intervention. The intervention is projected to lead to a reduction of approximately US$18 billion in annual direct healthcare costs in 2025 for patients with moderate or severe anaemia of CKD compared with no intervention (US$26 billion versus US$44 billion). Conclusion The Inside ANEMIA of CKD microsimulation model predicts that a hypothetical intervention which reduces the prevalence of moderate and severe anaemia of CKD would reduce direct healthcare costs. This suggests that interventions effective at reducing the prevalence of anaemia of CKD would help to reduce the economic burden on healthcare services.

The Impact of European and Chinese Soft Power on Regional and Global Governance

2007 ◽  
Author(s):  
SEBASTIAN BERSICK
Keyword(s):  
East Asia ◽  
Global Governance ◽  
Soft Power ◽  
Regional Security ◽  
The Us ◽  
The Usa ◽  
The Impact

This chapter returns to issues raised by other authors in this section: the contrast between European, Chinese, and US perceptions of hard and soft power in the contexts of regional and global governance. Taking the ASEM process as a case, it shows how Europeans and Asians have approached the interaction from different institutional perspectives. Despite this, it sees ASEM as a process that reflects, and promotes, the advance of regional institutionalism in East Asia, adding an important dimension to the Europe–China relationship. This is then contrasted with the US strategy of dual divergence: a divergent internal strategy that rejects institutionalism for managing regional security; and an external divergent strategy that rejects the building of shared and reciprocal institutions between the USA and Asia. The chapter concludes that Europe's ‘balancing by convergence’ strategy has advantages over the USA's ‘balancing by divergence’ strategy.

scholarly journals Private Label and Macroeconomic Indicators: Europe and USA

2020 ◽  
Vol 10 (4) ◽  
pp. 91
Author(s):  
Eloy Gil-Cordero ◽  
Francisco Javier Rondán-Cataluña ◽  
Daniel Sigüenza-Morales
Keyword(s):  
Market Share ◽  
European Countries ◽  
Private Label ◽  
Private Labels ◽  
National Brand ◽  
Business Decisions ◽  
The Us ◽  
Macroeconomic Indicators ◽  
The Usa ◽  
The Impact

In this study, we have analyzed the impact and evolution of some of the most important macroeconomic indices on the market share and value of private brands. The originality and objective of this work is the linkage of macroeconomic variables in European countries and the USA with the evolution of private labels in these countries. A sample of 19 European countries and all states within the USA has been collected over a 10-year period, including data on private labels and macroeconomic indices. The analysis of the panel data has been applied using the SPSS software through the Ljung–Box test. The most significant data from the sample study is that for GDP; we advised national brand managers to make a special communication effort in nations that offer a lower GDP within Europe for their volume and in value for the US. On the other hand, it was found that when the unemployment rate increases, the value of private label market share decreases for the US, but increases for Europe, in addition to other findings that will help organizations make different business decisions.

Cigarette and cigar sales in Hawaii before and after implementation of a Tobacco 21 Law

2020 ◽  
Vol 30 (1) ◽  
pp. 98-102 ◽  
Author(s):  
Rebecca Glover-Kudon ◽  
Doris G Gammon ◽  
Todd Rogers ◽  
Ellen M Coats ◽  
Brett Loomis ◽  
...  
Keyword(s):  
Large Scale ◽  
Geographical Area ◽  
Upward Trend ◽  
Food Stores ◽  
The Us ◽  
Before And After ◽  
Youth And Young Adults ◽  
The Usa ◽  
Product Sales ◽  
The Impact

IntroductionOn 1 January 2016, Hawaii raised the minimum legal age for tobacco access from 18 to 21 years (‘Tobacco 21 (T21)’) statewide, with no special population exemptions. We assessed the impact of Hawaii’s T21 policy on sales of cigarettes and large cigars/cigarillos in civilian food stores, including menthol/flavoured product sales share.MethodsCigarette and large cigar/cigarillo sales and menthol/flavoured sales share were assessed in Hawaii, California (implemented T21 in June 2016 with a military exemption), and the US mainland using the only Nielsen data consistently available for each geographical area. Approximate monthly sales data from large-scale food stores with sales greater than US$2 million/year covered June 2012 to February 2017. Segmented regression analyses estimated changes in sales from prepolicy to postpolicy implementation periods.ResultsFollowing T21 in Hawaii, average monthly cigarette unit sales dropped significantly (−4.4%, p<0.01) coupled with a significant decrease in menthol market share (−0.8, p<0.01). This combination of effects was not observed in comparison areas. Unit sales of large cigars/cigarillos decreased significantly in each region following T21 implementation. T21 policies in Hawaii and California showed no association with flavoured/menthol cigar sales share, but there was a significant increase in flavoured/menthol cigar sales share in the USA (7.1%, p<0.01) relative to Hawaii’s implementation date, suggesting T21 may have attenuated an otherwise upward trend.ConclusionsAs part of a comprehensive approach to prevent or delay tobacco use initiation, T21 laws may help to reduce sales of cigarette and large cigar products most preferred by US youth and young adults.

Hurricane Katrina: an environmental perspective

2006 ◽  
Vol 364 (1845) ◽  
pp. 2099-2115 ◽  
Author(s):  
Ewen McCallum ◽  
Julian Heming
Keyword(s):  
Hurricane Katrina ◽  
Observational Studies ◽  
Gulf Coast ◽  
Theoretical Modelling ◽  
Loss Of Life ◽  
The Us ◽  
Hurricane Season ◽  
The Usa ◽  
The Impact ◽  
National Hurricane Center

On 29 August 2005, Hurricane Katrina hit the Gulf Coast of the USA to become one of the worst natural disasters in the country's history. The forecasts and official warnings of the event issued by the US National Hurricane Center up to 60 h ahead were excellent and largely based on an ‘ensemble’ of model and statistical guidance. The Met Office Global Model is highlighted as one of the best performers for Hurricane Katrina. The active 2005 Atlantic hurricane season has fuelled the debate on the impact of climate change on tropical cyclones. Some recent publications have suggested that this impact is already apparent, while others are more cautious. Inconsistencies remain among many of the theoretical, modelling and observational studies. Despite the excellent warnings, there was a tragic loss of life as a result of Hurricane Katrina which has led to political questions concerning complex socio-economic issues, the state of flood defences and how to coordinate the reaction to and mitigate the impact of such monumental natural hazards.

Preference for group work in China and the US

2015 ◽  
Vol 22 (1) ◽  
pp. 90-115 ◽  
Author(s):  
Wayne H. Decker ◽  
Thomas J. Calo ◽  
Hong Yao ◽  
Christy H. Weer
Keyword(s):  
Cultural Values ◽  
Group Work ◽  
Extrinsic Motivation ◽  
Hierarchical Regression ◽  
Global Business ◽  
Content Type ◽  
General Acceptance ◽  
The Us ◽  
The Usa ◽  
The Impact

Purpose – The purpose of this paper is to determine whether Chinese and US students differ in preference for group work (PGW) and whether the factors contributing to PGW differ in the two countries. Design/methodology/approach – The sample included 412 Chinese and 423 US college students who completed a survey measuring cultural values and motives. Hierarchical regression and simple-slope analyses were used to examine main effects and interactions. Findings – Overall, the US and Chinese students did not differ in PGW. Although US men exceeded US women in PGW, no gender difference occurred in China. PGW was positively associated with others focus (concern for what others think) and helping others in both countries, but the association was stronger in China. In China, but not in the USA, PGW was positively associated with extrinsic motivation and need for achievement. Therefore, despite the general acceptance of group work in the USA, participation in groups is not seen as critical in attaining rewards as it is in China. Research limitations/implications – Other populations, including practicing managers, should be studied to better represent the workforce of each country. Also, other variables, including personality traits, may impact PGW. Practical implications – Managers and educators should pay attention to how cultural values and motives of group members vary. Business education should offer more opportunities to increase exposure to cultural differences, including experience working in culturally diverse groups. Originality/value – The study supports some traditional assumptions concerning the impact of culture upon PGW, but also suggests that a global business orientation can mitigate the impact of traditional national cultures.

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