Configuring the Enterprise Systems Portfolio: The Role of Information Risk

Information risk, the likelihood that corporate financial information is of poor quality, adversely impacts investor confidence regarding a firm’s financial health, making it an economically important problem. Viewing a firm’s enterprise systems (ES) portfolio as made up of operational modules (customer relationship management and supply chain management) and functional modules (accounting and finance, and human resource management), we examine how firms configure their ES portfolio by changing the balance in the implementation of two types of modules in response to information risk. We find internal controls to be an important contingency in determining how firms change their ES portfolio balance when information risk increases. When there is no weakness in internal controls, firms change their ES portfolio balance more toward operational modules. However, when internal controls are afflicted with material weakness, firms change their ES portfolio balance more toward functional modules instead. When evaluating the link between ES portfolio configuration and information processing requirements in the context of financial processes, managers should assess both information risk and internal controls to decide how to change the balance between operational and functional modules that are implemented.

Impact of information risk and cost of equity: moderating role of investor attention

PurposeThe purpose of this study is to finds out how investor attention plays the moderating role between the relation of information risk and COE by considering the effect of three different types of information risk, that is private information, lack of quality and transparent information.Design/methodology/approachFor that purpose, data is collected from all the non-financial firms listed on PSX from 2007 to 2019. Two-step system GMM dynamic panel estimators are applied to test the dynamic nature of the proposed model.FindingsThe findings of the study show that investor attention reduces these three information risks by increasing the stock liquidity and decreasing the crash risk which ultimately decreases the COE. Also, this study examined the role of investor attention between the relations of information risk and corporate investment in the dynamic panel model, where the two-step system generalized method of the moment has been applied. The finding of the study shows that investor attention stimulates the innovative investment by increasing investor confidence and decreasing the agency conflict.Originality/valueThis study contributes to the literature by providing the novel findings by considering the role of investor attention in reducing the effect of three different types of information risk, that is private information, less quality as well as less transparency of information and further their effect on the cost of equity.

The impact of mandatory IFRS adoption on banks’ share prices: Evidence from the OECD countries

Subject. The adoption of International Financial Reporting Standards (IFRS) was a significant milestone to unify financial reporting standards. However, there are many conflicting views regarding the impact of IFRS implementation on the investment attractiveness of banks. This put us on analyzing the sensitivity of changes in the equity securities market in terms of information risk and adoption of IFRS. Objectives. The article aims to explore the relationship between the harmonization of accounting and international standards and the banks’ share prices in eleven OECD countries by analyzing panel data within 1997–2015. Methods. For the study, we used a set of tests, such as the Ordinary Least Squares regression, Hausman specification test, Variance Inflation Factor, Unit Root test, Panel-Corrected Standard Error regression, and the Breusch-Pagan test. Results. The obtained results indicate a positive impact of the IFRS adoption on the change in prices for bank shares. In particular, changes in stock prices averaged 64 units. This is explained by the benefits of applying IFRS, which include positive investor expectations, improved financial reporting quality and comparability across countries, and reduced information risk. Conclusions. The hypothesis of bank share price increase after the IFRS adoption is true for the OECD countries.

Differences in Sources of Information, Risk Perception, and Cognitive Appraisals between People with Various Latent Classes of Motivation to Get Vaccinated against COVID-19 and Previous Seasonal Influenza Vaccination: Facebook Survey Study with Latent Profile Analysis in Taiwan

The present study aimed (1) to identify distinct latent classes of motivation to get vaccinated against coronavirus disease 2019 (COVID-19) and previous seasonal influenza vaccination among people in Taiwan and (2) to examine the roles of sources of information, risk perception, and cognitive appraisals of vaccination against COVID-19 in these classes. We recruited 1047 participants through a Facebook advertisement. The participants’ motivation to get vaccinated against COVID-19, previous seasonal influenza vaccination, sources of information about COVID-19 vaccination, risk perception of COVID-19, and cognitive appraisals of vaccination against COVID-19 were determined. We examined the participants’ motivation for COVID-19 vaccination and previous seasonal influenza vaccination through latent profile analysis. Four latent classes of motivation were identified: participants with high motivation for COVID-19 vaccination and high seasonal influenza vaccination, those with high motivation for COVID-19 vaccination but low seasonal influenza vaccination, those with low motivation for COVID-19 vaccination but high seasonal influenza vaccination, and those with low motivation for COVID-19 vaccination and low seasonal influenza vaccination. Compared with participants in the latent class of high motivation for COVID-19 vaccination and high seasonal influenza vaccination, those in the other three latent classes had lower levels of positive appraisals of COVID-19 vaccination; participants in the latent class of low motivation for COVID-19 vaccination and low seasonal influenza vaccination had lower risk perception of COVID-19 and were also less likely to obtain information about COVID-19 vaccination from the internet, friends, and family members. The various motivations and behaviors for vaccination, sources of information, risk perception, and cognitive appraisals of vaccination against COVID-19 should be considered in intervention programs aiming to increase people’s motivation to get vaccinated against COVID-19.

Information risk, cost of equity and stock returns: evidence from Iranian firms

Purpose A long history of literature has considered the role of information risk in determining the cost of equity. The question that has remained unanswered is whether information risk plays any systematic role in determining the cost of equity. One of the fundamental decisions that every business needs to make is to assess where to invest its funds and to re-evaluate, at regular intervals, the quality of its existing investments. The cost of capital is the most important yardstick to evaluate such decisions. Greater information is associated with the lower cost of capital via mitigating transaction costs and/or reducing estimation risk and stock returns. This study aims to investigate the impact of information risk on the cost of equity and corporate stock returns. Design/methodology/approach The research sample consists of 960 firm-year observations for companies listed on the Tehran Stock Exchange from 2009 to 2018. The research hypotheses were tested using multivariate regression models based on panel data. Findings The results reveal that information risk has a significant positive impact on the firm’s cost of equity. However, the impact of information risk on stock returns is not statistically significant. Originality/value To the best of the knowledge, the current study is almost the first of its kind in the Iranian literature which investigates the subject matter; therefore, the findings of the study not only extend the extant theoretical literature concerning the information risk in developing countries including the emerging capital market of Iran but also help investors, capital market regulators and accounting standard setters to make timely decisions.

Organizational and Functional Structure of the System of Information and Analytical Management of Construction Waste Streams

Purpose. The main purpose of the work is to define and substantiate the principles, functional requirements and objectives of the implementation of information and analytical support for the management of waste streams of construction and wracking as secondary resources; development of the organizational and functional structure of the information-analytical management system, which would satisfy the conditions for the introduction of a logistical approach within the framework of integrated management of construction waste streams and became the basis for creating a single information platform. Methodology. As a methodological basis for the research of the process of managing the secondary resources streams and reversible streams in the construction industry, a logistic approach is used. It involves the analysis of factors influencing the system and study of its dynamic behavior as a complex adaptive system. The system approach in the development of information-analytical management systems involves solving the following tasks: development of a functional model of the management system of construction and wracking waste streams; construction of interaction matrices of automated processes and data routing processes; modeling the logical architecture of the data warehouses; development of a software and hardware set. Findings. The main tasks of developing information support for the logistics management system of construction and wracking waste streams are substantiated. The integration into the system of the following functional blocks is proposed: database formation; block for estimating the total economic costs of the process; environmental damage assessment blocks; information risk assessment; evaluation of alternative methods of waste stream management; optimal route formation block; visualization block. Based on the generalization of requirements and possibilities of the functionality analyzed information-analytical systems and requirements which would provide efficiency of construction waste streams management, the organizational-functional structure of the system of information-analytical management is proposed. Originality. The work gives reasons for the inclusion in the list of functional blocks of the organizational and functional structure of the information-analytical management system, which should be the basis for creating an information platform for the management of construction and wracking waste streams, environmental and information risk assessment. Practical value. Implementation within the information-analytical management of environmental damage assessment (as part of the efficiency assessment of the construction waste streams) and information risk assessment (as a tool of logistical approach) will provide the ability to predict key system indicators, make optimal decisions aimed at maximum inclusion of construction waste streams in the system as a potential secondary raw material, a sufficient level of economic and environmental efficiency with the optimal level of logistics costs.

Information risk management in the organization

The article discusses the concept and classification of information risks, explains the possibilities of risk management in various organizations, and suggests the main measures of risk management in commercial organizations. Special attention is paid to the issues of information risk management in organizations.