EXPRESS: The Bulletproof Glass Effect: Unintended Consequences of Privacy Notices

Drawing from a content analysis of publicly-traded companies’ privacy notices, a survey of managers, a field study, and five online experiments, this research investigates how consumers respond to privacy notices. A privacy notice, by placing legally-enforceable limits on a firm’s data practices, communicating safeguards, and signaling transparency, might be expected to promote confidence that personal data will not be misused. Indeed, most managers expected a privacy notice to make customers feel more secure (Study 1). Yet, consistent with the analogy that bulletproof glass can increase feelings of vulnerability despite the protection offered, formal privacy notices undermined consumer trust and decreased purchase interest even when they emphasized objective protection (Studies 2, 3, and 5) or omitted any mention of potentially concerning data practices (Study 6). These unintended consequences did not occur, however, when consumers had an a priori reason to be distrustful (Study 4) or when benevolence cues were added to privacy notices (Studies 5-6). Finally, Study 7 showed that both the presence and conspicuous absence of privacy information are sufficient to trigger decreased purchase intent. Together, these results provide actionable guidance to managers on how to effectively convey privacy information (without hurting purchase interest).

Sustainable Corporate Entrepreneurship of Publicly Traded Commercial Banks: A Developing Country Perspective

This paper aims to create empirical support about Creating Shared Value (CSV) notion developed by Porter, M.E. and Kramer, M.R. (2011). To accomplish the aim, the study has developed a set of decision rules to recognize banking products or services that can be characterized as Sustainable Corporate Entrepreneurship (SCE). This has been done by reviewing the literature of SCE, CSR, and CSV in the domain. Hereafter, it has made content analysis of annual reports of randomly selected banking corporations in light of the decision rules developed earlier. The purpose is to explain if CSV notion can be used as credible evidence of current SCE practices in the context of developing country like Bangladesh. To attain this purpose, the study has randomly selected 50 percent of the commercial banks out of 30 DSE listed commercial banks in Bangladesh. The study has found that banking corporations are engaged in SCE, though their performances on that are increasing in absolute terms (over the year), not in relative terms (over general investment). Moreover, financial performance remains constant for banks that are engaged exceptionally in SCE. Hence, the findings somewhat support the CSV notion to explain the current practices of SCE. Keywords: Entrepreneurship, Sustainable entrepreneurship, Sustainable corporate entrepreneurship, Corporate social responsibility, Creating shared value, Shared value

The Public Effect of Private Sustainability Reporting: Evidence from Incident-Based Engagement Strategy

This study examines whether private information exchange between institutional investors and public companies in engagement dialogs on sustainability issues improves the publicly disclosed measurements of the target company’s financial and non-financial performance and transparency. It uses a unique dataset containing 326 private reports related to environmental, social, and anti-corruption recommendations to address material incidents among publicly traded MSCI World Index portfolio companies of Nordic institutional investors. The results indicate that target companies appear to have similar values with matched companies on sustainability performance and transparency ratings in the 3 years following the initiation of private reporting. Unexpected sustainability incidents are subsequently reflected in the next year’s fall in the market value of target companies relative to MSCI World Index. This paper provides empirical evidence for the legitimacy-based provision of private sustainability information used in a larger disclosure system of public companies.

Relationship Between Free Cash Flows and Corporate Governance Levels in the Light of Agency Theory

This research analyzes the relationship between free cash flows (FCFs) and the different levels of Corporate Governance present in the Brazilian stock market. To this end, the sample was composed of 212 Brazilian publicly traded companies listed on Brasil, Bolsa, Balcão [B]³, in the period from 2010 to 2018. The methodology consisted of estimating a regression for panel data, using the random effects model, estimating by generalized least square (GLS) and assuming adjustments for autocorrelation and robust standard errors for heteroscedasticity. The results found, for the sample studied, suggest that Corporate Governance levels are positively related to the FCFs. In synergy, when compared to the Traditional level of [B]³, companies listed on the Novo Mercado and Level 2 levels tend to present higher FCF values. In addition, the larger the size of the companies and the higher their return on equity, the higher their FCFs tend to be, just as companies in stages of maturity tend to present lower FCF values. The relevance of this research is based on analyzing, in a stock market subject to imperfections, factors that may affect decisions about the level of cash maintenance of companies, more specifically by evaluating how Corporate Governance mechanisms relate to the theory of FCFs, in a context of potential conflict of interest.

THE DAVIDS AND THE GOLIATHS: INVESTMENT DYNAMICS AND PERFORMANCE DIFFERENTIALS OF SMALL FIRMS AND FAMILY-CONTROLLED LARGE FIRMS IN FOUR SECTORS OF THE INDIAN MARKET

This study focuses on investment structures and performances of family-controlled and non-affiliated publicly traded firms on the Indian market. While many influential, family-controlled firms dominate a large part of the Indian industry today, this study finds that a considerable fraction of the non-affiliated firms are able to maintain stable financial performance by forging strategic ties with other non-affiliated firms in transactional supply-chains modes. This study contributes to the understanding of the question concerning how investment structures of firms might be governed through interfirm ties of coordinated and cooperative investments. The results have important implications for the markets of emerging economies in the Asia-Pacific and the Southeast Asian regions.

Equity liquidity and tax aggressiveness in the Brazilian capital market

This study has investigated the potential relationship between equity liquidity and tax aggressiveness in the Brazilian capital market. Using a database of publicly traded Brazilian companies from 2010 to 2019 – not including the year 2020 due to the atypical effects of the COVID-19 pandemic – panel data models have been developed, the goal synthesis of which consisted in evaluating the longitudinal effects of equity liquidity, independent variable, on the book tax difference, dependent variable, and proxy of tax aggressiveness. Results have shown a statistically significant and economically positive relationship between the tax aggressiveness proxy and stockholding liquidity. Results suggests that companies with less volatile stocks, with larger relative stocks in B3 [(in full, B3 – Brasil Bolsa Balcão S.A.), formerly BMFBOVESPA, a stock exchange located at São Paulo, Brazil] businesses and lower trading costs tend to adopt a more aggressive tax planning. This article helps to demonstrate that in an emerging capital market such as the Brazilian one investor tend to belittle occasional increases in profits sparingly through more aggressive tax practices, however, which may result in future losses. Furthermore, this study helps to demonstrate the importance of disclosures about tax planning so that market agents can properly price financial assets.

IMPACTO DOS INVESTIMENTOS EM RECURSOS INTANGÍVEIS NO DESEMPENHO ORGANIZACIONAL

In this research, we explored the relationship between investments in intangible resources and the performance of publicly traded banks. We applied a quantitative approach, based on hand-collected public data from banks’ financial statements of investments on intangible resources, combined with a history of trading and accounting values, covering the period from 2008 to 2015. The results suggest that investments in intangible resources provide superior performance. The banking sector is not particularly sensitive to investments on Human Intangible Resources (HR) and Relation Intangible Resources (RR), but respond in an economically significant way to investments on Structural or Organizational Intangible Resources (SR).

Corporate Financial Distress: The Impact of Profitability, Liquidity, Asset Productivity, Activity and Solvency

This study aims to determine the importance of liquidity, profitability, asset productivity, activity, and solvency in cases of corporate financial distress. One hundred and five firms in the extractive industry in the United States were analyzed. Firms must be publicly traded and have filed form 10-K reports with the securities and exchange commission of the United States to be considered for the study’s population. The measure of corporate financial distress is the Altman Z-score. By using the Altman discriminant function, this study identifies the precipitants of corporate financial distress. This is especially important because widespread corporate financial distress could cause global financial system volatility. The indicators were measured in the last two years before the distressed firms declared bankruptcy. The results indicate that liquidity, profitability, asset productivity and solvency have an impact on the financial health of firms and therefore, on financial distress. The study further determines that activity ratio does not have a statistically significant relationship with financial distress.

Impact of Platelet Transfusion on Pulmonary Function of Hematology Oncology Patients: The Piper Study

Background. Platelet transfusion is a critical therapy for hematology-oncology patients at risk of transfusion-transmitted infection (TTI) and pulmonary injury. Amotosalen-UVA pathogen reduction (PR) treatment of apheresis platelet components (PC) in plasma or additive solution (INTERCEPT Blood System for Platelets, Cerus, Concord, CA) is FDA approved to reduce risk of TTI and transfusion associated graft vs. host disease (TA-GVHD). PRPC meet the FDA bacteria risk reduction guidance, and approximately 50% of U.S. PC are PRPC. Amotosalen-UVA PR replaces bacteria screening, gamma irradiation, and CMV serology. PR is performed within 24 hours of collection enabling early release of PRPC with 5-day storage. We tested the hypothesis that PRPC were not inferior to conventional PC(CPC) for the incidence of pulmonary injury. Methods. An open-label sequential cohort study in platelet transfusion dependent hematology-oncology patients was conducted under routine practice conditions in 15 clinical centers. Each site enrolled a CPC cohort followed by a PRPC cohort using 4 primary therapy strata matched ± 10%: chemotherapy without hematopoietic cell transplant (HCT), HCT with myeloablation, HCT with non-myeloablative conditioning, and HCT with reduced intensity conditioning (RIC). Patients were supported with the assigned PC type for up to 21 days with 7 days of surveillance after the last PC exposure. Patients participated in only one cohort. The primary endpoint was treatment emergent assisted mechanical ventilation (TEAMV) by intubation or tight mask with positive end expiration pressure (5cm H 2O) after initiation of study PC. All endpoint patients were adjudicated by a blinded pulmonary expert panel (PEP) for diagnosis of acute respiratory distress syndrome (ARDS) by the Berlin Criteria. Secondary endpoints included: time to initiation of TEAMV, clinically significant pulmonary adverse events (CSPAE, CTCAE ≥ Grade 2), transfusion reactions, and mortality. The incidence of TEAMV by non-inferiority (margin = 2.3%), and secondary endpoints were analyzed by modified intention to treat (mITT) and per protocol (PP). Sensitivity analyses with propensity score matching for key variables were conducted for the primary endpoint. The associations between PC and categorical variables were tested by stratified Cochran-Mantel-Haenszel and continuous variables by ANOVA for two-sided significance p = 0.05. results. A total of 2291 pediatric and adult patients (1068 PRPC and 1223 CPC) were enrolled in the respective cohorts with transfusion of 5,277 PRPC and 5,491 CPC. PC assignment compliance and study completion were > 94%. For the mITT data set, the cumulative incidence of TEAMV was lower for the PRPC cohort (log rank p = 0.039) than the CPC cohort (2.9% versus 4.6%, HR = 0.633: 95% CI 0.408-0.982). PRPC by mITT were non-inferior to CPC for the incidence of TEAMV due to all indications, and for TEAMV with pulmonary dysfunction (PD) by PEP (Table). PP analyses were consistent with mITT. Relative risk (RR) of TEAMV showed significantly (p<0.05) decreased RR of PRPC respectively for baseline covariates: age < 65 (0.53), male (0.54), non-white (0.32), chemotherapy (0.40), prior pulmonary disease (0.55), and prior cardiac disease (0.58). Least squares (LS) mean days to initiation of TEAMV for patients with PD were longer for PRPC recipients. PEP adjudicated incidence of ARDS was not significantly different between cohorts (Table). Total and serious CSPAE were not different between the cohorts. There were no significant differences between cohorts in Respiratory, Thoracic, and Mediastinal Disorders, the most frequent system organ class event. Mortality was not different between cohorts. Multivariate analysis (mITT) for the probability of CSPAE or transfusion associated cardiac overload (TACO) showed PC type had no effect. The odds ratio (OR) of CSPAE or TACO during PC support was significantly increased (p< 0.05) in both cohorts for history of cardiac disease (1.35), history of pulmonary disease (2.57), diagnosis of Myelodysplasia (1.88), and diagnosis of Myelodysplasia/Myeloproliferative disease (2.27). There was a significant treatment interaction (p= 0.043) between PC type and acute myelogenous leukemia (AML), increased OR = 1.49 for CPC versus PRPC. Conclusions. PRPC did not potentiate pulmonary injury during PC support; and their use may decrease TEAMV risk with benefit of reduced TTI risk. Figure 1 Figure 1. Disclosures Wheeler: Novo Nordisk A/S: Consultancy; Bayer: Consultancy; BioMarin: Consultancy; HEMA Biologics: Consultancy; Spark: Consultancy; Takeda: Consultancy; UniQure: Consultancy. Nooka: Janssen Oncology: Consultancy, Research Funding; Takeda: Consultancy, Research Funding; Sanofi: Consultancy; Oncopeptides: Consultancy; Amgen: Consultancy, Research Funding; Bristol-Myers Squibb: Consultancy; Adaptive technologies: Consultancy; GlaxoSmithKline: Consultancy, Other: Travel expenses; Karyopharm Therapeutics: Consultancy. Uhl: UpToDate: Patents & Royalties; Abbott: Consultancy, Speakers Bureau; Grifols: Consultancy, Speakers Bureau. Spinella: Secure Transfusion Services: Current Employment, Current holder of individual stocks in a privately-held company, Current holder of stock options in a privately-held company; Cerus Corporation: Consultancy, Research Funding. Liu: Cerus Corporation: Current Employment, Current equity holder in publicly-traded company. Benjamin: Cerus Corporation: Current Employment, Current equity holder in publicly-traded company. Corash: Cerus Corporation: Current Employment, Current equity holder in publicly-traded company.