An Empirical Analysis of Analysts' Capital Expenditure Forecasts: Evidence from Corporate Investment Efficiency*

We examine whether the information conveyed in a relatively new analyst research output—capital expenditure (capex) forecasts—affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities—positive-growth signals are more effective in reducing underinvestment, while negative-growth signals are more effective in reducing overinvestment. Cross-sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts' capex forecasts convey useful information about firms' growth opportunities to managers and investors, which can facilitate efficient investment.     

Prospect of off-seasonal vegetable production in Bangladesh: a socioeconomic diagnosis

Quality & Quantity - The research work was conducted to estimate comparative profitability, seasonal price variations, and factors affecting the farmers’ decision in the adoption of...     

“A healthy outside starts from the inside”: A matter of sustainable consumption behavior in Italy and Pakistan

The aim of this research is to determine people's motives when purchasing organic food and how these motives are moderated by price sensitivity and ethical concerns in a cross-cultural setting. A highly structured questionnaire was used to collect the data from 673 Italian and 594 Pakistani consumers, using the convenience sampling technique. Based on the etic research approach, the measurement invariance tests were performed, and data were analyzed using structural equation modeling. The results indicate that environmental concerns and health-consciousness are significant predictors of subjective norms and purchase attitudes among Italian consumers. Food safety concern proved the strongest predictor of purchase attitude and perceived behavioral control among Pakistani consumers. The results also confirm the moderating role of ethical concerns and price sensitivity in buying organic food in both cultures. In terms of originality, this study fills significant gaps in the literature, particularly regarding the roles of attitude, behavioral control, and subjective norms in consumer buying motives and purchasing intentions in cross-cultural studies but more importantly, the results validate that consumer concerns across the globe are related to the Sustainability Development Goals and the U.N. 2030 agenda, which aptly provides a blue print for the development and developmental goals and concerns across nations.     

The impact of tourism on deficit in balance of payments of Pakistan: an application of bounds testing approach to cointegration

The current study is intended to analyze the long-run relationship between deficit in balance of payments (BOPs) and tourism for the period of 1976–2015 using the autoregressive distributed lag (ARDL) model. The findings of the paper exposed an indirect relationship between tourism and BOP deficit in the context of Pakistan economy, while deficit balance of trade, real effective exchange rate, and deficit in fiscal balance have a positive and significant association with the deficit in the BOPs in the long run. Based on the findings, it is recommended that policies should be devised that promote the tourism industry of Pakistan as it would be helpful in reducing the deficit in the BOPs.     

Déjà Vu: The Effect of Executives and Directors with Prior Banking Crisis Experience on Bank Outcomes around the Global Financial Crisis

We investigate the effect of executives and directors with prior banking crisis experience on bank outcomes around the global financial crisis (GFC). Executives and directors with previous experience leading banks through a bank crisis may have been uniquely able to understand the risks, recognize the warnings signs early, and thus respond more effectively to the GFC. Controlling for other executive, director, and bank‐level characteristics, we examine whether bank performance, risk taking, and accounting quality in the period immediately before and during the GFC are affected by having executives or directors who previously served as bank executives or directors during the 1980s/1990s banking crisis (80s/90s crisis). Overall, we find that banks led by these crisis‐experienced executives and directors exhibit stronger performance, lower risk taking, and higher accounting quality in the period around the GFC. These effects are strongest among bank leaders for whom the 80s/90s crisis was most salient. Results are robust to propensity‐matched samples and other analyses performed to rule out alternative explanations. Our results suggest these individuals were able to learn from prior crisis experience.     

Impact of patient portal behavioral engagement on subsistence consumers' wellbeing

Subsistence consumers, representing almost half the global population, live on low incomes, possess low levels of literacy, and generally experience poor health. Technology is a tool used to facilitate stronger connections between consumers and support services, including for subsistence consumers. Given the unique characterization of subsistence marketplaces, research needs to examine potential associations between subsistence consumers' individual resource integration and wellbeing via their behavioral engagement with technologies. Research is also warranted that investigates the factors that can moderate this association. A 45-day customized patient portal app was delivered via 26 healthcare service providers, resulting in the surveying of 336 subsistence consumers who used the portal. The results indicate positive associations between subsistence consumers' individual resource integration, patient portal behavioral engagement, and wellbeing. They also indicate that these associations are strengthened by service provider's resource support and subjective norms, and weakened by medical mistrust. Theoretical and managerial implications from this study's findings are discussed.     

THE EFFECT OF THE IMPLEMENTATION OF THE MULTIDIVISIONAL STRUCTURE ON SHAREHOLDER'S WEALTH: THE CONTINGENCY OF DIVERSIFICATION STRATEGY

This paper presents evidence on the price effect of US firms announcing the implementation of a multidivisional management structure (M-form) and whether these effects are contingent on the existing diversification strategy (either unrelated, related, or vertical integration). Differnt patterns of excess returns and systematic risk (beta) changes are associated with different diversification strategies.     

The Relative Relationship Between Systematic Risk and Value Added Variables

The objective of this study is to determine whether value added variables possess incremental information beyond both accrual earnings and cash flows in the context of explaining market risk. The evidence points to the superior explanatory power of value added variables in explaining the variability in market betas. A case can be made for the disclosure of value added reports.     

Multidivisional Structure and Productivity: The Contingency of Diversification Strategy

This study examines the relationship between multidivisional (M-form) structure and productivity. The relationship is hypothesized to vary with diversification strategy. Findings based on longitudinal analysis of productivity data from 62 firms in industries, indicate that following M-form implementation, productive efficiency decreases for vertically integrated firms and increases for related diversified firms. For unrelated diversifiers the moderate increase in productivity is not significant.