Can market frictions really explain the price impact asymmetry of block trades? Evidence from the Saudi Stock Market

We empirically examine the price impact of block trades, in the Saudi Stock Market over the time period of 2005–2008. Using a unique dataset of intraday data consisting of 2.3 million block buys and 1.9 million block sales, we find an asymmetry in the price impact of block purchases and sales. The asymmetry persists even when we account for the bid–ask bias in block trades, which is contrary to the previous literature. Overall, our findings suggest that in an emerging market where institutional trading is relatively scarce, market microstructure cannot explain the asymmetry in the price impact of large trades.     

Do You Prefer Having More or More than Others in the Workplace? A Quasi‐experimental Survey in Algeria

We examine the relevance of relative standings in Algeria (North Africa). We focus on the workplace, by considering domains generally important in this specific context: income, extra wage, office size, free days, worked hours, days being ill, offered company car, traffic jam when going to work, and being praised and berated by supervisor. Respondents prefer equality situations (i.e., where everyone has the same endowment) rather than positional and absolute ones (i.e., where they have the highest relative and absolute levels, respectively). An exception is found regarding praise by supervisor where the proportions of individuals choosing positional states are the highest. Copyright © 2016 John Wiley & Sons, Ltd.     

Analysing the critical factors influencing trust in e-government adoption from citizens’ perspective: A systematic review and a conceptual framework

Although the success adoption of e-government contingent upon citizens' trust and their willingness to use it, little consideration has been paid to explore the adoption of e-government from citizens' trust perspective. This paper provides a critical and systematic review of the current literature on citizens’ trust in e-government, with a particular focus on the most critical factors influencing citizens’ trust in respect of the adoption of e-government. The extant literature was identified through six electronic databases, from 2000 to 2014. Academic articles were reviewed if they contained a relevant discussion of the antecedents or factors influencing citizens’ trust in e-government adoption. The findings of this review reveal that several studies have been conducted in the area of trust in e-government (particularly trust in government and trust in the internet) with limited consideration paid to citizen’s aspects of trust (such as personality, culture, gender, experience, education level, beliefs and value of systems). Based on the findings of the critical review, a conceptual framework is proposed by developing further the updated DeLone and McLean IS Success Model, which presents the antecedents of trust in e-government adoption.     

Managerial Behavior and the Link between Stock Mispricing and Corporate Investments: Evidence from Market‐to‐Book Ratio Decomposition

We examine the impact of mispricing on corporate investments and its components: capital expenditures, research and development, acquisitions, and asset sales. By decomposing the market‐to‐book ratio into mispricing and growth components, we show that corporate investments are linked to mispricing through market‐timing and catering, after controlling for growth and financial slack. This investment‐mispricing link is more pronounced in financially constrained firms and in firms with short‐horizon shareholders. Overall, our study indicates that the sensitivity of investments to mispricing is a function of the nature of mispricing, the type of investment, and the firm's characteristics.     

Investor protection,taxation, and dividends

We test the impact of taxes and governance systems on dividend payouts across countries. We show that, unlike previous studies, firms in strong investor protection countries pay lower cash dividends than in weak protection countries when the classical tax system is implemented, but they repurchase more shares to maximise their shareholders' after-tax returns. In weak protection countries, cash dividends and repurchases are low and less responsive to taxes. Our results suggest that when investors are protected, they weigh the tax cost of dividends against the benefit of mitigating the agency cost, but, when they are not, they accept whatever dividends they can extract, even when this entails high tax costs.