Financial materiality in the informativeness of sustainability reporting

This study examines whether financial materiality in environmental, social, and governance (ESG) disclosure benefits the stock market by increasing the amount of accessible and relevant firm-specific information. Based on the value relevance of information and the principle of financial materiality, we demonstrate that disclosing material ESG information increases stock price informativeness. We conduct an automated content analysis of 150,000 electronic documents filed by firms listed on the S&P/TSX Composite Index from 1999 to the end of 2014. Our findings show that ESG disclosure is indeed value relevant for investors and that financial materiality in ESG disclosure leads to more informative stock prices. In addition, the effect of ESG disclosure on stock price informativeness differs across the ESG components, being more sensitive to the social component. This study contributes to the literature on sustainability reporting, and in particular to the ongoing discussion about whether the financial materiality of ESG issues matters. This study also deepens the understanding of agency theory predictions about the economic effects of ESG disclosure.     

Does telic/paratelic user mode matter on the effectiveness of interactive internet advertising? A reversal theory perspective

Drawing on reversal theory (Apter, 2007), the current research proposes that internet users' metamotivational state (telic vs. paratelic) determines advertising interactivity's effectiveness. An online field experiment involving 141 Facebook and Twitter users tests this proposition. Research findings support telic state consumers form more positive attitudes toward a low-level interactive ad, whereas paratelic state consumers form more positive attitudes toward a high-level interactive ad. Further, this research shows that an arousal seeking tendency mediates the metamotivational state's impact on ad attitude.     

Understanding repeat playing behavior in casual games using a Bayesian data augmentation approach

With an estimated market size of nearly $18 billion in 2016, casual games (games played over social networks or mobile devices) have become increasingly popular. Because most casual games are free to install, understanding repeat playing behavior is important for game developers as it directly drives advertising revenue. Game developers are keenly interested in benchmarking their game versus the market average, and understanding how genre and various game mechanics drive repeat playing behavior. Such cross-sectional analysis, however, is difficult to conduct because individual-level data on competitors’ games are not publicly available, and that the casual gaming industry is highly fragmented with each firm making only a handful of games.I develop a Bayesian approach, based on a parsimonious Hidden Markov Model at the individual level in conjunction with data augmentation, to study repeat playing behavior using only publicly available data. After applying the proposed approach to a sample of 379 casual games, I find that the average daily attrition rate across game is around 36.5%, with an average “play” rate of 47.9%, resulting in an average ARPU (average revenue per user) across games of around 20.5 cents. Certain genres are linked to higher attrition rates and play rates. In addition, giving out a “daily bonus” or limiting the amount of time that gamers can play each day are associated with a 17.7% and 16.4% higher ARPU, respectively.     

Obesity,Mortality, and the Obesity Paradox

The percentage of the population who are obese has grown dramatically on a worldwide basis over the last several decades, although the growth in the prevalence of obesity has slowed recently at a high level in the United States. Although there have been numerous studies of the effect of this trend on mortality, the findings have been inconsistent and controversial, in part because of methodological differences and the complexity of the relationships between obesity and mortality. The objective of this article is to discuss the issues surrounding these relationships and to shed light on the likely effects of the obesity epidemic on mortality. Of particular interest is the so-called obesity-mortality paradox, where mortality experience is lower for overweight and in some cases obese individuals than for those of normal weight. Although more recent studies of the relationship between mortality and obesity seem to indicate those who are obese have experienced a reduced percentage of additional mortality, this may in part be due to the shorter average time those currently obese have been exposed to their condition, the heterogeneity of the normal and obese populations, measurement issues including treatment of smokers and those who are ill, and study design limitations. An increased number of premature deaths may arise as more individuals who are obese are exposed for a longer period to excess adiposity. Although public policy issues surrounding obesity are being addressed with a great deal of activity and publicity, they have and will continue to prove quite challenging for both individuals and society to manage and overcome. The prevalence of obesity has had and will continue to have a significant effect on the mortality experience in most areas of actuarial practice. As a result, it is important for actuaries to enhance their understanding of these effects.     

Do boards know when they hire a CEO that is a good match? Evidence from initial compensation

Are CEO initial compensation packages based on variations in the expected match quality of the hiring firms? Using CEO tenure as a proxy for expected match quality, and a sample of CEO turnovers between 1992 and 2006, we find that CEOs that experience good matches, defined as tenures exceeding four years, have higher initial compensation packages. We also find evidence from exogenous switching regression models that inside CEOs receive a higher good match premium than outside CEOs. To account for economic and regulatory changes across our sample period, we divide our sample into three subsamples: 1992–1997, 1998–2002, and 2003–2006, and repeat our analyses. Even though the positive relation between expected match quality and initial compensation persists across all periods, we find that the good match premium for inside and outside CEOs does not differ in the post-2002 period. We attribute this result to increased board independence and changes in regulation (Sarbanes–Oxley) in the post-2002 sample period.     

La transición de Tailandia en las esferas laboral y sanitaria

La economía de Tailandia ha cambiado rápidamente de la agricultura a la industria manufacturera y el sector de los servicios, pero el ordenamiento del mercado laboral y la representación de los trabajadores son mucho menos consistentes que en los países desarrollados, donde hubo una transición más lenta y gradual hace ya décadas. Los autores estudian el robustecimiento de las políticas y la legislación tailandesas en el ámbito de la seguridad y la salud en el trabajo, que obedece a las normas internacionales y a la nueva Constitución democrática. Por último, identifican los principales retos pendientes, entre ellos el cumplimiento de la ley y una medición mejor de los efectos del trabajo en la salud física y mental.