Financial Reporting Quality in Private Equity Backed Companies: The Impact of Ownership Concentration

We empirically show on a sample of 270 unquoted, private equity backed companies that the shareholder structure of private companies impacts the quality of their publicly available accounting information. More precisely, companies in which private equity (PE) investors have a high equity stake produce lower quality accounting information than companies in which PE investors have a low equity stake, after controlling for factors like company size and age. We explain our findings by arguing that PE investors with low equity stakes have a higher need for high quality accounting information whereas PE investors with high equity stakes have other means to closely monitor their portfolio companies. This paper has benefited form discussions with workshop participants at the Max Planck Institute. We specifically want to thank Lorraine Uhlaner and Mike Wright (guest editors), two anonymous referees as well as ignace De Beelde, Wouter De Maeseneire, Marc Deloof, Miguel Meuleman and Lloyd Steier for helpful suggestions. Part of this research was completed when Christof Beuselinck was an FWO Scholar at Ghent University. Financial support from the Fonds of Wetenschappelijk Onderzoek (Grant G.0012.02) is kindly appreciated. The usual disclaimer applies.     

After Industrial Society: Service Society as Clean Society? Environmental Consequences of Increasing Service Interaction

Whereas industrial society is known to be to a great extent responsible for the degradation of the environment, service society is assumed to be rather ‘clean’. There has, in fact, been a substantial reduction in material metabolism in industrial production in the developed countries. The increasing interaction intensity, however; which is characteristic for a service society, results in massive transport volumes and thus in other negative environmental impacts which to a large degree offset the advances in industrial production.     

Does stable ownership create value? Evidence from the global financial crisis

We investigate the value of stable ownership for a sample of European firms using the global financial crisis as an exogenous shock and pre-and post-crisis years as benchmark periods. Consistent with the argument that stable ownership allows managers to focus on the creation of long-term value, we find that stable ownership resulted in higher stock returns and a higher market-to-book ratio during the crisis. This positive effect of stable ownership was not reversed after the crisis. Stable institutional blockholdings were more valuable in countries with weaker investor protection. However, the positive effect does not apply to firms in which a family is the largest blockholder. Finally, we also find that ownership stability was associated with a higher level of investments, illustrating that stable ownership affects real corporate decisions.

     

The Moderating Role of Context in Determining Unethical Managerial Behavior: A Case Survey

Prior negative performance and wrongdoing are difficult for applicants to overcome during their job search. The result has often been that they resort to lies and deception in order to obtain employment. The present study examines “stealing thunder” as a trust repair tactic that might be useful for overcoming prior indiscretions when it is used by applicants during the selection interview process. Stealing thunder refers to the self-disclosure of negative information that preempts allegations of wrongdoing by third parties such as hiring managers. Data were collected (n = 184) using a scenario-based 2 (accept responsibility; blame others) X 2 (low, high likelihood of discovery) experimental design in which perceptions of integrity, trust, and employability were measured. Results indicated that a stealing thunder strategy that involved accepting responsibility under a low likelihood of transgression discovery led to higher ratings of trust than blaming others when discovery of wrongdoing was imminent. The stealing thunder strategy was somewhat more effective than when a traditional, post-allegation apology was used. But stealing thunder did not lead to higher levels of an overall willingness to hire the applicant.     

The role of emotions in shaping purchase intentions for innovations using emerging technologies: A scenario‐based investigation in the context of nanotechnology

Although emotions may not play a major role as antecedents of consumers′ innovation acceptance, this study proposes that attitude formation works differently in the context of emerging technologies because of their high levels of uncertainty. To investigate the role of emotions in shaping intentions to adopt innovations using emerging technologies, the conceptual model developed in this study integrates cognitive (risks and benefits) and emotional (optimism and worry) elements. A scenario‐based study employing 731 participants tests the model across three nanotechnology‐based product innovations that differ in terms of product category risk. The results of a mediated moderation model show that emotions do play a key mediating role in explaining purchase intentions. Although the study supports the conceptual model regardless of the level of product‐related risk, it finds risk‐related differences in the strength and level of the mediational links. By unveiling the role of emotions in emerging technology contexts, this study has important implications not only for innovation management but also for regulating institutions and public policymakers.     

Energy Informatics

Due to the increasing importance of producing and consuming energy more sustainably, Energy Informatics (EI) has evolved into a thriving research area within the CS/IS community. The article attempts to characterize this young and dynamic field of research by describing current EI research topics and methods and provides an outlook of how the field might evolve in the future. It is shown that two general research questions have received the most attention so far and are likely to dominate the EI research agenda in the coming years: How to leverage information and communication technology (ICT) to (1) improve energy efficiency, and (2) to integrate decentralized renewable energy sources into the power grid. Selected EI streams are reviewed, highlighting how the respective research questions are broken down into specific research projects and how EI researchers have made contributions based on their individual academic background.