What drives firms' commitment to fighting corruption? Evidence from the UK

The recent leak of the FinCEN files has highlighted the widespread presence of corruption in developing and developed economies, including the UK. Accordingly, this study aims to investigate the factors that drive companies to implement measures for preventing corruption in developed countries using FTSE 350 nonfinancial firms. Specifically, the research examines the influence of corporate social responsibility (CSR) commitments, board structure, and shareholding structure on adopting strategies, policies, and procedures aimed at countering corruption. Drawing upon agency, stakeholder, and legitimacy theories, our empirical evidence supports that CSR commitments and board independence positively influence firms' engagement in anticorruption measures. Conversely, institutional and managerial shareholdings are found to have a negative association with firms' efforts to combat corruption. In addition, the study shows that the effect of board characteristics became more pronounced following the enactment of the UK Bribery Act 2010, indicating risk-averse behavior. Various models, including cross-sectional and two-stage least squares (2SLS), are employed to analyze the data. Our findings have significant implications for understanding the complex relationship between CSR, corporate governance, and the ethical infrastructure of organizations. Ultimately, our results provide valuable insights for policymakers, companies, and other stakeholders in developing effective strategies, policies, and procedures to combat corruption activities.     

Consequences of local social norms: A review of the literature in accounting,finance, and corporate governance

We synthesise the empirical archival research on the consequences of local social norms on accounting, finance, and corporate governance outcomes in an international setting. The literature reviewed is premised on the theory that corporations do not make decisions, but managers do, and managers are likely to be influenced by the socioeconomic environment of the region in which they operate and/or by the people with whom they interact. To provide a structure to our review, we identify social capital, religiosity, gambling norms, and corruption culture, as four constructs of local social norms and link these with financial reporting and external auditing, financial, investment, and dividend decisions, capital market consequences and finally, corporate governance and corporate social responsibility behaviour of firms. We highlight some limitations of the existing research and offer some suggestions for future research.     

Are corruption and corporate tax avoidance in the United States related?

Review of Accounting Studies - We examine whether state-level corruption and corporate tax avoidance in the United States (U.S) are related. Using a sample of 36,078 U.S. firm-year...     

Neural networks for estimating Macro Asset Pricing model in football clubs

The recent crisis caused by COVID-19 directly affected consumption habits and the stability sof financial markets. In particular, the football industry has been hit hard by this pandemic and therefore has more volatile stock prices. Given this new scenario, further research is needed to accurately estimate the value of the shares of football clubs. In this paper, we estimate an asset pricing model in football clubs with different compositions of risk nature using non-linear techniques of artificial neural networks. Usually, asset pricing models have been estimated with linear methods such as ordinary least squares. Our results show a precision higher than 90% for all the estimated models, which far exceeds those shown by linear methods in the previous literature. We find that the residual represents about 40% of the variance of the price-dividend ratio. Long-term risks follow in importance, and above all, the habit component and its behaviour in the face of changes. The importance of the residual component exists due to a low correlation between the asset price and consumer behaviour, but to a much lesser extent than that shown in previous studies. The estimation carried out with artificial neural networks, both the Deep Learning methods and especially the Quantum Neural Network, opens up new possibilities to estimate more efficiently the pricing of financial assets in the football industry.     

Earnings quality and investment efficiency: the role of the institutional settings

Review of Quantitative Finance and Accounting - The current study examines the association between earnings quality (EQ) and investment efficiency (IE) using the conditional effect of legal origin....     

Exothermic reactions of DCPD and protection against them

Dicyclopentadiene (DCPD), which is usually considered inert, undergoes exothermic reactions at high temperatures. These reactions initially lower the pressure but ultimately can generate very high pressures. Adiabatic and nonadiabatic laboratory data are presented and characterized into a kinetic model. Strategies are described for safeguarding against potentially high temperatures in DCPD containing vessels and for relieving overpressures should runaway reactions occur.     

Does mutual fund ownership reduce stock price clustering? Evidence from active and index funds

Review of Quantitative Finance and Accounting - The literature is rich with examples of price clustering in financial markets. This study focuses on the relation between mutual fund ownership (both...     

Targets' Accounting Conservatism and the Gains from Acquisition*

We present evidence on the effects of target firms' accounting conservatism in a merger and acquisition transaction. Conservatism is distinct from other accounting or accrual quality constructs examined in prior work. Its unique features can lead to potential benefits for both the targets and the acquirers. The use of conservatism by targets reduces acquirers' risks of acquiring underperforming assets or overpaying for well-performing assets. In addition, targets' conservatism results in greater production of verifiable information that can help the acquirers better estimate and realize synergies of the combined firm. Consistent with these arguments, we find that firms with greater accounting conservatism are more likely to receive a bid. We also find that targets' conservatism increases the deal premium and the announcement returns of both the targets and the acquirers, respectively. Overall, these results indicate that conservatism provides benefits to both sellers and buyers of equity in an acquisition transaction.     

Fostering creative selling through ethics. An emotion-based approach

Research on salesperson creativity remains as one of the most under-researched topics in the sales literature despite the evidence that encouraging creativity in the sales domain is a source of competitive advantage. This paper aims to fill this research gap by exploring the influence of perceived ethical climate on salesperson creative performance, paying special attention to the role that emotions play in this process. Data provided by 176 supervisor–salesperson dyads confirm that the trust/responsibility dimension of an ethical climate is positively related to salesperson creative selling by increasing salespeople's organizational pride. Similarly, the perception of unethical selling practices negatively affects salesperson organizational pride, reducing the expression of creative behaviors. Moreover, the negative effect of unethical selling practices on creative performance is stronger (more negative) when salespeople's identification with an organization increases. Managerial implications and future research directions are also addressed.     

Intermittent exporting: unusual business or business as usual?

Review of World Economics - We construct an empirically supported definition of incidental and perennial exporting and investigate to what extent incidental exporting is a steady-state of firms, to...