Private Intermediary Innovation and Market Liquidity: Evidence from the Pink Sheets® Market

In 2007, Pink Sheets LLC assigned each Pink Sheets^® company to a disclosure tier and on its website affixed a colorful graphic to its stock symbol signifying the company's public disclosure level. This unique innovation allows us to investigate the impact of increased salience of disclosure practices on liquidity. Using a difference‐in‐difference design, we find evidence that firms classified into the Current Information category experienced an increase in liquidity while firms classified into the No Information category experienced a decrease in liquidity, both relative to other unclassified over‐the‐counter firms. This suggests that increases in the salience of disclosure practices via assignment to disclosure tiers affect investors’ attention, leading to changes in trading behavior that ultimately translate into liquidity changes. We also provide evidence that some investors anticipated the resulting liquidity changes because stock returns around a key event date leading up to the release of the disclosure tiers are positively associated with subsequent liquidity changes.     

Ownership Structure and Capital Structure: A Study of Vietnamese Listed Firms

This paper examines the relationships between ownership structure and capital structure for non‐financial listed firms in Vietnam during the period 2007–2012. Although different approaches are applied in this research, all results from those models are consistent. The study finds that while foreign ownership has a negative impact on leverage, state ownership has a positive influence. Managerial ownership has a positive relation with debt level, while the effect of large ownership on debt level is not conclusive.     

THE RELATIVE EFFICIENCY OF CHARTER SCHOOLS

ABSTRACT ** :  This analysis compares the technical efficiency of charter school primary and secondary campuses with that of comparable campuses in traditional Texas school districts. Charter schools are hybrids—publicly funded, but not required to meet all the state regulations releant for traditional schools. Student performance is measured using value added on standardized tests in reading and mathematics, and efficiency is measured using the input distance function. The analysis suggests that at least in Texas, charter schools are substantially more efficient than traditional public schools.     

Measuring the impact of positive and negative word of mouth on brand purchase probability

Using two methods, three measures, and data covering a large number of categories, we present findings on the respondent-assessed impact of positive and negative word of mouth (PWOM, NWOM) on brand purchase probability.For familiar brands, we find that:

1. The impact of PWOM is generally greater than NWOM. The pre-WOM probability of purchase tends to be below 0.5, which gives more latitude for PWOM to increase purchase probability than for NWOM to reduce it.

2. The impact of both PWOM and NWOM is strongly related to the pre-WOM probability of purchase, the strength of expression of the WOM, and whether the WOM is about the respondent's preferred brand.

3. PWOM and NWOM appear to be similar forms of advice-giving behavior, except for their opposed effects on choice.

4. Respondents resist NWOM on brands they are very likely to choose, and resist PWOM on brands they are very unlikely to choose.

In the Discussion section, we show how our methods could be used to construct a word-of-mouth metric.     

Short Selling Pressure,Reporting Transparency,and the Use of Real and Accruals Earnings Management to Meet Benchmarks

Abstract

Prior literature finds that short selling is beneficial to the market because it increases liquidity and helps to discipline optimistic market prices. The authors use 2 controlled experiments to examine the potential for an unintended consequence of allowing short selling or easing short selling restrictions. Because prior research identifies short sellers as sophisticated market participants who have the ability to see through accrual earnings management choices, we predict and find that, when reporting is transparent, managers are more likely to use real earnings management relative to accrual earnings management when short selling restrictions are relaxed. This is consistent with the idea that real earnings management activities are more defensible as the result of legitimate operating decisions and are therefore more likely to hold up to scrutiny from short sellers. Overall, the results suggest that regulations that are unrelated to financial reporting can affect how managers respond to the transparency that arises from financial reporting regulations.     

Improving workplace productivity--it isn't just about reducing absence

Employers must get more aggressive in their health and productivity strategies. A comprehensive strategy includes data analytics across health and lost-time programs, absence policies that meet today's needs for both employer and employee, health and wellness programs targeting modifiable health behaviors, and absence program administration that is aligned to operational goals. This article targets key aspects of a comprehensive long-term health and productivity strategic vision. An organization can use these aspects independently to address immediate tactical issues while it develops its broader strategy. The target areas include a view from the perspective of data management, absence program design and management, employee health and wellness, and behavioral health.