Does adoption of ISO 56002-2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm

Reporting is a means of communication for companies to their respective stakeholders. The literature on non-financial reporting has mostly focused on operational, Carbon Discloser Project (CDP), and environmental disclosure to firm performance. This reporting and disclosure approach adopted by companies in their sustainability practices appears to be a normative approach. However, there has been a growing demand by stakeholders to incorporate proactive approach in business activities. To meet that, green innovation practices (GIPs) has been integrated as a new element in environmental reporting, thereby reflecting the proactiveness of companies in their adoption of green innovation reporting (GIR). The objective of this study is to advocate for greater disclosure on sustainability reporting by incorporating the GIPs of companies and substantial, sustainable development goal contribution, along with the moderation of the newly upgraded ISO 56002-2019 innovation management system. Adoption of green innovation reporting and ISO 56002-2019 will enhance the level of transparency of business activities and create greater stakeholder confidence along with enhancing the firm's sustainable development of goal performance. Furthermore, an extensive literature review was undertaken to create a GIR framework (i.e., product, process, service and technology) for firms to integrate GIPs into sustainability reporting. The conceptual model proposed the adoption of green innovation reporting and ISO 56002-2019 innovation management system to firm sustainable development goal. This needs to be injected into the sustainable reporting of companies to reflect their innovativeness, actual sustainable business practices and sustainable development goal performance for the firm.     

The pricing of accruals quality in credit default swap spreads

We examine the association between accounting information risk, measured with accruals quality (AQ), and credit spreads, primarily measured with credit default swap (CDS) spreads. Theoretically, AQ measures the precision with which accruals map into cash flows. Better AQ implies a more precise estimate of future cash flows and, we predict, a reduction in credit spreads due to resulting lower uncertainty regarding the ability to meet debt interest and principal payments. In support of this hypothesis, we find a negative relationship between AQ and CDS spreads whereby better AQ is associated with lower CDS spreads. Additionally, we investigate the components of total AQ and find that innate AQ is more strongly associated with CDS spreads than is discretionary AQ. We further show that AQ moderates the market's pricing of earnings: the relationship between earnings and CDS spreads weakens as AQ worsens. Together, our results indicate that accounting information risk is priced in credit spreads and that the CDS market responds not only to the level of earnings, but the quality thereof as well.     

Conservatism,SEC investigation,and fraud

We present evidence on the relationship between firms that have engaged in fraudulent financial reporting and accounting conservatism. We empirically investigate the extent to which US firms identified by the SEC in their Enforcement Releases demonstrate higher levels of conditional conservatism in order to mitigate information asymmetry and agency problems. Specifically, by assessing the timing of changes in the litigation risk environment for fraud firms, we document how differences in heightened legal liability guide changes in conservative accounting behavior. Compared to a matched non-fraud control sample, we document that fraud firms have significantly lower levels of accounting conservatism in the pre-fraud period. Consistent with changes in potential legal liability, we find an increase in accounting conservatism for fraud firms during the SEC investigation period. Subsequently, during the public discovery of fraud, any increases in accounting conservatism are marginal and appear to converge back to lower levels compared to the SEC investigation period. Overall, our findings suggest more temporary changes in conservative reporting in the short-term for fraud firms. We also document that increased levels of accounting conservatism for fraud firms are not due solely to the passage of the SOX Act. Our findings aid in explaining fraud firms’ incentives and opportunities for accounting conservatism and lend support for why standard setters, regulators and auditors should continue to monitor and re-evaluate conservatism’s short-term effects that are conditioned on changes in a firm’s risk environment.     

Did the Great Recession Affect Fertility? Examining the Impact of Job Displacements on the Timing of Births in the United States

We examine the impact of job losses during the Great Recession on fertility in the United States. We find that for married/cohabiting couples, job losses of males during the recession decreased the likelihood of birth. In contrast, job losses of married/cohabiting females had no impact, on average, on fertility because of opposing age-specific effects. Although younger women were reducing fertility after job losses to cope with the loss of income, older women, aged 40 and above, were more likely to have a child following their job loss. Moreover, we find that job losses of single/noncohabiting females decreased the likelihood of birth, particularly for women below the age of 25. This negative effect on fertility persisted in the medium-term, up to three years following the job losses. Overall, these results suggest that job losses during the recession may be partly responsible for the recent decline in the U.S. birth rates.     

Understanding Competition across Retail Distribution Channels of Health and Wellness Food Products in India

This study aims to analyze the retail channel structure and level of competition across retailers in distributing health and wellness food products in India. Compound annual growth rate (CAGR), analysis of variance (ANOVA) and Herfindahl-Hirschman Index (HHI) have been used to analyze the data. It is evident from the analysis that level of competition varies across the retail channels of health and wellness food products and has been increasing over the years. The study provides valuable insights to the companies involved in producing and marketing of health and wellness food products for an effective channel distribution strategy.     

FOOD SECURITY AND LOW‐INCOME HOUSEHOLDS IN THE MALAYSIAN EAST COAST ECONOMIC REGION: AN EMPIRICAL ANALYSIS

This research, conducted to analyze the level of food security among poor and low‐income households in the east coast economic region of Malaysia, uses primary data of 460 families from the E‐Kasih poor households database, based on a cluster random sampling technique. Food security levels were measured using the United States Agency for International Development Household Food Insecurity Access model. Findings indicate that 52.8% of households are food secure, 23.3% mildly food insecure, 14.3% moderately food insecure, and 9.6% are severely food insecure. These findings are very important to assist policymakers to achieve Vision 2020 and the targets of Malaysian National Plans regarding food security, socioeconomic development, and the alleviation of poverty. The involvement of private sector and community‐based organizations are important to combat short run, seasonal, and event‐related risks, as well as for the development of appropriate mitigation and adaptation options to ensure sustainable food security at household level in Malaysia.     

The efficiency of the Environmental Management Charge in the Cairns management area of the Great Barrier Reef Marine Park*

Using data from a survey of more than 1000 domestic visitors to the Northern section of the Great Barrier Reef (GBR) – predominantly those travelling on live‐aboard dive boats – this research investigates the (tax) efficiency of the Environmental Management Charge (EMC). The travel cost method (with a zero truncated negative binomial specification) is used to estimate the price elasticity of demand, and those estimates are used to estimate the deadweight losses, the losses in visitor numbers that could be ‘blamed’ on the EMC and the associated taxation revenues for different types of trips. The welfare loss for each dollar of revenue raised from the EMC was estimated at less than one per cent for each type of trip considered. The analysis therefore suggests that, for these types of trips in this part of the reef at least, the EMC is a very efficient tax – particularly when compared with other taxes. This has important implications beyond the GBR, particularly in countries who struggle to find sufficient funds to properly manage world heritage areas: taxes such as these may be a relatively efficient and equitable means of collecting such revenues.     

Sources of volatility persistence: A case study of the U.K. pound/U.S. dollar exchange rate returns

This paper utilizes a new approach to examine the inherent nonlinear dynamics of the exchange rate returns volatility. Specifically, we utilize a regime switching threshold (i) generalized autoregressive conditional heteroskedasticity (RS-TGARCH) and (ii) a fractional generalized autoregressive conditional heteroskedasticity (RS-TFIGARCH) model. The RS-TGARCH model is found to be adequate in analyzing the first two moments of the U.K. pound/U.S. dollar monthly exchange rate returns series. The RS-TFIGARCH is found to be adequate for the daily returns series. The volatility persistence and leverage effects associated with exchange rate returns series are jointly tested by means of a Wald Chi-square test.     

A two-methodology comparison study of a spatial gravity model in the context of interregional trade flows

This article argues that the introduction of spatial interactions to model the determinants of origin-destination (OD) flows can potentially result in excessive contiguity. To explain flows between OD regions, it is not only what happens in the origin and destination that is relevant, but also what happens in their neighbouring regions. However, what happens if there is a high degree of overlap between origin neighbouring areas and destination neighbouring areas? The article presents an empirical illustration to re-examine the evidence presented in previous research (Alamá-Sabater et al., 2013) and more closely analyses the territorial level, focusing on the case of interregional trade of goods at the NUTS3 level (Spanish provinces). We then use two different methodologies within the framework of a spatial gravity equation for interregional trade modelling. The findings confirm the importance of spatial dependence on trade flows and in particular that logistics decisions within a province affect shipments from contiguous provinces.     

Unilateral liberalisation and WTO GATS commitments: the telecommunications sector in selected countries

This paper examines how unilateral liberalisation of the telecommunications sector affected WTO Member countries' commitments in the GATS of the WTO. It is argued from observations and interviews that unilateral liberalisation provides a basis for making WTO commitments. The differing objectives of WTO Members, their attitudes towards reform (strong reformer or lukewarm supporter of reforms), and country-specific sensitivities appear to be factors responsible for the observed differences between unilateral reforms and GATS commitments in the telecommunications sector.