Do post-restatement firms care about financial credibility? Evidence from the pre- and post-SOX eras

This study examines whether negative-market-reaction firms in the year following restatement announcements adopt more conservative financial reporting to respond to their financial reporting credibility crisis, especially in the post-SOX era. Using Basu’s (1997) measure of conservatism, we find that negative-market-reaction firms in the year following restatement announcements report their financial statements more conservatively in the post-SOX era, as the market reaction following restatement announcements becomes more severe. We also find that as the negative market restatement reaction becomes more severe, negative-market-reaction firms using a Big N auditor in the year following financial restatements report their financial statements more conservatively in the post-SOX era.     

Knowledge creation and new product performance: the role of creativity

This research is concerned with how knowledge creation influences new product performance through creativity, which includes novelty and appropriateness. The following relationships are examined in our proposed model: (1) the influence of knowledge creation on new product performance; (2) the influence of novelty and appropriateness on new product performance; and (3) the influence of knowledge creation on novelty and appropriateness. A questionnaire was designed and mailed to the sampled Taiwanese manufacturing companies. The analysis results show that knowledge creation helps research and development personnel create novel and appropriate products, which in turn increase new product success. New product performance is affected by both novelty and appropriateness, the former of which has a greater influence. Through additional exploratory analyses, in which socialization, externalization, combination, and internalization are antecedents, we show that socialization's effect on new product performance is fully mediated by novelty and appropriateness, but internalization's influence is only partially mediated. Meantime, the influence of externalization on performance is fully mediated by novelty, but not by appropriateness. Combination has a direct influence on new product performance. Finally, this research provides theoretical and managerial implications based on these results.     

Directional Spillover Effects Between BRICS Stock Markets and Economic Policy Uncertainty

Asia-Pacific Financial Markets - In recent years, researchers have increasingly studied the association between the stock market and economic policy uncertainty (EPU). To have more profound...     

Effects of Mood States on Variety Seeking: The Moderating Roles of Personality

Building upon previous research and in an attempt to better understand the influence of mood states on variety‐seeking (VS) tendency, two specific emotional states (sadness and happiness) are discussed. Furthermore, this article proposes that the effects of mood states on VS are moderated by individuals’ differences. In this article, optimum stimulation level, self‐monitoring, and need for cognition are used to examine the moderating effects of this relationship. Consistent with the proposed hypotheses, the results indicate that sad individuals tend to incorporate more VS than happy ones. In addition, the three personality types tested in this article moderate the effects of mood on VS. Finally, suggestions for future research are discussed.     

Gaining or losing? The social capital perspective on supply chain members’ knowledge sharing of green practices

To accelerate the reform of green management, organisations need to adopt new green practices to seek knowledge through inter-firm environmental collaboration. In order to promote knowledge sharing, it is important to know how organisations evaluate the logic behind their green practices, i.e. gaining or losing, by referring to crucial supply chain networks. We identified factors that were considered influential in adopting a new practice through the social capital perspective and also examined their impact on the green supply chain. This study used the partial least square method to analyse the green management performances of 160 Taiwanese firms. The results suggest that cognitive capital significantly affects knowledge sharing behaviours among supply chain members. Furthermore, while the structural capital had a significant effect on knowledge inflows, its influence on the outflows of knowledge was limited. Both the inflows and outflows of knowledge considerably influence green management performance. The findings indicated that supply chain social capital plays an important role in implementing the logic of adopting green practices and also aids network members in obtaining individually required resources.     

Synchronisation von Nachricht und Werbung

Advertiser pressure has always been seen as a potential source of bias in the coverage of ad-financed media. The effects of advertiser pressure, however, have seldom been subject to systematic empirical research. Content analyses on the subject are particularly rare. This study for the first time scrutinizes on how the representation of firms by the leading German political weeklies Der Spiegel und Focus correlates with the amount of advertising by those firms. For this purpose all ads and the full news coverage on selected firms during the year of 2011 were analyzed. Central findings show that firms will receive more coverage, friendlier coverage and a larger share of product coverage, the higher their volume of advertising both in Der Spiegel and in Focus.     

Nonearnings Corporate Guidance

We examine nonearnings related disclosure and find that many firms voluntarily provided guidance on capital expenditure (CAPEX) and provided strategic plan disclosure (SPD) before recent proposals to increase nonearnings information disclosure. Furthermore, we find that firms with high long‐term institutional ownership tend to provide both earnings and CAPEX guidance; that turnaround firms tend to provide SPD in lieu of earnings guidance; and growth firms tend to provide earnings guidance without SPD. Our results suggest that unconstrained firms make optimal disclosure decisions and that corporate guidance behaviors might not have contributed to earnings fixation and myopia in capital markets.     

Firm growth type and capital structure persistence

We find that growth type (identified by a two-way sort on firm initial market-to-book ratio and asset tangibility) can parsimoniously predict significantly dispersed and persistently distinct future leverage ratios. Growth type is persistent; growth-type-sorted cross-sections of corporate fundamental variables (such as tangible versus intangible investment style) are also meaningfully persistent. As economic and market conditions improve, low growth type firms are keener to issue new debt than equity, whereas high growth type firms are least likely to issue debt and keenest to issue equity. These findings demonstrate that firms rationally invest and seek financing in a manner compatible with their growth types. Consistent with a generalized Myers–Majluf framework, growth type compatibility enables distinct growth types and hence specifications of market imperfection or informational environments to persist. Growth type is apparently a fundamental factor for capital structure persistence.     

Consumption inequality between farm and nonfarm households in Taiwan: a decomposition analysis of differences in distribution

Consumption has been recognized as a more reliable indicator of household well‐being than income. Although a considerable body of literature has examined income inequality between farm and nonfarm households, little is known about inequality in consumption. This research aims to fill this knowledge gap by investigating consumption disparity between farm and nonfarm households. Using a nationally representative household survey from Taiwan, we apply an unconditional quantile regression‐based decomposition method to decompose the differences in the distribution of household expenditure between these farm and nonfarm households. The results indicate that differences in the observed characteristics between these two types of households explain most of the consumption inequality. Moreover, the difference in the education level of the farm operator, household income, and the degree of urbanization are particularly important.     

Spatial Cournot competition in a circular city with more than two dispatches

This paper investigates spatial Cournot competition in a circular city, where the maximal service range of a vehicle is less than half of the perimeter, and a firm needs to initiate more than two dispatches to serve the whole market. We examine a multi‐stage game of location and transportation mode choices, and the subsequent quantity competition between duopoly firms. The findings reveal that non‐maximum dispersion is the unique location equilibrium when duopoly firms deliver products in different transportation modes or when the transportation mode decisions are made endogenously and the fixed cost of a transportation instrument is relatively high.