The quality of accounting information in politically connected firms

We document that the quality of earnings reported by politically connected firms is significantly poorer than that of similar non-connected companies. Our results are not due to firms with ex-ante poor earnings quality establishing connections more often. Instead, our results suggest that, because of a lesser need to respond to market pressures to increase the quality of information, connected companies can afford disclosing lower quality accounting information. In particular, lower quality reported earnings is associated with a higher cost of debt only for the non-politically connected firms in the sample.     

Compensation payments for habitat heterogeneity: Existence, efficiency, and fairness considerations

Compensation payments for voluntary conservation measures have become an important tool for biodiversity conservation worldwide. Each year substantial financial resources are spent on such measures, particularly in the context of agri-environmental schemes. In Europe, a debate has started on whether this money is spent effectively. In response to this debate it has been suggested that a portfolio of measures leading to habitat heterogeneity be implemented. Although payments for heterogeneous conservation measures have been analysed in the literature, it has never been questioned that payments can be designed in a way that encourages enough land users to carry out each conservation measure within a portfolio of measures. The purpose of this paper is to demonstrate that such payments do not always exist. Moreover, in cases where payments for habitat heterogeneity exist the payment scheme may require overcompensation of the land users, posing a limit to both efficiency and fairness considerations.     

When are Consumers Motivated to Connect with Ethical Brands? The Roles of Guilt and Moral Identity Importance

This research adds to the growing literature on what draws consumers to ethical brands. Findings from three studies demonstrate that guilt motivates consumers to connect with ethical brands, especially those consumers with high levels of moral identity importance (MII). Specifically, Study 1 finds that consumers report stronger self‐brand connections (SBCs) with an ethical brand when they feel guilty (vs. control). Study 2 finds that guilt particularly motivates consumers with high MII to report stronger SBCs with an ethical (vs. unethical) brand. In turn, these strong connections lead to increased intentions to purchase the ethical brand. Finally, Study 3 finds evidence for the proposed motivation‐based process explanation by showing that high MII consumers’ propensity to connect with ethical brands when feeling guilty (vs. control) is attenuated when these consumers are first given the opportunity to donate to a charitable cause to alleviate their guilt. Overall, the findings suggest that ethical brands can foster strong connections with and elicit higher purchase intentions from consumers seeking ways to alleviate their guilt.