Green banking disclosure,firm value and the moderating role of a contextual factor: Evidence from a distinctive regulatory setting

The idea that green banking disclosure leads to increased firm value has been rightly considered as over-simplistic. This paper builds on key prior insights by investigating whether combining green disclosure with other contextual factor, such as non-performing loans, provides additional insight into the complex green disclosure–firm value relationship in a regulatory setting where green law has recently been enacted for the banking industry. We present an analysis of seven years of data sourced from listed banks in Bangladesh (2008–2014), with data analysed using multiple regression. Our findings indicate that, while green disclosure has a positive effect on the overall firm value of banks, this positive effect is negatively moderated by banks' non-performing loans. This research contributes to the knowledge by showing that green disclosure alone is insufficient for creating market value for banks. Additional contextual matters need attention to understand the impact of green disclosure in contributing to increased market value for banks.     

Asymmetric Cointegration,Nonlinear ARDL,and the J-Curve: A Bilateral Analysis of China and Its 21 Trading Partners

This article follows the nonlinear Autoregressive Distributed Lag (ARDL) error-correction methodology to explore nonlinearity in the relationship between the trade balances and the real exchange rates for China and its 21 partners. We find evidence for short-run asymmetric effects of exchange rate in cases of 18 partners, short-run adjustment asymmetry in cases of 11 partners, short-run cumulative asymmetry in cases of seven partners, and a significant long-run asymmetric effect cases of five partners. We find support for the “J-curve” that is only due to appreciation or depreciation of the Yuan in cases of five partners, including the U.S.     

The Relationship Between HR Capabilities and Quality of Patient Care: The Mediating Role of Proactive Work Behaviors

Based on theoretical frameworks of resource‐based theory, dynamic capabilities, and behavioral perspective on human resource management, we developed a multidimensional construct of human resource (HR) capabilities and tested its relationship with quality of patient care using a national sample of U.S. hospitals. The data on HR capabilities were collected from senior managers (421 individuals nested in 279 hospitals) representing both the administrative and clinical sides of the hospitals. The data on quality of patient care were gathered from two unique sources—patients of 207 hospitals who reported the data via the hospital Consumer Assessment of Healthcare Providers and Systems Survey, and 421 senior managers of 279 hospitals. Our analyses using structural equation modeling suggests that the positive relationship of HR capabilities with quality of patient care is mediated by proactive behaviors of health care workers. Implications of the study findings for research and practice are discussed. © 2016 Wiley Periodicals, Inc.     

The Effects of Negatively Valenced Emotional Expressions in Online Reviews on the Reviewer,the Review,and the Product

The authors examine the effects of negatively valenced emotional expressions (NVEE; e.g., intense language, all caps, exclamation points, emoticons) in online reviews and reveal important boundary conditions for their effects. Specifically, Study 1 showed that NVEE directly promote review helpfulness and damage attitude toward the product when used by experts. In contrast, for novices, their use of NVEE was considered a poor reflection on them and failed to directly affect attitude toward the product. Further, attributions of reviewer rationality and trustworthiness were positively associated with review helpfulness and attitude toward the product. Interestingly, language complexity is a trigger to reverse the effects, as found in Study 2. For novices (experts), the adverse effect on trustworthiness is eliminated (introduced) but the adverse effect on attitude toward the product is introduced (eliminated) when they include more complex language accompanied by NVEE in their online reviews. Both studies uncover when source discounting is active for experts and novices, making them equally influential in some cases. Theoretical and managerial implications are provided.     

Does CEO–Audit Committee/Board Interlocking Matter for Corporate Social Responsibility?

Journal of Business Ethics - This study examines the impact of the Chief Executive Officer (CEO)’s interlocking, created through serving on other companies’ audit committees and/or...     

Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation

This paper investigates the impact of household exposure to employer pension plan features using the Health and Retirement Survey. We investigate whether exposure to active management (choice) or participation in plan-sponsored financial education seminars impacts household portfolio allocations and wealth. We consider interactions between pension design and investment patterns outside of workers’ pension plans, utilizing two parametric estimators: the random effects probit and the multivariate probit. We extend our results non-parametrically via propensity score matching. We find repeated evidence that both of the plan features improve asset allocations and financial outcomes for recent retirees, especially when used together.     

Optimal use of correlated information in mechanism design when full surplus extraction may be impossible

We study the mechanism design problem when the principal can condition the agent's transfers on the realization of ex post signals that are correlated with the agent's types. Crémer and McLean [Econometrica 53(1985) 345-361; 56(1988) 1247-1257], McAfee and Reny [Econometrica 60(2)(1992) 395-421], and Riordan and Sappington [J. Econ. Theory, 45(1988) 189-199] studied situations where the signals are such that full surplus can be extracted from every agent type. We study optimal utilization of the signals when there are fewer signals than types and the Riordan and Sappington conditions do not always hold. For some special cases, we show the level of surplus that can be extracted, and identify the agent types who obtain rent.     

Credence Goods,Efficient Labelling Policies,and Regulatory Enforcement

We analyse the optimality of information revelation of hidden attributes of “credence goods” via alternative labelling procedures. When consumers are heterogeneous in their willingness to pay for the hidden attribute, producers can either self-label their products, or have them certified by a third party. The government can impose self or third party labelling requirements on either the “green” or the “brown” producers. Our benchmark model develops a condition that links the optimal imposition of third party labelling to the relative market share of each type of the good under complete information. We extend our analysis to incorporate asymmetric information and cheating by the producers. When corrupt producers can affix spurious labels, the government needs to supplement the labelling policy with costly monitoring activities. We find that mandatory self-labelling schemes generally dominate mandatory third party labelling, unless the “market share effect” greatly exceeds the “incentive-to-cheat effect”.