Capital structure and value of reported earnings: evidence from an emerging market

This article documents a nonlinear impact of capital structure on the value of reported earnings in India during the period between 2009 and 2015. Our results show that earnings reported by firms with moderate level of debt are more valuable than earnings reported by firms with low or high level of debt. Our results are robust across various proxies of capital structure and across various sub-samples. This article argues that moderate level of debt is associated with low-agency problems, while low and high level of debt is synonymous to high-agency problems. Differences in agency problems result in reported earnings that have very different levels of relevance.     

Economics at the FCC, 2013–2014

We present a sample of recent FCC matters of economic interest. These include nonstructural remedies in a number of wireless telecommunications transactions, econometric attempts to identify which schools are likely to have access to fiber broadband, and the implementation of “rural broadband experiments” to improve the effectiveness of subsidy programs to promote universal service. We close with some observations regarding the prominence of vertical concerns in FCC policy assessments.     

AN EMPIRICAL MODEL OF CAPITAL STRUCTURE: SOME NEW EVIDENCE

Using a general autoregressive distributed lag model, we estimate the longrun steady state determinants of corporate capital structure. We find that, in the long run, the leverage ratio is related positively to the corporate tax rate and firm size and negatively to future growth opportunities and stock returns. By contrast, there appears to be no relation between leverage and the corporate tax rate on a short-run year to year basis. Our results suggest that prior empirical evidence on capital structure is of questionable value precisely because of its failure to clearly separate the short-run relationship between leverage and its determinants from its long-run relationship.     

Post-entry internationalization speed of SMEs: The role of relational mechanisms and foreign market knowledge

Prior research shows that small and medium-sized enterprises (SMEs) can utilize domestic networks with internationally experienced partners to accelerate their internationalization process. Yet, there is a lack of clarity and limited empirical evidence regarding the role of relational mechanisms within these networks in driving post-entry internationalization speed (PIS) of SMEs. To address this gap, this study examines the relational mechanisms-PIS relationship by drawing insights from the relational view to argue that foreign market knowledge mediates the relationship between relational mechanisms and PIS. The hypothesized study model is tested using a structural equation modelling (SEM) technique on a sample of 394 UK based manufacturing SMEs. Our results show that foreign market knowledge acquisition from domestic networks fully mediates the relationship between relational mechanisms and PIS. Additionally, the linkage between foreign market knowledge acquisition and PIS is moderated by domestic environmental hostility, such that the relationship is strengthened when domestic environmental hostility increases. We discuss the contributions and implications of our results and suggest opportunities for future research.     

Genesis of the European initiative in insolvency law

This article deals with the history behind the initiative that led to the adoption of the European Insolvency Regulation 2000. It covers the background to the proposals, the content of the various drafts that have merged over the past four decades and criticism of the proposals by commentators. Copyright © 2003 John Wiley & Sons, Ltd.     

Creativity identity in Colombia: the advertising creatives’ perspective

ABSTRACT

This exploratory paper analyses the way in which context influences advertising creativity practices. To establish the role of context, this paper utilized both Social Identity theory and Systems Model of Creativity. Twenty four in-depth interviews with top creative directors of the main advertising agencies in Colombia (Latin America) were collected. Findings suggest the Colombian creative identity is under construction. This identity is influenced by the broader Colombian social context including the unique business characteristics of the country's communications industry, the level of economic hardship experienced by the population, and the actual social conflict lived situation. These findings extend the Systems Model of Creativity to include social hardships and industry level characteristics. Several practical implications not only in relation to Colombia, but also the broader global advertising industry are presented.     

Exploring the Impact of Internal Corporate Governance on the Relation Between Disclosure Quality and Earnings Management in the UK Listed Companies

This study investigates the impact of internal corporate governance on the relation between disclosure quality and earnings management in the UK listed companies, in particular whether governance mechanisms have deterrent effect on earnings management similar to firms’ disclosure quality. Unlike prior literature, we measure a number of board and audit committee-related governance instruments, three disclosure quality proxies (i.e. Investor Relation Magazine Award, Forward-Looking Disclosure and Analyst Forecast Accuracy) and the Modified Jones Model to test the hypotheses of the study on a matched-pair sample data of Investor Relation Magazine Award winning and non-winning firms. Our findings in the OLS and sensitivity analyses using Heckman Procedure and 2SLS regressions consistently report a significant negative association between earnings management and disclosure quality for all proxies in restraining earnings management. In contrast, corporate governance variables are mostly insignificantly related to earnings management. This provides an emerging trend of the outperformance of disclosure quality over internal governance mechanisms in lessening earnings management. These findings warrant due attention of the policy makers, investors, corporate firms and other stakeholders in shaping a high-quality disclosure and governance regime in corporate settings to mitigate managerial manipulations of earnings across the countries in the world.     

An understanding of baby boomers' attitudes toward financial services products in Ghana

This study employed a self‐completion questionnaire to determine the financial needs and specific market characteristics of baby boomers (BBs) in Ghana. The results reveal that BBs are financially savvy and conscious of where to live after retirement. Due to low income and overreliance on families in time of sickness, life insurance is not often purchased. The respondents choose a bank that offers efficient customer services and low rates of interest on loans, and do not perceive long‐term investment to be profitable. The most effective forms of communication are radio, TV, and word of mouth. © 2011 Wiley Periodicals, Inc.     

Procedural justice in promotion decisions of managerial staff in Malaysia

Previous research indicates that procedural justice in promotion decisions has affected employees' organizational commitment, intent to leave and career satisfaction. The purpose of this study was to examine the effect of procedural justice in promotion decisions on managers' commitment, specifically organizational commitment, intent to leave, career satisfaction and job performance in multinational companies in Malaysia. Data were obtained from a sample of managers with more than 10 years of service in the organization through in-depth interviews. The findings show that perceived procedural injustice in promotion decisions have an unfavourable impact on employee commitment, job performance and career satisfaction. The intent to leave is also higher, especially among young managerial staff.