Social responsibility and corporate reputation: The case of the Arthur Andersen Enron audit failure

We examine the influence of social responsibility ratings on market returns to Arthur Andersen (AA) clients following the Enron audit failure. Chaney and Philipich (2002) found that AA’s loss of reputation resulted in negative market returns to AA clients following the Enron audit failure. Proponents of social responsibility argue that social responsibility can improve the reputation of the firm, while detractors argue that social responsibility expenditures are a poor use of shareholder money. If social responsibility sends a signal to investors regarding the reputation/ethics of management, social responsibility could mitigate the negative returns to AA clients following the Enron audit failure. Using a matched sample of AA and non-AA firms, we do not find evidence that social responsibility mitigated the negative returns to AA clients following the Enron audit failure. Our results are inconsistent with claims that social responsibility can burnish a firm’s reputation in a time of crisis and with prior research indicating a positive relationship between social responsibility and market value.     

Unemployment and consumption patterns

In this paper we obtain empirical evidence about the effect of female and male unemployment on household demand of a selection of goods and services. We analyse the percentage of the family income expenditure on a particular group of goods concerning education, domestic services, leisure goods, hotels etc. The impact of several determinants on each group of commodities is estimated using a Tobit specification. The data used for estimation have been taken from The Household Expenditure Survey (1990–91). Our main result is that male and female unemployment has a different impact on the household consumption.     

Sparkling wine choice from supermarket shelves: the impact of certification of origin and production practices

We report the results of a study based on revealed and stated preference data on choice of Prosecco wines in retail stores close to the origin of production in Northern Italy. Emphasis is placed on ability to reconcile the utility structure of stated preference data with that underlying revealed preference data. We extend the analysis to cover nonattendance of key attributes, such as price and certification of origin, while controlling for the large range of brand effects.     

A project portfolio risk‐opportunity identification framework

This article introduces a framework to identify risks and opportunities during portfolio risk management that helps to decrease the uncertainty of achieving the strategic goals of the organization. The final output of the framework is a portfolio risk‐opportunity register, which highlights the potential events that could impact the achievement of the goals. An illustrative example of how risk‐opportunity identification can be conducted within this framework is also exposed. In spite of being theoretical in nature, the model contributes to the risk management domain applied specifically to project portfolio management, opening the possibility of further research for its verification.     

Examining the stock performance of acquirers where the acquirer or target hold patents

Review of Quantitative Finance and Accounting - We investigate the stock returns for acquirers of firms holding registered patents (“innovative targets”). We find that acquiring...