The Costs of Issuing Preferred Stock

U.S. firms commonly use preferred stocks to raise external capital. Yet this hybrid security's issuance costs and offer yields have not been previously examined in a systematic manner. We analyze a sample of 3,042 U.S. preferred stocks issued between 1980 and 1999. We find that convertible issues, which are riskier than straight issues, entail higher gross spreads and other direct expenses. Scale, credit rating, and industry effects influence gross spreads and issuance costs. We also compare preferred stocks yields with various bellwether bond yields. Our results support the tax‐based argument that suggests that yields on preferred stocks should be lower than comparable risky bonds.     

Price Dynamics and Information Flows in Strategically-Linked Debt Instruments: The NOB and MOB Constituents

We examine information flows between the constituents of the NOB (notes-over-bonds) and MOB (municipals-over-bonds) futures spreads. The results suggest a bicausal relationship between notes and bonds and a unicausal relationship from bonds to municipals. Shocks in the bond market have a large impact on the municipal and note markets, whereas shocks in the municipal or note markets have a smaller impact on the bond market. Volatility spillover from bonds to notes and municipals is detected. We also find significant volatility persistence in all three markets. Spread trades are found to have an asymmetric influence on notes and municipal futures variance.     

Impact of Socio-Economic factors on Consumption Expenditure through Public Distribution System in rural India

Impact of public distribution system (PDS) on poverty in rural India is established; however, how the households from different socio-economic backgrounds are procuring through PDS, relatively, needs study. With this objective, influence of factors like poverty status, family size, social group, religion, gender and occupation on probability of household incurring consumption expenditure through PDS has been studied by using unit level data of consumer expenditure survey of National Sample Survey Office (NSSO) and multinomial logistic regression technique. The study is restricted to food grains rice and wheat and reveals that probability of consumption, through PDS, of minorities, economically and socially backward classes are higher, in general.

     

A rationale for law of technological substitution

This paper links the popular S-shaped curves often used to represent the path of technological substitution with the evolutionary model of a self-organizing industrial system. In particular, the empirical Fisher-Pry law of technological substitution is given a conceptual rationale by treating technological innovations as structural fluctuations which affect an industry's growth path as defined by a set of non-linear differential equations. In so doing, the paper draws heavily on the articles by Allen and Batten.     

An examination of temporal patterns in meta-analysis

Meta-analysis has become increasingly popular as a technique for generalizing and exploring the moderators of a relationship between variables. However, few meta-analyses have explored the possibility that the relationships being studied change over time. In this study, we explore the possible theoretical reasons to expect a temporal change in a relationship under study. In addition, some methodological issues related to detecting these effects are discussed and illustrated using a sample of past studies. The paper shows that the temporal effects are easy to incorporate in the analytical plan and can add to the overall utility of meta-analysis.The authors thank Dr. Robert Peterson, University of Texas at Austin, for providing data used in the study. Dr. Naveen Donthu, Georgia State University, the editor, Dr. Donald Lehmann, and two anonymous reviewers for helpful comments.     

The role of affect in attitude formation: A classical conditioning approach

This study investigates the role of affect in attitude formation. Two experiments, using established conditioning procedures, assessed the impact of affect on attitude formation. The results of Experiment 1 indicate that affect can influence attitudes even in the absence of product beliefs. The results of Experiment 2 suggest that affect plays as important or more important a role than the belief mechanism in attitude formation, depending on the number of repetitions. Implications of the results for understanding the role of affect in advertising are discussed. John Kim is an associate professor of marketing in the School of Business Administration at Oakland University. He earned his Ph.D. in marketing from the University of Cincinnati. His research interests include consumer decision making, advertising effectiveness, and brand equity. His work has appeared in theJournal of Marketing Research, theJournal of Consumer Research, and theJournal of Business Research. Jeen-Su Lim is Interim Chair and a professor of marketing at the University of Toledo. He received his Ph.D. in marketing from Indiana University. His work has appeared in many journals, including theJournal of Marketing Research, theJournal of Consumer Research, theJournal of Business Research, Industrial Marketing Management, International Marketing Review, Management International Review, Psychology and Marketing, and theJournal of Health Care Marketing, among others. His research interests include consumer inference processes, new product development and competitive strategy, and export marketing. Mukesh Bhargava is an assistant professor in the Department of Marketing and Management at Oakland University. He has a Ph.D. in marketing from the University of Texas, Austin, and several years of practical experience in advertising and marketing research. His research includes areas such as advertising effectiveness and evaluation of marketing strategy in business and nonprofit organizations. His work has appeared in theJournal of Advertising Research, Marketing Letters, theJournal of Business Research, and theJournal of the Academy of Marketing Science, among others.     

Climate‐related Risk and Financial Statements: Implications for Regulators,Preparers, Auditors and Users

Interest among investors in understanding climate‐related risk from companies’ management has increased in recent years. Despite this, climate‐related risks are currently predominantly discussed outside the financial statements, if at all. However, as set out in the Australian Accounting Standards Board (AASB)/International Accounting Standards Board's (IASB) Practice Statement 2 Making Materiality Judgements (APS/PS 2), qualitative external factors such as the industry in which the entity operates and investor expectations may make such risks ‘material’ and warrant disclosures when preparing financial statements, regardless of their numerical impact. The AASB and the AUASB expect that directors, preparers and auditors will be considering APS/PS 2 when preparing and auditing financial statements. This paper provides an outline of the guidance and motivation behind the issuance of the bulletin on climate‐related risk disclosures, key takeaways and recommendations, and the AASB's and AUASB's suggestions on the type of evidence that would be useful for standard setters.     

Advancing Sustainability Reporting in Canada: 2019 Report on Progress

This study examines the progress Canada's largest companies are making in their environmental, social, and governance (ESG) disclosures. Given the introduction of the Global Reporting Initiative (GRI) Standards and the United Nations Sustainable Development Goals (UN SDGs) as well as the issuance of the Task Force on Climate‐Related Financial Disclosures (TCFD) recommendations, our research reflects the uptake of these guidance documents by both mature and new reporters. Our analysis suggests that challenges persist—processes and progress often fail to reach investors as they are “lost in translation” when issued through third‐party ESG information providers, and reporters are also pressured to respond to a myriad of requests for information from rating and reporting agencies. Nevertheless, we note that Canada has new reporting sectors that must mature to survive the scrutiny of the markets and also hope that stock markets will respond to the recent announcement by the 181 CEOs of the U.S. Business Roundtable, who committed to lead their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders. Overall, we believe that our research will provide food for thought for companies interested in continuous improvement.