Do Analysts Strategically Employ Cash Flow Forecast Revisions to Offset Negative Earnings Forecast Revisions?

We investigate whether analysts use cash flow forecasts to reduce the impact of earnings forecast revisions (EFRs) on market participants. In particular, we focus on conflict between an analyst's concurrent cash flow and earnings forecast revisions. We hypothesize and find that analysts are more likely to issue a positive cash flow forecast revision when they issue a negative earnings forecast revision concurrently, but not the opposite, particularly for Fortune 500 firms. Furthermore, our supplementary analyses suggest that (1) some analysts optimistically bias cash flow forecasts when they issue negative earnings forecast revisions; (2) the market pays less attention to the historical accuracy of analyst cash flow forecasts, so analysts have some latitude to present their cash flow forecasts in an optimistic way; and (3) the market reacts mainly to the direction, not the magnitude, of cash flow forecast revisions. Overall, these findings suggest that analysts may strategically use cash flow forecasts in conjunction with earnings forecasts to maintain good management relationships.     

“How may I help you?” Politeness in computer-mediated and face-to-face library reference transactions

Drawing upon Wittgenstein’s theory of language games, we apply a pragmatic approach to organizational communication. The study extends current theories of computer-mediated communication, and explores how language actually gets used across media. We conduct a comparative study of face-to-face versus computer-mediated reference transactions in an academic library, and analyze people’s use of politeness strategies. The study observes that people use politeness strategies to play different language games across media, and that a dynamic interplay exists among the three constituents of language games: sense making, language use, and forms of life. In particular, we found that: First, people use significantly more negative politeness strategies and fewer positive politeness strategies online than face-to-face. Second, language use influences people’s understanding and precedes practical forms of life. Third, CMC is a different form of life than a face-to-face communication. The new online form of life shapes people’s sense making and the way they use language, resulting in emerging new grammars of CMC. Finally, our findings suggest the interplay among multiple forms of life. This study offers important theoretical and managerial implications for organizational communication and the production and delivery of services in the rapidly expanding digital economy.     

Hedonic shopping motivation and co-shopper influence on utilitarian grocery shopping in superstores

Much prior literature has focused on how hedonic shopping motivation operates in hedonic shopping environments such as shopping malls, but few empirical studies have assessed hedonic shopping motivation effects in utilitarian shopping environments. Combining a field survey (Study 1) with observation using video ethnography (Study 2), our research addresses this issue. Our results empirically reveal how, through both psychological and behavioral routes, hedonic shopper motivation affects purchases in a utilitarian shopping environment, specifically a section of a superstore selling predominantly utilitarian products. Hedonic shopping motivation is found to induce consumer impulsiveness (psychological route) while also encouraging shoppers to stay longer in a store (behavioral route), which when combined result in greater consumer purchases than either route alone. Additionally we observe a moderating effect of co-shopper influences on these two routes. Implications of these findings are discussed.     

Operationalization of path walkability for sustainable transportation

Most walking travel behavior research thus far has tested area-based neighborhood walkability, which is measured with meso-level urban form attributes. In need of micro-level walkability analyses that focus on individual travelers and their routes, we propose a route-oriented linear walkability concept named “path walkability.” It is defined and measured by 42 path walkability indicators that can collectively represent an individual traveler's micro-level walkability. A graphic measurement instrument for an objective and efficient on-field walkability measurement is developed. This study also sets the protocol for quantitatively integrating the walkability data measured at the segment level into path walkability indicators that are comparable at the route level. To test the applicability of the proposed path walkability, a pilot case study is conducted within a station area. A user survey is administered to collect transit users' access mode choices and walking routes to the station. The survey results help identify two groups of street segments: one used by regular walkers and the other selected by habitual auto users/occasional walkers. The routes chosen by the two groups are quantitatively and graphically compared for walkability. The analyses show a physically measurable and quantitatively comparable difference between the routes' walkability and suggest criteria for walking-conducive transit walkability for station users. Specific design recommendations for improving street-level micro-walkability for future transit-oriented developments (TODs) are added along with a future research agenda.     

Modeling the short-run costs of changes in water availability in a desert city: a modified input-output approach

This paper investigates the impact of change in sectoral water supply on employment, value-added output, and indirect business tax, in Maricopa County, Arizona using input–output model. We developed extended modified input–output approach that incorporates each source of water as a separate sector, and that allows for substitution between water sources, and estimated the economic impact of a change in surface water supplies under two scenarios. Scenario I assumes that total water supply/use decreases by 1%, but the reduction comes only from surface water use, holding groundwater use constant. Scenario II assumes that surface water supply/use in all industries decreases by 1%, and the reduction in surface water use is replaced by the exact amount of more expensive groundwater. We found that the magnitude of economic impact depends on consumer’s responsiveness to water price change. When price elasticity of water demand is relatively low (≤0.2), the economic impact of a 1% reduction in surface water supplies was smaller than under the first scenario. However, the more water users in all industries are responsive to a change in water price, the bigger are economic impacts in terms of reductions in jobs, value added, and indirect business taxes.     

The time difference effect of a measurement unit in the lead-lag relationship analysis of Korean financial market

This paper investigates Korean financial markets for the study of market microstructure of price discovery in the KOSPI 200 stock index and its related derivatives markets using different time-interval price data. The Granger causality test and vector error correction model are used to analyze the empirical relationship between markets. The lead-lag relationship between the KOSPI 200 stock index and its derivatives markets can be supported by the trading cost hypothesis and leverage effect hypothesis. This paper also shows the congruent lead-lag results in various time-intervals, but as the time-interval becomes large, more information loss and spurious results are induced. The correlations among 1-minute data, 5-minute data, and 10-minute data are significant under a 1% significance level, however, in the case of 60-minute data, the correlations with any other time-interval data are not significant. The 60-minute data even have negative correlations with others. These results are consistent regardless of the raw data or the innovation data. Therefore, we can conclude that the previous research using the 60-minute data due to an insufficiency of trading volume can be biased considerably.