When and why do IPO firms manage earnings?

There is significant disagreement about whether, when, and why IPO firms manage earnings. We precisely identify the timing and motives behind earnings management by IPO firms. The period around an IPO is characterized by two events: the IPO itself and the lockup expiration. Both the raising of capital at the IPO and the exit by pre-IPO shareholders at lockup expiration create incentives for firms to manage earnings. To disentangle the effect of these events, we examine quarterly, rather than annual, abnormal accruals. We find no evidence of income-increasing earnings management before the IPO. However, IPO firms exhibit positive abnormal accruals in the quarter before and the quarter of the lockup expiration. Positive abnormal accruals are concentrated in less scrutinized firms and firms with high selling by pre-IPO shareholders. Moreover, we find that these accruals subsequently reverse and that such reversals contribute to long-run IPO underperformance.     

Economic Ideas and Institutional Change: The Case of the Russian Stabilisation Fund

An intense discussion is taking place in international political economy on the influence of economic ideas on institutional change. Case studies so far have, however, mainly focused on the Western industrialised countries and research seems to be biased towards cases in which new ideas caused lasting institutional change. The present paper addresses these two shortcomings by analysing the case of the Russian Stabilisation Fund (SF). This case is an example both of the impact of global ideas on a non-Western emerging country and of a ‘near miss’ in the sense that imported neoliberal ideas failed to assert themselves enduringly. Paradoxically, it can be shown how the neoliberally based idea of the SF even contributed to the return to Soviet patterns of industrial policy. The main reason for this, we argue, is that the Fund's implementation was not preceded by economic and political debates. Accordingly, the imported institution of the SF had to be filled with ideational content after its implementation.     

The Emergence of Industrial Relations in Regional Trade Blocks — A Comparative Analysis

This article analyses the emergence and institutionalization of regional industrial relations arrangements in six regional integration agreements (European Union, North American Free Trade Association, Mercado Común del Sur, Economic Community of West African States, Southern African Development Community, Association of Southeast Asian Nations). In each, the article investigates human and social rights, labour standards, residence and social security rights of migrants, regional union and employer organization, and provisions for social dialogue. The article tries to explain the comparative differences in emergent regional industrial relations by testing four competing hypotheses based on integration and institutional theories specified at the regional and national level.     

The effect of stock price on discretionary disclosure

I examine the impact of exogenous changes in stock prices on voluntary disclosure. Specifically, I investigate whether stock price declines prompt managers to voluntarily disclose firm-value-related information (management forecasts) that was withheld prior to the decline because it was unfavorable but became favorable at a lower stock price. Consistent with my predictions, I find that managers are more likely to release good-news forecasts following larger stock price declines but that there is no association between the likelihood of releasing good-news forecasts and the magnitude of stock price increases. Additional evidence indicates that the good-news forecasts eventually conveyed by withholding firms after negative price shocks would likely have resulted in negative market reactions had they been released before the shocks. More generally, I provide evidence that managers withhold bad news and that exogenous stock price declines can induce its disclosure.     

CUSTOMER TYPE AND BANK EFFICIENCY IN POLAND: IMPLICATIONS FOR EMERGING MARKET BANKING

Bank efficiency studies on emerging markets tend to show that foreign banks are more cost-, profit-, and operationally efficient than statE-owned or domestic private banks. They also show that large banks are more efficient than small banks. Using a parametric approach to measuring efficiency, this article finds that foreign banks servicing foreign and business customers are more cost-efficient and less profit-efficient than other banks in Poland. Additionally, evidence of cost economies and profit diseconomies of scale are found. These results have implications for regulatory policies focused on promoting efficiency in the banking systems of emerging markets.     

Dimensions and Determinants of Financialisation: Comparing OECD Countries since 1997

ABSTRACT

The financialisation literature has grown over the past decades. Despite a generally accepted definition, financialisation has been used to describe different phenomena. We distinguish between financialisation of non-financial companies, households and the financial sector and use activity and vulnerability measures. We identify seven financialisation hypotheses in the literature and empirically investigate them in a cross-country analysis for 17 OECD countries and two time periods, 1997–2007 as well as 2008–17. We find different financialisation measures are only weakly correlated, suggesting the existence of distinct financialisation processes. There is strong evidence that financialisation is linked to asset price inflation and correlated with a debt-driven demand regime. Financial deregulation encourages financialisation. There is limited evidence that market-based financial systems are more financialised. Foreign financial inflows do not seem a main driver. We do not find indication that an investment slowdown precedes financialisation. Our findings suggest financialisation should be understood as a variegated process, playing out differently across economic sectors and countries.     

Japanese cuisine in Poland: attitudes and behaviour among Polish consumers

In Poland, in recent years, the number of Japanese cuisine restaurants is still increasing. The aim of this article was to estimate the popularity of Japanese cuisine in Poland and to examine attitudes of Polish consumers towards it. The reasons why this cuisine is chosen by consumers are also studied. The scope of this work includes two anonymous questionnaires. The first study was conducted in Warsaw among 527 random respondents to estimate the level of familiarity with Japanese dishes. The second one was conducted among 115 consumers of a particular Japanese restaurant in Warsaw. Research of the target group was aimed at the characteristics of Japanese dishes consumers. On the basis of the results, it was found that random respondents have relatively little knowledge of Japanese dishes. However, a large percentage of them declared interest in Japanese culture and traditions and was inclined to taste the dishes of this region. Japanese restaurants are mainly popular among young people who follow current culinary trends and fashions and also care about their diet. High prices limit the customer group to well‐off people. Polish consumers visiting Japanese restaurants are usually persons between 31 and 40 years old, with higher education, live in the big cities, as well as with very good or good financial situation. Regular restaurant goers eat out quite often: once a week (38%) or at least once a month (27%). The restaurant studied is mainly visited by people familiar with Japanese cuisine. Sushi is the most popular of the dishes offered.