Leverage target and payout policy

Depending on whether the existing debt is below or above target debt level, some firms are more willing to raise debt (if needed) than others. In this article, I show that firms are more likely to both increase and smooth dividends when they have below‐target debt after controlling for access to debt. Additionally, I show that when firms have below‐target debt, they use a greater fraction of proceeds from net debt issues to finance dividends. I obtain similar results when repeating the tests with total payouts (dividends plus repurchases) instead of dividends only.     

Cross‐firm return predictability and accounting quality

We test the hypothesis that if poor accounting quality (AQ) is associated with poor investor understanding of firms’ revenue and cost structures, then poor AQ stocks likely respond more slowly than good AQ stocks to new non‐idiosyncratic information that affects both sets of firms. Consistent with this, results indicate that stock returns of good AQ firms significantly positively predict one‐month‐ahead stock returns to industry‐ and size‐matched poor AQ firms. In testing a delayed‐information‐processing mechanism behind the cross‐firm return predictability, we find that: (i) analyst earnings forecast revisions (FR) mimic the return patterns, as FR of good AQ firms significantly positively predict one‐month‐ahead FR of matched poor AQ firms; (ii) cross‐firm return predictability is concentrated in months with substantial news arrival, including months with Federal Open Market Committee (FOMC) rate announcements, but not in no‐news months; (iii) cross‐firm return predictability is stronger when the good AQ predictor firms have a richer information environment than poor AQ firms as proxied by analyst following, institutional ownership, and the presence of a Big 4 auditor. Collectively, the results uncover a new relation between accounting quality and stock return dynamics.     

Sodium content in fast foods: assessment of menu items in selected countries

This study was designed considering the ubiquitous presence of sodium in restaurant menus, the rapid growth of U.S. fast food operations globally, the impact of fast food on human health, and recent legislative steps to label sodium content. A strong correlation was found between calories and protein content versus sodium contents. Similar brand named menu items had different nutrient and sodium content in selected countries. When portion sizes of meat and cheese are controlled sodium can be reduced without sacrificing the flavor of the foods and in addition reducing the calories provided by selected menu items.     

Young Consumer's Green Purchasing Behavior: Opportunities for Green Marketing

This study aims to identify the key antecedents that influence young Indian consumers' environmental attitudes, which indirectly affect their green purchasing behavior. A model is proposed to test the impact of factors affecting environmental attitude and green purchasing behavior. A convenience sampling method was employed to obtain 730 usable responses from young students. The study explores the hypotheses that altruism, interpersonal influence, and environmental knowledge of young consumers affect their environmental attitude. A path analysis shows that environmental attitudes of young consumers affect their green purchasing behavior, demonstrating the attitude-behavior model. The article concludes by presenting theoretical and practical implications for future research in environmental psychology.     

Overconfidence Mediates How Perception of past Portfolio Returns Affects Investment Behaviors

Investors’ perception of past portfolio returns predicts their investment behavior, but does this relationship mediate by overconfidence? Taking into account different aspects of overconfidence, this paper examines whether overconfidence manifested as illusion of control, miscalibration and better-than-average mediates the association between perception of past portfolio returns and investment behavior. In a survey study with individual and institutional investors from Malaysia, the results indicate that perception of higher past portfolio returns increases investors’ trading, percentage of risky share investment and the number of financial asset holding, through the mediating channel of better-than-average effect. While individual investors are influenced by this overconfidence mechanism, institutional investors are not sensitive. This finding has theoretical implication for overconfidence model, house money effect and naïve reinforcement learning. Practically, the results imply that individual investors should be careful about underlying overconfidence biases as it can lead to inefficient decisions.     

Sectoral variability and the foundations of optimal inflation rate

The recent monetary search models argue that the real effects of inflation on economic activity can be gauged through relative price variability (RPV). Our study uses a large panel data of 32 developed and emerging European economies to test the relationship between inflation and RPV. We use a panel threshold model to explore the regime-specific effects of inflation on RPV. Our results confirm a non-linear profile of the relationship between inflation and RPV. Consistent with the monetary search models, our results show that the effects of inflation on the RPV are more significant in its low (below 0.792% per annum) and high (beyond 2.064% per annum) regimes. Finally, we also report a strong moderating role of central bank independence (CBI) in the inflation–RPV relationship.     

Does adoption of ISO 56002-2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm

Reporting is a means of communication for companies to their respective stakeholders. The literature on non-financial reporting has mostly focused on operational, Carbon Discloser Project (CDP), and environmental disclosure to firm performance. This reporting and disclosure approach adopted by companies in their sustainability practices appears to be a normative approach. However, there has been a growing demand by stakeholders to incorporate proactive approach in business activities. To meet that, green innovation practices (GIPs) has been integrated as a new element in environmental reporting, thereby reflecting the proactiveness of companies in their adoption of green innovation reporting (GIR). The objective of this study is to advocate for greater disclosure on sustainability reporting by incorporating the GIPs of companies and substantial, sustainable development goal contribution, along with the moderation of the newly upgraded ISO 56002-2019 innovation management system. Adoption of green innovation reporting and ISO 56002-2019 will enhance the level of transparency of business activities and create greater stakeholder confidence along with enhancing the firm's sustainable development of goal performance. Furthermore, an extensive literature review was undertaken to create a GIR framework (i.e., product, process, service and technology) for firms to integrate GIPs into sustainability reporting. The conceptual model proposed the adoption of green innovation reporting and ISO 56002-2019 innovation management system to firm sustainable development goal. This needs to be injected into the sustainable reporting of companies to reflect their innovativeness, actual sustainable business practices and sustainable development goal performance for the firm.     

Green process innovation: Where we are and where we are going

Environmental pollution has worsened in the past few decades, and increasing pressure is being put on firms by different regulatory bodies, customer groups, NGOs and other media outlets to adopt green process innovations (GPcIs), which include clean technologies and end-of-pipe solutions. Although considerable studies have been published on GPcI, the literature is disjointed, and as such, a comprehensive understanding of the issues, challenges and gaps is lacking. A systematic literature review (SLR) involving 80 relevant studies was conducted to extract seven themes: strategic response, organisational learning, institutional pressures, structural issues, outcomes, barriers and methodological choices. The review thus highlights the various gaps in the GPcI literature and illuminates the pathways for future research by proposing a series of potential research questions. This study is of vital importance to business strategy as it provides a comprehensive framework to help firms understand the various contours of GPcI. Likewise, policymakers can use the findings of this study to fill in the loopholes in the existing regulations that firms are exploiting to circumvent taxes and other penalties by locating their operations to emerging economies with less stringent environmental regulations.     

Shari’ah-compliant Sukuk versus conventional bond announcements: is there a wealth effect?

Review of Quantitative Finance and Accounting - We employ standard event study methodology to examine the stock price reaction to the issuance announcements of 237 Islamic bonds (Sukuk) versus 231...     

Consumer acceptance of delivery drones in urban areas

The concept of drone usage for commercial purposes by retailers worldwide is still in its early stages, and unheard of in Pakistan. Moreover, research on consumer perceptions regarding commercial drones in Pakistan and around the world is very sparse. The purpose of this paper is to gauge the level of acceptability and concerns Pakistani consumers may have in accepting the drone delivery technology. This study offers new insights that retailers and delivery companies can use to penetrate target markets in early stages. The authors have executed a quantitative analysis through the means of a survey. A sample of middle‐ and upper class residents of two cities in Pakistan was selected on which purposive sampling technique was applied. A total of 307 responses were collected and these responses were analysed in SPSS. Various analysis techniques were applied including Cronbach’s alpha, the Pearson correlation analysis, regression analysis and cluster analysis. The results show that consumers in Pakistan perceive privacy issues as a primary concern in relation to drone delivery. The results also throw light on the profile of consumer segments that can be targeted by retailers who may desire to use the drone delivery technology in the near future. Using these findings, retailers using the drone delivery mechanism can address consumer’s fears and ambiguities. Retailers can resolve consumer concerns by designing pro‐privacy parameters in the initial service design stage and the infrastructure deployment of drones.