Endogeneity and the Dynamics of Voluntary Disclosure Quality: Is there Really an Effect on the Cost of Equity Capital?*

Research on the effects of voluntary disclosure quality on the cost of equity capital is often plagued by endogeneity concerns. In this paper, I use a dynamic panel system GMM estimator, which provides internal instruments from the firm's history that directly address endogeneity arising from unobserved heterogeneity and simultaneity. By using hand-collected voluntary disclosure scores for firms listed in the Swiss stock exchange, I examine the dynamic relation between voluntary disclosure quality and the cost of equity capital in a panel over a period of 10 years. The results suggest that the relation between voluntary disclosure quality and the cost of equity capital becomes insignificant after controlling adequately for potential dynamic endogeneity, simultaneity, and unobserved heterogeneity.     

Connections between the Market Pricing of Accruals Quality and Accounting-Based Anomalies*

We examine whether prior findings on the market pricing of accruals quality (AQ) can be attributed to other forms of accounting-based anomalies. Using hedge portfolio analysis and cross-sectional regressions, we find that the return predictive power of AQ overlaps with several other accounting signals. We also find that, similar to other accounting-based anomalies, especially the accruals anomaly, the AQ pricing effect (i) is likely due to mispricing instead of risk pricing, (ii) is attenuated in recent years, and (iii) disappears among firms with cash flow forecasts or long-term growth forecasts. Our findings highlight the importance of controlling for existing return predictive signals when evaluating the market pricing of AQ.     

An Empirical Analysis of Analysts' Capital Expenditure Forecasts: Evidence from Corporate Investment Efficiency*

We examine whether the information conveyed in a relatively new analyst research output—capital expenditure (capex) forecasts—affects corporate investment efficiency. We find that firms with analyst capex forecasts exhibit higher investment efficiency. This effect is stronger when the forecasts are issued by analysts with higher ability or greater industry knowledge. Moreover, the effect of capex forecasts on investment efficiency varies with the signals they convey about future growth opportunities—positive-growth signals are more effective in reducing underinvestment, while negative-growth signals are more effective in reducing overinvestment. Cross-sectional tests suggest that these effects operate at least in part through both a financing channel and a monitoring channel. Taken together, our results suggest that analysts' capex forecasts convey useful information about firms' growth opportunities to managers and investors, which can facilitate efficient investment.     

La segregación ocupacional por horas de trabajo en Europa

En este artículo se cuantifican los niveles de segregación ocupacional entre el trabajo a tiempo parcial y a tiempo completo según los datos de la Encuesta Europea de Población Activa para quince países europeos, tratando de identificar algunos determinantes de la segregación mediante un análisis de regresión con tres grupos de indicadores (cantidad de empleo, calidad del empleo y factores institucionales). Por lo general, la segregación ocupacional por horas de trabajo es más alta para los hombres que para las mujeres y más alta para los trabajadores jóvenes que para los adultos. Así como entre los hombres la segregación se correlaciona solamente con la cantidad de empleo, en el caso de las mujeres adultas y los trabajadores jóvenes inciden variables asociadas a los tres grupos de indicadores.     

Diferencias salariales en una ocupación mayoritariamente femenina. El trabajo doméstico informal y flexible en Portugal

Se investigan los efectos de las modalidades contractuales informales y flexibles sobre los salarios de los trabajadores domésticos contratados por empleadores privados en Portugal, a partir de una muestra de datos transversales originales. Las estimaciones MCO indican que la formalidad beneficia a los trabajadores tanto en contratos estables como flexibles. Los procesos sociales y del mercado de trabajo tienden a perpetuar la desigualdad, principalmente en detrimento de los trabajadores migrantes. Aunque las competencias están infravaloradas y mal retribuidas, los trabajadores eventuales que prestan servicio a múltiples empleadores o cuidan de los ancianos perciben salarios más altos y, aun así, están sujetos a explotación e inseguridad.     

Enhancing financial performance by pharmacy innovation

Antecedents and consequences of customer orientation have been the subject of significant empirical investigation. Although several studies have explored employee variables as antecedents to customer orientation, work ethic has received little research attention. Additionally, there have been incongruent findings related to the effect of customer orientation on performance, as some have found it to be direct or indirect via innovation. This study explores overall work ethic as an antecedent to customer orientation and innovativeness as the missing link between customer orientation and performance among Canadian retail pharmacies. The results show support for the influence of work ethic on customer orientation, and the role of innovation as a mediating variable. This study advances the understanding of work ethic, customer orientation, innovation, and performance in Canadian retail pharmacy.     

El desastre del Rana Plaza siete años después: Iniciativas transnacionales y proyecto de tratado

Se examinan iniciativas innovadoras de derecho laboral transnacional en respuesta al desastre del Rana Plaza (Bangladesh) en 2013. Respaldadas por la OIT, tuvieron gran éxito, pero fueron insuficientes para un cambio duradero en la industria de la confección: las prácticas de abastecimiento de las grandes marcas en la cadena mundial de suministro obstaculizan la inversión en seguridad y salud en el trabajo. El proyecto de tratado de las Naciones Unidas sobre las empresas y los derechos humanos podría mejorar la toma de responsabilidades dentro de una combinación inteligente y multinivel de mecanismos públicos y privados, pero convendría que reflejara la experiencia adquirida tras el desastre del Rana Plaza.     

Investor Sentiment,Misstatements, and Auditor Behavior*

High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. We extend this line of work by documenting that the likelihood of misstatements is higher when sentiment is high. Although this would suggest elevated audit risk, we posit that a contemporaneous reduction in auditors' litigation cost could drive down audit fees and going concern opinion (GCO) reporting conservatism in order to please clientele. Consistent with this notion, we document that auditors charge lower fees and report GCOs less conservatively when sentiment is high. However, this reduction in reporting conservatism is unwarranted; results reveal that auditors are less likely to issue GCOs to clients which subsequently file for bankruptcy during high sentiment periods. We conduct additional tests to examine whether auditors' litigation costs indeed vary with sentiment and document that auditors are less likely to be sued and the market reacts less negatively to misstatement announcements when sentiment is high. Collectively, our findings suggest that, although misstatement risk is increasing with sentiment, auditors' litigation risk actually declines.     

Getting From ‘Me’ to ‘We’: Role Clarity,Team Process,and the Transition From Individual Knowledge to Shared Mental Models in Employee Dyads

Shared mental models are crucial for team functioning; however, little research to date has focussed on uncovering the predictors of shared mental models. The present study investigates the effect of role clarity on shared mental models by means of its indirect effects via team process. Two hundred and two undergraduate students participated in a dyadic firefighting simulation in which their role clarity, team process, and mental model similarity were measured. Analyses conducted at the dyadic level suggest that role clarity predicts mental model similarity via its effects on team process. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Impact of responsive and proactive market orientation on SME performance: The moderating role of economic crisis perception

This study examines the relationship between market orientation (MO) and the performance of small and medium‐sized enterprises (SMEs) within the context of economic crisis. It distinguishes between two levels of MO: responsive market orientation (RMO) and proactive market orientation (PMO). Data were collected on a sample of 300 SME. Findings indicate that SMEs, confronted with an economic downturn, use a MO approach that is both proactive and responsive, and reveal the moderator effect of the SME manager's perception of an economic crisis on PMO/RMO–performance. Research and practical implications are discussed. © 2018 ASAC. Published by John Wiley & Sons, Ltd.