Search results

The purpose of this study is to investigate (1) how managers respond to stock price crashes, (2) why they respond and (3) how their responses affect shareholders.

This study employs a panel regression with various firm-level controls and firm- and year-fixed effects. The sample is comprised of 101,532 firm-year observations with 11,727 unique firms from 1950 to 2019. Using mutual fund flow redemption pressure as an exogenous variable to stock price crashes, the paper provides further evidence of the causality of documented findings.

Management becomes more focused on improving transparency, raising investment efficiency, reducing agency conflicts and regaining the trust of shareholders by investing in social capital and employee welfare. These actions increase firm value. This study also suggests that management undertakes these actions out of concern for their tenure of employment.

The catalysts of stock price crashes are well documented, but much less is known about what happens following stock price crashes. This study provides more insights into the understanding of corporate crisis management practices following adverse events.

The purpose of this paper is to investigate the mechanism of transmitting economic policy uncertainty (EPU) shocks to capital structure.

The authors adopt a novel approach that bridges the asset pricing implications of EPU and the debt-financing decisions of Chinese firms by introducing a variable “policy-risk-induced equity return” (PRER). PRER is the product of the EPU beta and the EPU shock. Differentiating firms as per the signs of the EPU beta helps to shed light on the deep questions of whether their respective leverage targets and speeds of adjustment are different and how the targets and speeds are determined.

The empirical evidence shows that it is the equity market that channels EPU shocks to capital structure through PRER in China. Firms with positive (negative) EPU betas have PRER impact negatively (positively) the leverage target, conforming to the market-timing theory. EPU and non-policy uncertainty shocks cause the speed of adjustment to change over time. Overall, the intertemporal relation between EPU and leverage is negative. These results are robust to alternative leverage measures and after controlling for non-policy uncertainty shocks and conventional firm characteristics and have implications for academic research, policymaking, market stability, and corporate financing.

This study is the first to probe for, and provide insights into, the underlying reason why EPU impacts capital structure by connecting asset pricing to corporate financing for a large sample of Chinese publicly traded firms.

The intent of displaying country of origin (COO) detail on food packaging is to inform consumers' purchase decisions. Of interest is whether how the COO information is displayed is important to consumers. This study examines the importance of attributes associated with the visibility of COO labelling in the context of packaged fresh meat.

Best–worst Scaling (BWS) is used to investigate consumers' preferences for label attributes. Treatments involved two countries (New Zealand and Australia), four font sizes and two placement positionings of COO information on the packaging.

First, the study indicated consumers' preference for domestic than imported meat. This finding supports the intent of COO labelling, which is to inform product selection. Second, the authors ascertained that how COO information is displayed in terms of visibility is important also. Consumers indicated a preference for larger than smaller font size. However, where the COO detail is located on the packaging is of less importance.

While regulations increasingly apply to provision of COO labelling of fresh foods, surprisingly little research has considered consumers' preferences for labelling practice. The study’s findings have implications for public policy decisions and contribute guidelines for retail practice.

This study aims to examine the extent to which organizational dissent predicts perception of workplace bullying. As previous studies have reported inconsistent and sometimes contradictory results regarding the interaction between the reporting of bullying and demographic variables, these variables are examined in the New Zealand context. Organizational communication research provides considerable insight into the ways individuals make sense of and resist workplace bullying through juxtaposition with the concepts of dissent and intragroup conflict.

A nationally representative sample of managers in New Zealand (n = 239) was conducted. Surveys included demographic questions and the following measures: Organizational Dissent Scale and Negative Acts Questionnaire Revised Scale.

Key results and indications for further research are highlighted by the third model in this study. First, workers who reported they engaged in either articulated dissent or latent dissent were more likely to perceive workplace bullying. Second, workers who are more likely to express contrary opinions in the workplace are more likely to recognize, acknowledge and tolerate less positive interactions in the workplace such as bullying.

To the best of the authors’ knowledge, this study is the first to analyze dissent and bullying in the New Zealand context. Second, this research raises the question of whether there is a conflation of work-related bullying behaviors and bad leadership styles that may not be targeted (e.g. authoritative leadership and micromanaging). Finally, communication research provides a distinctive contribution by exploring the narrative form of worker responses to perceived bullying. In this manuscript, the authors examine potential predictors on the perception of workplace bullying in the context of New Zealand, particularly focus on the relationship between dissent and the perception of workplace bullying.

This purpose of this study is to examine the association between earnings management (accruals earnings management (AEM) and/or real activities manipulation (RAM)) and firm underperformance following seasoned equity offerings (SEOs) using cross-country data.

The study applies ordinary least squares regression analyses to a sample of 11,764 observations on firms from 22 countries over the period from 2005 to 2017. The methods include weighted least squares regression, sub-sampling approach and alternative measures of firm performance, earnings management and legal regime for robustness tests as well as a two-stage least squares instrumental variable (IV) approach to address endogeneity concerns.

The results suggest that RAM has a greater negative impact on post-SEO performance than AEM. The result is economically significant for RAM only. The results also reveal that the negative impact of earnings management, in particular RAM, on post-SEO performance is greater in countries with a strong legal regime than in other countries.

Earnings management around SEOs has important implications for investors, regulators and policymakers. The study suggests that policymakers should improve the current legal conditions to promote fairness in the equity market.

The results from the cross-country data support earlier results from single-country studies on the impact of earnings management on post-SEO performance. The study also provides new evidence on the variation in the impact of earnings management according to the strength of the legal regime operating in a country.