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It is documented that companies and government agencies in the USA invest more in the fourth fiscal quarter without having higher investment opportunities. While previous studies focus on the agency conflicts and information asymmetry within organizations, this study is motivated by Scharfstein and Stein's (2000) two-tiered agency model and aims to examine how firms' external business environment affects the “fourth quarter effect.”

The authors implement this study in a sample of 41 countries and observe similar seasonality in firm investment as documented in the US market.

More importantly, using country characteristics, this study finds that firms from countries with better investor rights and protection, and more developed financial markets show less severe over-investment in the fourth fiscal quarter.

This paper contributes to the literature of law and finance, and the internal capital market, by investigating the quarterly investment patterns of firms from 41 countries. The authors find that similar to the results in earlier studies on the US market, firms in the global market increase their capital expenditure in the fourth fiscal quarter, indicating that the internal agency conflicts between the headquarters and divisional managers are widespread across the world. The authors also find that firms that operate in countries with higher investor rights and protection, and more developed financial markets, tend to show less severe “fourth quarter effect”.

While Dolly Parton may be best known for her distinguished music career, her philanthropic and community work is equally impressive. This paper explains how Parton’s work in these areas can illustrate the principles of authentic leadership from a popular media perspective. Parton’s popularity and wide range of fans across generations and demographics make a case study of her work a poignant and effective pedagogical tool as an introduction to authentic leadership. We share an array of resources in popular media that includes videos, podcasts, and popular press articles and offer questions to facilitate class discussion and about the qualities of an authentic leader.