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1 – 10 of over 2000Luca Menicacci and Lorenzo Simoni
This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media…
Abstract
Purpose
This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation.
Design/methodology/approach
This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage.
Findings
The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation.
Practical implications
The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting.
Social implications
The study has social implications related to the media, which act as watchdogs for firms’ irresponsible practices. According to this study’s findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies.
Originality/value
This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage.
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Christopher N. Boyer, Eunchun Park, Karen L. DeLong, Andrew Griffith and Charles Martinez
Premium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP…
Abstract
Purpose
Premium subsidy rates were increased in 2019 and 2020 for livestock risk protection (LRP) insurance, which is price insurance for cattle producers. The authors examined if the LRP subsidy rate changes affected the LRP coverage levels purchased by feeder and fed cattle producers.
Design/methodology/approach
The authors collected the United States Department of Agriculture Risk Management Agency summary of business sales data for daily LRP purchases from 2015 to 2023. The authors estimated a multinomial logit model to determine if subsidy rate changes were associated with the likelihood of LRP policies being purchased at different coverage levels.
Findings
After the 2019 and 2020 subsidy rate changes, the likelihood of producers buying LRP-feeder cattle policies with coverage over 95% increased relative to the policies with coverage less than 89.99% but did not influence the likelihood of producers buying LRP-feeder cattle policies with coverage between 90 and 94.99% relative to policies with coverage less than 89.99%. Marginal effects show these subsidy rate changes increased the likelihood of buyers purchasing LRP-feeder cattle policies with greater than 95% coverage. The subsidy change did not affect the purchase of LRP-fed cattle policies.
Originality/value
The results demonstrate the influence of the recent LRP policy adjustments on insurance purchases, which could be important for agency officials and policy makers. This is the first study to explore the LRP policy purchases which provides the United States cattle industry insight into the LRP price insurance take-up, which can guide producer extension education on managing price risk.
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Rong Zhu, Yaoyao Fu, Ao Wen and Jiaxin Zhao
This study aims to examine an emerging product–place co-branding marketing practice in China’s rural areas. The role of this practice in inclusive development is analyzed from the…
Abstract
Purpose
This study aims to examine an emerging product–place co-branding marketing practice in China’s rural areas. The role of this practice in inclusive development is analyzed from the perspectives of value proposition innovation, market legitimacy, media coverage and brand value. Both research and practice indicate value proposition innovation to exert an important influence on brand value enhancement, but little is known about the mediating and moderating mechanisms underlying this relation.
Design/methodology/approach
A moderated mediation model is constructed to examine whether market legitimacy mediates the relationship between value proposition innovation and brand value. vWhether this mediating process is moderated by media coverage is also examined. The primary data are collected from semi-structured interviews and observations conducted with two common cases to develop proper scales for value proposition innovation and market legitimacy. The research includes 100 product–place co-brandings published by the Ministry of Agriculture and Rural Affairs in 2019. Hypotheses are tested using hierarchical regression and a Bootstrap model.
Findings
Value proposition innovation has a positive effect on brand value, and market legitimacy partially mediates this relationship. Media coverage positively moderates the relationship between value proposition innovation and market legitimacy, and positively moderates the mediating effect of market legitimacy; the higher the media coverage, the stronger the mediating effect of market legitimacy.
Research limitations/implications
Based on data availability and accessibility, the study sample focused on indicators from 100 brands in 2019. If the Ministry of Agriculture and Rural Affairs discloses consecutive annual information for other years, future studies could explore panel data to further test the study’s conclusions from a longitudinal perspective.
Originality/value
First, this paper adds to the emerging literature on product–place co-branding business models by examining the relationship between value proposition innovation and brand value. Second, this paper enriches institutional theory by including market legitimacy as a mediator between value proposition innovation and brand value. Third, this paper identifies the moderating role of media coverage, thus broadening the theoretical implications of institutional theory with respect to improving market legitimacy.
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This paper documents the effect of different types of information on the value of financial analysts.
Abstract
Purpose
This paper documents the effect of different types of information on the value of financial analysts.
Design/methodology/approach
The authors use the pooled OLS regression and the data of nonfinancial firms from France to test our hypotheses. The data covers the period between 1997 and 2019.
Findings
The results show that analysts are more likely to cover those firms that incorporated greater proportion of market-wide information in their prices. Consistent with the economies of scale view, the authors argue that analysts specialize in the interpretation market-wide information. By doing so, they are able to cover relatively large number of firms simultaneously. The results also show that the value of analyst coverage (measured as the impact of analyst coverage on firm value, probability of stock price crash and probability of stock price jump) is a function of the extent to which different types of information are incorporated in prices. The authors’ results suggest that the impact of analyst coverage on firm value and on probability of crash is less pronounced in firms that incorporate greater proportion of market-wide information. In case of probability of jump, the results show that the impact of analyst coverage is more pronounced firms that incorporate greater proportion of market-wide information.
Originality/value
The major contribution of this paper is to document the impact of different types of information on the extent of analyst coverage. Furthermore, this paper also uses various measures (the impact of analyst coverage on firm value, probability of stock price crash and probability of stock price jump) to show how different types of information affects the value of analyst coverage.
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Mohammed Bouaddi, Omar Farooq and Catalina Hurwitz
The aim of this paper is to document the effect of analyst coverage on the ex ante probability of stock price crash and the ex ante probability stock price jump.
Abstract
Purpose
The aim of this paper is to document the effect of analyst coverage on the ex ante probability of stock price crash and the ex ante probability stock price jump.
Design/methodology/approach
This paper uses the data of non-financial firms from France to test the arguments presented in this paper during the period between 1997 and 2019. The paper also uses flexible quadrants copulas to compute the ex ante probabilities of crashes and jumps.
Findings
The results show that the extent of analyst coverage is positively associated with the ex ante probability of crash and negatively associated with the ex ante probability of jump. The results remain qualitatively the same after several sensitivity checks. The results also show that the relationship between the extent of analyst coverage and the probability of cash and the probability of jump holds when ex post probability of stock price crash and stock price jump is used.
Originality/value
Unlike most of the earlier papers on this topic, this paper uses the ex ante probability of crash and jump. This proxy is better suited than the ones used in the prior literature because it is a forward-looking measure.
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Anita Mendiratta, Shveta Singh, Surendra S. Yadav and Arvind Mahajan
This paper aims to assess the impact of corporate social irresponsibility (CSiR) media coverage on firm performance in India. It also analyses the effects of the environment…
Abstract
Purpose
This paper aims to assess the impact of corporate social irresponsibility (CSiR) media coverage on firm performance in India. It also analyses the effects of the environment, social, governance, and cross-cutting issues on firm performance.
Design/methodology/approach
The paper utilizes a sample of Indian firms from the Reprisk® database, amounting to 1,103 CSiR media coverage counts for 693 firm-year annual observations from 2008 to 2015. Further, Reprisk® segregates comprehensive CSiR coverage counts into the environment, social, governance and cross-cutting issues, for which the study runs the fixed effects panel regression. The study takes year-fixed effects, industry-fixed effects and clustered standard errors at the industry level.
Findings
The results of this study indicate that CSiR coverage negatively influences the firm performance of Indian firms. All issues, including social, governance and cross-cutting, except environmental issues, negatively impact firm value in India.
Practical implications
The involvement of firms in CSiR costs the firms financially and drives down firm performance. Social issues, including community and employee-related matters, governance issues and cross-cutting issues, also reduce the firm performance.
Social implications
The insignificant environmental impact on firm performance does not indicate that environmental issues have no detrimental consequences. Instead, it might need more stakeholders' awareness to understand the harmful implications of environmental issues on society.
Originality/value
Limited studies have explored CSiR in India so far. The study is novel as it analyses the Reprisk® database and its segregation of media counts into the environment, social, governance and cross-cutting issues in the Indian context.
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Ming-Chang Wang, Yu-Feng Hsu and Hsiang-Ying Chien
This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage…
Abstract
Purpose
This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage to influence their stock prices during private equity placement.
Design/methodology/approach
We collect a corpus of news stories and transform the news into term sets based on the part of speech. Then, we refer to Cecchini et al. (2010) to classify the news terms into positive, negative, and usual categories. Next, we employ the SVM algorithm to perform the classification tasks and the term frequency method to perform the text mining task. In last, we use a multiple regression model to verify the hypotheses.
Findings
We determine that issuing firms in a private placement have substantially more positive news stories and fewer negative news stories than those in public offerings. Furthermore, we evidence that the media management effects of postequity issues are more active than those of preequity issues. Finally, our results demonstrate that the timing and content of financial media coverage among different equity issuance methods may be biased by firm management. According to previous studies, they may attempt to manipulate stock prices to increase the number of highly profitable insider stakeholders.
Originality/value
To our knowledge, this is the first study to investigate that if private placement will associate with more active media management than the public offerings. According to our results of the difference-in-means test, the public offerings market may control news coverage; however, this result is inconsistent with that of the regression results. The private placements market may also exercise media management in the “before announcement day” and “after announcement day” periods by increasing positive news and reducing negative news.
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Simly Mukherjee, Amit Nath, Jhantu Mazumder and Sibsankar Jana
This paper aimed to explore the presence of altmetric data across the sub-categories of the medical science discipline and also explore whether the openness of articles results in…
Abstract
Purpose
This paper aimed to explore the presence of altmetric data across the sub-categories of the medical science discipline and also explore whether the openness of articles results in (dis)advantage for altmetrics mentions.
Design/methodology/approach
The research implies data carpentry methods for gathering bibliographic data related to narrow fields of medical science discipline from the Scopus database with at least one Indian author affiliation during 2012–2021. The corresponding data were also collected from three different sources: Altmetric.com, Mendeley.com and Unpaywall.org, using OpenRefine and REST/API calls. Further, the authors observed open access altmetric advantages (OAAA) and categorical OAAA (COAAA) across seven altmetric platforms for all articles as well as discipline-wise.
Findings
The result shows that the overall coverage of altmetric events is still low, but it shows an increasing trend from the past. Mendeley has the largest coverage; almost 97.12% of publications are covered. The health policy discipline has extensive coverage across altmetric platforms (nearly 57.40% of publications in altmetrics and 99.23% in Mendeley), whereas the drug guides has the lowest (almost 0.92% in Altmetrics and 77.05% in Mendeley). Moreover, the OA articles have been highly covered in altmetrics than those of non-OA articles, and bronze OA articles covered mostly compared to others. News registered with the significant OA altmetric advantages across disciplines. Categorically, bronze and hybrid OA have the largest altmetric advantages.
Originality/value
This research is a unique attempt to apply OAAA and COAAA to explore OA altmetric advantages of narrow subject categories of medical science disciplines.
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Saravanan R., Mohammad Firoz and Sumit Dalal
This study aims to empirically investigate the effect of International Financial Reporting Standards (IFRS) convergence on corporate risk disclosure, with a particular emphasis on…
Abstract
Purpose
This study aims to empirically investigate the effect of International Financial Reporting Standards (IFRS) convergence on corporate risk disclosure, with a particular emphasis on the quantity and coverage of risk information. The research also conducts economic benefit and cost analysis to investigate the economic implications that may arise from the transition to IFRS reporting.
Design/methodology/approach
A content analysis approach is used to measure two broader dimensions of risk disclosure, namely, risk disclosure quantity and risk topic coverage. Furthermore, using firm-fixed effect regression on a sample of 143 Indian-listed companies, this study investigates the variations in these risk disclosure dimensions before (2012–2016) and subsequent to (2017–2021) the convergence with IFRS.
Findings
The empirical results of this research demonstrate that IFRS convergence has led to a significant improvement in firms’ risk disclosure across several dimensions. Particularly, during the post-IFRS period, firms’ usage of risk-related words and sentences has considerably surged in MD&A, Notes and whole annual reports. In addition, upon IFRS convergence, firms’ risk descriptions have become more extensive and evenly distributed across risk topic categories. Moreover, the in-depth benefit and cost analysis revealed that firms reporting under IFRS benefit from decreased cost of equity capital, but they also incur a higher cost of audit fees.
Originality/value
This study contributes to the literature in two ways. First, this is the only study, to the best of the authors’ knowledge, to conduct a broader examination of the impact of mandatory IFRS convergence on corporate risk disclosure, with a major focus on quantity and coverage of risk information. Second, by conducting economic benefit and cost analysis, this study provides novel insights into the critical role of IFRS risk disclosures toward multiple economic outcomes.
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Laurens Swinkels and Thijs Markwat
To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has…
Abstract
Purpose
To better understand the impact of choosing a carbon data provider for the estimated portfolio emissions across four asset classes. This is important, as prior literature has suggested that Environmental, Social and Governance scores across providers have low correlation.
Design/methodology/approach
The authors compare carbon data from four data providers for developed and emerging equity markets and investment grade and high-yield corporate bond markets.
Findings
Data on scope 1 and scope 2 is similar across the four data providers, but for scope 3 differences can be substantial. Carbon emissions data has become more consistent across providers over time.
Research limitations/implications
The authors examine the impact of different carbon data providers at the asset class level. Portfolios that invest only in a subset of the asset class may be affected differently. Because “true” carbon emissions are not known, the authors cannot investigate which provider has the most accurate carbon data.
Practical implications
The impact of choosing a carbon data provider is limited for scope 1 and scope 2 data for equity markets. Differences are larger for corporate bonds and scope 3 emissions.
Originality/value
The authors compare carbon accounting metrics on scopes 1, 2 and 3 of corporate greenhouse gas emissions carbon data from multiple providers for developed and emerging equity and investment grade and high yield investment portfolios. Moreover, the authors show the impact of filling missing data points, which is especially relevant for corporate bond markets, where data coverage tends to be lower.
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