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We highlight two mechanisms of limited attention for expert information intermediaries, i.e., analysts, and the effects of such limited attention on the market price discovery process. We approach analysts' limited attention from the perspective of day-to-day arrival of information and processing of tasks. We examine the attention-limiting role of competing tasks (number of earnings announcements and forecasts for portfolio firms) and distracting events (number of earnings announcements for non-portfolio firms) in analysts' forecast accuracy and the effects of such, on the subsequent price discovery process. Our results show that competing tasks worsen analysts' forecast accuracy, and competing task induced limited attention delays the market price adjustment process. On the other hand, distracting events can improve analysts' forecast accuracy and accelerate market price adjustments when such events relate to analysts' portfolio firms through industry memberships.

The purpose of this study is to examine how auditors would react when there are exogenous negative shocks to their client portfolios.

Using a sample of 31,256 firm-year observations (2001–2016), the authors investigate whether industry shocks to a subset of an auditor’s clients distract the auditor and affect the professional skepticism applied in the audits of other clients.

The authors find that clients of distracted auditors are more likely to meet or beat analyst consensus forecasts, suggesting that auditors’ professional skepticism is compromised by distractive events. The cross-sectional analyses reveal that the negative impact of the distractive events on audit quality is more pronounced when the distracted auditors audit less important clients, face lower third-party legal liabilities and experience higher growth. Using an alternative measure of audit quality, the additional analysis shows that clients of distracted auditors exhibit a higher probability of restating their earnings in subsequent years. Overall, the empirical evidence suggests that when distracted, auditors render lower quality audit.

The study complements recent work by Cassell et al. (2019), which shows that the 2008–2009 financial crisis affected the quality of the audits of nonbank clients of bank-specialized auditors. While Cassell et al. (2019) focus on one shock (financial crisis) to one industry (i.e. the financial services industry), the study examines more frequent shocks over a wide range of industries to identify the potential effects of distractive events, improving the generalizability of the findings to all industries and all auditors (specialist and nonspecialist) in nonrecession periods.

The purpose of this paper is to characterize distracted driving by quantifying the response time and response intensity to an emergency stop using the driver’s physiological states.

Field tests with 17 participants were conducted in the connected and automated vehicle test field. All participants were required to prioritize their primary driving tasks while a secondary nondriving task was asked to be executed. Demographic data, vehicle trajectory data and various physiological data were recorded through a biosignalsplux signal data acquisition toolkit, such as electrocardiograph for heart rate, electromyography for muscle strength, electrodermal activity for skin conductance and force-sensing resistor for braking pressure.

This study quantified the psychophysiological responses of the driver who returns to the primary driving task from the secondary nondriving task when an emergency occurs. The results provided a prototype analysis of the time required for making a decision in the context of advanced driver assistance systems or for rebuilding the situational awareness in future automated vehicles when a driver’s take-over maneuver is needed.

The hypothesis is that the secondary task will result in a higher mental workload and a prolonged reaction time. Therefore, the driver states in distracted driving are significantly different than in regular driving, the physiological signal improves measuring the brake response time and distraction levels and brake intensity can be expressed as functions of driver demographics. To the best of the authors’ knowledge, this is the first study using psychophysiological measures to quantify a driver’s response to an emergency stop during distracted driving.

Concentration is the key to safer driving. Ideally, drivers should focus mainly on front views and side mirrors. Typical distractions are eating, drinking, cell phone use, using and searching things in car as well as looking at something outside the car. In this paper, distracted driving detection algorithm is targeting on nine scenarios nodding, head shaking, moving the head 45° to upper left and back to position, moving the head 45° to lower left and back to position, moving the head 45° to upper right and back to position, moving the head 45° to lower right and back to position, moving the head upward and back to position, head dropping down and blinking as fundamental elements for distracted events. The purpose of this paper is preliminary study these scenarios for the ideal distraction detection, the exact type of distraction.

The system consists of distraction detection module that processes video stream and compute motion coefficient to reinforce identification of distraction conditions of drivers. Motion coefficient of the video frames is computed which follows by the spike detection via statistical filtering.

The accuracy of head motion analyzer is given as 98.6 percent. With such satisfactory result, it is concluded that the distraction detection using light computation power algorithm is an appropriate direction and further work could be devoted on more scenarios as well as background light intensity and resolution of video frames.

The system aimed at detecting the distraction of the public transport driver. By providing instant response and timely warning, it can lower the road traffic accidents and casualties due to poor physical conditions. A low latency and lightweight head motion detector has been developed for online driver awareness monitoring.

This study aims to explore whether investors’ inattention is associated with firms’ environmental, social and governance (ESG) decoupling, which is defined as the misalignment between the implementation and incorporation of ESG policies.

Focusing on a sample of the components of ESG ratings for China Securities Index (CSI) 300 companies between 2017 and 2019, the authors test the relationship between firms’ ESG decoupling level and mutual fund investors’ distraction by applying exogenous shocks to their portfolios.

The results show that firms with distracted mutual fund investors engage in more external than internal ESG actions, leading to a high ESG decoupling level. Mutual fund investors use “threat of exit” rather than “voice” as a governance mechanism to influence corporate ESG decoupling. While external ESG actions mitigate stock price crash risk, internal ESG actions increase firm value; firms with a high ESG decoupling level suffer lower valuations.

This study has implications for increasing the congruence between firms’ external and internal ESG actions, thereby improving firms’ ESG performance and long-term economic outcomes.

This paper helps policy-makers and regulators to reassess how ESG policies can be implemented to be consistent with organizations’ core business activities.

Contributing to prior studies of greenwashing and corporate social responsibility decoupling, this paper extends decoupling literature by revisiting ESG impacts in an integrated framework and explores the antecedents of corporate ESG decoupling from the perspective of institutional investor monitoring.

The customer retail experience is frequently interrupted by disturbances such as ringing phones and other people. Employees must be able to respond to retail disturbances effectively to ensure that customers have a satisfactory experience in the retailer. Using Affective Events Theory as a framework, the purpose of this paper is to develop and test a model for understanding how retail disturbances affect customers outcomes and how retail employee response mitigates the negative impact of retail disturbances.

The model was tested using a pre-study of retail managers and consumers, a survey study and four experimental studies.

Retail disturbances reduce interactional justice and customer positive emotions. Customers pay attention to how employees address retail disturbances, even when they are not directly involved.

The research experiments focus on sound-based disturbances. Other stimuli (e.g. olfactory or visual) should be examined in more detail.

Employees can mitigate the negative effects of retail disturbances on customers with a positive response to the disturbance and to customers. Employee responses influence customers currently receiving service and nearby shoppers.

The findings demonstrate the deleterious effect of solicitation calls on small retailers and provide recommendations for reducing solicitation calls.

This research shows that retail disturbances reduce customer outcomes, employee response becomes part of the disturbance event, and that it is possible for employees to address a group of nearby customers indirectly through unintentional observation.

This paper aims to explore the role of surprise in reducing the negative impact of an undesired emotion, such as embarrassment, on the attitudes and behavioral intentions of consumers taking part in an event.

In total, 220 consumers took part in a pre-test/post-test quasi-experimental within-subject design. Data were analyzed using structural equation modeling.

Findings show that an in-store social event designed to elicit young customers’ surprise and feelings of romantic love might also give rise to a relevant negative emotion such as embarrassment, and that surprise can act as a powerful managerial tool in limiting the negative effects of this negative emotion. Moreover, brand attitude and purchase intention are outcomes of positive emotions elicited by the event.

The study shows that event marketing is an appealing but risky strategy. Evoking surprise is an effective way to manage negative emotions such as embarrassment that can arise unintentionally during an event.

The research contributes to the understanding of the role of contradictory emotions in a specific social experience, namely, the event, and focuses on unplanned and undesired the affective contributions of customers.