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1 – 10 of over 2000Ji Yu, Zabihollah Rezaee and Joseph H. Zhang
Jumpstart Our Business Startups Act 2012 (the JOBS Act) was passed in 2012. JOBS Act enables emerging growth companies (EGCs) to go public without being subject to the full…
Abstract
Purpose
Jumpstart Our Business Startups Act 2012 (the JOBS Act) was passed in 2012. JOBS Act enables emerging growth companies (EGCs) to go public without being subject to the full vigorous range of regulations applicable to publicly traded companies. The purpose of this paper is to study financial performance, Tobin’s Q-ratio and value relevance of EGCs.
Design/methodology/approach
The sample includes 620 IPOs during the period from April 5, 2009 to April 5, 2015. The analyses use firm-quarter observations.
Findings
The results show that EGCs have both lower financial performance, and a lower Tobin’s Q-ratio compared to the financial performance and Tobin’s Q-ratio of non-EGCs. Moreover, the value relevance of accounting information for EGCs is lower than the value relevance of accounting information for non-EGCs.
Originality/value
This study contributes to the accounting regulation literature by documenting the inferior market performance and financial information quality of EGCs, i.e., the unintended consequences of the JOBS Act.
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The purpose of this study is to examine the impact of goodwill impairment losses on bond credit ratings.
Abstract
Purpose
The purpose of this study is to examine the impact of goodwill impairment losses on bond credit ratings.
Design/methodology/approach
The authors use regression analysis to examine the relationship between goodwill impairment losses and bond credit ratings.
Findings
The empirical results show a negative relationship between the amount of goodwill impairment losses and bond credit ratings, suggesting that firms with goodwill impairment losses receive lower credit ratings. The authors perform various additional tests, including subsamples in good or bad market time, changes analysis, first time goodwill impairment firms vs subsequent impairment and the two-stage least squares regression analysis to address potential endogeneity issues. The main results persist.
Originality/value
This paper links and contributes to two streams of literature: goodwill impairment in accounting literature and bond credit ratings in finance literature. Whether a firm’s goodwill impairment losses affect the firm’s bond credit rating remains an interesting question that has not been examined previously. To the best of the authors’ knowledge, this is the first study that directly examines the relationship between goodwill impairment losses and bond ratings at the firm level.
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Emily Breit, Xuehu (Jason) Song, Li Sun and Joseph Zhang
This paper aims to examine how Chief Executive Officer (CEO) power affects firm-level labor productivity.
Abstract
Purpose
This paper aims to examine how Chief Executive Officer (CEO) power affects firm-level labor productivity.
Design/methodology/approach
The authors rely on regression analysis to examine the relation between CEO power and labor productivity.
Findings
Following prior research (i.e. the sequential rank order tournament theory), the authors predict that powerful CEOs lead to high labor productivity. They find a significant and positive relationship between CEO power and labor productivity. They further decompose labor productivity into labor efficiency and labor cost components and find a positive (negative) relationship between CEO power and labor efficiency (cost) component, suggesting that more powerful CEOs better manage labor efficiency and control labor cost. The results are also robust to various additional tests.
Originality/value
This study contributes to two streams of research: the CEO power literature in finance and the labor productivity and cost literature in accounting. To the best of the authors’ knowledge, it is the first study that performs a direct empirical test on the relation between CEO power and labor productivity.
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Elio Alfonso, Li-Zheng Brooks, Andrey Simonov and Joseph H. Zhang
The purpose of this paper is to examine the impact of career concerns on CEOs’ use of expectations management to meet or beat analysts’ quarterly earnings forecasts. The authors…
Abstract
Purpose
The purpose of this paper is to examine the impact of career concerns on CEOs’ use of expectations management to meet or beat analysts’ quarterly earnings forecasts. The authors posit that early career-stage CEOs are less (more) likely to use expectations management than are late career-stage CEOs if the market views expectations management as an opportunistic strategy (efficient process) due to reputational capital concerns.
Design/methodology/approach
The authors obtain data for CEO career stages and CEO compensation from ExecuComp, analyst earnings forecasts from the detailed I/B/E/S database, financial statement data from quarterly Compustat and stock returns from the daily CRSP database over the period 1992–2013.
Findings
The results are consistent with the opportunistic hypothesis and early-stage CEOs seeking to build reputational capital by avoiding the perception of engaging in an inefficient managerial strategy. The authors find robust evidence that late career-stage CEOs are more likely to engage in expectations management than early career-stage CEOs. Furthermore, the authors show that late career-stage CEOs tend to employ expectations management to boost the value of their equity-based compensation.
Research limitations/implications
The findings have important implications because the authors document a different implication of the “horizon problem” related to CEOs’ opportunistic forecasting behavior and the manipulation of analysts’ forecasts for CEOs who are approaching retirement.
Practical implications
The results have practical implications for analysts who provide earnings forecasts for firms whose CEOs are in early or late career stages and for investors who use such analysts’ forecasts in firm valuation models.
Originality/value
The authors contribute to the literature on expectations management by documenting how reputational incentives of CEOs affect the likelihood that managers engage in expectations management. The authors show that an important managerial incentive to engage in expectations management is CEO career concerns. Furthermore, the authors show that CEOs who are in early stages of their careers choose not to engage in expectations management due to the market’s perceived degree of opportunism pertaining to this strategy.
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The author discusses the paper by Ordyna (2020) and suggests a few areas for improvement. First, the author could think more about the financing scheme of the acquisition…
Abstract
Purpose
The author discusses the paper by Ordyna (2020) and suggests a few areas for improvement. First, the author could think more about the financing scheme of the acquisition including hybrid debt securities. Second, the author could consider forecast reputation, the timing and frequency of earnings guidance. Third, the author may consider the difference-in-differences research design and identification strategy. Other model designs, robustness checks and alternative measures of key variables are discussed.
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Jaskirat Singh Rai, Anish Yousaf, Maher N. Itani and Amanpreet Singh
This study aims to examine the influence of five sports celebrity personality (SCP) attributes – attractiveness, expertise level, credibility, trustworthiness and character – on…
Abstract
Purpose
This study aims to examine the influence of five sports celebrity personality (SCP) attributes – attractiveness, expertise level, credibility, trustworthiness and character – on consumers' purchase intentions (CPI). It identifies celebrity brand congruence (CBC), endorsed brand celebrity (EBC) and transfer of brand image (TBI) as antecedents of CPI.
Design/methodology/approach
The purposive sampling technique was used to collect the data from 838 respondents. This study developed a multidimensional construct for SCP. The covariance-based structural equation modeling (SEM) technique was used to examine the relationship between SCP and the endorsed brand. The study used CBC as a mediator and EBC and TBI as partial mediators. The direct and indirect effect of SCP on CPI was investigated using CBC, EBC and TBI as mediators.
Findings
This study supports the importance of three antecedents (i.e. CBC, EBC and TBI) on CPI. It finds congruence across SCP and CBC variables, and a positive impact of SCP on EBC and TBI variables. Also, it exhibits a significant direct effect of CBC on EBC and TBI, whereas the direct effect of CBC on CPI is not substantial. The indirect effect of CBC through mediating variables EBC and TBI found to be significant.
Research limitations/implications
This study concludes that sports celebrity endorsement is essential to transfer the positive celebrity image to the endorsed brand image. However, it is not merely sufficient to influence the buyers' purchase conduct; the brand credibility additionally assumes to take a role in changing their behavioral intentions.
Originality/value
This study contributes to the sports marketing literature by its novelty in analyzing the sports celebrity personality at a multidimensional level. It uses SCP's different attributes as one construct and studies its impact on CPI by taking CBC, EBC and TBI as mediators. The results of this study equip sports management professionals with the knowledge to build better long-term relationships with consumers.
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Lizhong Hao, Joseph H. Zhang and Jing (Bob) Fang
The paper aims to examine whether or not firms voluntarily filing in XBRL (eXtensible Business Reporting Language) format enjoy a lower cost of capital. XBRL, or “interactive…
Abstract
Purpose
The paper aims to examine whether or not firms voluntarily filing in XBRL (eXtensible Business Reporting Language) format enjoy a lower cost of capital. XBRL, or “interactive data” as the US Securities and Exchange Commission refers to it, is an information format that enables electronic exchange of standardized business and financial information.
Design/methodology/approach
The authors investigate whether voluntary adoption of XBRL impacts cost of equity capital using a sample of US firms participated in the SEC Voluntary Filer Program, each matched with a pair of non-XBRL filers (matched by two-digit SIC code, same fiscal yearend, and close total assets in the same year). The authors measure firm-specific cost of equity capital at the fiscal year of last voluntary XBRL filing, using the PEG ratio model proposed by Easton, Gode and Mohanram, and Hou et al.
Findings
The results show that cost of equity capital is significantly and negatively associated with XBRL adoption. The magnitude of the coefficient on XBRL suggests that firms voluntarily adopting XBRL are associated with an average reduction in cost of equity capital by 17-20 basis points (conditional on different cost of capital measures).
Research limitations/implications
There is a research limitation due to the sample of voluntary XBRL adopters as of self-selection bias. The authors address this issue by using the Heckman two-stage regression procedure.
Practical implications
The study provides evidence on the economic consequence of XBRL adoption in that it benefits shareholders by reducing the cost of equity capital. The evidence should provide regulators like the SEC more incentives to mandate the XBRL standard and motivate companies to adopt the standard as well.
Originality/value
By showing that voluntary XBRL adopters are associated with lower cost of equity capital, the study provides timely and relevant empirical evidence to the economic consequences of voluntary adoption of XBRL. It also contributes to the limited empirical research on the economic consequences of new information technology and highlights the importance of institutional regulation in shaping the outcomes of new financial reporting format.
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To provide information about latest product developments to address and take away the fear of whisker formation on pure immersion tin surface finishes on PCBs.
Abstract
Purpose
To provide information about latest product developments to address and take away the fear of whisker formation on pure immersion tin surface finishes on PCBs.
Design/methodology/approach
This paper summarises the latest findings on whisker formation of pure tin surface finishes and describes an effective methodology for whisker suppression in combination with other benefits for the use of this new immersion tin generation.
Findings
Whisker formation is a typical feature of pure tin when coated, e.g. on copper and is a threat to the PCB industry, because of the risks of shortcuts involved. The main driving force for whiskers is an accumulation of internal stress created by diffusion at the boundary of copper and tin. A nano layer deposited from an organic metal‐based pre‐dip significantly reduces the diffusion by creating a unique sandwich layer with smooth concentration gradients. A drastic reduction of diffusion and stress was found, eliminating the driving force for whisker formation and prolonging the layer's shelf life and temperature stability at the same time.
Practical implications
Whenever whisker formation on immersion tin is regarded as a potential risk, e.g. by OEMs, a whisker‐reduced process is available and should be chosen to meet the market's specifications.
Originality/value
This paper takes the edge off the whisker threat discussions, leading to a hesitant implementation of immersion tin surface finish technology for PCBs, which disregard its excellent features with respect to future lead‐free soldering. Whisker‐reduced immersion tin is a viable and preferable alternative solderable surface finish for the lead‐free era.
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In a conventional finite element analysis, material properties, dimensions and applied loads are usually defined as deterministic quantities. This simplifying assumption however…
Abstract
In a conventional finite element analysis, material properties, dimensions and applied loads are usually defined as deterministic quantities. This simplifying assumption however, is not true in practical applications. Using statistics in engineering problems enables us to consider the effects of the input variables dispersion on the output parameters in an analysis. This provides a powerful tool for better decision making for more reliable design. In this paper, a probabilistic based design is presented which evaluates the sensitivity of a mechanical model to random input variables. To illustrate the effectiveness of this method, a simple bracket is analyzed for stress‐strain behavior using commercially available finite element software. Young’s modulus, applied pressure and dimensions are considered as random variables with Gaussian distribution and their effects on maximum stress and displacement is evaluated. The finite element results are compared with reliability based theoretical results which show very good agreement. This demonstrates the capability of commercially available software to handle probabilistic approach design.
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