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This study examines the effect of stock liquidity on the magnitude of the accrual anomaly.

This paper examines the relation—both time-series and cross-sectional—between stock liquidity and the magnitude of the accrual anomaly and use the 2001 minimum tick size decimalization as a quasi-experiment to establish causality.

There is both cross-sectional and time-series evidence that stock liquidity is negatively related to the magnitude of the accrual anomaly. Moreover, the extent to which investors overestimate the persistence of accruals decreases with stock liquidity. Results from a difference-in-differences analysis conducted using the 2001 minimum tick size decimalization as a quasi-experiment suggest that the effect of stock liquidity on the accrual anomaly is causal. The findings of this study are consistent with the enhancing effect of stock liquidity on pricing efficiency.

The study's findings are well aligned with the mispricing-based explanation for the accrual anomaly, suggesting that the improvement in market-wide stock liquidity drives the contemporaneous decline in the magnitude of the accrual anomaly, at least to a great extent.

This paper examines the relationship between poison pills, real earnings management and initial public offering (IPO) failure.

The authors sampled 2,997 IPO firms that went public during 1993-2015.

The authors find that IPO firms manipulate earnings upward using real earnings management. The authors also find that IPO firms exhibiting a higher level of real earnings management have a higher probability of IPO failure. In addition, the authors find that weak shareholders' governance is positively associated with IPO failure.

These results suggest that poor governance structures in failed firms open the door to manipulating real activities and increasing operational risk.

The study findings are of most significant interest to potential investors and other stakeholders affiliated with a firm going public, an auditor, an underwriter, the lawyers who consult with the firm and employees or executives who might consider joining that firm.

The theory presented suggests that underwriters are both advisors and independent agents in the issuerʼs attempt to send “signals” of quality to investors by making pre-IPO organizational changes. These pre-IPO gambits are intended to increase IPO proceeds, and preemptively address potential investor concerns that would deter them from subscribing. These organizational changes initially can financially benefit founders, early investors and underwriters. But they can also have a longterm impact that some issuers, especially founders, would prefer to avoid. Utilizing signaling and resource-based power, we find that underwriter power is significantly associated with making pre-IPO gambits and lower levels of underpricing.

Social media influencers (SMIs) have become an important source of influence that affects consumer behaviours in their decision-making processes. As such, this justifies scholarly attention in understanding how SMIs transfer their meanings to endorsed brands and drive consumers’ positive behavioural intentions. With the intention to fill this knowledge gap, this paper aims to examine the impact of SMIs’ credibility, as manifested by trustworthiness, attractiveness and expertise, along with the moderating effects of materialism, on followers’ purchase intention.

Self-administrated online surveys were used to collect data from Instagram users. A total of 191 usable data were collected and analysed using partial least square structural equation modelling.

The results show that SMIs’ trustworthiness and expertise are significant predictors of followers’ purchase intention. Moreover, the moderating effect of materialism on the relationship between attractiveness and purchase intention is significant. Notably, the influence of attractiveness on purchase intention is greater when materialism is high.

This research contributes to the SMI literature by examining the influence of SMIs’ trustworthiness, attractiveness and expertise, along with the moderating effect of materialism, on followers’ purchase intention.

This study examines the relation between the presence of analysts’ long-term growth (LTG) forecasts and the post-earnings-announcement drift (PEAD).

Using a sample of firm-quarters from 1995 to 2013, the author conducts various regression analyses.

The author finds that the magnitude of PEAD is significantly smaller for firms with LTG forecasts. The relationship holds after controlling for a wide range of explanatory variables for PEAD returns or for the presence of LTG forecasts. The author further investigates three nonexclusive hypotheses to explain this relationship. First, LTG forecasts may convey incremental value-relevant information that facilitates investors’ processing of short-term earnings information. Second, the presence of LTG forecasts may indicate superiority in analysts’ short-term forecast ability and identify firms with more efficient short-term forecasts. Third, the presence of LTG forecasts may be associated with cross-sectional differences in the persistence of earnings surprises. The author finds that none of these fully accounts for the negative relationship between the presence of LTG forecasts and PEAD returns. Instead, the relationship may be a result of the presence of LTG forecasts capturing some unobservable firm characteristics beyond those identified in prior studies.

This study contributes to the PEAD literature by identifying a novel analyst-based predictor of the cross-sectional variation in PEAD returns.

The purpose of this paper is to explore the effective taxonomies of airline green operations strategy.

To this end, a sample of 23 airlines from five regions (North America, South America, Europe, Asia and the Middle East) was surveyed. The annual sustainability reports of the surveyed airlines for the period 2013‒2016 were retrieved from the Global Reporting Initiatives website. K-means clustering analysis was used to generate taxonomic clusters of airline green operations strategy. A special data analysis technique, called rank analysis, was also adopted to identify the significant green actions and develop indicative models.

This study revealed that three effective taxonomies were adopted by airlines: a low-effect strategic pattern, a low-to-moderate effect strategic pattern and a high-effect strategic pattern. A different combination of green operation actions characterized each strategic pattern.

The research contribution of taxonomies of green operations strategy has so far been limited, country focused and concentrated on the manufacturing sector. This study reported the taxonomies and performed an in-depth analysis of the categories of effective actions taken to promote green performance. Moreover, this study developed indicative models for the relationship between categories of action and green performance for each strategic pattern, an action that has seldom been reported by previous studies of green operations strategies for airlines.

This study aims to focus on the development of an experimental setup for testing tribological pairings under a gas atmosphere at pressures up to 10 bar.

A pressure chamber allowing oscillating movement through an outer shaft was constructed and mounted on an oscillating tribometer. Due to a metal spring bellows system, a methodology for the evaluation of the coefficient of friction values separately from the spring forces was developed.

The selected material concept was qualitatively and quantitatively assessed. An evaluation of the static and the dynamic coefficient of friction was performed, which was crucial for the understanding of the adhesion effects of the tested material pairing. The amount of information that is lost due to averaging the measured friction values is higher than one would expect.

The developed experimental setup is unique and, compared with the existing tribometers for testing under gas ambient pressures, allows testing under contact conditions that are closer to real applications, such as compressors and expanders. An in-depth observation of the adhesion and stick–slip effects of the tested material pairings is possible as well.

The peer review history for this article is available at: https://publons.com/publon/10.1108/ILT-06-2023-0173/

The purpose of this study is to examine the moderating role of the characteristics of the chief executive officer (CEO) on the association between CEO power and corporate social responsibility (CSR) performance.

This paper conducts multiple regression analyses to empirically test the proposed hypotheses based on a sample of US-based publicly held companies. The sample period extends from 2000 to 2018. Firm-level CSR ratings are obtained from the Kinder, Lydenberg and Domini (KLD) database (currently known as MSCI ESG STATS). Financial data and CEO data are retrieved from Compustat and ExecuComp databases, respectively. Additional test and robustness analysis are performed.

This paper shows that firms with more powerful CEOs are less likely to engage in CSR activities. The negative association between CEO power and CSR is found to be exacerbated by CEOs who are younger, more competent and overconfident; however, this negative association is mitigated by CEOs who are female. This paper also finds that gender plays a more important role among CEO characteristics. Collectively, the findings highlight the potential opportunities to better understand the role of various CEO characteristics that jointly affect CSR.

First, this is the first study providing a comprehensive empirical analysis of how various CEO characteristics jointly affect CSR. Prior studies that focus on standalone CEO characteristics offer an incomplete picture of the relation between a single CEO characteristic and a firm's CSR performance. The current study thus extends the research field by examining the association between seemingly unrelated CEO characteristics and CSR performance. The results also highlight that gender is the critical factor moderating the relationship between CEO power and CSR performance when it is compared with CEO age, ability and overconfidence. Second, the authors add to the literature on employee selection by showing that female CEOs mitigate the negative effect of managerial power on CSR performance. Although the currently available empirical research in management control systems focuses on ex-post analyses of moral hazard mitigation for incumbent employees, both the economics and management literature acknowledge ex ante evidence suggesting that employee selection is even more important. Our findings may provide insight into the selection of CEOs.