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1 – 10 of 214Wang Dong, Weishi Jia, Shuo Li and Yu (Tony) Zhang
The authors examine the role of CEO political ideology in the credit rating process.
Abstract
Purpose
The authors examine the role of CEO political ideology in the credit rating process.
Design/methodology/approach
This study adopts a quantitative method with panel data regressions using a sample of 5,211 observations from S&P 500 firms from 2001 to 2012.
Findings
The authors find that firms run by Republican-leaning CEOs, who tend to have conservative political ideologies, enjoy more favorable credit ratings than firms run by Democratic-leaning CEOs. In addition, the association between CEO political ideology and credit ratings is more pronounced for firms with high operating uncertainty, low capital intensity, high growth potential, weak corporate governance and low financial reporting quality. Finally, the authors find that CEO political ideology affects a firm's cost of debt incremental to credit ratings, consistent with debt investors incorporating CEO political ideology in their pricing decisions.
Research limitations/implications
Leveraging CEO political ideology, the authors document that credit rating agencies incorporate managerial conservatism in their credit rating decisions. This finding suggests that CEO political ideology serves as a meaningful signal for managerial conservatism.
Practical implications
The study suggests that credit rating agencies incorporate CEO political ideology in their credit rating process. Other capital market participants such as auditors and retail investors can also use CEO political ideology as a proxy for managerial conservatism when evaluating firms.
Social implications
The paper carries practical implications for practitioners, firm executives and regulators. The results on the association between CEO political ideology and credit ratings suggest that other financial institutions could also incorporate CEO political ideology in their evaluation in their evaluation of firms. For example, when evaluating audit risk and determining audit pricing, auditors may add CEO political ideology as a risk factor. For firms, especially those that have Democratic-leaning CEOs, the authors suggest that they could reduce the unfavorable effect of CEO political ideology on credit ratings by improving their corporate governance and financial reporting quality, as demonstrated in the cross-sectional analyses. Finally, this study shows that CEO political ideology, as measured by CEOs' political contributions, is closely related to a firm's credit ratings. This finding may inform regulators that greater transparency for CEOs' political contributions is needed as information on contributions could help capital market participants perform risk analyses for firms.
Originality/value
Credit rating agencies release their research methodologies for determining corporate credit ratings and identify managerial conservatism as an important factor that affects their risk assessments. The extant literature, however, has not empirically investigated the relation between credit ratings and managerial conservatism, which, according to behavioral consistency theory, can be proxied by CEO political ideology. This study provides novel empirical evidence that identifies CEO political ideology as an important input factor in the credit rating process.
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Hyehyun Kim, Sylvia Chan-Olmsted and Huan Chen
This study explores information behavior and perception and vaccination among America's three largest ethnic minorities, Hispanic, Black/African American and Asian, in COVID-19…
Abstract
Purpose
This study explores information behavior and perception and vaccination among America's three largest ethnic minorities, Hispanic, Black/African American and Asian, in COVID-19 context. Information behavior and perception are investigated from cultural and demographic characteristics, while vaccination is explored from COVID-19 related information behavior and utility/value of COVID-19 vaccine information.
Design/methodology/approach
Using Qualtrics survey panel, a national survey of America's Hispanic, Black/African American and Asian population was conducted to better understand the impact of cultural and demographic factors on COVID-19 related information. Data were collected in Fall 2021. Multiple and logistic regression were conducted to analyze data.
Findings
Results show that cultural factors (i.e. cultural identity, social identity, social capital and religiousness) exert significant impact on information value and seeking across all three minority groups, while some demographic factors, Republicanism and age, also significantly predict COVID-19 related information seeking and value for Black/African Americans and Hispanics, but less for Asian Americans. Lastly, information value was found to significantly predict vaccine status, willingness and eagerness, the three facets of vaccination as conceptualized in this study, for top three racial/ethic minorities.
Originality/value
The finding of this study reveal that there are variations in terms of the level and type of attachment to one's culture/social group in COVID-19 informational context. Between the three groups, granular differences were observed regarding the relationship between cultural factors and perceived COVID-19 information value. While cultural identity is most associated with African Americans, social capital is most evident for the Asian Americans, but social identity was the strongest predictor among Hispanics. Thus, this study offers important strategic insights into a unique population sample to better understand the impact of COVID-19 related information perception and vaccination implication.
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Claire Nolasco Braaten and Lily Chi-Fang Tsai
This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial…
Abstract
Purpose
This study aims to analyze corporate mail and wire fraud penalties, using bounded rationality in decision-making and assessing internal and external influences on prosecutorial choices.
Design/methodology/approach
The study analyzed 467 cases from 1992 to 2019, using data from the Corporate Prosecution Registry of the University of Virginia School of Law and Duke University School of Law. It examined corporations facing mail and wire fraud charges and other fraud crimes. Multiple regression linked predictor variables to the dependent variable, total payment.
Findings
The study found that corporate penalties tend to be lower for financial institutions or corporations in countries with US free trade agreements. Conversely, penalties are higher when the company is a U.S. public company or filed in districts with more pending criminal cases.
Originality/value
This study’s originality lies in applying the bounded rationality model to assess corporate prosecutorial decisions, unveiling external factors’ influence on corporate penalties.
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Effectively confirming Trump as the presumptive Republican nominee, the New Hampshire result starts a general election campaign that will see Trump and President Joe Biden…
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DOI: 10.1108/OXAN-DB284812
ISSN: 2633-304X
Keywords
Geographic
Topical
The speaker is the most important officeholder in the legislative branch. Having the role vacant since October 3 -- a result of Republican party in-fighting and the party’s…
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DOI: 10.1108/OXAN-DB282869
ISSN: 2633-304X
Keywords
Geographic
Topical
US presidential primary elections have calendars and rules that change from one cycle to the next. For Republicans in 2024, changes designed to benefit Trump may allow him to wrap…
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DOI: 10.1108/OXAN-DB284042
ISSN: 2633-304X
Keywords
Geographic
Topical
The IRA unabashedly uses major government subsidies to attract corporate investment, with an emphasis on advanced manufacturing and clean energy. It is emerging as a central…
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DOI: 10.1108/OXAN-DB283316
ISSN: 2633-304X
Keywords
Geographic
Topical
Biden will request USD2bn in additional military aid to Israel following the Hamas attacks, and is expected to tie this to a broader emergency assistance package that would unlock…
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DOI: 10.1108/OXAN-DB282706
ISSN: 2633-304X
Keywords
Geographic
Topical
Ozge Kozal, Mehmet Karacuka and Justus Haucap
In this study the authors aim to comprehensively investigate the determinants of voting behavior in Turkey, with a specific focus on the dynamics of the center-periphery debate…
Abstract
Purpose
In this study the authors aim to comprehensively investigate the determinants of voting behavior in Turkey, with a specific focus on the dynamics of the center-periphery debate. Mainly, the authors focus on regional voting patterns during the period that is dominated by the Justice and Development Party (JDP/AKP) in the elections. The authors apply the random effects generalized least squares (GLS) methodology, and analyze electoral data covering four pivotal parliamentary elections (2007, 2011, 2015 and 2018) across all 81 provinces (NUTS III regions). The authors individually examine voting dynamics of the four major parties in parliament: the JDP/AKP, the Republican People's Party (RPP/CHP), the Nationalist Movement Party (NMP/MHP) and the Peoples' Democratic Party (PDP/HDP). The authors contribute to a comprehensive understanding of how socioeconomic cleavages, economic performance, party alignment and social dynamics shape voter preferences in the Turkish context, thereby addressing gaps in the existing literature.
Design/methodology/approach
This research employs an ecological study of Turkish NUTS III sub-regions, covering national elections from 2007 to 2018. The authors utilize the random effects GLS method to account for heteroscedasticity and time effects. The inclusion of the June and November 2015 elections enables a comprehensive analysis of the evolving dynamics in Turkish voting behavior. The results remain robust when applying pooled OLS and fixed effect OLS techniques for control.
Findings
The study's findings reveal that economic performance, specifically economic growth, plays a pivotal role in the sustained dominance of the JDP/AKP party. Voters closely associate JDP preference with economic growth, resulting in higher voting shares during periods of economic prosperity. Along with economic growth; share of agriculture in regions' GDP, female illiteracy rate, old population rate, net domestic migration, terrorism and party alignment are also influential factors in the Turkish case. Furthermore, differences among sociocultural groups, and East–West dichotomy seem to be important factors that reveal the impact of social cleavages to understand electoral choice in Turkey.
Originality/value
This study contributes to the existing literature by offering a comprehensive multidimensional analysis of electoral behavior in Turkey, focusing on the JDP/AKP dominance period. The main contribution of this study is its multidimensional perspective on the power bases of all main parties, considering key voter choice theories (cleavages, party alignment and retrospective economic performance voting) that have not been systematically analyzed in prior research. The main research question of this study is to examine which factors affect voting behavior in Turkey and how the dynamics of center-periphery or eastern-western region voting behavior under the JDP hegemony can be explained. The contribution of this study consists not only in its empirical testing of panel data approaches but also in its comprehensive analysis of four major political parties. Building upon existing studies in the literature, this research seeks to extend the understanding of voting dynamics for the four main parties in the parliament — JDP/AKP, RPP/CHP, NMP/MHP and PPDP/HDP — by delving into their dynamics individually, thereby expanding the scope of previous studies. This study aims to make a contribution by not only empirically testing panel data approaches but also conducting a comprehensive analysis of four major political parties. Furthermore, the separate inclusion of the 2015 elections and utilization of a panel data approach enrich the analysis by capturing the evolving dynamics of Turkish voting behavior. The study underscores the significance of socioeconomic factors, economic performance and social cleavages for voters' choices within the context of a dominant party rule.
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UNITED STATES: Military promotion ban ended