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1 – 10 of 16Julie Stubbs, Sophie Russell, Eileen Baldry, David Brown, Chris Cunneen and Melanie Schwartz
Prior studies generally focus on income smoothing through discretionary accruals and document that managers have incentives to smooth earnings due to various reasons. This paper…
Abstract
Purpose
Prior studies generally focus on income smoothing through discretionary accruals and document that managers have incentives to smooth earnings due to various reasons. This paper aims to focus on income smoothing through research and development (R&D) management and examine whether and how income smoothing through R&D management affects credit rating agencies’ perception of firm risk.
Design/methodology/approach
The authors use financial statement data from the CRSP/Compustat Merged data set universe for the period from 1992 to 2019 after excluding financial and utility industries. The authors follow the model for credit ratings used in previous literature to test the hypothesis. Specifically, the authors use an ordered probit model to express credit ratings as a function of income smoothing attributes.
Findings
The authors find that R&D-based income smoothing improves a firm’s credit rating. However, the positive effect of R&D-based income smoothing on credit ratings is less than that of accruals-based income smoothing. This study also shows that the positive effect of R&D-based income smoothing is more pronounced for firms less subject to opportunistic incentives, further strengthening the notion that managers smooth earnings through R&D management to provide more informative earnings.
Originality/value
This study contributes to the income smoothing literature in several ways. First, the authors contribute to the research by showing that managers’ income smoothing activity through R&D management positively affects firms’ credit rating. Second, the authors also document the relative benefits of the two different income smoothing techniques in terms of improving credit agencies’ perception of firms’ creditworthiness.
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Alvin Patrick Valentin, Aivanne Miguel Dela Vega, Marc Ivenson Kho, Sean Russel Licayan, Elijah Liam Nierras and Jose Carlos Pabalate
This study aims to determine and analyze the predictors of food waste reduction intention and behavior among higher education institutions (HEIs) using an extended version of the…
Abstract
Purpose
This study aims to determine and analyze the predictors of food waste reduction intention and behavior among higher education institutions (HEIs) using an extended version of the theory of planned behavior (TPB).
Design/methodology/approach
This study empirically tested an extended TPB model through regression analyses using data obtained through an online survey.
Findings
Attitude toward food waste reduction, subjective norms, perceived behavioral control and food waste knowledge predicted intention to reduce food waste. Furthermore, the intention to reduce food waste predicted food waste reduction behavior.
Research limitations/implications
The results imply that extending the TPB by adding food waste knowledge significantly predicted food waste reduction intention and behavior.
Practical implications
The study identified factors that predict food waste reduction behavior and suggested ways to influence Filipino students in HEIs to reduce food waste.
Originality/value
The findings support the inclusion of food waste knowledge to the TPB in predicting food waste reduction intention and behavior among students in HEIs.
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Megan E. Tresise, Mark S. Reed and Pippa J. Chapman
In order to mitigate the effects of climate change, the UK government has set a target of achieving net zero greenhouse gas (GHG) emissions by 2050. Agricultural GHG emissions in…
Abstract
In order to mitigate the effects of climate change, the UK government has set a target of achieving net zero greenhouse gas (GHG) emissions by 2050. Agricultural GHG emissions in 2017 were 45.6 million tonnes of carbon dioxide equivalent (CO2e; 10% of UK total GHG emissions). Farmland hedgerows are a carbon sink, storing carbon in the vegetation and soils beneath them, and thus increasing hedgerow length by 40% has been proposed in the UK to help meet net zero targets. However, the full impact of this expansion on farm biodiversity is yet to be evaluated in a net zero context. This paper critically synthesises the literature on the biodiversity implications of hedgerow planting and management on arable farms in the UK as a rapid review with policy recommendations. Eight peer-reviewed articles were reviewed, with the overall scientific evidence suggesting a positive influence of hedgerow management on farmland biodiversity, particularly coppicing and hedgelaying, although other boundary features, e.g. field margins and green lanes, may be additive to net zero hedgerow policy as they often supported higher abundances and richness of species. Only one paper found hedgerow age effects on biodiversity, with no significant effects found. Key policy implications are that further research is required, particularly on the effect of hedgerow age on biodiversity, as well as mammalian and avian responses to hedgerow planting and management, in order to fully evaluate hedgerow expansion impacts on biodiversity.
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Weiping Li, Huirong Li, Xuan Sean Sun and Tairan Kevin Huang
The purpose of this paper is to examine the impact of directors’ and officers’ liability insurance (D&O insurance hereafter) on corporate governance and firm performance, with a…
Abstract
Purpose
The purpose of this paper is to examine the impact of directors’ and officers’ liability insurance (D&O insurance hereafter) on corporate governance and firm performance, with a specific focus on investment efficiency.
Design/methodology/approach
Using a sample of Chinese A-share listed firms from the period 2007 to 2020, this study uses Ordinary Least Squares regressions to investigate the research questions, as well as moderating and mediating effects. Additionally, alternative measures of investment efficiency are used, and the Heckman two-stage model and propensity score matching model are used to demonstrate the consistency of the findings and to mitigate the risk of endogeneity.
Findings
The findings of this study suggest that purchasing D&O insurance has a detrimental impact on corporate investment efficiency, particularly in the context of over-investment activities; robust internal governance mechanisms, exemplified by a higher shareholding ratio of the top shareholder and enhanced internal control quality, alleviate this negative effect; and financing constraints act as a mediating factor in the association between D&O insurance and investment efficiency.
Originality/value
Corporate investment efficiency is of significant importance for both national macroeconomic growth and micro-enterprise development. Notably, the prevalence of D&O insurance among Chinese firms is progressively increasing, thus exerting a growing influence. This study contributes to the existing literature on D&O insurance and corporate investment efficiency, providing valuable insights into the economic impact of D&O insurance on Chinese firms. The empirical evidence presented herein facilitates future reforms and adjustments.
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Brent Smith, Stephanie A. Tryce and Carol Ferrara
To measure the relationships between varieties of patriotism and fan reactions to anthem-linked athlete activism and to test the effects of teammate allyship.
Abstract
Purpose
To measure the relationships between varieties of patriotism and fan reactions to anthem-linked athlete activism and to test the effects of teammate allyship.
Design/methodology/approach
In this study of US sport fans (n = 519), the authors examine whether two varieties of patriotism—the affective “symbolic patriotism” and the cognitive “uncritical patriotism”—might explain fans' reactions (support v. opposition) to anthem-linked athlete activism. The authors also consider whether fans' acceptance of nonactivist teammate allyship moderates patriotism influences on those reactions.
Findings
Using partial least squares structural equation modelling (PLS-SEM), the authors posit and show that fans' reactions to athlete activism are driven more strongly by uncritical patriotism than by symbolic patriotism. The authors also show that fans' acceptance of nonactivist teammate allyship significantly moderate the strength and direction of fans' reactions to athlete activism.
Research limitations/implications
The authors contribute substantive, new knowledge into the sways of athlete activism, teammate allyship and fan patriotism within the sport world. By way of novel heterotrait-monotrait ratio of correlations, the authors show evidence of discriminant validities of symbolic patriotism and uncritical patriotism. Using PLS-SEM moderation tests, the authors also show that fans' acceptance of teammate allyship moderates the influences of these patriotism types differently.
Originality/value
Few empirical studies to date have investigated sport fans' reactions to athletes' displays of social activism (e.g. taking a knee to protest racism).
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