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Guar Seed crop is ruling the Indian International business mainly due to its application as a drilling fluid in shale energy industry concentrated in the USA. One of the allegations against futures market is its possible role in increasing the volatility of underlying physical market prices. Suspension of guar seed futures contract in 2012 at National Commodity Derivatives Exchange of India (NCDEX)-India, has reignited the controversy and raised an alarm bell to peek into obscure world of Indian commodity derivatives market. Against the backdrop of fiasco in guar futures trading, the purpose of this paper is to investigate whether sudden surge in futures trading volume leads to increase in the volatility of spot market prices.

Guar seed spot returns volatility is modeled as a GARCH (1, 1) process. Futures trading volume and open interest are segregated into expected and unexpected components. The data are analyzed from 2004 to 2011 using Augmented GARCH model to study the contemporaneous relationship between spot volatility and unexpected futures trading activity and Granger Causality test for examining the dynamic relationship between them and ascertaining causality.

Augmented GARCH model reports positive relationship between unexpected futures trading volume (UTV) and spot returns volatility, and, Granger Causality flows from UTV to spot volatility. Therefore, when the level of futures trading volume increases unexpectedly, the volatility of spot prices increases pointing toward the destabilizing impact of futures trading. However, hedger’s activity, represented by open interest is not seen to have any causal/destabilizing impact on spot price volatility of guar seed.

The study provides empirical evidence to support the concern of regulators, genuine hedgers and other traders about the presence of excessive speculation and market manipulations perpetrated through futures market that is disturbing the underlying physical market instead of strengthening it by aiding in price discovery and risk mitigation.

There are very few studies which have empirically investigated the temporal relation between volume and volatility in Indian agricultural commodity markets. With guar seed as a special case the present study investigates statistically the impact of futures trading on spot price volatility. In light of the findings of the study, the curb imposed on guar seed futures trading in 2012 was justified.

Prior research has shown evidence of earnings management in financial reports of US and Australian firms changing chief executive officer (CEO). This paper examines whether corporate boards, with certain characteristics associated with strong corporate governance, are effective in controlling any earnings management in the financial reports of Australian firms that change CEOs. Since hiring, monitoring and replacing the CEO are key roles of the board of directors, research in this specific context is considered particularly appropriate. After controlling for contemporaneous and lagged profitability in the year of CEO change, we find evidence of negative unexpected accruals in our sub‐sample of firms where the CEO resigned. For this group, larger boards and a higher proportion of independent directors appear to limit observed negative earnings management. In the case of CEO retirements there is evidence of positive unexpected accruals in the period of CEO change. However, none of the board characteristics show any significant relationship with unexpected accruals. In the period after CEO change, we find no evidence of positive unexpected accruals for CEO resignations and none of the board characteristics show any significant relationship with unexpected accruals. For CEO retirements, our analysis indicates that a higher proportion of executive and affiliated director shareholding goes some way towards counteracting the observed positive unexpected accruals. When lagged unexpected accruals are included in the regression equation to control for accrual reversals, CEO duality significantly increases the already positive earnings management found in CEO retirements in the period following CEO change.

The purpose of this paper is to examine the empirical association between expected and unexpected audit fees and reported earnings quality for a sample of Big 4(5) client companies over a period from 2000 to 2005.

The paper employs a cross‐sectional multiple regression model for a sample of 1,142 firms (6,852 firm‐years) covering a time period of six years comprising 2000 to 2005 to evaluate the relationship between both expected and unexpected audit fees and performance‐adjusted discretionary accruals that are estimated from the extended version of the modified Jones model.

The paper finds that both expected and unexpected audit fees are associated with an increase in earnings quality, as indicated by the reduction of both absolute and signed discretionary accrual adjustments. Furthermore, in some analyses these associations are found to persist into the post‐Sarbanes‐Oxley Act (SOX) period. The main results hold in sensitivity tests that involve using both the absolute and signed unexpected audit fees as independent variables and in tests that use both the absolute and signed current accruals as dependent variables of interest.

The results suggest that audit efforts consistent with client‐specific business attributes and reflected in expected audit fees mitigate financial reporting biases, the effect of which is incrementally observable to some extent in the post‐SOX period as well. Unexpected audit fees, a proxy for fee surprise arising out of auditor‐client‐specific contractual situations, are also associated with an increase in earnings quality. The association is, in some analyses, significant for the post‐SOX years. The test results do not exhibit any evidence of auditor independence problems associated with high expected and unexpected audit fees; a result that supports the “reputation protection” argument for auditors' reporting decisions.

In a time period surrounding the introduction of SOX when nonaudit consulting services have severely been restricted, and the audit fee growth for publicly traded companies have been dramatic, an analysis of this nature potentially produces valuable insights into the auditors' fee decision, audit efforts, and auditor independence issue. The study looks into a new perspective concerning the relationship between audit fees and financial reporting practice over the two regulatory regimes, pre‐ and post‐SOX.

The purpose of the paper is to study the explainability of expected and unexpected trade volume and open interest as information flow, and the asymmetric effects of unexpected shocks to the information flow on volatility in Indian commodity markets.

After having dissected into expected and unexpected components, the effects of trade volume and open interest on volatility are tested. A new interaction term is also added to measure asymmetry. Four commodities, namely, cumin, soy oil and pepper in food commodity category and guar seed in non-food commodity category are selected for the present study. These four commodities are selected based on their economic and trading importance, i.e. weight in the index and trading volume (liquidity).

It is mostly found that unexpected volatility is positively related to the volatility, and the effect of the unexpected component is more than the expected component of the trading volume. The expected open interest is negatively related to volatility while the unexpected open interest is found to be positively related in all the commodities. The effects of unexpected component are higher than the expected open interest. The effects of positive unexpected shocks to the trade volume are more than those of negative unexpected shocks. The evidence of asymmetry in unexpected shocks to open interest is inconclusive. However, the inclusion of volume of trade and open interest could not vanish away the volatility. This indicates that the trading volume and open interest are not the variable with mixed distribution. Thus, it contrasts the assumption of mixed distribution hypothesis, and they do not proxy the flow of information.

It is the unexpected information flow that matters more than the expected one. Positive unexpected shocks to trade volume are more influential than the negative shocks. However, trade volume and open interest are not good proxy of information flow in the Indian commodity markets. This study would definitely broaden the horizon of managers and policymakers to understand the volatility better.

The paper is unique in terms of understanding the effect of expected and unexpected trade volume and open interest and the asymmetric effects of unexpected shocks to volume and open interest in the Indian commodity markets.

This study aims to extend the current literature by examining the inflation-hedging effectiveness of Malaysian residential property in the short run and long run. Malaysia is an emerging market and has some unique characteristics. Therefore, a dedicated study in this market is critical.

The analysis of this study involves two stages. The first stage is to estimate the inflation-hedging ability of Malaysian residential property in the short run. The Fama and Schwert model was employed. Thereafter, the long-run inflation-hedging effectiveness was assessed by using a dynamic ordinary least squares (DOLS) model.

The Fama and Schwert tests reveal that Malaysian residential property does provide some satisfactory hedge against the expected inflation component over the short run. However, variations are evident among different types of residential property. The DOLS results provide strong evidence to support that housing is an effective hedge against the expected inflation in the long run, whereas no comparable evidence is found for the unexpected inflation component.

The findings enable more informed and practical investment decision-making regarding the role of housing in inflation risk management.

This paper is the first study to offer empirical evidence of the inflation-hedging attributes of Malaysian residential property. Moreover, the inflation-hedging effectiveness of different types of residential property is also compared for the first time.

We provide evidence of stock market performance prior to announcements of the assuance or retirement of securities which is consistent with Myers and Majluf [1984] and Miller and Rock [1985]. Stocks of firms issuing seasoned common equity are significantly over‐valued in the market prior to the issue, but in the year following, decline to their original level. Stocks of firms issuing convertible debt also are over‐valued, but to a lesser degree than that of firms issuing seasoned equity. Stock of firms issuing straight debt appears to be neither over‐valued nor undervalued. The after‐market firm performance, measured by earnings, cash flows or dividends, is consistent with Miller and Rock. We document a decline in after‐market performance for firms issuing convertible or straight debt and an improvement for those repurchasng shares. However, contrary to predictions, we find that firms issuing seasoned equity do not have lower earnings or cash flows in the following year, and increase their rate of dividend payment as well. We document evidence indicating that firms issue equity to maintain or increase dividends. The market anticipates the dividend increase and shows no response to announcements of dividend changes following an equity issue. However, we are unable to explain why the market reacts in such a negative manner to equity issues, when the after‐market performance of the firm is as expected.

The purpose of this study is to apply a rhetorical lens to the exploration of symbolic interactions used to negotiate contested identity. Specifically, we provide and analyze an Internet discussion among nurses concerning job duties and responsibilities. In this case study, one nurse questions her superior's remarks about her “abandoning” her responsibilities if she does not undertake “non-nursing” tasks. Ironically, the majority of posts that follow from other nurses perpetuate the notion that nurses must perform “non-nursing” tasks to fulfill their primary moral obligation and sustain an identity of nurses as flexible and caring. A rhetorical lens is applied and suggests that multiple framing techniques and rhetorical tactics (i.e., mutual negation, minimization, red herrings, sunny-side of domination, and perhaps most important the moral imperative) are used to persuade the nurse toward a collective identity – flexible professional. Although the main contribution of this study is found in the use of the rhetorical lens, an additional contribution is discussed – unexpected evidence, which suggests that the primary assumption of a “nursing shortage” may be a discursive reality, as well.

Purpose – We investigate the impact of CEO turnover on performance and accounting-based outcomes following major business restructurings.

Design/Methodology/Approach – We analyze a sample of 217 major operational restructurings during the period 1999–2007 using regressions and other statistical tests.

Findings – We document significant improvements in postrestructuring operating and investment efficiencies with little differentiation between restructurings that involve a change in CEO and those that involve continuing CEOs. However, we find evidence of lower accounting quality for the continuing CEO firms. First, restructuring charges of CEO turnover firms are associated with lower current period unexpected core earnings and higher future period unexpected core earnings (lower levels of classification shifting). Second, CEO turnover firms have a significantly lower percentage of (i) restructuring charge reversals and (ii) prereversal shortfalls (in meeting analyst forecast estimates) followed by reversals (suggesting lower levels of subsequent earnings management). Therefore, turnover CEOs are less likely to manipulate restructuring charges to mask true economic performance than continuing CEOs. Overall, our evidence suggests continuing CEOs undertake less substantial restructurings, while opportunistically reporting similar charges and performance improvements, consistent with attempts to pool with new CEO hires to keep their jobs.

Originality/Value – Overall, our results highlight the key economic role played by top corporate managers in major business restructurings, suggesting that CEO turnover leads to both real changes in managerial actions and altered reporting incentives.

This paper reports the results of the effects of the release, in the United Kingdom, annual reports and accounts (ARA), on security prices and trading volume of the U.K. firms. If the information reported in the annual reports and accounts (ARA) is relevant, the U.S. security market will respond to the release news through return and volume variances. Both signals are indicators of the relevance of the annual reports and accounts. The results of the analysis suggest the existence of unexpected returns to the annual reports and accounts and no corresponding U.S. trading volume response. The price results are in marked contrast to the findings of previous research that examined the information content of U.S. domestic annual reports, but do not detect a stock price response (e.g., Foster et al. 1986; Bernard and Stober 1989; Cready and Mynatt 1991). Our stock price analyses indicate that non‐U.S. GAAP accounting measures do not impede U.S investors' ability to use U.K. firms' ARA in valuing the sample firms. Indeed, U.S. investors use information from the ARA in their valuation of U.K. firms. Since trading responses to a disclosure are generally more easily detected than price responses (Cready and Hurtt 1999), these findings jointly suggest the provincial nature of the ARA release.

Based on a sample of 1,435 Vietnamese listed firms over the period from 2005 to 2017, this study examines the sensitivity of unexpected investment to free cash flow and its mechanism.

We tested three hypotheses using two-step system-GMM to investigate investment–cash flow sensitivity for various firm scenarios while accounting for confounding variables.

Firms with negative free cash flow are more likely to engage in underinvestment; conversely, overinvestment is found primarily in firms with positive free cash flow. In terms of the mechanism, while underinvesting decisions are caused mainly by financial constraints, overinvesting behaviour primarily resulted from agency problems, typically in the form of principal-principal conflicts. Interestingly, under the impact of negative cash flow observations, financial constraints tend to decrease investment–cash flow sensitivity. Conversely, the agency costs hypothesis reveals that agency problems are more likely to increase investment–cash flow sensitivity.

These findings not only contribute to the current corporate literature but also provide some important practical implications for stock market investors, corporate managers, and policy-setting bodies, specifically in the Vietnamese market.