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Press reports have indicated that firms frequently underprice restricted stock and employee stock options. I test for underpricing of stock and options.

I examined a sample of 5,333 private firm stock and option issuances between 1985 and 2017. I tested for underpricing using two approaches: assuming investors have no special market-timing ability and assuming instead they have perfect market-timing ability.

I find evidence of widespread stock and option underpricing by private firms before they go public reflecting large discounts that exceed reasonable compensation for lack of marketability. Unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded, but the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect. Underpricing is still detected even when the actual DLOMs are tested against a benchmark that assumes investors have perfect market-timing ability.

Firms frequently underprice restricted stock and employee stock options. Firms tend to underprice stock options more frequently than restricted stock, but restricted stock tends to be priced at deeper discounts when recipients are assumed not to have any special market-timing ability.

Private firms issue restricted stock and options as incentive compensation. Lowballing the valuation transfers wealth from outside stockholders to employees/insiders. Wealth transfers take place through the issuance of equity claims to employees/insiders before firms go public. I found that more than a quarter of the DLOMs exceed the theoretical maximum by, on average, between 16% (median) and 20% (mean). This finding raises two questions worthy of investigation. First, to what extent do the frequency and magnitude of DLOMs above the theoretical maximum depend on whether a board of directors obtains an independent appraisal of a stock’s fair market value? Second, if DLOMs above the theoretical maximum are observed even when the stock is independently appraised, how do appraisers justify such large DLOMs?

The wealth transfers that take place through the issuance of equity claims to employees/insiders before firms go public benefit employees/insiders at the expense of outside shareholders.

My paper is the first to furnish evidence of widespread stock and option underpricing by private firms before they go public; demonstrate that the unreported underpricing is more frequent in the last pre-IPO private equity transactions that offer the last opportunity to give such discounts before the stock is publicly traded and show that the discounts are greater in the earlier pre-IPO transactions where unreported discounts are presumably tougher for the SEC to detect.

With the continuous deepening of China's mixed-ownership reform, the participants in the reform have gradually expanded from state-owned enterprises to private enterprises. Whether state-owned equity participation in private enterprises can facilitate the development of environmental, social and governance (ESG) performance in private enterprises is a question that needs urgent examination. This study aims to investigate the impact of state-owned equity participation on the ESG performance of private enterprises.

Using Chinese listed companies as the research sample, this study uses econometric methods such as multiple regression to analyze the relationship between state-owned equity and the ESG performance of private enterprises. Additionally, it explores the underlying mechanisms and influencing factors of this relationship.

There is a significant inverted U-shaped relationship between state-owned equity and the ESG performance of private enterprises. Mechanism analysis reveals that resource effects and governance effects play a mediating role in this nonlinear relationship. Furthermore, the authors find that environmental regulation and managers' attention to the environment positively moderate the relationship between state-owned equity participation and ESG performance.

A reasonable equity structure is crucial for enhancing corporate ESG performance. Moderate state-owned equity participation helps to leverage resource integration and governance advantages, which will assist private enterprises in maximizing ESG performance and achieving sustainable development.

In advancing the process of mixed-ownership reform, the government should maintain an appropriate proportion of state-owned equity to avoid excessive intervention in enterprise decision-making. At the same time, it should ensure that enterprises can genuinely undertake their social and environmental responsibilities while pursuing economic benefits. This is of great significance for promoting sustainable economic and social development.

This study integrates state-owned equity, ESG and nonlinear relationships into a single research framework. It explores the internal mechanisms and influencing factors of their relationship, overcoming the limitations of previous studies and provides a new perspective for understanding the impact of state-owned equity on corporate ESG performance.

Women’s employment has been a contentious issue in the Arab world. However, in today’s changing work conditions, workplaces, and the growth in education, women have increasingly occupied higher-level roles, and their presence in diverse industries has expanded. The study takes a holistic approach to female labor force participation (FLFP) in Oman, encompassing various theories and factors influencing women’s engagement in private sector jobs.

The research employed an exploratory design followed by a qualitative analysis based on a constructivist grounded theory approach. The study involved 170 semi-structured face-to-face interviews with women workers in Oman’s private sector. It explored work–family conflict (WFC), work–life balance (WLB), organizational and family support, and societal bias impacting female labor force participation.

The low FLFP in Oman’s private sector is a complex issue shaped by various interconnected challenges. Our qualitative analysis synthesizes a conceptual framework that highlights WFC and WLB as pivotal factors behind low FLFP, as women in the private sector face long work hours, low salaries, and high responsibilities. Our study confirms that these women receive substantial familial support in dealing with WFC but lack organizational support and family-friendly policies (FFPs).

Addressing the low participation of women in Oman’s private sector labor force necessitates comprehensive strategies encompassing legislative measures, cultural shifts, and organizational reforms. Implementing these strategies creates an environment where women feel empowered to participate and actively thrive in the private sector workforce.

This study indicates the presence of some serious social issues, such as society’s bias, lack of support for working women, and the gender gap in the private sector workforce, which has broad implications and significance for Oman. The study indicates the positive role of support women receive from their families, organizations, and Oman labor law and what could improve their participation further.

This study addresses the limited research on challenges encountered by women in Oman’s private-sector workforce. Our research addresses this gap by answering key questions, collecting and interpreting data, and developing a comprehensive conceptual framework. This framework aims to elucidate the factors contributing to women’s reluctance to pursue private-sector employment, considering the diverse issues they confront.

In the realm of innovation systems and technology transfer (TT), the emergence of open innovation and complex market dynamics has amplified innovation intermediaries’ prominence of their role and involvement in TT projects. This study delves into private consultants’ involvement in TT projects, namely in what got them involved by the project’s key stakeholders.

An iterative two-phased research approach was followed, including exploratory interviews and a quantitative case study of a consultancy firm engaged in 219 TT projects.

Five main key motivators were found to lead TT stakeholders to involve private consultants in their TT projects, being the most relevant, the proactivity of private consultants.

The case study and results provide an alternative perspective of TT endeavours, emphasising the importance given by TT stakeholders (mostly recipient companies) to private consultants’ involvement as innovation intermediaries.

Segmentation theory argues that the labor market is composed of a variety of non-competing segments between which rewards to human capital are determined by institutional structures. This paper presents new evidence on sector-wise earning differential for both male and female samples to assess the implications of segmentation theory.

Primary data is collected through simple random sampling technique with a survey questionnaire from 954 employed individuals of Southern Punjab, the less developed region of Pakistan. OAXACA decomposition technique is adopted to estimate earning differential.

Empirical estimates of OAXACA decomposition reveal that the extent of discrimination between public and private sector is greater in case of females than in male samples. Education and region are crucial factors behind sector-wise earning differential for both male and female samples. Job characteristics are more valued than occupation to explain sector-wise earning differential. Occupation largely contributes to explain public–private sector earning differential in male sample than in female sample. Moreover, job security is highly valued by females than males.

Segmentation of the institutional structure in a developing economy is empirically verified by using primary data due to non-availability of data on some variables from secondary data sources. This study attempts to explore the key factors of public–private sector wage differential for male and female samples separately due to the differences in their preferences for work and earning functions.

The purpose of the study is to investigate the influence of training and development and work–life balance on employee engagement and job performance at private banks in Bangladesh. This study also investigates the indirect influence of training and development and work–life balance on the job performance of private banks through the mediating role of employee engagement.

The present study used a self-administered survey questionnaire to collect data from the private bank staff who had been working in the existing bank for more than one year. In this study, 450 survey questionnaires were distributed to the respondents and received 346 useful responses (76.88% response rate). The SmartPLS 4 software was used to determine the reliability and validity of the constructs. The SmartPLS 4 software was also used to test the hypothesised path coefficients via Partial Least Squares Structural Equation Modelling (PLS-SEM).

The findings of the study indicate that both training and development and work–life balance significantly influence employee engagement and job performance in the private banks. The findings also indicate that both training and development and work–life balance indirectly significantly influence the job performance of the private bank through the mediating role of employee engagement.

This study suggests various practical implications. Managers should provide opportunities for employees to actively participate in employee training. The present study also suggests that managers should also prioritise and model a healthy work–life balance because when leaders value work–life balance, employees feel empowered. The findings of the study suggest that organisations should design effective employee development programmes and foster a supportive work environment to motivate their employees to contribute to organisational success.

This study makes significant theoretical contributions to the existing literature on employee engagement and job performance. The present study enhances theoretical depth by highlighting the mediating role of job engagement in achieving job performance, offering a new perspective on the relationship between these variables and paving the way for targeted interventions. The present study also enriches the existing body of literature by examining the impact of training and development and work–life balance through the lens of organisational support theory, presenting a comprehensive understanding of the intricate dynamics at play.

This study investigates the finance-investment nexus in sub-Saharan Africa using data from 41 countries spanning the period from 2000 to 2022. The central question addressed is whether there is a “too little” or “too much” finance problem in the region.

This study employs a system-generalised method of moments (GMM) approach to analyse the association between finance and private investment. Additionally, a dynamic threshold regression model is used to uncover potential nonlinearities in this relationship.

Initially, the study identifies a negative correlation between increased finance and private investment. However, further analysis using the dynamic threshold regression model reveals a critical threshold level of finance. Specifically, the threshold is found to be 6.52% of domestic credit to the private sector and 23.18% using the financial development index. Below this threshold, finance negatively impacts private investment, while surpassing this threshold leads to positive growth in private investment. These findings indicate an issue of “too little” finance in the finance and private investment nexus in sub-Saharan Africa. The results are robust across different model specifications.

The implications of this study highlight the importance of identifying critical thresholds for financing to enhance investment expenditures in the region.

This study contributes to the literature by uncovering nonlinearities in the finance-investment nexus in sub-Saharan Africa. The identification of critical thresholds provides valuable insights for policymakers, emphasising the need to strengthen the financial sector in countries operating below these thresholds to promote private investment and economic growth.

Recent accounting literature claims that private firms’ heterogeneity influences the quality of earnings. Along with certain drivers of heterogeneity, private firms get involved in specific programs aimed at fostering their access to capital, competencies and networks (CCN programs). Such programs can enhance private firms’ exposure to stakeholders that demand higher reporting quality, affecting their financial reporting choices. Therefore, this study investigated whether membership in CCN programs affects private firms’ earnings quality.

Focusing on the ELITE program, an international platform that since 2012 aims to support the growth of the most promising SMEs, and employing different econometric specifications facing endogeneity concerns, this paper carries out a quantitative empirical analysis to test the effect of CCN programs on private firms’ earnings quality.

Employing different earnings quality measures, empirical evidence reveals that firms belonging to CCN programs experienced an improvement in their earnings quality.

Even though endogeneity concerns have been addressed, we are nevertheless aware that they might, at least partially, have affected our results.

Although the contributions of the study are mostly academic, the empirical evidence obtained also carries practical implications. CCN programs not only act, as one might assume, as catalysts for economic and dimensional growth but also contribute to better earnings quality, mitigating the information asymmetries between firms and their stakeholders.

By adding new evidence to the literature concerning the impact of private firms’ heterogeneity on earnings quality, this is the first study to analyze the impact of specific programs aimed at supporting the affiliated SMEs to foster their access to capital, competencies and networks.

We investigate the impact of private credit expansion and contraction on the unemployment rate in Economic Community of West African States (ECOWAS) countries.

Credit expansion and contraction are measured using a three-level criterion. The fixed effect panel regression model was used to estimate the impact of private credit contraction and expansion on the unemployment rate in ECOWAS countries.

Private credit contraction significantly increases the unemployment rate in ECOWAS countries. Private credit expansion does not have a significant effect on the unemployment rate. Real GDP growth has a significant negative effect on the unemployment rate which supports the prediction of the Okun’s Law while the inflation rate has a positive and insignificant effect on the rate of unemployment in ECOWAS countries which contradicts the prediction of the Phillips curve.

Policymakers in ECOWAS countries need to be cautious when introducing policies that lead to private credit contraction as it could increase unemployment. Policymakers in ECOWAS countries should also find the “threshold” below which private credit contraction will worsen the unemployment rate and introduce policy measures to ensure that private credit contraction does not fall below the threshold.

The literature has not examined the factors leading to tight labor markets or unemployment in West African countries.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0939.

A significant number of criminal and deviant acts are investigated by nonpolice actors. These include private investigators who charge fees for their services, professional services firms such as firms of accountants who also charge fees, in-house investigators employed by private organisations and in-house investigators of public sector organisations who are not sworn police officers. Some of these investigators, such as private investigators, have been exposed in unethical activities such as illegal surveillance and blagging to name some. In this respect, this study aims to uncover the ethical orientations of investigators using cluster analysis.

This study is based upon an online survey of private investigators predominantly in the UK, i.e. investigators beyond the public police. An innovate statistical inferential analysis was used to investigate the sample which resulted in the development of three ethical orientations of such investigators.

Based upon a survey response from 331 of these types of investigators this study illustrates the extent they engage in unethical activities, showing a very small minority of largely private investigators who engage in such activities.

A unique feature of this study is the use of an innovative statistical approach using an unsupervised machine learning model, namely, TwoStep cluster analysis, to successfully group and classify respondents based on their ethical orientation. The model derived three types of ethical orientation: ethical, inbetweeners and risk takers.