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The purpose of this paper is to examine the effects of managerial decision horizon (MDH) on real estate investment trust (REIT) behavior and performance.

In this study, the authors expand the number of proxies and measure managerial horizon by CEO age, CEO tenure, cash compensation relative to total compensation, and the amount of vested equity-based compensation to total compensation. To avoid potential measurement error, the authors compute the average ranking score of the four individual measures to determine the overall MDH of a CEO. Cross-sectional time series regressions are then performed on the effects of CEO MDH on REIT policies and performance. The authors also examine if the effect of myopic MDH can be mitigated by good corporate governance. For robustness purpose, the authors also compare the effects of age-related MDH and compensation-related MDH.

The results show that REITs managed by CEOs with short MDHs have lower levels of asset growth and a lower standard deviation of return on assets. These REITs also have lower debt levels, lower dividend payouts, and hold more cash. The results suggest that short-horizon CEOs have incentives to lower investment risk, default risk, and liquidity risk at the firm level in order to protect personal benefits. CEOs with a short horizon also have a negative impact on REIT performance. The results also show that CEO compensation-related horizon problems are mitigated by corporate governance, but CEO age-related horizon problems are significant and persistent. The results suggest that age-related behavioral biases of the CEO are important determinants of corporate decisions.

The results of this study suggest that the managerial behavioral biases should be considered in understanding firm behavior.

This is the first study that examines the effects of MDH on REIT behavior and performance. The unique regulatory environment of REITs makes them less susceptible to agency problems of free cash flow and thus provides a clearer picture of the effect of MDH. Prior studies focus on the effect of managerial horizon on firm investment activity, this study expands the scope to examine the effects on investment and financial policies. In addition, this study adds to the literature by showing that the effect of age-related horizon problems may not be mitigated by good corporate governance.

This paper aims to quantify the impact of environmental contamination on farmland valuation. It applies data fusion and hedonic pricing approaches to quantify the contribution of nitrogen and phosphorus loading on farmland sales transactions. It further suggests approaches to improve internalization of environmental cost in valuation approaches using shadow pricing. The work informs the field of environmental, social and governance (ESG) investing by fusing environmental data with financial transactions.

This paper is an empirical study implementing hedonic pricing of farmland in the Lake Huron major drainage area. Data sources and fusion were derived from AcreValue, the United States Department of Agriculture's Gridded Soil Survey Geographic database (gSSURGO) and the United States Geological Survey's Spatially Referenced Regression on Watershed Attributes database (SPARROW).

The results suggest that environmental contamination has statistically significant positive determination power on farmland prices such that prices increase with contamination. Conventional metrics such as percentage of cultivated land in the parcel, root zone depth, whether the parcel is designated by the Natural Resource Conservation Service as prime farmland, and the size of the farmland parcel contribution to farmland value as well. The results indicate that environmental impacts are not accurately accounted for in farmland transactions.

This paper points to inaccurate valuation of environmental contamination in farmland value. While geocoding allowed for positioning of farmland sales transactions relative to modeled areas of contaminant loading in the Lake Huron drainage area, the interpretation indicates that value is driven by cultivation. Hence, generalization to other areas needs a cautious approach. Empirical testing across locations and drainage areas with diverse farmland features will serve to verify the modeled data used in this study.

The lack of integration of externalities in land valuation has implications on lending and disclosure practices, as financial service providers increasingly seek to account for ESG risk on their loan books and broader investment portfolios. The impact of farmland accounting practices for contamination such as shadow pricing may impact land valuation based on future cash flows, and may serve to inform sustainability-linked lending practices to farm operations.

This is the first paper to fuse data from AcreValue, gSSURGO and SPARROW to discover the explanatory power of nutrient contamination in farmland value in the Lake Huron major drainage area.

Though stock portfolio return autocorrelation is well documented in the literature, its cause is still not clearly understood. Presently, evidence of private information induced stock return autocorrelation is still very limited. The difficulty in obtaining foreign country information by small investors makes the private information of institutional investors in the ADR (American Depository Receipt) market more significant and influential. As such, the ADR market provides a favorable environment for testing the effect of private information on return autocorrelation. The purpose of this paper is to address this issue.

In this paper, ADRs are sorted annually into three groups based on market equity capitalization. Within each capitalization group, ADRs are further sorted into three groups based on the fraction of shares held by institutional investors. Each ADR is assigned to one of the nine groups and group membership is rebalanced each year. The return autocorrelation of individual ADR securities and ADR portfolios for each group are then calculated.

The results demonstrate that ADR individual stock and portfolio daily return autocorrelations are positively related to institutional ownership. It is also found that other explanations, such as non‐synchronous trading, bid‐ask spread and volatility of ADR, cannot explain the positive relation between daily return autocorrelations and institutional ownership of ADR.

Since ADR market is more suitable than other markets for testing the role of private information, stronger and clearer results are got accordingly. This paper suggests that trading strategy based on private information of institutional investors can lead to stock return autocorrelation in ADR daily returns.

The purpose of this paper is twofold in examining the international transmission of REIT returns volatility. The first purpose is to add to the literature on whether the real estate securities market and the broader equity market are integrated. The second objective of the study is to determine whether geographic risk factors can be transmitted beyond their region of influence.

The study uses the GARCH(1, 1), EGARCH, and GARCH‐M models.

The results show that there are significant international spillovers of REIT returns volatility within the Pacific region. The results also show that there are significant volatility transmissions between the Pacific and the Atlantic regions.

The results are consistent with the implication that the real estate sector and the general equity market are integrated such that geographic risk can be transmitted across national borders. The result will have major implications for international investment strategies.

To date, there has been no published study on the international transmission of REIT returns volatility. This study therefore examines whether the conditional variance of REIT returns of a country is affected by volatility transmission across markets in the same region using four Pacific markets.

The purpose of this paper is to investigate the role of acquirer's earnings quality on the choice of payment method in mergers and acquisitions (M&A).

The paper applies a simultaneous equations model to address the concern of endogeneity between earnings quality and payment method in corporate acquisitions. In addition, a propensity score matching model is used for robustness purpose.

Previous studies imply that short‐term accruals have a significant impact on the choice of payment method in M&A. In this study, This paper shows that acquisition financing is not significantly affected by short‐term earnings quality once control variables are considered. Instead, this paper finds that it is the long‐term earnings quality of the acquirer that matters. Acquiring firms with poor (good) long‐term earnings quality prefer lower (higher) cash payment in acquisitions. Their results are robust to different definitions of earnings quality.

Researchers should consider the effect of long‐term earnings quality in their future investigations.

Investors should be aware of this issue when evaluating corporate mergers.

This is the first study to examine the impact of long‐term quality of earnings on the choice of payment method in M&A.

The purpose of this paper is to try to identify the motivation of firms that announce share repurchase but do not follow it up with the actual purchase. The authors conjecture that the long-term earnings quality of such firms is low, which makes them poor candidates for actual stock repurchase. Their intention is to mimic actual repurchasers and their motivation appears to be just to get a bounce in their stock price normally associated with such announcements.

The authors use probit analysis to ascertain whether earnings quality can predict the subsequent repurchase behavior of firms that announce share repurchase. As Gong et al. point out, the relationship between earnings management and the percentage of shares repurchased may be endogenous. In order to mitigate the potential endogeneity bias, the authors use a two-stage instrumental variable probit model adapted for this study from Lee and Masulis (2009).

The results show that non-carry-through firms have lower earnings quality than carry-through firms in the pre-announcement period in all of the metrics the authors use to measure earnings quality. In the post-announcement period, the earnings quality of the non-carry-through firms declines still further and the difference in the quality becomes more pronounced. The results of probit regression show that lower earnings quality increases the likelihood of becoming a non-carry-through company.

The finding has interesting implications for investment management as investors can differentiate non-carry-through firms from carry-through repurchasers by examining the firm's earnings quality.

The analysis shows that poor long-term earnings quality increases the chance of not carrying through on the repurchase announcement. The authors also find that the poor earnings quality of non-carry-through firms limits their ability to manage earnings downward prior to the repurchase announcement.

This study aims to explore the relationship between the degree of state-owned enterprises’ (SOEs) mixed reform and the environmental response of enterprises, against the background of actively promoting the reform of mixed ownership in China.

The study is conducted on a sample of A-share listed manufacturing companies in Shanghai and Shenzhen of China, investigated for the period 2015 to 2020. The baseline regression results are robust to a series of robustness and endogeneity tests. To deal with the issue of endogeneity, the technique of instrumental variable method has been applied.

The study confirms the U-shaped effect of the depth and restriction of mixed ownership on SOEs’ environmentally responsive behaviour in the manufacturing industry, especially for lower environmental regulation and higher level of risk-taking firms. The findings indicate that the government, shareholders and other stakeholders of enterprises should not simply consider that the mixed reform is directly promoting or reducing the environmental response behaviour of enterprises.

SOEs should improve their shareholding structures to undermine performance enhancement at the expense of the environment and increase environmentally beneficial behaviours. Regulators and governments should improve the institutional mechanism of environmental regulation and make efforts to promote corporate awareness of the environment.

Although the adoption and implementation of environmentally friendly policies are costly, improved environmental response and other social responsibilities are helpful to corporate long-term growth and reputation and obtain more capital market attention. Therefore, firms would benefit from improving their environmental response to protect nature, as well as to enjoy the economic and social benefits of a better environmental response.

To the best of the authors’ knowledge, there is a lack of studies focussing on the environmental behaviour of SOEs of mixed reform. As the mixed reform in China has come to a climax phase in recent several years, SOEs of mixed reform is an ideal environment for research. The study focusses on manufacturing firms as these firms are more susceptible to contribute to environmental pollution, exploitation of natural resources and labour concerns.

During the spring and early summer of 1991 the life insurance industry experienced an unprecedented series of major life insurer insolvencies. The objective of this paper is to determine whether or not policyholder panic resulted from these failures. The analysis shows that each of the failed companies which are evaluated had unique financial problems which caused their demise. And through the use of an event study methodology it is concluded that industry‐wide policyholder panic did not occur as a result of the life insurer failures.

Pulsatile flow of an incompressible, Newtonian fluid through a symmetric bifurcated rigid channel was numerically analysed by solving the three‐dimensional Navier‐Stokes equations. The upstream flow conditions were taken from an experimentally measured human arterial pulse cycle. The bifurcation was symmetrical with a branch angle of 60° and a daughter to mother area ratio of 2.0. The predicted velocity patterns were in qualitative agreement with experimental measurements available in the literature. The effect of unsteadiness on the various flow characteristics was studied. The most drastic effect observed was on the flow reversal regions. There was no flow reversal at the highest inlet Reynolds number in the pulse cycle, whereas in the case of steady flow at the same Reynolds number, the flow reversal region was the largest. The presence of secondary flow was observed at all times during the pulse cycle. Shear stress was calculated along the outer and inner walls and the low and high time averaged shear stress regions correspond to the clinically observed sites of formation of atherosclerotic plaque and lesions.

Canada has lagged in access to capital for high-potential, growth-oriented new ventures, but has made considerable strides in the past decade. This study aims to examine the evolving state of the market for risk capital in Canada during the COVID-19 pandemic, providing a critical assessment of government policy from the perspective of angel investors and diverse communities of entrepreneurs.

A thematic analysis was conducted of seven COVID-19 roundtable discussions hosted by the National Angel Capital Organization that included 51 global and national-level business and political leaders. The analysis extracted the most salient details from the discussions, distilling them into timely and actionable insights for policymakers.

The analysis suggests that the government’s economic policy response to the COVID-19 crisis fails to address the sudden liquidity problems faced by new ventures. Entrepreneurs and angel investors have remained resilient, rallied as a community and demonstrated an extraordinary level of trust. Traditionally under-represented communities of entrepreneurs are more affected by the crisis than others.

The findings and recommendations are of relevance to policymakers interested in post-COVID-19 economic policies to address the unique challenges faced by start-ups and ensure their full contribution to economic recovery.

The paper presents several policy recommendations and proposes a novel framework to describe the impacts of the pandemic on different categories of start-ups.