143 research outputs found
Sort by
Franchising as a Path to Self-Employment for Women and Minorities in Retailing
Full text linkFranchise-based retailing plays a vital role in fulfilling the public policy goal of supporting inclusion for women and minorities in the economic mainstream, through employment and self-employment opportunities. Using Census Bureau data, we compare franchising activity by two protected classes (women, minorities) with their comparison groups (men, non-minorities). Results indicate that franchising is used disproportionately by the protected classes as a path to self-employment. We also compare franchising activity among these groups across various sectors and find evidence that women and minorities use franchising to enter hard-to-access business sectors, of which they may have otherwise been excluded. Policy implications of these findings are discussed and directions for future research are offered
Preannouncements: Forecast or Realized Earnings?
Full text linkThe literature has long recognized preannouncements as management forecasts issued after the fiscal period ends but before the actual earnings announcements. However, with the advent of Enterprise Resource Planning (ERP) systems, companies now can gather information promptly and process it efficiently, which allows companies to prepare earnings summaries in real-time, thus making it unnecessary to issue forecasts in the days following the quarter-end date. This study argues that any earnings announcements issued after the quarter-end date (preannouncements) by companies that have implemented ERP systems are based on realized earnings. Such announcements are expected to be more accurate than management forecasts, which are based on estimates of future earnings, and may be issued before the quarter-end date. This study finds that the accuracy of management voluntary disclosures and the timeliness of preannouncements improved in the periods following ERP implementation
Fair Value Measurements, Information Risk, Liquidity and Firm Value
No full textThis study examines whether the implementation of FASB Accounting Standards Codification on Fair Value Measurements (ASC 820-10) impacts information asymmetry, liquidity, and firm value. ASC 820-10 was designed and implemented under the premise it would improve financial reporting quality and comparability of fair value measurements in financial reports by requiring firms to disclose activity within and between fair value measurement levels. Increased disclosure that reduces information asymmetry (risk) will increase financial statement readability and increase liquidity. If the disclosed information lacks precision, the value of the information is discounted and its effect on investor perception becomes ambiguous. This study examines 10-K and 10-Q filings of firms with level 2(3) fair value activity from 2007 through 2012. Initial results reveal ASC 820-10 did decrease liquidity for firms with material transfers furthermore some investors and analysts assign value to financial statement information based on relevancy and understandability. Taken together these results signal to standard setters the increased mandatory disclosures around the measurement of unobservable inputs (level 3 securities) are value relevant and economically significant. This study extends the literature on the relationship between fair value relevance, information asymmetry, and information precision and contributes to the debate on the efficacy of unobservable units in fair value measurements
Supply Chain Finance: Impact on Supply Chain Competency and Organizational Performance
Full text linkSupply chain finance (SCF) has begun to garner some attention in the supply chain management literature, yet we find no empirical works assessing the role that SCF plays within a supply chain context and the impact it has on supply chain competency (SCC) and organizational performance (OP). This paper is an attempt to fill this literature gap in supply chain management and provide empirical evidence on the role of SCF. This study employs a structural equations model to investigate the role of SCF in the context of supply chain management on U.S. manufacturing firms. The results map SCF in the center of the supply chain management spectrum with supply chain management strategy (SCMS) and information sharing (IS) as the antecedents to, and SCC and OP as the consequences of SCF. Supply chain finance, together with supply chain competency positively impacts 51% of the variations in organizational performance.
Exploring the Interaction Effects Between Human Resource Systems and Resource Orchestration on Firm Outcomes
Full text linkFirms that leverage the interaction of HR systems with resource orchestration are better able to respond to increasing globalization and the inherent complexities and dynamism of operating in these environments. In this paper, we theorize how firms leverage this interaction to influence organizational level outcomes, specifically firm financial performance and organizational learning. In doing so, we both examine how human capital is viewed and answer calls within the literature on how resources are combined to influence firm outcomes. Our work follows Sirmon et al. (2007) framework and spans departmental boundaries making it both relevant and practical to all business disciplines and fields
Glass Ceiling Effect in Lithuanian Private Sector, What Holds Women Back from Moving to the Top Positions.
Full text linkThe study explores the relationship between glass ceiling perceptions, promotion, and leadership opportunities for the workplace middle-management position in Lithuania. For this study, data was collected using an online questionnaire distributed using the “LinkedIn” social network. Of the total number of participants 725, 521 were females (72 percent), and 204 were male (28 percent). Of the 725 participants, 379 (52 percent) agreed or somewhat agreed that there is gender inequality in the workplace in Lithuania. While the results suggest the perception of a glass ceiling still exists in Lithuania, the results were not extremely explicit as many of the responses fell between the “somewhat agree” and “neutral” range. The European Institute for Gender Equality states that Lithuania would receive a high impact from gender equality it could lead to a 12 percent increase of GDP by 2050, creating additional job places for women. (EIGE, 2019). To test the economic influence for the Lithuanian economy in the face of glass ceiling, almost 300 out of 725 (41 percent) participants agreed that they would not remain in their job if the amount of gender inequality increased, even choosing that it would lead to their choice leaving their job or in extreme cases Lithuania. There has been no significant difference between male and female perceptions about leadership and promotion. Both genders value the most flexible work schedule and balance between work and their personal life, as well as recognition for achievements that they bring to the company
Advertising Response to Financial Misreporting and the Implications for Firm Value
Full text linkDo firms adjust advertising spending around accounting-based brand scandal events such as fraudulent restatement announcements? To address this question, this study presents an empirical assessment of firm-level advertising spending around fraudulent restatement announcements. This analysis is guided by opposing propositions presented in the brand scandal and marketing-finance literature regarding expectations for firm-level advertising response to brand scandals. To test these opposing conjectures, an empirical investigation is conducted on a sample of 136 firms accused of financial reporting fraud. The dataset is constructed using the SEC and Department of Justice enforcement action database for corporate misrepresentation compiled by Karpoff, Lee, and Martin (2008a) (KLM) and annual Compustat industrial files. The potential implications of advertising spending on post-restatement firm value are also assessed. The results of this study indicate that, on average, firms reduce advertising expenditures around fraudulent restatement announcements. The reduction in advertising is shown to effectively mitigate the potential damages to firm value. In addition to generating support and managerial guidance regarding the relevance of advertising expenditures to a firm's reputation management strategies, this paper is the first known study to investigate the relationship between advertising spending and an accounting-based brand scandal. This study also makes multiple contributions to the advertising, brand scandal, and reputation management literature
Earnings Quality and Investor Reaction to Restatement Announcements
Full text linkThe purpose of this research is to help clarify the ambiguity surrounding market participants’ pricing of earnings quality using one clearly observable indicator of low-quality earnings, accounting restatements. This study examines the effect pre-restatement earnings quality has on short-window returns following restatement announcements using a cross-section of 719 publicly traded firms that announced restatements between 1997 and 2004. Accrual metrics are used to proxy for earnings quality. Results indicate that the market reaction to restatement announcements is significantly influenced by pre-restatement earnings quality. Specifically, the accrual measure of earnings quality is significantly and negatively related to the market reaction. This finding provides evidence that investors are attune to implications for poor earnings quality communicated by accruals quality and that this awareness is reflected in stock prices prior to the announcement of a clearly observable measure of poor earnings quality, accounting restatements
Building Strong Global Brands: Impact of Cross Sector Alliances, Sustainable Innovations and Strategic CSR
Full text linkThis research investigates three key dimensions that have an impact on multiple stakeholders, and can enhance the value of global brands. These are: (i) Cross-Sector Alliances (CSA), (ii) Sustainable Innovations (SI), and (iii) Strategic CSR. Five global brands have been selected that appear both in the Forbes list of “Most Sustainable Companies” and Interbrand list of “Best Global Brands” in 2017. Data has been gathered through documentary research. Content analysis of this data-set has led to the compilation of five case studies. Key findings and managerial implications are discussed. The contribution of this research is that it adopts a new approach to studying global brand management by incorporating CSA, SI and strategic CSR. It focuses not only on the economic aspects of global branding but also on potential societal and environmental outcomes for enhancing brand value
The Role of Signaling When Promoting Diversity and Inclusion at the Firm Level: A Financial Advisory Professional Case Study
Full text linkBased on signaling theory and visual perception theory, this study evaluated how financial advisory firms depict diversity through online platforms. Signals sent by firms may impact outsiders’ understanding of race and gender inclusion at the firm level, which may explain why some struggle to recruit and retain a diverse workforce. To evaluate, 1,379 advisor biographies on 73 firm websites were analyzed. In this study, 29% of all client-facing advisors with known gender were women; only 0.5% of those with known race were Black. This is much lower than what other studies, based on different industrial codes, have reported. The fact that White males featured predominantly in depictions of employees on firm websites may influence who applies for positions in financial advisory firms. This signaling pattern may also indicate hiring preferences among firm owners and managers. Results have implications for firms that wish to recruit and retain a diverse workforce