While prior literature has highlighted the importance of shareholder-driven environmental initiatives, role government-led initiatives remains largely unexplored. Such can effectively promote green innovation, attract environmentally conscious investors, and ultimately lower firms' cost equity. By analyzing annual work reports from Chinese local governments, we document a significant negative association between government equity for firms, supporting Porter Hypothesis. This effect is...

Abstract Using a sample of 56 countries over the 2000–2016 period, we document lower levels venture capital investments in more religious countries. These results are not specific to any primary religion. Furthermore, show that negative relation between religiosity and investing mainly stems from risk aversion inherent religiosity. Our unlikely driven by economic clout, as fact have higher domestic credit or nonfinancial investments, despite investments. We also present several findings...

Purpose Corporate site visits increase labor investment efficiency. Design/methodology/approach Our empirical model for the baseline analysis follows those of Jung et al. (2014) and Ghaly al . (2020). Findings We show that corporate are associated with significantly higher efficiency; more specifically, reduce both over-hiring under-hiring employees. The effect on efficiency is pronounced firms adjustment costs, greater financial constraints, weaker governance lower reporting quality. also...

Abstract Studies linking religion to CSR have produced conflicting findings due a failure draw distinctions among religious influences and different practices, theorize their connection. Drawing on social identity theory the of planned behavior, we first argue that will influence when ethical values from CEO’s identification resonate with an aspect CSR. Second, CEO attitudes congruent those forms CSR—interpersonal empathy proactiveness—will strengthen relationship. Third, relationship...

Abstract We investigate the association between stock return synchronicity and insider trading profitability. Morck, Yeung Yu (2000) suggest that greater (or R 2 ) reflects less firm‐specific information in prices. Consistent with view, we find significantly higher profitability firms synchronicity. The results mainly reside opportunistic trades rather than routine trades, are more pronounced for by key insiders such as officers directors. Furthermore, our weaker industry bellwether firms,...

In this article, the authors argue that momentum and profitability factors share a common source in uncertainty. Specifically, find uncertainty subsumes price operating profitability; it also accounts for majority of profits associated with earnings return on equity, especially large firms. Furthermore, four aforementioned momentum/profitability strategies concentrate periods negative market returns, consistent high-uncertainty stocks' greater vulnerability to bad states documented recent...

Prior research finds that online social media usage may lower self-control and encourage indulgent behavior. We find corporate CEOs show similar tendencies: with presence are more likely to succumb abuse their information advantage profit from unethical opportunistic inside trades. Specifically, strongly predicts the incidence, intensity, profitability of CEO insider trading activity. Our results only reside in buys (not sells), especially which contain material non-public information.

ABSTRACT Using comprehensive labor market data to measure client firms’ workforce technology competency, this study investigates how companies’ competency may mitigate the deterioration of audit quality under remote working arrangement following COVID-19. Our results suggest that after COVID-19 outbreak, accrual has decreased, indicating a quality. The negative impact audits during on is less pronounced in companies with greater competency. are robust various alternative measures, local...

We find a puzzling fact about the mutual fund industry that funds operating in more competitive segments charge higher fees. argue this surprising positive relation between competition and fees is consistent with strategic fee setting by funds. Fund performance better persistent less segments, which attracts relatively performance-sensitive investors. This leaves investors markets. Hence, markets face inelastic demand curve take advantage of it increasing their (which reduces investors’ net...

The literature on the interplay between geographic communities and organizations has largely ignored role of individual residents. In adopting a meso-perspective, we examine potentially vital relationship corporate conduct pro-social behavior demanding sacrifice from individuals. Drawing Weber (1922), theorize that in community legitimize personal social three ways – by serving as models, imparting norms values, routinizing forms interaction. We study responsibility (CSR) local firms...

We examine 1984-2018 data and show that the talent or ability of sell-side financial analysts affects a covered firm's information environment—more so than simple number covering firm. find while in general produce market industry-level information, high-ability contribute more firm-specific information. Firms by experience significantly less insider trading prior to positive earnings news. Results only reside opportunistic (not routine) trades. When an analyst initiates (terminates)...

In this study, we decompose idiosyncratic stock return volatility (IVOL) into uncertainty and residual volatility, find that the negative IVOL-return relation primarily comes from component. Further analysis indicates firm increases are associated with contemporaneous returns. High firms also have lower values higher expected returns, exhibit more asymmetric price responses to good/bad market states. All of these consistent ambiguity aversion modeled by Epstein Schneider (2008). Our study...

We use satellite night lights data to estimate the extent of provincial-level gross domestic product (GDP) manipulation in China and show that firms located provinces with greater GDP have higher cost equity. This effect is significant for local state-owned enterprises (SOEs) only; furthermore, it more pronounced when government officials face promotion pressure institutional ownership lower. also document a negative association between future earnings manipulation. Overall, our findings...

Prior research finds that online social media usage may lower self-control and encourage indulgent behavior in laboratory subjects. We find corporate CEOs show similar tendencies: with presence are more likely to succumb abuse their information advantage profit from unethical insider trades. Specifically, CEOs' strongly predicts trading activity terms of incidence, intensity (amount frequency), profitability. further the effect is driven by buys (not sells) pronounced for opportunistic which...