Carlo D'Augusta, Francesco Grossetti and Claudia Imperatore
The authors study the effect of increasing environmental awareness on shareholders' activism. Specificallly, this study aims to examine whether growing environmental awareness is…
Abstract
Purpose
The authors study the effect of increasing environmental awareness on shareholders' activism. Specificallly, this study aims to examine whether growing environmental awareness is reflected in more aggressive environmental shareholder proposals.
Design/methodology/approach
This study uses the 2010 Deepwater Horizon oil spill disaster as an exogenous event that increased shareholders' environmental awareness. This study analyzes the spill’s effect on the tone of proposals about environmental issues and nonenvironmental topics.
Findings
After the disaster, the tone of environmental proposals (i.e. the treatment group) is significantly more negative. In contrast, the tone of nonenvironmental proposals (i.e. the control group) is unaffected. This study interprets this finding as direct evidence that the oil spill led to increased shareholder environmental activism through proposals that targeted the environmental risks surrounding the business more aggressively. By contrast, this study finds no effect of the oil spill on the tone of managers' responses to the proposals, consistent with managers refraining from emphasizing environmental threats.
Originality/value
Anecdotal evidence and recent studies suggest a link between environmental disasters and shareholder pressure for corporate change. However, no prior research has investigated the channel through which shareholders could have exerted such pressure or has looked for direct evidence of it in the negotiations between shareholders and managers. By finding such evidence in shareholder proposals, this study fills in this gap.
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Charlotte Haugland Sundkvist and Tonny Stenheim
The purpose of this paper is to examine the role family identity and reputational concerns plays when private family firms engage in earnings management.
Abstract
Purpose
The purpose of this paper is to examine the role family identity and reputational concerns plays when private family firms engage in earnings management.
Design/methodology/approach
The paper is conducted as an archival study using data from private limited liability firms in Norway over the period from 2002 to 2015. The dataset includes financial accounting data and data on family relationships between shareholders, board members and CEOs, where family relationships are determined through bloodlines, adoption and marriage, tracing back four generations and extending out to third cousins. To investigate the incidence of earnings management, the authors employ a measure of accrual-based earnings management (AEM) (Dechow and Dichev, 2002; McNichols, 2002) and a measure of real earnings management (REM) (Roychowdhury, 2006). They use whether or not the family name is included in the firm name (i.e. family name congruence) as a proxy for family members' identification with the family firm and their sensitivity to reputational concerns.
Findings
The authors’ results show that AEM is lower for family-named family firms. Moreover, their findings also indicate that family-named family firms are more likely to select REM over AEM, compared to nonfamily named family firms. This is even more pronounced when detection risk is high (high quality audit proxied by Big 4).
Research limitations/implications
The quality of the authors’ findings is limited to the validity of their proxy for family firm identification and reputational concerns (the family name included in the firm name). Even though findings from prior research suggest that family name congruence is a valid proxy for identity and reputational concerns (e.g. Kashmiri and Mahajan, 2010, 2014; Rousseau et al., 2018; Zellweger et al., 2013), future research should investigate the validity of these results using alternative proxies for family firm identification. Future research should also investigate whether the authors’ findings are generalizable to public family firms.
Practical implications
The authors’ results suggest that the risk of AEM is lower for family-named family firms, whereas the risk of REM is somewhat higher, compared to nonfamily named family firms. These results might be relevant for financial accounting users, auditors and supervisory and monitoring bodies when assessing the risk of earnings management.
Originality/value
The paper is, as far as the authors are aware of, the first to investigate the role of family name congruence and detection risk when private family firms select between AEM and REM.
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Since World War II, rates of type 2 diabetes (henceforth diabetes) have skyrocketed, leading to talk of an “epidemic,” believed to result from formerly “adaptive” genotypes…
Abstract
Since World War II, rates of type 2 diabetes (henceforth diabetes) have skyrocketed, leading to talk of an “epidemic,” believed to result from formerly “adaptive” genotypes colliding with “affluent” postindustrial societies – largely their food excesses and physically undemanding jobs. Hence, experts describe diabetes as a struggle between biology and behaviors – “genes-as-destiny” and “lifestyles-as-choice” – said to have spared no social group. However, racial and ethnic minorities and the poor are affected disproportionately.
In this paper I challenge the “genes–lifestyle” framework and argue that the epidemic, particularly its distribution, is produced not by affluence but by poverty. The cumulative effect of malnutrition or hyperglycemia during pregnancy, of stunting in young children, of structural constraints over healthy lifestyles, and of the lack of a right to adequate medical care, which are all the results of poverty, leads to diabetes and its complications, and to disparities in their distribution among social groups. Hence, diabetes disparities are not mere differences but differences that are avoidable, unnecessary, and unjust. I also highlight selected conceptual problems of the genes–lifestyle framework that mislead about the potential contributions of genetics to human health.
I conclude that because the roots of the diabetes epidemic lie in inequities in social power, the solutions required are not medical but political, and ought to concern a sociologically informed bioethics. I also conclude that insofar as dominant accounts of the diabetes epidemic ignore or downplay these roots, they will legitimize research and policies that reproduce or even increase diabetes disparities. The paper is part of a larger project on the political ecology of diabetes.
Looks at the first 100 years of Italian cinema examining its role in Italy’s recent history. Provides a bibliography of major film directors, Italian cinema sources, reference…
Abstract
Looks at the first 100 years of Italian cinema examining its role in Italy’s recent history. Provides a bibliography of major film directors, Italian cinema sources, reference works, histories, themes, theory and criticism and articles in journals.