Lisa Hinson, Jennifer Wu Tucker and Diana Weng
The rule change for segment reporting in 1998 has arguably made segment reporting more relevant through the adoption of the management approach. Meanwhile, the management approach…
Abstract
The rule change for segment reporting in 1998 has arguably made segment reporting more relevant through the adoption of the management approach. Meanwhile, the management approach has resulted in a decrease in the comparability of segment income. We introduce firmspecific measures of changes in relevance and comparability due to the rule change. Our treatment firms experienced an increase in the relevance of segment reporting but a large decrease in the comparability of segment income; our benchmark firms barely experienced any changes in relevance and comparability. We examine earnings forecasts before vs. after the rule change issued by financial analysts—a major user group of segment reporting. Relative to benchmark firms, treatment firms’ analyst forecast error reductions around the segment disclosure event are not significantly different after the rule change than before the rule change, but treatment firms’ forecast dispersion reductions around the segment disclosure event are significantly larger after the rule change than before the rule change. These results suggest that despite the decrease in comparability, the new segment reporting rule has increased the decision usefulness of segment information by decreasing disagreement among analysts.
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Xiaobei ‘‘Beryl’’ Huang and Luke Watson
We review research on corporate social responsibility (CSR) published in 13 top accounting journals over the last decade. We begin with a brief discussion of the data that…
Abstract
We review research on corporate social responsibility (CSR) published in 13 top accounting journals over the last decade. We begin with a brief discussion of the data that archival researchers have used to measure CSR. Next, we conduct our review in four parts: (1) determinants of CSR; (2) the relation between CSR and financial performance; (3) consequences of CSR; and (4) the roles of CSR disclosure and assurance. We summarize the accounting literature in these areas and comment on how accounting researchers can use their skill sets with regard to specific issues. Within each area, we present some suggestions for future CSR research in accounting.
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The accounting literature has traditionally focused on firm-level studies to examine the capital market implications of earnings and other accounting variables. We first develop…
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The accounting literature has traditionally focused on firm-level studies to examine the capital market implications of earnings and other accounting variables. We first develop the arguments for studying capital market implications at the aggregate level as well. A central issue is that diversification makes equity investors at least partially and potentially almost completely immune to several firm-level properties of earnings by holding diversified portfolios. Diversification is particularly important when assessing the welfare consequences of random errors in accounting measurement (imperfect accruals) and, to the extent it is independent across firms, of deliberate manipulation (earnings management). Consequently, some firm-level metrics of association, timeliness, value relevance, conservatism and other earnings properties do not map easily into investor welfare. Similarly, earnings-related risk manifests itself to equity investors largely through systematic earnings risk (covariation with aggregate earnings and/or other macroeconomic indicators). We conclude that the design and evaluation of financial reporting must adopt at least in part an aggregate perspective. We then summarize the literature in accounting, economics and finance on aggregate earnings and stock prices. Our review highlights the importance of studying earnings at the aggregate level.
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Dori A. Cross, Julia Adler-Milstein and A. Jay Holmgren
The adoption of electronic health records (EHRs) and digitization of health data over the past decade is ushering in the next generation of digital health tools that leverage…
Abstract
The adoption of electronic health records (EHRs) and digitization of health data over the past decade is ushering in the next generation of digital health tools that leverage artificial intelligence (AI) to improve varied aspects of health system performance. The decade ahead is therefore shaping up to be one in which digital health becomes even more at the forefront of health care delivery – demanding the time, attention, and resources of health care leaders and frontline staff, and becoming inextricably linked with all dimensions of health care delivery. In this chapter, we look back and look ahead. There are substantive lessons learned from the first era of large-scale adoption of enterprise EHRs and ongoing challenges that organizations are wrestling with – particularly related to the tension between standardization and flexibility/customization of EHR systems and the processes they support. Managing this tension during efforts to implement and optimize enterprise systems is perhaps the core challenge of the past decade, and one that has impeded consistent realization of value from initial EHR investments. We describe these challenges, how they manifest, and organizational strategies to address them, with a specific focus on alignment with broader value-based care transformation. We then look ahead to the AI wave – the massive number of applications of AI to health care delivery, the expected benefits, the risks and challenges, and approaches that health systems can consider to realize the benefits while avoiding the risks.
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Much of the research on the mental health impacts of the COVID-19 response have been focused on frontline healthcare workers (FHCW). However, other essential workers (OEW) have…
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Much of the research on the mental health impacts of the COVID-19 response have been focused on frontline healthcare workers (FHCW). However, other essential workers (OEW) have also faced many mental health challenges due to exposures associated with their employment status, which may be compounded by higher levels of social vulnerability. This chapter describes disparities among FHCW, OEW, and the general public regarding mental health outcomes associated with the pandemic. In addition, it considers the role that structural racism (e.g., historical redlining of neighborhoods and biased lending practices) plays in the higher vulnerability of OEW to the mental health impacts of the COVID-19 pandemic response. Mental health inequities overall, and among essential workers, must be addressed as part of the recovery from COVID-19 to build resilience to future public health emergencies. The model used by New York City to more equitably distribute mental health resources and support services is shared.
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This paper provides a quantitative review of the literature on the repercussions of idiosyncratic information on firms’ cost of equity (CoE) capital. In total, I review the…
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This paper provides a quantitative review of the literature on the repercussions of idiosyncratic information on firms’ cost of equity (CoE) capital. In total, I review the results of 113 unique studies examining the CoE effects of information Quantity, Precision and Asymmetry. My results suggest that the association between firm-specific information and CoE is subject to moderate effects. First, the link between Quantity and CoE is moderated by disclosure types and country-level factors in that firms in comparatively weakly regulated countries tend to enjoy up to four times greater CoE benefits from more expansive disclosure—depending on the type of disclosure—than firms in strongly regulated markets. Second, a negative relationship between Precision and CoE is only significant in studies using non-accrual quality proxies for Precision and risk factor-based (RFB)/valuation model-based (VMB) proxies for CoE. Third, almost all VMB studies confirm the positive association between Asymmetry and CoE, but there is notable variation in the conclusions reached when ex post CoE measurers are used.
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Gavriella Rubin Rojas, Jennifer Feitosa and M. Gloria González-Morales
Mindfulness-based interventions are on the rise in workplace settings to enhance Well-Being and address work stress. Their popularity is in part due to the fact that they are…
Abstract
Mindfulness-based interventions are on the rise in workplace settings to enhance Well-Being and address work stress. Their popularity is in part due to the fact that they are often assumed to have a net positive impact on both workers’ Well-Being and organizational functioning. However, the majority of workplace mindfulness practice and research focuses on individual-level mindfulness interventions and their associated outcomes, like reduced stress. However, the modern workplace is highly dependent on positive team functioning, and the impact of mindfulness in teams is lesser known. This review differentiates individual mindfulness from team mindfulness and explores how both individual and team mindfulness impact team functioning. The authors review mindfulness and teams’ literature to understand antecedents, correlated mediators, and consequences of mindfulness in team contexts, team processes, and the boundary conditions related to mindfulness outcomes. This review adds to the budding theoretical conversation regarding mindfulness at work and contributes valuable insight into the practical applications of mindfulness in teams.
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Kyu-soo Chung, Christopher Brown and Jennifer Willett
The purpose of this paper is to examine the factors that motivate Korean baseball fans to support Korean Major League Baseball (MLB) players and to identify the effects of the…
Abstract
Purpose
The purpose of this paper is to examine the factors that motivate Korean baseball fans to support Korean Major League Baseball (MLB) players and to identify the effects of the motivations on identification and behavioral loyalty.
Design/methodology/approach
Data were collected using a self-administered questionnaire at three Korean universities. A model was designed to see which three motivations (commitment to Korean baseball, interests in MLB and ethnic identity) affect loyalty behaviors to support Korean MLB players. In the model, the mediating effect of player identification is set to the relation between the three motivations and behavioral loyalty. The moderating effect of team identification is also set to the relation between player identification and behavioral loyalty. Collected data (n=294) were first analyzed via confirmatory factor analysis to ascertain the factor structure of the study model. Then, the study performed a structural equation modeling which finds the magnitude and significance of each causal path among designed factors.
Findings
All the effects were found to be significantly positive except team identification whose moderating effect was not significant. Interests in MLB had the greatest impact on the fan’s player identification followed by commitment to the Korean baseball league and their ethnic identity. It was also found that the influence of player identification was positive on behavioral loyalty.
Originality/value
This work can help MLB expand their fan base internationally, especially in Asian countries.
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Sun-Ae Cho and Yu Jung Jennifer Jeon
As branded apps emerge as a marketing tool in the foodservice industry, the effort to manage them increases in the long term. This study aims to explore the determinants to…
Abstract
Purpose
As branded apps emerge as a marketing tool in the foodservice industry, the effort to manage them increases in the long term. This study aims to explore the determinants to continue the use of foodservice apps by adopting the post-acceptance model (PAM) of information systems continuance and the theory of planned behavior (TPB).
Design/methodology/approach
Based on a sample from a survey of 329 participants who use foodservice apps, a structural equation model analysis tested the relationships between the core constructs of both models.
Findings
The findings revealed the user confirmation of expectation leads to continued use of the app through satisfaction. Perceived usefulness, a key technology acceptance measure, however, has no direct effect on usage but on attitude. Among the salient behavioral beliefs of the TPB, only attitude and perceived behavioral control promoted continued use of the foodservice apps.
Practical implications
The study provided a framework to establish a practical strategy for foodservice firms by specifying important aspects, which induce the use of branded apps. Given that it is vital to meet users’ expectations to build branded-app loyalty, continuous interaction with users is required along with customized marketing.
Originality/value
On the basis of the PAM and the TPB, the findings contributed to developing and testing a model that motivates users to continue the use of foodservice branded apps. The study is significant, in that it enriched the PAM by integrating cognitive aspects to explore the psychological mechanisms in the post-adoption phase of foodservice app users.
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Ada Leung, Huimin Xu, Gavin Jiayun Wu and Kyle W. Luthans
This paper aims to examine a type of interorganizational learning called Industry Peer Networks (IPNs), in which a network of non-competing small businesses cooperates to improve…
Abstract
Purpose
This paper aims to examine a type of interorganizational learning called Industry Peer Networks (IPNs), in which a network of non-competing small businesses cooperates to improve their skills and to stay abreast of the industry trends, so that the firms remain competitive in the local and regional markets. The key characteristic of an IPN is the regular gathering of peers in small groups (typically 20 or fewer carefully selected members) in an atmosphere of significant trust, guided by a facilitator, to participate in a series of formal and informal activities through established guidelines, to share knowledge about management and marketing, exchange information about industry trends beyond their core markets, discuss issues related to company performance and provide constructive criticism about peer companies.
Design/methodology/approach
The qualitative research on the context included visits to 13 peer meetings, three workshops for peer members, seven semi-structured interviews with members and many communications with the founder, chairman, committee chairpersons and several facilitators of peer meetings that spanned across five years. Data collection and analysis followed grounded theory building techniques.
Findings
The authors identified both cooperative and competitive learning practices that a small business could carry out to grow from a novice to an expert IPN peer member. The cooperative elements such as peer discussions, disclosure of financial data and exposure to various business models allow member firms to learn vicariously through the successes and/or failure of their peers. At the same time, the competitive elements such as service delivery critiques, business performance benchmarking and firm ranking also prompt the members to focus on execution, to emphasize accountability and to strive for status in the network. The IPN in this research has also built network legitimacy over time, and it has sustained a viable administrative entity that has a recognizable form and structure, whose functions are to strategically manage network activities and network growth to attract like-minded new members.
Research limitations/implications
First, because this research focused on fleshing out the transformative practices engaged by IPN peers, it necessarily neglected other types of network relationships that affect the small businesses, including local competitors, vendors and customers. Second, the small employment size of these firms and the personal nature of network ties in the IPN may provide an especially fertile ground for network learning that might not exist for larger firms. Third, the technology-intensive and quality-sensitive nature of IT firms may make technological trend sensitization and operating efficiency more competitive advantages in this industry than in others. Finally, although participation in IPN is associated with higher level of perceived learning, the relationship between learning and business performance is not yet articulated empirically.
Practical implications
The study contributes to the understanding of cooperative/competitive transformative practices in the IPN by highlighting the defining features at each transformation stage, from firms being isolated entities which react to market forces to connected peers which proactively drive the markets. IPNs are most effective for business owners who are at their early growth stage, in which they are positioned to grow further. Nevertheless, the authors also present the paradoxical capacity of IPNs to propel firms along trajectories of empowerment or disengagement.
Social implications
As 78.5 per cent of the US firms are small businesses having fewer than 10 employees, the knowledge of firm and IPN transformation is important for both researchers and advocates of small businesses to understand the roots of success or failure of firms and the IPNs in which they are embedded.
Originality/value
Earlier research has not explored the network-level effects as part of a full array of outcomes. Instead, research involving IPNs has focused primarily on the motivation and immediate firm-level outcomes of IPNs. Research to this point has also failed to examine IPNs from a developmental perspective, how the firms and the IPN as a network transform over time.