Reza Houston and Stephen P. Ferris
In this study, we examine the relationship between political connections of private firms and the initial public offering process. Using registration statement information, we…
Abstract
In this study, we examine the relationship between political connections of private firms and the initial public offering process. Using registration statement information, we create a unique database of politically connected IPO firms. We find that political connections are substitutes to high-quality underwriters and big four auditors. Politically connected firms manage earnings more highly upward than non-connected firms prior to the public offering. Politically connected firms also exhibit less underpricing than non-connected firms. Finally, politically connected IPO firms have superior post-IPO returns relative to non-connected IPO firms.
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Reza Houston and Stephen Ferris
The purpose of this paper is to analyze the value of corporate political connections resulting from the revolving door of employment between political office and the for-profit…
Abstract
Purpose
The purpose of this paper is to analyze the value of corporate political connections resulting from the revolving door of employment between political office and the for-profit corporation. The authors test whether there is value to firms from political connections provided by the appointment of former politicians to corporate boards or management teams. The authors also test to see if passage through the door in the other direction, from the corporate world to public office, generates value for firms. Do firms whose former employees gain public office earn excess returns following their appointment or election to these positions?
Design/methodology/approach
The methodology used in this study focusses on an empirical analysis of the political connections of US firms over the sample period 1996-2011. The analysis emphasizes the wealth effects associated with the announcement of hiring former politicians to corporate boards or the gaining of political office by former corporate employees.
Findings
The authors find that politicians becoming corporate directors is 2.5 times more common than corporate executives gaining public office. The authors determine that industries with extensive government regulation most often hire former politicians. The authors find that the office held by former politicians matters. The authors find that longevity in a cabinet position is important while formal Congressional or Senate leadership positions are not. Surprisingly, the authors determine the longer politicians are out of office, the more value they are able to provide to the firm. Finally, the authors discover that firms which hire former politicians have significantly positive long-term abnormal returns, but firms whose managers enter politics do not.
Originality/value
This study is highly original in its examination of political connections resulting from door swing in both directions. Further, the analysis of longevity, time out of office, and position held adds to the contributions made by this study.
Maryam Amini, Armin Mahmoodi, Leila Hashemi, Reza Kiani Aslani, Arash Taheri and Mohammad Kiani
The contemporary landscape of supply chains necessitates a comprehensive integration of multiple components encompassing production, distribution and customer engagement. The…
Abstract
Purpose
The contemporary landscape of supply chains necessitates a comprehensive integration of multiple components encompassing production, distribution and customer engagement. The pursuit of supply chain harmony underscores the significance of pricing strategies within the framework of dual-channel distribution, particularly when confronted with the dynamics of asymmetric demand performance.
Design/methodology/approach
This paper delves into a nuanced decision-making challenge anchored in a dual-channel distribution context featuring a retailer and two distinct products. Notably, the retailer’s decision-making process employs the computational framework of dual grey numbers, a robust tool for handling uncertainty.
Findings
This study revolves around applying game theory to manufacturers. Each manufacturer presents its aggregated price proposition to the retailer. Subsequently, the retailer identifies the optimal pricing configuration among the manufacturers' aggregate prices while adhering to constraints such as spatial classification and inventory costs. This article’s contribution extends to delineating the retailer’s capacity to discern the influence of product market potential and the aggregate product cost on the overall demand.
Originality/value
The model’s innovation lies in its harmonious fusion of spatial classification, pricing strategies and inventory control. Notably, this novel integration provides a platform for unraveling the intricate interplay between non-symmetric market potential, production costs and cross-sensitivity. The investigation is underscored by the utilization of the double interval grey numbers, a powerful computational approach that accommodates the inherent uncertainty pervasive in the domain. This study fills a gap in the existing literature by offering an integrated framework unifying spatial allocation, pricing decisions and inventory optimization.
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Bidyut Hazarika, Alan Rea, Reza Mousavi and Kuanchin Chen
This study aims to investigate patterns of social media posting occurring during the initial post-disaster recovery period. In addition, the study investigates the antecedents of…
Abstract
Purpose
This study aims to investigate patterns of social media posting occurring during the initial post-disaster recovery period. In addition, the study investigates the antecedents of user engagement with Twitter posts or “tweets.”
Design/methodology/approach
This study uses Hurricane Harvey as the research focus because of its $125bn in damage and the recovery effort associated with it. Analyzing nearly 38,000 tweets related to 2017’s Hurricane Harvey and specifically focuses on rescuers who became to be known as the “Cajun Navy.”
Findings
The popularity of the tweet significantly influences social media engagement; disaster relief organizations first should seek out alliances and partnerships with those who already are well-known or influential in social media. In addition, by regularly monitoring and participating in social media, such as encouraging retweets and mentions even when not responding to a disaster, agencies will gain social media followers and influence when these are most needed.
Research limitations/implications
By analyzing patterns of social media posts during and after Hurricane Harvey, this study attempts to quantify social media’s effectiveness during this disaster, in particular with a focus on what characteristics of Harvey-related Twitter posts most influenced user engagement.
Practical implications
Findings underscore the need for agencies to strengthen their social media presence and use it in all three phases of disaster conceptualization. Beyond managing communication with other agencies and the community, which alone is critical for an agency’s impact, social media offers the world as a potential audience for agencies that can deftly leverage it.
Originality/value
Social media has revolutionized not only communication but also inter-connectivity as people have normalized its use. Its ubiquity and efficiency have seen its incorporation into the critical area of emergency management, both during and after disasters. The main objective of this paper is to investigate and evaluate the usefulness of social media in disaster recovery efforts, focusing on its advantages in relation to a recent disaster event.
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Ken McPhail, Robert Ochoki Nyamori and Savitri Taylor
The purpose of this paper is to address two questions: first, what contracts, instruments and accounting activities constitute Australia’s offshore asylum seeker processing policy…
Abstract
Purpose
The purpose of this paper is to address two questions: first, what contracts, instruments and accounting activities constitute Australia’s offshore asylum seeker processing policy in practice? Second, how are notions of legitimacy and accountability mediated through the network constituted by this policy?
Design/methodology/approach
The paper is located in the critical interpretivist approach to accounting research. It is based on an exhaustive documentary analysis. Policy documents, contract documents, records of parliamentary inquiries (Hansard) and legislation were analysed drawing on a network policy perspective.
Findings
The paper finds that the Australian Government has sought to escape its accountability obligations by employing a range of approaches. The first of these approaches is the construction of a network involving foreign states, private corporations and non-government organizations. The second is through a watered down accountability regime and refusal to be accountable for the day-to-day life of asylum seekers in offshore processing centres through a play with the meaning of “effective control”. Yet while the policy network seems designed to create accountability gaps, the requirement within the network to remain financially accountable undermines the governments claims not to be responsible for the conditions in the detention camps.
Research limitations/implications
The paper focuses largely on the period starting from when Kevin Rudd became Prime Minister to the death in Papua New Guinea of asylum seeker Reza Barati on 17 February 2014. Earlier periods are beyond the scope of this paper.
Practical implications
The paper will result in the identification of deficiencies inhuman rights accountability for extra-territorialized and privatised immigration detention and may contribute towards the formulation of effective policy recommendations to overcome such deficiencies. The paper also provides empirical data on, and academic understanding of, immigration detention outsourcing and offshoring.
Social implications
The paper will inform debate regarding treatment of unauthorized maritime arrivals and asylum seekers generally.
Originality/value
The paper provides the first detailed and full understanding of the way Australia’s offshore asylum seeker processing policy is practiced. The paper also provides an empirical analysis of the way national policy and its associated accountability mechanisms emerge in response to the competing legitimacy claims of the international community and national electorate.
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Ali Dastmalchian, Paul Blyton and Mohamed Reza Abdolahyan
An empirical study is reported which examines the relationships between industrial relations climate and variables reflecting the state of the firm's performance, industrial…
Abstract
An empirical study is reported which examines the relationships between industrial relations climate and variables reflecting the state of the firm's performance, industrial relations structure, and overall effectiveness in 28 manufacturing companies. In addition to reporting the patterns of association between each of these aspects, multivariate analyses are employed in order to (i) ascertain the direct and indirect influences of industrial relations climate and other variables under study on company effectiveness, and (ii) examine the assumptions about the direction of causality between industrial relations climate and effectiveness. The results highlight the relationships between the above variables and emphasise the importance of conceptualising industrial relations climate in such a way that can adequately reflect the attitudes and behaviour of industrial relations actors. Path analysis suggests that the pattern of causality is not a simple one but involves reciprocal and feedback relationships. However, the mprovement to the explanatory power of company effectiveness by including the notion of industrial relations limate in research, is clearly demonstrated.
Seyed Reza Zeytoonnejad Mousavian, Seyyed Mehdi Mirdamadi, Seyed Jamal Farajallah Hosseini and Maryam Omidi NajafAbadi
Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies…
Abstract
Purpose
Foreign Direct Investment (FDI) is an important means of boosting the agricultural sectors of developing economies. The first necessary step to formulate effective public policies to encourage agricultural FDI inflow to a host country is to develop a comprehensive understanding of the main determinants of FDI inflow to the agricultural sector, which is the main objective of the present study.
Design/methodology/approach
In view of this, we take a comprehensive approach to exploring the macroeconomic and institutional determinants of FDI inflow to the agricultural sector by examining a large panel data set on agricultural FDI inflows of 37 countries, investigating both groups of developed and developing countries, incorporating a large list of potentially relevant macroeconomic and institutional variables, and applying panel-data econometric models and estimation structures, including pooled, fixed-effects and random-effects regression models.
Findings
The general pattern of our findings implies that the degree of openness of an economy has a negative effect on FDI inflows to agricultural sectors, suggesting that the higher the degree of openness in an economy, the lower the level of agricultural protection against foreign trade and imports, and thus the less incentive for FDI to inflow to the agricultural sector of the economy. Additionally, our results show that economic growth (as an indicator of the rate of market-size growth in the host economy) and per-capita real GDP (as an indicator of the standard of living in the host country) are both positively related to FDI inflows to agricultural sectors. Our other results suggest that agricultural FDI tends to flow more to developing countries in general and more to those with higher standards of living and income levels in particular.
Originality/value
FDI inflow has not received much attention with respect to the identification of its main determinants in the context of agricultural sectors. Additionally, there are very few panel-data studies on the determinants of FDI, and even more surprisingly, there are no such studies on the main determinants of FDI inflow to the agricultural sector. We have taken a comprehensive approach by studying FDI inflow variations across countries as well as over time.
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Amarjit Gill, Min Thu Maung and Reza H. Chowdhury
The purpose of this paper is to investigate the impact of social capital of non-resident family members on small business debt financing. Recent literature in entrepreneurship…
Abstract
Purpose
The purpose of this paper is to investigate the impact of social capital of non-resident family members on small business debt financing. Recent literature in entrepreneurship suggests that small businesses can borrow social capital to improve their access to debt financing.
Design/methodology/approach
Micro-entrepreneurs from India were interviewed regarding their ability to raise capital from family members as well as their relationship with banks and politicians.
Findings
The survey indicates that small business entrepreneurs are able to borrow social capital from non-resident Indians. Results also suggest that these small businesses are more likely to be connected to banks and politicians facilitated by their non-resident family members, which not only improves micro-entrepreneurs’ access to debt financing but also reduces their cost of borrowing.
Research limitations/implications
This is a co-relational study that investigates the association between social capital of non-resident family members and small business debt financing. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to firms similar to those that were included in this research.
Originality/value
This study contributes to the literature on the factors that improve the access to small business debt financing. The findings may be useful for financial managers, investors, financial management consultants, entrepreneurs, and other stakeholders.
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The apparent contemporary corporate model is that of a “responsible firm” – a firm that pursues not only profit and shareholder return but also considers the concerns and…
Abstract
The apparent contemporary corporate model is that of a “responsible firm” – a firm that pursues not only profit and shareholder return but also considers the concerns and interests of its social and environmental stakeholders. Research on corporate social responsibility (CSR), investor recognition via environmental, social, and governance (ESG) issues, and long-term sustainability has developed into an established field of study. We attempt to clarify the terminologies and models of this field by conducting a brief review of the existing work and suggesting an integrated conceptual framework for CSR, ESG, and sustainability in a domestic and global context. We suggest that externality and temporality are the drivers of this integrated framework.