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This paper investigates whether disclosure quality and a history of overpaying for acquisitions are associated with differences in the value-relevance of gains on bargain purchase with high disclosure prominence.

Findings are from multivariate regression results, using a sample of firms listed in South Africa from 2010 to 2019, where a mandatory earnings reconciliation provides high disclosure prominence for gains on bargain purchase.

Given high disclosure prominence, disclosure quality is not associated with differences in the pricing of gains on bargain purchase. Instead, most gains on bargain purchase are priced as future losses (unrecognised liabilities). However, when a firm has a history of overpaying for acquisitions, gains on bargain purchase are priced as transitory economic gains.

Further research is required to determine if overpaying for acquisitions similarly communicates the credibility of gains on bargain purchase when disclosure prominence is low.

Disclosure prominence can reduce disclosure processing costs and increase the value-relevance of complex acquisition accounting. High disclosure quality cannot compensate for a weak acquisition track record.

Findings deepen our understanding of the pricing of gains on bargain purchase. This paper presents empirical results that reconcile previously conflicting theoretical views of gains on bargain purchase (as unrecognised assets or as unrecognised liabilities), by shedding light on the role that a record of overpaying for acquisitions plays in the value-relevance of gains on bargain purchase.

This paper aims to investigate the pricing of discretionary earnings in South Africa. This is a unique setting, as South African listed firms also report mandatory non-GAAP earnings (“headline earnings”).

Results are based on multivariate regression analyses for South African firms that report from 2010 to 2019.

Findings show that the value-relevance of discretionary earnings exceeds that of both GAAP earnings and headline earnings. In addition, placement of discretionary earnings reconciliations communicates information about the decision-usefulness of earnings.

Discretionary earnings remain the most value-relevant earnings measure, despite the divergent decision-useful characteristics offered by headline earnings and GAAP earnings. Therefore, the most decision-useful earnings reflect unique industry or firm characteristics rather than the assurance arising from regulation.

The purpose of this paper is to investigate whether investors value the future growth from acquisitions and the subsequent realisations thereof accurately.

The paper calculates conventional and adjusted market-to-book ratios and investigates abnormal cumulative returns over 20 quarters after portfolio formation for a sample of Standard & Poor’s 500 firms using a hedge portfolio and regression approach.

Hedge portfolios formed using adjusted market-to-book ratios underperform conventional hedge portfolios over a five-year period. Dividing the hedge into its comprising elements reveals that the underperformance of the adjusted hedge is mainly caused by weaker returns from value firms.

Findings are specific to large firms in a specific setting, and future research is needed to determine if findings are equally applicable to other situations. Findings imply that investors underrate the growth from new acquisitions and overrate the extent to which this has materialised.

The paper highlights that the extrapolation of future growth rates should be carefully considered in any equity valuation of a firm with current or past acquisitions.

This paper shows that inaccurate valuation of the growth of new acquisitions and the realisation thereof is at least partially responsible for the value versus growth phenomenon. It shows that the accounting information could be improved and highlights the importance of extrapolating past growth rates with care.

This paper aims to investigate the extent to which different prices within the bid-ask spread are used for fair value measurements and evaluate the potential consequences thereof.

The paper investigates different Level 1 fair value measurements of exchange-traded funds’ (ETFs) equity investments. Using descriptive methods, it compares actual and stated fair value measurement policies. In addition, comparative value relevance of these measurements is investigated in regression analysis.

Most fair value measurements are based on closing prices, but stated accounting policies and actual measurements frequently differ. Results also show that the bid-close spread of underlying investments is value-relevant in determining the bid-close spreads of ETFs themselves.

Findings are specific to unleveraged ETFs, the sample country and sample period used and only apply to investments in listed equities. Conclusions from this study may assist in predicting market perceptions of the risk of listed equity portfolios.

This paper sheds light on the practical impact of the recent change in fair value measurement guidance.

This study provides evidence on the size of the bid-ask spread of actual investment portfolios and its potential impact. It shows that bid-close spreads of underlying investments are used to price the bid-close spreads of ETFs themselves and that stated and actual accounting policies often differ. Findings imply that standard-setters might be influenced by actual accounting practices.

Many changes that call for concerted social action were observed in society and business performance during the coronavirus 2019 (COVID-19) outbreak. The impact of digitization and customer participation was evident in providing medical guidelines, updates on government initiatives, education or the supply of essential services during lockdown in many countries. However, there were aberrations. The purpose of this study is to explore some consumers and firms' being better equipped for service co-creation than others, specifically during a pandemic; the different degrees of service co-creation and the possible outcomes of customer participation in the service context.

Qualitative study with 35 in-depth interviews of supply- and demand-side actors, with coding and analysis of interview transcripts was conducted.

The authors identify two levels of service co-creation: (1) service co-development and (2) service co-evaluation that are affected by customer capabilities and firm/institutional barriers. The outcome of service co-creation lies in the social, economic and experiential values thus created. A pandemic strengthens the effect of antecedents (customer capabilities and firm capabilities) on the co-creation process.

Managers can refer to the findings to manage customer engagements and co-creations effectively, especially during a pandemic.

The impact of the pandemic on the service co-creation process in an emerging market, and the antecedents (firm- and customer-side) and consequences (mutual value outcomes) of service co-creation and actor participation are explored.

Family businesses feature prominently in economies, including the South African wine industry, using websites to convey their family identity. This research paper aims to explore the family identity elements that family wineries use on their websites, their alignment and how these are communicated online.

Based on Gioia’s methodology, a two-pronged approach was used to analyze 113 wineries’ websites’ text using Atlas. ti from an interpretivist perspective.

South African wineries use corporate identity, corporate personality and corporate expression to illustrate their familiness on their websites. It is portrayed through their family name and heritage, supported by their direction, purpose and aspirations, which emerge from the family identity and personality. These are dynamic and expressed through verbal and visual elements. Wineries described their behaviour, relevant competencies and passion as personality traits. Sustainability was considered an integral part of their brand promise, closely related to their family identity and personality, reflecting their family-oriented philosophy. These findings highlight the integration that exists among these components.

Theoretically, this study proposes a family business brand identity framework emphasising the centrality of familiness to its identity, personality and expression. Using websites to illustrate this familiness is emphasised with the recommendation that family businesses leverage this unique attribute in their identity to communicate their authenticity.

This study contributes to understanding what family wineries communicate on their websites, specifically by examining the elements necessary to create a family business brand based on the interrelationship between family identity, personality and expression with familiness at its core, resulting in a proposed family business brand identity framework.