Miracle-dz/UniFAR-FTUs huggingface dataset:
How Visitor and Environmental Factors Influence Perceived Crowding?

This paper aims to investigate tourists’ perceptions of crowding and factors influencing those perceptions. The effects of visitor socio-demographic characteristics, economic factors, and destination situational characteristics are investigated. Questionnaire data were collected from a sample of 362 tourists at Pantai Cenang Beach, Langkawi Island. The results confirmed the significant effect of visitor socio-demographic characteristics on perceived crowding. Among the economic factors, although the findings did not confirm an effect for level of income, the results showed a positive effect for spending money per day on perceived crowding. Furthermore, the hypothesized effect of situational characteristics on perceived crowding could not be verified. In light of the absence of studies investigating the factors influencing perceived crowding using partial least squares–structural equation modeling, this study contributes theoretically and methodologically to the perceived crowding literature. Moreover, the results can assist the local authorities to understand the perceptions of tourists for future development.
Implications of Impairment Decisions and Assets’ Cash-Flow Horizons for Conservatism Research

Accountants examine multiple indicators when assessing whether individual assets are impaired. Different indicators predict cash flows over varying time horizons, and their importance varies with how far into the future individual assets are expected to generate cash flows. We predict that earnings exhibits asymmetric timeliness with respect to multiple indicators, including stock return, sales change, and operating cash flow change, which differentially explain write-downs of current assets, long-lived tangible assets, and indefinite-lived goodwill. We predict an interaction effect between indicators, such that the total impact of several consistent indicators is greater than the sum of their individual impacts. Empirical estimates for U.S. firms are consistent with our predictions and yield new insights about the effects of multiple indicators for both conservatism and impairment research. Our multi-indicator asymmetric models also change inferences about the relative explanatory power of economic factors versus reporting incentives in asset impairments.
Who Bears the Losses From Audit Failures? Evidence From an Individual Reputational Environment

While prior studies have explored auditors’ collective reputational losses following audit failures at either the firm or office level when only the audit firm/office identities are publicly available, there is relatively little evidence regarding what happens when individual partner information is public. It is conceivable that failed audit partners will suffer reputational losses due to their involvement in fraudulent reporting, but it is less clear whether non-failed partners in tainted offices will also suffer from reputational damage. Using individual partner identities in China, we first confirm that failed audit partners suffer significant reputational losses in terms of their difficulty to both retain existing clients and attract new clients. The market share of non-failed audit partners in tainted offices generally does not decline but rather increases due to a short-term labor capacity constraint. However, we find that non-failed auditors without past information to infer their capability bear reputational losses in terms of attracting new clients. The results suggest that clients use individual reputation to select auditors and use office reputation as a surrogate to infer quality for partners without a track record. This study provides indirect evidence that the public disclosure of partner names and records could provide potential benefits to audit clients.
Human Resources Turnover as an Asset Acquisition and Divestiture Process

We shed light on the drivers and consequences of turnover in human resources for the UK football industry. We employ an event study using daily panel data of player transfers for a group of listed UK football clubs. Our results suggest asymmetric wealth effects: the acquisition of players is associated with negative abnormal club stock returns while player sales have an opposite effect. According to our findings, shareholders perceive that football managers overpay to acquire human resources. Our discussion draws possible links to the corporate finance literature which deals with the purchase and sale of firms and assets.
Contrarian and Momentum Strategies: An Investigation with Reference to Sectoral Portfolios in NSE

Creating a profitable investment portfolio seems to be the challenging query faced by any investor. In an emerging economy like India, investors believe that picking an investment option is tedious as we have a wide variety of stocks from various sectors which witness sharp price movements resulting in volatility. The National Stock Exchange of India has formed several sectoral indices in order to provide a rational outlook to investors on the performance of various sectors. All these sectoral indices were created with high quality stocks from the respective sectors, which is extremely useful in identifying profitable investment opportunities for investors. This study is intended to form some investment strategies based on sectoral performance of stocks. Contrarian and momentum strategies are two major investment strategies widely debated by investment strategists across the world. All sectoral indices provided by N S E have been considered for the study. The period of study is between April 2009 and March 2015. The sectoral indices were studied on the notion that the test result will give a clear cut picture on the investment strategies to be adopted with stocks of various sectors. Results of the study confirm that short term contrarian effect exists in Metals, Auto, Banking and Energy sectors. So the investors should employ adequate are while investing with such sectors for the short term. In case of long term investments, due care should be employed while selecting stocks from the media sector. In addition to these observations, the test results produced evidence on the subsistence of momentum effect in the Indian stock market. Here buy 'past winners' and sell 'past losers' can generate extra profit.
Investors’ Responses to Management Getting Out Ahead of Negative Media Mentions: The Moderating Effects of the Issue’s Importance and Management’s Action Plan

We investigate the effects of management’s strategic disclosure choices when a company is faced with the prospect of a negative media mention. Crisis communications experts commonly advise managers to get out ahead of the media to increase management’s credibility. We use an experiment to examine how investors’ responses to management getting out ahead of a negative media mention is moderated by the importance the media gives the issue, and by management’s action plan. When the media gives the issue more importance, we find that investors form lower judgments of management’s credibility and of the company as an investment when management gets out ahead of, compared to responds after, the media with a plan to change course to control the issue. However, we find that investors form higher judgments of management’s credibility and of the company as an investment when management gets out ahead of the media with plans to stay the course, rather than change the course. When the media gives the issue less importance, we find that investors’ judgments are not sensitive to management’s strategic disclosure choices that we examine. Our study contributes to practice and to theory by documenting that investors’ responses to a strategy to get out ahead of a negative media mention jointly depends on the importance the media gives to the issue and management’s action plan to address the issue.
Restatement of CSR Reports: Frequency, Magnitude, and Determinants

We provide the first direct analysis of the reliability of the quantitative information disclosed in Corporate Social Responsibility (CSR) reports. We examine the frequency, magnitude and determinants of CSR report restatements for the Global Fortune 250 (G250) from 2006 to 2013. During this period, 39% of G250 CSR reports were restated, with a monotonic increase across time from 29% in 2006 to 53% in 2013. The median magnitude of line item restatement is 10%, with a bias toward overstatement. In our exploration of determinants and economic incentives associated with CSR report restatements, we find that restatement frequency is positively associated with firm environmental and social complexity and that restatements occur more frequently in firms that have reported a high level of social performance and have environmental targets. We also find that frequency of restatement is positively associated with firms that reside in strong law countries and have their CSR reports audited. Our analysis of reporting bias indicates a negative association between adoption of GRI reporting guidelines and the likelihood of an overstatement. We also find a positive association between having the CSR report audited and the likelihood of overstatements. Together, our results indicate that CSR information could be unreliable and firms that face pressure to perform well have more restatements. However, use of measurement guidelines helps restrict managers’ disclosure choices and thus prevents opportunistic choice of measurement methods. Auditors also appear to invest more time and effort to reduce over - rather than understatement of performance.
From ‘Vas ist Das?’ to ‘100 Anomalies’: A Review of Methodology

This paper endeavors to provide a review of methodology employed for studying four major anomalies over time – size effect, value effect, liquidity effect and standardized unexpected earnings (SUE) effect. First, the paper synthesizes a list of measures that have been employed to proxy each anomaly. Next, the asset pricing or other forms of models employed to study these anomalies have been summarized. Different ways in which returns have been measured forms the next heading. Finally, owing to the argument that poorly defined model components could also lead to evidence of anomalies, how literature has dealt various model components also forms the topic of discussion. The paper contributes to the body of literature by summarizing a substantial number of papers at one place, covering possibly all facets of stock market anomalies. However, the field is so vast that this review can by no means be considered exhaustive.
Information Imprecision

This study develops and applies a model-implied measure of information imprecision. We define information imprecision as the degree of noise in investors' prior beliefs about the firm's asset value based on the information set that is currently available. We present a model of credit default swap (CDS) spreads in which the term structure is a function of information imprecision. We exploit observable CDS spreads with short and long maturities to extract an empirical measure of information imprecision. We then examine the moderating role of our measure in two settings. First, we show that the equity market response to credit rating changes increases in the level of information imprecision before the announcement. Second, we show that bond-market professionals' ability to charge a premium to smaller investors, relative to larger investors, increases in the issuing firm's information imprecision. This evidence illustrates the broad applicability of our model-implied measure of information imprecision. JEL Classifications: D82; G14; G24.
Client Relationship-Building and Audit Quality

This paper presents a model of auditor-client relationship-building. Existing literature suggests that quasi-rents rising from long auditor tenure have a negative effect on auditor independence. In contrast to this conventional wisdom, our paper shows a positive effect of quasi-rents resulting from relationship-building on auditor independence. Prohibiting relationship-building takes away this benefit, and increases the likelihood of an auditor accepting an inaccurate, higher report. This is the first study analyzing the impact of client relationship-building initiated by auditors on audit quality.
Competition, Communication and Rating Bias

Abstract I compare the efficiency of different equilibria reached in a credit rating game that allows for communication between the issuer and two credit rating agencies (CRAs) prior to disclosing ratings. CRAs observe private signals that correlate with asset quality and can learn about each other’s signals by exchanging messages with the issuer. Conflicts of interest lead CRAs to provide biased ratings. When issuer messages are informative about signals, CRAs find it optimal to selectively offer biased ratings based on issuer messages. Messages are informative when the issuer discloses high ratings from both CRAs and profits more from increasing issuance than from selling its worst assets. The equilibrium in which only one CRA provides ratings leads to the highest efficiency when average asset quality is low, agency signals frequently disagree and asset payoffs are skewed.
Smart Beta, 'Smarter' Flows

Using U.S. and global data, we examine the impact of Smart Beta ETFs on active mutual funds. As Smart Beta ETFs become widely available and actively traded, active mutual fund flows become “smarter”, that is they become more sensitive to multi-factor alphas. Our findings demonstrate how product innovation changes investor behavior and the investment ecosystem. Specifically, multi-factor analyses have become more relevant in performance attribution, and closet factor funds have become targets for replacement by low-cost Smart Beta ETFs.
Legal Liability, Government Intervention, and Auditor Behaviour: Evidence from Structural Reform of Audit Firms in China

This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP), which removes the cap on the liability exposure of negligent auditors. By adopting this natural experiment, we document the following findings: First, after audit firms reorganize as LLPs, auditors are more likely to (1) issue modified audit opinions and going concern opinions, (2) constrain clients’ earnings management, and (3) charge a premium in audit fees, which suggest that exerting unlimited legal liability on negligent auditors improves both audit quality and audit fees. Secondly, the effect of the LLP adoption is more pronounced when auditors are from local audit firms, and clients are controlled by local governments. Further analyses suggest that the stock prices of clients react positively to the reform event, which indicates that LLP adoption improves the overall value of audits. In summary, our empirical findings are consistent with the argument that legal liability is able to effectively shape auditor behaviour in emerging markets where the other institutional mechanisms are relatively weaker and government intervention is heavy.
Political Connectedness and Management Forecast Disclosure

This study constitutes an examination of the effects of political connectedness on management forecast revisions. Two types of management forecasts (e.g. sales revenue and net income) are examined by focusing on the change in the Japanese government. Using Japanese soft contribution data as a proxy for political connectedness, the main results show that firms that are politically connected to the Liberal Democratic Party are less (more) likely to revise sales revenue forecasts downwardly (upwardly) when the Liberal Democratic Party is the ruling party. Political connectedness is found to have few effects on forecast revisions of net income. Sensitivity tests using the amounts of soft political contributions and the propensity score matching model show results like the main ones. Furthermore, other properties of management forecasts (e.g. forecast innovation, forecast errors, and forecast accuracy) are also examined. The results show that firms with political power issue their initial sales revenue forecasts in a more aggressive, more biased, and less accurate manner than those without.
Proper Liquidity Measures

Liquidity is easily perceived but not easily defined in financial markets. In this study, we present a class of liquidity measures called Proper Liquidity Measures (PLM). We prove that widely used measure such as percent quoted spreads and the Amihud measure fulfill our axioms. PLMs can be composed from the ratio of Generalized Deviation Measures to Negotiability Variables. We analyze specific measures and propose PLMs on the basis of semi-deviations. Two empirical exercises test the performance of these measures: a) the relationship between liquidity and implied volatility and b) common factors in liquidity and tail risk. Applications provide both support for the use of PLM and new insights on liquidity.
Determinants of Republications in the Brazilian Market: An Analysis Based on Earnings Management Incentives

The republication of the financial statements is considered a proxy for the quality of the accounting information, according to the literature on the subject (Dechow, Ge and Schrand, 2010). Therefore, the objective of this study was to analyze the relationship between the Hypotheses of Earnings Management and the Republications of the Financial Statements. The descriptive, documentary and quantitative research analyzed data from 344 companies listed on BM &amp; FBOVESPA from 1998 to 2014. The analysis was performed through panel data regression, testing the hypotheses that Compensation Package of the managers, the Level of Indebtedness and the Size of the company a effect the Republication of the Financial Statements. It was observed that the size, growth of assets, being audited by a Big4 and the adoption of IFRS had a positive and statistically significant effect on the probability of republishing the statements. On the other hand, the adoption of SOX, NivGov has negative and statistically significant effect.
Does IPO Free Small Firms from Their Debt Constraints?

This article examines the financial behavior of small and medium-sized enterprises (SME) that went public on Alternext during the years 2005-2013. The results show that growth SME’s have a limited debt capacity before going public (IPO). We found evidence suggesting that these firms modify their financial behavior after the IPO: SME’s use debt to fund small deficits but turn to equity when external financing needs are large. Even though informational asymmetry has been reduced, IPO does not allow them to raise their leverage ratio, giving evidence that SME’s are still financially constrained.
Cross-sectional variation in repurchase motives: evidence from repurchase frequency

I demonstrate that firms’ repurchase frequency predicts repurchase motives and helps separate firms that repurchase for signaling from firms that repurchase to control dilution. Infrequent repurchasers follow a flexible buyback policy and respond to changes in earnings in a timelier manner. Their repurchases signal undervaluation and convey new information. In contrast, frequent repurchasers are more likely to repurchase to control dilution caused by option compensation. They engage in repurchase smoothing and investors react less strongly to their repurchases. The growth in the proportion of firms that repurchase frequently explains why signaling and flexibility fail to account for growth in repurchases.
On the Relation between Squeezing and Evolution

The squeezing concept has been lately an object of scrutiny in the physical literature. Here we put in the mathematical form the idea that it may be essential for understanding the evaluation and interrelationship of physical systems. The squeezing is defined as a parameter process and then it is shown in what condition the squeezing and the evolution can be described in the same time scale. The meaning of this time scale is given with respect to a kinematics.
The Origins of the Classical Gold Standard: A Revisionist History

This paper situates the early history of the Bank of England in the 17th century environment where the circulation of specie-based coin caused it to wear down, prompting debasement by monetary authorities (Lane and Mueller 1985). Thus, the 19th Gold Standard was only possible because of prior institutional changes that made a fixed specie standard practicable: these changes included the 1696 recoinage that committed Britain to a fixed specie standard, the 1694 founding of the Bank of England that reduced the need for coin by substituting Bank notes as high powered money, and the reformation of the payments system that reduced the need for coin in local markets. In order to understand the value of introducing a bank-based money supply into a coin-based economy, this paper uses a liquidity frictions model to frame the discussion and to explore the important role played by the Bank of England in the British monetary system from the Bank’s earliest decades.
The Impact of Increased Managerial Discretion and of Adoption Disclosure Transparency on the Usefulness of Reported Revenues: Evidence from Accounting Standard Updates for Multiple-Deliverable Sales Arrangements

Although conceptual frameworks of the Financial Accounting Standards Board and the International Accounting Standards Board identify relevance and faithful representation as the fundamental qualitative characteristics of useful information, prior research suggests that revenue recognition accounting standards which restrict management discretion resulted in improved faithful representation but reduced relevance of reported revenues. We use the adoption of Accounting Standards Update (ASU) 2009-13 and ASU 2009-14 to examine the effects of increased management discretion to accelerate revenue recognition in multiple-deliverable arrangements. We find that increased discretion in revenue recognition results in an increase in the relevance of reported revenues without reducing faithful representation. We further examine whether managers’ strategic motivations influence the transparency of ASU 2009-13 and ASU 2009-14 adoption disclosure. Despite no evidence of a decline in faithful representation following the standards’ adoption, firms providing less transparent adoption disclosure are more likely than other firms with multiple-deliverable arrangements to opportunistically accelerate revenue recognition in the years after adoption when incentives are high. These results provide important evidence in assessing whether standards that allow greater discretion in revenue recognition affect the usefulness of revenues, and also provide evidence that strategic motivations to preserve flexibility in managing earnings influence the transparency of adoption disclosure.