The Information Content of Earnings Announcements in the European Insurance Market: An Event Study Analysis
Alberto Dreassi, Massimiliano Kaucic, and Giorgio Valentinuz
We contribute to the extensive literature on the relationship between earnings announcements and market reactions by investigating the European insurance sector, which presents a wide difference in transparency between quarterly and semi-annual/annual reports. We design an event-study analysis comprising over 900 events in the period 2009-2016, testing if investors react differently to the two subsets of reports. We find that quarterly reports result in signals on stock prices’ limited to few trading days, whereas semi-annual and annual reports produce bigger and more persistent impacts. Instead, we do not find evidence of differences impacting trading volumes. Our results are supportive of the recent EU decision to remove the obligation to publish quarterly reports to avoid short-termism and suggest that costs are greater than benefits for companies considering to adopt voluntary quarterly reports.
Keywords: Post-Earnings-Announcement Drift, Stock Prices, Volume Trading, Insurance, Event Study
Methods of Finding Business Partners of Manufacturing Firms in Japan
Nobuhiro Takahashi and Mita Takahashi
This paper addresses new methods of finding business partners for joint development in Japan. These methods create opportunities for a manufacturing firm, which has excellent technology, to find an appropriate business partner. We call these methods the Osaka model. In the model, a company finds a business partner among plenty of companies, while they establish mutual trust and solve higher levels of technological difficulties. The model shares strong points of both spot transaction and conventional co-development. In other words, this model takes advantages of both Western style and Japanese style inter-business relationship. This paper also argues the environment for encouraging the model. The area should be a place where you can obtain many sources of information. Increasing meetings or facilities on specific themes is an effective method to encourage the model in the area. In addition, a database with which each technological seed has been already arranged with their technological needs is beneficial for matching them. If such a database becomes a shared knowledge in the area, the model would be promoted.
Keywords: Joint Development, Technology Needs, Matching
Why Do Firms Repurchase Their Stocks? Evidence from an Emerging Market
Burak Pirgaip and Semra Karacaer
Though it has recently become a contemporary financial management tool, stock repurchase can be so dangerous that it may raise concerns about insider trading and manipulative transactions. In fact, such concerns underlie the most important critique of stock repurchase and justify its prohibition, at least its restriction, in several jurisdictions to date. Turkey, as one of these jurisdictions, has latterly been updated in order to allow open market stock repurchases with certain restrictive provisions. We intend to explore why Turkish firms decide to repurchase their stocks. Having employed a conditional logistic regression model, the results reveal that signaling hypothesis, i.e. undervaluation and positive information dissemination, and excess capital and free cash flow hypothesis, i.e. excess cash distribution, hold for Turkish companies.
Keywords: Stock Repurchase, Emerging Market, Conditional Logistic Regression, Turkey
The Relationship between Consumption Value and Voluntary Simplicity Lifestyle and Effect On Environmentally Responsible Consumerism
Hatice Aydin and Ipek Kazancoglu
Environmentally responsible consumerism is defined as consumers’ tendency to evaluate the environmental attributes of products before making buying decisions. Environmentally responsible consumerism is ethical consumption, and this consumption is affected by many factors. Two of these factors are voluntary simplicity lifestyle, and consumption values. Voluntary simplicity lifestyle is defined as a way of life that rejects the high-consumption, materialistic lifestyles, and affirms what is often called ‘the simplicity life’. Consumption value is defined as consumer’s overall assessment of the utility of a product and service. These values are defined as conditional, functional, emotional, social, and epistemic environmental values. In this study, it is aimed to examine the relationship between consumption value and voluntary simplicity lifestyle, and consider the impact of voluntary simplicity lifestyle and consumption values on environmentally responsible consumerism. The data were collected from undergraduates at Ege University in Izmir and Mus Alparslan University in Mus which are in the West and East of Turkey, respectively. According to the results, there is a relationship between consumption value and voluntary simplicity lifestyle and effect of these factors on environmentally responsible consumerism.
Keywords: Consumption Values, Voluntary Simplicity Lifestyle, Environmentally Responsible Consumerism
Prudential Constrains of Banks Lending Activities after Financial Crisis
Both economic practice and economic theory are interested in analyzing the role of financial sector in promoting the economic development and economic growth. Commercial banks are the most important financial institutions in bank-based economies. The lending activities of commercial banks are limited by regulatory framework, management decisions and credit capacities of borrowers. Regulatory framework has been limited lending potentials of commercial banks because of capital requirements and liquidity management costs. Information asymmetry and adverse selection in decision-making enforce commercial banks to implement credit rationing process even in case of social significance of investment projects. Social responsibility of commercial banks cannot be measured according to the risk-taking activities. Banking financial intermediations have to keep the value of savings deposits under control and protect the stability of financial system. This paper will analyze the risk structure and prudential constrains of bank lending activities. To employ the credit capacity of commercial banks, it is necessary to extend guarantee schemes or promote the alternative financing opportunities in sharing the risk of accelerated growth.
Keywords: Financial Crisis, Prudential Regulation, Bank Lending
Effect Of Directors’ Burnout Perception On Teamwork
Nezih Metin Ozmutaf and Meral Doganay
The main objective of the research is determining the perceptions towards the effect of burnout of principals in educational institutions in Izmir province on team works. The survey form prepared intended for the research, a face to face survey method is applied between the dates October 2016 – May 2017 within the frame of 148 principals in 87 schools of Izmir province. Following the research, the propositions towards emotional breaking, relational breaking and performance have been collected under sole factor. It has been concluded that exhaustion affects the team works negatively in terms of the factor and the propositions within the scope of it. Moreover, it has been defined that the results in point do not show difference in terms of gender, educational status, employment period, employment period as a director, vocational stress perception and personality structure.
Keywords: Exhaustion, Team Works, Training Directors
Reporting Corporate Social Responsibility: At The Pursuit Of Legitimacy – A Literature Review
Rim Lahbil and Rachid Wahabi
Since one of today’s business buzzwords is “Sustainability”, an increasingly large number of companies aim to generate a lasting competitive advantage by balancing the value creating process with the social and environmental challenges. Therefore, Corporate Social Responsibility (CSR) appears as the assertive voice in which corporate governance is expressed in terms of sustainable development. The widespread adoption of sustainability reporting (SR) confirms companies’ growing awareness of their social responsibilities. The researches previously conducted present mainly two drivers for sustainability reporting. Firstly, it is seen as a communication technique. Secondly, it is a legal obligation, driven by national and international laws. Thus, the credibility of sustainability reporting seems to be relevant to question. The literature review reveals that scholars and practitioners have largely focused on the determinants of this form of communication, used media, content and recipients. Although the reliability of the information has often been questioned, it is the least studied empirically. By adopting internal control mechanisms and privileging external audits, an arsenal of arrangements is used in order to improve the credibility and the transparency of social and environmental information. Through a theoretical and empirical synthesis of the literature exploring the SR research field, this paper answers two major questions: what value for the sustainability reporting and how can their legitimacy be assured? The findings imply that, subjected to various institutional and regulatory pressures, companies tend to adopt societal reporting practices. It is mainly intended to guarantee trust and reliability in the information transmitted to the public.
Keywords: Corporate Social Responsibility, Sustainable Reporting, Control, Legitimacy
Generational Perceptions of Price Ending Strategies: The Case of Mersin City
A. Celil Cakici, Alaiddin Kosar, and Lina Ozturk
Companies can use different pricing strategies to accelerate demand. Pricing strategies not only provide information to consumers but also profoundly affect their perceptions of products and services. Price ending strategies, for example, use prices that have a psychological impact. This study sought to identify and compare different generations’ perceptions of price ending strategies using data collected via a questionnaire based on the relevant literature. The population comprised people over 18 who live in Mersin, Turkey. Quota sampling was applied so that 100 respondents were chosen from each generation (i.e., Baby Boomers and Generations X, Y, and Z) and 200 people from each gender. The questionnaires were conducted face-to-face between April 15 and May 15, 2016. The data were analyzed using analysis of variance and correspondence analysis, as well as descriptive statistics. The results reveal that consumers’ perceptions of quality, discount, and image evoked by prices differ significantly by generation. The findings suggest that retail managers need to pay attention to the generational composition of their target market when using pricing strategies.
Keywords: Baby Boomers, Generation X, Generation Y, Generation Z, Price Ending Strategies
Aksemsettin Mah. Kocasinan Cad.
Erenoglu Is Merkezi
Fatih – Istanbul, TURKEY
Email: [email protected]
This work is licensed under a Creative Commons Attribution 4.0 International License.