Abstract
We investigate the behavior of shorts, considered sophisticated investors, before and after a set of Federal Reserve unconventional monetary policy announcements that spot bond markets did not fully anticipate. Short interest in agency securities systematically predicts bond price changes and other asset returns on the days of monetary announcements, particularly when growth or monetary news is released, indicating shorts correctly anticipate these surprises. Shorts also systematically rebalance after announcements in the direction of the announcement surprise when the announcement releases monetary or growth news, suggesting that shorts interpret these announcements to imply further yield changes in the same direction.
Business Perspectives and Research, Ahead of Print.
After COVID, Original equipment manufacturers (OEMs), suppliers, and distributors are seeking to streamline their local, and global supply chains, the issue has gained attention in how they identify, analyze and manage their procurement and supply chain processes with stakeholders. The use of supply chain adoption with green technology has been found to be preferred in international trade, which is forcing the Indian manufacturing, and services sector to realign their CSR (Corporate social responsibility) goals. Interviews have been conducted with a mix of manufacturing and service firms in India to map their sustainable procurement in green supply chain practices. The use of MAXQDA software for conducting thematic analysis to support the inductive theory and trend-building practices to know “what, why, and how” from interview responses. Each sector, manufacturing, and service showed distinct trends that divorce their approach to green SCM, and supply chain strategy for sustainable procurement though they have spread awareness about sustainable procurement with stakeholders, emphasizing economic benefits. Additionally, they pursued jointly to address environmental issues and extend societal benefits as a CSR effort. Variances in approaches in manufacturing are market-linked, time-based, and demand-driven while services firms showed green technology pledges as CSR initiatives along with an environmental emphasis in downstream SCM activities.
Abstract
Macroprudential instruments, especially sectoral instruments, are considered to be precise tools that work only in areas of concern. However, it has not yet been fully tested in practice whether they affect only the targeted sectors and do not have undesirable spillover effects on nontargeted sectors. To fill this gap, we empirically study the impact of an instrument called Quantitative Restriction (QR), a policy tool used in Japan in the 1990s to curb excessive land price rises by requiring banks to contain real estate lending. We use narrative records to construct QR shocks and estimate their impact using a factor-augmented vector autoregression (FAVAR). Our findings are summarized as follows. First, contractionary QR shocks reduced not only real estate lending and land prices, but also lending to other industries, putting downward pressure on the macroeconomy and lowering bank solvency. Second, industry groups and banks with balance sheets that were more exposed to changes in land prices and real estate transactions responded greater to these shocks, illustrating the role of balance sheet composition in spillovers and the importance of choosing the right timing for implementation following these shocks, suggesting that there may have been leakages through these institutions. Third, some nonbank financial institutions that were not required to report the loan results to the authorities did not reduce their lending following these shocks, which accords with the view that there were leakages through these institutions.
Abstract
Research on corporate social responsibility (CSR) and corporate social irresponsibility (CSIR) has long argued both affect firms' legitimacy, for good or bad. Such research has ignored how ex-ante corporate trustworthiness and associated attributions affect the association of CSR and CSIR on corporate normative legitimacy. Focusing on two unique aspects of corporate normative legitimacy evaluations – affect and misconduct – we argue that ex-ante perceptions of firm trustworthiness moderate the associations among CSR and CSIR and different aspects of normative legitimacy. Utilizing comprehensive panel-data analytical approaches for S&P 500 firms from 2000 to 2015, MSCI-KLD data, mass-media-based measures of firm trustworthiness, including normative affect-based legitimacy, and normative misconduct-related-legitimacy, our proposition is mostly supported, with surprising caveats. A post-hoc analysis shows these associations vary based on public versus investors' affective-legitimacy views. The findings of this study critically challenge extant scholarship and call for a nuanced view of the impact of CSR and CSIR on firm legitimacy.
Abstract
We examine the effect of corruption control on the volatility of economic growth using cross-country data that cover 131 economies worldwide for the period 1985–2018. To estimate the growth volatility model, we employ the system generalized method-of-moments estimator for dynamic panel data, which addresses potential endogeneity concerns using internal instruments. Our results show that corruption control significantly reduces growth volatility. This effect is robust to controlling for other measures of institutional quality. Moreover, we find some evidence for an indirect impact of corruption control on growth volatility through its role in reinforcing the volatility-dampening effect of financial development.
Business Perspectives and Research, Ahead of Print.
Despite broad evidence in the past demonstrating the relationships between personality traits and organizational citizenship behavior, research on organizational citizenship behavior from the perspective of emotional contagion has not received deserving attention to date. Drawing on the trait theory and affective event theory as an overarching reference, this study theorizes emotional contagion as a moderator by arguing that it improves the above relationship incrementally. This study conducted hierarchical multiple regression analysis to test the hypotheses and adopted the Johnson–Neyman method using SPSS PROCESS Macro to probe the pattern of the significant interactions. A total of 320 bank employees took part in the survey. The findings revealed, agreeableness and conscientiousness as significant predictors of organizational citizenship behavior. Furthermore, the above association was enhanced for employees at the conditional level of high emotional contagion. The study provides insight into recognizing the significance of employees’ emotional levels and their contribution to organizational growth.
