Business Press Articles Research Articles

Fostering Economic Growth in Frontier Markets: Perceptions in The Tunisian Post-Arab Spring


 The need for economic reform is at the heart of the criticism for many frontier economies. Fostering entrepreneurship and identifying business opportunities generate paths for job creation and economic growth. Given the underlying tensions that led to the Arab Spring, our study focuses on the one country that is considered to be a post-Arab Spring success story and explores the Small-Medium Enterprise (SME) business environment in Tunisia. Perceived changes in the SME environment in Tunisia were examined qualitatively via in-depth personal interviews with 21 Tunisian economic experts. Analysis of the interview data followed the thematic analysis approach. Our findings indicate that social reforms and the development of financing alternatives should be paramount for the growth of SMEs and the economic success of frontier markets. Additionally, educational reform and communication to foster entrepreneurial behaviour and effective managerial practices are required to ensure that current and future generations are prepared to engage successfully in the formal economy. Although our research focused on a single frontier market economy, we believe these findings are generalizable to many emerging economies. The findings should hold considerable policy implications due to the nature of the reforms suggested. There are popular and business press articles about the post-Arab Spring and stories about Tunisia’s Jasmine Revolution; however, increased scholarly focus on entrepreneurial efforts post-Arab Spring in Tunisia will further solidify the intersection of economic gain and human development.

The Role of Business Press in Security Pricing: Initial Evidence from the Korean Stock Market

Prior studies document that media plays a significant role in the financial market by discovering and disseminating company information. However, whether and to what extent the media improves price efficiency remain unaddressed in Korea. Analyzing an unprecedented dataset of Korean business press articles from 2000 to 2017, we report that business press coverage is positively related to idiosyncratic volatility of stock returns, seemingly indicating the incorporation of firm-specific information into stock prices. We then ask whether or not the business articles convey relevant information consistent with firm fundamentals. Based on fundamental value-to-price ratios as a proxy for stock mispricing, we find robust evidence that 1) media coverage is in fact significantly associated with stock mispricing, 2) the mispricing in media-covered stocks is salient only for undervalued firms, and 3) the business articles covering undervalued stocks tend to use negative tones. These findings collectively suggest that the pessimistic tone of the Korean business press is associated with stock undervaluation. Our findings are consistent with prior literature that documents a sentiment effect of media coverage (e.g., Tetlock 2007). The initial evidence reported in this study not only provides practical insights for managers, market participants, and regulators, but also opens a new research avenue for future research.

The Determinants and Consequences of Information Acquisition via EDGAR

AbstractUsing a novel data set that tracks all web traffic on the SEC's EDGAR servers from 2008 to 2011, we examine the determinants and capital market consequences of investor information acquisition of SEC filings. The average user employs the database very few times per quarter and most users target specific filing types such as periodic accounting reports; a small subset of users employ EDGAR almost daily and access many filings. EDGAR activity is positively related with corporate events (particularly restatements, earnings announcements, and acquisition announcements), poor stock performance, and the strength of a firm's information environment. EDGAR activity is related to, but distinct from, other proxies of investor interest such as trading volume, business press articles, and Google searches. Finally, information acquisition via EDGAR, both to obtain earnings news and to provide context for it, has a positive influence on market efficiency with respect to earnings news. Overall, our results are important because they provide a unique, user‐based perspective on investor access of mandatory disclosures and its impact on price formation.

Who’s heard on the Street? Determinants and consequences of financial analyst coverage in the business press

This study examines the determinants of financial analyst coverage in the business press and the effects of such coverage on analysts’ careers. Using a sample of business press articles that quote a financial analyst, we compare each cited analyst with the other analysts who were actively following the same firm and could have been cited by the reporter but were not. In general, we find that analysts quoted in the business press are more likely to possess characteristics that prior research has found to be positively associated with analyst quality and that higher quality analysts are allotted more space in the articles. However, we cannot rule out the possibility that at least some of our analyst quality measures capture the effects of familiarity. After controlling for analyst quality and article tone, we find that analysts with unfavorable stock recommendations are more likely to be cited than analysts with favorable recommendations. We provide evidence of significant career benefits for analysts who receive publicity in the business press, which suggests that the press is a source of valuable exposure for analysts.

What Investors Want: Evidence from Investors’ Use of the EDGAR Database

Using a novel dataset that tracks all web traffic on the SEC’s EDGAR servers from 2008-2011, we examine the determinants and capital market consequences of investor information acquisition of SEC filings. The average user employs the database very few times per quarter and most users target specific filing types such as periodic accounting reports; a small subset of users employ EDGAR almost daily and access many filings. EDGAR activity is positively related with corporate events (particularly restatements, earnings announcements, and acquisition announcements), poor stock performance, and the strength of a firm’s information environment. EDGAR activity is related to, but distinct from, other proxies of investor interest such as trading volume, business press articles, and Google searches. Finally, information acquisition via EDGAR, both to obtain earnings news and to provide context for it, has a positive influence on market efficiency with respect to earnings news. Overall, our results provide a unique, user-based perspective on investor access of mandatory disclosures and its impact on price formation.

The Media and Mispricing: The Role of the Business Press in the Pricing of Accounting Information

ABSTRACT This study investigates the role of the business press in the pricing of accounting information. Using a comprehensive dataset of more than 111,000 earnings-related business press articles published from 2000 to 2010, we find that press coverage of the annual earnings announcement mitigates cash flow mispricing, but has a negligible effect on accrual mispricing. We provide evidence that this impact is driven primarily by the press disseminating the information more broadly, rather than by the creation of new content that helps investors understand the implications of accounting information. Our results suggest that the business press plays an important role in facilitating the market's ability to efficiently impound accounting information into stock prices and provide new insights into the role of the business press as an information intermediary in capital markets.

The Media and Mispricing: The Role of the Business Press in the Pricing of Accounting Information

This study investigates the role of the business press in the pricing of accounting information. Using a comprehensive dataset of more than 111,000 earnings-related business press articles published from 2000–2010, we find that press coverage of the annual earnings announcement mitigates cash flow mispricing, but has a negligible effect on accrual mispricing. We provide evidence that this impact is driven primarily by the press disseminating the information more broadly, rather than by the creation of new content that helps investors understand the implications of accounting information. Our results suggest that the business press plays an important role in facilitating the market’s ability to efficiently impound accounting information into stock prices and provide new insights into the role of the business press as an information intermediary in capital markets.

Who’s Heard on the Street? Determinants and Consequences of Financial Analyst Coverage in the Business Press

This study examines the determinants of financial analyst coverage in the business press and the effects of such coverage on analysts’ careers. Using a sample of business press articles that quote a financial analyst, we compare each cited analyst with the other analysts who were actively following the same firm and could have been cited by the reporter, but were not. In general, we find that analysts quoted in the business press are more likely to possess characteristics that prior research has found to be positively associated with analyst quality, and that higher quality analysts are allotted more space in the articles. However, we cannot rule out the possibility that at least some of our analyst quality measures capture the effects of familiarity. After controlling for analyst quality and article tone, we find that analysts with unfavorable stock recommendations are more likely to be cited than analysts with favorable recommendations. We provide evidence of significant career benefits for analysts who receive publicity in the business press, which suggests that the business press is a source of valuable exposure for analysts.

The global “war for talent”

Abstract In this paper we examine the “global war for talent,” the factors that impact it, and organizations' responses to it. Using a comprehensive search of more than 400 contemporary academic and business press articles, the paper reviews relevant research and reassesses the “talent war.” We posit that the dominant approaches to the “talent war” based on a scarcity state of mind and action, often characterized by a tactical and exclusive top talent or “star” focus, are being challenged by the emergence of a more evolutionary paradigm. This new paradigm adopts more strategic, innovative, cooperative and generative approaches which we describe as creative ‘talent solutions.’ The paper also highlights implications for future research, teaching and development in the field.

Intuition in strategic decision making: Friend or foe in the fast-paced 21st century?

Executive Overview Many executives and managers embrace intuition as an effective approach to important decisions. Indeed, recent surveys and business press articles indicate broad support for the use of intuition when making strategic decisions. The need for quick decisions, the need to cope with demands created by complex market forces, and the assumed benefits of applying deeply held knowledge combine to create strong perceived value for the intuitive approach. Intuition, however, has not been subjected to sufficient review, particularly in a forum for executives and other managers. This article responds to the need for critical evaluation. Utilizing holistic hunch and automated expertise as two fundamental definitions, our review evaluates intuition's costs and benefits in light of an organization's goals. Drawing evidence from the fields of behavioral decision making, strategic decision making, and mental modeling, our conclusions suggest intuition is a troublesome decision tool. To contribute to eff...

Financial accounting choice and earnings management

This paper presents a case that exposes students in graduate accounting or MBA financial accounting classes to the concepts of accounting choice and earnings management. In the case, students role-play as a manager who, facing conflicting incentives, must make and defend three expense estimates for a hypothetical company. Students also read selected business press articles that introduce earnings management and that highlight the importance of the issue to the business community. The articles give students some background from which to approach the choices they will make with respect to the financial statements.

Some Ideological Foundations of Organizational Downsizing

This article explores the ideological foundations of organizational downsizing in the 1990s and focuses on the ideology of employee self-reliance and the ideology of debureaucratization. We document these two managerial ideologies by examining business press articles and popular management literature in which they are being promulgated. Based on past organizational research that has traced the effects of ideologies on organizations, we argue that these two ideologies increase the likelihood of downsizing. This theoretical framework is developed, and its implications for future research, management practice, and government policy are discussed.

Business press articles and higher level learning skills in accounting courses

Proponents for change in accounting education have raised concerns over the effectiveness of education received by recent US accounting graduates and have defined a desirable set of skills required of accounting majors. These include effective reading, writing, analytical, conceptual thinking and critical thinking skills, an ability to solve problems in unstructured settings, an understanding of organizations, international and multicultural knowledge and the ability to resolve ethical dilemmas. Discusses in a US context how articles from the business press can be used in the classroom to develop the above skills in higher level undergraduate and graduate accounting courses. Through the use of articles discussing the Financial Accounting Standards Board (FASB) proposal on stock options, the relationship between the Securities and Exchange Commission (SEC) and the FASB, earnings manipulation by management, and international accounting, we describe how business press articles can be used to achieve the above‐mentioned learning objectives. Describes techniques which can also be applied in other countries with the instructor’s choice of locally relevant business press articles.

A Cross-Country Comparison of National and Corporate Public Issue Agendas: Exploring the Convergence Hypothesis.

A comparative analysis of business press articles relating to social issues in management and corporate social innovations finds wide differences among three otherwise comparable countries (U.S., Canada, France). These differences shed doubt on the validity of the convergence hypothesis. They are explained by differences in national policy styles and political culture.