Industry-wide Information Research Articles

Европейский опыт внедрения BIM-технологий в строительном секторе

Introduction. Building information modeling is key to the digital transformation of the construction industry. By maintaining ­­ a transparent and continuous flow of information between all stakeholders, BIM facilitates their collaboration at various stages of a project. This leads to significant efficiency gains at lower costs, faster delivery with fewer inaccuracies and delays, better business opportunities, and lower emissions and waste. The purpose of the study is to identify patterns in the formation of new industry-wide information processes and to formulate the main barriers to their implementation in the project practice. Materials and methods. The author studied the scholarly publications of domestic and foreign researchers. Since this scope of problems was formulated in the recent decade, materials, published during this period, were considered. Theoretical methods of research were employed: analysis, which allowed the author to break down an extensive information base on the EU countries; classification, which made it possible to identify the main levers for implementing new technologies; analogy, which identified similarities in the development of innovations; synthesis, which generated a general idea of the stages of forming new phenomena in the design of construction projects. Results. The author made a comparative analysis of the introduction of new technologies in the EU countries depending on the centre-periphery patterns, drew a parallel between the information processes in Russia and European. He also formulated the main drivers of the introduction of innovative development in the construction sector and decelerating factors based on a 10-year history of the implementation of BIM in European countries. Conclusions. The implementation of BIM in the construction sector is often limited. The main barriers are related to interoperability, compliance for all users, workflow changes, legal issues and training, and the emergence of new rights and responsibilities.

Developing industry-wide information management capabilities in British Columbias tree fruit industry

Developing industry-wide information management capabilities in British Columbias tree fruit industry

European solvent VOC emission inventories based on industry-wide information

The European Solvents Industry Group (ESIG) has established volatile organic compound emission inventories for solvents for individual countries or groups of countries within the European Union for 2008, 2009, 2013 and 2015. A top-down approach has been adopted starting with EU-wide solvents industry sales data as supplied by solvent manufacturers, to which atmospheric release factors were applied for each solvent use sector. ESIG total solvent emissions for the EU ranged from 2159 thousand tonnes year−1 in 2008 to 1981 thousand tonnes year−1 in 2015. Comparison with internationally-agreed solvent emissions suggests that official estimates of total solvent emissions across the EU are over 30% too high by comparison with ESIG estimates and showed too high a trend with time. Using official statistics on chemical exports and imports for each country, ESIG has been able to compile solvent emissions for each European country or groups of countries. The over-estimation by the internationally-agreed solvent emissions compared with the ESIG estimates for Europe as a whole was mirrored in the individual country estimates for 2008, 2009, 2013 and 2015. No simple, uniform relationship between national solvent emissions and per capita population for either total or domestic sector solvent emissions was found. Assumption of uniform solvents emission factors on a per-head of population basis, has led to the introduction of inaccuracies in internationally-agreed solvent emission inventories. More detailed work with Member States has shown that non-solvents are also being included in the official solvent VOC inventories-indeed these VOC inventories are for ‘solvents and other product use’.

The Speed With Which Analysts Incorporate Firm-Specific and Industry Information in Their Forecasts: Evidence and Implications

We separate analyst forecast revisions into components representing industry-wide and firm-specific news. Using the relation between analyst forecast revisions and upcoming news to estimate how completely analysts incorporate their private information in their forecasts, we show that analysts incorporate a smaller proportion of industry-wide news than firm-specific news in their forecasts, particularly when the underlying news is bad. Post-forecast-revision drift is strongly associated with the private industry-wide information that analysts withhold from their forecast revisions. Furthermore, analysts’ information withholding varies predictably with their incentives. Unlike prior research that attributes post-forecast revision drift to delayed market response to news in forecast revisions, our findings suggest that the drift arises because investors are unable to anticipate the news that analysts withhold from their forecast revisions. Our study sheds light on analysts’ role in conveying firm-specific and industry-wide news to investors and on the implications for post-forecast-revision drift.

Do open-market stock repurchases convey firm-specific or industry-wide information? Evidence from REITs

This study examines the extent of firm-specific and industry-level information conveyed in open-market stock repurchases announced by REITs. We measure information revealed in open-market stock repurchase announcements using stock return and decompose the stock return into firm-specific, industry-wide, and market components. We find that the announcement period return is mainly attributed to the firm-specific component. However, long-term returns following the announcement are largely due to the industry return components. We also find that changes in profitability are not related to the announcement abnormal return. Our results suggest that the repurchase signal is about the intrinsic value of a REIT rather than the REIT’s future prospect. Moreover, the repurchase signal is fully incorporated into the pricing process at the announcement.

Credit Risk Under Common Ownership: The Benefit and Threat of Powerful Shareholders

Existing studies show that common institutional ownership of multiple industry firms improves governance over management, because such common owners possess industry-wide information advantage and governance expertise. This paper studies whether creditors perceive common owners as allied monitors or potential powerful expropriators. I find that creditors impose less restrictive covenants on loans to firms with higher common ownership. A quasi-natural experiment using financial institution mergers suggests that the relationship is likely to be causal. This effect of common ownership is mainly pronounced in firms with more financial risk, weaker shareholder governance, and lower creditor bargaining power. Overall, these findings indicate that creditors benefit from better governance by common owners, and therefore exert less monitoring effort in firms with higher common ownership.

Informational Consequences of Mandatory IFRS Adoption in China

In China, International Financial Reporting Standards (IFRS) have become mandatory for listed firms in 2007. While earlier research on “voluntary” adopters has provided valuable insights on the impact of IFRS disclosure, these results cannot be generalised in a mandatory setting. We expect effects from mandatory IFRS adoption to be different from those documented for voluntary IFRS adopters since the former group is essentially forced to adopt IFRS. The empirical model, relating to stock price synchronicity with adoption of IFRS, and other firm-specific control variables were analysed using both univariate and multivariate techniques. Different types of panel data estimates were used and compared so as to interpret the results with the best-suited parameters for different data sets for different markets. Studying data covering the period from 2001-2013, the present study examines whether mandatory adoption of IFRS reduces Stock Price Synchronicity for Chinese firms. The empirical results show that IFRS adoption improves information environment by the capitalization of firm-specific information into stock prices, thereby reduces the Stock Price synchronicity. The paper further examines if the information impact was homogeneous across industries. This pattern of decrease in stock price synchronicity after adoption of IFRS is different for different industries taken for analysis. Aerospace & Defense, Automobiles Beverages, Metals & Mining, Retailer& Real Estate Operations have reduced synchronicity but other industries such as Biotech, Electric utilities, Electronic, Leisure products, Renewable energy and Telecom have increased synchronicity. For these industries, the low reliance on market wide information makes reasonable economic sense because they have relatively low demand elasticity. Hence, in demand inelastic industries, future price sensitive factors remain constant and so a changed IFRS accounting regime has little marginal impact. This study provides a different methodological approach by concentrating on Industry wide information effects from the mandatory adoption. These findings have important implications that apply not only to China, but also to other emerging and transitional economies such as India where IFRS is yet to be mandated. Moreover it will help regulators, academicians and practitioners to assess the informational benefit of adopting IFRS.

The Effect of Disaggregate Information on the Expectation Formation of Firms

This paper studies a new aspect of firms' expectation formation by asking whether expectations primarily reflect aggregate, industry-wide information (e.g., industry trends) or disaggregate information (e.g., firm-specific information). First, we show that disaggregate information is strongly associated with expectations even when controlling for aggregate information at high-dimensional industry levels. Moreover, aggregate and disaggregate information explain comparable shares of the variance in expectations. Second, we exploit a natural experiment to identify the causal effect of new information on expectations. The predictable demand effects for durable goods due to the German VAT increase of 2007 implied that, at the time, durable goods retailers had access to more reliable information about their future demand than non-durable goods retailers. Utilizing this observation in a difference-in-differences design, we find that treated firms were significantly more forward-looking ahead of the VAT-induced demand shifts. Overall, our results suggest that firms rationally incorporate disagreggate information into their expectations.

2015 Air Medical Safety Survey

The 2015 Air Medical Journal Safety Survey compiled industrywide information on elements of critical care helicopter safety. This survey sought to quantify and track trends in medical helicopter safety-related equipment and safety practices, using the FAA mandatory changes for 2017-2018 and previous National Transportation Safety Board (NTSB) recommendations. This article is a quantitative representation of the survey findings for the purpose of illustrating trends; it intentionally does not interpret the findings.

Common-wide information flow in CDS markets: The case of earnings surprises of industry leaders

ABSTRACTThis paper examines the way common-wide information is disseminated in credit default swap (CDS) markets. I find strong supporting evidence that earnings announcements of CDS references with greater liquidity and higher credit risk help in predicting the subsequent CDS spread movements of their industry peers. This is consistent with the notion that the earnings announcements of certain firms may contain valuable market- and industry-wide information, which may be utilised afterwards to appraise the financial situation and the creditworthiness of industry peers, thereby influencing their CDS rates. Another major finding is that this common-wide information seems to be impounded with a lag into the CDS rates of industry peers. That pattern appears to be more pronounced for negative than for positive earnings surprises. The lag in the response to earnings surprises is higher among firms of the financial, cyclical consumer and energy sectors, and almost non-existent for firms of the sectors of technology and utilities. Attention costs and market frictions seem to fuel the pattern of under-reaction of CDS spreads to these earnings announcements.

Editorial

As this issue is published, academics in the UK will be eagerly awaiting the December results of the 2014 Research Excellence Framework. This activity, undertaken every 5–6 years, informs the distribution of around £1.6bn annually in government ‘quality-related’ research funding. Assessed by peer reviewers including research users, the outcome not only directly affects funding but also the eligibility to bid for other government funding and studentships, and perhaps most importantly, reputation. Reputation not only affects student applications and the ability to attract exceptional staff, but also enables or inhibits the forming of research partnerships at home and overseas. The task is substantial, not only on the institutions submitting but also on the review process. Universities submitted the research of 52,077 academics across 36 units of assessment to the Research Excellence Framework and, for the first time, each unit had to submit a number of research impact case studies, which would determine 20% of the final result. Research impact – what we get for our inputs – is assuming greater prominence around the world. An AIS Senior Scholars' panel considered the issue at ICIS in Milan and a report of that event will be published soon. In parallel, ISJ will be announcing its contribution to enhancing research impact as part of our 25th anniversary editions in 2015. We hope to contribute not only to disseminating research impact, but also to understanding of the concept itself – the nature of impact, how it is manifest and how it is measured. If scholars can publish research impact papers in top journals, others will be able to build upon this and we will all be better prepared for funders' questions as to what they get for their money. Turing to this issue of ISJ, our first paper by Kai Reimers, Mingzhi Li, Bin Xie and Xunhua Guo investigates how industry-wide information infrastructures emerge. Such structures are of increasing interest to policy makers, especially in sectors such as the healthcare sector where they are believed to contribute cost containment and improved service quality. However, the emergence and evolution of industry-wide information infrastructures is poorly understood, as the information systems literature tends to focus on smaller units of analysis such as projects, organizations or networks. Reimers et al. propose a combined company-level and industry-level framework to shed light on the process of industry-wide information infrastructures' emergence. They demonstrate that these structures' emergence is linked to the industry life-cycle in the case of fragmented industries. The paper explores the relationship between the industry-level and company-level life-cycles in the emergence process and develops a novel proposition regarding this relationship. The findings suggest that current policy initiatives to promote the development of industry-wide information infrastructures do not take sufficient consideration of industry-level conditions. Birgitta Bergvall-Kåreborn and Debra Howcroft assess persistent problems and practices in information systems development. This second paper studies mobile applications development and distribution. The substantial take up of mobile technologies has led to the re-structuring of the mobile market. This has engendered major shifts in the predominance of particular firms and has seen the emergence of new business models. These socio-technical trends significantly influence and shape software professionals' working lives. Building on prior research investigating the persistent problems and practices of systems development, Bergvall-Kåreborn and Howcroft examine mobile applications development and distribution by employing a qualitative study of 60 developers based in Sweden, the UK and the USA. The study analyses problems of diversity, knowledge and structure and reveals how platform-based development in an evolving mobile market represents significant changes at the business environment level. These changes permeate and accentuate current trends and developments leading to persistent problems intensifying and new challenges facing software developers. In the final paper in this issue entitled ‘Educating reflective Enterprise Systems practitioners: a design research study of the iterative building of a teaching framework’, Eli Hustad and Dag Olsen report on the iterative design of a teaching framework developed for teaching enterprise systems classes to information systems graduates. Enterprise systems embed technical complexity and create organizational challenges for organizations when implemented. Thus, teaching enterprise systems classes well is pedagogically challenging, and students tend to find the curricula difficult. Hustad and Olsen have designed and rebuilt curricula and teaching frameworks over the last 8 years resulting in the development of a set of eight design principles. They report their design and evaluation process and present a teaching framework. The aim is to educate reflective practitioners with multiple enterprise systems skills. The intention is to enable students to tackle the complexities of enterprise systems implementation contexts. The framework has implications for IS educational research and practice, and it may be transferable to other academic institutions and adaptable to other IS learning environments. In addition, this work contributes to IS design research by extending its application area.

Are Credit Rating Announcements Contagious? Evidence on the Transmission of Information across Industries in Credit Default Swap Markets

The aim of this article is to empirically test for the presence of intra-industry informational transfers (IIIT) induced by rating signals in the markets for corporate credit risk. In particular, the author studies the intra-industry credit default swap (CDS) spread responses to credit rating announcements made by Standard &amp; Poor’s (S&amp;P), Moody’s Investors Service, and Fitch Ratings between January 2003 and March 2011. He finds statistically and economically significant industry spread responses to the announcements made by S&amp;P and only marginally significant and insignificant industry spread responses to the rating signals of Moody’s and Fitch, respectively. This suggests that S&amp;P announcements contain the largest component of industrywide information. In the case of S&amp;P, the author observes strong evidence in favor of contagious IIIT, implying that on the day of an announcement, industry abnormal spreads tend to move in the same direction as event-firm spreads. This finding holds across all four types of rating events, in particular for cases in which the event-firm spread reaction has its predicted sign (positive [negative] spread change in the case of negative [positive] rating news). The magnitude of industry peer reaction (to S&amp;P announcements) is found to be about 6% of the event-firm abnormal spread change. Stratification and multivariate regression analyses reveal a rich pattern of IIIT behavior across several event-firm, event, and industry characteristics. For negative rating events, contagious IIIT effects tend to be stronger when event companies (a) are relatively large (only in the case of downgrades), (b) come from industries with large industry peers, (c) have a high degree of cash-flow similarity with their industry peers, (d) are highly leveraged, (e) have higher than industry-average credit rating before the event, and (f) come from relatively creditworthy industries. For positive rating events, the contagious IIIT effects tend to increase with (a) industry-peer cash-flow similarity, and (b) degree of financial distress, characterized by below-average event-firm credit quality and low average industry credit quality. These results contribute to the understanding of credit risk correlations and are consistent with recent theoretical models of credit risk correlations of Giesecke [2004] and Collin-Dufresne et al. [2010a]. <b>TOPICS:</b>Credit default swaps, information providers/credit ratings, credit risk management

Earnings Quality and Price Synchronicity: Industry-Wide and Firm-Specific Information

We investigate the association between earnings quality and price synchronicity. Price synchronicity captures the extent to which a firm’s returns are explained by market and industry returns, implying that low price synchronicity could be a result of less industry-wide information impounded into prices. However, an increasing number of recent studies use low price synchronicity as an indication of more firm-specific information being impounded in stock prices. Due to the converse effects of industry-wide and firm-specific information on price synchronicity, the relation between earnings quality and price synchronicity should depend on whether industry-wide or firm-specific information dominates the variation of price. Findings in previous studies imply that high analyst coverage leads to a domination of industry-wide information. Accordingly, we find price synchronicity increases with earnings quality for firms with high analyst coverage; consistent with higher earnings quality leads to more industry-wide information. For firms with no or low analyst coverage, we find price synchronicity decreases with earnings quality; consistent with higher earnings quality leads to more firm-specific information. Our findings are robust with multiple measures of earnings quality, using future ERC approach and controlling for endogeneity.

Are Credit Rating Announcements Contagious? Evidence on the Transmission of Information Across Industries in Credit Default Swap Markets

The aim of this paper is to empirically test for the presence of intra-industry informational transfers (IIIT) induced by rating signals in the markets for corporate credit risk. In particular, we study the intra-industry CDS spread responses to credit rating announcements made by S&P, Moody’s, and Fitch between January 2003 and March 2011. We find statistically and economically significant industry spread responses to the announcements made by S&P, and only marginally significant and insignificant industry spread responses to the rating signals of Moody’s and Fitch, respectively. This suggests that S&P announcements contain the largest component of the industry-wide information. In the case of S&P, we observe strong evidence in favor of contagious IIIT, implying that on the day of announcement the industry abnormal spreads tend to move in the same direction as the event- firm spreads. This finding holds across all four types of rating events, and in particular for the cases in which the event-firm spread reaction has its predicted sign (positive (negative) spread change in the case of negative (positive) rating news). The magnitude of the industry peer reaction (to S&P announcements) is found to be about 6% of the event-firm abnormal spread change. Stratification and multivariate regression analyses reveal a rich pattern of IIIT behavior across several event-firm, event, and industry characteristics. For negative rating events, contagious IIIT effects tend to be stronger when event-companies: (a) are relatively large (only in the case of downgrades), (b) come from industries with large industry peers, (c) have high degree of cash-flow similarity with their industry peers, (d) are highly leveraged, (e) have higher than industry-average credit rating before the event, and (f) come from relatively credit-worthy industries. For positive rating events, the contagious IIIT effects tend to increase with: (a) industry-peer cash flow similarity, and (b) degree of financial distress, characterized by below-average event-firm credit quality and low average industry credit quality. These results contribute to our understanding of credit risk correlations, and are consistent with recent theoretical models of credit risk correlations of Giesecke (2004) and Collin-Dufresne et al. (2010a).

Stock market synchronicity – an alternative approach to assessing the information impact of Australian IFRS

AbstractHow has the mandatory adoption in 2005 of International Financial Reporting Standards in (IFRS) affected information flow for investors in Australia? This paper investigates impact by examining synchronicity issues. Morck et al. (2000) label the degree to which stock prices depend upon market and industry wide information as market synchronicity, and the degree to which they reflect firm specific information as idiosyncratic dependency. Increased synchronicity can signal several events, including a loss of confidence in firm specific accounting data, reduced transparency, or evidence of a greater degree of cross sectional comparability. We develop and test three theoretical models on the impact of IFRS and find a general decrease in synchronicity in the first two post‐IFRS years, followed by a reversion to a significantly higher level in later years. Further tests reveal lower analyst forecast earnings errors post‐IFRS. Results provide restrictive support for the International Accounting Standards Board contention that IFRS accounting provides higher specific and comparable information content – at least for sophisticated financial analysts.

Industry-Wide Supply Chain Information Integration

Experiences from enterprise-wide integration initiatives during more than four decades indicate that industry-wide information integration could render substantial benefits. Two ways in which industry-wide integration differs from enterprise-wide integration are that there is no common management level and the economic units in the integration are the constituent units, not the industry. Management involvement has been emphasized as perhaps the most critical success factor for enterprise-wide information integration. The common economic unit enables increased costs in one part of the organization to lower the total cost in the company as a whole. In this article the authors address which consequence these two differences have for the development of information integration in four industry-wide supply chains. The authors find the existing methods for enterprise-wide information integration, such as BPR, virtually impossible to apply on industrywide information integration and that the disjoint economic responsibility is a hampering aspect in reaching potential benefits of industry-wide information integration.

INDUSTRY PROSPECTS AND ACQUIRER RETURNS IN DIVERSIFYING TAKEOVERS

AbstractWe use a sample of 816 diversifying takeovers from 1978 to 2003 to examine whether takeover announcements release negative information about the future prospects of the acquirer's main industry. We find that rivals that are most similar to the acquirer (homogeneous rivals) experience significant negative cumulative abnormal returns (CAR) around takeover announcements. Takeovers that result in negative wealth effects to acquirers are associated with negative abnormal revisions in analysts' forecasts of homogeneous rivals' earnings per share. We also find a decline in the posttakeover operating performance of rival firms. The decline is especially pronounced for homogeneous rivals and for takeovers with negative wealth effects to acquirers. Our findings imply that CAR‐based estimates of acquirer wealth gains from takeovers that do not account for industrywide information releases are significantly biased downward.

DOES REORGANIZATION ADJUDICATION CONVEY FIRM-SPECIFIC OR INDUSTRY-WIDE INFORMATION? EVIDENCE FROM TAIWAN*

In this paper, we investigate whether reorganization adjudication only conveys information about the announcer or whether it also provides industry-wide information for rivals. We find evidence of strong information content and information transfer arising from the announcement. Reorganization adjudication announcements are associated with positive share prices for announcers, but produce both positive contagion and negative competitive effects for industry rivals, with the latter dominating. We also develop a neuro-fuzzy model and link it to the input feature selection method of genetic algorithms to examine which rivals are more likely to exhibit a contagion or competitive effect in their equity values.

Does the response of competitors to privatization announcements reflect competitive or industry-wide information effects? International evidence

We examine the stock price reaction of rival firms to the announcement of the privatization of their industry counterparts to infer information about the intra-industry effects of privatization. We find that the rival firms reacted negatively to the privatization announcements, suggesting that the announcement effects reflect competitive rather than positive industry effects. The reaction is stronger for industry counterparts in low economic freedom countries than those in high economic freedom countries. Interestingly, we also find that full privatization announcements generate larger negative abnormal returns for rival firms than partial privatization announcements where the privatized firm gains only partial autonomy from the government. In this regard, we find that, as the proportion of government ownership reduces, subsequent partial privatization announcement elicits stronger market reaction from rival firms. The negative abnormal returns earned by shareholders of rival firms are not due to price pressure and portfolio rebalancing effects resulting from index composition changes. We conclude that the negative effects documented for the rival firms reflect investors' concern about the potential competitive effects resulting from privatization of the state enterprise.

Industry-wide information systems standardization as collective action

Vertical information systems (VIS) standards are technical specifications designed to promote coordination among the organizations within (or across) vertical industry sectors. Examples include the...