Conditional conservatism and labor investment efficiency

Ha, Joohyung; Feng, Meichen

doi:10.1016/j.jcae.2018.05.002

Cited by 72 publications

(37 citation statements)

References 79 publications

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“…At the final stage of the stage is determined by the individual strategy. The second stage is characterized by the implementation of the strategy, which can be further divided into substrategies, in particular in certain areas of business, which are sources of strategic goals [23].…”

Section: Resultsmentioning

confidence: 99%

Assessment of the efficiency of investing activities of organizations

et al. 2019

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Investments are the key to the systematic improvement of the economic situation within the country, both at the stage of economic enterprises and in the social environment. The main factor in the enlargement of economy within agriculture sector is increasing the proficiency of investing activities, strengthening the role of the state in the regulation of agricultural activities while maintaining the level of optimal interaction with the free market; reducing production costs; formation and development of marketing strategy; enhancing environmental safety and estimate in the agriculture; and overcome the variation of prices for agricultural and industrial goods. The foundation of investing activities is the timely receipt of an accurate and reliable information about the magnitude of resources’ investment by objects of agricultural practices. Key performance indicators are the basis of a balanced system that determines the methods of formation of these indicators. The object of the research consists in theoretical justification and developing the calculation method characterizing enterprise investing activities. Abstract-logical, monographical, statistical and economical, and examining methods were used while conducting the present research. The materials of domestic and foreign scholars addressed to the problems of developing balanced system of values served as methodological and theoretical background. The key performance indices are the basis of the balanced system of values, hence they should be formed by using the methods of the indicated system. It is recommended in the article that the assessment of investing activities should involve calculating the data characterizing the social activity of an enterprise. Besides, according to the article, the assessment of investing activities in relation to “Personnel and systems” area should be accomplished by using the data concerning the efficiency of human capital investments, the index of expected expertise, and the business reputation of human capital. The assessment of investing activities conducted in respect of “Finance” area should include calculation of the means allocated by enterprise for construction of disposal facilities, the amounts to be invested into environment protection facilities, investments into community, the funds allocated to support cultural and historical units as well as housing and public service facilities, and the funds used in order to support the events of social importance.

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Section: Resultsmentioning

confidence: 99%

Assessment of the efficiency of investing activities of organizations

et al. 2019

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“…hiring. This measure has been used in previous studies to examine the relationship between deviations from expected labour investment and financial reporting quality (Jung et al, 2014), stock price informativeness (Ben-Nasr & Alshwer, 2016), and conditional conservatism (Ha & Feng, 2018).…”

Section: Deviation From Expected Labour Investmentmentioning

confidence: 99%

“…Following the prior literature (e.g., Biddle et al, 2009;Ha & Feng, 2018;Jung et al, 2014), we control for the following variables that are found previously to be associated with investment more generally. Accounting quality (AQ) is based on the Dechow and Dichev (2002) model as modified by McNichols (2002) and Francis, LaFond, Olsson, and Schipper (2005).…”

Section: Empirical Modelmentioning

confidence: 99%

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Managerial Ability and Firm Performance: A Labour Management Perspective.

Yu¹

2020

Preprint

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We address the question how high ability managers achieve superior performance outcomes to their peers by examining how labour investment decisions and labour management outcomes differ based on managerial ability. We build on previous research that predicts expected labour investment (net hiring) based on economic factors and demonstrates that deviations from expected labour investment negatively affect future performance. A prediction based on this research is that deviations from expected labour investment decrease with managerial ability, with the associated consequence that performance is better for companies that deviate less from expected labour investment levels. But this linear prediction is limiting because, if high ability managers only match expected labour investment better than other managers, they would not perform much differently from other managers. High ability managers must see opportunities that are not readily apparent to other managers and take actions based on those opportunities. Therefore, we predict a non-linear relation between deviations from labour investment and managerial ability-that, up to a point, deviations from expected labour investment decrease with managerial ability but that deviations increase at high levels of managerial ability. A corresponding prediction is that deviations from expected labour investment that are made by higher ability mangers have a positive impact on future firm performance. We find support for both these predictions, whether deviations are negative or positive, consistent with high ability managers recognizing opportunities differently from other managers and achieving better performance outcomes when they deviate from expected labour investment.

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“…This issue is addressed by many researchers. Even the conservatism of a country is negatively linked to investments (Ha, Feng, 2018). Furthermore, research has shown that the impact of GDP growth and foreign direct investment on economic freedom is fairly consistent between the countries of Eastern Europe and the Western Balkans (Sayari, Sari, Hammoudeh, 2018).…”

Section: Introductionmentioning

confidence: 99%

Impact of Consumption and Investment onto Growth: An Example of the Republic of Srpska

Spasojevic¹,

Đukić²

2018

AEF

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The economy of the Republic of Srpska is burdened by inherited (structural) issues and a sluggish adjustment of the current economic policy to the contemporary global trends. According to the standards of the WB, IMF and Kuznets, the Republic of Srpska is classified as a small economy. Just like Bosnia and Herzegovina or any other countries of Western Balkans, it too is finalising the transition to a market economy. The Republic of Srpska features insufficient GDP growth rates. Under such circumstances, there is a need for enticement of GDP growth. Consumption (both final and public) as well as all forms of investment affect economic growth, with FDIs having a particularly important role. In most countries, there is a positive correlation between investment and GDP growth. Likewise, there is a positive correlation between GDP growth and final consumption. Therefore, the Republic of Srpska, as well as any other small economy, resorts to attracting investments and increasing final consumption. However, the issue is that public debt maintains its growing trend in most of such transitional economies. This paper contains the quantification of the impact of investments and consumption onto the GDP of the Republic of Srpska. It has been proven that the final consumption and investments affect GDP growth in the Republic of Srpska. Correlation-regression analysis confirmed a positive correlation between the mentioned variables. This development policy affects the continuous growth of public debt and brings the increase in the share of government (public) consumption in total consumption. In addition, it also affects the insufficient efficiency of investments. As a consequence, low productivity and insufficient competitiveness emerge, followed by the occurrence of other economic and social problems. Therefore, the Republic of Srpska and Bosnia and Herzegovina need to complete the initiated reforms and expedite their EU integration, modernize and restructure their industry as per the requirements of the global market, reduce the costs of public institutions and increase their overall competitiveness.

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Conditional conservatism and labor investment efficiency

Cited by 72 publications

References 79 publications

Assessment of the efficiency of investing activities of organizations

Assessment of the efficiency of investing activities of organizations

Managerial Ability and Firm Performance: A Labour Management Perspective.

Impact of Consumption and Investment onto Growth: An Example of the Republic of Srpska

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