The Impact of Shareholder Litigation Risk on Equity Incentives: Evidence from a Natural Experiment

2018 ◽  
Author(s):  
Jingyu Yang ◽  
Yangxin Yu ◽  
Liu Zheng
Keyword(s):  
Natural Experiment ◽  
Litigation Risk ◽  
Equity Incentives ◽  
Shareholder Litigation ◽  
The Impact

The Impact of Shareholder Litigation Risk on Equity Incentives: Evidence from a Quasi-Natural Experiment

2021 ◽  
Author(s):  
Jingyu Yang ◽  
Yangxin Yu ◽  
Liu Zheng
Keyword(s):  
Financial Reporting ◽  
Incentive Pay ◽  
Litigation Risk ◽  
Ninth Circuit ◽  
Circuit Court ◽  
Court Of Appeals ◽  
Equity Incentives ◽  
The Impact ◽  
Compensation Design ◽  
Powerful Incentive

While prior studies generally support that equity-based compensation induces CEOs to manipulate financial reporting, there is limited direct empirical evidence on whether financial misreporting concerns affect compensation design. A key challenge for establishing a causal relationship is that misreporting incentives and compensation policies are often endogenously determined. Exploiting the exogenous reduction in litigation threat following a 1999 ruling of the U.S. Ninth Circuit Court of Appeals, we examine how heightened misreporting concerns in a less litigious environment affect CEOs' compensation design. Consistent with the theoretical prediction that misreporting concerns prevent companies from providing more powerful incentive pay that is otherwise optimal, we find that firms headquartered in Ninth Circuit states decreased CEOs' equity portfolio vega relative to the control firms after the ruling. We further document that this reduction was concentrated among firms facing greater misreporting concerns post-ruling.

The Impact of Risk and Monitoring on CEO Equity Incentives

2011 ◽  
Author(s):  
Ana M. Albuquerque ◽  
George Papadakis ◽  
Peter D. Wysocki
Keyword(s):  
Equity Incentives ◽  
The Impact

scholarly journals Natural Experiment on Trade and Investment Liberalization and Soft Drink Consumption

2020 ◽  
Vol 30 (Supplement_5) ◽  
Author(s):  
Y Tcholakov
Keyword(s):  
Public Health ◽  
International Trade ◽  
Natural Experiment ◽  
Soft Drink ◽  
Trade Agreement ◽  
P Value ◽  
Soft Drink Consumption ◽  
Obesity And Diabetes ◽  
Wide Range ◽  
The Impact

Abstract Background Globalization is recognized to as a contributing factor to a health harming environment through a variety of mechanisms including through changes in food systems and food availability. Sugar-sweetened beverage (SSB) consumption is linked to obesity and diabetes and its regulation is a key priority for public health. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an international trade agreement between 11 countries. Methods This project uses of natural experiment methods to predict the impact of the entry into force of the CPTPP on SSB consumption. These methods allow quantitative inferences to be drawn in the situations where the exposure is not randomly assigned. Soft drink consumption data was collected from the Euromonitor database for 80 countries from all regions. This data was used to estimate the effect of agreements similar to the TPP. Results Eleven country trade agreement pairs were identified. In 5 cases out of the 11, the exposed country had a higher soft drink consumption at five years after the trade agreement. The effect of the trade agreement exposure for an average country in the sample in a trade agreement was found to be 1.10 (95% CI: 1.01-1.18; p-value: 0.03) after adjusting for GDP and the involvement of the US. In 7 of the 11 member-countries soft drink consumption is expected to increase yielding an average increase of 9.0% in those countries; the changes did not yield statistically significant differences in others. Conclusions This projected extended the use of synthetic methods to the projection of future effects of policy implementation. While it showed that there may be increasing trend of SSB consumption in certain scenarios, this could not be generalized to all cases. This illustrates the wide range of effects of international trade liberalization and highlights that national policy probably plays a strong modulating role on the impact that it has on local food environments. Key messages Globalization can lead to health harming environments and its impacts should further be studied by public health professionals and researchers. Many global policies have the potential to lead to significant health impacts but are negotiated without involving public health experts.

scholarly journals Stock Market Liberalization and Corporate Green Innovation: Evidence from China

2021 ◽  
Vol 18 (7) ◽  
pp. 3412
Author(s):  
Yuming Zhang ◽  
Juanjuan Zhang ◽  
Zhang Cheng
Keyword(s):  
Stock Market ◽  
Natural Experiment ◽  
Financial Behavior ◽  
Mechanism Analysis ◽  
Market Liberalization ◽  
Green Innovation ◽  
Securities Analysts ◽  
Stock Market Liberalization ◽  
The Impact ◽  
Practical Implications

Corporate green innovation is an effective way to achieve energy conservation and emission reduction. Enterprises’ willingness to pursue green innovation is increasingly affected by external factors. By using a quasi-natural experiment of China’s Stock Connect program, we investigate the impact of stock market liberalization on corporate green innovation. We find that stock market liberalization increases enterprises’ green innovation, especially for state-owned enterprises. We also find that stock market liberalization plays a stronger role in promoting the green invention patents of enterprises whose managers have overseas experience and enterprises in areas with a higher degree of openness. Our mechanism analysis suggests that stock market liberalization attracts the attention of securities analysts and increases managers’ focus on environmental protection, thereby promoting corporate green innovation. Our findings show that stock market liberalization plays an important role in the governance of firms’ non-financial behavior, which has important theoretical and practical implications.

scholarly journals Does Exposure to the Refugee Crisis Make Natives More Hostile?

2018 ◽  
Vol 113 (2) ◽  
pp. 442-455 ◽  
Author(s):  
DOMINIK HANGARTNER ◽  
ELIAS DINAS ◽  
MORITZ MARBACH ◽  
KONSTANTINOS MATAKOS ◽  
DIMITRIOS XEFTERIS
Keyword(s):  
Natural Experiment ◽  
Aegean Sea ◽  
Political Engagement ◽  
Policy Preferences ◽  
Immigration Policies ◽  
Refugee Crisis ◽  
Direct Exposure ◽  
Exclusionary Policies ◽  
Muslim Minorities ◽  
The Impact

Although Europe has experienced unprecedented numbers of refugee arrivals in recent years, there exists almost no causal evidence regarding the impact of the refugee crisis on natives’ attitudes, policy preferences, and political engagement. We exploit a natural experiment in the Aegean Sea, where Greek islands close to the Turkish coast experienced a sudden and massive increase in refugee arrivals, while similar islands slightly farther away did not. Leveraging a targeted survey of 2,070 island residents and distance to Turkey as an instrument, we find that direct exposure to refugee arrivals induces sizable and lasting increases in natives’ hostility toward refugees, immigrants, and Muslim minorities; support for restrictive asylum and immigration policies; and political engagement to effect such exclusionary policies. Since refugees only passed through these islands, our findings challenge both standard economic and cultural explanations of anti-immigrant sentiment and show that mere exposure suffices in generating lasting increases in hostility.

scholarly journals The breakdown of antiracist norms: A natural experiment on hate speech after terrorist attacks

2020 ◽  
Vol 117 (37) ◽  
pp. 22800-22804
Author(s):  
Amalia Álvarez-Benjumea ◽  
Fabian Winter
Keyword(s):  
Social Norms ◽  
Field Experiment ◽  
Natural Experiment ◽  
Minority Groups ◽  
Hate Speech ◽  
Terrorist Attacks ◽  
Descriptive Norm ◽  
Attitudinal Changes ◽  
The Impact ◽  
Strong Norm

Terrorist attacks often fuel online hate and increase the expression of xenophobic and antiminority messages. Previous research has focused on the impact of terrorist attacks on prejudiced attitudes toward groups linked to the perpetrators as the cause of this increase. We argue that social norms can contain the expression of prejudice after the attacks. We report the results of a combination of a natural and a laboratory-in-the-field (lab-in-the-field) experiment in which we exploit data collected about the occurrence of two consecutive Islamist terrorist attacks in Germany, the Würzburg and Ansbach attacks, in July 2016. The experiment compares the effect of the terrorist attacks in hate speech toward refugees in contexts where a descriptive norm against the use of hate speech is evidently in place to contexts in which the norm is ambiguous because participants observe antiminority comments. Hate toward refugees, but not toward other minority groups, increased as a result of the attacks only in the absence of a strong norm. These results imply that attitudinal changes due to terrorist attacks are more likely to be voiced if norms erode.

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