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Job Market Signaling

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... This capacity constraint is also evident with another signal available to admissions committees, namely whether or not the applicant attended an elite undergraduate program. We find that attending an Ivy Plus undergraduate school has a signifcant positive effect on admission chances, consistent with college quality signaling skill (Spence (1973); MacLeod and Urquiola (2015)). 6 The agency approach provides a framework to understand these phenomena. ...
... The Spence (1973) signaling model is another influential information model. It makes the prediction that when signaling by an individual is costly, the intensity of the signal should vary with unobserved signal costs. ...
... Our results provide some evidence on Spence (1973) signaling model of education. The Spence model predicts that education reveals skill because the cost of acquiring education is lower for high-skill individuals, hence only high-skill individuals acquire additional training. ...
... and (2) how is this relationship influenced by important contingencies in the acquisition context? To address these research questions, we draw on the signaling theory (Spence, 1973). This theoretical perspective allows us to elaborate on the effect of family firm status, a signal that only family firms can reliably send (e.g., Schellong et al., 2019), on firm value. ...
... The origins of signaling theory are attributed to the seminal work of Spence (1973) and other closely related research (e.g., Stiglitz, 2002) that has investigated the implications of information asymmetries in various markets. From a signaling theory perspective, asymmetric information environments include an insider that obtains certain information and may send this information consciously or unconsciously in form of a signal to an outsider that lacks this information but would like to obtain it (Connelly et al., 2011). ...
... An acquirer (considered an outsider) is usually unable to fully capture such information and intangible characteristics from the outside. Hence, there is an information asymmetry between acquirers and targets, making signals particularly relevant (Connelly et al., 2011;Spence, 1973). Indeed, signals that contain some piece of relevant information about a target's prospects can be useful for an acquirer to mitigate the problem of asymmetric information and to draw conclusions on a target's quality (e.g., the opportunity to create more value than the current firm fundamentals may suggest)-and, ultimately, its firm value (i.e., acquisition price). ...
Article
Drawing on signaling theory, we explore the signaling effect of family firm status on firm value in the acquisition context as well as important contingencies influencing the signal’s effectiveness. Based on a sample of 486 observations of acquisitions in France, Germany, Italy, and Spain from 2011 to 2019, our empirical results suggest that acquirers purchase family firms at a higher firm value than non-family firms. This relationship is moderated by the target firm’s financial performance (i.e., high vs. low) and listing status (i.e., private vs. public) prior to an acquisition, as well as the type of acquirer (i.e., financial vs. non-financial) and the acquirer’s geographic location (i.e., cross-border vs. domestic). Our study’s findings suggest that family firm value is driven not only by the characteristics of the family firms that become acquired but also by the characteristics of the acquirers as they influence the effectiveness of the family firm signal.
... Similar to standard signaling games, for example, Spence (1974), we obtain a host of separating and pooling equilibria. Both the set of separating and pooling equilibria contain equilibrium payoff profiles that implausible but feasible beliefs justify, but that are ignoring that some deviations from the equilibrium path are rational for some type but not the other. ...
... A key difference from our setup compared to the standard Spence (1974) is that the firm's total value dependent on its type do not feature the Spence-Mirrlees single crossing condition. 4 ...
... Consequently, and contrasting the standard Spence (1974) signaling game, our debt issuance game features a pooling equilibrium in some cases. Specifically, pooling is possible in the case that the two types are sufficiently close for the bad type to mimic the good type. ...
Article
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How does a creditor’s learning from a firm’s strategic actions affect bankruptcy prediction, debt values, and optimal capital structure? We investigate a Leland (1994) setting augmented by asymmetric information on the firm’s asset value. Observing the firm’s survival of apparently distressed periods, the creditor excludes asset value estimates that are too low to be consistent with the observed survival. We show that the expected bankruptcy threshold decreases as result of the learning. While expected asset and debt values decrease upon reaching new all-time-low asset values, they are persistently higher once the observed asset value recovers to a given level, but the creditor remembers the all-time low. In terms of selecting the capital structure, high quality firms can separate and signal their quality by over-leveraging if the information asymmetry is high enough. Moderate information asymmetry implies a pooling equilibrium.
... More specifcally, which signals do individuals use to form impressions of other people and make decisions with whom to collaborate? One theory ofering a link between impression formations and behavioral cues in social interactions is the (social) signaling theory [13,36,40]. (Social) Signaling theory proposes that individuals (i.e. ...
... "Are they trustworthy?") [40]. This process can be viewed as a signal detection problem where optimally solving for this problem would result in a better partner selection [32]. ...
... Signaling theory explains how people influence others in situations of incomplete or inadequate information. Largely attributed to Spence (1973), the theory envisions how parties communicate in situations of information asymmetry and information gaps. Here, one party is not fully informed about the other party's capabilities and intentions regarding an issue. ...
... The narrative discussion of pertinent research below first introduces the signaling theory then ties it to credibility, social media, and SME. Spence (1973) proposed signaling theory to explain job market dynamics in which employers have limited information about job seekers and yet need to make the best-informed hiring decision. To Spence, hiring is akin to purchasing a lottery ticket and the jackpot is winning a candidate whose productivity once hired, exceeds whatever resources and wages that are invested in them during their tenure. ...
Article
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With signaling theory, credibility, and social media engagement (SME) as guiding frameworks, this study used an experiment to examine how social media influencers (SMIs) affect how people engage with COVID-19 misinformation. SMI-promoted information elicited more SME, credibility, and purchase likelihood than non-SMI promoted information. The most effective message was a post promoted by an SMI that contained detailed information about an authentic product. However, data indicated nuance regarding the effect of SMIs. The authenticity of the information as well as the amount of detail in the post played a role. Additionally, mediated effects analysis showed that the impact of SME on purchase likelihood was higher among non-SMI followers. Data suggests that using a multi-signal messaging approach is suitable regardless of promotion by an SMI. This has important implications to public health messaging and the author discusses how health agencies may effectively signal information to the public.
... Pemisahan antara fungsi kepemilikan dan fungsi pengawasan ini dapat memicu konflik dan memungkinkan terjadinya asimetri informasi. Spence (1973) menyatakan teori sinyal adalah suatu tindakan yang dilakukan manajemen perusahaan untuk memberi petunjuk bagi investor tentang bagaimana manajemen memandang prospek perusahaan. Sinyal dapat berupa informasi yang menyatakan bahwa perusahaan tersebut lebih baik daripada perusahaan lain (Himawan dan Christiawan, 2016). ...
... Tentunya para pemegang saham ingin manager dapat bekerja secara transparan berupa penyajian informasi secara akurat tanpa adanya unsur kecurangan di dalamnya agar informasi yang diterima menunjukkan keadan perusahaan yang sebenarnya. Selain teori agency¸ implikasi teoritis penelitian ini juga memperkuat teori sinyal (signalling theory) yang dikemukakan oleh Spence (1973) yang menyatakann bahwa perusahaan yang memiliki kinerja yang baik menggunakan informasi finansial untuk mengirimkan sinyal ke pasar. Sinyal yang dikirim dapa berupa informasi mengenai apa saja yang telah dilakukan manajemen untuk merealisasikan keinginan pemilik. ...
Article
Jenis dari penelitian ini adalah eksplanatori yang bertujuan untuk menginvestigasi pengaruh kepemilikan manajerial dan free cash flow terhadap manajemen laba serta kepemilikan manajerial, free cash flow dan manajemen laba terhadap nilai perusahaan. Pada penelitian ini digunakan teori keagenan dan teori sinyal untuk menjelaskan hubungan antar variabel. Populasi yang digunakan dalam penelitian ini adalah perusahaan nonkeuangan yang terdaftar di Bursa Efek Indonesia (BEI) dengan periode penelitian tahun 2016-2019. Penelitian ini menggunakan metode purposive sampling. Hasil penelitian ini menunjukkan bahwa kepemilikan manajerial tidak berpengaruh terhadap nilai perusahaan, sebaliknya kepemilikan manajerial berpengaruh negatif dan signifikan terhadap manajemen laba, sedangkan free cash flow berpengaruh positif dan signifikan terhadap nilai perusahaan, sebalinya berpengaruh negatif dan signifikan terhadap manajemen laba, selain itu manajemen laba berpengaruh positif dan signifikan terhadap nilai perusahaan. Hasil pengujian sobel menunjukkan bahwa manajemen laba memiliki peran mediasi dalam pengaruh kepemilikan manajerial terhadap nilai perusahaa, serta free cash flow terhadap nilai perusahaan.
... The cognitive process of trust transfer is based on the understanding of the relationship between the trustee and the trusted third party [25]. The economist Spence [26] first proposed signal theory in 1974 for the study of employment relationships in the labour market. Signal theory is suitable for solving adverse selection problems arising from signal asymmetry and is useful for describing the behaviour of two parties (individuals or organizations) when they are in a situation of asymmetric information [27]. ...
Article
Full-text available
Consumers are reluctant to engage in e-commerce, due in part, to a lack of trust in the e-merchants, in the e-commerce technology and in the business process. Few prior studies investigating consumers’ trust behaviour in relation to e-retailers have addressed different combinations of third-party services and third-party platforms. However, the importance of both of these to the cross-border e-commerce market is self-evident. This paper aims to explore the development of institutional trust in platforms based on the level of the third-party services provided and ultimately, to develop a complete study of online transaction intentions as driven by the platform institutions. An online survey was conducted to collect the data, and 445 respondents completed and returned the questionnaire. Based on the structure of the data, partial least squares structural equation modelling was used to assess the effects of specific factors on institutional trust and on initial trust. Preliminary findings suggest that third-party logistics, payments and certification significantly enhance consumers’ trust in an online platform system and in turn, their trust in the e-retailers. Furthermore, the perceived usefulness of a platform and the trustworthiness of word-of-mouth comment can both significantly influence online trust. The study builds an extended online trust model to explore in greater detail. On the one hand, the model will enable platform management to understand users’ demands for third-party services better and so improve the platform system. On the other hand, the model can help e-retailers to form a comprehensive understanding of the third-party platform system, and it can guide them in making use of a platform to improve their sales performance.
... Signaling theory merupakan teori yang membahas terkait keterbukaan informasi berupa sinyalsinyal yang terlihat dari laporan keuangan maupun faktor lainnya yang berhubungan dengan entitas yang dapat digunakan investor untuk menilai kinerja manajemen di entitas tersebut. Signaling theory diperkenalkan oleh Spence (1973) dan Ross (1977), di mana Spence (1973) menyatakan bahwa manajemen cenderung akan saling berlomba-lomba untuk menyampaikan sinyal-sinyal yang dapat menarik perhatian investor, di mana semakin banyak sinyal atau informasi yang dianggap menguntungkan bagi investor, maka investor akan lebih tertarik berinvestasi di entitas tersebut. ...
Article
Penelitian ini bertujuan untuk menganalisis pengaruh Financial Leverage, Return on Equity, Operating Cash Flow, dan Audit Qualityterhadap Earning per Sharepada perusahaan sektor Propertydan Real Estateyang terdaftar di BEI periode 2015 –2019. Penelitian ini menggunakan data sekunder berupa laporan keuangan dan laporan tahunan perusahaan, serta menggunakan pendekatan kuantitatif sebagai metode penelitian. Teknik yang digunakan dalam pemilihan sampel ialah purposive sampling, di mana dari 70 perusahaan sektor Propertydan Real Estateperiode 2015 –2019, diperoleh 28 perusahaan yang memenuhi kriteria sampel. Data dianalisis dengan menggunakan analisis statistik deskriptif, uji pemilihan model estimasi, uji asumsi klasik, analisis regresi data panel, dan uji hipotesis. Hasil penelitian ini menunjukkan bahwa Financial Leverageberpengaruh negatif signifikan terhadap Earning per Share, Return on Equityberpengaruh positif signifikan terhadap Earning per Share, Operating Cash Flowtidak berpengaruh signifikan terhadap Earning per Share, dan Audit Quality berpengaruh positif signifikan terhadap Earning per Share.
... In the theory of information asymmetry, a classical mechanism for mitigating adverse selection is for the high-quality entity to generate a signal whose cost is lower for high-quality firms than for low-quality firms (Spence 1973). Thus, only high-quality firms are likely to utilize the signal, which now becomes a way to distinguish the high-quality firms from the low-quality ones. ...
... There exist several theories related to job mismatch such as Human Capital Theory (Gray, Becker, 1964); Job Competition Theory (Thurow, 1975); Job Matching Theory (Jovanovic, 1979); Credential theory (Collins, 1979) as well as Job Signaling Theory (Spence, 1973) but in the context of present study Job Matching theory is most approporiate. ...
Article
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Job mismatch among graduates reflects inefficiencies in the labor market. An imbalance between the demand and supply of graduates in the labor market leads to a horizontal mismatch. Nations make progress based on knowledge and education but despite obtaining higher education individuals are unable to find a job related to their field of study. This phenomenon occurs when educational institutes produce a large number of graduates while on the other hand, the supply of graduates exceeds the demand for graduates. This study aims to find out the determinants of horizontal mismatch and to analyze the reasons why workers have accepted the mismatched job. By using the worker’s self-assessment method required data is collected from the clerical workers of public and private sector universities at Lahore in 2019. These universities include the University of the Punjab, Lahore, and the University of Management and Technology, Lahore. Results of Logistic Regression analysis concluded that cost of job search, asymmetric information, and methods used to find a job are the most important determinants of job-mismatch. This study has also analyzed the reasons why workers have accepted their present mismatched job. Findings concluded that individuals accepted mismatched-job due to pay and promotion opportunities and a good working environment. This study suggested establishing linkages between educational institutes and industries to better formulate the policy that reduces the extent of horizontal mismatch. Keywords: Job-mismatch; logistic regression; worker’s self-assessment approach; graduates; asymmetric information
... Employee perception of EAPs was believed to relate to the social climate, perceived encouragement, and trust in management (Masi & Jacobson, 2003;Reynolds & Lehman, 2003;Yu, Lin, & Hsu, 2009). Based on signaling theory (Spence, 1973), Bainbridge and Townsend (2020) argue that EAPs can be seen as manifestations of responsible and supportive HRM. When organizations (the sender of signals) offer such programs to assist with a wide variety of issues, employees (the receiver) may react positively to their organization after receiving and interpreting the organizational signals of goodwill. ...
Article
The COVID-19 pandemic has accentuated the critical role of organizational support for the workforce. An employee assistance program (EAP) represents an inclusive strategy which organizations adopt to provide supportive and empathic care to help employees overcome undesirable situations. To date, we have limited knowledge of what EAP issues have been researched from the human resource management (HRM) perspective and what theoretical underpinning these studies have used. This article systematically reviews quantitative empirical studies on EAPs. Drawing upon 115 articles from 72 journals across 40 years (1981–2020), we trace the evolutionary trend of the construct of EAP and shed light on the internal link of EAP with HRM. After summarizing research themes, methods, theories, and approaches to the evaluation of EAPs, we identify pitfalls in the current research and contribute to extending the field by proposing several research agendas for future investigation.
... Despite the growing literature on signaling theory (Spence, 1973(Spence, , 2002, the environment in which signaling occurs remains underresearched (Connelly et al., 2011;Vanacker et al., 2020). The signaling environment is central to the signaling process because it affects the credibility of signals and their capability to reduce information asymmetries in the market (Lester et al., 2006). ...
Article
Full-text available
Since stakeholders cannot directly observe corporate social responsibility (CSR) efforts, companies attempt to back up their increasing sustainability claims by sending CSR signals. The environment in which signaling takes place influences the credibility of the signals. Among the factors that make up the signaling environment, the overall exposure of the company to different stakeholders (i.e., stakeholder scrutiny) has been neglected by the literature. Using signaling and stakeholder theories, we argue how stakeholder scrutiny shapes CSR signals' credibility. We empirically analyze a sample of 5762 firms across several sectors from 23 developed countries from 2013 to 2017. Stakeholder scrutiny exercises a positive effect on the credibility of CSR signals through a mediated‐moderated impact of CSR (across environmental, social, and governance dimensions) on firm performance.
... Se, por um lado, o tempo dedicado ao emprego poderia prejudicar os investimentos educacionais, por outro, ele forneceria habilidades e conhecimentos que aumentariam a produtividade futura e complementariam a aprendizagem na escola.O efeito positivo advindo do trabalho é justificado sob a perspectiva da Teoria do Capital Humano(BECKER, 1964), segundo a qual o aumento de habilidades decorrentes da experiência pode levar a retornos adicionais no mercado de trabalho. Contudo, baseado nessa mesma teoria, juntamente com a Teoria de Alocação do Tempo(BECKER, 1965), pode-se esperar efeitos negativos, com as horas de trabalho reduzindo o desempenho dos alunos, caracterizando assim a existência de trade-off entre trabalhar e estudar.A Teoria da Sinalização(SPENCE, 1973) reforça o efeito positivo do trabalho partindo do argumento de que os empregadores podem usar essa experiência dos estudantes como um sinal intrínseco de motivação e de capacidade de trabalho, pois apenas estudantes altamente capazes conseguem combinar estudo e trabalho com sucesso. Dessa forma, há um aumento de chances de eles conseguirem emprego, sem haver um aumento de capital humano.Por outro lado, os empregadores podem interpretar a experiência de trabalho enquanto estudante contida no currículo como um sinal de restrição de liquidez e desinteresse pelo desenvolvimento acadêmico. ...
Book
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O livro reúne capítulos que têm como objeto de investigação o Spaece sob diferentes óticas e questionamentos de pesquisa. Seu título, Spaece: pesquisas e propostas de ação, procura captar a essência das discussões apresentadas, pois, além de resultarem de pesquisas empíricas com rigor metodológico, os textos anunciam propostas de aperfeiçoamento dos usos do Spaece decorrentes da observação dos profissionais da educação a partir de suas investigações. Os autores, professores das redes estadual, municipal e federal de ensino, em sua maioria vinculados à Secretaria Estadual da Educação do Ceará (Seduc), oferecem aos leitores um conjunto de evidências que não deixam dúvidas quanto à capilaridade do Spaece nas redes de ensino e escolas, sem perder de vista os limites e riscos associados a essa avaliação.
... Teori sinyal (signalling theory) diperkenalkan oleh Spence (1972) dalam Job Market Signalling. Teori ini melibatkan dua pihak, yaitu pengirim sinyal dan penerima sinyal. ...
Article
Penelitian ini bertujuan untuk menguji profitabilitas, arus kas aktivitas operasi, dan kepemilikan manajerial terhadap probabilitas financial distress pada perusahaan yang paling terdampak pandemi Coronavirus Disease 2019 (COVID-19) di Association of Southeast Asian Nations (ASEAN). Sampel penelitian dipilih dengan teknik purposive sampling dan menghasilkan total sampel sebanyak 114 perusahaan selama periode penelitian tahun 2020. Penelitian ini menggunakan pendekatan kuantitatif dengan data sekunder melalui metode dokumentasi. Data diperoleh dari laman bursa masing-masing negara anggota ASEAN, laman resmi perusahaan, dan laman pendukung lainnya. Penelitian ini menggunakan analisis regresi logistik dengan menggunakan Microsoft Excel dan SPSS 25. Hasil penelitian ini menunjukkan bahwa profitabilitas berpengaruh negatif terhadap probabilitas financial distress, arus kas aktivitas operasi berpengaruh positif terhadap probabilitas financial distress, dan kepemilikan manajerial tidak berpengaruh terhadap probabilitas financial distress.
... Previous work has used signal theory to explain the effect of brand reputation. Spence (1974) defined signals as corruptible attributes or actions that relay information on the characteristics of economic agents (e.g., firms, consumers, work applicants). Signaling theory is mainly concerned with removing information asymmetry between the two sides (Spence, 2002). ...
Conference Paper
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Keiretsu is a Japanese word for a system that maintains a long-term relationship with suppliers or smaller enterprises in order to eliminate additional costs efficiently. The core of Keiretsu organizational culture is being cordial, using Hitozukuri (making people) and Monozukuri (delivering products/services). This research aims to explore Keiretsu organizational culture and the impact it has on the Sony Corporation’ s culture of innovation. The paper’s archival search covers the business activities of Sony Corporation from 1946-2022. The results are presented in a table illustrating two periods: 1946- 2005 and 2006- 2022. Although seemingly innovative, Keiretsu has negatively affected the Sony Corporation’s organizational culture by elongating the corporation’s process of innovation. Furthermore, Sony Corporation also has produced too many products, which appears to be good, but eventually has led the corporation to be unproductive and out of focus. As a result, even though Sony Corporation exhibits Keiretsu organizational culture, but this culture has not led Sony Corporation to innovation culture.
... It mainly focusses on prices or career incentives (Lee, Park, & Zaggl, 2022;Xu, Nian, & Cabral, 2019). Crowdsourcing can be used for reputation building and this reputation building can be used to improve a crowdsourcing participant's position on the job market via signaling (Spence, 1973). ...
Preprint
crowdsourcing, innovation
... The individual is assumed to opt for the most efficient channels. For Spence (1973) the probability of obtaining a job depends on the channels used by the unemployed to give signals of productivity to employers. Granovetter (1973), on the other Indeed, these networks would be, among other arguments, a source of quality information for job seekers. ...
Preprint
Full-text available
Based on ECAM4 (2014) database, this paper aims at analysing the effect of Information and Communication Technologies (ICTs) based on youth’s access employment aged between 15-35 years old in Cameroun. The cases of employees of more than 15 and thos of more than 35 years old are considered for comparisons. In order to solve the endogeneity bias of the simple probit model, a robust instrumental variable probit model was used, and this gave consistent results with regard to the diagnostics based on the specificity/sensitivity tests. The estimates suggest that: (i) using the internet increases the chances of getting a job, and this for all age group considered; (ii) this increase it between 17-38% for youth, 0.39-1.118% for seniors and 18-40% for all workes; (iii) compared to senior employees, the young internet users are 25 times luckier to find a job. Finally, this result is in accordance with the literature which considers ICTs as the most important component of labor market.
... The concept of asymmetry information which dovetailed to a theory was first propounded by Akerlof [48]. The theory was subsequently popularized by the works of Spence [49] and Stiglitz [50] which culminated in their jointly securing the Nobel Peace Prize in Economics alongside Akerlof in 2001 [51]. The theory suggests that opportunities always exist for one party to possess significant and material information more than another party in a business dealing and that where this information imbalance (asymmetry exist), it is capable of generating market inefficiencies. ...
Article
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This paper examined the linkage between environmental disclosure practices and sustainable performance with particular reference to listed manufacturing companies operating in Nigeria. The study utilized the ex-post facto research design for its investigation while a sample of forty-eight (48) listed manufacturing firms were purposively selected out of sixty-seven (67) quoted manufacturing firms listed as at December, 2020. The study found that while environmental disclosures (EDD) exhibited a negative effect on Returns on Assets (ROA), Debt to Assets Ratio (DTA) and Market Price per Share (MPS) of the sampled firms, Social Disclosures (SDD), firm size and firm age exerted significant positive influence on sustainable performance of manufacturing firms. This implied that mere adherence to environmental disclosures is insufficient to affect the volume and direction of performance of manufacturing entities. On the contrary, social disclosures involving extensive social engagements and execution of corporate social responsibility initiatives positively impacts and drives sustainable performance of manufacturing companies in Nigeria. The study therefore recommended that management of manufacturing companies must take necessary steps to improve their levels of social engagements with their respective host communities with a view to improving their overall performance in a sustainable way.
... To overcome the negative effects of asymmetric information, the more informed party can create an action to signal the less informed party about the quality of their product. This signalling process was first identified in the seminal works of Ross (1977) and Spence (1978), essays on labour market signals that highlighted the asymmetric information in the labour market and that without some form of signals, employers are unable to separate high-skilled workers from low-skilled ones. Hence, it is adaptable to crowdfunding where the backers have limited access to information concerning crowdfunding campaign projects. ...
Article
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Access to finance by small-to-medium-enterprises (SMEs) remains an enigma that still warrants further research. The COVID-19 pandemic has exacerbated the funding gap and necessitated the need for entrepreneurs to seek alternative financing due to tight credit rationing by the traditional finance institutions. There is a marked increase in demand for alternative online finance known as crowdfunding amid social distancing and lockdowns occasioned by the COVID-19 pandemic. The main objective of this study was to examine the trends in the financing of African SMEs during the COVID-19 pandemic with a particular focus on crowdfunding. The postpositivist research philosophy and deductive strategy was adopted in this study with the view to test an existing theory and hypothesis. Secondary data sourced from TheCrowdDataCentre were utilised for the study. Eight hundred and fifty-nine African crowdfunding campaigns were employed as the unit of analysis. The study employed econometric techniques to test the research objectives of this study. The probit model was employed in the analysis. The results of the study revealed that backers, the COVID-19 and social network variables were positively and significantly related to campaign success. On the other hand, duration was found to be negatively and significantly related to crowdfunding success. The study contributes to the growing literature on the impact of COVID-19 on crowdfunding performance, as well as the literature on alternative sources of finance.
... Signaling theory (Spence, 1973) focuses on reducing the information asymmetry between two parties (Connelly et al., 2011). It developed in economics and has been applied to several research fields such as marketing (Kirmani and Rao, 2000), entrepreneurship (Alsos and Ljunggren, 2017) and human resource management (Suazo et al., 2009). ...
Article
Purpose This study aims to review family business branding research, elaborate a new framework integrating family business branding and corporate brand management literature and finally identify future research directions. Design/methodology/approach A bibliometric analysis was conducted to present the main research topics within family business branding. Findings The contributions of this study are threefold. First, this study maps the main themes of family business branding research and highlights its fragmented nature. Second, this study proposes an overarching framework based on signaling theory, attempts to bridge the family business branding and corporate brand management literature and provides a lead for future research. Third, this study stresses the role of brand construct in family business branding. Originality/value This study represents an important step in the identification of a new theoretical framework that best fits the investigation of family business branding.
... Signaling theory helps explain how decisions are made about which actions are needed in situations where information may be incomplete or unequally distributed among stakeholders (Spence, 1973(Spence, , 1974. In the context of organizations, strategic directions are usually formulated by key executives and communicated through various means to employees, and signaling theory emphasizes the importance of both the signaler and the signal for such mechanisms to be effective (Connelly et al., 2011). ...
Article
Green human resource management (HRM) highlights the importance of aligning human resources practices with the environmental goals of organizations. Given that employees are at the core of HRM, it is important to determine how they form intentions for green HRM practices, particularly in contexts such as the Philippines—a country in Asia that frequently experiences disasters. Guided by signaling theory, we assert that organizational directions that are environmentally oriented relay signals to employees about prioritizing environmental sustainability, which influences employees’ intention for green HRM. We also assert that pursuing such organizational directions entails articulating expectations, and employees wanting to deliver these expectations explains why employees will want to institute green HRM. We conducted a survey among 189 employees complemented by interviews with 15 HRM leaders in the Philippines. Our findings advance current understanding of the mechanisms through which employees’ intention for green HRM practices are shaped by and orient efforts to engender employee involvement in environmental sustainability initiatives.
... Signalling theory diperkenalkan oleh Spence (1973) yaitu cara pandang pemegang saham tentang peluang perusahaan dalam meningkatkan nilai perusahaan di masa yang akan datang, di mana informasi tersebut diberikan oleh manajemen perusahaan kepada para pemegang saham. Tindakan tersebut dilakukan oleh perusahaan guna memberikan isyarat kepada pemegang saham atau investor mengenai manajemen perusahaan dalam melihat prospek perusahaan kedepannya sehingga dapat membedakan perusahaan berkualitas baik dan perusahaan berkualitas buruk. ...
Article
Tujuan penelitian ini untuk menguji Pengaruh Non Perfoming Loan (NPL), Loan to Deposit Ratio (LDR) dan Beban Operasional per Pendapatan Operasional (BOPO) terhadap Return On Equity (ROE) pada Bank Umum Swasta yang terdaftar di Bursa Efek Indonesia (BEI) Tahun 2019-2020. Metode pengambilan sampel penelitian ini menggunakan purposive sampling, sehingga diperoleh 22 bank yang dijadikan sampel. Model analisis data menggunakan regresi linier berganda dan untuk pengujian hipotesis menggunakan uji simultan (f) dan uji parsial (t) dengan program SPSS 26. Hasil penelitian ini menjelaskan bahwa: 1) NPL, LDR dan BOPO berpengaruh signifikan secara simultan terhadap ROE; 2) NPL berpengaruh negatif signifikan terhadap ROE secara parsial; 3) LDR tidak berpengaruh signifikan terhadap ROE secara parsial; 4) BOPO berpengaruh negatif signifikan terhadap ROE secara parsial.
... Specifically, differences at the cognitive level in how consumers interpret information and make decisions warrant attention, as recent research considers that CSR perceptions act as signals of brands' good nature (Bhattacharya et al., 2021;Connelly et al., 2011b;Zerbini, 2017). Indeed, despite recent recognition that companies' signals can act on the emotional level (Steigenberger and Wilhelm, 2018), signaling theory remains predominantly rooted in the cognitive paradigm of reducing information asymmetry (Connelly et al., 2011a;Spence, 1973). ...
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This paper seeks to understand whether and how perceived retailers’ CSR can reinforce brand defense behavior by customers. Building on signaling theory, the paper proposes that CSR programs signal brands’ good nature, reinforcing brand defense both directly and indirectly through brand passion. The paper proposes and tests a research model based on survey data from UK supermarkets, using structural equation modeling and moderated-mediation analysis. Findings indicate that brand passion mediates the impact of perceived CSR on brand defense but that CSR perceptions have an equally important direct impact on defense. Ethical ideologies play a key role in this process as consumer idealism positively moderates the CSR-passion-defense relationship, whereas egoism negatively moderates it. Another moderator, consumer thinking styles, is partially corroborated, as experiential thinking positively moderates the CSR-passion-defense relationship, whereas the moderating effect of rational thinking is not significant.
... signaling value and its human-capital contributions (Arteaga, 2018;Spence, 1973). Historical analysis of course-transcript data might provide additional insight into the college-wage premium and skill-biased technological change over the past several decades (Goldin & Katz, 2007). ...
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Committing to a major is a fateful step in an undergraduate education, yet the relationship between courses taken early in an academic career and ultimate major issuance remains little studied at scale. Using transcript data capturing the academic careers of 26,892 undergraduates enrolled at a private university between 2000 and 2020, we describe enrollment histories by using natural-language methods and vector embeddings to forecast terminal major on the basis of course sequences beginning at college entry. We find that (a) a student’s very first enrolled course predicts their major 30 times better than random guessing and more than one-third better than majority-class voting, (b) modeling strategies substantially influence forecasting metrics, and (c) course portfolios vary substantially within majors, such that students with the same major exhibit relatively modest overlap.
... Signalling Theory can be traced to Spence's (1973) seminal work on labour economics, where he introduced information asymmetries into economic models of decision-making (Bergh et al., 2014). Signaling theory is useful for describing behavior when two parties (individuals or organizations) have access to different information (Connelly et al., 2011). ...
Article
Purpose: This study examined the relationship between corporate governance attributes and performance of state-owned enterprises through review of literature. The study specifically sought to establish the relationship between corporate governance attributes of accountability, transparency, transformational leadership and stakeholder engagement; and performance of state-owned enterprises with government policy objective as the mediating variable. The study was anchored on Agency, Signalling, Transformational Leadership and Stakeholder Theories to narrow the literature gap. Methodology: The study adopted desk research design through reviewing of relevant literature relating to corporate governance attributes and performance of state-owned enterprises. The study also summarized major contributions of significant studies on the relationship between corporate governance and performance. In addition, the study discussed the theoretical and methodological gaps in the reviewed literature on corporate governance and performance for further research. Findings: Reviewed primary and secondary literature sources showed that, more transparency allows for greater accountability and contributes to better performance by state-owned enterprises. Further, countries that have been able to improve their corporate governance standards and practices have also been able to improve the business environment for and performance of both private and state-owned companies. In addition, SOEs’ performance is influenced by adoption and implementation of corporate governance practices. However, the difference in financial performance of SOEs may be due to several factors including set government policy objectives that constrain the performance of the SOEs. Moreover, countries with ineffective governance and low accountability continue to experience weak SOE performance, poor delivery of public services, stifled competitiveness and growth including through the crowding-out of private companies and increased opportunities for political patronage and corruption. Unique contribution to theory, practice and policy: The study recommended that the principal objective of SOE reforms should be to improve SOEs’ accountability and efficiency by establishing and enforcing adequate reporting of their performance while holding them accountable for reaching or their targets. In addition, the state ownership policy should fully recognize SOE’s responsibilities towards stakeholders and request that SOEs report on their relations with stakeholders. Further, it should make clear any expectations the state has in respect of responsible business conduct by SOE.
... The emergence of the signalling theory is based on the study of information economics under conditions in which buyers and sellers interested with asymmetric information while interplaying in the market. The basis of signalling theory asserts that the signaller possesses more inside information that is either not publicly known or has not reached the receiver, with the quality of the signal of equal importance (Spence, 1973;. In a range of organizational and business situations, the theory has been extensively utilized to examine information asymmetry between two parties that occurs as a result of knowledge difference (Spence, 2002;Stiglitz, 2002;Connelly et al., 2011). ...
Conference Paper
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Abstract The mission of e-Government is to provide better, more efficient, and faster public services from central and local public administration to citizens and businesses. In recent years, Kosovo has significantly increased the application of e-Government, which transforms the activities provided by Public Administration and had a great impact on citizens and businesses by making everyday procedures easier and more efficient. E-Government brings great benefits to society. Benefits can be economic and social, including modernization of administration, education, health, justice, security, business, and trade development, increase in the budget, democracy, culture, scientific research, etc. Within the modernization of the public administration through the extensive use of the Information and Technology Infrastructure the e-Government’s objective is to create a new dynamic relationship between Kosovo’s public administration, citizens, and businesses. By analyzing the current situation from the view of citizens and businesses, this paper will present the level and types of services offered by the government portal e-Kosova. The purpose of this paper is to examine the impact of E-Government implementation on Kosovo institutions to citizens and the business community. In this paper, we intend to introduce the current situation and present the level of implementation of e-Government by analyzing results from the survey conducted by the Regional Cooperation Council 2021 edition of the Balkan Barometer for citizen and business perceptions in Western Balkan Countries. During the short period of implementation, the e-Government in Kosovo faced certain challenges such Covid-19 pandemic, which will be the subject of elaboration in this paper. Keywords: E-Government, Public Administration, e-Kosova, e-Government services.
... To explore the effects of AI-MC tools on the perceived authenticity of an apology, and the ensuing willingness of the recipient of the apology for forgiveness, we rely on the theoretical framework of signaling theory (Spence, 1973). Signaling theory offers a typology of behaviors in contexts that involve information asymmetry between two parties, which can be reduced by using different types of communication signals. ...
Article
As Artificial Intelligence-Mediated Communication (AI-MC) technology is increasingly used to facilitate communication worldwide, its implications for interpersonal relationships in multinational working environments have become more significant. In particular, knowing that AI-MC tools are used by the communicator might reduce recipients' perceptions of the authenticity of emotionally charged messages, such as an apology. Across three scenario-based studies rooted in an interpersonal work-related conflict, we examined the effects of the choice to use AI-MC tools to communicate an apology, focusing on people's perceptions of the genuineness of the apology, and their ensuing tendency to forgive the person apologizing. We consistently found that the choice to use AI-MC tools diminished perceptions of the apology's authenticity and the consequent willingness to forgive, and that self-disclosing the use of AI-MC on the part of the communicator did not mitigate this effect. However, making limited use of AI-MC (selecting to use only one of three available tools) had no negative impact on the perceived authenticity of the apology, suggesting that limiting the use of AI-MC signals a diminished distance between the original intention of the person apologizing and the final formulation of the message of apology, leading to perceptions of a more genuine apology.
... Exp son los años de experiencia laboral; ε es el término de perturbación aleatoria que se distribuye según una Normal (0, σₑ²) La evidencia de que a mayor educación no necesariamente le corresponde mayor salario encuentra también una explicación en la perspectiva institucional y credencialista (Spence, 1973;Collins, 1979;Thurow, 1975): asumiendo que el desempleo es un fenómeno estructural y considerando que los salarios dependen de las características de las plazas laborales más que de la productividad del trabajador, esta perspectiva plantea que los individuos (o los grupos sociales) buscan una ventaja competitiva para la obtención de los puestos de trabajo más productivos acumulando (o poniendo restricciones como la posesión de) títulos académicos por su valor de credenciales. En esta perspectiva, la inflación de las credenciales se explica con la competencia de los individuos (o de los grupos sociales) por los puestos de trabajos más deseables. ...
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Estudios realizados en América Latina indican que la cuota de graduados, aunque ha aumentado, sigue siendo insuficiente para el desarrollo de sociedades basadas en el conocimiento. Sin embargo, hay evidencia de que una cuota no despreciable de trabajadores se encuentra en una situación de sobreeducación. Un patrón similar se encuentra también en los países europeos mediterráneos. Esta problemática responde al tema del desajuste entre educación y empleo, que ha sido debatido desde los años '70 en los países industrializados norteamericanos y europeos. El artículo ofrece un análisis comparativo de las principales cuestiones teóricas y metodológicas del desajuste ocupacional. Se enfoca en los estudios realizados en América Latina y aporta un análisis del caso de Cuba, donde el fenómeno del desajuste ocupacional tiene características propias respecto al resto de los países de la región. El análisis destaca que los determinantes institucionales tienen un rol clave en el desajuste educación empleo. Debates on mismatch between education and employment started the 1970s in North American and European industrialized countries. Whereas at the beginning the main concern was the scarcity of graduates, today it is reversed. However, few studies have been conducted in Latin America. These recent studies indicate that the share of graduates, although it has increased in recent years, is still insufficient for the promotion of a knowledge-based economy. However, empirical evidence shows that a non-marginal share of workers are over-educated. A similar pattern is also found in some Southern European countries. This article provides a wide comparative literature analysis on occupational mismatch (including the addressing of both its main theoretical and methodological aspects) that focuses on studies carried out in Latin America. The analysis points out that institutional determinants play a key-role in occupational mismatch. An original analysis on the Cuban case provides further support to the importance of institutional factors.
... The availability of information may attract the crowd in making decisions, i.e., whether to contribute or not. The signal theory by Ross [24] and Spence [25] states that entrepreneurial activities provide or convey worthy information to the investors and backers to enable them to make contributions or invest in a crowdfunding campaign. The theory indicates that between these two parties (the crowd and project creator), one party must examine how to communicate or signal information and the other party must interpret the information provided in order to make informed decisions. ...
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The purpose of this study was to establish the determinants of crowdfunding campaign successes of African small-to-medium enterprises (SMEs) during the COVID-19 pandemic. The study utilised cross-sectional data, which were collected from TheCrowdDataCentre database. This consisted of 215 crowdfunding projects in Africa during the COVID-19 pandemic. The logistic and ordinary least squares (OLS) regression models were specified to test the research questions of the study. The results of the study documented that the average pledged amount and number of backers variables were positively and significantly related to crowdfunding success. This accords with the signalling theory. Many backers and higher amount pledges signal investor confidence in the project. The results of the study also show that a crowdfunding campaign’s success was positively related to the number of updates. This is consistent with the information asymmetry theory, as frequent updates symptomize transparency; hence, backers will have more information, which will spur them to invest more in the project. These results provide guidelines to practitioners and entrepreneurs on the factors that are important in harnessing crowdfunding resources from crowdfunding sources to ensure the financial sustainability of SMEs as the world emerges from the COVID-19 pandemic.
... This assumption holds in several environments. For example, Spence (1973) showed that investment in education may serve as a signal to prospective employers even if the content of the education is itself negligible. Another evidence for wasteful efforts was provided by Pesendorfer (1995) who described how in fashion they are used to signal unobservable characteristics. ...
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We study two-sided matching contests with two sets, each of which includes two heterogeneous players with commonly known types. The players in each set compete in all-pay contests where they simultaneously send their costly efforts and then are assortatively matched. A player has a value function that depends on his type as well as his matched one. This model always has a corner equilibrium in which the players do not exert efforts and are randomly matched. We characterize the interior equilibrium and show that although players exert costly (wasted) efforts, this equilibrium might be welfare superior to the corner equilibrium. We analyze the cross effects of the players’ types on the expected payoffs of the other players as well as on their effect on the players’ expected total effort, and demonstrate the complexity of these cross effects.
... However, we will first explain the theory that forms the basis of this study, which is the signaling theory. The signaling theory was first proposed by Spence (1973) and developed as well as became a reference for researchers in various disciplines, one of which is financial management. This theory involves two parties; we illustrate that management as the signaler, and investors as the signal receiver. ...
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This paper focused on strategic corporate financial decisions regarding investments to increase firm value moderated by profitability in emerging markets. The analytical method used was panel data analysis, with a total number of observations of 260 energy sector companies on the Indonesia Stock Exchange in 2019-2021. The results of the Chow Test, Hausman Test, and Lagrange Multiplier Test show the selected random effect model. The model shows that there is an effect of investment decisions on firm value in a positive direction and the moderating role of profitability strengthens this effect. The results of the robustness check show that the research model is still consistent with previous findings. Investment decisions have an effect on firm value, and profitability moderates this effect, both in the assumption of changes in control variables or model estimation using quantile regression. Our findings are in line with the idea of signaling theory that information on the company’s investment decisions is a positive signal that the company has good growth opportunities or prospects so that it will increase the firm value and ultimately have an impact on the prosperity of shareholders. Furthermore, profitability strengthens the positive signal of the company’s reputation in the eyes of investors.
... Naturally, exogeneous factors intervene in endogenous dynamics (Isaac, 2009), encouraging adaptation to external events such as stigmatization. These processes can be examined from a demand-side perspective, featuring, for example, producers that use color to signal product quality to customers (Spence, 1973). This perspective appears more pertinent to black metal's period of commercialization, when questions of authenticity and product quality loomed larger. ...
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Color is omnipresent, but organizational research features no systematic theory or established method for analyzing it. We develop a relational approach to color, conceptualizing it as a means of positioning relative to a reference group or style and validating it through a computational method for processing digital images. The research context is Norwegian black metal—a genre of extreme metal music that achieved notoriety in the early 1990s through band members’ criminal activity. Our analysis of 5,125 album covers between 1989 and 2019 confirms the alignment of aesthetic and music features and articulates the role of color in the construction of a relational identity based on forces of association and disassociation. Black metal bands associated with past color choices of non-black metal bands up to a point, after which they started to disassociate from them. The positioning is dynamic, pursuing adaptation to external events. Black metal bands reacted to their stigmatization in Norwegian society by increasing colorfulness and later returning to a darker aesthetic in defiance of the genre’s commercialization. Our analysis attests to color’s ability to organize producers’ exchange of information and attention, illustrating the interweaving of aesthetic features and relational processes in markets.
... According to the Signaling Theory, discussed in Spence's (1973) seminal work, three elements are fundamental for signaling to occur, the signaler, the signal and the receiver. In the context of this research, we understand as signalers the companies that use social media for corporate purposes; the signals are the accounting information disclosed on social media; and the receivers correspond to the other social media users, who use the information disclosed by the companies in the decisionmaking process. ...
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(i) Objetivo: avaliar a influência do uso corporativo de mídias sociais sobre a relevância da informação contábil em empresas brasileiras.(ii) Método: os dados foram coletados na base da Thomson Reuters Eikon e mídias sociais, Facebook e Twitter. A análise ocorreu por meio de estatística descritiva, análise de correlação e regressão linear múltipla OLS. Além disso, utilizou-se o método MOORA para criar um score de uso corporativo das mídias sociais.(iii) Resultados: verificou-se que poucas empresas utilizam as mídias sociais para divulgar informações contábeis. No entanto, os resultados apontam que as informações contábeis divulgadas no Facebook e Twitter são relevantes, o que permite inferir que as mídias sociais podem ser um canal de comunicação importante das empresas com o mercado. Especificamente, em relação à influência da divulgação de informações contábeis no Facebook e no Twitter sobre a relevância da informação contábil, conclui-se que as mídias sociais, quando utilizadas para fins corporativos, aumentam a relevância da informação contábil. Adicionalmente, constatou-se que empresas mais lucrativas que divulgam informações contábeis em mídias sociais apresentam maior relevância da informação contábil, em comparação com empresas de menor lucratividade.(iv) Contribuições: fornece contribuição prática para gestores, ao constatar, por meio de evidências empíricas, que essas plataformas podem trazer benefícios para as organizações, como por exemplo, a possibilidade de aumentar a relevância da informação contábil e criar valor. Para os investidores, contribui ao indicar que as mídias sociais podem ser fonte importante de informação para alimentar seus modelos de decisão.
... For instance, competence and attractiveness (Edwards et al., 2015) can be attributed to positive signals. On the premise of signaling theory (Spence, 1978), signals can be the demographics, personality characteristics, or other features of a profile. Considering the degree to which PSMP signals (i.e., self-presentation of experiences, skills, and opinions) may influence job outcomes is an area that merits further investigation, particularly concerning the differences between occupational and sectoral roles. ...
... Signaling theory menjelaskan bagaimana perusahaan memberikan sinyal kepada pengguna laporan keuangan dan non keuangan. Teori ini pertama kali dikemukakan oleh (Spencer, 1973) juga membahas tentang naik turunnya harga di pasar seperti harga saham, obligasi dan sebagainya, sehingga akan memberi pengaruh pada keputusan investor. Signaling theory terdiri dari empat elemen, yaitu : pemberi sinyal, sinyal, penerima dan umpan balik (feedback). ...
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Penelitian ini bertujuan untuk menguji faktor penentu struktur modal yang berdampak pada nilai perusahaan. Populasi yang digunakan dalam penelitian ini adalah perusahaan properti dan perumahaan yang terdaftar di BEI pada tahun 2016-2019. Sampel yang digunakan adalah metode purposive sampling sebanyak 72 perusahaan yang diteliti. Metode analisis menggunakan regresi data panel, dimana berdasarkan uji model yang terpilih yaitu random effect dan melakukan treatmen robust sebagai estimasi terbaik. Hasil penelitian menunjukkan bahwa capital intensity dan profitabilitas berpengaruh terhadap struktur modal, sedangkan risiko bisnis dan managerial ownership tidak berpengaruh terhadap struktur modal. Risiko bisnis dan profitabilitas berpengaruh terhadap nilai perusahaan, sedangkan capital intensity, managerial ownership dan struktur modal tidak berpengaruh terhadap nilai perusahaan. Capital intensity berpengaruh terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening dan adanya effective tax rate sebagai variabel kontrol. Disamping itu risiko bisnis, profitabilitas dan managerial ownership tidak perpengaruh terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening dan effective tax rate sebagai variabel kontrol.
... Fourth, the online program that we evaluate is targeted at highly-skilled individuals who want to develop a portfolio item that signals their skills. Thus, we relate to the literature on skills signaling (Spence, 1978). Tyler et al. (2000) show that signaling skills based on GED certification substantially increases annual earnings. ...
Preprint
We describe the design, implementation, and evaluation of a low-cost and scalable program that supports women in Poland in transitioning into jobs in the information technology sector. This program, called "Challenges," helps participants develop portfolios that demonstrate capability for relevant jobs. We conduct two independent evaluations, one focusing on the Challenges program and another on a one-to-one mentoring program. We exploit the fact that both programs were oversubscribed to randomize access among applicants and measure the impact of the programs on the probability of finding a job in the technology sector within four months. We estimate that the mentoring program increases the probability of finding a job in technology by 13 percentage points and the Challenges program by 9 percentage points. The benefit of Challenges can be compared to the program cost of approximately $15 per person. Next, we show that treatment effects vary with individual characteristics, and we estimate gains from optimally assigning applicants across the two programs. We find that optimal assignment increases participants' average probability of finding a job in technology by approximately 13% compared to random assignment. Finally, we analyze the counterfactual impact of expanding the available spots in Challenges from 15% to 50% of applicants, while assigning applicants to programs using the proposed targeting rule. Considering the entire applicant pool as the baseline, this generates a 30% increase in technology sector jobs.
... These tend to be unobserved skills such as job-hunting techniques (Battu et al., 1999;Groot & van den Brink, 2000). In addition, excessive education can make up for an absence of vocational qualifications, serves as a voluntary investment in experience at the cost of a lower income and acts as a signaling device for employers (Spence, 1973). Besides, idiosyncratic job characteristics also matter in understanding the occurrence of over-education (Chevalier & Lindley, 2009). ...
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In this study, we used 2020 data from the Panel Study of Chinese University Students to explore the impact of over-education on new graduates’ job satisfaction from a gender perspective. The results indicate that first, female graduates are more likely to be over-educated from an objective standpoint, while male graduates are more likely to think subjectively that they are over-educated. Second, over-educated female graduates have higher levels of job satisfaction than not over-educated ones, but this correlation is not significant for male graduates. Third, subjective awareness of over-education reduces levels of job satisfaction for both female and male graduates. Our research shows that gender segregation remains in the current employment structure in China. Female graduates are more likely than male graduates to enter traditional industries with low requirements and are objectively more likely to be over-educated, and thus they are more competent and have higher satisfaction in their jobs.
... Observing shifts in buy and sell orders provides information market participants use to inform their own behaviour and willingness to trade. This gives rise to one famous aspect of markets-the importance of information asymmetry (Akerlof, 1970;Rothschild & Stiglitz, 1976;Spence, 1973). An example of problematic information asymmetry is insider trading in public securities. ...
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Spoofing—placing orders on financial exchanges intending to withdraw them prior to execution—is widely legally prohibited. I argue instead on two main grounds that spoofing should be permitted and legalised. The first is that spoofing as a form of bluffing remains within the market practice of making legally binding offers—as opposed to lying or betraying trust—and primarily concerns the spoofer’s personal information. As a form of bluffing spoofing helps prevent financial speculators, in particular high-frequency algorithmic traders, from easily profiting by other market actors reliably revealing their underlying preferences through their market activity. The second is that at the systemic level permitting spoofing would benefit non-speculative actors who place orders to hedge economic risk and whose activities provide the raison d’être for financial exchanges, differentiating them from simple forums for gambling. I also address potential concerns that legalised spoofing would drive speculators out of financial markets entirely and, therefore, undermine market liquidity. This work contributes to the wider debate in business ethics regarding bluffing by illustrating the acceptability of bluffs which do not betray counterparty trust or reliance on testimony by remaining within the framework of market practices.
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This study examines the effects of the 2012 education reform in Turkey, which extends the duration of compulsory education from eight to twelve years, on the schooling outcomes of individuals aged between 17-28. For this purpose, we utilize data from the 2018 wave of the Turkish Demographic Health Survey and adopt the Regression Discontinuity Design. We keep track of the changes in the high school attendance of individuals upon completing lower secondary education regardless of grade completion, and changes in the grade completion rates at the high school level. Moreover, the differential effect of the education reform on various subgroups is investigated. Overall, the results from the nonparametric estimation show that the reform significantly increases the fraction of individuals attending high school by 7.52% while the fraction of individuals completing grades 9, 10, 11, and 12 significantly increases by 6.30%, 4.97%, 6.57%, and 13.36% Furthermore, the education reform affects the high school outcomes of females (compared to males) and individuals born in subdistrict and village areas (compared to the individuals born in province/district center) more favorably.
Article
China is now the lender of first resort for much of the developing world, but Beijing has fueled speculation among policymakers, scholars, and journalists by shrouding its grant-giving and lending activities in secrecy. Introducing a systematic and transparent method of tracking Chinese development projects around the world, this book explains Beijing's motives and analyzes the intended and unintended effects of its overseas investments. Whereas China almost exclusively provided aid during the twentieth century, its twenty-first century transition from 'benefactor' to 'banker' has had far-reaching impacts in low-income and middle-income countries that are not widely understood. Its use of debt rather than aid to bankroll big-ticket infrastructure projects creates new opportunities for developing countries to achieve rapid socio-economic gains, but it has also introduced major risks, such as corruption, political capture, and conflict. This book will be of interest to policymakers, students and scholars of international political economy, Chinese politics and foreign policy, economic development, and international relations.
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Purpose This study aims to examine the levels of interim financial reporting (IR) disclosure by listed firms in the Asia-Pacific region and factors influencing these disclosure levels. Design/methodology/approach Drawing on a sample of 700 interim reports issued in 2012 by the top 100 listed firms in seven Asia-Pacific countries (Australia, Hong Kong, Malaysia, Singapore, the Philippines, Thailand and Vietnam), the author constructed a disclosure index consisting of disclosure items commonly required across the sample countries. Using this index, the study measures the extent to which listed firms in the Asia-Pacific Region comply with IR disclosure requirements. The study performs ordinary least square regression to investigate the influence of the four country-level factors including international financial reporting standard (IFRS) adoption, audit review, reporting frequency and reporting lag. Findings This research documents that IR disclosure varies significantly across the region. The IR disclosure levels are positively associated with IFRS adoption, audit review and mandatory of quarterly reporting, but negatively associated with reporting lag. Originality/value IR regulation varies across the Asia-Pacific region, but there is no existing research on the country-level factors influencing IR disclosure practices. To the best of the author’s knowledge, this is the first paper providing some insights into IR disclosure levels by listed firms in the region. It also contributes to the disclosure literature by providing empirical evidence on the country-level factors influencing these disclosure levels. Deriving from the findings, the authors offer recommendations for regulators, investors and listed firms on the issue of reviewing the regulation, using information and preparing IR.
Short-form video has attracted users’ attention and been widely adopted for entertainment. Recently, short-form video has also been used for advertising. However, how short-form video for advertisement influences consumer engagement behavior remains unclear. This study aims to explore key features of short-form video advertisements that influence consumer engagement behavior. Through analyzing data obtained from social media platform TikTok, we discovered that four key features of short-form video—performance expectancy, entertainment, tie strength, and sales approach—are significantly related to consumer engagement behavior. In addition, the results showed that product type moderated the relationship of these effects on consumer engagement behavior. This study is one of the first to investigate the influence of short-form video advertisement features on consumer engagement behavior; thus, it contributes to the social media advertisement literature. It extends consumer engagement behavior research by applying a combination of uses and gratifications theory and signal theory. It also highlights the significance of product type in advertising literature. The use of big data and text analysis contributes from a methodological perspective to social media research. This study also provides practical and managerial implications for sellers and marketers on how to attract consumers to engage in videos and how to make data-driven decisions.
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In the informed principal model with common values, I provide conditions that allow for the characterization of the set of equilibria of the game in which the principal makes a take‐it‐or‐leave‐it offer of a mechanism to the agent. I further examine if and when restriction to direct revelation mechanisms is without loss of generality. Last, I provide clear guidelines for solving economic applications, such as insurance, procurement, security design, and bilateral trading, of the informed principal model. The results are compared with and shown to significantly differ from those obtained in Maskin and Tirole (1992).
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This study aims to examine and analyze an effect of the disclosure of sustainability reports and company ratings on the value relevance proxied by the Earning Response Coefficient of participating companies in the Asia Sustainability Reporting Rating (ASRRAT) listed on the Indonesia Stock Exchange. This research belongs to the quantitative type using secondary data, there are annual report and the sustainability report start from 2017 until 2019. The sample selection method in this study was purposive sampling and resulted in 38 research samples. This study uses sustainability report disclosure and company ranking for independent variable, size for control variable, and Earning Response Coefficient for dependent variable. This result showed that the disclosure of sustainability reports and company rating had no effect on the value relevance proxied by the Earning Response Coefficient of participating companies in the Asia Sustainability Reporting Rating (ASRRAT) listed on the Indonesia Stock Exchange. In addition, company size as a control variable also shows no effect on the value relevance proxied by the Earning Response Coefficient of participating companies in the Asia Sustainability Reporting Rating (ASRRAT) listed on the Indonesia Stock Exchange. Keywords: Asia Sustainability Reporting Rating, Earning Response Coefficient, Sustainability Report, Value Relevance ABSTRAK Penelitian ini bertujuan untuk menguji dan menganalisis ada tidaknya pengaruh pengungkapan laporan keberlanjutan dan peringkat perusahaan terhadap relevansi nilai yang diproksikan dengan Earning Response Coefficient pada perusahaan peserta Asia Sustaianability Reporting Rating (ASRRAT) yang tercatat di Bursa Efek Indonesia. Penelitian ini termasuk ke dalam jenis kuantitatif dengan menggunakan data sekunder yakni laporan tahunan dan laporan keberlanjutan tahun 2017-2019. Metode pemilihan sampel pada penelitian ini yakni purposive sampling dan menghasilkan 38 sampel penelitian. Penelitian ini menggunakan variabel independen yakni Sustainability Report Disclosure dan peringkat perusahaan, variabel kontrol yakni ukuran perusahaan, dan variabel dependen yakni Earning Response Coefficient. Hasil penelitian menunjukan bahwa pengungkapan laporan keberlanjutan dan peringkat perusahaan tidak berpengaruh terhadap relevansi nilai yang diproksikan dengan Earning Response Coefficient pada perusahaan peserta Asia Sustainability Reporting Rating (ASRRAT) yang tercatat di Bursa Efek Indonesia. Selain itu, ukuran perusahaan sebagai variabel kontrol juga menunjukan tidak berpengaruh terhadap relevansi nilai yang diproksikan dengan Earning Response Coefficient pada perusahaan peserta Asia Sustainability Reporting Rating (ASRRAT) yang tercatat di Bursa Efek Indonesia. Kata Kunci: Asia Sustainability Reporting Rating, Earning Response Coefficient, Laporan Keberlanjutan, Relevansi Nilai
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This research aims to test the influence of capital structure, debt policy, and the age of companies on the value of property and real estate sector companies listed on the Indonesia Stock Exchange in 2016-2020. The study also tested whether the size of companies was able to moderate their respective relationships between capital structure, debt policy, and the age of the company to the company's value. The study used a quantitative approach with a comparative causal type. The population in this study is all property and real estate sector companies listed on the Indonesia Stock Exchange in 2016-2020. Sampling techniques using purposive sampling. The data used in this study is secondary data accessed through the IDX website. Data analysis uses multiple regression analysis to hypothesize capital structure, debt policy, and corporate age, as well as an analysis of the value of absolute difference for capital structure, debt policy, and the age of the company to the company's value with the size of the company as a moderation variable. The results of this study showed that the structure of capital and age of the company had a positive and significant effect on the value of the company, while the debt policy had a negative and significant effect on the value of the company. The moderation variable is the size of the company being able to moderate the relationship between the capital structure and debt policy to the value of the company, but not able to moderate the relationship between the age of the company to the value of the company.
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