News

Daily box office earnings can accurately predict stock market returns, according to a new study.

Traditionally quarterly and monthly consumption data is used to predict stock market performance. But using box office earnings – a measure that captures consumption on a more frequent basis – offers more timely and relevant data for decision-makers in the financial markets.

Tangible rewards motivate employees when they’re easy to use, pleasurable, unexpected, and distinct from salary, a new study found.

A recent survey of firms in the United States revealed that 84 per cent spent more than $90 billion annually on tangible employee rewards, such as gift cards, recreation trips and merchandise, in hopes of increasing productivity.

A recent trend in organizations is to motivate employees with goal-based prosocial rewards, whereby employees must donate their rewards to charities upon goal attainment. We examine the motivational effects of goal-based prosocial rewards versus cash rewards under different levels of goal difficulty. We develop our hypotheses based on affective valuation theory, which posits that when valuing uncertain outcomes by affect rather than calculation, individuals are largely insensitive to changes in probability of the outcomes, including probability of goal attainment.

Using 9,801 director appointments during 2003-2014, we document the dramatic impact of connections - 69% of new directors have professional ties to incumbent boards, a group representing 13% of all potential candidates.

Many countries have imposed tax policies that limit the deductibility of interest costs, creating a plausibly exogenous increase in the net cost of borrowing. The limits are based on financial accounting numbers, adding a new implication to managers’ choices. Firms in these countries are also expected to rely less on debt financing and face weaker demand for conservative financial reporting from creditors as compared to firms in other countries.

The Effect of Relative Performance Information and Individual Performance Incentives on Knowledge Sharing

COVID-19 has disrupted financial statement auditing globally and impacted group dynamics in an industry vital to the health of the economy, according to a new study.

A significant and increasing number of North American organizations use tangible rewards to motivate their employees. Despite the widespread use of tangible rewards, there is limited understanding as to what makes them effective.

Millions of investors and countless fund managers direct their investments to companies that are highly-rated on the basis of their environmental, social, and governance (“ESG”) activities in an attempt to do good. The claim by ESG advocates, pundits, and many academics that highly-rated ESG companies and funds also deliver superior returns bolsters this move: Doing better by doing good. The best of all worlds.

But do ESG ratings really deliver on the promise? Are highly-ranked ESG businesses really more caring of the environment, more selective of the societies in which they operate, and more focused on countries with good corporate governance? In short, is ESG really good? The answer is no.

The theme for this year’s International Women’s Day is #BreakTheBias, calling people to imagine a gender-equal world free of stereotypes, bias and discrimination. This is also a day to recognize and celebrate the social, economic, cultural and political achievements of women.