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This study investigates how Quality Management (QM) programmes, particularly the Baldrige excellence framework, provide an approach to enhance healthcare organisational performance. Two independent methods were used to examine the short-term and long-term effects of winning the Baldrige award and the specific influence of common QM practices on results. The first method assesses the Baldrige Award's impact on hospital performance by examining patient survey data and shows that initial quality improvements are not sustained in the long term. The second method uses confirmatory semantic analysis (CSA), a text-mining method, to analyse 22 Baldrige award-winning applications to determine the relationship between QM practices and organisational results in healthcare settings. The results show that only three QM practices – measurement, analysis, and knowledge management (MAKM), leadership, and operations focus – significantly contribute to organisational performance. Furthermore, CSA findings highlight the dominant role of leadership in driving performance outcomes, with other factors in the framework showing nonsignificant mediation effects. By exploring both the overarching effectiveness of QM programmes across different time lengths and specific practices that contribute to performance, this research provides academic insights with practical application in the healthcare industry. Importantly, the findings highlight the nuanced relationship between QM initiatives and organisational excellence. [ABSTRACT FROM AUTHOR]

The Drugs (Prices Control) Order of 2013 in India regulated the prices of certain essential and life-saving drugs to ensure their affordability and availability, expecting an increase in sales of those drugs. The authors study the effects of the regulation on sales volumes of each regulated drug using a synthetic control approach with sales data from a comparable country that did not experience a regulatory change. They assess the robustness of the results via multiple empirical approaches to triangulate the findings. Contrary to the order's objectives, they find that sales volumes declined for regulated drugs. Since the order placed restrictions on production levels and on drugs exiting the market, the lowered margins of regulated drugs could have pushed pharmaceutical firms to reduce their marketing expenditures on them. The authors provide evidence of such a reduction using detailing data from a large pharmaceutical firm. The findings illustrate that this shift in detailing adversely affected prescriptions from physicians without formal medical degrees who treat poor and disadvantaged people in India—patients that the order was intended to help the most. A survey the authors conducted shows that these physicians rely on detailing more than medically trained doctors. Taken together, the results provide insights into the strategic actions of firms when faced with regulations, and highlight their unintended consequences. The generalizable nature of the study's findings across a broad set of medications has implications for governmental agencies in terms of the need to account for the entire ecosystem when implementing such regulations. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Artificial intelligence (AI) has become an important driver of economic growth and innovation. With rapid advances in AI, firms have a strategic opportunity to re-envision the cognitive reapportionment of tasks between humans, AI, and non-AI technologies. In doing so, firms can transform and dramatically elevate value creation through their business models, processes, and market offerings. We focus on a key risk, patent infringement litigation (PIL), that can adversely impact a firm's value creation with AI. We posit and demonstrate that firms facing AI-PILs would have more negative short term abnormal returns compared to firms facing non-AI PILs. We further suggest that the abnormal returns are moderated by the types of plaintiffs and AI patents in which the abnormal returns are more negative when the plaintiffs are non-practicing entities (versus practicing entities) and when the AI patents at suit concern expertise-driven (versus data-driven) AI. Exploring the moderators jointly, we find evidence that for data-driven AI patents, the negative abnormal returns are stronger when the plaintiffs are practicing entities, but for expertise-driven AI patents, the negative abnormal returns are stronger when the plaintiffs are non-practicing entities. [ABSTRACT FROM AUTHOR]

After digital platforms have become successful in the information technology (IT) industry, incumbents from traditional industries increasingly implement digital platform strategies. However, there is mixed evidence on whether these incumbents benefit from digital platform strategies. To provide systematic insights, we focus on the banking industry. With the emergence of open banking, banks have begun implementing digital platforms to unlock the innovative power of third-party developers. We conducted an event study based on the announcement of digital platform strategies in a global sample of 165 banks. We show that, on average, investors react positively to the announcements. Contrary to our expectations, this effect is more substantial for banks from emerging markets than those from developed markets. Prior artificial intelligence (AI) orientation only partly contributes to investors' favorable perception of a digital platform strategy. These results point to the complex interplay of AI orientation and digital platform strategies, yielding questions for future research. [ABSTRACT FROM AUTHOR]

Do antitrust investigations by the European Commission have a significant impact on the market value of affected companies? This paper examines the effects of 700 antitrust observations regarding dawn raids, Commission decisions and appeals to the General Court or the Court of Justice on the stock prices of the companies involved using an event study methodology. A dawn raid creates an abnormal return of − 1.72% and a Commission decision generates a long-lasting drop of 2.23%. An appeal has no effect if litigated in front of the General Court and a short-lived dip of 1.38% in case of a judgment by the Court of Justice. Longer cartel participation leads to a more substantial negative abnormal return. An important observation is that firms that were granted immunity from the fine do not record any notable effects in stock price, despite the relatively low explanatory power of the monetary value of the fine in the overall market capitalisation decline. We suggest that this could be explained by the signalling effect of the fine to the market, in that sense being more important than initially expected. [ABSTRACT FROM AUTHOR]

Hip fractures, strokes, and heart attacks are common acute health events that can lead to long-term disability, care utilization, and unmet needs. However, such impacts, especially in the long term, are not fully understood. Using data from the Health and Retirement Study, 1992–2018, this study examines the long-term trajectories of individuals suffering such health shocks, comparing with individuals not experiencing health shocks. Hip fracture, stroke, and heart attack are confirmed to have severe implications for disability. In most cases of stroke and heart attack, informal caregivers provide the daily support needed by survivors, whereas following hip fracture, nursing home care is more relevant. These health shocks put individuals on worse trajectories of disability, care utilization, and unmet needs. There is no long-term recovery or convergence with individuals who do not suffer shocks. Unmet need is prevalent, even pre-shock and among individuals who do not experience health shocks, emphasizing the importance of preventative care measures. These findings support policy action to ensure hospitalized individuals, especially those aged 50 and above, receive rehabilitative services and other post-acute care. Furthermore, hospitalization is an event that requires the detection and addressing of unmet care needs beyond the short run. [ABSTRACT FROM AUTHOR]

The outbreak of extreme weather events is increasing in frequency for the last decade, resulting in tremendous human and industrial losses worldwide. Evaluating and managing the effects of such events are highly urgent matters for firms, but the literature on this topic is limited. In this study, the effects of extreme weather events on the stock market performance of firms were estimated to provide a foundation for exploring how to manage such effects. From the perspective of the shareholder view, the heterogeneous effect of corporate social responsibility (CSR) on stock performance associated with extreme weather events were examined. Data on natural disasters that were caused by six types of extreme weather and occurred between 2001 and 2021 in China were used to construct a database of 2,718 Chinese listed manufacturing firms and 23,529 observations regarding the potential effects by extreme weather events. An event analysis indicated that the extreme weather events bring an average of 0.97% drop in the stock performance of potentially affected firms for the month that the event starts and the next month. A subsequent cross-sectional analysis revealed that a high CSR level is associated with low market value during extreme weather events, while a high level of stock analyst attention alleviates the negative effect of CSR on the stock performance of extreme weather events. This study enriches the existing literature and offers practical insights for managers in the fields of CSR and operations management, highlighting the complex dynamics between CSR activities, analyst attention, and stock market performance during extreme weather events. [ABSTRACT FROM AUTHOR]

Farmers make production decisions despite future output price uncertainty. As a result, farmers' expectation of future output price is an important determinant of investment and the supply of commodities. However, our understanding of the process by which farmers form their expectations is still limited. This study uses direct measures of farmers' financial condition expectations collected through the Purdue University–CME Group Ag Economy Barometer to measure the effect of surprise information on farmers' short‐ and long‐term expectations. The effect is identified using an event study framework previously used to examine the impact of market information on commodity futures markets. Using ordered logistic regressions and variation between professional and United States Department of Agriculture forecasts of corn ending stocks, we demonstrate that farmers' short‐term expectations of the financial condition of the broader agricultural economy is altered by surprise information. This study provides a novel step toward understanding the process by which farmers incorporate new information in their price expectations. For example, our findings suggest that farmers perceive short‐term corn market information surprises will affect the U.S. agricultural sector to a greater degree than their farm. Additionally, farmers do not perceive that short‐term corn market information surprises will carry long‐term implications. [ABSTRACT FROM AUTHOR]

Purpose: This study analyzes the performance implications of adopting blockchain to support supply chain business processes. The technology holds as many promises as implementation challenges, so interest in its impact on operational performance has grown steadily over the last few years. Design/methodology/approach: Drawing on transaction cost economics and the contingency theory, we built a set of hypotheses. These were tested through a long-term event study and an ordinary least squares regression involving 130 adopters listed in North America. Findings: Compared with the control sample, adopters displayed significant abnormal performance in terms of labor productivity, operating cycle and profitability, whereas sales appeared unaffected. Firms in regulated settings and closer to the end customer showed more positive effects. Neither industry-level competition nor the early involvement of a project partner emerged as relevant contextual factors. Originality/value: This research presents the first extensive analysis of operational performance based on objective measures. In contrast to previous studies and theoretical predictions, the results indicate that blockchain adoption is not associated with sales improvement. This can be explained considering that secure data storage and sharing do not guarantee the factual credibility of recorded data, which needs to be proved to customers in alternative ways. Conversely, improvements in other operational performance dimensions confirm that blockchain can support inter-organizational transactions more efficiently. The results are relevant in times when, following hype, there are signs of disengagement with the technology. [ABSTRACT FROM AUTHOR]

The Tax Cuts and Jobs Act of 2017 (TCJA) changed tax policy in two important aspects. It limited state and local tax deductions (SALT) to $10,000 and lowered marginal tax rates in most income brackets. In this analysis, I estimate house price time series models for 20 U.S. cities using Case-Shiller data and test for series breaks when TCJA was adopted and implemented. The purpose is to test whether there is a unit root with breakpoints in each series. If so, the TCJA shock was permanent, not transitory, and the time series process is not mean reverting. Results reveal significant breaks in 12 of the 20 city indices. Additionally, there are significant breakpoints in 22 of the 48 tests across city price tiers (16 cities with three house price tiers each). The modal break date is the month of TCJA legislation passage with another 13 significant breakpoints within six months of TCJA adoption. Results indicate that TCJA was associated with an initial negative effect on house prices in many housing markets and price tiers. Importantly, the presence of unit root processes indicates that house price dynamics are more variable subsequently. [ABSTRACT FROM AUTHOR]

Political instability is commonly thought to discourage investment and reduce economic growth. We challenge this consensus by showing that instability does not systematically depress investment. Using an event study approach, we examine daily returns of national financial indices in every country that experienced an irregular regime change subject to data availability. Returns following resignations are large and positive (+4 percent), while those following assassinations are negative and smaller in magnitude (−2 percent). The impact of coups tends to be negative (−2 percent), but we show that a pro-business coup results in large positive returns (+10 percent). We also find evidence that authoritarian or anti-business regime changes are more likely to lead to capital flight than democratic or pro-business changes. The immediate impact of political instability on investment is therefore dependent on the type of regime change and its expected impact on future growth. [ABSTRACT FROM AUTHOR]

GST implementation in India is a macroeconomic event that changed the operating conditions and profitability of businesses. This study attempts to empirically test the market reaction of GST implementation on seventeen sectors of the Indian economy through the event-study methodology. Additionally, we assess the semi-strong efficiency of the Indian stock market during the event. Findings show that the event has heterogeneously affected different sectors as the FMCG sector is positively affected while the Pharmaceutical and Power sectors are adversely affected. IT sector is moderately positively affected whereas, consumer durable, energy, media, metal, oil, and reality are moderately negatively impacted. We also infer that the market doesn't exhibit thorough efficiency of semi-strong form. The study is unique in its analysis of the sector-wise impact of GST implementation in India. This study is also useful for investors in making investment strategies and for policymakers to observe the policy impact on the stock market. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate how the US stock market deals with the announcement of a strategic Chapter 11, a special type of corporate bankruptcy in which companies seek the protection of the law not as a last resort but as a planned business decision. Design/methodology/approach: An event study is conducted by using data concerning a group of US publicly traded companies that entered Chapter 11 for both strategic and nonstrategic reasons. Regression analysis is also used for robustness purposes. Findings: This study reveals that initiating both strategic and nonstrategic Chapter 11 proceedings results in negative and statistically significant abnormal stock returns before and at the bankruptcy announcement date. However, in the period following the filing, the market gradually views strategic bankruptcy cases as positive news, whereas nonstrategic Chapter 11 filings continue to be perceived as distinctly negative. Originality/value: To the best of the author's knowledge, this is the first paper that documents an asymmetric market reaction to the announcement of Chapter 11, suggesting that, in certain circumstances, managers can add value by filing a strategic bankruptcy. [ABSTRACT FROM AUTHOR]

Nearly one‐third of asset sale announcements are preceded by a public statement of the intent to sell. These voluntary disclosures generate significant average returns of 1.1%. Pre‐announcements bias returns around the actual asset sales toward zero. Due to opportunistic managerial behavior, pre‐announcements occur after poor stock performance and CEO turnover. Managers also opportunistically exercise options around the pre‐announcements and receive potential benefits from the uptick in stock prices. Although we find no effect of pre‐announcements on long‐term operational performance, we do observe a negative effect on stock returns using three and four‐factor models. [ABSTRACT FROM AUTHOR]

This study investigates how CEO-related events covered in news media affect consumer evaluations. The conceptual model proposes six CEO-related news categories and details their impact on consumer evaluations as well as the degree to which these responses determine firms' stock prices. The authors analyze a rich sample of 725 CEO-related events of 125 firms covered in leading US news outlets from 2009 to 2019. Using an econometric approach and an event study, they find that stories about CEO scandals detrimentally affect consumer evaluations, which translates to an immediate loss of more than US$500 million on stock markets, whereas stories about CEO altruism and CEO political ideologies have a positive impact on consumer evaluations. The authors provide insights into short and long-term effects and formulate actionable implications. [ABSTRACT FROM AUTHOR]

This study delves into the intra-industry effects following a firm-specific scandal, with a particular focus on the Facebook data leakage scandal and its associated events within the U.S. tech industry and two additional relevant groups. We employ various metrics including daily spread, volatility, volume-weighted return, and CAPM-beta for the pre-analysis clustering, and subsequently utilize CAR (Cumulative Abnormal Return) to evaluate the impact on firms grouped within these clusters. From a broader industry viewpoint, significant positive CAARs are observed across U.S. sample firms over the three days post-scandal announcement, indicating no adverse impact on the tech sector overall. Conversely, after Facebook's initial quarterly earnings report, it showed a notable negative effect despite reported positive performance. The clustering principle should aid in identifying directly related companies and thus reducing the influence of randomness. This was indeed achieved for the effect of the key event, namely "The Effect of Congressional Hearing on Certain Clusters across U.S. Tech Stock Market," which was identified as delayed and significantly negative. Therefore, we recommend applying the clustering method when conducting such or similar event studies. [ABSTRACT FROM AUTHOR]

AbstractThe policy-driven development of China’s new energy vehicle (NEV) has been accompanied by significant fluctuations in the industrial chain due to the substantial fiscal subsidy removal. The study aims to examine the impact that three typical fiscal subsidy removal events enacted by China’s government have on various segments of the NEV industrial chain. The three events were enacted in 2016 (a 20% reduction and a limit for local subsidies), 2018 (raising the threshold, no subsidies for range below 150 km, and a 4-month transitional period), and 2019 (a 50% reduction, full cancelation of local subsidies, and a 3-month transitional period). This is done by applying the event study method and a difference-in-difference framework to finance data from capital market and sales data traffic management bureau. Empirical evidence suggests that, on the supply side, the three removal policies have caused various negative influences on companies involved in the industrial chain, with the midstream (e.g. battery, motor, and electric control) being the component of the chain affected the most by the policy removal. On the demand side, the events in 2016 and 2019 have decreased the vehicle sales in NEV pilot cities nationwide. Rather than discouraging consumer purchases, however, the event in 2018 has counter-intuitively boosted vehicle sales due to proper establishment of the transitional period (in comparison to 2019) of the policy. Further, NEV sales in cities with small population are found to be more dependent on government fiscal subsidies. We offer management suggestions and make policy recommendations for subsidy removal. [ABSTRACT FROM AUTHOR]

We examine investor reaction to corporate socio-political activism (CSA). CSA relates to companies taking a stance on divisive political and social issues. We contribute to existing research on CSA by showing that activism is beneficial for companies, especially when societal discourse about a socio-political issue becomes noisy. In addition, we highlight that investor reaction is more positive for companies engaging in a higher intensity of activism. Investors perceive that the stakeholders will reward companies that decide to take a radical stance by owning and championing a specific socio-political issue to fight for broader societal change. [ABSTRACT FROM AUTHOR]

Copyright of Revista Gestão & Tecnologia is the property of Revista Gestao & Tecnologia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This paper aims to examine the short-term market impact of the beginning of the military conflict between Russia and Ukraine (24 February 2022), the world's largest oil and gas companies. Design/methodology/approach: The authors examine the world's 100 largest listed oil and gas companies at and around the beginning of the military conflict between Russia and Ukraine using an event study methodology. Findings: The authors observe a positive and statistically significant stock price reaction at and around the military conflict. These results are consistent with the asset pricing perspective. Conversely, the stock market returns of Russian oil and gas companies, as well as those companies that were "forced" to divest in Russia due to corporate activism, exhibit a negative and statistically significant impact from the conflict. These reactions are reinforced or mitigated by company-specific characteristics such as size, profitability and institutional ownership. Finally, the findings indicate that companies engaged in oil and gas exploration and production report abnormally higher returns compared to firms in the other two subsectors of the industry. Originality/value: The effect of the war on stock markets has been relatively little examined in the financial theory. This study intends to fill this gap in the literature. [ABSTRACT FROM AUTHOR]

Abstract Mergers and acquisitions (M&A) with financial technology (fintech) companies can be an effective way for firms to obtain new technologies and capabilities. However, the market reaction to fintech M&A announcements has received limited attention in the empirical academic literature. This study assesses the impact of fintech M&As on stock returns and examines whether macroeconomic variables influence the abnormal return of fintech M&As. Using event study analysis, we found that fintech M&A announcements generate a significant positive short-term abnormal return. Furthermore, we demonstrated that macroeconomic parameters, including Gross domestic product (GDP) growth, inflation rate, the share of services in GDP, and aggregate export growth, positively affect abnormal returns. In contrast, private investment, consumer spending, and an economy’s size negatively influence fintech M&As’ abnormal returns.

This article examines equity market perceptions of fair value reporting for tangible assets. We identify six events—four designated as increasing, two as decreasing—affecting the likelihood of U.S. adoption of fair value reporting for investment property (i.e., real estate) assets, one of the largest asset classes in the world. Fair value adoption in the United States would facilitate convergence of one of the widest remaining disparities between U.S. reporting and International Financial Reporting Standards (IFRS): accounting for tangible investment property assets, where the United States (IFRS) requires depreciated historical cost (recognized or disclosed fair values). Using a sample of U.S. investment property firms, we document an average positive market reaction for movement toward fair value reporting. We further find predictable cross-sectional variation, with the market reaction increasing for firms with greater commitment to high-quality reporting, greater investor demand for fair values, higher financial risk, and staler asset values. Overall, the results are consistent with U.S. equity markets perceiving net benefits to movement toward a fair value reporting approach for this asset class. [ABSTRACT FROM AUTHOR]