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Introduction and summary In the first quarter of 2020, as the scale of the Covid-19 crisis became apparent, equity indexes in the United States endured one of their most dramatic [...]

We construct a measure of corporate purpose within a sample of U.S. companies based on approximately 500,000 survey responses of worker perceptions about their employers. We find that this measure of purpose is not related to financial performance. However, high-purpose firms come in two forms: firms characterized by high camaraderie between workers and firms characterized by high clarity from management. We document that firms exhibiting both high purpose and clarity have systematically higher future accounting and stock market performance, even after controlling for current performance, and that this relation is driven by the perceptions of middle management and professional staff rather than senior executives or hourly or commissioned workers. Taken together, these results suggest that firms with midlevel employees with strong beliefs in the purpose of their organization and the clarity in the path toward that purpose experience better performance. Funding: The authors recognize the generous research grant from Strategy CDA at Columbia Business School to support this research. C. Gartenberg recognizes financial support from NYU Stem School of Business and Wharton School at University of Pennsylvania. A. Prat recognizes financial support from Columbia University. G. Serafeim recognizes financial support from the Division of Research and Faculty Development of the Harvard Business School. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2018.1230. Keywords: employment contract * governance and control * strategy and firm performance * strategy implementation * management processes * trust, Introduction Does purpose influence firm performance? More than two decades ago, Bartlett and Ghoshal (1994) issued a call for scholars to consider purpose as the essential precursor to effective strategic [...]

This research addresses whether audit committee financial expertise matters when making investing decisions. While prior studies have examined the effects of audit committee financial expertise on the stock market, this study makes a contribution by investigating how audit committee financial expertise affects individual investors' decisions. The study uses an experimental approach involving a 2x2 between subjects design. Results indicate that investing decisions are affected by whether a company's audit committee has a member with financial expertise. Additionally, some evidence indicated that replacing a nonfinancial audit committee member with a financial expert appears to send a positive signal to investors. Conversely, replacing a financial expert with a nonfinancial audit committee member sends a negative signal. Finally, there is no evidence that investors view the loss of a financial expert on the audit committee as different from not having had a financial expert to begin with., Boards of directors of large corporations typically have an audit committee whose responsibility is to monitor the company's financial reporting process. Many companies have audit committees that include at least [...]

Abstract Despite the clearly visible effects of analysts' pressures on C-level executives in the popular press, there is limited evidence on their effects on marketing spending decisions. This study asks [...]

ABSTRACT As a result of the dependency of United States (US) on Nigerian oil exports, coupled with her greatest share in Nigerian foreign direct investment, the recent global financial crisis [...]

ABSTRACT The relationship between macroeconomic risk and security returns has been central to financial economics. A well-known concept in capital asset pricing theory is that only systematic risk factors affect [...]

The article proposes that if sociology is to make sense of a world that is ever more complex and complicated, it is important to reconsider the scale(s) of our relations and actions. Instead of assuming a nested vertical hierarchy of the micro to macro binary, scale should be treated not only as multiple, but also as something produced and sustained in practice. Coming to grips with the complex world, we are living in also necessitates attending to the conduits and connections between various sites, fields, and terrains to which our lives are entangled. The article concludes with a note on the marginalization of sociology from public discussions, and it argues that it is possibly by attending to ambiguity and to the unfinished making of our contemporary world that sociology might have the most to give to discussions about the economy, about the future of humanity, and how to organize society. Cet article suggere que si la sociologie doit nous eclairer sur le sens d'un monde de plus en plus complexe, il est important de revoir l'echelle de nos relations et actions. Au lieu d'assumer une hierarchie verticale de la dualite micro-macro, cette etendue doit etre traitee non seulement comme multiple, mais aussi comme une chose produite et soutenue par la pratique. Pour faire face a la complexite du monde dans lequel nous vivons, il faut aussi de s'occuper des conduits et connections entre des sites divers, des champs, et des terrains dans lesquels nos vies se deroulent. Cet article conclut avec une note sur la marginalisation de la sociologie dans les discussions publiques ; et il defend l'idee que c'est possiblement en apprehendant l'ambiguite et la construction incomplete de notre monde contemporain que la sociologie peut etre la plus fructueuse en termes de discussions portant sur l'economie, le futur de l'humanite, et l'organisation de la societe., HOW IS SOCIOLOGY EQUIPPED to make sense of a world of unprecedented connectivity, of a world where, say, a single computer glitch is capable of potentially crashing the entire global [...]

ABSTRACT Interest rate uncertainty has adverse effects on stock market performance. Despite the considerable studies on the relationship between interest rate and stock market return, the relationship between interest rate [...]

ABSTRACT The paper empirically investigates the relationship between bank, stock market and economic growth in Bangladesh. In investigating empirical relationship , GDP at the current price, private sector credit given [...]

ABSTRACT Promotion of regional stock market integration is critically meaningful for regional development. Since last couple of decades stock markets Integration has been widely seen as the most exciting and [...]

The objective of this paper is to examine the reasons of firm-level one-day share price shocks and post -shock reaction. Positive and negative shocks are defined and detected by using the official news providers, which are required to disclose price-sensitive information. No information that accompanied one-day share price shocks was found. It is suggested that irrational behavior by uninformed investors drives the stock market returns. The reaction to these large price movements has been investigated as part of the overreaction hypothesis and the results were supportive of short-term price reversal in the case of price declines. Keywords: large price movements, information and market efficiency, overreaction, price reversals, Macedonian Stock Market. Cilj ovog rada je ispitati razloge jednodnevnih naglih promjena cijena dionica poduzeca i reakcija na trzisni sok. U radu se definiraju i identificiraju pozitivni i negativni sokovi, pri cemu se koriste sluzbeni izvori informacija, koji moraju objavljivati informacije o kojima ovisi cijena. Nisu otkrivene informacije povezane s jednodnevnim sokovima, odnosno naglim promjenama u cijenama dionica. Smatra se da iracionalno ponasanje neinformiranih investitora utjece na povrate na financijskom trzistu. Reakcije na velike promjene u cijenama dionica istrazivane su kao dio hipoteze o pretjeranoj reakciji i rezultati su hipotezu potvrdili u slucaju kratkotrajnog preokreta u cijeni, odnosno u slucaju kada cijene padaju., UDC 336.763 1. INTRODUCTION In turbulent transition times many stock markets experience sharp falls and rises in security prices. The reasons of and reaction to such changes should generate renewed [...]

The security market line accords with the capital asset pricing model by taking on an upward slope in pessimistic sentiment periods, but is downward sloping during optimistic periods. We hypothesize that this finding obtains because periods of optimism attract equity investment by unsophisticated, overconfident, traders in risky opportunities (high beta stocks), whereas such traders stay along the sidelines during pessimistic periods. Thus, high beta stocks become overpriced in optimistic periods, but during pessimistic periods, noise trading is reduced, so that traditional beta pricing prevails. Unconditional on sentiment, these effects offset each other. Although rational explanations cannot completely be ruled out, analyses using earnings expectations, fund flows, the probability of informed trading, and order imbalances do provide evidence that noise traders are more bullish about high beta stocks when sentiment is optimistic, whereas investor behavior appears to accord more closely with rationality during pessimistic periods, supporting our hypothesis. Keywords: finance; asset pricing; investment; management History: Received December 3, 2013; accepted September 21, 2014, by Wei Jiang, Finance. Published online in Articles in Advance April 27, 2015., 1. Introduction The capital asset pricing model (CAPM) of Sharpe (1964), Lintner (1965), and Mossin (1966) is an integral element of capital budgeting decisions. It posits that if traders are [...]