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1 – 10 of over 255000Rajib Hasan and Abdullah Shahid
We highlight two mechanisms of limited attention for expert information intermediaries, i.e., analysts, and the effects of such limited attention on the market price discovery…
Abstract
We highlight two mechanisms of limited attention for expert information intermediaries, i.e., analysts, and the effects of such limited attention on the market price discovery process. We approach analysts' limited attention from the perspective of day-to-day arrival of information and processing of tasks. We examine the attention-limiting role of competing tasks (number of earnings announcements and forecasts for portfolio firms) and distracting events (number of earnings announcements for non-portfolio firms) in analysts' forecast accuracy and the effects of such, on the subsequent price discovery process. Our results show that competing tasks worsen analysts' forecast accuracy, and competing task induced limited attention delays the market price adjustment process. On the other hand, distracting events can improve analysts' forecast accuracy and accelerate market price adjustments when such events relate to analysts' portfolio firms through industry memberships.
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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management…
Abstract
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.
Xunan Feng and Na Hu
Based on the theory of limited attention, the purpose of this paper is to investigate whether the investor behavior is influenced by attention, using the sample from earning…
Abstract
Purpose
Based on the theory of limited attention, the purpose of this paper is to investigate whether the investor behavior is influenced by attention, using the sample from earning announcement in China.
Design/methodology/approach
Empirical research using the earning announcement data in China. Specifically, the authors use the sample from 2005 to 2010 in listed A-share firms with earning announcements in Shanghai and Shenzhen stock market. Panel data regressions are used with Newey and West (1987) to correct for the potential heteroskedasticity and autocorrelation. The empirical results strongly support the hypothesis that limited attention impact investor behavior in China.
Findings
The authors find that the immediate price and volume reaction to earning surprise is much weaker and post-announcement drift is much stronger when a greater number of firms make earning announcements on the same day. The authors explain these findings mainly from behavioral bias. When investors process multiple information signals immediately or perform multiple objects simultaneously, their attention will be allocated selectively due to cognitive constraints. Such limited attention causes severe underreaction to immediate earnings announcement, therefore leads to mispricing abnormal related to public accounting information. In the long-run, the market adjusted and there is post-announcement drift.
Research limitations/implications
Consistent with Hirshleifer et al. (2009), the findings in this study indicate that individual investors’ behaviors are influenced by their limited attention in China. The results are different from Yu and Wang (2010) conclusions that same-day concentrated announcement help investors and facilitate information dissemination in China. The findings are explained by the investor distraction hypothesis proposed by Hirshleifer et al. (2009) that investor distraction causes market underreaction.
Practical implications
The arrival of simultaneously extraneous earning information cause market prices and trading volume to react slowly to the relevant news about a firm because competing information signals distract investor from a given firm, causing market price to underreact to relevant news. These finding help us understand investor behavior and the impact of limited attention on security market.
Social implications
Investor limited attention not only affects their stock-buying behavior, but also has an important impact on the efficiency of security market. Specifically, limited attention drive immediate underreaction to earning announcement and the post-earning announcement drift, especially when a greater number of same-day earning announcements are made by other firms.
Originality/value
Limited attention affects security market in China.
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Dina Ribbink, Hubert Pun and Tingting Yan
When developing a new product, a buying firm solicits revenue sharing bids from two competing suppliers. Bidding behaviors of suppliers do not always align with predictions from…
Abstract
Purpose
When developing a new product, a buying firm solicits revenue sharing bids from two competing suppliers. Bidding behaviors of suppliers do not always align with predictions from rational agent models due to task uncertainty and bounded rationality, which could result in non-optimal supplier offers and ultimately hurt buying firm interests. This paper aims to discuss the aforementioned issues.
Design/methodology/approach
The authors built an analytical model that considers the impact of supplier technological risk, buyer–supplier coordination cost and supplier loss aversion on the optimal bid of the supplier. Next, using limited information processing capacity as a theoretic lens, the authors explore antecedents to the size of a focal supplier's bidding error, the absolute difference between the actual bid and the optimal bid. The authors used quantitative lab experimental data to test the hypotheses.
Findings
(1) Bounded rational bidders often fail to differentiate between relevant and irrelevant competitive information when placing bids, (2) loss aversion of a bidder significantly affects not only levels of bids, particularly for bidders with competitive disadvantages, but also sizes of the bidding error and (3) competitive information that has clearer performance implications are more influential in reducing sizes of bidding errors.
Originality/value
The results provide a comprehensive view of the bidding behaviors of a bounded rational supplier in an innovation outsourcing context with competition. With the results, managers now have a better understanding of behavioral influencers behind non-optimal supplier bids in an innovation outsourcing context.
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This report is the result of a five‐month survey of information provision in the London Borough of Islington. It looks at information on learning opportunities for adults and…
Abstract
This report is the result of a five‐month survey of information provision in the London Borough of Islington. It looks at information on learning opportunities for adults and complements Brenda Neale's survey of adult learner needs which identified a lack of accessible information as a major barrier for adults in the Borough wishing to return to learning.
Parvez Mia, James Hazelton and James Guthrie
This paper aims to explore the disclosure of greenhouse gas (GHG) emissions by megacities. Three dimensions were considered. First, what communication channels are used by world…
Abstract
Purpose
This paper aims to explore the disclosure of greenhouse gas (GHG) emissions by megacities. Three dimensions were considered. First, what communication channels are used by world megacities to disclose their emissions reduction target (ERT) and emissions reduction actions (ERA)? Second, the consistency of disclosed ERT and ERA across different channels. Third, the quality of the disclosed ERA in different channels.
Design/methodology/approach
Ten megacities selected for review were in Australia, Europe, the USA, the UK and South Africa. First, ERT and ERA information was searched in different disclosure media to identify the common communication channels used by the megacities. Second, the documentary analysis was undertaken to assess the consistency of reported ERT and ERA information across the identified channels. Third, a scoring system was developed and applied to evaluate the quality of the disclosed ERA information, based on the extent to which megacities provided descriptions of emission reduction actions and reported the impact of the actions and the cost to implement them.
Findings
Megacities primarily used third-party channels and their channels to disclose ERT- and ERA-related information. Social media use to provide climate change information is also growing. The study also finds that ERT information is consistent between third-party channels and megacities’ channels. However, around half of the disclosed ERA between third-party and megacities’ channels are not consistent. Quality assessment for the disclosed ERA in different channels shows that megacities have provided limited information regarding the impacts and the cost of their ERA, which raises a question about the usefulness of disclosure.
Research limitations/implications
The findings are important for policymakers and city officials designing cities’ GHG reporting standards and developing policies for programs to reduce emissions. Also, for stakeholders’ understanding of cities’ commitment and actions to reduce emissions, as well as the impact of their actions, and for managers responsible for measuring, reporting and mitigating emissions from current and future actions.
Originality/value
Prior studies primarily focused on corporate greenhouse emissions disclosure to the carbon disclosure project, whereas this paper examines emissions disclosure at the geographic level. Moreover, prior studies of the public sector focused on the scope of climate change disclosure but did not evaluate the consistency and quality of the disclosure. However, this study explores three different disclosure channels and assesses consistency and quality. A further novel aspect of the study is its focus on the disclosure of emissions reduction targets and actions.
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