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Market Consequences (market + consequence)

Distribution by Scientific Domains

Humanities and Social Sciences	50%
Business, Economics, Finance and Accounting	50%

Selected Abstracts

Market Consequences of Earnings Management in Response to Security Regulations in China,

CONTEMPORARY ACCOUNTING RESEARCH, Issue 1 2005
IN-MU HAW
Abstract Under the 1996-98 security regulations in China, the accounting rate of return on equity (ROE) has to be greater than 10 percent for three "consecutive" years for a firm to qualify for stock rights offers. Despite declining economic conditions during this period, the percentage of firms reporting ROE between 10 and 11 percent is about "three" times that for 1994-95. This unique regulatory environment provides a natural experimental setting for the empirical assessment of earnings-management behavior and its consequences. This study examines whether listed Chinese firms manage earnings to meet regulatory benchmarks and whether regulators and investors consider the quality of earnings in their respective regulatory and investment decisions. On the basis of a sample of listed Chinese firms from 1996 to 1998, we observe that managers execute transactions involving below-the-line items and use income-increasing accounting accruals to meet regulatory ROE targets for stock rights offerings. The firms that apply for, but fail to receive, regulatory approval manage earnings more significantly than do firms that receive approval and pair-matched control firms. Our market study also suggests that investors differentiate the quality of earnings and put less value on earnings suspected of a greater degree of management. Overall, our results imply that the regulatory bodies and investors to some extent make rational adjustments for the quality of earnings. [source]

Choice of Technology and Labour Market Consequences: An Explanation of US-Japanese Differences

THE ECONOMIC JOURNAL, Issue 468 2001
Hodaka Morita
This paper provides an explanation for U.S.-Japanese differences concerning continuous process improvement, turnover rate, and the level and firm-specificity of human capital accumulation. Connection between continuous process improvement and the firm-specificity of training causes multiplicity of equilibria. In the Japanese equilibrium, each firm conducts continuous process improvement because other firms do so, and as a consequence training provided by such a firm becomes less effective in other firms. This lowers the turnover rate, which, in turn, increases firms' incentives to train employees. In the US equilibrium, training is general, which raises the turnover rate and decreases incentives to train. [source]

The Onset of Health Problems and the Propensity of Workers to Change Employers and Occupations

GROWTH AND CHANGE, Issue 3 2003
Jodi Messer Pelkowski
Although many studies have investigated how poor health affects hours of work and labor force participation, few have examined the extent to which individuals adapt in order to remain in the labor market. Individuals experiencing health problems may move to different types of work in order to remain in the labor force or to reduce the negative labor market consequences of illness. This paper investigates the movement between employers, and among occupation categories when changing employers, using data from the Health and Retirement Study (HRS). One advantage of the HRS is that its questions on life-cycle employment and health patterns permit a long-term perspective on job mobility that is unavailable in most other datasets. Workers with health problems are more likely than healthy workers to remain with their current employer than to switch employers. But among those who switch employers, those with health problems are more likely to change broad occupational categories than are healthy workers. While many individuals remain with the same employer after the onset of health problems, many do switch employers and occupations, even in the presence of ADA legislation. [source]

Carceral Chicago: Making the Ex-offender Employability Crisis

INTERNATIONAL JOURNAL OF URBAN AND REGIONAL RESEARCH, Issue 2 2008
JAMIE PECK
Abstract This article explores the urban labor market consequences of large-scale incarceration, a policy with massively detrimental implications for communities of color. Case study evidence from Chicago suggests that the prison system has come to assume the role of a significant (urban) labor market institution, the regulatory outcomes of which are revealed in the social production of systemic unemployability across a criminalized class of African,American males, the hypertrophied economic and social decline of those ,receiving communities' to which thousands of ex-convicts return, and the remorseless rise of recidivism rates. Notwithstanding the significant social costs, the churning of the prison population through the lower reaches of the labor market is associated with the further degradation of contingent and informal-economy jobs, the hardening of patterns of radical segregation, and the long-term erosion of employment prospects within the growing ex-offender population, for whom social stigma, institutional marginalization and economic disenfranchisement assume the status of an extended form of incarceration. Résumé La politique publique d'incarcération massive, aux implications largement préjudiciables aux communautés de couleur, affecte également le marché du travail des villes. Une étude de cas sur Chicago indique que le système pénitentiaire a fini par devenir une institution importante du marché du travail (urbain) dont les réglementations se traduisent à la fois par la production sociale d'une inemployabilité systémique pour une classe criminalisée de males afro-américains, par le déclin économique et social hypertrophié des ,communautés d'accueil' vers lesquelles retournent des milliers d'ex-prisonniers, et par l'accroissement impitoyable des taux de récidive. Malgré de forts coûts sociaux, le brassage de la population carcérale dans les niveaux inférieurs du marché du travail se combine à la dégradation accrue des postes occasionnels et offerts par l'économie parallèle, mais aussi au durcissement des types de ségrégation radicale et à une érosion durable des perspectives d'emploi au sein de la population grandissante des ex-délinquants pour lesquels stigmatisation sociale, marginalisation institutionnelle et non-reconnaissance économique revêtent une forme d'incarcération prolongée. [source]