The Business School - Te Kura Kaipakihi

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https://hdl.handle.net/10292/1066
The Business School - Te Kura Kaipakihi conducts disciplinary research that is at the fore front of international knowledge. Their researchers are recognised experts in their fields and produce research of relevance to their academic and non-academic stakeholders. The Business School has research strength in: Accounting, Business Information Systems, Economics, Finance, International Business, Management (including Human Resource Management and Employment Relations), Marketing, Advertising, Retailing and Sales.

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Browsing The Business School - Te Kura Kaipakihi by Subject "1402 Applied Economics"

Now showing 1 - 13 of 13
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    Aerospace Competition, Investor Attention, and Stock Return Comovement
    (Elsevier BV, 2023-11-01) Do, HX; Nguyen, NH; Nguyen, QMP; Truong, C
    Fierce aerospace competition among global superpowers has resulted in strong public attention on satellite launch events in the U.S. Given limited attentional resources, U.S. investors pay more attention to market-level shocks than to firm-specific shocks, making stock returns comove more with the market on satellite launch days than on other days. We find that the effect is significantly stronger for military-related satellite launches, launches before the dissolution of the former Soviet Union, and international satellite launches by other competitors, highlighting a greater concern for national security. A trading strategy that exploits the potential satellite-induced mispricing yields an annualized abnormal risk-adjusted return of up to 17% within the three-day window around launch date. Our results are robust to a battery of robustness analyses that consider the different characteristics of satellite launches, the exclusion of aerospace firms, and stock return comovement with industries.
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    Aligning Disclosure Requirements for Managerial Assessments of Going Concern Risk: Initial Evidence From New Zealand
    (Wiley, 2023-10-20) Grosse, Matthew; Scott, Tom; Zang, Zeting
    This study examines the impact of the Financial Reporting Standard No. 44 New Zealand Additional Disclosures (FRS 44) amendment issued by the New Zealand Accounting Standards Board (NZASB). The FRS 44 amendment aligned disclosure requirements for managerial assessments of going concern risk in financial reports with auditing standards for periods ending on or after 30 September 2020. We first present descriptive evidence on the frequency of going concern opinions (GCO), frequency of going concern issues identified as key audit matters (GCKAM), and frequency and content of managerial assessments of going concern risk (GCMA) before and after the FRS 44 amendment. Second, we show lower audit fees and shorter audit lags for financially distressed companies post-FRS 44 implementation. This suggests that the harmonisation of accounting and auditing disclosure requirements alleviates tension during the going concern decision-making process for affected companies, subsequently leading to reduced audit fees.
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    Control Strategies for Impactful Exits in Impact Private Equity Firms
    (Wiley, 2024-05-02) Islam, SM; Akroyd, C
    Traditional private equity firms aim to maximise their financial returns when exiting an investment. In contrast, a major consideration for impact private equity firms is to ensure an impactful exit from their investments – increasing the chance of impact continuity in portfolio companies post exit. However, impactful exits may not be realised due to ownership-, management-, and operations-related threats. Drawing on data from 45 impact private equity firms, we identify the control strategies that impact investors use throughout the investment lifecycle to manage impactful exits from investment. We also highlight how control-related issues differ between traditional and impact private equity firms.
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    Displaced or Depressed? Working in Automatable Jobs and Mental Health
    (Wiley, 2024-01-04) Blasco, S; Rochut, J; Rouland, B
    Automation may destroy jobs and change the labor demand structure, thereby potentially impacting workers' mental health. Implementing propensity score matching on French individual survey data, we find that working in an automatable job is associated with a 3 pp increase in the probability of suffering from mental disorders. Fear of automation through fear of job loss, expectation of a required change in skills, and fear of unwanted job mobility seem to be relevant channels to explain the findings.
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    Financial Market Spillovers and Investor Attention to the Russia-Ukraine War
    (Elsevier BV, 2024-11-01) Li, Z; Hu, B; Zhang, Y; Yang, W
    This study examines the impact of the Russia-Ukraine war on global commodity and financial markets by analysing the volatility and return spillovers of 26 assets across six different markets. We find significant increases in volatility spillovers after the invasion although increases in return spillovers were milder. Stock and currency markets were the leading spillover transmitters and receivers. Investor attention to the conflict played a large role in driving market spillovers, particularly in extreme quantiles. Meanwhile, uncertain market conditions seem to provide significant feedback to investor attention, resulting in amplified market risk. Our findings highlight the substantial effect of the Russia-Ukraine war on global market spillovers and the role of investor attention in shaping these dynamics.
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    How Impact Investing Firms Use Reference Frameworks to Manage Their Impact Performance: An Industry-Level Study
    (Wiley, 2023-06-21) Islam, Syrus M; Habib, Ahsan
    Using meaning-oriented content analysis, we show how impact investing firms use various reference frameworks (e.g., International Finance Corporation (IFC) Performance Standards, Impact Management Project framework, UN Sustainable Development Goals) to manage their impact performance throughout the investment lifecycle. Our study provides an industry-level picture of the various roles that different reference frameworks play to help impact investors attain their impact goals. We also discuss the potential industry effects on management accounting practice, that is, how reference frameworks used in performance management in the impact investing industry differ from those used in some other industries.
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    Impact Investment Deal Flow and Sustainable Development Goals: “Mind the gap?”
    (Wiley, 2023-02-05) Islam, SM; Rahman, A
    We examine the linkage between the available impact investment deals and Sustainable Development Goals (SDGs) to ascertain to what extent those deals are likely to achieve the aims of the SDGs, that of a sustainable and prosperous world. Drawing on 292 available deals, we find that most deals are directly or indirectly linked to only four of the 17 SDGs and are concentrated in two regions of the world. Accordingly, we conclude that impact investing has a significant imbalance in the SDG–deal flow–region nexus. Without addressing such an imbalance, impact investing will have only a limited impact on overall SDG attainment. Therefore, we also share some thoughts on addressing the imbalance.
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    Literacy and Numeracy Skills and Life-Course Outcomes: Evidence from PIAAC and Linked Administrative Data
    (Australian Journal of Labour Economics (AJLE), 2024-10-15) Meehan, Lisa; Pacheco, Gail; Schober, Thomas
    This paper examines the life-course trajectories of NZ adults across different literacy and numeracy skill levels. This is done by using skill information for the working-age adult population (aged 16-65 years) collected in the Survey of Adult Skills (PIAAC). This sample is then linked with administrative data to track their life-course outcomes from 2008 to 2020. The outcomes of the one-fifth of NZ working-age adults who were assessed at below Level 2 in either literacy or numeracy (or both) are compared with those at or above this baseline. It finds that adults with low measured skills have less favourable outcomes in a number of areas. They have lower rates of educational attainment, lower employment rates and average earnings, higher rates of hospitalisation, and higher rates of criminal offending and convictions. In addition, outcomes for Māori and Pacific peoples in both the low-skills and above-baseline groups are generally less favourable than those of their NZ European counterparts. For example, even among those with above-baseline skills, Māori and Pacific peoples have lower average earnings than NZ Europeans. These results provide a quantifiable evidence base regarding the role of literacy and numeracy skills with respect to a range of wellbeing outcomes over the course of an individual’s life.
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    Partisanship, Elections and Lockdowns: Evidence from US States
    (Wiley, 2024-05-25) Pacheco, G; Wesselbaum, D
    In this article, we use state-level variation in Senate elections and partisanship to understand the variation in lockdown characteristics in the US. We argue that the state-level decision makers and their parties weigh off the perceived political costs in an election year of a depressed economy against risks to public health. Democrats and Republicans, and their voters, vary in the weights they attach to these costs and benefits. We are thus exploring the marginal effect of the party–election interaction after accounting for other likely drivers of variations in lockdown characteristics. We find that Republican states with an election have less strict and shorter lockdowns compared to Democratic states with an election. Our results have implications for the communication of pandemic policies, including vaccination strategies.
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    Reframing Approaches to Workplace Violence Towards Pacific Homecare Workers in New Zealand and Australia
    (SAGE Publications, 2024-08-25) Ofe-Grant, Betty; Ravenswood, Katherine; Macdonald, Fiona
    In Australia and New Zealand there is an emerging focus on the problems of violence and harassment for the large, feminised workforces of care and support workers in homecare settings. However, much of this research does not consider the power dynamics of workplaces and socio-political influences that impact how workers are supported when facing WPV. This is of particular concern in relation to the growing proportion of Pacific workers in Australia and New Zealand, many of whom have temporary migrant status. Using a narrative review method, we find that extant research largely fails to address the experiences of Pacific homecare workers, and that this, and the lack of attention to Pacific workers in practice, is informed by racist norms and attitudes based on historic and current labour market and migration policies. Drawing on socio-ecological models of workplace violence (WPV), we propose a research and policy analytical framework of WPV that centres Pacific voices and culture to better mitigate and prevent Pacific homecare workers’ experiences of WPV.
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    State Dependence in Immunization and the Role of Discouragement
    (Elsevier, 2023-11-07) Plum, Alexander; Pacheco, Gail; Dasgupta, Kabir
    We investigate whether having a child immunized at a prior schedule genuinely increases the likelihood of vaccinating the child at the subsequent schedule. We use longitudinal data from the Growing Up in New Zealand study and apply a dynamic random-effects model that also controls for the initial immunization status. Prior to any covariate-adjusted estimations, our data shows that almost 96% of the children immunized at the previous schedule are also immunized at the subsequent schedule. In comparison, only 29% of children who were not immunized at the prior schedule receive immunization at the next milestone, thereby indicating an unadjusted state dependence in immunization of 67 percentage points (p.p.). Upon controlling for relevant covariates and unobserved heterogeneities, the genuine state dependence in immunization is, on average, estimated to be 20 p.p. Importantly, the magnitude of the state dependence is greater for Māori (by 5 p.p.) and also greater for mothers that report being discouraged from having their child immunized during the antenatal period (by 10 p.p.).
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    Toxic Chemical Releases and Idiosyncratic Return Volatility: A Prospect Theory Perspective
    (Wiley, 2022-04-24) Bahadar, S; Nadeem, M; Zaman, R
    We investigated whether and how firms’ toxic chemical releases (TCRs) affect idiosyncratic return volatility (IRV) using a prospect theory lens. Utilising a large sample of US public listed firms over the period 2001–2018, we find a significant and positive association between TCRs and IRV, suggesting that firms releasing more toxic chemicals have higher IRV. Additional analyses show that a positive association between TCR and IRV is more evident among firms with (i) high revenue, (ii) lower financial constraints and (iii) fewer environmental violations. A further test also suggests that a positive association between TCRs and IRV is contingent on political leadership ideology and market states. Our results remain consistent with weighted TCRs, IRV based on the Fama–French three-factor model, fixed-effect two-stage least square estimator (FE-2SLS), and other robustness checks. These findings shed light on the role of equity markets as a driver for capital-intensive pollution abatement activities and enhanced compliance with environmental laws, standards and best practices.
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    US Cross-Listing and Domestic High-Frequency Trading: Evidence From Canadian Stocks
    (Elsevier BV, 2023-03-24) Dodd, Olga; Frijns, Bart; Indriawan, Ivan; Pascual, Roberto
    We find that US cross-listing of Canadian stocks enhances domestic high-frequency trading (HFT) activity in the form of both opportunistic trading and market-making. First, US cross-listing boosts HFT low-latency cross-border arbitrage. This highly correlated HFT arbitrage activity across markets enhances stock price efficiency by correcting mispricing. Second, US cross-listing leads to an increase in news trading activity by high-frequency traders around US public macro-news releases. Finally, cross-listing increases a stock’s reliance on high-frequency market makers to provide liquidity. Yet, we find no evidence of higher fragility in liquidity supply after cross-listing.
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