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The paper describes a new model of a job-scheduling problem generalized for nonmonotonic reward functions. The importance of informational asymmetry is shown for the conflict under consideration, leading to a connection with “conspiracy theory.” Structurally consistent equilibria are demonstrated to be acceptable as a solution concept.

Abstract The aim of this article was to analyze the relationship between the informational content of the key audit matters (KAMs) reported in the Independent Audit Report (IAR) and financial analysts’ forecasts for the companies listed on the B3 S.A. - Brasil, Bolsa, Balcão (B3). The research that has investigated the relevance of KAMs has not analyzed the incremental information about the audited firm, from the independent auditor’s viewpoint, that can affect financial analysts’ forecasts. The findings of this research reveal that the KAMs reported present relevant informational content about the audited firm for financial analysts, thus improving the quality of their forecasts. In addition, it was observed in the quantile analysis that the KAMs contribute to the fine tuning of analysts’ forecasts. The debate on the auditor-analyst relationship is also widened, specifically regarding the utility of KAMs for financial analysts, in terms of them considering using this information in their projections for the analyzed companies, thus reinforcing the search for their improvement by the regulator. The analysis was conducted based on generalized least squares (GLS) and quantile regressions covering 137 non-financial companies, using data from (quarterly and annual) analysts’ forecasts available from Thomson Reuters Eikon® and financial information from Economatica®. In general, the quantity and content of the items reported as KAMs were revealed to be significant in relation to the analysts’ earnings per share forecasts and to their forecasting error, revealing a reduction in asymmetry. Thus, the higher the informational value of the KAMs, the better the quality of that information is, contributing to forming an earnings forecast consensus and minimizing the error in the financial analysts’ estimates. In addition, it was observed that the disclosure of KAMs has no immediate reflection in the earnings forecast in the quarter following their disclosure, with their informational content being diluted over the following financial period, impacting the annual earnings forecast. Resumo O objetivo deste artigo foi analisar a relação entre o conteúdo informacional dos principais assuntos de auditoria (PAA) reportados no Relatório de Auditoria Independente (RAI) e a previsão de analistas financeiros das empresas listadas na B3 S.A. - Brasil, Bolsa, Balcão (B3). As pesquisas que investigaram a relevância dos PAA não analisaram as informações incrementais sobre o auditado, na visão do auditor independente, que possam vir a afetar a previsão dos analistas financeiros. Os achados desta pesquisa evidenciam que os PAA reportados apresentam conteúdo informacional relevante sobre o auditado aos analistas financeiros, melhorando a qualidade das suas previsões. Adicionalmente, observou-se na análise quantílica que os PAA contribuem para um ajuste fino nas previsões dos analistas. Ainda, amplia-se o debate da relação auditor-analista, especificamente quanto à utilidade dos PAA para os analistas financeiros, no tocante à consideração de uso dessas informações nas suas projeções das empresas analisadas, reforçando a busca pela sua melhoria por parte do regulador. A análise foi realizada com base em regressão de mínimos quadrados generalizados [generalized least square (GLS)] e quantílica em 137 companhias não financeiras, utilizando dados de previsões (trimestrais e anuais) de analistas disponíveis na Thomson Reuters Eikon® e informações financeiras na Economatica®. De modo geral, a quantidade e o conteúdo dos itens reportados como PAA se revelaram significantes em relação à previsão do lucro por ação e ao erro das projeções dos analistas, evidenciando redução da assimetria. Assim, quanto maior o valor informativo dos PAA, melhor é a qualidade dessa informação, contribuindo para formar o consenso de previsão de lucro e minimizar o erro das estimativas dos analistas financeiros. Adicionalmente, observou-se que a divulgação dos PAA não tem reflexo imediato sobre a previsão de lucros no trimestre seguinte à sua divulgação, sendo que seu conteúdo informacional é diluído ao longo do exercício seguinte, refletindo na previsão do lucro anual.

Agency problems and informational asymmetries are widespread concerns in the information and communication technology (ICT) sector. Do they affect capital structure decisions? Do they make capital structure adjustments more costly? Do they function as debt control mechanisms? We address these questions using a dynamic adjustment model of capital structure for a panel of 85 ICT firms over the years 1990 to 2013, augmented by measures of agency costs and informational asymmetries, and expand on this literature to include two additional determinants: R&D activity as a direct measure of asymmetric information and asset turnover as an inverse measure of firm agency costs. We find that both agency costs and informational asymmetries play a significant role in managerial capital structure decisions, causing ICT firms to maintain a low level of debt. We also find that ICT firms adjust their capital structure more slowly than the average firms, as reported in the extant literature, and the speed of adjustment increases with firm size, growth opportunities, and distance from the target capital structure and decreases with default risk and agency costs. We estimate the model using several newly developed econometric methods, but the findings do not show any significant difference, a strong indication of the model's reliability. We reinforce the validity of our results by conducting robustness checks by splitting the sample into three subsamples.

O estudo aborda a dicotomia entre eficiência técnica e qualidade na prestação de serviços hospitalares, inserindo a assimetria informacional no processo orçamentário como um elemento interativo dessa relação para explicar o comportamento de ambas medidas de desempenho. Assim, o objetivo é analisar os efeitos que as assimetrias informacionais no processo orçamentário exercem sobre a eficiência técnica e a qualidade dos serviços realizados em hospitais financiados por recursos públicos. A estratégia de pesquisa abordada foi o estudo de casos múltiplos, sendo investigados dois hospitais da região sul do Brasil: um público e um privado sem fins lucrativos. Foram aplicadas três técnicas para a coleta dos dados: observação direta, entrevistas semiestruturadas e análise documental. Quanto à análise dos dados obtidos, foi aplicada a técnica de análise de conteúdo por temática eixo. Os resultados da pesquisa indicam que a assimetria informacional no processo orçamentário, entre o Estado e os hospitais, respectivamente principal e agentes, quando relacionada com a etapa de planejamento orçamentário, resulta em efeitos prejudiciais para a eficiência técnica e benéficos para a qualidade, porém, quando relacionada com a ausência de alinhamento financeiro na etapa de execução orçamentária, resulta em efeitos contrários, favoráveis para a eficiência técnica e nocivos para a qualidade. As conclusões do estudo contribuem com as discussões existentes acerca da dicotomia entre eficiência técnica e qualidade em serviços no contexto hospitalar, analisando esse fenômeno por meio dos reflexos que a assimetria informacional no processo orçamentário exerce sobre ambas medidas de desempenho. The study looks at the dichotomy between Technical Efficiency and Quality in the provision of hospital services, placing Informational Asymmetry within the Budget Process as an interactive part of this relationship in order to explain the behavior of both performance measures. The goal is therefore to analyze the effects that information asymmetries in the budget process exert on the Technical Efficiency and Quality of services performed in hospitals funded by public resources. The research strategy employed was a multiple case study, investigating two hospitals in Brazil’s South Region: one public and one nonprofit private. Three data collection techniques were used: direct observation, semi-structured interviews, and documentary analysis. As to analyzing the obtained data, content analysis using thematic topics was the adopted technique. Results indicate that Information Asymmetry in the Budget Process between the state and the hospitals, respectively Principal and Agents, when related to the budget planning stage, results in harmful effects for Technical Efficiency and beneficial ones for Quality; however, when related to a lack of financial alignment in the budget execution stage, that information asymmetry results in opposite effects, i.e., favorable for Technical Efficiency and harmful for Quality. The study’s conclusions contribute to extant discussions on the dichotomy between Technical Efficiency and Quality in services performed in hospital contexts, analyzing this phenomenon through the effects that Information Asymmetry in the Budget Process exerts on both performance measures.

ABSTRACT The aim of this paper was to evaluate the effect of personality traits on the relationship between obedience pressure and the creation of budgetary slack. Concatenating the dark triad personality traits and obedience pressure in a decision-making scenario relating to the creation of budgetary slack enables us to widen the investigation of factors associated with the practicing of budgetary slack. The relevance of this study lies in understanding how personality traits influence decision making under hierarchical obedience pressure in relation to the creation of budgetary slack, enabling us to measure and detect possible biases in managers’ decision making due to these factors, thus being able to predict or mitigate decisions in the organizational environment. It was verified that the practice of creating budgetary slack can be carried out independently of a hierarchical order and that personality traits influence decision making with relation to the execution and planning of budgets. The article makes theoretical contributions to the accounting area, enabling the advancement and deepening of the discussion of social aspects (obedience theory) and behavioral aspects (personality traits) associated with decision making relating to the creation of budgetary slack. The approach is quantitative and experimental (2 x 2 factorial design), using 82 accounting sciences students. The data were analyzed using Mann-Whitney and Kruskal-Wallis tests and binary logistic regression. It was found that, independently of being under obedience pressure, individuals with high dark triad personality traits were more inclined toward the creation of budgetary slack, demonstrating that the intrinsic personality traits of each individual have an effect over decision making. However, regarding obedience pressure, it was verified that there was no significant effect on the creation of budgetary slack. These results offer contributions to organizations, as their managers and teams do not practice slack due to obedience pressure scenarios, but rather according to personality traits. RESUMO O objetivo deste trabalho foi avaliar o efeito dos traços de personalidade na relação entre a pressão de obediência e a criação de folga orçamentária. Concatenar os traços de personalidade dark triad e a pressão de obediência em um cenário de decisão com relação à criação de folga orçamentária permite ampliar a investigação de fatores associados à prática de folga orçamentária. A relevância deste estudo reside em compreender como traços de personalidade influenciam a tomada de decisões sob a pressão de obediência hierárquica ante a criação de folga orçamentária, permitindo mensurar e detectar possíveis vieses na tomada de decisão dos gestores devido a esses fatores, podendo, assim, prever ou amenizar decisões no ambiente organizacional. Verificou-se que a prática de criação da folga orçamentária pode ser realizada independentemente de uma ordem hierárquica e que traços de personalidade influenciam a tomada de decisões com relação à execução e planejamento dos orçamentos. O artigo contribuiu teoricamente para a área contábil, permitindo o avanço e o aprofundamento da discussão de aspectos sociais (teoria da obediência) e comportamentais (traços de personalidade) associados à tomada de decisão ante a criação de folga orçamentária. A abordagem é quantitativa, experimental (desenho fatorial 2 × 2), com 82 estudantes de ciências contábeis. Os dados foram analisados por testes de Mann-Whitney, Kruskal-Wallis e regressão logística binária. Constatou-se que indivíduos com altos traços de personalidade dark triad, independentemente de estarem sob pressão de obediência, foram mais propensos à criação de folga orçamentária, demonstrando que traços de personalidade intrínsecos de cada indivíduo têm efeito sobre a tomada de decisão. Contudo, quanto à pressão de obediência, verificou-se que não houve implicação significativa na criação de folga orçamentária. Esses resultados contribuem para as organizações, uma vez que seus gestores e equipes não praticam a folga devido a cenários de pressão por obediência, mas conforme os traços de personalidade.

This study aims to analyze the influence of size on the relationship between the control structure on the voluntary disclosure policy of the listed companies in B3. To achieve this goal, we created a dependent variable, called \"voluntary disclosure level\", which corresponds to 38 indicators of information collected manually from the companies' statements and websites. Afterwards, we estimated a balanced panel data regression model with a threshold effect for size in order to identify the relationship between the variables. The results indicated that smaller companies, with a more concentrated control structure, tended to present a higher level of voluntary disclosure. However, for larger companies, the greater the concentration of the control structure, the less evidence of this information. These inferences lead to believe that the largest Brazilian corporations, with more concentrated control, may not be interested in disclosing voluntary information because most of their shareholders enjoy private control benefits. O estudo objetiva analisar a influência do tamanho na relação entre estrutura de controle e disclosure voluntário das companhias listas na B3. Para atingir este fim, foi criada uma variável dependente, “nível de disclosure voluntário”, que corresponde a 38 indicadores de informações coletados manualmente dos demonstrativos e sites das empresas. Após, estimou-se um modelo de regressão com dados em painel balanceados através do efeito threshold para tamanho, a fim de identificar a relação entre as variáveis. Os resultados indicaram que as empresas menores, com estrutura de controle mais concentrada, tendem a apresentar maior nível de disclosure voluntário. Contudo, para as maiores empresas, quanto maior a concentração da estrutura de controle, menor a evidenciação dessas informações. Essas inferências levam a crer que as maiores corporações brasileiras com controle mais concentrado podem não estar interessadas em divulgar informações voluntárias, porque a maioria de seus acionistas goza de benefícios privados de controle.

The sheer volume of data generated on the Internet has reached unprecedented numerical heights and has enabled new data-driven methodologies to study art and its markets. Yet, this type of data-driven research has also generated several unexpected methodological constraints for art markets researchers, particularly due to informational asymmetry. This observation is related to how various players on the Internet make data available, as well as summarize, transmit, gather, and access those data globally. It is not our ambition to present another historiography of art markets research, past and present. Rather, and in keeping with the theme of this special issue, we would like to focus on a few key constraints related to data-driven, contemporary art markets research, the Internet, and the structural recurrence of imperfect data. This contribution focuses on four areas of Internet research and its methods that are particularly problematic for researchers today, namely (1) auctions and online auctions; (2) dealers and galleries; (3) art indices; and (4) art fairs.

ABSTRACT This study investigated whether the disclosure in accounting reports of information on risk and its management affects, at the margin, firm valuations in the Brazilian capital market. It questioned the existence of value relevance in the disclosure of information related to risk factors and risk management structures. The importance of the topic arises from the documentation that disclosure on risk factors plays a statistically significant role in valuing firms in a context marked by economic and political uncertainty, as is the case of the Brazilian market. The findings confirmed that information about risk shows informational relevance for firm valuations. Information on risk management in a firm, in turn, was not shown to be significant in terms of affecting company share valuations. The investigation of detailed reports with different risk factors indicated that individualized information shows different degrees of relevance for company valuations. It is inferred that the disclosure of risk factors affects the perception of investors, who also base their estimates of return on the availability and detail of such information. It is also observed that information on risk management structure was not shown to be value relevant; moreover, few firms published information on the establishment of this type of entity in their management structures. The residual income valuation (RIV) model (Ohlson, 1995) was applied using regressions with panel data estimation related to the three years covering 2012 to 2014. The sample, which was randomly delimited, was formed of 100 companies. The data on disclosure of risk and disclosure of risk management were collected from the companies’ Reference Forms, available from the website of the São Paulo Stock, Commodities, and Futures Exchange (BM&FBOVESPA). As an impact on the area of knowledge, broader discussions are expected regarding the utility of disclosure on the topic related to risk factors and the existence of a specific body responsible for risk management in firms, according to investors’ perceptions. It also contributes by providing evidence about the quality of disclosure related to risk (factors and management) and the perception of the capital market regarding the informativeness and relevance of such elements. RESUMO A pesquisa investigou se a evidenciação em relatórios contábeis de informações sobre risco e sobre sua gestão afeta, na margem, a avaliação de firmas no mercado de capitais brasileiro. Questionou-se a existência de value-relevance do disclosure de informações relativas a fatores de risco e a estruturas de gestão de riscos. A importância do tema emerge da documentação de que o disclosure sobre os fatores de risco exerce papel estatisticamente significante na avaliação de firmas em contexto marcado por incerteza econômica e política, caso do mercado brasileiro. Os achados confirmaram que informações sobre o risco mostram relevância informacional para a avaliação das firmas. As informações sobre gestão de risco na firma, por seu turno, não se mostraram significantes para afetar a avaliação das ações das empresas. A investigação sobre o reporte detalhado de distintos fatores de risco apontou que informações individualizadas mostram graus diversos de relevância para avaliação das firmas. Infere-se que a evidenciação de fatores de risco afeta a percepção dos investidores, os quais suportam suas estimativas de retorno também com base na disponibilização e no detalhamento de tais informações. Observou-se, ainda, que a informação sobre estrutura de gestão de riscos não se mostrou value-relevant; ademais, poucas firmas publicaram informações sobre a constituição desse tipo de órgão na estrutura administrativa. Recorreu-se à aplicação do modelo residual income valuation (RIV) (Ohlson, 1995) por meio de regressões com estimação por dados em painel referentes ao triênio 2012-2014. A amostra, delimitada aleatoriamente, foi constituída por 100 empresas. Os dados sobre evidenciação de risco e evidenciação da gestão de risco foram coletados nos Formulários de Referência das empresas, disponíveis no website da Bolsa de Valores, Mercadorias e Futuros de São Paulo (BM&FBOVESPA). Espera-se, como impacto à área de conhecimento, maior amplitude nas discussões sobre a utilidade da divulgação sobre o tema referente a fatores de risco e a existência de órgão específico responsável pela gestão de risco nas firmas, segundo a percepção de investidores. Contribui-se, ainda, trazendo evidências sobre a qualidade de disclosure relativo a risco (fatores e gestão) e a percepção do mercado de capitais quanto à informatividade e à relevância de tais destaques.

The purpose of this paper is to investigate the impacts of financial crises on investments and financing of constrained and unconstrained Brazilian firms, specifically analyzing the impact of the 2008 subprime crisis and the 2015 Brazilian economic crisis. For this purpose, the companies were classified as constrained or non-constrained by the criterion of the existence or non-existence of ratings, using quarterly data between Q1 2007 and Q3 2016, and adopting the panel analysis as the method. The results indicate that only the Brazilian crisis of 2015 had a negative impact on corporate investments, with this impact being greater on constrained firms, with evidence that cash was more relevant to these firms. Regarding the impact of crises on leverage, the 2008 subprime crisis showed a greater negative impact on the leverage of constrained firms, accompanied by an increase in the proportion of short-term debt, mainly to these companies.

PurposeThe purpose of this research is to examine the effects of corporate diversification on earnings management. Design/methodology/approachBased on listed firms regarding non-financial sector of Pakistan, the study runs mean comparison test along with panel least squares regression analysis. FindingsThe results of the study suggested that locally diversified firms and combination of industrial and geographical diversified firms mitigate earnings management. In support of the earnings equalizing hypothesis, managers of diversified firms have less need for accruals management because diversified firms had more free cash flows which naturally reduces earnings variability. This study also found that diversified firms had no informational asymmetry problems which reject the asymmetric information hypothesis. In addition, debt ratios are also associated with large organizations, but it shows that the more debt ratios are negatively associated with earnings management. Mean comparison test is also conducted, but the results are same as the regression results which does not confirm asymmetric information hypothesis. Research limitations/implicationsDifferent business segments are affected by the world financial crisis in 2008. Because of those financial shocks, the diversified firms are affected more. In future studies, results will become more favorable in context of diversified firms. Practical/implicationsThe main function of earnings management is to make up the company for investors point of view to look healthier than it really is. But it may cause to disappointment for investors regarding loss of investment. It shows future projections of the company and has vital importance for investor’s perspective. Social/implicationsThe misallocation of resources caused by earnings management refers to the value loss for society. Because the misallocation of funds will make that particular segment or division more vulnerable which ultimately make shareholders to go for entrenchment or liquidation. At the end, un-employment rises after entrenchment or liquidation and the society suffers. Originality/valueThis research makes an important contribution to the accounting and management literature by providing new and significantly different evidences on the relative roles of corporate diversification and earnings management.