FINANCIAL REPORTING CONSEQUENCES OF CAPITAL XENOPHOBIA

The purpose of this editorial is to describe financial protectionism as a potentially important determinant of financial reporting outcomes. Fear of foreign capital, or capital xenophobia, spurs financial protectionism. Examining the effects of financial protectionism on financial reporting outcomes potentially permits an expansion of positive accounting theory and, in particular, the political cost hypothesis. I first describe extant literature examining the political cost hypothesis. I then describe national-security related drivers of capital xenophobia. Next, I examine settings in which we can observe variation in financial protectionism. I conclude by positing varied paths by which financial protectionism can affect financial reporting outcomes

Living through the crisis: Some reflections on the current crisis in which South African Christians are living, in the light of the life and thought of Dietrich Bonheoffer

Are we in South Africa really living in a crisis? There are many in our land, our Prime Minister amongst them, who think not. After all, they say, we live today in inflationary times — not only money, but also word inflation. Everything is a crisis. Yesterday’s crisis, to adapt an adage, wraps today’s fish and chips. And, when we point to Soweto, they remind us that many people have very short memories. Yes — the Soweto riots rocked the country. But 16 years ago we experienced Sharpeville. The country was placed in a state of emergency ... hundreds, if not thousands of whites left our fair shores, convinced the end was indeed nigh ... foreign funds disappeared overnight ... the world raised loud and angry voices ... exiled leaders made appointments with the press “I’ll see you in Pretoria” they said “in a couple of years’ time”

The value in seeing taxi associations: a lens for a new narrative about the taxi industry in transport planning

Planning Honours Report 2016, Wits UniversityThis research report develops a case study of the local and long distance Tembisa-Pretoria Taxi Association (TEPTA), in the context of the dearth of specific transport planning research on taxi associations and the shortfalls of planning knowledge on the taxi industry in general. Data collected from qualitative unstructured interviews with key members of the association build up a picture of nature and operation of this taxi association and its four facets: as a small business collective, as the local level of organisation of the taxi industry, as a collection of routes and as a community custodian. These observations are then used to question and challenge the existing way we as transport planners see taxis and associations, and its gaps, such as the omission of the highly regulated and recorded nature of the taxi industry. It explores the implications these challenges have for the transport planning profession in South Africa.JJ201

Does the Takeover Market Deter Opportunistic Non-GAAP Reporting?

We exploit the Foreign Investment and National Security Act (FINSA) to examine the effect of an important managerial disciplining mechanism, the takeover market, on the quality of non-GAAP reporting. FINSA significantly reduced the likelihood of takeover for a large fraction of the CRSP-Compustat universe. We draw inferences using a difference-in-differences research design by contrasting non-GAAP disclosures by FINSAaffected firms with those of unaffected firms, before and after FINSA. We find that FINSA-affected firms more often exclude recurring expenses, more often exclude expenses incremental to those excluded by analysts, and more often use non-GAAP earnings to convert a GAAP-based miss of an earnings forecast to a beat, after FINSA. This effect accentuates predictably with the extent to which FINSA-affected firms are susceptible to the takeover market in the pre-FINSA period, and with the extent to which non-GAAP earnings determine manager compensation. We conclude by documenting a decline in non-GAAP earnings persistence and the value-relevance of non-GAAP earnings after FINSA. Our evidence demonstrates the role of the takeover market in curbing opportunistic non-GAAP reporting

Investor Relations and Firm Investment Efficiency

ABSTRACT: We examine how the collection and dissemination of market intelligence by investor relations personnel (IRP) affects investment efficiency. We provide evidence that an increased flow of communication from investors to the board of directors, through IRP, is associated with more efficient investment decisions. Proprietary IR survey data illustrate IRP activities. We show that efficient investment decisions are positively associated with (1) the fraction of IRP time spent with existing and new institutional investors, (2) the number of one-on-one meetings between investors and IRP, and (3) IRP-board communication. Predictable associations between the type of IRP-board communication and investment efficiency corroborate our main result. In supplemental tests, we also find that a positive association between efficient investment and (1) IRP compensation and (2) IRP resources. Collectively, our evidence suggests that IRP play an important role as a conduit of market intelligence between investors and directors

The roles of internet of things in enabling servitized business model : a systematic literature review

Internet of things has increasingly gained attention regarding its potential in enabling servitized business model. However, the academic research that explains this concept is still underexplored. Thus, this paper aims to provide a consolidation and comprehensive analysis of the relevant literature, through conducting a systematic review. From analysing 53 articles, four types of IoT-enabled servitized business model: add-on, sharing, usage-based and solution-oriented are identified. The framework was established to present the relationships of the roles of IoT, firm’s benefit and inhibiting factors in enabling each type of business model. This framework provides a useful and inclusive overview of the topic

Clarifying the Role of Reshoring in Global Manufacturing Strategy

Reshoring is a hot topic within operations management. However, there is a lack of understanding surrounding the ‘fit’ between strategies and reshoring decision. This presentation clarifies the state of UK reshoring, including indirect reshoring is more dominant than direct reshoring. Reshoring can improve company performance when driven by differentiation strategy

Towards a framework on the factors conditioning the role of logistics service providers in the provision of inventory financing

This paper explores the conditions in which Logistics Service Providers (LSPs) can compete or collaborate with banks in offering Inventory Financing as a Supply Chain Finance (SCF) service. A multiple case study research methodology was adopted. The case study involved six LSPs across Europe. Data was collected through semi-structured interviews. The results highlighted that an attractive credit demand for LSPs consists in suppliers with high amounts of inventory or borrowing needs that go beyond their borrowing capacity from the perspective of a bank. LSPs can respond to this demand when they have three specific capabilities: risk assessment, risk monitoring, and organizational capabilities. The offer of Inventory financing can be controlled by the LSP or by the bank. When the LSPs control the offer, they offer different conditions compared to the banks in terms of credit rationing, transaction costs, payment flexibility, tax rate advantage, and financial risk management. When the bank controls the offer, the LSPs influence the nature of SCF services only in terms of credit rationing and transaction costs. LSPs seem to easily develop risk assessment and risk mitigation capabilities, while the organisational capabilities appear to be the most challenging to build, and when absent they create a barrier to the provision of inventory financing. The value of the paper is twofold. Firstly, the paper provides a comprehensive taxonomy of the factors conditioning the role of LSPs in the provision of inventory financing as a SCF service. Secondly, the paper clarifies the link between the factors and the different roles played by LSPs

Building Bridges: Boundary Spanners in Servitized Supply Chains

Purpose: Solutions provision depends on effective and efficient supply chains. Existing discourse within servitization has remained at the organisational or inter-organisational level with a limited emphasis on the role of individuals. However, supply chains are not just relationships between organisations, they are complex, inter-personal relationships that span organisational boundaries. The limited focus on boundary spanners and their interactions means that managerial roles critical for the provision of solutions remain unidentified. The purpose of this paper is to identify the functions, roles and practices of boundary spanners that connect organisations and enable the effective provision of solutions. Design/methodology/approach: A case study comprising 61 interviews in 11 firms was conducted in the UK network of a commercial vehicles manufacturer, to investigate boundary spanning for product and solutions provision. Findings: The functions of boundary spanners move from communicating product and price features in product provision towards strategic communication, dissonance reduction, professional education, consultation and leveraging offerings in solutions provision. The study also identifies the boundary spanning roles and practices that form these functions for solutions provision. Originality/value: This is the first study in servitization that identifies and describes the boundary spanning functions, roles and practices. By adopting the lens of boundary spanning, the research addresses the lack of empirical managerial-level enquiry within servitization research. It extends the theoretical discussion on the differences between supply chain management in servitized vs product contexts