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What are useful ways to characterize varying employment systems? This article returns to an older idea, Internal Labor Markets (ILMs). The traditional assumption characterized ILMs as the core of the labor market but current thinking argues that ILMs have frayed. Little direct measurement has been carried out, however, and both viewpoints have relied on proxies or case studies. The author utilizes a new survey of employed US workers to provide an estimate of the incidence of ILMs and finds that between 25 and 40% percent of adult workers are in ILMs. The article then elaborates theory regarding the practices of ILMs, a theory grounded in the idea of complementary bundles of human resource practices, and asks what are the correlates of being in an ILM. Findings show that although wages in ILMs are no higher than non-ILM wages, ILMs are positively associated with other aspects of job quality and attitudes across the board. [ABSTRACT FROM AUTHOR]

The purpose of this study was to investigate the predictors of employment and earnings for college graduates with visual impairments, with an emphasis on the impact of college degree major on these outcomes. We utilized American Community Survey data to conduct a multinomial logistic regression analysis predicting employment (full-time/full-year versus less than full-time/full-year and not working) and a multiple regression analysis predicting annual earnings. Our predictor variables included demographic factors previously related to employment outcomes plus 25 college degree majors. Degree majors explained little variance in employment and earnings, although several specific majors were associated with these outcomes. Five majors predicted both: Computer Science, Electrical Engineering, Nursing, Accounting, and Finance. Age, gender, race, receipt of Social Security benefits, additional disabilities, having an advanced degree, and class of worker (earnings model only) were stronger predictors of employment outcomes than degree major. Degree majors that had significant relationships with earnings and employment in our study generally coincide with those for the general population. Vocational rehabilitation counselors should inform their consumers with visual impairments who are pursuing a college degree of differences in earnings and employment rates based on degree major. [ABSTRACT FROM AUTHOR]

Most education systems have set a minimum age until which students must stay at school. In the case of Spain, students can drop out the same day they reach that age, even without finishing that academic year. In the present research work, we intend to analyse the influence of early dropout on later life outcomes for the Spanish population, i.e. literacy and numerical skills and earnings. In order to do this, we employ PIAAC 2012 data and a fuzzy regression discontinuity design, focusing on a transition period between education laws: a first period without minimum dropout age and a second period (law approved in 1970) which obligated students to be at least 14 years-old to dropout. Our results show, for this particular cohort of the Spanish population, that dropping out is substantially negatively associated with literacy and numerical skills in around 1.5 standard deviations, while it did not influence future earnings. [ABSTRACT FROM AUTHOR]

This paper offers a descriptive overview of the evolution of individual earnings and household income inequality in Spain over the last two decades. During this period, there has been a noteworthy increase in the level of education of the working‐age population (aged 25–60) along with a rise in female labour force participation. Substantial changes have also occurred in household size and composition, with reductions in marriage and cohabitation, in particular among lower‐educated groups. These changes have a direct impact on the distribution of individual earnings and household income and, therefore, the evolution of inequality. Fluctuations in inequality, however, primarily moved with the business cycle. After a period of decreasing inequality during the mid‐1990s expansion, the 2008 global financial crisis led to sharp rises in both earnings and income inequality that peaked around 2014. After that, both unemployment and inequality decreased, except for the transitory surge during the COVID‐19 pandemic. By 2022, inequality indicators have almost returned to pre‐2008 levels. [ABSTRACT FROM AUTHOR]

Although financial statements are extremely important to investors in decision-making processes, their reliability can be affected by earnings management (EM) practices, which involve manipulating financial reports in order to achieve managerial benefits. This study explores the relationship between earnings management and firm valuation, based on accounting information's predictive value, specifically investigating how EM influences the value relevance (VR) of earnings on share price. The research focuses on a sample of audited companies listed on the Bucharest Stock Exchange (BSE) between 2019 and 2021, comprising 62 entities. Using regression analysis, we explored the importance of accounting information for investors following Ohlson's research and examined the relationship between EM and VR based on Jones's model. The findings indicate that earnings significantly impact stock prices, highlighting their value relevance in the Romanian stock market. However, the practice of earnings management reduces the value relevance of earnings because it decreases the reliability of the accounting information. The main contribution of this analysis is to provide a fresh perspective on earnings management (EM) within the BVB framework by highlighting its pivotal role in shaping the motivation and behavior of corporate managers. [ABSTRACT FROM AUTHOR]

Using data from the National Longitudinal Survey of Youth 1997, we assess the relationship between track placement in high school and long-term postsecondary and occupational outcomes among young adults in the United States. We find that young adults in the college-prep track are most likely to earn a college degree. Young adults in the vocational are more likely than those in the college-prep track to have a vocational premium for short-term earning levels. Otherwise, those in the vocational premium in earnings are eventually eclipsed by the academic premium. We also find that some personal characteristics, such as race, gender, and social class, intersect with the relationship between track placement and our outcome variables. Our findings have theoretical and practical implications for academic tracking and long-term educational and labor market outcomes. [ABSTRACT FROM AUTHOR]

While gender pay disparity is a frequently researched area, few have focused on how parenthood and family size impact the wages of mothers and fathers together. The purpose of this study is therefore to take a broader view of this pivotal topic, one which has continued relevance as governments and organisations seek to advance gender equality. The findings show clear gendered divergence in the impact of parenthood on wages, with 'motherhood wage penalties' and 'fatherhood wage premiums' in both annual and hourly wage. The widest gap in earnings between women and men occurs at three or more children even when human capital and labour market selectivity factors are controlled for. For women, the largest penalty occurs at one and three or more children while for men, having two children represents the peak point in terms of wage gains to parenthood. Accounting for working time through hourly wage estimations narrows but does not eliminate parental wage gaps, pointing to other factors such as occupational segregation. [ABSTRACT FROM AUTHOR]

Previous research provides conflicting results regarding how R&D expenditures impact market value. Given that financial analysts are the primary intermediaries between companies and investors, our study focused on the impact of R&D-related uncertainty, growth, and information asymmetry associated on analysts' earnings forecasts. Based on 19,834 firm-year observations in the European market between 2005 and 2020, our results show that R&D activities lead to higher absolute forecast error and negative forecast error, indicating higher forecast inaccuracy with an optimistic bias. Additionally, these investments contribute to higher forecast dispersion, indicating disagreement among financial analysts. The comparison between 17 industries revealed that these effects are more pronounced in R&D-intensive industries than in non-R&D industries, uncovering the varied relationship between R&D investments and analyst forecasts across sectors. [ABSTRACT FROM AUTHOR]

Purpose – This paper aims to analyse the short- and long-term effects of entering the Spanish labour market under tough economic conditions on young immigrant–native earnings and employment outcomes. Design/methodology/approach – The authors use cohorts, where the entry cohort into the labour market is the unit of observation. As a database, the authors use the continuous sample of working histories covering the period 2007–2021. Then, the authors estimate the model using weighted least squares. Findings – The results show that the great recession and COVID-19 led to a blockage at the entrance of the labour market, reducing the number of workers. Additionally, the authors observe an adverse impact in terms of employment and earnings on those entering the labour market. Besides, this effect varies in intensity and persistence for natives and immigrants, as well as by country of birth, age of entry, gender and educational level. Originality/value – A contribution to the literature is the analysis of the earnings and employment trajectories of young people entering the Spanish labour market for the first time during an adverse shock, such as the 2008 economic crisis or the COVID-19 crisis, and the possible differences that exist between native and immigrant workers. So, the authors analyse the labour market trajectories of workers covering the most recent years. Likewise, the authors carry out an extensive heterogeneity analysis in which they distinguish workers by educational level, gender, age of entry into the labour market and immigrants by their country of birth. This represents an additional contribution. The use of a cohort approach also contributes to the existing literature.

Research Question: What is the impact of domestic and international uncertainty shocks on the relationship between book value, earnings, and stock price? Motivation: We refer to the prior research on the value relevance of accounting information (Dunham & Grandstaff, 2021) which offers valuable insights into how the financial market interprets accounting information. However, there has been little emphasis on changes in value relevance over time and the influence of economic conditions on the value relevance of accounting information (El Ghoul et al., 2021; Barth, 2023). Idea: The study used the Ohlson's (1995) price model to investigate the effect of economic policy uncertainty on the value relevance of financial statement information in Tunisian firms. The dependent variable was Stock price (MV). The independent variables were Book Value of equity (BVS), Earning (EPS), and Economic Policy Uncertainty (EPU). Data: The study was conducted on a sample of 36 firms listed on the Tunis Stock Exchange (TSE) over 14 years (2008-2021). Tools: The models were estimated using the Generalized Least Squares (GLS) method. Findings: This research demonstrates that even in a highly uncertain economic environment, book value and earnings remain suitable for evaluating stock prices. Despite accounting information possibly losing its relevance, earnings seem to hold more significance than book value in stock market pricing. Contribution: This study contributes to the existing research on the relevance of accounting information by examining the impact of economic uncertainty in a developing country. We assess uncertain economy by using Baker et al. (2016) measure, which is a global measure. We have been able to find a significant decline in the value relevance of book value in an uncertain economy and to confirm the practical perspective of agency theory.

Previous research provides conflicting results regarding how R&D expenditures impact market value. Given that financial analysts are the primary intermediaries between companies and investors, our study focused on the impact of R&D-related uncertainty, growth, and information asymmetry associated on analysts’ earnings forecasts. Based on 19,834 firm-year observations in the European market between 2005 and 2020, our results show that R&D activities lead to higher absolute forecast error and negative forecast error, indicating higher forecast inaccuracy with an optimistic bias. Additionally, these investments contribute to higher forecast dispersion, indicating disagreement among financial analysts. The comparison between 17 industries revealed that these effects are more pronounced in R&D-intensive industries than in non-R&D industries, uncovering the varied relationship between R&D investments and analyst forecasts across sectors.

While prior research has demonstrated the poor and unpredictable working conditions and ambiguous working arrangements characteristic of platform‐based food delivery, we lack research on the question of how well these workers are informed about essential aspects of their work, including protection of their rights, working time and schedules, and earnings. Comprehensive and transparent information on working conditions at an early stage is indispensable if workers are to be able to make informed decisions on taking up work and, where relevant, investing in equipment and exercising rights linked to a specific job. Drawing on the multi‐dimensional job quality literature, this article focuses on digital labour platforms in the food delivery sector across four countries: Denmark, Germany, the Netherlands and Spain. We exploit firm‐level variations, including with regard to the types of work arrangements used and the application—or not—of collective agreements. We draw on information provided to riders during the application process prior to the start of employment, including via websites and FAQs, as well as scrutiny of contracts, service agreements and collective bargaining agreements, where relevant. This information is complemented with interviews with trade union representatives. Our findings point to the relationship between a firm's choice of employment status and form of contract, on one hand, and the predictability and transparency of information provided to workers, on the other. Differences and similarities in such information seem to be more strongly bound to firm‐level decisions than to the welfare and industrial relations regimes in which the platform companies operate. [ABSTRACT FROM AUTHOR]

Do women and workers with a migration background earn relatively less in the core creative arts or in commercial creative sectors such as advertising? In this paper, we seek to (1) uncover to what extent workers' socio-demographic characteristics and the sub-sector of the cultural and creative industries (CCIs) in which they are active affect how much they earn, and (2) unravel to what extent the context of sub-sectors affects inequality in earnings between different socio-demographic groups. Using Statistics Netherlands register data on all workers with earnings from the CCIs, we show that earnings are lowest in the sub-sectors in Throsby's (2008) inner circles of the CCIs. Both having a migration background and being a woman affect earnings in the CCIs. Especially gender inequality in earnings is extensive and omnipresent, being least pronounced in sub-sectors such as literature, music and visual arts, and most severe in e.g. film and photography. [ABSTRACT FROM AUTHOR]

This meta‐analysis examines the relationship between the Big Five personality traits and earnings. The results reveal that openness to experience, conscientiousness, and extraversion exhibit positive correlations with earnings, whereas agreeableness and neuroticism are inversely correlated with earnings. Overall, personality has a modest‐to‐small effect on earnings, with variations in results depending on econometric models used. Accounting for publication bias, socioeconomic background, and cognitive ability in models affects effect sizes. The findings also underscore the potential for omitted variable bias in the reported personality effects on earnings when relevant factors are omitted from the earnings equation. [ABSTRACT FROM AUTHOR]

This study develops a difference‐in‐differences analysis to assess whether trading onset of credit default swaps (CDS) on a firm's debt improves price informativeness in the stock market. Price informativeness is measured by the future earnings response coefficient, which captures the amount of information about future earnings conveyed in stock returns. Our sample comprises U.S. firms (firms experiencing CDS trading on their debt and a group of control firms) and covers the period 1997–2015. The results indicate that CDS hinder stock price informativeness, and thus the ability of prices to track long‐term fundamentals, especially before the arrival of negative information about the obligor. The identified impact is stronger when CDS are first traded, becoming less pervasive with the passage of time. Finally, the results indicate that effects were residual during the early stages of CDS market development and peaked during the period 2004–2008. The impact of CDS introduction weakened after new regulation and ISDA protocols entry into force in 2009. This empirical analysis contributes to the literature by improving knowledge on the consequences of CDS trading on economic and financial outcomes. It points out a negative effect on price informativeness in the stock market and indicates that it was smoothed by regulatory measures designed to improve market infrastructure and transparency. [ABSTRACT FROM AUTHOR]

Several recent European studies conducted over the past 50 years have documented a positive connection between a person’s height and their salary. However, there are very few studies for earlier periods and for southern Europe. In this paper, we analyze the relationship between the height of conscripts born between 1888 and 1907 and their daily wages in 1924. Data for the Spanish city of Zaragoza was used. The results showed that for every additional 10 cm of height, an individual earned approximately 3% more. Furthermore, the shortest 25% of individuals suffered a considerable penalty in their income (about 15%). To understand the causes of this discrimination, we then analyzed the data by socioeconomic group. We found that people in low socioeco nomic groups essentially suffered wage discrimination. This finding could be linked to the fact that a tall stature conveys an image of strength and productivity. It should be noted that these results were found mainly for the urban areas, with their relatively large labor supply and weak blood ties rather than rural areas or among immigrants. In other words, the height penalty affected the weakest groups of society (low socioeconomic level and immigrants). [ABSTRACT FROM AUTHOR]

Employment and earnings instability is common, particularly among low-income families, and can interfere with child-care arrangements. Child-care subsidies are designed to support parents' labor force participation and earnings, but the subsidy program's reach is limited, and enrollment may be hindered by changes in parents' employment or income; in turn, changes in child-care subsidy participation may lead to changes in parents' employment status, hours, or earnings. This study uses longitudinal administrative data from 2016 to 2019 on quarterly employment and earnings and child-care subsidy program participation from Virginia to examine associations between household subsidy receipt and parents' earnings and employment outcomes. Parental employment and earnings increased in the quarters following initial subsidy receipt, which then became stable. Among working parents, we find increased job and earnings stability in the quarters of subsidy receipt but increased multiple jobholding. Findings highlight the importance of child-care subsidies for the employment outcomes of low-income families. [ABSTRACT FROM AUTHOR]

• We investigate the dynamics of low pay in Italy from 1990 to 2018 using a large sample of administrative data on private employees. • We find that the incidence of low pay is high and steeply increased in the last decades when the focus is on annual earnings and weekly wages. • A flat trend emerges when low pay is assessed according to FTE weekly wages, even if the share of low-paid workers remains high. • A major role in the low pay dynamics has been played by the reduction in the number of hours worked by low-paid individuals because of the increasing spread of part-time contracts. We investigate the dynamics of incidence, intensity and persistence of low pay in Italy from 1990 to 2018 by exploiting a large administrative sample of employees in the private sector. We refer to relative and absolute low pay thresholds and assess workers' conditions according to annual earnings, weekly wages and full-time-equivalent (FTE) weekly wages, to depurate low pay dynamics from the influence of changes in worked weeks and hours. Regardless of the chosen threshold, we find that the incidence of low pay is high and steeply increased in the last decades when the focus is on annual earnings and weekly wages. A flat trend emerges instead when low pay is assessed according to FTE weekly wages, signalling that a major role in the low pay dynamics is played by the reduction in the number of hours worked by low-paid individuals because of the increasing spread of part-time contracts. Nevertheless, the share of low-paid workers is rather high even when the focus is on FTE weekly wages. Furthermore, low pay is a persistent status for a large and rising share of workers. These findings reveal a clear worsening of workers' conditions at the bottom of the earnings distribution in Italy. [ABSTRACT FROM AUTHOR]

Research on the influence of family background on college graduates' earnings has not considered the importance of the match between parents' and children's field of study. Using a novel design based on within‐family comparisons, I examine long‐term earnings returns to reproducing parents' field of study in Denmark. I find that individuals whose field of study matches that of a parent have earnings that are 2 percent higher than those of their siblings with college degrees in different fields, on average. Earnings returns to field inheritance are highest in the fields of law (9 percent), medicine (6 percent), and engineering (4 percent) and are driven mainly by income from self‐employment. I find no direct evidence of nepotism as the earnings advantage does not arise from inheritance of parents' firms or employment in parents' occupational network. My findings indicate that, although a college degree generally equalizes family background differences in economic outcomes, there are additional payoffs to field inheritance, particularly in traditional fields characterized by a high degree of social closure and self‐employment. [ABSTRACT FROM AUTHOR]

A bank plays an important role in maintaining the economical condition of the country. Sound financial position of a bank is the guarantee not only to its depositors but is equally significant for shareholders, employees and whole economy as well. This study analyzes the financial performance of YES Bank & SBI, Lakshmi Vilas Bank (LVB) & DBS Bank India Ltd (DBIL) for the period of 2009 - 2020 by using CAMEL Model. The findings of this research reveal that net NPA (Non Performing Assets) and more advances are the major reasons for YES bank crisis. YES bank performs well up to 2017 but after that it begins to fall in terms of interest income, net profits etc., in 2020 its profit shows negative value. On the other hand, bad loans and capital inadequacy are the major reasons for failure of Lakshmi Vilas Bank (LVB) as its NPA and Advances increased excessively during the period of study. [ABSTRACT FROM AUTHOR]

Using nationally representative data from the Labor Force Survey for 2021, this study investigates the factors associated with changes in the employment and income of Vietnamese workers aged ≥50 years due to COVID‐19. Employing multinomial logistic regression analysis, the first model investigates changes in employment (i.e., job loss, temporary absence, increased work hours, change in work mode, and no employment change). The second model illustrates changes in income (i.e., lower/higher income and no change). Independent variables include demographic characteristics and employment features (e.g., industry and information technology (IT) use). The findings emphasize that a stable job, such as one that contributes to social insurance or employment with state or private establishments, can reduce the risk of job loss and income reduction. Moreover, older workers with high levels of education and work skills, such as IT use, are associated with an increased probability of remote work, which reduces the risk of job loss during the pandemic. The results imply that formalizing employment and increasing the human capital of older workers are effective approaches for achieving employment and income security, especially in the case of unforeseen circumstances. [ABSTRACT FROM AUTHOR]

The economic circumstances in which children grow up have garnered much scholarly attention due to their close associations with well-being over the life course. While it has been well-documented that children are increasingly growing up in households where their primary financial support comes from their mother, regardless of whether she is partnered or single, the consequences for household economic well-being are unclear. We use the 2014 Survey of Income and Program Participation to quantify how a mother's transition into primary earner status affects the economic well-being of her household and if the effects differ based on her relationship status. On average, household income declines and more households are unable to meet their economic needs once the mother becomes the primary earner. However, these declines in income are concentrated among partnered-mother households and mothers who transition from partnered to single during the year. At the same time, although many single mothers see an increase in household income, the majority of these households are still unable to meet their economic needs. These findings suggest that the shift to a welfare system that requires employment coupled with structural changes in the labor market have created financial hardship for most families. [ABSTRACT FROM AUTHOR]

After some initial controversy, an inverted U-shape relationship between the consumption of alcohol and earnings seems to be an established result, at least in North America. It has been dubbed a "drinking premium", at least in the lower portion of the consumption curve. It is still unclear, perhaps even counter-intuitive, why such a drinking premium exists and the literature suggests it is not causal but results rather from selection effects. We suggest here that part of the premium is linked to occupation: some occupations pay better, controlling for the usual human capital determinants, and also attract drinkers or induce workers to drink more. Using a sample of full-time employed or self-employed individuals aged 25-64 and not in poor health from the 2015-16 Canadian Community Health Survey (CCHS), we confirm the existence of a drinking premium and a positive return to the quantity or frequency of drinking up to high levels of consumption. Using information on jobs held by respondents, linked to a data set of job characteristics, we find that controlling for job characteristics reduces the premium or return to drinking by approximately 30% overall, and up to 50% for female workers. [ABSTRACT FROM AUTHOR]

With the rapid evolution of the rural digital economy, analyzing the impact of digital literacy level on farm households' formal borrowing is crucial for easing credit constraints and fostering rural economic growth. Leveraging the data from the 2020 China Family Panel Studies (CFPSs) and applying binary probit models and the Karlson–Holm–Breen (KHB) method, this study delineates the positive correlation between the digital literacy level and increased formal borrowing among farm households. The findings, which were robust against endogeneity and robustness tests, underscore the role of digital literacy level in augmenting farmers' earnings and social networks, with a notably stronger mediation by earnings. The effects are particularly significant for middle-aged and older, less educated males in the central and western regions, in contrast with younger, highly educated females in the east. This research advocates for enhancing rural digital infrastructure and education, alongside financial system reforms, to advance rural financial development and support sustainable rural revitalization. [ABSTRACT FROM AUTHOR]

Using data on 17 countries in Europe and North America, we compare the career trajectories of mothers and fathers and of women and men without children across cohorts, and at different points of their life cycle. There is wide variation across countries in employment and earnings gaps at age 30. At age 50, however, the employment gap between mothers and non‐mothers has closed in most countries. We also observe convergence in employment gaps between mothers and fathers by age 50, but these gaps do not fully close. Motherhood gaps in earnings also close by age 50 between mothers and non‐mothers, particularly among the highly educated. But there is strong persistence in earnings gaps between mothers and fathers even among highly educated parents. The main reasons for the remaining gaps at later stages in the life cycle are part‐time work among women and fatherhood premia as fathers' earnings outperform non‐fathers' over their life cycle. [ABSTRACT FROM AUTHOR]

We investigate the progression of income inequality in Denmark over the years 1987–2021. During this time, we observe a consistent rise in inequality in household disposable income. This rise is influenced by shifts at both the high and low ends of the income spectrum, despite the fact that inequality in gross earnings remained unchanged up until 2008. The growing inequality in household disposable income coincides with various policy reforms aimed at enhancing incentives for employment. These changes include the reduction of the marginal tax rate on earned income and a decrease in the generosity of unemployment benefits and other forms of social assistance. At the same time, Denmark has experienced a noticeable increase in immigration, particularly from non‐Western countries and Eastern Europe. Immigrants, who rely more heavily on social transfers, find themselves increasingly at the lower income levels. Our analysis underscores that while the policy reforms were designed to encourage employment, they have also led to heightened inequality in disposable income. [ABSTRACT FROM AUTHOR]

The authors use data from the Children of the National Longitudinal Survey of Youth (C-NLSY79) to examine gender differences in the associations between child behavioral problems and early adult earnings. They find large and significant earnings penalties for women who exhibited more headstrong behavior and for men who exhibited more dependent behavior as children. By contrast, the authors observe no penalties for men who were headstrong or for women who were dependent. Although other child behavioral problems are also associated with labor market earnings, their associations did not differ significantly by gender. The gender differences in headstrong and dependent behavior are not explained by education, marriage, depression, self-esteem, health, or adult personality traits. One potential explanation is that these gender differences are a consequence of deviations from gender norms and stereotypes in the workplace. [ABSTRACT FROM AUTHOR]

Taxation plays a fundamental role in creating a fair society and building a strong economy. Through a well-structured tax system, it is possible to eliminate income inequalities and reduce production costs, including the labour costs. Fiscal policy can also have a large influence on employment decisions, investment levels and business expansion, all of which lead to stronger economic growth. At the same time, labour taxation plays an essential role in regulating imbalances on the labour market, influencing both labour supply and labour demand, through the impact on labour costs. Under such context, our paper aims to carry out a cluster analysis among the 27 EU member states to investigate how developed nations handle taxation of citizens’ income and where Romania ranks in terms of fiscality, earnings and labour costs among European countries. Using a set of relevant indicators, we were able to group countries into 3 clusters and to differentiate between developed economies with a robust tax system and less developed economies with a tax system with frequent changes leading to a lack of predictability.

We examine the role of earnings, book value, and dividends in examining the valuation of firms in select Asian countries. Besides the usual variables of earnings and book value, inclusion of dividends is motivated by prior use of the variable in the literature, as well as an adaptation of the Ohlson 2001 empirical specification of the valuation model. In our specification, absent credible analysts' forecasts, as is typical in these markets, dividends together with earnings play the role of "other information" in explaining stock prices. In a large sample of Asian firms from seven Asian countries that lack an active analyst community, we document two key results. First, the model with earnings, book value, and dividends outperforms the earnings capitalization, book value, and a model with earnings and book value together, the traditional benchmarks used in the literature. This is in contrast to Ashbaugh and Olsson, 2002 who find that earnings capitalization is the best model for the international firms. Second, the ability of the model to explain stock valuations does not vary materially over time, thus indicating reasonable consistency across different accounting regimes in these countries that may include International Financial Reporting Standards (IFRS) adaptation at different paces. Our finding highlights the information role of earnings and dividends when other channels of information are blocked. [ABSTRACT FROM AUTHOR]

We use a simple k-nearest neighbors algorithm (hereafter, k-NN*) to forecast earnings. k-NN* forecasts of one-, two-, and three-year-ahead earnings are more accurate than those generated by popular extant forecasting approaches. k-NN* forecasts of two- and three-year (one-year)-ahead EPS and aggregate three-year EPS are more (less) accurate than those generated by analysts. The association between the unexpected earnings implied by k-NN* and the contemporaneous market-adjusted return (i.e., the earnings association coefficient (EAC)) is positive and exceeds the EAC on unexpected earnings implied by alternate approaches. A trading strategy that is long (short) firms for which k-NN* predicts positive (negative) earnings growth earns positive risk-adjusted returns that exceed those earned by similar trading strategies that are based on alternate forecasts. The k-NN* algorithm generates an empirically reliable ex ante indicator of forecast accuracy that identifies situations when the k-NN* EAC is larger and the k-NN* trading strategy is more profitable. Data Availability: Data are available from the public sources described in the text. JEL Classifications: C21; C53; G17; M41. [ABSTRACT FROM AUTHOR]

The authors examined the possible adverse effect of hot temperature on firms' profitability and stock performance, using measures of various scorching temperature variables as exogenous indicators of firms' weather risk. The results show that scorching temperatures led to declines in the sample firms' earnings caused by changes in sales, expenses, and productivity. The more extreme the hot weather, the more the earnings declined. In further investigations, the authors found that this impact of scorching temperatures was heterogeneous over time and across sectors, geographical locations, and levels of economic development. The impact was most severe in low-latitude regions, especially tropical and subtropical countries from 2013 onward. It was also found that extremely hot temperatures negatively influenced the stock returns of individual firms. This effect, mediated by the firm's earnings, was especially strong for value stocks and small cap stocks. Our results also show that the firms' profitability and stock performance are exacerbated by the increases in global average temperatures and provide the direct evidences of the adverse impact of global warming on individual firms. Finally, weather uncertainty aggravated the volatility of earnings and stock returns. [ABSTRACT FROM AUTHOR]

Fathers tend to achieve higher earnings than childless men, but there is limited evidence on the associations between fatherhood timing and men’s later earnings. Using a longitudinal census-based sample of Finnish men, including a subsample of brothers, we investigated fatherhood timing and men’s midlife earnings using both between- and within-family models. Earnings around age 50 were lower among adolescent and young fathers than for men who became fathers at ages 25–29 or later, but these associations became negligible after accounting for measured confounders and unobserved familial confounding. Overall, our findings highlight the important roles of selection into early childbearing and into childlessness. At the population level, early fatherhood was associated with clear negative distributional shifts in fathers’ midlife earnings. However, among all men, any influence of fatherhood timing on men’s midlife earnings distribution paled in comparison with that of childlessness. [ABSTRACT FROM AUTHOR]

This paper explores the impact of local workers’ communication skills (CS) on the transfer of soft and hard skills, and the effect of CS vis-à-vis practical skills (PS) on earnings, drawing on economic sociology. It also investigates the continued importance of CS after a significant reduction in expatriate managers. The findings indicate that CS influences the transfer of soft skills, but not hard skills. Expatriate managers significantly contribute to soft skills transfer, while local supervisors are more prominent in transferring hard skills. CS is important for earnings, regardless of the operator’s PS level, but the returns to PS depend on the CS level. As firms mature and expatriate manager numbers decline the influence of CS diminishes, although it remains crucial in affecting earnings. Enhancing workers’ effective communication and shared language skills, as well as regulating recruited expatriate managers’ CS, or the assigning interpreters, can facilitate both skills transfer and earnings. [ABSTRACT FROM AUTHOR]

The ultimatum and dictator games were developed to help identify the fundamental motivators of human behavior, typically by asking participants to share windfall endowments with other persons. In the ultimatum game, a common observation is that proposers offer, and responders refuse to accept, a much larger share of the endowment than is predicted by rational choice theory. However, in the real world, windfalls are rare: money is usually earned. I report here a small study aimed at testing how participants react to an ultimatum game after they have earned their endowments by either building a Lego model or spending some time sorting out screws by their length. I find that the shares that proposers offer and responders accept are significantly lower than that typically observed with windfall money, an observation that is intensified when the task undertaken to earn the endowment is generally less enjoyable and thus perhaps more effortful (i.e., screw sorting compared to Lego building). I suggest, therefore, that considerations of effort-based desert are often important drivers behind individual decision-making, and that laboratory experiments, if intended to inform public policy design and implementation, ought to mirror the broad characteristics of the realities that people face. [ABSTRACT FROM AUTHOR]

Objective Objective: In recent years, the focus on earnings characteristics has intensified, spurred by the financial disclosures of some major corporations. Financial analysts and investors not only consider the accounting profit figure when assessing future cash flows but also prioritize the sustainability and repeatability of reported earnings. More than the final earnings figure, they refer to the items that make up real earnings, usefulness in predicting future earnings, as well as the stability, sustainability, and immutability of reported earnings. Earnings are one of the most important factors affecting economic decisions. Users' awareness of the reliability of earnings can help analysts make better decisions about profitability and financial statement analysis. This study examines the relationship between financial reporting models and earnings characteristics of companies listed on the Tehran Stock Exchange. Methods The present study is applied in terms of purpose. In the present study, the required data have been extracted from Rahavard Novin software, financial statements of companies and text mining as well as the Codal website. The statistical population of the present study includes companies listed on the Tehran Stock Exchange from 2012 to 2022. Stata 14 was the software utilized for data preparation and model estimation in this study. The panel data model was used to test the research hypotheses. Results The findings of this study indicate that the net assets approach negatively impacts the quality of accruals, positively influences income smoothing, negatively affects earnings predictability, and does not impact earnings sustainability. Additionally, the results obtained indicate that the transactional approach positively affects the quality of accruals, has no effect on income smoothing or earnings predictability, and negatively impacts earnings sustainability. Conclusion This study has examined earnings characteristics from four perspectives: accruals quality, income smoothing, earnings predictability, and earnings sustainability. Accruals quality associates accruals with past, present, and future cash flows, and then tests them. This criterion (called accruals quality) is related to debt cost and equity cost. Earnings sustainability indicates the stability and persistence of earnings. Because management cannot address all the requirements of financial statement users, reliance on financial information as companies' output is heightened. Thus, the significance of earnings quality is paramount prior to decision-making, as higher earnings quality correlates with better company performance. For reasons such as retention in the company, bonus receipt, and other factors, the manager consciously or unconsciously presents the status of the company as favorable; therefore, the characteristics of corporate earnings are influenced by the foundations of reporting and the discretion of their managers. Less reliable earnings equate to less useful information they offer. [ABSTRACT FROM AUTHOR]

We analyze economic assortative mating and its contribution to earnings inequality in South Korea from 1998 to 2018. Our analysis is based on cross-sectional and panel data and accounts for several methodological issues, including measurement error and sample selection bias. Despite a very high level of assortativeness in education, Korea exhibits a negative correlation in earnings between spouses due to low female labor force participation and its negative correlation with male earnings. However, the correlation is large and positive for hourly earnings, among dual-earner couples. Cohort analysis reveals significant changes in earnings correlations, as rising female labor force participation offsets slightly declining educational sorting among younger cohorts. As a result, assortative mating contributes to a very limited extent to inequality between households in observed monthly earnings, but accounts for a sizable fraction, around to 15%, of inequality between household in hourly earnings. [ABSTRACT FROM AUTHOR]

An independent institution gives appreciation to companies in Indonesia that have published their sustainability reports by ranking their sustainability reports in the Asia Sustainability Reporting Rating. This institution plays a role in facilitating and encouraging companies, organizations and other entities in Indonesia to adopt good sustainability reporting practices. This ranking factor is predicted to influence the movement of abnormal returns so that it can influence value relevance through the earnings response coefficient. The aim of this study is to reveal the relevance of value in order to obtain empirical evidence regarding the influence of sustainability reports, sustainable report ratings and earnings persistence on the earnings response coefficient. The research sample was 130 companies in Indonesia that were included in the Asia Sustainability Reporting Ranking for the period 2019 to 2022. This paper uses a quantitative multiple linear regression method to test the hypothesis. The research results show that consistent profits can be predicted from the past and make a positive contribution to future earnings response. A company transparently discloses its performance in the sustainability aspect, thereby making the profit response more positive. Companies with high sustainability ratings tend to get a more positive profit response from the market and stakeholders. This study suggests that management and company owners in Indonesia are aware of the need to pay attention to long-term sustainability through the publication of sustainability reports to become a company’s commitment to implementing sustainability and minimizing risks arising from the company’s economic, social and environmental activities. AcknowledgmentsThe authors would like to thank the Directorate of Research, Community Service and Publications (DPPMP) of Stikubank University for supporting the funding of this research. Thanks also to fellow FEB lecturers who have helped provide the facilities needed for this research.

ABSTRACTDifferences in regional incomes are large and persistent in many countries. On the one hand, internal migration from low- to high-income regions might eradicate these differences over time. On the other hand, internal migration might exacerbate disparities, as receiving regions benefit from incoming skills and agglomeration economies. This paper estimates the effect of internal in- and out-migration on the earnings of employees who do not move, using a panel of employee records from Great Britain between 2004 and 2018. Employees are tracked and identified as internal migrants if they start working in a new travel-to-work area (TTWA), representing functional labour market areas. The share of in- and out-migrants is significantly correlated with earnings and earnings growth of non-migrants in a TTWA. The results show that in-migrants have an immediate negative effect on local earnings of non-migrants. After three years, in-migration is positively correlated with earnings growth. These effects are exclusively driven by urban areas. Out-migrants have no significant effects. The results provide some evidence that labour mobility can be used as a tool to encourage local growth, albeit with significant adjustment costs.

This study contributes to the theoretical and empirical debate on how adolescent employment affects later labour market resources. Specifically, we view such employment as having a complex relation with labour market outcomes in young adulthood, depending on the specific resource examined: the likelihood to be employed and the earnings level. Focusing on Israeli millennials, we used administrative longitudinal data from the Israel National Insurance Institute with respect to a representative sample of the 1991 cohort, covering ages 12–28. Findings show that while employment during adolescence increases the likelihood of working in young adulthood, once employed, it decreases earnings, suggesting that adolescent employment has relations of both inclusion and exclusion with respect to the labour market resources of young adults. [ABSTRACT FROM AUTHOR]

We explore the reasons behind corporate dividend changes and factors driving those changes during 2001–2021 in Oman, as a unique environment. The implications of our paper contrast with the relevant existing literature which demonstrates a positive correlation between dividends and stock prices in Oman, in support of the signaling theory. Employing multiple methods and after controlling for the nonlinearity in the profitability process, we find virtually no evidence for the signaling theory of dividends for dividend reductions, in terms of future earnings. Furthermore, our analysis affirms the importance of current profitability in influencing the magnitude of and the propensity to change (increase or decrease) dividends in listed Omani firms. We also find that the catering theory of dividends does not have any explanatory power on dividend changes. Further, firms' life-cycle status and real investments have been found to significantly affect the decision to change dividends. Our results, which depart from the findings in the conventional literature, can be attributed to the distinct institutional features in Oman. Our game-theoretic model of dividend signaling/dividend catering provides some explanations. [ABSTRACT FROM AUTHOR]

Complementing studies on physical attractiveness and labor market outcomes, we use the information on physical and personality attractiveness rated by interviewers from four waves of the National Longitudinal Study of Adolescent to Adult Health (ADD Health) for 1,485 individuals (73 female and 60 male self-employed). Though neither physical attractiveness nor personality attractiveness is related to self-employment earnings individually, females who are self-employed with both physical attractiveness and personality attractiveness have higher earnings. There are no effects of both attractiveness types for males (employed or self-employed) or females (employed) on earnings. Plain English Summary: We examine how physical attractiveness and personality attractiveness relate to performance in self-employment. Interestingly, we did not find that either physical attractiveness or personality attractiveness individually had any significant relationship with earnings for self-employed individuals. However, we did find that self-employed females who are both physically attractive and have attractive personalities did have significantly higher earnings. There were no significant effects on earning for either self-employed or employed males who were both physically attractive and had attractive personalities or for employed females with both forms of attractiveness. These results add nuance to prior research regarding the potential beauty premium that could play a role in key aspects of performance for those who are self-employed. Specifically, our findings highlight the need to consider both physical and personality traits for females who are considering, or are currently pursuing, self-employment. [ABSTRACT FROM AUTHOR]