Analyst coverage and real earnings management: Does IFRS adoption matter? UK evidence.

This study examines the impact of analysts coverage on real earnings management (REM) decisions. The study further investigates the effect of mandatory IFRS adoption on the relationship between analyst coverage and REM. We constructed a sample of UK non-financial listed firms for the period 1997-2021. The results demonstrate that firms followed by a large number of financial analysts record higher levels of earnings management. This result supports the contention that high intensity of analyst coverage imposes extra pressure on firms' managers to meet analysts' earnings per share (EPS) expectations, motivating a higher level of earnings management. Contrary to expectations, the introduction of IFRS fails to strengthen the monitoring role of security analysts on firms' management: rather, managers utilize the inherent flexibility and available discretion in the principles-based IFRS to meet analysts' benchmarks by means of REM activities. These results are robust after controlling endogeneity.

The effect of the COVID-19 pandemic on accrual-based earnings management: Evidence from four most affected European countries.

This study aims to investigate the effect of the COVID-19 pandemic on accrual-based earnings management (EM) based upon a sampling of 938 listed firms from four selected European countries (United Kingdom, Italy, Spain, and Türkiye) during 2016-2020. We find that firms engage more in accrual-based EM through income-increasing and income-decreasing accruals in the year of the COVID-19 pandemic relative to the period before the pandemic. These findings imply that financial reporting reliability and usefulness decreased in the period of the pandemic. Our results are robust to some sensitivity checks.

Becoming a parent: Trajectories of family division of labor in Germany and the United States.

The transition to parenthood represents a turning point shaping couples' arrangements for paid work and housework. Previous studies often examined these changes in isolation, rather than as interrelated trajectories reflecting diverse models of family division of labor. Drawing on data from different-sex couples from the 1984-2019 Panel Study of Income Dynamics and the 1984-2020 German Socio-Economic Panel, this study uses multichannel sequence analysis to identify four and three patterned constellations of family division of labor in the United States and Germany, respectively. These constellations differ in women's and men's respective contributions to household earnings and their relative participation in housework, spanning from one year before to ten years after the birth of a first child. National differences are found in the identified constellations, their prevalence, and the role of couples' conjoint education in shaping these constellations. In both countries, couples in which the husband has an educational advantage are most likely to transition to a traditional arrangement. However, only in the U.S. do couples with both partners holding a college degree also tend to enter a traditional arrangement. Furthermore, among U.S. couples in which the wife has an educational advantage, they are most likely to adopt a partly egalitarian arrangement (equal earnings but not housework) upon becoming parents.

Fatherhood timing and men's midlife earnings: A within-family study of Finnish cohorts born in 1938-50.

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.

The Impact on Working Conditions and Income Amongst Internists in Indonesia: Lesson Learned from the COVID-19 Pandemic.

Internists are at the forefront of providing care for COVID-19 patients. This situation adds more strain on already overburdened internists, particularly in Indonesia, where resources are scarce and unevenly distributed. The pandemic altered working conditions due to restrictions and regulatory changes. Multiple evidence exists for the effect of the COVID-19 pandemic on physicians' well-being, but less is known about its impact on their work dynamics and livelihoods. This study provides some lessons learned during the COVID-19 pandemic regarding the changes in working conditions and earnings experienced by Indonesian internists. There were 3,115 and 1,772 participants in the first and second survey, respectively. After one year, the proportion of internists handling COVID-19 cases, including critical COVID-19 cases, increased; with fewer internists over 60 years old involved. Working hours, number of patients, and monthly earnings decreased for the majority of internists. The increased workload was experienced by most participants one year of the pandemic, predominantly reported by female internists. The COVID-19 pandemic caused a considerable impact on working conditions and income amongst internists in Indonesia. These findings may provide information to institutions in formulating strategies and tools to improve the working conditions and livelihoods of internists in Indonesia amidst the pandemic and potential public health emergencies in the future.

Economic returns to reproducing parents' field of study.

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.

Pathways to retirement in West Germany: Does divorce matter?

The aim of this paper is to explore how divorce is linked to pathways to retirement in West Germany and to understand whether and how patterns are gendered. Using German pension insurance data, I employ sequence and cluster analysis to map and group pathways to retirement of women and men who retired in 2018. Pathways to retirement are defined based on monthly pension insurance histories from age 50 to 65. I find nine distinct pathways to retirement, ranging from unemployment to stable low to high income pathways and to an early retirement pathway through the reduced-earnings-capacity pension, the latter representing 9.3% of the sample. Based on multinomial logistic regression models, I analyse how marital status, distinguishing between divorced and (re)married, was related to different pathways to retirement. The results show that divorced people were more likely than married people to retire through indirect and unstable pathways to retirement characterised by early exit from the labour market and receipt of reduced-earnings-capacity pensions and/or unemployment benefits. Whereas the relationship between divorce and pathways to retirement seemed to be overall unfavourable for men, the results for women are more ambiguous. Divorced women were also more likely to retire through a stable high-income pathway than married women. Nevertheless, the results suggest that divorce is associated with an early retirement pathway through the reduced-earnings-capacity pension for both women and men.

Academic productivity correlates with industry earnings in foot and ankle fellowship programs in the United States: A retrospective analysis.

BACKGROUND: The study investigates the connection between academic productivity and industry earnings in foot and ankle orthopedic surgery fellowships. Utilizing metrics like the H-index and Open Payments Database (OPD) data, it addresses a gap in understanding the relationship between scholarly achievements and financial outcomes, providing a basis for further exploration in this specialized medical field. AIM: To elucidate the trends between academic productivity and industry earnings across foot and ankle orthopedic surgery fellowship programs in the United States. METHODS: This study is a retrospective analysis of the relationship between academic productivity and industry earnings of foot and ankle orthopedic surgery fellowships at an individual faculty and fellowship level. Academic productivity was defined via H-index and recorded from the Scopus website. Industry earnings were recorded from the OPD. RESULTS: Forty-eight foot and ankle orthopedic surgery fellowships (100% of fellowships) in the United States with a combined total of 165 physicians (95.9% of physicians) were included. Mean individual physician (n = 165) total life-time earnings reported on the OPD website was United States Dollar (USD) 451430.30 ± 1851084.89 (range: USD 25.16-21269249.85; median: USD 27839.80). Mean physician (n = 165) H-index as reported on Scopus is 14.24 ± 12.39 (range: 0-63; median: 11). There was a significant but weak correlation between individual physician H-index and individual physician total life-time earnings (P < 0.001; Spearman's rho = 0.334) and a significant and moderate positive correlation between combined fellowship H-index and total life-time earnings per fellowship (P = 0.004, Spearman's rho = 0.409). CONCLUSION: There is a significant and positive correlation between academic productivity and industry earnings at foot and ankle orthopedic surgery fellowships in the United States. This observation is true on an individual physician level as well as on a fellowship level.

Why do drinkers earn more? Job characteristics as a possible link.

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.

Can enterprise green transformation inhibit accrual earnings management? Evidence from China.

This study theoretically and empirically analyzes the impact and mechanism of corporate green transformation on accrual earnings management using a sample of China's A-share listed companies from 2015 to 2021. The results indicate that the green transformation of enterprises helps restrain accrual-based earnings management, especially accrual-based earnings management, which increases profits, and that the inhibition effect of enterprise green transformation on earnings management is more significant in high-tech and growth-stage enterprises. The mechanism test shows that corporate green transformation can inhibit accrual-based earnings management by increasing analyst follow-up and easing financing constraints. Using China's environmental tax law, promulgated in 2018, as an exogenous shock to construct the PSM-DID, the conclusion still holds after alleviating endogeneity. Further research has found that green transformations can also help inhibit real earnings management. This study provides new empirical evidence for a comprehensive understanding and evaluation of the governance role of corporate green transformation and provides a reference value for further comprehensively promoting the green transformation of Chinese enterprises and improving the quality of accounting information.

Real earnings management and ESG disclosure in emerging markets: The moderating effect of managerial ownership from a social norm perspective.

Drawing on social norm theory, this study delves into the nexus between real earnings manipulation (REM) and Environmental, Social, and Governance (ESG) disclosure within Egypt's emerging capital market. By analyzing data from the S&P/EGX ESG index (2013-2018) through a two-stage regression analysis, we unearth a noteworthy pattern: heightened REM practices correspond with reduced tendencies for ESG sustainability disclosure. Notably, this association is moderated by managerial ownership, which diminishes the negative linkage between REM and ESG transparency. A unique cultural insight emerges, revealing that religiously-aligned firms leverage REM as a risk-mitigation mechanism, leading to curtailed ESG disclosures. Our findings cast a spotlight on a possible managerial tilt towards short-term gains, often overshadowing long-term sustainability imperatives, especially in religiously influenced contexts. As we advance understanding of REM-ESG dynamics in religious emerging markets, our study highlights the pressing need for enhanced sustainability consciousness and accountability in these regions.

The Gender Wage Gap, Between-Firm Inequality, and Devaluation: Testing a New Hypothesis in the Service Sector.

Unequal sorting of men and women into higher and lower wage firms contributes significantly to the gender wage gap according to recent analysis of national labor markets. We confirm the importance of this between-firm gender segregation in wages and examine a second outcome of hours using unique employer-employee data from the service sector. We then examine what explains the relationship between firm gender composition and wages. In contrast to prevailing economic explanations that trace between-firm differences in wages to differences in firm surplus, we find evidence consistent with devaluation and potentially a gender-specific use of "low road" employment strategies.

Effects of social distancing policy on labor market outcomes.

US workers receive unemployment benefits if they lose their job, but not for reduced working hours. In alignment with the benefits incentives, we find that the labor market responded to COVID-19 and related closure-policies mostly on the extensive (12 pp outright job loss) margin. Exploiting timing variation in state closure-policies, difference-in-differences (DiD) estimates show, between March 12 and April 12, 2020, employment rate fell by 1.7 pp for every 10 extra days of state stay-at-home orders (SAH), with little effect on hours worked/earnings among those employed. Forty percentage of the unemployment was due to a nationwide shock, rest due to social-distancing policies, particularly among "non-essential" workers.

Audit committee features and earnings management.

Purpose: Past studies have investigated the relationship between audit committee features and earnings management and reported mixed and inconclusive results. Some studies have found a significant relationship, while others have not. This study aims to explain these mixed results in the literature by dividing earning management into two groups: accrual and real earnings management (at three levels of sales, general and administrative costs, production costs and cash flows operation) and re-examining the relationship. Design/methodology/approach: The statistical model used in this study is a multivariate regression model; further, the statistical technique used to test the hypotheses is panel data. Findings: The findings show that both the audit committee members' financial expertise and the audit committee's size affect the accrual earnings management. However, the results show no meaningful relationship between the audit committee features and real-based earnings management at any levels of sales, general and administrative costs, production costs and cash flow operation. In addition, the findings suggest no meaningful relationship between the independence of the audit committee's members and accrual earnings management. In other words, not separating the earning management into 'accrual' and 'real' could be the critical factor for the reported mixed and inconsistent results in the literature. Practical implications: The findings of the current study provide an important guideline for investors and stakeholders to separate 'accrual' from 'real' earning management and pay more attention to the importance of audit committee features to limit the opportunities of earnings management. Indeed, by understanding the relationship between audit committee features and earnings management, investors and stockholders can make appropriate decisions regarding the optimal choice of funds. Originality/value: Dividing the earning management into two groups (accrual versus real) and re-examining its relationship with the audit committee features is new in this paper. Identifying one of the possible reasons for the past mixed and inconsistent results in the literature is also an incremental contribution provided by this study.

Informal waste pickers in guayaquil: Recycling rates, environmental benefits, main barriers, and troubles.

Systems for managing municipal solid waste are typically ineffective in developing nations because of governments' deficient financial and administrative frameworks, poor rules, and a lack of suitable infrastructure and human resources. The informal sector plays an essential role in these systems by reprocessing waste into secondary raw materials, reducing collection and disposal costs, and, most importantly, benefiting the environment by avoiding incineration and landfilling. However, their actual contributions remain unknown. The present paper aims to understand the role of informal waste pickers (IWPs) in the waste management system of Guayaquil City and their environmental impact through the calculations of the carbon footprint (CF) avoided due to their aid. The survey design gathered information on their personal profiles, types, and rates of collected recyclables, market conditions, their main barriers, and troubles regarding their formalization. The results of the survey demonstrate that waste picking is mostly a male-driven activity, the average daily mass collected per IWP is 13 kg, the most collected recyclable waste is polyethylene terephthalate, their average monthly income is $179, and the total avoided CF of the entire informal waste picking process is almost 14 thousand tons of CO2 eq yearly. Further, IWPs prefer to operate alone, and only 16% of them would join a cooperative, despite their numerous financial, logistical, and personal challenges.

Financial characteristics and security of podiatry work in Victoria: the PAIGE cross sectional study of Australian podiatrists.

BACKGROUND: Podiatrists' earnings have an important influence on workforce dynamics. This includes the profession's ability to attract and retain workers so the population's healthcare needs can be met. This study aimed to describe financial characteristics of podiatry work and factors relating to a sense of financial security. METHODS: This was a cross sectional study using data from Victorian podiatrists who participated in Wave 1 of the Podiatrists in Australia: Investigating Graduate Employment (PAIGE) survey. Demographic and financial characteristics were described. The outcome measure, financial security, was collected through a self-reported belief based on current financial situation and prospects, respondents' perception of having enough income to live on when they retire. Univariate logistic regression was used to determine associations with rural or metropolitan practice locations. Multiple ordered logistic regression was performed to explore associations between factors relating to financial security and retirement prospects. RESULTS: There were 286 Victorian podiatrist (18% of n = 1,585 Victorian podiatrists) respondents. Of these, 206 (72% of n = 286) identified as female, 169 (59% of 286) worked in the private sector and the mean (SD) age was 33.4 (9.5) years. The mean (SD) annual gross income was $79,194 ($45,651) AUD, and 243 (87% of 279) made regular superannuation contributions. Multiple ordered logistic regression analyses identified factors associated with podiatrists' perception of having adequate retirement income. These included being an owner/partner of their main workplace (adj OR = 2.70, 95% CI = 1.49-4.76), growing up in a rural location (adj OR = 2.27, 95% CI = 1.38-3.70), perceiving a moderate overall health rating (adj OR = 2.03 95% CI = 1.51-2.75), not having financial debt related to education and training (adj OR = 2.02, 95% CI = 1.24-3.32) and regular contributions to a superannuation scheme (adj OR = 4.76, 95% CI = 2.27-10.00). CONCLUSION: This is the first known study to explore podiatrists' earnings and perceptions regarding financial security. Findings suggest modifiable ways to improve financial security of podiatrists including support and education about personal and business finances including debt management, understanding the importance of contributions to superannuation when self-employed, and developing skills and supports for podiatrists to run their own businesses. This research is exploratory and is relevant for understanding the impact that income and financial security have on workforce dynamics.

Inequality among the Disadvantaged? Racial/Ethnic Disparities in Earnings among Young Men and Women without a College Education.

Despite the rapid expansion of higher education, many young adults still enter the labor market without a college education. However, little research has focused on racial/ethnic earnings disadvantages faced by non-college-educated youth. We analyze the restricted-use data from the High School Longitudinal Study of 2009 to examine racial/ethnic earnings disparities among non-college-educated young men and women in their early 20s as of 2016, accounting for differences in premarket factors and occupation with an extensive set of controls. Results suggest striking earnings disadvantages for Black men relative to white, Latinx, and Asian men. Compared to white men, Latinx and Asian men do not earn significantly less, yet their earnings likely differ substantially by ethnic origin. While racial/ethnic earnings gaps are less prominent among women than men, women of all racial/ethnic groups have earnings disadvantages compared to white men. The results call for future studies into the heterogeneity within racial/ethnic groups and the intersectionality of race/ethnicity and gender among non-college-educated young adults.

Labor market position among care leavers and their matched peers: A longitudinal comparative study.

BACKGROUND: The adverse labor market experience of care leavers is well-documented. Care leavers lag behind their peers in the general population in all employment aspects and even fall short compared to young people from low-income families. Yet, there are only very few comparative longitudinal studies on care leavers' relative labor market position (LMP). OBJECTIVES: To examine and predict: (1) LMP, an integrative measure of labor market connectedness and earning level, among care leavers and a matched comparison group from age 22 to 34; (2) gender differences in LMP among care leavers and their same-sex matched peers. PARTICIPANTS AND SETTING: Participants were alumni of youth villages in Israel from 13 consecutive birth cohorts (20,758) and a double-sized matched comparison group (41,510). METHODS: Based on longitudinal administrative records bivariate analyses examined differences in age-related LMP between care leavers and their matched peers. Gender-stratified analyses were also performed. A multilevel multinomial model predicted LMP throughout the age span. RESULTS: Care leavers were less likely than their matched peers to be disconnected from employment. The rate of low-wage earners was similar in the two groups. Male care leavers performed better than their matched peers, while female care leavers performed worse than their matched peers. Controlling for pre-care factors, in-care and post-care achievements and experiences, both men and women care leavers performed better than their matched peers. CONCLUSIONS: Labor market connectedness and relative earning progression are shaped by pre-care factors, in-care and post-care achievements and experiences. Three sub-groups of care leavers and similar young people were identified based on their characteristics.

COVID-19 and income inequality: evidence from monthly population registers.

We measure the distributional impact of the COVID-19 pandemic using newly released population register data in Sweden. Monthly earnings inequality increased during the pandemic, and the key driver is income losses among low-paid individuals while middle- and high-income earners were almost unaffected. In terms of employment, as measured by having positive monthly earnings, the pandemic had a larger negative impact on private-sector workers and on women. In terms of earnings conditional on being employed, the effect was still more negative for women, but less negative for private-sector workers compared to publicly employed. Using data on individual take-up of government COVID-19 support, we show that policy significantly dampened the inequality increase, but did not fully offset it. Annual total market income inequality, which also includes capital income and taxable transfers, shows similar patterns of increasing inequality during the pandemic. Supplementary Information: The online version contains supplementary material available at 10.1007/s10888-022-09560-8.

How the Great Recession changed class inequality: Evidence from 23 European countries.

The question of whether economic recessions increase or decrease the earnings gap between the working and upper-middle class is debated. We study this issue and examine the Great Recession period using two different analytical strategies: three-level multilevel models and multivariate analysis over time. Based on EU Statistics on Income and Living Conditions (EU-SILC) data in 23 countries from 2004 to 2017, our results under both analytical strategies provide robust evidence that, by and large, the Great Recession widened the earnings gap between the working and upper-middle class. The effect magnitude is sizable; an increase of 5 percentage points in the unemployment rate is associated with an increase in the class earnings gap of approximately 0.10 log points.