Profits versus Losses: Does Reporting an Accounting Loss Act as a Heuristic Trigger to Exercise the Abandonment Option and Divest Employees?

272 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Do employee-friendly firms invest more efficiently? Evidence from labor investment efficiency (2020, unknown): “Following Pinnuck and Lillis (2007), we winsorize all continuous variables at the 1st and 99th percentiles of their respective distribution to reduce the influence of outliers.”
Accounting Conservatism and Firm Investment Efficiency (2016, unknown): “Pinnuck and Lillis (2007) likewise show that loss reporting serves to resolve”
The effects of financial reporting and disclosure on corporate investment: A review (2019, background): “10 A related study is Ramalingegowda et al. (2013), which exploits the role of financial reporting in the sensitivity of investment to dividends (as opposed to collateral as in Balakrishnan et al.”
Does stock price informativeness affect labor investment efficiency (2016, methodology): “…information that managers do not possess such as information about future investment and growth opportunities, future demand of the firm’s products and services, and financing opportunities, which may affect labor investment decisions (Pinnuck and Lillis, 2007; Benmelech, Bergman, and Seru, 2011).”