Business Commons^™

The Fraud Diamond: Considering The Four Elements Of Fraud, David T. Wolfe, Dana R. Hermanson

Faculty and Research Publications

Focuses on the use of the elements of the fraud diamond to prevent and detect accounting fraud. Essential traits for committing fraud; Steps in assessing fraud risk through the use of the fourth element of the diamond; Ways for auditors to prevent potential fraud.

Icarus In The Boardroom, Introduction, David A. Skeel Jr.

All Faculty Scholarship

Americans have always loved risk takers. Like the Icarus of ancient Greek lore, however, even the most talented entrepreneurs can overstep their bounds. All too often, the very qualities that make Icaran executives special - self-confidence, visionary insight, and extreme competitiveness - spur them to take misguided and even illegal chances. The Icaran failure of an ordinary entrepreneur isn't headline news. But put Icarus in the corporate boardroom and - as this book vividly demonstrates - the ripple effects can be profound. Ever since the first large-scale corporations emerged in the nineteenth century, their ability to tap huge amounts of …

Pb1750-Considerations For Membership Investment In A Processing Cooperative, The University Of Tennessee Agricultural Extension Service

Marketing, Finances and Value-Added Agriculture

The “Tennessee Processing Cooperative Law”1 provides new opportunities for Tennessee farmers. These include new market opportunities for farm commodities and the opportunity for investment in a value-added processing business. The new law is intended to encourage business formations that will add value to farm commodities and agricultural resources in Tennessee.

A thorough introduction and overview of Tennessee’s processing cooperative law is available in UT Extension PB1748, “Commentary and Overview for the Tennessee Processing Cooperative Law.” Basically, the new law provides for the establishment of a new business structure specifically for businesses that will add value by processing or marketing agricultural …

Pb1748-Commentary And Overview For The Tennessee Processing Cooperative Law, The University Of Tennessee Agricultural Extension Service

Marketing, Finances and Value-Added Agriculture

It has not been that long ago when the options for organizing a business were fairly straightforward. The list began with sole proprietorships and partnerships and then included cooperatives and corporations. This simplified list has become a bit more complex in recent years, and now includes limited liability companies and multiple subclassifications of corporations, partnerships and cooperatives. To complicate matters even more, the precise descriptions of any of these business organizations are often state-specific. That is, the definition and organizational details of a limited liability company or a cooperative in one state are not necessarily the same as in other …

Just Measures: A Methodology For Assessing The Global Value Added Of Corporate Activities, Alexander A. Boni-Saenz, Chih-Hung Chang, Ajan Reginald, Ravi Kacker

All Faculty Scholarship

This article accepts the premise of stakeholder theory, which asserts that corporations, like other human-run entities, have obligations to all parties affected by their actions. As such, corporations should be given suitable credit for projects that add value for these stakeholders, as well as held accountable for any damage done. To provide this credit and accountability, measurement is necessary. The methodology of measurement for corporate social value creation is in its infancy. Models are incomplete, measures are not validated, and methods used to estimate net value accumulated from different domains need improvement. This article builds on one model of global …

The Relationship Between Governance Structure And Risk Management Approaches In Japanese Venture Capital Firms, Toru Yoshikawa, Phillip H. Phan, Jonathan Linton

Research Collection Lee Kong Chian School Of Business

This paper attempts to understand what drives Japanese venture capital (JVC) fund managers to select either active managerial monitoring or portfolio diversification to manage their firms' investment risks [J. Bus. Venturing 4 (1989) 231]. Unlike U.S. venture capitalists that use active managerial monitoring to gain private information in order to maximize returns [J. Finance 50 (1995) 301], JVCs have traditionally used portfolio diversification to attenuate investment risks [Hamada, Y., 2001. Nihon no Bencha Kyapitaru no Genkyo (Current State of Japanese Venture Capital), Nihon Bencha Gakkai VC Seminar, May 7]. We found that performance pay is positively related to active monitoring …

Managing Unmanageable Physicians: Leadership, Stewardship, And Disruptive Behavior, Tim Keogh, William Martin

Publications – Dreihaus College of Business

Physician and health care leaders are seeking guidance and support on how to address disruptive behavior that has an impact on safety, quality, and performance. This article equips leaders with a model and process to prevent and address disruptive behavior.

The Impact Of Corporate Governance On Value Creation In Entrepreneurial Firms, Wee Liang Tan, Teck Meng Tan

Research Collection Lee Kong Chian School Of Business

The compliance with codes of corporate governance has become the norm for listed firms all over the world. In most countries, entrepreneurial firms do not have to comply with such codes but it has been argued that such codes should also apply to these small medium enterprises (SMEs). Since corporate governance forms the environment for the internal activities of a company and appropriate environmental conditions are crucial for corporate entrepreneurship to flourish in a company, it is apt that these two topics be discussed in relation with each other. Corporate governance mechanisms may dampen value creation in firms if appropriate …

How Corporate Culture Impacts Unethical Distortion Of Financial Numbers, Joseph F. Castellano, Kenneth Y. Rosenzweig, Harper A. Roehm

Accounting Faculty Publications

The recent accounting scandals have highlighted the critical role that investor confidence in the accuracy and lack of distortion of accounting data plays in the health of capital markets and, indeed, the whole economy. The legal and moral culpability of top-level company managers (as well as auditors) is an issue that will be addressed by the nation in the coming months. Whether or not legal sanctions are imposed on managers, it would be well to examine some of the reasons managers may feel compelled to distort accounting numbers as well as engage in other actions that damage the interests of …

Going Beyond Sarbanes-Oxley Compliance: Five Keys To Creating Value, Mark S. Beasley, Dana R. Hermanson

Faculty and Research Publications

Discusses the factors involved in implementing Sarbanes-Oxley Act of 2002 for U.S. accounting firms. Appreciation of the goal behind the law; Comprehension of the accounting fraud; Aggressiveness in addressing ethical attitudes and rationalization.

Obesity, Educational Attainment, And State Economic Welfare, Martin W. Sivula Ph.D.

MBA Faculty Conference Papers & Journal Articles

For the first time in history, estimates of the overweight people in the world rival estimates of those malnourished. The World Health Organization (WHO, 2002) ranked obesity among the top 10 risks to human health worldwide. In the early 1960s, nearly half of the Americans were overweight and 13% were obese. Today some 64% of U.S. adults are overweight and 30.5% are obese. Even more alarming, twice as many U.S. children are overweight than were twenty years ago, a 66% increase. Non-communicable diseases impose a heavy economic burden on already strained health systems. Health is a key determinant of development …

Ethical Considerations In The Marketing Of E-Health Products, Ashish Chandra, Andrew Sikula Sr., David P. Paul Iii

Management Faculty Research

The internet is now recognised as a growing international phenomenon. All kinds of products and services are being marketed over the internet to consumers throughout the world because country borders no longer restrict conducting business in the international marketplace. Though there are several advantages of online commerce, this form of marketing does raise ethical dilemmas, particularly when it comes to marketing healthcare products and information to consumers internationally. This paper examines some of these potential ethical concerns and provides some strategies for consumers and online pharmaceutical marketers to handle these dilemmas more appropriately.

Social Trust And Economic Governance, Fali Huang

Research Collection School Of Economics

The paper investigates the dynamic relationship between social trust and economic governance using a principal-agent model with stochastic returns. To mitigate the inherent moral hazard problem both intrinsic and extrinsic incentives are useful. The cooperative tendency of an agent measures his intrinsic discipline against shirking, the distribution of which characterizes social trust in society. The economic governance methods include direct monitoring and efficiency wage. The main results are the following. An agent with a higher cooperative tendency needs less monitoring and a lower wage to make effort, which brings higher profit for the principal. But competition among principals for more …

Independent Legal Significance, Good Faith, And The Interpretation Of Venture Capital Contracts, D. Gordon Smith

Faculty Scholarship

Venture capital contracts are inherently incomplete. When interpreting such contracts, courts could deal with the expectations of parties formally by inquiring only about the plain meaning of the contract or qualitatively by enforcing the presumed expectations of the parties, regardless of whether those expectations are expressed in the contract. The Delaware courts have opted for a formal approach. In doing so, they appear to be engaged in an effort to force contracting parties toward completeness. While the duty of good faith appears to respond to the inevitable incompleteness of contracts, the courts largely ignore this duty in preferred stock cases. …

A New Player In The Boardroom: The Emergence Of The Independent Directors' Counsel, Geoffrey C. Hazard Jr., Edward B. Rock

All Faculty Scholarship

Over the last thirty years, the independent directors have occasionally been represented by independent counsel. Instances include: special litigation committees reviewing derivative suits; independent committees in parent subsidiary mergers and MBOs; and internal investigations of misconduct. We predict that, with the additional legal requirements imposed on independent directors by the Sarbanes Oxley Act and related changes to SEC rules and Stock Exchange listing requirements, the independent directors, especially those on the Audit Committee, increasingly will be represented on a continuing basis by independent legal counsel. Out of this will emerge a new figure in the board room: the Independent Directors' …

Ethics And The 21st Century University, Judith Bailey

Center for the Study of Ethics in Society Papers

Papers presented for the Center of the Study of Ethics in Society Western Michigan University

Looks Aren't Everything: Aren't Managers Concerned With Actually Being Fair, Terri A. Scandura Phd, Cecily D. Cooper

Management Faculty Articles and Papers

The justice literature has unequivocally noted how important it is employees feel they are treated fairly. Accordingly, managers often find themselves in predicaments of injustice which they must resolve. Research on social accounts describes strategies managers can use to make themselves “seem fair,” thus, alleviating their predicament. But in taking an impression management perspective of justice, this literature fails to acknowledge that many managers actually want to “be fair.” Based on the latter assumption, we propose an alternative framework for understanding how managers will address justice-related predicaments.

Rules, Principles, And The Accounting Crisis In The United States, William W. Bratton

All Faculty Scholarship

The Sarbanes-Oxley Act and the Securities Exchange Commission move too quickly ·when they prod the Financial Accounting Standards Board, the standard setter for US GAAP, to move immediately to a principles-based system. Priorities respecting reform of corporate reporting in the US need to be ordered more carefully. Incentive problems impairing audit performance should be solved first through institutional reform insulating the audit from the negative impact of rent-seeking and solving adverse selection problems otherwise affecting audit practice. So long as auditor independence and management incentives respecting accounting treatments remain suspect. the US reporting system holds out no actor plausibly positioned …

“Lucy In The Sky With Diamonds”: Airline Liability For Checked-In Jewelry, Eloisa Rodriguez-Dod

Faculty Publications

It is expected that when you arrive at an airport you most likely will have to check in a bag or two. What is not expected, however, is that someone would rummage through your baggage and take your belongings. Unfortunately, this happens frequently. A passenger packs her jewelry in her luggage, checks that luggage in, boards her flight, and never sees that jewelry again. Once she discovers the missing jewelry, her options for recovering the loss are quite limited.

This article examines the history and current state of the law regarding airline liability for passengers’ lost belongings on domestic as …

All Party Oireachtas Committee On The Constitution Ninth Progress Report, Tom Dunne

Reports

Ireland, like many other countries with high rates of economic growth, is urbanising rapidly. There has been considerable emphasis on planning for this through the National Development Plan, the National Spatial Strategy, development guidelines and other measures. Through these the state intends that a proper planning process will lead growth rather than leaving it to market forces to drive development in what are regarded as undesirable directions. The latter it is feared will lead to unsuitable social, economic or physical outcomes. Unintended results have flowed from the implementation, or flawed implementation of many of these policies and have given rise …

Pari Passu And A Distressed Sovereign's Rational Choices, William W. Bratton

All Faculty Scholarship

No abstract provided.

Julia's Dilemma, Andra Gumbus, Jill Woodilla

WCBT Faculty Publications

Julia, a professional woman in her mid-thirties, has had relapsing-remitting multiple sclerosis as a part of her life for the last five years. Now she must decide whether to disclose her hidden illness at work. Julia disclosed her illness to her manager in a prior employment, when her MS was first diagnosed, and experienced a supportive response. But she was always mindful that her performance would likely be carefully scrutinized since she was in a job that required strict deadlines. Julia made a career change about a year ago, and did not tell anyone in her new organization that she …

Young Cpas Remain Undaunted By Scandals, Heather M. Hermanson, Mary C. Hill, Susan H. Ivancevich

Faculty and Research Publications

Did the demise of Arthur Andersen and the related fallout affect the satisfaction of entry-level accountants at Big Four firms? The answer appears to be "no." Despite the considerable negative press focused on the profession, entry-level accountants still assess positively the profession and their careers. The authors followed the careers of 32 new hires from the summer of 2000, assessing their job satisfaction every 6 months. Job satisfaction remained stable over the period just before and after the Andersen collapse. Despite the negative press, respondents indicated that their firm is operating much as it had in the past. The relatively …

Worker Ownership In Enron's Wake - Revisiting A Community Development Tactic, Peter R. Pitegoff

Faculty Publications

Worker ownership of business enterprise has long been touted as a vehicle for community economic development. Employee stock ownership plans in leveraged buy-outs, ESOPs and broad-based stock options in going concerns, and worker cooperatives in selected sectors - the experience has varied widely in goals, method, and outcome.

This Article reflects on the continued utility of worker ownership as a component of community development and calls attention to contrasts with conventional corporate governance and goals. Rather than an end in itself or just another way of doing business, worker ownership can be a vital element of a broader job creation, …

Vultures Or Vanguards?: The Role Of Litigation In Sovereign Debt Restructuring, Jill E. Fisch, Caroline M. Gentile

All Faculty Scholarship

The market for sovereign debt differs from the market for corporate debt in several important ways including the risk of opportunistic default by sovereign debtors, the importance of political pressures, and the presence of international development organizations. Moreover, countries are subject to neither liquidation nor standardized processes of debt reorganization. Instead, negotiations between a sovereign debtor and its creditors lead to a voluntary restructuring of the sovereign's debt. One of the greatest difficulties in restructuring claims against sovereign debtors is balancing the interests of the majority of the creditors with those of minority creditors. Holdout creditors serve as a check …

Sovereign Debt Reform And The Interest Of Creditors, William W. Bratton, G. Mitu Gulati

All Faculty Scholarship

No abstract provided.

The Role Of Government In Corporate Governance, Cary Coglianese, Elizabeth K. Keating, Michael L. Michael, Thomas J. Healey

All Faculty Scholarship

Numerous corporate scandals in the past several years have fueled widespread debate over proposals for government action. The central challenge for government is how to restore corporate integrity and market confidence without overreacting and stifling the dynamism that underlies a strong economy. To examine this challenge, the Center for Business and Government's Regulatory Policy Program organized a conference in May 2004 on The Role of Government in Corporate Governance. The conference brought together government officials, business leaders, and academic researchers to discuss three fundamental public policy issues raised by recent corporate abuses. First, who should regulate corporate management - government …

The New Federal Regulation Of Corporate Governance, Jill E. Fisch

All Faculty Scholarship

No abstract provided.

Gaming Delaware, William W. Bratton

All Faculty Scholarship

No abstract provided.

Of Predatory Lending And The Democratization Of Credit: Preserving The Social Safety Net Of Informality In Small-Loan Transactions, Regina Austin

All Faculty Scholarship

No abstract provided.