Business Commons^™

Global Diffusion Of The Internet Xvi: The Role Of Economic Development And Firm Internationalization In Internet Business Practices, Jonathan W. Whitaker, Nigel Melville, Robert Plice, Jason Dedrick

Management Faculty Publications

Firms from emerging economies are rapidly becoming formidable competitors to established industry leaders from developed economies. Aside from anecdotal reports, there is little scholarly evidence concerning the operational details of how emerging economy firms are becoming competitive with developed economy firms. This article addresses the gap by building on the International Business, Strategy and Information Systems literature, and through an empirical analysis of original survey data for 468 firms across ten countries. We develop three primary empirical findings. First, despite the differences between emerging economy firms and developed economy firms, we find that emerging economy/high internationalization firms use marketing- and …

The Effect Of Institutional And Cultural Factors On The Perceptions Of Earnings Management, Marshall A. Geiger, Joyce Van Der Van Der Laan Smith

Accounting Faculty Publications

In this study we examine the effect of stakeholder orientation versus shareholder orientation, and the level of cultural secrecy on individuals’ perceptions of earnings management practices. Examining perceptions from 1,260 participants from 13 countries indicates that individuals from stakeholder-oriented institutional back- grounds were less accepting of earnings management, including both accounting earn- ings management and operating earnings management activities, than participants from shareholder-oriented institutional backgrounds, and that individuals from secretive cultures were more accepting of both types of earnings management activities. Our findings provide evidence of the anticipated perceptual differences across countries with respect to earnings management and suggest the …

Maintaining A Flexible Payout Policy In A Mature Industry: The Case Of Crown Cork And Seal In The Connelly Era, James Ang, Tom Arnold, C. Mitchell Conover, Carol Lancaster

Finance Faculty Publications

As related in these pages, the history of Crown Cork and Seal (hereafter known as “Crown”) provides us with a case of a company that stopped paying dividends but establish a disciplined share repurchase policy and did so for all the right reasons. Under family ownership in the 1950s, Crown lost market share and was on the brink of bankruptcy when its largest shareholder, John Connelly, was elected chairman of the board in 1957. Under John Connelly’s leadership, the firm restructured its operations and began a payout policy based solely on stock repurchases. During the Connelly era, the firm did …

Do Auditors Adjust Their Audit Plans Accordingly When They Encounter Material Automated Control Weaknesses?, Daniel D. Selby

Accounting Faculty Publications

Automated control weaknesses are associated with defects in computer hardware or computer applications. AU 319 does not require auditors to add professionals with specialized skills in automated controls (or IT audit specialists) to the audit engagement. Auditors may encounter a material automated control weakness and adjust their audit plan without the assistance of an IT audit specialist. Thus, auditors may not adjust their audit plan enough to gain an understanding of the material automated control weakness. This is an important problem for auditors because this problem may result in misstated financial statements and incorrect internal control opinions if auditors fail …

The Impact Of Corporate Social Disclosure On Investment Behavior: A Cross-National Study, Joyce Van Der Van Der Laan Smith, Ajay Adhikari, Rasoul H. Tondkar, Robert L. Andrews

Accounting Faculty Publications

We examine the impact of corporate social disclosure (CSD) on investment behavior in the US, Japan, France, and Sweden using stakeholder theory as the underlying framework for our analysis. We find that there is a significant difference in investors’ reactions to CSD across countries. Using a unique stakeholder scale we also find that these reactions are related to the investors’ stakeholder orientation. These findings provide insight into cross-national dif- ferences in the perceived relevance of CSD to investors.

Real Options Analysis And The Assumptions Of Corporate Finance: A Non-Technical Review, Tom Arnold, Richard L. Shockley Jr.

Finance Faculty Publications

This paper provides a non-technical presentation of the theoretical foundations of corporate financial decision making and the net present value (NPV) rule. Our objective is to show that the concepts of value and value creation arise from a single, unified framework that is firmly rooted in neoclassical microeconomic theory. This, in turn, allow us to demonstrate that the corporate valuation approach generically known as real options analysis is perfectly justifiable - without further qualification - in any situation when investors want managers to maximize NPV.

Healthcare Performance Improvement And High Reliability: A Best Practice Methodology, Randle D. Raggio, Kerry Johnson, Carole Stockmeier, Clarence S. Thomas Jr.

Marketing Faculty Publications

Healthcare Performance Improvement (HPI) improves reliability in healthcare by helping organizations achieve and sustain high performance outcomes in safety, quality, and satisfaction. Safety is the core value of the healthcare organization. Yet safety – protection from harm – doesn’t just happen. HPI provides a method for reducing the Serious Safety Event Rate through translating safety from a core value to specific behavior expectations of leaders, staff, and physicians. The HPI method and techniques are based on the best practices of high-reliability organizations (such as nuclear power and aviation) that get it right in safety. While healthcare has focused on traditional …

The Application Of Little's Law To Enrollment Management: Improving Student Persistence In Part-Time Degree Programs, Ellen M. Walk, Lewis A. Litteral

Management Faculty Publications

Little’s Law is applied to enrollment management in part-time degree programs. Using institutional data by program, on number of graduates per year, as well as number of credits taken and number of active students per semester, the calculated average time to graduation is compared to the average flow time predicted by Little’s Law. Despite significant variability among students who enter with varying transfer credits and take varying credits per semester, Little’s Law provides a simple model for measuring program growth trends, student productivity, and persistence to graduation. Implications for marketing, admissions, advising, course scheduling, and curriculum design are discussed.

Stakeholder Theory: The State Of The Art, Bidhan L. Parmar, R. Edward Freeman, Jeffrey S. Harrison, Et Al.

Management Faculty Publications

A variety of forces are changing the way managers and executives make sense of their responsibilities. Globalization has brought a larger variety of participants into contemporary businesses, technological innovation has increased the pace of change, and managers are discovering that their actions have the potential to affect a broader range of people all over the globe (Clement, 2005). Additionally, the pursuit of corporate objectives can be easily disrupted by the actions of unexpected groups. These challenges, driven by change and interconnectedness, reveal a need for managers and academics to re-think the traditional ways of conceptualizing the responsibilities of the firm. …

Managing For Stakeholders, Stakeholder Utility Functions, And Competitive Advantage, Jeffrey S. Harrison, Douglas A. Bosse, Robert A. Phillips

Management Faculty Publications

A firm that manages for stakeholders allocates more resources to satisfying the needs and demands of its legitimate stakeholders than what is necessary to simply retain their willful participation in the productive activities of the firm. Firms that exhibit this sort of behavior develop trusting relationships with stakeholders based on principles of distributional, procedural and interactional justice. Under these conditions, stakeholders are more likely to share nuanced information regarding their utility functions, which increases the ability of the firm to allocate its resources to areas that will best satisfy them (thus increasing demand for business transactions with the firm). In …

The Shifting Geography Of Competitive Advantage: Clusters, Networks And Firms, Mark Jenkins, Stephen Tallman

Management Faculty Publications

We consider the dynamics of knowledge-based sources of advantage as they move between geographical locations and multinational and other firm level networks using the specialist context of Formula 1 motor over a fifty nine year period. We suggest that shifts in competitive advantage are underpinned by the movement of both architectural and component knowledge at both the firm and cluster level, and in particular we suggest that isolated firms can both benefit from and add to cluster level knowledge. We conclude by suggesting ways in which MNEs can adapt their approach to both location and knowledge development in order to …

Markel International: Entry Into India, Roger R. Schnorbus, Littleton M. Maxwell

Robins School of Business White Paper Series, 1980-2022

William Stovin, the President and Chief Operating Officer of Markel International (MKLI) was pleased with the rapid growth of his company. Since its acquisition and formation as a subsidiary of the Markel Corporation in 2000, MKLI had written gross premiums of $641 million and produced operating profits of $52 million in fiscal 2009. This growth had come from expanding operations into Sweden, Spain, Canada, Singapore, and the U.K.

The challenge for MKLI was to develop an entry strategy into India. Many questions had to be answered including selecting a joint venture Indian partner (required in India) and determining a strategic …

The Experience Of Liberal Education, Edward L. Ayers

History Faculty Publications

Every college and university has built new capacity to deliver new experiences for students through study abroad, community service, career development, health and fitness, cultural understanding, or spiritual growth. They come to college to broaden their experience, and colleges and universities are the only places where people of all backgrounds, religions, ethnicities, classes, and politics come together to explore who they are and who they might become. Going to college is a defining time in their lives, and there is much more we can do to make it a liberating and transformative experience.