Business Commons^™

The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew H. Roper

Finance Faculty Research and Publications

We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in 59 countries. We analyze firms' marginal decisions of where to issue debt to investigate the influence of a comprehensive set of tax-related effects, including differences in personal and corporate tax rates, tax credit and exemption systems, and bi-lateral cross-country withholding taxes on interest and dividend payments. Our results show that differences in personal and corporate tax rates, the presence of dividend imputation or …

A Decision Model For E-Commerce-Enabled Partial Market Exit, Siddhartha Syam, Amit Bhatnagar

Management Faculty Research and Publications

Struggling retail chains often try to recover profitability by closing some of their stores. The challenge in this strategy lies in determining how many stores to close, as store exit has implications for both the customers and the supply chain. After a store closes, its customers are lost forever to the competition, unless there is a surviving open store nearby or an electronic alternative such as an e-store. From the supply chain perspective, after a store closes, its supporting regional distribution center is left with less business, and thus reduced viability. This paper develops a decision support model to study …

The Termination Of Subprime Hybrid And Fixed Rate Mortgages, Anthony Pennington-Cross, Giang Ho

Finance Faculty Research and Publications

Adjustable-rate and hybrid loans have been a larger component of subprime mortgage lending in the mortgage market than prime lending. The typical adjustable-rate loan in subprime is a hybrid of fixed and adjustable characteristics in which the first 2 years are fixed and the remaining 28 years adjustable. Hybrid loans terminate at elevated probabilities even before the first adjustment date. Hybrid loan terminations are sensitive to interest rates and teaser rates (payment shocks). Default probabilities increase dramatically when payment shocks are mixed with low or no equity in the home. This is the mixture of events that helped to trigger …

Understanding How Graphic Pictorial Warnings Work On Cigarette Packaging, Jeremy Kees, Scot Burton, J. Craig Andrews, John Kozup

Marketing Faculty Research and Publications

The 2009 Family Smoking Prevention and Tobacco Control Act requires cigarette packages to contain stronger warnings in the form of color, graphic pictures depicting the negative health consequences of smoking. The authors present results from a between-subjects experiment with more than 500 smokers that test (1) the effectiveness of pictorial warnings that vary in their graphic depiction of the warning and (2) an underlying mechanism proposed to drive potential effects of the manipulation of the graphic depiction. The findings indicate that more graphic pictorial warning depictions strengthen smokers’ intentions to quit smoking. Recall of warning message statements is reduced by …

Can Corrective Ad Statements Based On U.S. V. Philip Morris Usa Inc. Affect Consumer Beliefs About Smoking?, Andrea Heintz Tangari, Jeremy Kees, J. Craig Andrews, Scot Burton

Marketing Faculty Research and Publications

To comply with the court's ruling in U.S. v. Philip Morris USA Inc., tobacco companies must fund a large advertising campaign to 'correct' smoking beliefs about which consumers may have been misled as a result of past deceptive practices of tobacco companies. The authors use an ad copy experiment to examine (1) the effects of different versions of corrective ad statements that plaintiff intervenors submitted to the court on multi-item belief measures and (2) the impact of the ad versions and beliefs on general attitudes toward smoking across current adult smokers and nonsmokers. The tested ad versions include a …

The Integrative Justice Model For Marketing To The Poor: An Extension Of S-D Logic To Distributive Justice And Macromarketing, Gene R. Laczniak, Nicholas J. C. Santos

Marketing Faculty Research and Publications

As multinational corporations (MNCs) increasingly turn their attention to the fast growing markets of China, India, Brazil, and other developing areas, the question of fair treatment of consumers and other residents of those areas is more intensively debated than ever before. In essence, issues of "distributive justice" come to the fore, that is, are the benefits and burdens of rapid economic development being fairly allocated among the parties and stakeholders to the expanded economic transactions? In response to this question, the authors have postulated a detailed normative model for ethically marketing to impoverished consumer segments; they label their model, the …

Caritas In Veritate: Updating Catholic Social Teachings For Macromarketing And Business, Gene R. Laczniak, Thomas A. Klein

Marketing Faculty Research and Publications

In an effort to assess the latest thinking in the Roman Catholic Church on economic matters, this communications note briefly highlights the recent publication of a new encyclical by Pope Benedict XVI, Caritas in Veritate (Charity in Truth). Core ethical values, consistent with previous examples of Catholic Social Teaching (CST), are retained. However, some important nuances are added to previous treatments and certain points of emphasis are shifted to account for recent global developments. Key areas that relate to abiding marketing issues are spelled out and some brief commentary on matters of importance to macromarketing is offered.

Pay-Performance Sensitivity And Firm Size: Insights From The Mutual Fund Industry, George D. Cashman

Finance Faculty Research and Publications

I examine the ex ante decision to make an agent's pay-performance sensitivity an inverse function of organization size. I focus on mutual funds and their decision to use compensation contracts that reduce the advisor's marginal compensation as the fund grows (a declining-rate contract) over the dominant contract type, where marginal compensation is unrelated to fund size (a single-rate contract). I find evidence consistent with the view that declining-rate contracts are a mechanism to keep marginal compensation in line with the advisor's declining marginal product. Specifically, I find that funds with greater exposure to diseconomies of scale are more likely to …

The Impact Of Passing The Professional In Human Resources Exam On Early Career Success For Undergraduates Entering The Human Resource Field, Scott W. Lester, Jennifer Mencl, Cheryl Maranto, Kristina A. Bourne, Timothy Keaveny

Management Faculty Research and Publications

This study investigates the impact of passing the Professional in Human Resources (PHR) certification exam on the early career success of recent college graduates. Data were gathered from alumni of three Midwestern universities who earned an undergraduate degree in business administration (i.e., BBA) with a major in human resources. The survey was designed to measure early career success indicators including finding a job in the HR field, starting salary, and number of promotions. Results reveal that the probability of one’s first job after graduation being in human resources was significantly greater for those who had passed the PHR exam compared …

Proposed Financial Statement Changes: Reactions To The Fasb-Iasb Discussion Paper, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

The purpose of this study was to obtain the opinions of future users of the financial statements: current undergraduate and graduate students in accounting and academia. We found that the students show greater agreement with the proposed model than do the CPA’s. In addition, we found that academia, as represented by the Financial Accounting Standards Committee of the American Accounting Association has a number of concerns regarding timing, user learning issues and impediments to learning, objectives and terminology and categorizing activities and assets and liabilities.

Playing The Ratings Game: The Significance Of The Four Star Rating, Qianhua Ling, Daniel G. Neely

Accounting Faculty Research and Publications

This study examines a group of exemplary rated nonprofits, organizations rated four stars by Charity Navigator, to determine if this select group of charities exhibits characteristics associated with top charitable organizations, or if the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. Organizations rated four stars by Charity Navigator report a lower level of excess cash holdings, report lower levels of executive compensation and executive compensation that is less sensitive to performance, and are less financially vulnerable than their lower rated peers. The results shed light on the continuing …

A First Course In Entrepreneurship Fundamentals, Part I, Alex Stewart

Management Faculty Research and Publications

This two-part article offers ideas for teaching students who are interested in entrepreneurship but unprepared for the widely-taught business plan course. Their lack of preparation is due less to a lack of business knowledge than it is to an awareness of their life and career needs and of the realities of entrepreneurial careers. Course content ideas are presented to help these students develop competencies in four areas: self-understanding, knowledge of entrepreneurial careers, a realistic sense of what ventures would work for them, and business-relevant creativity.

Psychological Contract Breach, Perceived Discrimination, And Ethnic Identification In Hispanic Business Professionals, Robert Gregory Delcampo, Kristie M. Rogers, Kathryn J. L. Jacobson

Management Faculty Research and Publications

No abstract provided.

The Role Of Geographic Proximity And Industrial Structure In Metropolitan Area Business Cycles, Michael Hollar, Anthony Pennington-Cross, Anthony Yezer

Finance Faculty Research and Publications

Measurement and prediction of aggregate economic fluctuations at the region, state, and metropolitan area level is a major challenge. As data quality and analytical techniques have improved, the analysis of coincident economic cycle indicators (CEI) has progressed from national to regional to state levels. This paper continues the trend of geographic disaggregation by constructing and analyzing CEI at the MSA level. The theoretical advantage of MSA level indexes is that they reflect labor market areas. Given lack of quarterly economic time series at the MSA level, we construct a new variable, the EPI (export price index). The EPI is an …

Changing The Course: Applying Sarbanes-Oxley To The Classroom, Maureen Francis Mascha, Michael D. Akers

Accounting Faculty Research and Publications

No abstract provided.

Marquette's Successful Harley Partnership Provides Smooth Ride For All, Robert Deahl

College of Professional Studies Faculty Research and Publications

No abstract provided.

“Brick & Mortar” Education And “Real World” Experience: Assessing Hrm Alumni Perceptions Of Their Early Professional Development, Jennifer Mencl, Scott W. Lester, Kristina A. Bourne, Cheryl Maranto

Management Faculty Research and Publications

In this research we examined the extent to which three distinct human resource management (HRM) undergraduate programs provide coverage of the 13 core content areas specified by the Society for Human Resource Management (SHRM) and explored the usefulness of various ways of learning including their undergraduate coursework, an internship, and previous work experience as related to early professional development. Based on perceptions of HRM alumni, the findings reveal that the three curricula provided significant differences in levels of proficiency in seven of the core areas and in perceived usefulness of the learning methods. Implications for HRM curriculum development and students’ …

Are Consumers Disadvantaged Or Vulnerable? An Examination Of Consumer Complaints To The Better Business Bureau, Dennis Garrett, Peter Toumanoff

Marketing Faculty Research and Publications

Questions have emerged recently about the appropriateness of defining disadvantaged consumers based on their membership in certain demographic categories, such as income, age, education, and race. This study assessed whether these traditional classifications are useful for understanding consumer complaining behavior with the Better Business Bureau. Results of analysis of more than 24,000 consumer complaints filed with a local BBB office during a 13-year period do not provide consistent support for this disadvantaged consumer perspective. Instead, the emerging vulnerable consumer perspective may provide a more promising basis for future research.

The Influence Of Foreign Operations And Their Disclosure On Earnings Quality, Sixian Yang, Fang Hu, Don Giacomino

Accounting Faculty Research and Publications

This paper investigates the influence of foreign operations and their financial disclosure on earnings quality in terms of accounting conservatism (timely recognizing losses). In a large (7,311 corporate years) sample of U.S. corporations, we find earnings of firms with multinational operations (MNCs) tend to be of lower quality and are reported less conservatively than those without foreign operations (domestic firms). Further, by looking at the geographic segment information disclosed by MNCs, we find that earnings conservatism gets improved if a MNC reports “clean” segment information of foreign operations; wherein operating results of MNC are broken down by geographic regions (continent …

Organizational Support And Contract Fulfillment As Moderators Of The Relationship Between Preferred Work Status And Performance, Jennica R. Webster, Gary A. Adams

Management Faculty Research and Publications

Purpose

The purpose of this study was to examine organizational context variables as moderators of the relationship between preferred work status and job performance. The moderators were perceived organizational support (POS) and psychological contract fulfillment.

Design/Methodology/Approach

Survey data was collected from 164 participants working in a health and fitness organization. These participants ranged in age from 18 to 79 years old (M = 40, SD = 12.5) and held various positions including middle managers, clerical workers, maintenance workers, and sports trainers.

Findings

The relationship between preferred work status and extra-role performance was negative when POS was higher but not …

Upheaval In The Boardroom: Outside Director Public Resignations, Motivations, And Consequences, Michael Dewally, Sarah Peck

Finance Faculty Research and Publications

We investigate the motives and circumstances surrounding outside directors' decisions to publicly announce their board resignations. Directors who leave "quietly" are in their mid-sixties and professional directors, i.e., retirees, who are retiring entirely from professional life. Directors who announce their resignation are in their mid-fifties and active professionals. Half the time they say they are leaving because they are "busy." These directors leave from firms with some weakness in their performance, but with no overt manifestations of cronyism such as excessive compensation of either the CEO or directors. The other half of the time directors leave while publicly criticizing the …

The Duration Of Foreclosures In The Subprime Mortgage Market: A Competing Risks Model With Mixing, Anthony Pennington-Cross

Finance Faculty Research and Publications

This paper examines what happens to mortgages in the subprime mortgage market once foreclosure proceeding are initiated. A multinomial logit model that allows for the interdependence of the possible outcomes or risks (cure, partial cure, paid off, and real estate owned) through the correlation of associated unobserved heterogeneities is estimated. The results show that the duration of foreclosures is impacted by many factors including contemporaneous housing market conditions, the prior performance of the loan (prior delinquency), and the state-level legal environment.

A Comparative Analysis Of The Bootstrap Versus Traditional Statistical Procedures Applied To Digital Analysis Based On Benford’S Law, Ikseon Suh, T. Christopher Headrick

Accounting Faculty Research and Publications

No abstract provided.

An Examination Of Underreporting Of Time And Premature Signoffs By Internal Auditors, Qianhua Ling, Michael D. Akers

Accounting Faculty Research and Publications

The passage of the Sarbanes-Oxley Act of 2002 (SOX) heightened the importance of internal controls and accordingly, a key control - the internal audit junction. Consequently, management and external auditors have both increased their reliance on internal auditors' work. While there has been considerable research regarding the impact of the underreporting of time and premature sign-offs on the external audit, there has only been one study that has examined the impact of these two items on the internal auditors' work. Such research is dated (1994) and prior to the passage of SOX. We surveyed members of the Institute of Internal …

Foundations In Wisconsin: A Directory [29th Ed. 2010], Marquette University - Funding Information Center, Mary C. Frenn, Melanie Baier, Jeremy Blackwood, Anne Carpenter, Sarah Martin, Greg Sikora

Foundations in Wisconsin: A Directory

The 2010 production of Foundations in Wisconsin marks the 29th edition of the print directory and the 10th anniversary of the online version (www.wifoundations.org). The directory is designed as a research tool for grantseekers interested in locating information on private, corporate, and community foundations registered in Wisconsin. Each entry in this new edition has been updated or reviewed to provide the most current information available. Most of the data was drawn from IRS 990-PF tax returns filed by the foundations. Additional information was obtained from surveys, foundation Web sites, annual reports, and newsletters.

The nation’s economic downturn continued to have …

Segmentation In Social Marketing: Insights From The European Union’S Multi-Country, Antismoking Campaign, Gianfranco Walsh, Louise M. Hassan, Edward Shiu, J. Craig Andrews, Gerard Hastings

Marketing Faculty Research and Publications

Purpose – In 2005, the European Union launched a four-year antismoking television advertising campaign across its 25 Member States. This study aims to evaluate the second and third years (2006 and 2007) of the campaign based on telephone interviews with over 24,000 consumers (smokers, non-smokers, and ex-smokers).

Design/methodology/approach – The study focuses on smokers and examines the potential for using segmentation and targeting in informing the campaign. Three important factors are used to identify clusters: attitude toward the campaign; comprehension of the campaign; and inclination to think responsibly about their smoking behaviour.

Findings – Cluster analyses identify three distinct and …

Technology And Its Crm Implications In The Shipping Industry, Srinivas Durvasula, Steven Lysonski, Subhash Mehta

Marketing Faculty Research and Publications

This paper investigates the relative importance of service factors such as technology and facilities, how service providers are rated on those factors, and their relationship to customer satisfaction in a B2B environment. The results show that in the ocean freight shipping industry, customers placed more importance on factors such as efficiency in complaint handling, prompt availability of delivery information as compared to the use of latest equipment and technology. Most importantly, customers who had a more favourable evaluation of shipping companies on these factors also experienced a higher level of service satisfaction. Implications of these results for the use of …

Diagnosing Service Quality In Retailing: The Case Of Singapore, Srinivas Durvasula, Steven Lysonski

Marketing Faculty Research and Publications

This paper examines the service quality perceptions of consumers towards retailers in Singapore. We applied SERVQUAL, a popular measure of service quality to a sample of 172 consumers to assess service quality perceptions, expectations and gaps in service quality. We first examined the dimensionality and reliability of this scale. Subsequently, analysis by various demographic groups revealed significant gaps in service quality; the gaps in quality were much higher for some service quality dimensions than for others. The implications of these results for Singapore retailers and retail entrepreneurs are then presented along with future research directions.

Formation And Consequences Of Going Concern Opinions: A Review Of The Literature, Jodi L. Gissel

Accounting Faculty Research and Publications

Shortly after the passage of SAS No. 59, Asare (1990) summarized the evolution of research on the going concern opinion (GCO) in order to evaluate the Auditing Standards Board's assumptions regarding the signals sent to the market via the GCO. Over the past twenty years, researchers have continued to investigate the importance of GCOs. The authors objectives are to bring current the evolution of standards, regulations, and literature concerning GCOs, to synthesize a body of research that still presents inconsistent findings, and to suggest future research that could further our understanding of GCO formation and consequences. Given the large volume …

Development Of An Occupational Embeddedness Measure, Gary A. Adams, Jennica R. Webster, Danelle M. Buyarski

Management Faculty Research and Publications

Purpose

The purpose of this paper is to develop a measure of occupational embeddedness.

Design/methodology/approach

The construct of occupational embeddedness was defined in terms of the forces that bind people to their occupation. Then a four-part study was conducted to develop a measure of it.

Findings

In Part 1, items were developed and judgmental evidence for their content validity was generated. In Part 2 the initial psychometric characteristics were examined. The results supported the internal consistency reliability and factor structure of the measure. In Part 3, Part 2 was replicated and showed that occupational embeddedness had a negative relationship to …