Digital Commons Network^™

Improving Online Social Presence Through Asynchronous Video, Jered Borup, Richard E. West, Charles R. Graham

Faculty Publications

Online learning has become a reality for many students in higher education. Unfortunately, something that has also become a reality is a sense of isolation in online courses, and Moore (1980) has warned that students' sense of distance can threaten their ability to learn. The community of inquiry framework (Garrison, Anderson, & Archer, 2000) has provided insight into ways that online interactions can improve students' and instructors' social presence and learning. Emerging video technologies may be able to improve these interactions and thus more easily support the development of communities of inquiry. In this study we interviewed students in three …

Internal Audit Outsourcing And The Risk Of Misleading Or Fraudulent Financial Reporting: Did Sarbanes-Oxley Get It Wrong?, Douglas F. Prawitt, Nathan Y. Sharp, David A. Wood

Faculty Publications

The Sarbanes-Oxley Act of 2002 (SOX) represents a far-reaching legislative attempt to improve the quality of financial reporting in the United States in response to the major accounting frauds of the late 1990s and early 2000s (Klein 2003). A significant change imposed by SOX was to prohibit the outsourcing of internal audit services to firms’ external auditors.1 Competing academic arguments suggest that this ban will either improve or worsen financial reporting quality. The knowledge spillover argument suggests that by both performing the external audit and providing nonaudit services, auditors improve overall audit quality through a deeper understanding of the client …

Publication Benchmarking Data Based On Faculty Promoted At The Top 75 Us Accounting Research Institutions, Steven M. Glover, Douglas F. Prawitt, Scott L. Summers, David A. Wood

Faculty Publications

The primary purpose of this study is to update the Glover et al. (2006) publication benchmarking study by providing benchmarking statistics of faculty promoted to associate and/or full professor from 2004 to 2009. We also extend Glover et al. (2006) by examining new benchmarking metrics and by investigating publication productivity differences between studies. Our results indicate that, on average, faculty promoted from 2004 to 2009 had more publications in leading accounting journals at the time of promotion than faculty promoted from 1995 to 2003. We explore possible explanations for the increase in publication productivity. We find that increases in the …

Investor Information Demand: Evidence From Google Searches Around Earnings Announcements, Michael S. Drake, Darren T. Roulstone, Jacob Thornock

Faculty Publications

The objective of this study is to investigate factors that influence investor information demand around earnings announcements and to provide insights into how variation in information demand impacts the capital market response to earnings. The Internet is one channel through which public information is disseminated to investors and we propose that one way that investors express their demand for public information is via Google searches. We find that abnormal Google search increases about two weeks prior to the earnings announcement, spikes markedly at the announcement, and continues at high levels for a period after the announcement. This finding suggests that …

A Re-Examination Of Analysts’ Superiority Over Time-Series Forecasts Of Annual Earnings, Mark T. Bradshaw, Michael S. Drake, James N. Myers, Linda A. Myers

Faculty Publications

We re-examine the widely held belief that analysts‟ earnings per share (EPS) forecasts are superior to random walk (RW) time-series forecasts. We investigate whether analysts‟ annual EPS forecasts are superior, and if so, under what conditions. Simple RW EPS forecasts are more accurate than analysts‟ forecasts over longer horizons, for smaller or younger firms, and when analysts forecast negative or large changes in EPS. We also compare the accuracy of a third forecast of longer-term earnings based on a naïve extrapolation of analysts‟ one-year-ahead forecasts. Surprisingly, this naïve extrapolation provides the most accurate estimate of long-term (two- and three-year-ahead) earnings. …

Has The Regulation Of Pro Forma Reporting In The Us Changed Investors’ Perceptions Of Pro Forma Earnings Disclosures?, Dirk E. Black, Ervin L. Black, Theodore E. Christensen, William G. Heninger

Faculty Publications

We explore whether investors’ perceptions of pro forma earnings numbers have changed following the regulation of pro forma reporting imposed by the Sarbanes-Oxley Act of 2002 (SOX). First, we find that investors appear to pay more attention to pro forma earnings disclosures in the post-SOX period, consistent with the notion that they perceive that regulation generally renders these disclosures more credible. Second, the results indicate that investors discount aggressive pro forma earnings reports in both periods. However, they appear to discount at least some potentially misleading pro forma earnings disclosures more in the post- SOX period. Finally, our results imply …

Small-Firm Uniqueness And Signaling Theory, James C. Brau, J. Troy Carpenter

Faculty Publications

The purpose of this paper is two-fold. First, we develop a theory of small firm uniqueness. Instead of using an exogenous definition of firm size typical of the extant literature, we allow firms

Did Securitization Affect The Cost Of Corporate Debt?, Taylor Nadauld, Michael S. Weisbach

Faculty Publications

This paper investigates whether the securitization of corporate bank loan facilities had an impact on the price of corporate debt. Our results suggest that loan facilities that are subsequently securitized are associated with a 17 basis point lower spread than that of facilities that are not subsequently securitized. We consider facility characteristics that are associated with the likelihood of securitization and estimate the extent to which these characteristics are related to spreads. We document that Term Loan B facilities, facilities of B-rated firms, and facilities originated by banks that originate CLOs are securitized more frequently than other facilities. Spreads on …

Evaluating Journal Quality And The Association For Information Systems (Ais) Senior Scholars’ Journal Basket Via Bibliometric Measures: Do Expert Journal Assessments Add Value?, Paul Benjamin Lowry, Gregory D. Moody, James Gaskin, Dennis F. Galletta, Sean L. Humpherys, Jordan B. Barlow, David W. Wilson

Faculty Publications

Information systems (IS) journal rankings and ratings help scholars focus their publishing efforts and are widely used surrogates for judging the quality of research. Over the years, numerous approaches have been used to rank IS journals, approaches such as citation metrics, school lists, acceptance rates, and expert assessments. However, the results of these approaches often conflict due to a host of validity concerns. In the current scientometric study, we make significant strides toward correcting for these limitations in the ranking of mainstream IS journals. We compare expert rankings to bibliometric measures such as the ISI Impact Factor™, the h-index, and …

Open Access To Legal Scholarship: Dropping The Barriers To Discourse And Dialogue, Richard A. Danner

Faculty Scholarship

This article focuses on the importance of free and open access to legal scholarship and commentary on the law. It argues that full understanding of authoritative legal texts requires access to informed commentary as well as to the texts of the law themselves, and that free and open access to legal commentary will facilitate cross-border dialogue and foster international discourse in law. The paper discusses the obligations of scholars and publishers of legal commentary to make their work as widely accessible as possible. Examples of institutional and disciplinary repositories for legal scholarship are presented, as are the possible impacts of …

In-House Counsel’S Role In The Structuring Of Mortgage-Backed Securities, Steven L. Schwarcz, Shaun Barnes, Kathleen G. Cully

Faculty Scholarship

The authors introduce the financial crisis and the role played by mortgage-backed securities. Then describe the controversy at issue: whether, in order to own and enforce the mortgage loans backing those securities, a special-purpose vehicle “purchasing” mortgage loans must take physical delivery of the notes and security instruments in the precise manner specified by the sale agreement. Focusing on this controversy, the authors analyze (i) the extent, if any, that the controversy has merit; (ii) whether in-house counsel should have anticipated the controversy; and (iii) what, if anything, in-house counsel could have done to avert or, after it arose, to …

Shadow Banking, Financial Markets, And The Real Estate Sector, Steven L. Schwarcz

Faculty Scholarship

This is a relatively brief “firestarter” talk prepared by the author for the World Economic Forum’s Industry Partnership Strategists Meeting 2012 (held on October 3, 2012) on transformation of the real estate sector in light of ongoing shifts in the financial markets and broader global trends.

Use Patents, Carve-Outs, And Incentives — A New Battle In The Drug-Patent Wars, Arti K. Rai

Faculty Scholarship

The Hatch-Waxman Act of 1984 aims to strike a balance between the innovation incentives provided by patents and the greater consumer access provided by low-cost generic drugs. The legislation, which relies in part on an explicit link between the FDA drug approval process and the U.S. patent system, has been controversial, particularly because of the ways in which firms producing brand-name drugs have exploited that link to delay market entry of generics as long as possible. Voluminous scholarship has focused on so-called "pay-for-delay" settlements of patent litigation between brand name and generic firms.

In contrast, this Perspective uses the lens …

The North Carolina Racial Justice Act: An Essay On Substantive And Procedural Fairness In Death Penalty Litigation, Neil Vidmar

Faculty Scholarship

No abstract provided.

The Pragmatic Court: Reinterpreting The Supreme People’S Court Of China, Taisu Zhang

Faculty Scholarship

This Article examines the institutional motivations that underlie several major developments in the Supreme People's Court of China's recent policy-making. Since 2007, the SPC has sent off a collection of policy signals that escapes sweeping ideological labeling: it has publically embraced a populist view of legal reform by encouraging the use of mediation in dispute resolution and popular participation in judicial policy-making, while continuing to advocate legal professionalization as a long-term policy objective. It has also eagerly attempted to enhance its own institutional competence by promoting judicial efficiency, simplifying key areas of civil law, and expanding its control over lower …