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Full-Text Articles in Business

A Theoretical Analysis Of Iso9000 Suppliers, Chiaho Chang Dec 2013

A Theoretical Analysis Of Iso9000 Suppliers, Chiaho Chang

Department of Accounting and Finance Faculty Scholarship and Creative Works

This paper looks at the economic behavior of suppliers under different ISO9000 standards, especially that of ISO9001 and ISO9002. Considering the information asymmetry, given the same quality provided, the cost-reducing efforts of the ISO9001 SUPPLIER and ISO9002 SUPPLIER under a fixed, cost-plus contract are investigated. The result shows that the cost-reducing effort of the ISO9002 SUPPLIER is in line with the main manufacturer's expectations while the ISO9001 SUPPLIER is able to keep some of the information rent and exerts less effort. The bargaining power of the ISO9001 SUPPLIER is also stronger relative to that of the ISO9002 SUPPLIER. It is …


Management Fee Provisions And Performance In The U.S. Mutual Fund Industry, Brett Anthony Averso Dec 2013

Management Fee Provisions And Performance In The U.S. Mutual Fund Industry, Brett Anthony Averso

Honors Scholar Theses

This paper examines the extent to which generous portfolio management compensation is commensurate to long-term mutual fund performance, over the course of five to ten years. If the relationship between the compensation provision and historical performance exists, the maximum percent management fees as disclosed on the fund prospectuses could be employed as a covariance factor for a model of portfolio pricing. The results indicate that there is relationship between portfolio net assets and this compensation provision. The results do not support the hypothesis that a relationship exists between the size of the maximum percent management fee and long term fund …


The Sentencing Structure Of White-Collar Crime, Catherine Reeves Dec 2013

The Sentencing Structure Of White-Collar Crime, Catherine Reeves

Mahurin Honors College Capstone Experience/Thesis Projects

Corporate fraud is an all-too-common element in our society today. Unfortunately, many of those convicted of fraud end up with a seemingly light jail sentence. A possible explanation for this is that the judges could have many subconscious reasons to give lighter sentences in these cases than they do with other more violent cases. Since there are no strict guidelines for the sentencing of these “white-collar criminals,” the judge’s personal views can play a significant role. Many of the laws and guidelines for determining the sentence in fraud cases have stemmed from the corporate scandals of the early 2000’s, but …


Escaping Entity-Centrism In Financial Services Regulation, Anita Krug Dec 2013

Escaping Entity-Centrism In Financial Services Regulation, Anita Krug

All Faculty Scholarship

In the ongoing discussions about financial services regulation, one critically important topic has not been recognized, let alone addressed. That topic is what this Article calls the “entity-centrism” of financial services regulation. Laws and rules are entity-centric when they assume that a financial services firm is a stand-alone entity, operating separately from and independently of any other entity. They are entitycentric, therefore, when the specific requirements and obligations they comprise are addressed only to an abstract and solitary “firm,” with little or no contemplation of affiliates, parent companies, subsidiaries, or multi-entity enterprises. Regulatory entity-centrism is not an isolated phenomenon, as …


Think Your Business Is Ready For Internationalization?, Michael Lee, Michael Wright Dec 2013

Think Your Business Is Ready For Internationalization?, Michael Lee, Michael Wright

Accountancy Faculty Publications and Presentations

Many small and medium-size enterprises that reach a relative saturation point in their domestic market look toward the global stage as a way to grow into a multinational corporation. This is known as internationalization, the process of increasing business involvement in international operations. Internationalization requires considerable resources and coordination, and it is fraught with business risks.


Characteristics Of Failed U.S. Commercial Banks: An Exploratory Study, Fatima Alali, Silvia Romero Dec 2013

Characteristics Of Failed U.S. Commercial Banks: An Exploratory Study, Fatima Alali, Silvia Romero

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study uses survival analysis to determine how early the indications of bank failure can be observed. We find that banks with high loan to asset and high personal loan to assets ratios are more likely to survive. Older banks and banks with high real estate and agricultural loans, loan loss allowance, loan charges off and non-performing loans to assets ratio are more likely to fail. It is possible to predict survival functions of <50% for failed banks, 3years or less before failure. Moreover, we find that most of the variables present a behaviour that departs from Benford's Law.


Accounting Challenge App: An Interview With Ceeman Champions 2013, Poh Sun Seow, Suay Peng Wong Dec 2013

Accounting Challenge App: An Interview With Ceeman Champions 2013, Poh Sun Seow, Suay Peng Wong

Research Collection School Of Accountancy

No abstract provided.


Financial Reporting Quality Of Chinese Reverse Merger Firms: The Reverse Merger Effect Or The China Effect?, Kun-Chih Chen, Qiang Cheng, Ying Chou Lin, Yu-Chen Lin, Xing Xiao Dec 2013

Financial Reporting Quality Of Chinese Reverse Merger Firms: The Reverse Merger Effect Or The China Effect?, Kun-Chih Chen, Qiang Cheng, Ying Chou Lin, Yu-Chen Lin, Xing Xiao

Research Collection School Of Accountancy

In this paper, we examine why Chinese reverse merger (RM) firms have lower financial reporting quality. We find that while U.S. RM firms have similar financial reporting quality as matched U.S. IPO firms, Chinese RM firms exhibit lower financial reporting quality than Chinese ADR firms. We further find that Chinese RM firms exhibit lower financial reporting quality than U.S. RM firms. These results indicate that the use of RM process is associated with poor financial reporting quality only in firms from China, where the legal enforcement is weaker than U.S. In addition, we find that compared to Chinese ADR firms, …


Survey On The Role Of Investor Relations In The Modern Day Corporation, Andrew Lee Dec 2013

Survey On The Role Of Investor Relations In The Modern Day Corporation, Andrew Lee

Research Collection School Of Accountancy

The Investors Relations Professionals Association (Singapore) (IRPAS), incollaboration with the School of Accountancy at Singapore Management University(SMU) and the Singapore Exchange (SGX), embarked on this study in March 2013with the objective of achieving a better understanding of the role of investor relations(IR) in today’s modern corporation as well as the role of IRPAS in further developingthe investor relations profession in Singapore. The study aimed to provide insights into the structure and organisation of the IRfunction as well as the roles and responsibilities of Investor Relations Officers (IROs)in SGX-listed companies. An online questionnaire survey was administered in August 2013 to the …


Survey On The Role Of Investor Relations In The Modern Day Corporation, Andrew Lee, Jiwei Wang Dec 2013

Survey On The Role Of Investor Relations In The Modern Day Corporation, Andrew Lee, Jiwei Wang

Research Collection School Of Accountancy

In March 2013, the Investors Relations Professionals Association (Singapore) (IRPAS), in collaboration with the School of Accountancy at Singapore Management University (SMU) and the Singapore Exchange (SGX), embarked on this study with the objective of achieving a better understanding of the role of investor relations. (IR) in today’s modern corporation as well as the role of IRPAS in further developing the investor relations profession in Singapore. The study aims to provide insights into the structure and organisation of the IR function in Singapore listed companies as well as the roles and responsibilities of Investor Relations Officers (IROs) in these organisations. …


Counterparty Responses To Managerial Overconfidence, Paul Hribar, Jaewon Kim, Ryan Wilson, Holly I-Hwa Yang Dec 2013

Counterparty Responses To Managerial Overconfidence, Paul Hribar, Jaewon Kim, Ryan Wilson, Holly I-Hwa Yang

Research Collection School Of Accountancy

Existing research links CEO overconfidence to a number of corporate decisions including overinvestment, external acquisitions, and earnings management. These findings raise the question of whether counterparties distinguish between differences in CEOs, and how they respond to it. We focus on two key counterparties – auditors and credit rating agencies – and examine whether audit fees and credit ratings are affected by CEO overconfidence. We find a positive association between audit fees and CEO overconfidence, suggesting that auditors exert more effort or increase the risk premium associated with auditing firms with more overconfident CEOs. We also find a significant negative association …


Management Forecast Credibility And Underreaction To News, Jeffrey Ng, Irem Tuna, Rodrigo Verdi Dec 2013

Management Forecast Credibility And Underreaction To News, Jeffrey Ng, Irem Tuna, Rodrigo Verdi

Research Collection School Of Accountancy

In this paper, we first document evidence of underreaction to management forecast news. We then hypothesize that the credibility of the forecast influences the magnitude of this underreaction. Relying on evidence that more credible forecasts are associated with a larger reaction in the short window around the management forecasts and a smaller post-management forecast drift in returns, we show that the magnitude of the underreaction is smaller for firms that provide more credible forecasts. Our paper contributes to the literature by providing out-of-sample evidence of the drift in returns documented in the post-earnings-announcement drift literature, with the credibility of the …


Price Shocks, News Disclosures, And Asymmetric Drifts, Hai Lu, Kevin Wang, Xiaolu Wang Dec 2013

Price Shocks, News Disclosures, And Asymmetric Drifts, Hai Lu, Kevin Wang, Xiaolu Wang

Research Collection School Of Accountancy

Motivated by investor disagreement and corporate disclosure literatures, we examinehow stock price shocks affect future stock returns. We find that both large short-termprice drops and hikes are followed by negative abnormal returns over the subsequent year,consistent with the conjecture that price shocks are useful indicators of inter-temporalspikes in investor disagreement and investor opinion converges gradually. The asymmetricdrifts, return continuation for negative price shocks versus return reversal for positive ones,are in sharp contrast to the general findings of symmetric drifts in corporate event studies.Moreover, price shocks associated with public news events are followed by significantlyweaker downward drifts, suggesting that news disclosures …


The Role Of Investor Relations In The Modern-Day Corporation, Andrew Lee, Jiwei Wang Dec 2013

The Role Of Investor Relations In The Modern-Day Corporation, Andrew Lee, Jiwei Wang

Research Collection School Of Accountancy

No abstract provided.


Lack Of Timeliness, Noise And Transitory Components In Earnings As Explanations For The Apparent Decline In The Value Relevance Of Earnings, L. Dwight Sneathen Dec 2013

Lack Of Timeliness, Noise And Transitory Components In Earnings As Explanations For The Apparent Decline In The Value Relevance Of Earnings, L. Dwight Sneathen

School of Accountancy Faculty Research and Publications

Prior studies identify three factors that contribute to the low contemporaneous association between returns (prices) and earnings: lack of timeliness of earnings capturing value relevant information, noise in earnings, and transitory elements in earnings. This study seeks to identify whether these factors contribute to the observed inter-temporal decline in the contemporaneous association between returns (prices) and earnings documented in recent literature. Prior studies do not explicitly examine the affect of these factors on the inter-temporal decline, and the extant evidence is mixed. Empirical evidence presented here indicates that lack of timeliness of earnings and value-irrelevant noise in earnings have increased …


Economic Effects Of Sox Section 404 Compliance: A Corporate Insider Perspective, Cindy Alexander, Scott Bauguess, Gennaro Bernile, Alex Lee, Jennifer Marietta-Westberg Dec 2013

Economic Effects Of Sox Section 404 Compliance: A Corporate Insider Perspective, Cindy Alexander, Scott Bauguess, Gennaro Bernile, Alex Lee, Jennifer Marietta-Westberg

Research Collection Lee Kong Chian School Of Business

We use survey responses from 2,901 corporate insiders to assess the costs and benefits of compliance with Section 404 of the Sarbanes-Oxley Act. The majority of respondents recognize compliance benefits, but they do not perceive these benefits to outweigh the costs, on average. This is particularly true among smaller companies where the start-up costs are proportionately larger. However, the perceived efficiency of compliance increases with auditor attestations, years of compliance experience, and after the remediation of a material weakness. Notably, the perceived effects of compliance depend largely on firm complexity, but are mostly unrelated to firm governance structure.


Loan Loss Reserves, Regulatory Capital, And Bank Failures: Evidence From The Recent Economic Crisis, Jeffrey Ng, Sugata Roychowdhury Nov 2013

Loan Loss Reserves, Regulatory Capital, And Bank Failures: Evidence From The Recent Economic Crisis, Jeffrey Ng, Sugata Roychowdhury

Research Collection School Of Accountancy

No abstract provided.


Linking Effective Whole Life Cycle Cost Data To Parametric Building Information Models Using Bim Technologies, Dermot Kehily, Trevor Woods, Fiacra P. Mcdonnell Nov 2013

Linking Effective Whole Life Cycle Cost Data To Parametric Building Information Models Using Bim Technologies, Dermot Kehily, Trevor Woods, Fiacra P. Mcdonnell

Conference papers

Abstract ̶ This paper demonstrates the capabilities of BIM (Building Information Modeling) in leveraging Whole Life Cycle Cost (WLCC) data requirements to perform WLCC calculations and produce WLLC estimates. The research determines the extent to which WLCC data, such as time, interest rates, escalation rates and real costs can be attached to parametric BIM data to be used effectively to create speedier and more accurate real-time WLLC analysis. Without incorporating WLCC data in the BIM, a complete picture of a construction project’s WLCC cannot be formed from the default outputs of the model. BIM 5D applications such as CostX utilise …


60% Cash Payout Or 400% Pic Claim? Which Is Better? (Part 2 ), Teng Aun Khoo, Clement Kai Guan Tan Nov 2013

60% Cash Payout Or 400% Pic Claim? Which Is Better? (Part 2 ), Teng Aun Khoo, Clement Kai Guan Tan

Research Collection School Of Accountancy

How an organisation can best optimise the benefits of the Productivity and innovation Credit (PIC) scheme offered by the Singapore government to boost productivity and innovation. Part 1 as published September 2013.


Zombie Board: Board Tenure And Firm Performance [Summary Of Paper], Sterling Huang Nov 2013

Zombie Board: Board Tenure And Firm Performance [Summary Of Paper], Sterling Huang

Research Collection School Of Accountancy

In my paper, Zombie Boards: Board Tenure and Firm Performance, which was recently made publicly available on SSRN, I empirically investigate how board tenure is related to firm performance and corporate decisions, holding other firm, CEO, and board characteristics constant. I find that board tenure has an inverted U-shaped relation with firm value, and that this curvilinear relation is reflected in M&A performance, financial reporting quality, corporate strategies and innovation, executive compensation, and CEO replacement. The results indicate that, for firms with short-tenured boards, the marginal effect of board learning dominates entrenchment effects, whereas for firms that have long-tenured …


Clagett, John Gay, 1818-1899 (Mss 481), Manuscripts & Folklife Archives Oct 2013

Clagett, John Gay, 1818-1899 (Mss 481), Manuscripts & Folklife Archives

MSS Finding Aids

Finding aid only for Manuscripts Collection 481. Account book of John Gay Clagett, Rough Springs, Grayson County, Kentucky, primarily for sales of agricultural products. Includes business correspondence and loose items found therein.


Fairview Cemetery - Bowling Green, Kentucky (Sc 2771), Manuscripts & Folklife Archives Oct 2013

Fairview Cemetery - Bowling Green, Kentucky (Sc 2771), Manuscripts & Folklife Archives

MSS Finding Aids

Finding aid only for Manuscripts Small Collection 2771. Cash book of Fairview Cemetery, Bowling Green, Kentucky, recording payments for labor and other operating expenses.


The "Play-Out" Effect And Preference Reversals: Evidence For Noisy Maximization, Joyce E. Berg, John Dickhaut, Thomas A. Rietz Oct 2013

The "Play-Out" Effect And Preference Reversals: Evidence For Noisy Maximization, Joyce E. Berg, John Dickhaut, Thomas A. Rietz

Accounting Faculty Articles and Research

In this paper, we document a "play-out" effect in preference reversal experiments. We compare data where preferences are elicited using (1) purely hypothetical gambles, (2) played-out, but unpaid gambles and (3) played-out gambles with truth-revealing monetary payments. We ask whether a model of stable preferences with random errors (e.g., expected utility with errors) can explain the data. The model is strongly rejected in data collected using purely hypothetical gambles. However, simply playing-out the gambles, even in the absence of payments, shifts the data pattern so that noisy maximization is no longer rejected. Inducing risk preferences using a lottery procedure, using …


Human Economic Choice As Costly Information Processing, John Dickhaut, Vernon L. Smith, Baohua Xin, Aldo Rustichini Oct 2013

Human Economic Choice As Costly Information Processing, John Dickhaut, Vernon L. Smith, Baohua Xin, Aldo Rustichini

Accounting Faculty Articles and Research

We develop and test a model that provides a unified account of the neural processes underlying behavior in a classical economic choice task. The model describes in a stylized way brain processes engaged in evaluating information provided by the experimental stimuli, and produces a consistent account of several important features of the decision process in different environments: e.g., when the probability is specified or not (ambiguous choices). These features include the choices made, the time to decide, the error rate in choice, and the patterns of neural activation. The model predicts that the further two stimuli are from each other …


A Summary Of Ten Years Of Pcaob Research: What Have We Learned, John Abernathy, Michael Barnes, Chad Stefaniak Oct 2013

A Summary Of Ten Years Of Pcaob Research: What Have We Learned, John Abernathy, Michael Barnes, Chad Stefaniak

Faculty and Research Publications

For the past 10 years, the Public Company Accounting Oversight Board (PCAOB) has operated as an independent overseer of public company audits. Over 70 percent of PCAOB studies have been published since 2010, evidencing the increasing relevance of PCAOB-related research in recent years. Our paper reviews the existing literature on the PCAOB's four primary functions – registration, standard-setting, inspections, and enforcement. In particular, we examine PCAOB registration trends and evaluate the effects of PCAOB registration requirements on the issuer audit market, as well as discuss the relative costs and benefits (e.g., auditor behavior changes, improvements in audit quality, auditor perceptions) …


Stock Liquidity And The Pricing Of Earnings: A Comparison Of China’S Floating And Non-Floating Shares, Lou Fang, Jiwei Wang, Hongqi Yuan Oct 2013

Stock Liquidity And The Pricing Of Earnings: A Comparison Of China’S Floating And Non-Floating Shares, Lou Fang, Jiwei Wang, Hongqi Yuan

Research Collection School Of Accountancy

The reform to convert non-floating shares to floating in China provides a setting in which shares are subject to different liquidity constraint. We show that the severity of this constraint is inversely related to the extent to which earnings information is reflected in the share prices. Specifically, before the reform, the transfer prices of non-floating shares reflect much less earnings information than the market prices of floating shares. After the reform, however, both types of transfer reflect more earnings information, although the weights are still less than that found in the market prices. Thus, China's unique setting shows that share …


Digital Firms Can Be A Taxing Problem For Govts, Yee Loong Sum Oct 2013

Digital Firms Can Be A Taxing Problem For Govts, Yee Loong Sum

Research Collection School Of Accountancy

No abstract provided.


Capability Deployment In Crisis: Response To Asian Tsunami Disaster, Gary Pan Oct 2013

Capability Deployment In Crisis: Response To Asian Tsunami Disaster, Gary Pan

Research Collection School Of Accountancy

On 26 December 2004, an earthquake occurred under the Indian Ocean, 250 km northwest of the Indonesian island of Sumatra. According to the U.S. geological survey, the magnitude of the earthquake measured 9.0 on the Richter scale and the immense energy released from the earthquake triggered a series of tsunamis traveling at more than 600 km/h. The tsunami devastated the coastline of 13 countries, leaving more than 280,000 people dead and millions homeless. Soon after the disaster, the United Nations and the international community responded quickly with crisis relief operations for the nations affected. Unfortunately, these relief efforts soon ran …


Capability Deployment In Crisis Response To Asia Tsunami Disaster, Gary Pan Oct 2013

Capability Deployment In Crisis Response To Asia Tsunami Disaster, Gary Pan

Research Collection School Of Accountancy

The case covers the Asian tsumani in 2004 and the management of the crisis relief operations. The United Nations proposed a regional coordination centre in Singapore to coordinate all relief activities in the region. Singapore was considered the ideal candidate to coordinate the relief activities, due to its proximity to a number of tsunami-hit countries, her well-developed communications and logistics networks, and her status as a medical hub in the region.


Education Par Excellence: Developing Personal Competencies And Character Through Philanthropy-Based Education, Shirine L. Mafi, Marsha Huber Sep 2013

Education Par Excellence: Developing Personal Competencies And Character Through Philanthropy-Based Education, Shirine L. Mafi, Marsha Huber

Business, Accounting and Economics Faculty Scholarship

This teaching note presents an innovation in accounting education called the Philanthropy Project. The Philanthropy Project emphasizes experiential learning and is designed to promote the learning of discipline-specific concepts while simultaneously addressing the social needs of the surrounding community. In the Philanthropy Project, students receive money to distribute to not-for-profit organizations (NFPs) based on a competitive proposal process they help to develop and administer. A distinguishing characteristic of this project is that it is not a simulation. Students make real decisions that have immediate consequences to certain groups of people in their own communities. They have to make …