Business Commons^™

Investor Views Of Audit Assurance: Recent Evidence Of The Expectation Gap, Marshall A. Geiger

Accounting Faculty Publications

Investors and financial statement users long have agreed on the usefulness of the audit in financial reporting. Over time, however, auditors have been expected to provide assurance in varying degrees and for different purposes. Differences in perception -- especially regarding assurances provided -- between users, preparers and auditors have been termed the "expectation gap. This article provides some startling evidence of the existence of such a gap in investor perceptions of the assurance provided by an audit.

Employment-Based Health Insurance And Job Mobility: Is There Evidence Of Job-Lock?, Brigitte C. Madrian

Faculty Publications

This paper assesses the impact of employer-provided health insurance on job mobility by exploring the extent to which workers are "locked' into their jobs because preexisting conditions exclusions make it expensive for individuals with medical problems to relinquish their current health insurance. I estimate the degree of job-lock by comparing the difference in the turnover rates of those with high and low medical expenses for those with and without employer-provided health insurance. Using data from the 1987 National Medical Expenditure Survey, I estimate that job-lock reduces the voluntary turnover rate of those with employer-provided health insurance by 25 percent, from …

The Effect Of Health Insurance On Retirement, Brigitte C. Madrian

Faculty Publications

FOR DECADES health insurance in the United States has been provided to most nonelderly Americans through their own or a family member's employment. This system of employment-based health insurance has evolved largely because of the substantial cost advantages that employers enjoy in supplying health insurance. By pooling large numbers of individuals, employers face significantly lower administrative expenses than do individuals. In addition, employer expenditures on health insurance are tax deductible, but individual expenditures are generally not.¹

Despite these cost advantages, there is widespread dissatisfaction with this system of employment-based health insurance. Many people are excluded because not all employers …

The Vehicle Quota System In Singapore: An Assessment, Winston T. H. Koh, David K. C. Lee

Research Collection Lee Kong Chian School Of Business

This paper reviews the developments since the vehicle quota system was introduced in Singapore in May 1990. We discuss the bidding strategies for the certificates of entitlement (COE) under both the transferable and nontransferable auctions, as well as the equity of the present system and the desirability of transferable COEs. We argue that the COE auction should be made discriminatory and propose an alternative system of COE auction that we feel is both equitable and at the same time politically acceptable. We also survey developments in market competition in the car industry.

Share-Price-Changes-Volume Relation On The Singapore Equity Market, David K. C. Lee, Mohamed Ariff

Research Collection Lee Kong Chian School Of Business

A critical review of the literature on security-price-changes-volume research suggests that the published studies in the United States and one each in Hong Kong and Japan have largely ignored the impacts on the results from autocorrelation, non-normality of distributions, heteroscedasticity and non-linear functional forms. Therefore, the reported findings are not robust. In testing for this relation from a small sample of continuously traded shares in the Singapore share market, we find that consistent results may not be obtained because of violations of basic test conditions. A task that remains is an application of alternative test models with data transformation using …

Is A Bond Rating Downgrade Bad News, Good News, Or No News For Stockholders?, Choo Yong, Jeremy Goh, Louis H. Ederington

Research Collection Lee Kong Chian School Of Business

We examine the reaction of common stock returns to bond rating changes. While recent studies find a significant negative stock response to downgrades, we argue that this reaction should not be expected for all downgrades because: (1) some rating changes are anticipated by market participants and (2) downgrades because of an anticipated move to transfer wealth from bondholders to stockholders should be good news for stockholders. We find that downgrades associated with deteriorating financial prospects convey new negative information to the capital market, but that downgrades due to changes in firms' leverage do not.

The Value Line Enigma Extended - An Examination Of The Performance Of Option Recommendations, Jack B. Broughton, Don M. Chance

Business Faculty Articles and Research

We extend the research on the Value Line Enigma by examining the performance of call recommendations in Value Line Options. Galai's hedge decomposition procedure identifies the components of the calls' returns. Abnormal call returns were most pronounced immediately following the purchase, which is consistent with studies of Value Line's stock rankings. The largest and most significant abnormal performance was by calls assigned the highest rank written on stocks judged by Value Line to be correctly priced. Abnormal call return performance by joint call and stock ranks was consistent with the hypothesis that Value Line identifies underpriced call options.

Auctions For Transferable Objects: Theory And Evidence From The Vehicle Quota System In Singapore, David K. C. Lee, Winston T. H. Koh

Research Collection Lee Kong Chian School Of Business

This paper studies the hypothesis that auctions with resale markets result in higher prices. The vehicle quota system introduced in Singapore in May 1990 provides the setting. The Certificates of Entitlement (COEs) necessary to purchase new cars were initially transferable for all quota categories. After October 1991, COEs for four major categories became non-transferable. Our results indicate that while the conversion to non-transferability eliminated speculation, it has also intensified competition among car distributors. Auctions for non-transferable COEs in fact led to higher COE prices in three of the four categories.

Development Of Standardized S Curves For The Evaluation Of Major Department Of Defense Purchases, Richard E. Knepp, Michael E. Stroble

Theses and Dissertations

The increasing cost of Department of Defense acquisitions combined with the shrinking Defense budget puts a premium on continuing the funding of only those programs that are practical and affordable. This emphasizes a need for good methods of monitoring the progress of programs. Current methods of controlling and evaluating cost performance are limited. It is our belief that the generation of S-curves using current Cost and Schedule Control Systems Criteria (C/SCSC) data will provide a mathematical and/or graphical approach to assist in the control of program costs. This thesis attempted to plot the percentage of time for a contract's completion …

An Analysis Of Estimate At Completion Models Utilizing The Defense Acquisition Executive Summary Database, Mark F. Terry, Mary M. Vanderburgh

Theses and Dissertations

This study explores the widely held assertion that DOD contract Cost at Completion is bounded below by the Cost Performance Index-based Estimate at Completion (EAC) and above by the Schedule Cost Index-based EAC. Descriptive statistics determined the floor and ceiling for 321 DOD contracts. The results confirmed that the Cost Performance Index-based EAC is a reasonable floor and the Schedule Cost Index-based EAC is a reasonable ceiling for EAC formulas. For the contracts considered overall, on average, the Cost at Completion was not bounded by the floor and ceiling. The range of EAC formulas evaluated tended to slightly underestimate, the …

Quantification Of Uncertainty In The Remedial Investigation/Feasibility Studies Process, Kurt C. Held, Perry J. Shepler

Theses and Dissertations

This thesis developed a method to bound cost estimates with a prediction interval of costs for the Remedial Investigation/Feasibility Study (RI/FS) phase of the Installation Remediation Program (IRP) process. The prediction interval provides a reasonableness cross check for RI/FS project cost estimates. To develop the cost bounds, three major activities occurred. First, a database was developed from RI/FS projects managed by the Army Corps of Engineers. Second, a regression cost model was developed from the observations in the database. Third, a prediction interval specified at the 70 percent confidence level was derived from the cost model. This prediction interval provides …

A Study Of The Development Of Planning, Programming And Budgeting System (Ppbs) In The United States Department Of Defense, Sakir S. Kantik

Theses and Dissertations

Having served as the United States Defense Department (DoD)'s primary resource allocation and decision-making process for more than 30 years, Planning-Programming-Budgeting System (PPBS) has kept going its evolution since it was first introduced in 1961. Accordingly, this study examined the development of PPBS in the U.S. DoD from its beginning to the recent past, that is to 1986, focusing on its basic purposes, how it has been modified and to assess the various expert observations made about the system. As originally conceived, the budget process was divided into three phases: Planning, Programming and Budgeting. The Planning phase was concerned with …

Software Cost Estimating Models: A Comparative Study Of What The Models Estimate, George A. Coggins, Roy C. Russell

Theses and Dissertations

This effort developed a consolidated document which highlights and examines differences in definitions, assumptions, and methodologies used by the REVIC, SASET, PRICES, and SEER-SEM cost models. The following research questions were investigated: (1) What differences exist between the cost models? (2) How do these differences impact the resulting estimates? (3) To what degree can we explain and adjust for known differences between the cost models? Seven specific areas were addressed: (1) software development phases, (2) development activities and cost elements, (3) source lines of code and language differences, (4) key model attributes and key cost drivers, (5) implications of Project …

A Cost Model For Usaf Acquisition Of Commercial Aircraft For Service In The Special Air Mission Fleet, C. Grant Mcvicker Iii, Michael T. Roche

Theses and Dissertations

The purpose of this research was to develop a cost estimating model which would allow cost estimators the ability to quickly and accurately estimate the acquisition of Air Force Special Air Mission fleet aircraft. The literature review revealed studies, government contracts, and trade publications which served as source data. This information was supplemented by interviews with acquisition specialists and contractors and incorporated into a database. Several estimating techniques were created and used to estimate the various cost elements. The Commercial Aircraft Integrated Cost Estimating Tool (CAICET) model was then developed to incorporate the estimating techniques with the database. This was …

Empowerment: Dimensions And Strategies In The U.S Air Force, Karen M. Corrente, Adelaida Lopez

Theses and Dissertations

The goal of this research was to develop an instrument capable of measuring empowerment, and provide recommended general strategies on how to create an empowered organization. This goal was accomplished by developing a pilot questionnaire based on seven dimensions of empowerment discussed in Major Wayne G. Stone's unpublished article Empowerment: Keeping the Promise of the Total Quality Revolution. Each dimension of empowerment was subdivided into measurement parameters, with behavioral statements developed to describe these parameters. The pilot questionnaire was completed by 278 Air Force-related personnel with mainly acquisition-oriented backgrounds. Results indicated six factors of empowerment exist which were translated into …

Cost Estimating Cases: Educational Tools For Cost Analysts, Kerrie G. Schieman, James R. Passaro

Theses and Dissertations

The goal of this research effort was to develop educational cases that would bridge the gap between the theory and principles of cost estimating currently taught in the Air Force Institute of Technology (AFIT) Graduate Cost Analysis (GCA) curriculum and the real world of cost estimating in the acquisition arena. To achieve these goals, the following research objectives were investigated (1) Identify cost estimating skills that graduates of the AFIT GCA curriculum are expected to possess. (2) Assess the relative importance of the identified cost estimating skills. (3) Select weapon system scenarios that are relevant, interesting, and facilitate student performance …

A Study Of The Establishment Of Cost And Schedule Variance Thresholds On Department Of Defense Major Program Contracts, Tuan A. Hoang, Steven M. Quick

Theses and Dissertations

This thesis examined to what extent theoretical threshold models are used to establish cost and schedule variance thresholds on Department of Defense (DoD) major program contracts and identified how these thresholds are actually established. First, numerous theoretical methods for establishing variance threshold including the accounting approach, the statistical process control approach, and the Dyckman and Kaplan models were investigated and assessed. Interviews were then conducted with a sample of DoD and civilian defense contractor personnel who had first-hand knowledge of the establishment of cost and schedule variance thresholds. Findings indicated that none of these methods was being used. Repeatedly, interviewees …

1993-1994 Operating Budget, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University and A & M College 1993-1994 Operating Budget.

1993-1994 Operating Budget Request: Southern University At New Orleans, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University at New Orleans Campus 1993-1994 Operating Budget Request.

1993-1994 Operating Budget: Southern University/Shreveport-Bossier Campus, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University/Shreveport-Bossier Campus 1993-1994 Operating Budget for the Fiscal Year Ending June 30, 1994.

1993-1994 Operating Budget, Southern University System. Office Of Finance & Administration.

All Southern University System Budgets

The Southern University Board and System Administration Operating Budget for the fiscal year 1993-1994.

Interorganizational Relations, Nadra Garas

Archived Theses and Dissertations

No abstract provided.

No. 121 1993 April

International Journal for Business Education

SIEC Historical Documents

A Review Of Small-Scale Enterprises Credit Delivery Strategies In Nigeria, E E. Inang, G E. Ukpong

CBN Occasional Papers

The paper reviews the crucial role of Small-Scale Enterprises (SSEs) in facilitating industrial development; some special advantages of existing credit schemes to small-scale enterprises: the peculiar handicaps which SSEs face, the most crucial being poor access to development finance, and highlights areas and ways in which credit guarantee and insurance schemes for SSEs could increasingly contribute to their development and growth in Nigeria. Notable among the credit schemes and institutions reviewed are the Small-Scale Industries Credit Scheme (SSICS) introduced in 1971; the Nigerian Bank for Commerce and Industry (NBCI) established in 1978: the Nigerian Industrial Development Bank (NIDB); the Central …

Special Meeting, Wku Board Of Regents

Board of Regents Documents

Minutes of special meeting:

• Call to Order – page 1
• Invocation – page 1
• Roll Call – page 1
• Report on Salary Study – pages 1-12
• Recommendation for Approval of an Administrative Reorganization – page 13
• WKU Foundation Articles of Incorporation & Bylaws – pages 13-21
• Personnel Actions – pages 21-32
• Center for Industry & Technology Name Change – page 32
• President’s Report – pages 32-33
• Adjournment – page 33

Exhibit 1 - 1992-98 Capital Planning System, Wku Board Of Regents

Board of Regents Documents

1992-98 Capital Planning System project report for WKU.

1992-1993 Financial Summary, Morehead State University. Budget & Financial Planning Office.

Morehead State University Financial Summaries Archive

No abstract provided.

Basic Concepts In Forest Valuation And Investment Analysis, Steven H. Bullard, Thomas J. Straka

Faculty Publications

The current edition 3.0 can be found at the following location:

Bullard, Steven H. and Straka, Thomas J., "Basic Concepts in Forest Valuation and Investment Analysis" (2011) eBooks http://scholarworks.sfasu.edu/ebooks/21

This book was originally intended to supplement lectures in forestry economics at the undergraduate level. At Mississippi State University, for example, these materials are currently used in one of the eleven major topics included in a one-semester course titled 'Forest Resource Economics.' It is also intended, however, that the book will serve as a basic reference for foresters with experience in valuation concepts and terminology. It has proven to be a …

Indiana State University Financial Report 1993, Indiana State University

Financial Reports

No abstract provided.

Common Stock Price Effects Of Security Issues Conditioned By Current Earnings And Dividend Announcements, Timothy A. Manuel, Leroy D. Brooks, Frederick P. Schadler

Economics & Finance

The valuation effect of debt and equity issue announcements on stock price varies predictably with the timing of earnings and dividend reports. Issue announcements closely preceding current cash flow signals have more negative valuation effects. Straight debt announcements also have a significantly negative effect on stock price when the offer announcement closely precedes earnings and dividend releases. The evidence is consistent with a separating equilibrium where better performing firms signal superior value by announcing equity offers shortly after dividend announcements. Poorer performers appear to time equity offers just before dividend signals, which in turn are more likely to be negative.