Business Commons^™

Family Businesses Must Be Run More ‘Professionally’, Alex Stewart

Management Faculty Research and Publications

No abstract provided.

Locating Decision Rights: Evidence From The Mutual Fund Industry, George D. Cashman, Daniel N. Deli

Finance Faculty Research and Publications

Mutual fund advisors make portfolio decisions for their funds on a daily basis. We examine the location of these portfolio decision rights on two dimensions. First, we consider the geographic location of the decision rights. Second, we consider whether the decision rights remain with an advisor or are allocated to an independent sub-advisor. We argue that the allocation of portfolio decision rights involves a tradeoff between the opportunity cost of not matching decision rights with specific knowledge, and the agency costs associated with moving the decision rights to the specific knowledge. The patterns in the location of decision rights are …

Goodwill And Goodwill Write-Downs: Their Effects On Earnings Quality For 2008 And 2009, Don Giacomino, Michael Akers

Accounting Faculty Research and Publications

This paper examines goodwill on corporate balance sheets. Specifically, the paper measures the extent to which goodwill exists on corporate balance sheets and the degree of goodwill write-downs that have occurred recently. We report on our study and a study by Intangible Business, which show that many firms carry substantial amounts of goodwill on their 2008 balance sheets. Thus, because of the recent downturn in the economy and the markets, the potential for big bath earnings management for 2008 and 2009 exists. In addition, because of reductions in expected returns on pension plan assets, many firms are likely to record …

Mergers And Acquisitions: Overcoming Pitfalls, Building Synergy, And Creating Value, Michael A. Hitt, David King, Hema Krishnan, Marianna Makri, Mario Schijven, Katsuhiko Shimizu, Hong Zhu

Management Faculty Research and Publications

No abstract provided.

Organizational Learning From Extreme Performance Experience: The Impact Of Success And Recovery Experience, June-Young Kim, Ji-Yub Kim, Anne S. Miner

Management Faculty Research and Publications

This paper argues that two different types of a firm’s own extreme performance experiences—success and recovery—and their interactions can generate survival-enhancing learning. Although these types of experience often represent valuable sources of useful learning, several important learning challenges arise when a firm has extremely limited prior experience of the same type. Thus, we theorize that a certain threshold of a given type of experience is required before each type of experience becomes valuable, with low levels of experience harming the organization. Furthermore, we propose that success and recovery experience will interact to enhance each other’s value. These conditions can help …

Applying Catholic Social Teachings To Ethical Issues In Marketing, Thomas A. Klein, Gene R. Laczniak

Marketing Faculty Research and Publications

This article updates earlier work by the authors and proposes the social teachings of the Roman Catholic Church to be an encompassing and coherent normative theory, a source of principles that address contemporary issues in marketing, especially when a manager faces ethically charged questions. The authors propose that this application of a tradition in moral theology offers a novel approach for helping resolve contemporary ethical problems in marketing. Their approach to this task pursues two paths. First, the main tenets of Catholic social teaching are presented, along with some discussion of sources. Then, some of the ethical issues associated with …

Testing The Financial Literacy And Expertise Of Audit Committee Members, Don E. Giacomino, Michael D. Akers, Joseph Wall

Accounting Faculty Research and Publications

No abstract provided.

Revisiting Financial (Accounting) Literacy: A Comparison Of Audit Committee Members And Business Students, Don Giacomino, Joseph Wall, Michael D. Akers

Accounting Faculty Research and Publications

While financial literacy is important for an audit committee in discharging its duties there is no authoritative guidance or definition and limited empirical research as to what constitutes financial literacy of audit committees and business students. Coates et al. conducted a study that examined the financial literacy of corporate board members and MBA students at the University of Chicago using an instrument developed by Schipper and WeiL Their findings suggest that both groups lack the appropriate level of financial literacy. This paper extends that research by using the same instrument to examine the financial literacy of undergraduate accounting finance students …

"Just" Markets From The Perspective Of Catholic Social Teaching, Nicholas J. C. Santos, Gene R. Laczniak

Marketing Faculty Research and Publications

The "justice of markets" is intricately connected to the treatment of the poor and the disadvantaged in market economies. The increased interest of multinational corporations in low-income market segments affords, on one hand, the opportunity for a more inclusive capitalism, and on the other, the threat of greater exploitation of poor and disadvantaged consumers. This article traces the contributions of Catholic Social Teaching and its basic principles toward providing insight into what constitutes "justice" in such "marketing to the impoverished" situations.

Applying Sarbanes-Oxley Principles To Colleges And Universities, Sean Goins, Don Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

In the wake of the financial scandals that have occurred in the corporate sector, the public is demanding more accountability not only from corporations but also from nonprofit organizations such as universities. Institutions can enhance corporate governance by implementing some of the principles and procedures the Sarbanes-Oxley Act of 2002 (SOX) have mandated for public companies. Because public accounting firms audit universities, the firms can provide a valuable service to such clients by recommending ways in which universities can implement SOX practices that are appropriate and applicable. Although SOX does not currently apply to colleges and universities, it has created …

Marketing To The Poor: An Integrative Justice Model For Engaging Impoverished Marketing Segments, Nicholas J. C. Santos, Gene R. Laczniak

Marketing Faculty Research and Publications

The relatively recent entry of multinational corporations (MNCs) into low-income markets, particularly in developing countries, affords the opportunity for the more inclusive capitalism envisioned by globalists. Alternatively, an expansion of MNC marketing in less developed economies might foreshadow the greater exploitation of disadvantaged consumers predicted by many critics of expanded free trade. To diffuse the charge of “exploitative” marketing, it is imperative that corporate marketing efforts seeking to engage impoverished segments be grounded in a strong ethical framework. This article unveils one such framework—the “integrative justice model” (IJM). The IJM is an aspirational model that outlines how to market ethically …

The Nutrition Elite: Do Only The Highest Levels Of Caloric Knowledge, Obesity Knowledge, And Motivation Matter In Processing Nutrition Ad Claims And Disclosures?, J. Craig Andrews, Richard G. Netemeyer, Scot Burton

Marketing Faculty Research and Publications

This study examines the role of the highest levels of caloric knowledge, obesity consequences knowledge, and motivation to search for nutrition information in the processing of relative nutrient content claims in advertisements, such as “half the calories” or “half the fat,” for products relatively high in total calorie levels. After controlling for the impact of demographics, dietary habits, body mass index, relative ad claims and disclosures, perceived weight gain risk, and other variables, the authors find curvilinear (quadratic) effects for caloric knowledge, obesity consequences knowledge, and motivation to search for nutrition information on intent to buy an advertised, high-calorie snack …

Reduced Income Can Translate Into Larger Tax Deductions And Credits, James Trebby

Accounting Faculty Research and Publications

No abstract provided.

Trading In Co2 Credits: Tax Issues To Consider, Maureen Mascha, J. William Harden, James Trebby

Accounting Faculty Research and Publications

The issue of limiting carbon emissions has recently commanded international attention. Starting with the 1997 Kyoto Protocol, world markets have begun to coalesce around the notion that carbon dioxide (CO₂) emissions should be controlled or capped. There are three generally accepted methods for limiting the emission of CO₂: 1) a carbon tax that charges producers a fee for emissions that exceed a prespecified amount; 2) an auction, in which organizations bid on credits that are then used to offset the amount of actual CO₂ emitted; and 3) a “cap and trade” system.

Foundations In Wisconsin: A Directory [28th Ed. 2009], Marquette University - Funding Information Center, Mary C. Frenn, Melanie Baier, Jeremy Blackwood, Anne Carpenter, Joseph Flipper, Sarah Martin, Greg Sikora

Foundations in Wisconsin: A Directory

The 2009 edition of Foundations in Wisconsin marks the 28th production of the print directory and the 9th year of the online version. 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. However, additional information was obtained from surveys, foundation Web sites, annual reports, and newsletters. Wisconsin foundations have continued to grow in …

International Perception Of Corruption, Bina Menon, Michael D. Akers

Accounting Faculty Research and Publications

The discussion of corruption and bribery in most auditing textbooks focuses only on the Foreign Corrupt Practices Act which is an amendment to the Securities Exchange Act of 1934. As the US moves toward the implementation of International Financial Reporting Standards (IFRS) and international auditing standards, an understanding of international legislation pertaining to corruption and the perception of corruption in specific countries are important. This paper provides an overview of the Foreign Corrupt Practices Act (FCPA) and the Organization for Economic Co-operation and Development (OECD) Anti-bribery Convention. While prior literature has discussed the impact of both the FCPA and OECD …

An Examination Of The Use Of The Board Balanced Scorecard By Large Public Corporations, Qianhua Ling, Don Giacomino, Michael Browne, Michael D. Akers

Accounting Faculty Research and Publications

While the Balanced Scorecard (BSC) developed by Norton and Kaplan has gained global prominence as a management tool and there is qualitative accounting literature that discusses the benefits of the Board BSC, there is limited empirical evidence that examines the use of the Board BSC. We surveyed Chairs of large public companies to determine the extent to which they use the Board BSC and the reasons why. Our findings suggest that the Board BSC is currently not a widely used technique by Boards of Directors. We also found that the Sarbanes-Oxley Act of 2002 wasn't an influencing factor for those …

An Empirical Examination Of Whistleblowing Policies And Mechanisms At Universities, Michael D. Akers, Tim V. Eaton

Accounting Faculty Research and Publications

This study empirically examines the implementation of whistleblowing policies and mechanisms at universities.

Decomposition As A Complex-Skill Acquisition Strategy In Management Education: A Case Study In Business Forecasting, Monica Adya, Edward J. Lusk, Moncef Balhadjali

Management Faculty Research and Publications

Graduate business education has been criticized for utilizing simplistic teaching strategies that compromise the presentation of real-world complex skills in the classroom. In this article, we propose that complex management functions can be effectively taught using decomposition strategies. We demonstrate the usefulness of this strategy in the domain of business forecasting by comparing the forecast accuracy of students instructed in decomposition (RBF-Instructed) with that of students not exposed to such instruction (Uninstructed), as well as with an expert system called Rule-Based Forecasting (RBF). RBF-Instructed students demonstrated significant improvements over Uninstructed students and were at least as …

Flexible Global Software Development (Gsd): Antecedents Of Success In Requirements Analysis, Vanita Yadav, Monica Adya, Varadharajan Sridhar, Dhruv Nath

Management Faculty Research and Publications

Globalization of software development has resulted in a rapid shift away from the traditional collocated, on-site development model, to the offshoring model. Emerging trends indicate an increasing interest in offshoring even in early phases like requirements analysis. Additionally, the flexibility offered by the agile development approach makes it attractive for adaptation in globally distributed software work. A question of significance then is what impacts the success of offshoring earlier phases, like requirements analysis, in a flexible and globally distributed environment? This article incorporates the stance of control theory to posit a research model that examines antecedent factors such as requirements …

Generating Opportunity From Uncertainty, David R. King

Management Faculty Research and Publications

Learning to deal with uncertainty makes organizations more robust. Leaders can take steps to help their organizations take advantage uncertainty. When continued success transitions from informed decision to luck, small differences in the ability of organizations to handle uncertainty can have a large impact. An example from military history is used to outline current day lessons for military and business leaders.

Panel: Exploring Approaches To It Project Management Pedagogy, Robert Brookshire, Monica Adya, Katia Passerini, Karen P. Patten, Carol E. Pollard, Russell W. Robbins

Management Faculty Research and Publications

No abstract provided.

Organizational Alignment And Supply Chain Governance Structure: Introduction And Construct Validation, Bryan Ashenbaum, Arnold Maltz, Lisa Ellram, Mark A. Barratt

Management Faculty Research and Publications

Purpose

– The purpose of this paper is to introduce and validate two new constructs with the potential to sharpen our understanding of how and why firms integrate their internal supply chains and assess the governance structure of their supply chains. The first construct, organizational alignment (OA), is a reflective scale measuring the extent to which upper management attempts to foster integration between internal supply chain functions. The second, supply chain governance structure (SCGS), is a formative index, and is a first attempt at developing a measurement instrument to assess SCGS along multiple dimensions.

Design/methodology/approach

– Following a literature review, …

Niches At The Edges: Price-Value Tradeoff, Consumer Behavior, And Marketing Strategy, Syed H. Akhter

Marketing Faculty Research and Publications

Purpose – The purpose of this paper is to examine how the perception of price-value tradeoff is related to overall satisfaction, purchase intention, word-of-mouth advertising, and actual repurchase behavior. Design/methodology/approach – Data on subscribers and single ticket buyers of a major symphony orchestra in the Midwest are used to test the hypotheses. Findings – The ANOVA results show significant differences across the three levels of price-value tradeoff in each of the response variables. Additional analyses of cross-tabulated data show that some of the bivariate relations conform to, as well as depart from, the rational consumer behavior model. Research limitations/implications – …

How Offshore Outsourcing Is Perceived: Why Do Some Consumers Feel More Threatened?, Srinivas Durvasula, Steven Lysonski

Marketing Faculty Research and Publications

As globalization intensifies, multinational companies are not only compelled to expand their operations, but are also facing greater pressure to enhance productivity and concomitant return on investment (ROI). One way to achieve cost efficiencies is by offshoring selected business operations to overseas firms. Such offshoring, however, has generated public concern and, in some cases, outrage. Angst against offshoring is based on many perceptions, including perceived job losses and damage to domestic industries. In the wake of this threat, multinational firms in Europe and North America confront a public relations problem in justifying their offshoring activities. Yet, no systematic study has …

Risky Decisions And Decision Support: Does Stress Make A Difference?, Gloria Phillips-Wren, Monica Adya

Management Faculty Research and Publications

Studies of human decision making have demonstrated that stress exacerbates risk taking. Since all decisions involve some element of risk, stress has critical impact on decision quality. Decisions are found to improve with stress up to an optimal threshold beyond which deterioration is observed. However, few studies have examined the psychological experiences underlying risk-taking behavior in conjunction with stress creators. In this paper we propose a research framework that integrates pre-conditions of stress (perceptions of high gain/loss, risk, complexity, and organizational pressure) with observed psychological experiences (time pressure, uncertainty, information overload, and dynamism) that potentially result in risky decision making. …

Achieving High Performance Outcomes Through Trust In Virtual Teams, Bonnie S. O'Neill, Todd Nilson

Management Faculty Research and Publications

Developing trust among team members is critical for achieving high performance outcomes. Recently, global business operations necessitated working in a team environment with colleagues outside traditional organizational boundaries, across distances, and across time zones. In this article, we discuss how human resource practices can support organizational initiatives when business operations mandate increased virtual teamwork. We examine the role of HR in enhancing relationship building and the development of trust among workers who may rarely, if ever, meet face-toface. Using research from teamwork, social exchange theory, and knowledge sharing, we discuss how four areas of human resources management—recruitment, training, performance appraisal, …