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University of Richmond

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2005

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Articles 1 - 12 of 12

Full-Text Articles in Business

Improving Pro Forma Analysis Through Better Terminal Value Estimates, Tom Arnold, David S. North, Roy A. Wiggins Oct 2005

Improving Pro Forma Analysis Through Better Terminal Value Estimates, Tom Arnold, David S. North, Roy A. Wiggins

Finance Faculty Publications

Basic pro forma analysis often estimates the terminal value input using a simple growing perpetuity assumption. While this assumption is easy to implement, it potentially creates an upward bias in some inputs leading to lower firm or project value outputs. The purpose of this paper is to demonstrate a more accurate way to estimate the terminal value input. Further, by allowing for multiple sales growth rates and by not restricting other input variables to necessarily grow at these same rates, a more accurate, flexible, compact, and thorough analysis is possible.

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Summary -- Reducing Market And Appropriation Uncertainty: The Twin Organizational Tasks Of Entrepreneurship, Douglas A. Bosse, Sharon A. Alvarez Sep 2005

Summary -- Reducing Market And Appropriation Uncertainty: The Twin Organizational Tasks Of Entrepreneurship, Douglas A. Bosse, Sharon A. Alvarez

Management Faculty Publications

One of the reasons entrepreneurs are motivated to action is their assessment of the potential profit associated with a particular opportunity to recombine resources from the factor market into a product (or service) that will be demanded in the product market. Entrepreneurial firm survival often depends on the creation and appropriation of this profit. However, this profit is uncertain ex ante as it depends on the ex post difference between the costs that must be paid for the factors of production and the prices that will be realized for the finished product. This paper explores the relationship between uncertainty and …

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The Information Content Of Short Interest: A Natural Experiment, Tom Arnold, Alexander W. Butler, Timothy Falcon Crack, Y. Zhang Jul 2005

The Information Content Of Short Interest: A Natural Experiment, Tom Arnold, Alexander W. Butler, Timothy Falcon Crack, Y. Zhang

Finance Faculty Publications

Few studies have examined the relationship between customer injustice and employees’ retaliatory counterproductive behaviors toward customers, and those that have done so were conducted in a Western setting. We extend these studies by examining the relationship in a Singaporean context where retaliatory behaviors by employees might be culturally constrained. While the previously-established positive relationship between customer injustice and counterproductive behaviors was not replicated using peer-reported data from employees across two hotels in Singapore, we found that individuals’ self-efficacy and perceived social support moderated it. Specifically, the injustice-to-counterproductive behaviors relationship was positive for individuals with high self-efficacy, and for those who …

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With A Little Help From My Friends (And Substitutes): Social Referents And Influence In Psychological Contract Fulfillment, Violet Ho May 2005

With A Little Help From My Friends (And Substitutes): Social Referents And Influence In Psychological Contract Fulfillment, Violet Ho

Management Faculty Publications

This study investigated employees’ choice of social referents and the impact of social influence on their beliefs of psychological contract fulfillment. Using data from a field study conducted with 99 employees in a research organization, we found that one’s referent choice varied with the domain of promise evaluated. When evaluating the organization’s fulfillment of organization-wide promises, employees’ referents were primarily coworkers with whom they had close direct ties, namely, friends and advice givers. On the other hand, when evaluating the fulfillment of job-related promises, employees’ referents were mainly fellow workers who could substitute for them and people with whom they …

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An Excel Application For Valuing European Options With Monte Carlo Analysis, Tom Arnold, Stephen C. Henry Apr 2005

An Excel Application For Valuing European Options With Monte Carlo Analysis, Tom Arnold, Stephen C. Henry

Finance Faculty Publications

By developing the basic intuition of how Monte Carlo simulation works within an Excel spreadsheet framework, this paper allows the undergraduate student to use Monte Carlo simulation techniques to price European style options without additional sophisticated software. Further, the skills and intuition developed provide the basis for much more complex simulation techniques.

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Exploring Differences In Social Disclosures Internationally: A Stakeholder Perspective, Joyce Van Der Van Der Laan Smith, Ajay Adhikari, Rasoul H. Tondkar Mar 2005

Exploring Differences In Social Disclosures Internationally: A Stakeholder Perspective, Joyce Van Der Van Der Laan Smith, Ajay Adhikari, Rasoul H. Tondkar

Accounting Faculty Publications

Country of origin is considered to be an important determinant of the level and type of corporate social disclosure. In this paper, we use stakeholder theory to explain differ- ences in social disclosure among countries. We argue that the manner in which the role of a corporation and its stakeholders is defined in a society will affect the extent and quality of corporate social disclosure (CSD) in annual reports. Our findings based on a content analysis of 1998 and 1999 annual reports for 32 Norwegian/Danish companies and 26 US companies in the electric power generation industry, lend support to the …

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Agglomeration Effects And Strategic Orientations: Evidence From The U.S. Lodging Industry, Linda Canina, Cathy A. Enz, Jeffrey S. Harrison Jan 2005

Agglomeration Effects And Strategic Orientations: Evidence From The U.S. Lodging Industry, Linda Canina, Cathy A. Enz, Jeffrey S. Harrison

Management Faculty Publications

This study provides evidence regarding the strategic dynamics of competitive clusters. Firms that agglomerate (co-locate) may benefit from the differentiation of competitors without making similar differentiating investments themselves. Alternatively, co-locating with a high percentage of firms with low-cost strategic orientations reduces performance for firms pursuing high levels of differentiation. Further, the lowest-cost providers with the greatest strategic distance from the norm of the competitive cluster reap the greatest benefit from co-location with differentiated firms. We find empirical support for these ideas using a sample of 14,995 U.S. lodging establishments, and controlling for a number of key demand-shaping factors.

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Student Preferences For Common Or Unique Assignments: Some Early Evidence, Erwin Waldmann, Janek Ratnatunga, Marshall A. Geiger Jan 2005

Student Preferences For Common Or Unique Assignments: Some Early Evidence, Erwin Waldmann, Janek Ratnatunga, Marshall A. Geiger

Accounting Faculty Publications

Accounting assignments and homework exercises that use identical problem material for all students encourage plagiarism. Giving each individual student a unique assignment alleviates this problem, but raises other issues such as the lack of co-operative learning and grading parity. This paper examines students' attitudes towards both common and unique accounting assignments. The results indicate that a large majority of students preferred the unique assignments and perceived getting a high grade on these assignments as more rewarding and reflective of higher learning than similar grades on common assignments. Attitudinal variables for the validity of grading, perceptions regarding plagiarism, and perceptions of …

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Adam Smith And Greed, Jonathan B. Wight Jan 2005

Adam Smith And Greed, Jonathan B. Wight

Economics Faculty Publications

The virtues of greed have been widely promoted by some economists in the 20th century. Allegedly it is Adam Smith who provides this new dignity to greed (Lerner, 1937, ix). Kenneth Arrow and Frank Hahn in the General Equilibrium Analysis (1971), for example, implicitly assume that Adam Smith's self-interest is the greed that promotes economic efficiency (quoted in Evensky, 1993, 203). Walter Williams (1999), a devoted follower of Smith, writes in his column that, "Free markets, private property rights, voluntary exchange, and greed produce preferable outcomes most times and under most conditions." These pronouncements have become part of the cultural …

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Crossing The Great Divides: Selfridges, Modernity, And The Commodified Authentic, Elizabeth Outka Jan 2005

Crossing The Great Divides: Selfridges, Modernity, And The Commodified Authentic, Elizabeth Outka

English Faculty Publications

This article takes these critiques as a given. Incisive critical commentary on advertising and on marketing abounds, and exploring the false claims and schemes within a commercial culture is an essential and ongoing project. This critical approach, however, is not the end of the story, for armed only with skepticism, we are blinded to the dramatic commercial revolution offered by Selfridges, one that is intrinsically tied to British modernism. Selfridges embodies and deploys a surprisingly modernist set of tensions between low and high culture, and between the specter of the mass market and an alternative, non-commercial aesthetic. As this article …

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Stakeholders, Michael Johnson-Cramer, Robert A. Phillips Jan 2005

Stakeholders, Michael Johnson-Cramer, Robert A. Phillips

Management Faculty Publications

The stakeholder concept derives from a simple premise: organizations and technologies exist in constellations of relationships. Organizations operate in a network of market and nonmarket relationships with other organizations, groups, and individuals. Likewise technologies emerge and exist in a network of suppliers, end users, and others who bear the impact of the technology. Generally with reference to both organizations and technologies, these related parties are termed stakeholders, meaning that they hold a stake in the outcomes of the organization or technology.

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Is Fed Policy Still Relevant For Investors?, C. Mitchell Conover, Gerald R. Jensen, Robert R. Johnson, Jeffrey M. Mercer Jan 2005

Is Fed Policy Still Relevant For Investors?, C. Mitchell Conover, Gerald R. Jensen, Robert R. Johnson, Jeffrey M. Mercer

Finance Faculty Publications

Using 38 years of data, we show that U.S. monetary policy has had, and continues to have, a strong relationship with security returns. Specifically, we find that U.S. stock returns are consistently higher and less volatile during periods when the Federal Reserve is following an expansive monetary policy. Further, firms considered to be more sensitive to changes in monetary conditions, such as small firms and cyclicals, exhibit monetary-policy-related return patterns that are much more pronounced than average. Lastly, the influence of U.S. monetary policy is shown to be a global phenomenon, as international indices have return patterns similar to those …

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