Business Commons^™

Is A Pension Fund's Mix Of Fair Value Investments, Audit Type, And Audit Quality Associated With The Firm's Credit Rating?, Trevor England

Doctor of Business Administration Dissertations

There has been a proliferation of alternative investment holdings by defined benefit pension plans during the 21^st century. While holdings of alternative investments may advantage pension plans and their sponsoring firms through diversification and/or less volatile returns, they may also present valuation problems because underlying investments in opaquely valued (or marked-to-model) securities contain larger estimation error and uncertainty. Such valuation problems may concern credit reporting agencies because the sponsoring firm’s pension plan liability is uncertain. This problem is exacerbated through agency relationships within pension plans that enable executives and investment managers to engage in opportunistic financial reporting of fair …

Intuition In Employee Selection: Examining The Conditions For Accurate Intuitive Hiring Decisions, Vinod Vincent

Doctor of Business Administration Dissertations

In complex organizational environments, managers often rely on intuition to make decisions. Research has found intuition to be helpful when the task is complex; the decision maker is a domain expert; and when the decision environment has a high level of uncertainty, complexity, time pressure, insufficient data, and more than one reasonable solution. However, in employee selection, which is a decision environment that typically has the aforementioned characteristics that are conducive for intuition, scholars discount the usefulness of intuition in favor of more objective, analytical selection methods such as specific aptitude (e.g. sales ability) tests. A reason for the lack …

Social Capital And Dynamic Capabilities In A Top Management Team, Blaine Schreiner

Doctor of Business Administration Dissertations

Top management teams greatly influence the performance of their organizations based on their interpretations of the situations they face and the decisions they make built on those interpretations. In addition, the long-term success of the organization relies upon the top management team’s ability to properly balance the exploration and exploitation capabilities of the organization. The literature regarding the impact of the top management team’s social capital is limited and even less is known about the intra-organizational social capital of this group. This study examines the effect of the top management team’s intra-organizational social capital on exploratory and exploitative dynamic capability …

Investigating Information Security Policy Characteristics: Do Quality, Enforcement And Compliance Reduce Organizational Fraud?, Dennis T. Brown

Doctor of Business Administration Dissertations

Organizational fraud, a deceitful practice or willful device resorted to with intent to deprive another of his right, or in some manner to do harm or injury, is a growing global concern. While cyberattacks from the outside are more expected, the internal security threat from trusted insiders is responsible for significantly more information compromise than external threats. Information systems make life easier but are increasingly used by employees to perpetrate fraudulent activities. For example, a trusted insider employee with access to sensitive customer databases could misappropriate information and sell it to a competitor for personal gain. These type losses are …

Trust And Distrust Scale Development: Operationalization And Instrument Validation, John D. Rusk

Doctor of Business Administration Dissertations

Trust and distrust have been studied at great length by researchers in the field of information systems and various other fields over the past few decades without reaching consensus on conceptualization and measurement. The goal of this study was to determine if individual trust and distrust are separate constructs or opposite ends of the same continuum. To this end, based on theoretical rationale, an aggregation of extant, validated trust and distrust instruments combined with newly created trust and distrust items were used as input into a rigorous Q-sorting procedure. The Q-sorting process led to the first contribution of this research: …

Data Analytics In An Audit: Examining Fraud Risk And Audit Quality, Sondra Smith

Doctor of Business Administration Dissertations

ABSTRACT

DATA ANALYTICS IN AN AUDIT: EXAMINING FRAUD RISK AND

AUDIT QUALITY

by

Sondra Smith

This study is comprised of two papers which examine, through interviews and an experiment, the current practices of data analytics of CPA firms, whether and how fraud risk impacts the usage of data analytics in an audit, and the effect data analytics has on the efficiency and effectiveness of an audit. The implementation of data analytics in an audit is relatively new, and there is not a good understanding of how it is currently being used in practice. Although historically the auditing profession has been …

Skewness Risk, Jump-Diffusion Modeling And Pricing In Carry Trade, Chitsun Chen

Doctor of Business Administration Dissertations

This paper investigates jump risk and return characteristics of currency carry trades by employing both empirical approach and analytical method. With country-level stochastic discount factor, a mathematical model is proposed to describe carry trade return dynamics that capture jump risk. Carry trade returns are modeled as jump-diffusion processes where types of jumps involve global and idiosyncratic jumps. We derive the first four moments of return process on exchange rates and use the method of moments to estimate parameters, which show the model matches excess carry trade returns in data quite well. Empirical findings show that carry trade returns exhibit an …

Can Relationship Banking Reduce Firms' Ipo Underpricing, Kai Lu

Doctor of Business Administration Dissertations

IPO underpricing harms pre-existing shareholders and reduces the capital firms can raise to fund their growth. This paper shows that relationship banking can reduce IPO underpricing by decreasing information uncertainty. I develop a theoretical model showing that good firms – those with a lower dispersion of market value – are harmed and bad firms benefit from IPO price uncertainty when there is no borrowing and, thus, no distinguishing information on firm quality. When investors receive signals about firm value only from publicly observable transaction lending, good firms benefit while bad firms suffer. However, when firms have access to loans through …

Sex May Sell But Gender Identity Predicts: An Investigation Of College Students’ Propensity To Join Entrepreneurship Clubs, Jerald Wallace

Doctor of Business Administration Dissertations

A rich and diverse stream of research has focused on assessing different outcomes between men and women entrepreneurs. Popular stereotypes maintain that women are neither as interested, or successful as entrepreneurs compared to men. However, most past research has used biological sex as a proxy to measure differences between women and men dichotomously. The problem with this approach is that it is an oversimplified approach to a complex issue. To address this problem, the more recent literature suggests the inclusion of more meaningful variables, such as gender identity, an individual’s concept of their traits both masculine and feminine, to assess …

Audit Committee Oversight Of Internal Control Over Financial Reporting, Andrea B. Weickgenannt

Doctor of Business Administration Dissertations

This study investigates the processes audit committees employ to fulfill their obligation to oversee internal control over financial reporting (ICFR). Specifically, I explore audit committee processes within five fundamental internal control components: control environment, risk assessment, control activities, information and communication, and monitoring (COSO, 2013). I consider agency theory and institutional theory, investigating the degree of substantive versus ceremonial processes used by audit committees. Additionally, this study considers comfort theory as it reveals details about how audit committees get “comfortable” with ICFR.

The research questions in this study are examined through a cross-sectional survey of 167 public company audit committee …