Business Commons^™

A Mathematical Programming Approach To Multi-Attribute Decision Making With Interval-Valued Intuitionistic Fuzzy Assessment Information, Zhou-Jing Wang, Kevin W. Li Dr., Jianhui Xu

Odette School of Business Publications

This article proposes an approach to handle multi-attribute decision making (MADM) problems under the interval-valued intuitionistic fuzzy environment, in which both assessments of alternatives on attributes (hereafter, referred to as attribute values) and attribute weights are provided as interval-valued intuitionistic fuzzy numbers (IVIFNs). The notion of relative closeness is extended to interval values to accommodate IVIFN decision data, and fractional programming models are developed based on the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method to determine a relative closeness interval where attribute weights are independently determined for each alternative. By employing a series of optimization models, …

An Owa-Topsis Method For Multiple Criteria Decision Analysis, Ye Chen, Kevin W. Li Dr., Si-Feng Liu

Odette School of Business Publications

A hybrid approach integrating OWA (Ordered Weighted Averaging) aggregation into TOPSIS (technique for order performance by similarity to ideal solution) is proposed to tackle multiple criteria decision analysis (MCDA) problems. First, the setting of extreme points (ideal and anti-ideal points) in TOPSIS is redefined and extended for handling the multiple extreme points situation where a decision maker (DM) or multiple DMs can provide more than one pair of extreme points. Next, three different aggregation schemes are designed to integrate OWA into the TOPSIS analysis procedure. A numerical example is provided to demonstrate the proposed approach and the results are compared …

Perceived Organizational Membership And The Retention Of Older Workers, Francine K. Schlosser, Marjorie Armstrong-Stassen

Odette School of Business Publications

Drawing on the perceived organizational membership theoretical framework and the group-value justice model, we developed and tested a model predicting older workers' intention to remain with their organization. We hypothesized that human resource practices targeted to older workers would be related to perceived insider status through how older workers perceived their supervisor managed these practices (perceived procedural and interpersonal justice). We also hypothesized that perceived insider status would mediate the relationship between perceived contribution and intention to remain. We conducted two studies to test the hypothesized model. Study 1 participants (N = 236) were a diverse group of older workers …

A Replenishment Control System With Uncertain Returns And Random Opportunities For Disposal, Ben A. Chaouch

Odette School of Business Publications

We consider a replenishment control system in which product returns play an important role in inventory planning. We focus on the inventory of an individual item that is stored at a single location to meet a constant demand over time. We assume that the total amount of returns accumulated over a period of time can be represented by a compound Poisson process. We further assume that opportunities for inventory disposals or relocation arise occasionally in accordance with a Poisson process. We not only seek to resolve the issues of when to order and how much to order, we also consider …

Industry Specialist Auditors, Outsider Directors, And Financial Analysts, Jerry Sun, Guoping Liu

Odette School of Business Publications

This study investigates the relationships among industry specialist auditors, outside directors, and financial analysts. Specifically, we examine the effect of analyst coverage on the association between auditor industry specialization and outside directorship. We find that outside directors are less likely to hire industry specialist auditors for firms with high analyst coverage than for firms with low analyst coverage. Our findings suggest that analyst coverage moderates outside directors' demand for industry specialist auditors, that is, financial analysts may compete with industry specialist auditors to some extent in monitoring financial reporting process.

The Effect Of Analyst Coverage On The Informativeness Of Income Smoothing, Jerry Sun

Odette School of Business Publications

This study examines whether analyst coverage affects the informativeness of income smoothing. I find that income smoothing enhances earnings informativeness more greatly for firms with high analyst coverage than for firms with low analyst coverage. The results suggest that income smoothing more efficiently communicates private information to investors when firms are followed by more analysts, consistent with the notion that analysts play an important information intermediary role in enhancing the informativeness of income smoothing.

Finance Journal Rankings And Tiers: An Active Scholar Assessment Methodology, Russell Currie, Gurupdesh Pandher

Odette School of Business Publications

This study uses respondent data from a web-based survey of active finance scholars (45% response rate from 37 countries) to endogenously rank 83 finance journals by quality and importance. Journals are further tiered into four groups (A, B, C and D) and stratified into ‘‘upper”, ‘‘middle” and ‘‘lower” tier categories (e.g. A+, A and A ) by estimating a nested regression with random journal-within-tier effects. The comprehensive and endogenous ranking of finance journals based on the Active Scholar Assessment (ASA) methodology can help authors evaluate the strategic aspects of placing their research, facilitate assessment of research achievement by tenure and …

Does Female Directorship On Independent Audit Committees Constrain Earnings Management?, Jerry Sun, Guoping Liu, George Lan

Odette School of Business Publications

This study examines whether the gender of the directors on fully independent audit committees affects the ability of the committees in constraining earnings management and thus their effectiveness in overseeing the financial reporting process. Using a sample of 525 firm-year observations over the period 2003 to 2005, we are unable to identify an association between the proportion of female directors on audit committees and the extent of earnings management.

Ceo Succession, Gender And Risk Taking, Eahab Elsaid, Nancy D. Ursel

Odette School of Business Publications

Purpose - The purpose of this paper is to examine, within a succession framework, the impact of the gender composition of boards of directors on the gender of the CEOs they appoint, and to assess the impact of newly appointed CEOs' gender on risk taking by the firm.

Design/methodology/approach - The authors estimate a two-stage least squares regression using data on 679 CEO successions in North American firms.

Findings - The results show that successor CEOs are more likely to be female the greater the percentage of females on the board, regardless of other succession characteristics such as whether the …

Client-Specific Litigation Risk And Audit Quality Differentiation, Jerry Sun, Guoping Liu

Odette School of Business Publications

The purpose of this paper is to examine whether client-specific litigation risk affects the audit quality differentiation between Big N and non-Big N auditors. Specifically, the authors examine whether higher quality audits of Big N auditors relative to non-Big auditors is more pronounced for clients with high litigation risk than for clients with low litigation risk. The authors develop the hypothesis based on auditors' potential monetary and reputational losses, collect the data of US listed companies from the Compustat and CRSP databases, and conduct regression analyses. The authors find that the higher effectiveness of Big N auditors over non-Big N …

Ceo Successor Compensation: Outside Versus Inside Successions, Eahab Elsaid, Wallace Davidson, Xiaoxin Wang

Odette School of Business Publications

We propose that outside CEO candidates will have greater bargaining power than insiders. As a result, outside CEO successors will likely receive greater total compensation than inside CEO successors. Outside successors, meantime, pose more risk to the hiring firm than inside successors due to higher information asymmetry. As a result, outside successor compensation packages are tilted towards more performance-related pay-at-risk, while inside successor packages have a higher percentage in salary. In addition, outside successors may want to utilize the structure of their compensation at their previous firm in their new contracts. Using a sample of 99 firms with outside successors …

Inefficiency Of Logit-Based Stochastic User Equilibrium In A Traffic Network Under Atis, Hai-Jun Huang, Tian-Liang Liu, Xiaolei Guo, Hai Yang

Odette School of Business Publications

This paper makes a contribution to the literature by bounding the travel time inefficiency of the logit-based stochastic user equilibrium (SUE) under Advanced Traveler Information Systems (ATIS). All drivers are divided into two groups, one equipped with ATIS and another without, and both of which follow the logit-based SUE principle in making route choices. The equipped drivers have less degree of travel time variability than the unequipped ones. The inefficiency of the two-user class SUE is defined in two different ways, i.e., in comparison with the SO in terms of total actual system travel time, or in comparison with the …

Does Experience Matter? Ceo Successions By Former Ceos, Eahab Elsaid, Xiaoxin Wang, Wallace N. Davidson Iii

Odette School of Business Publications

Purpose - This paper aims to investigate an interesting yet mostly ignored distinction within external CEO successions: outside successors who have previous CEO experience and those who do not. It examines stock market reaction, compensation and firm performance prior and post-succession.

Design/methodology/approach - The authors used an event study, "Patell Z-statistic" and "Rank Z-statistic" to test cumulative abnormal return before and after the successions. They also used probit and OLS regressions to examine firm performance and CEO compensation prior and post-succession.

Findings - The authors find that the stock market reacts positively to the hiring of an outsider who is …

Bounded Rationality And Irreversible Network Change, Xiaolei Guo, Henry X. Liu

Odette School of Business Publications

A network change is said to be irreversible if the initial network equilibrium cannot be restored by revoking the change. The phenomenon of irreversible network change has been observed in reality. To model this phenomenon, we develop a day-to-day dynamic model whose fixed point is a boundedly rational user equilibrium (BRUE) flow. Our BRUE based approach to modeling irreversible network change has two advantages over other methods based on Wardrop user equilibrium (UE) or stochastic user equilibrium (SUE). First, the existence of multiple network equilibria is necessary for modeling irreversible network change. Unlike UE or SUE, the BRUE multiple equilibria …

The Effect Of Analyst Coverage On Accounting Conservatism, Jerry Sun, Guoping Liu

Odette School of Business Publications

Purpose – The purpose of this paper is to examine whether high analyst coverage increases or decreases accounting conservatism.

Design/methodology/approach – Sample firms were selected from the Compustat and I/B/E/S databases for years 1989-2006. The authors used both accrual-based and market-value-based measures of accounting conservatism, also the extent to which negative cash flow from operations is more timely recognized via accruals than positive cash flow from operations to measure accounting conservatism. The regression analyses are conducted to test the hypotheses.

Findings – Strong evidence was found that analyst coverage is positively associated with accounting conservatism. The results suggest that firms …

Antecedents And Postcedents Of Satisfaction In Business Relationships In Canada, David Hutchinson Dr., Jang Singh

Odette School of Business Publications

This paper reports the findings of an investigation of whether trust and commitment influence satisfaction, and whether satisfaction then influences specific investments, opportunism, and formalisation. Using data collected in a survey of Canadian managers and executives, a model derived from marketing theory and previous empirical research was tested. The model includes both relationship marketing concepts and transaction cost theory concepts, an approach rarely encountered in existing studies. Satisfaction in an exchange relationship is formed by keeping promises in an iterative process, and serves as a safeguard against possible future risks (e.g., opportunism). Finally, we discuss the limitations of the study.