Business Commons^™

Do We Matter? The Attention Policy Makers, Academics, And The General Public Give To Accounting Research, F. Greg Burton, Scott L. Summers, T. Jeffrey Wilks, David A. Wood

Faculty Publications

Many question the value of accounting scholarship to society. We compared the attention the general public, policy makers, and academics give to academic accounting research relative to other business disciplines and other more general disciplines (economics, psychology, and other sciences). The results indicate that accounting research receives significantly less attention from the general public than all other disciplines and also performs relatively poorly in receiving policy makers’ attention compared to both economics and finance. Articles in other disciplines’ elite journals cite relatively little of accounting’s elite-level publications, but non-elite journal articles cite accounting research in similar numbers to other disciplines. …

Prepare For Takeoff: Improving Asset Measurement And Audit Quality With Drone-Enabled Inventory Audit Procedures, Margaret H. Christ, Scott A. Emett, Scott L. Summers, David A. Wood

Faculty Publications

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thereby improve financial reporting. We assess three dimensions of audit quality—efficiency, effectiveness, and quality of audit documentation. We provide evidence that auditors can perform inventory counts with these technologies much more efficiently than they can with manual techniques, decreasing count time in our study from 681 hours to 19 hours. At the same time, auditors can maintain or improve audit effectiveness with these technologies, decreasing error rates in our study from 0.15% to …

New Frontiers For Internal Audit Research, Margaret H. Christ, Marc Eulerich, Ronja Krane, David A. Wood

Faculty Publications

Internal audit provides useful and valuable services to organizations and research has established its importance in improving corporate governance. However, the body of internal audit research is still small. Further, there are many new and emerging topics for which little is known and practitioners would like guidance. Based on surveys, interviews, and discussions with practitioners, we identify three broad areas for additional research: information technology, staffing and personnel development, and agile auditing. In each area, we describe the current practices and discuss the relevant accounting literature, noting gaps where additional inquiry is needed. We also provide a list of testable …

Internal Audit Stigma Impairs Internal Audit Outcomes, Marc Eulerich, Joleen Kremin, K. Kelli Saunders, David A. Wood

Faculty Publications

Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe and the United States and an experiment. We find that when practicing internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to …

The Effects Of Pornography On Unethical Behavior In Business, Nathan W. Mecham, Melissa F. Lewis-Western, David A. Wood

Faculty Publications

Pornography is no longer an activity confined to a small group of individuals or the privacy of one’s home. Rather, it has permeated modern culture, including the work environment. Given the pervasive nature of pornography, we study how viewing pornography affects unethical behavior at work. Using survey data from a sample that approximates a nationally representative sample in terms of demographics, we find a positive correlation between viewing pornography and intended unethical behavior. We then conduct an experiment to provide causal evidence. The experiment confirms the survey—consuming pornography causes individuals to be less ethical. We find that this relationship is …

Implicit Attitudes And U.S. Tax Professionals’ Reliance On Offshore Tax Professionals’ Recommendations, Brian C. Spilker, Bryan W. Stewart, David A. Wood

Faculty Publications

Large accounting firms offshore a significant amount of tax work to professionals in India. Prior research suggests that individuals can have negative implicit attitudes toward people from different nationalities and that negative implicit attitudes can have undesired consequences. In this study, we measure a sample of U.S. tax professionals’ implicit attitudes toward Indian persons using an implicit association test (IAT) and assess whether the U.S. tax professionals respond differently to work produced by Indian versus U.S. tax professionals and whether implicit attitudes affect the U.S. professionals’ assessments of Indian tax professionals’ work product. We document that participants in our study …

Are Internal Audits Associated With Reductions In Perceived Risk?, Joseph V. Carcello, Marc Eulerich, Adi Masli, David A. Wood

Faculty Publications

We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the same company. This design allows us to isolate the importance of an internal audit while holding constant changes in risk due to the organization and time period. Based on ratings from the heads of audited and non-audited units, we find that managers of audited units perceive a greater decline in risk as well as a greater increase in performance compared to managers of non-audited units. We also find that companies that have …

Active Choice, Implicit Defaults, And The Incentive To Choose, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian

Faculty Publications

Home-delivered prescriptions have no delivery charge and lower copayments than prescriptions picked up at a pharmacy. Nevertheless, when home delivery is offered on an opt-in basis, the take-up rate is only 6%. We study a program that makes active choice of either home delivery or pharmacy pick-up a requirement for insurance eligibility. The program introduces an implicit default for those who don’t make an active choice: pharmacy pickup without insurance subsidies. Under this program, 42% of eligible employees actively choose home delivery, 39% actively choose pharmacy pick-up, and 19% make no active choice and are assigned the implicit default. Individuals …

Task Adherence: An Agentic Perspective On Task-Focused Dedication In An Interrupting Work Environment, Tanner Skousen, Justin Ames, James Gaskin

Faculty Publications

Purpose – Knowledge workers live and work in a technology-enabled, push-notification world full of interruptions that create information overload, often requiring these workers to utilize task switching as a mechanism to meet multiple competing tasks’ demands. Previous research has examined both the positive and, more often, negative effects from interruptions and task switching on knowledge workers’ performance. However, this paper aims to examine knowledge workers’ agentic approach to managing interruption signals and consequent task switching to remain dedicated to the task at hand.

Design/methodology/approach – Using an inductive grounded theory approach, we analyzed data from semi-structured interviews with knowledge workers …

The Roles Of Supervisory Support And Involvement In Influencing Scientists’ Job Satisfaction To Ensure The Achievement Of Sdgs In Academic Organizations, Majid Ghasemy, Isabel Maria Rosa-Díaz, James Eric Gaskin

Faculty Publications

Job satisfaction is the focus of this study, given its strategic importance, both to generate differentiation and competitive advantages, and to promote better and more sustainable results in organizations. Guided by the Affective Events Theory (AET), the interest is in analyzing the direct and indirect effects of supervisory support and involvement on job satisfaction and highlighting the implications of the academics’ emotions for sustainability-related policies and practices in academic environments. The context selected is the higher education (HE) sector in Malaysia for science disciplines, due to its socioeconomic relevance and its direct link to the Fourth Industrial Revolution (IR4), as …

Responsible Innovation In Organisations – Unpacking The Effects Of Leader Trustworthiness And Organizational Culture On Employee Creativity, Samuel Ogbeibu, Vijay Pereira, John Burgess, James Gaskin, Jude Emelifeonwu, Shlomo Y. Tarba, Ahmad Arslan

Faculty Publications

Ongoing changes in competitiveness and advancements in technology are challenging the ability of manufacturing firms to bring about responsible innovation in emerging economies. A crucial response to this situation involves supporting employee creativity as a strategy suited to foster responsible innovation. Prior research has established a positive correlation between employee creativity and responsible innovation. However, when attempting to promote employee creativity, firms are often faced with challenges to their organizational culture (OC), especially in the presence of limited employee trust in their leaders. Although, extant research has suggested a positive correlation between leader trustworthiness and employee creativity, little is known …

What Can Mental Health Teach Us About Social Media Screen Time Misestimation?, Mark Keith, Parker Nokes, Alexandra Spruill

Faculty Publications

Mobile platform providers have provided the ability to measure the time consumers spend on each app. This provides the opportunity to measure a consumer’s misestimation of their screentime which is a concept relevant to several mental health attributes such as depression, anxiety, and addiction. We provide additional evidence about the effect of objective screentime on mental health, but add a unique perspective on how screentime misestimation is determined by various mental health attributes. We collected data from a student sample (n=1005) who are from the demographic who most commonly use social media apps (18-29 yr olds). We measured our model …

Experiential Learning Through A Week-Long Information Systems Case Study, Madison Corbin, Cherileigh Leavitt, Degan Kettles, Greg Anderson

Faculty Publications

An experiential learning model known as INTEX (INTegrative EXercise) was implemented by the Information Systems Department at Brigham Young University. The purpose was to facilitate a team-based holistic learning experience in both content and application to supply a means of measuring student performance and further program development. In this paper, we explain how INTEX presents an adoptable experiential learning model, how INTEX is administered, and the extent to which INTEX fulfills each of its seven objectives based on student, alumni, and faculty feedback. Our main findings are: INTEX provides a compelling real-world case simulation, gives students an invaluable teamwork experience, …

Being Satisfied And Serving Communities As Outcomes Of Servant Leadership In The Academic Context: Policies Based On A Multi‑Level Structural Equation Model, Majid Ghasemy, Mahdi Akbarzadeh, James Eric Gaskin

Faculty Publications

There is a great emphasis on the importance of serving communities and the need to study servant leadership in recent higher education literature. Yet, academics’ community citizenship behavior has not been examined through applied research. To address these issues, our study aims at investigating the effects of two dimensions of servant leadership (behaving ethically and helping subordinates grow and succeed) on job satisfaction and community citizenship behavior. The context of our multi-level study is the Malaysian higher education. To estimate our theoretical model, we employed the EQS 6.4 statistical package and analyzed the data collected from 1876 lecturers from 120 …

Rigor, Relevance, And Practical Significance: A Real-Life Journey To Organizational Value, Joseph S. Valacich, Jeffrey L. Jenkins

Faculty Publications

In this essay, we describe a research journey focusing on how to analyze mouse cursor movements, typing fidelity, and data from other human-computer interaction (HCI) devices to better understand the end-user online experience. We begin by defining organizational value and how it relates to other aspects that researchers use to assess academic research quality. We then describe and contrast our research journey by demonstrating key research milestones: from achieving statistical significance to achieving practical significance and, finally, to reaching relevance to practice. We then explain how we crossed the chasm between academic research and technology commercialization (i.e., the last research …

Work–Leisure Blending: An Integrative Conceptual Review And Framework To Guide Future Research, Troy A. Smith, Marcus M. Butts, Stephen H. Courtright, Mat D. Duerden, Mark A. Widmer

Faculty Publications

Since the industrial revolution, work and leisure have largely been considered opposing domains. A growing number of organizations, however, enable and/or promote blending leisure activities into the workplace. Similarly, several conceptualizations across different disciplines examine how work and leisure can coexist. These different conceptualizations have yielded a rich but fragmented theoretical account of work–leisure blending. To address this problem, we provide a comprehensive theoretical integration of multiple literature streams where research has explored work–leisure blending. Further, we develop a tripartite dimensional framework designed to elucidate the central dimensions of work–leisure blending (i.e., segmentation– integration, unstructured–structured, and independent–interactive) undergirding this phenomenon. …

Soft Information And The Underpricing Of Reit Seasoned Equity Offerings, James C. Brau, J. Troy Carpenter, James E. Cicon, Shelly Howton

Faculty Publications

Using a sample of 1,429 seasoned equity offerings (SEOs) by real estate investment trusts (REITs), we use content analysis to test whether the soft information in a company’s offering prospectus influences SEO underpricing. After controlling for relevant variables, we find that companies that use more positive (negative) words in their filings are negatively (positively) related to SEO underpricing. We posit that in REIT SEOs more positive and fewer negative words decrease investor pricing uncertainty (fear) of the offer and as a result experience less underpricing.

State Anxiety Moderates The Association Between Motivations And Excessive Smartphone Use, Xi Shen, Hai-Zhen Wang, Detlef H. Rost, James Gaskin, Jin-Liang Wang

Faculty Publications

Excessive smartphone use has recently attracted researchers’ attention. Previous studies have suggested that state anxiety and motivations are important predictors of excessive smartphone use. However, few studies have investigated how motivations and state anxiety interact with each other, and the subsequent impact on excessive smartphone use. In the current study, based on the Compensatory Internet Use theory, we analyzed the moderating role of state anxiety on the relationship between two types of motivations (i.e. entertainment and social interaction) and excessive smartphone use. Using the Smartphone Addiction Scale for College Students (SAS-C), Smartphone Usage Motivation Scale and State Anxiety Scale (S-Anxiety), …

Methodological Variation In Empirical Corporate Finance, Todd Mitton

Faculty Publications

I document large variation in empirical methodology in corporate finance regressions in top finance journals. Although methodological variation allows for customization of empirical tests to fit specific theories, it can also enable excessive reporting of statistically significant results. For example, given discretion over ten routine methodological decisions, a researcher could report that over 70% of randomly generated variables are statistically significant determinants of leverage at the 5% level. The methodological decisions that impact statistical significance the most are dependent variable selection, variable transformation, and outlier treatment. I discuss remedies that can mitigate the negative effects of methodological variation.

Leveraging Stara Competencies And Green Creativity To Boost Green Organisational Innovative Evidence: A Praxis For Sustainable Development, Samuel Ogbeibu, Charbel Jose Chiappetta Jabbour, James Gaskin, Abdelhak Senadjki, Mathew Hughes

Faculty Publications

Radical technological advancements and the relentless progression of climate change compel organisations to ensure their workforce consistently exercise their creativity toward innovative green initiatives. These endeavours are essential to achieve the United Nations' (UN) sustainable development goals (SDGs). To do so, organisations require competencies fundamental to smart technologies, artificial intelligence, robotics and algorithms (STARA). STARA competencies are relevant for leaders to bolster green organisational innovative evidence (GOIE). GOIE can help to attract potential investors keen on advancing the UN's SDG agenda on environmental sustainability. However, eclipsed by a volatile environment, and despite the green innovation potential of several manufacturing organisations, …

Can User Interface Design Choices Alter Perceptions Of Time Passage?, James Gaskin

Faculty Publications

When a task is dull, time seems to unhelpfully dilate. This can have serious impacts on job satisfaction, burnout, and turnover – all of which impact employee well-being and the bottom line. Without changing the task, could a user interface take advantage of psychology-driven, theoretically-supported design decisions to make time seem to contract? If such is the case, we might, without much cost, partially alleviate employee suffering due to task fatigue and disinterest by making simple changes to the user interface. While psychology research and user interface design have intersected abundantly in extant literature, no study has empirically tested whether …

Determinants And Consequences Of Noncompliance With The 2013 Coso Framework, Kunsu Park, Juan Qin, Timothy Seidel, Jian Zhou

Faculty Publications

The Securities and Exchange Commission (SEC) requires firms to use a ‘‘suitable framework” as a basis for evaluating the effectiveness of internal control over financial reporting. The COSO 1992 framework was the most commonly used suitable framework until it was superseded by the COSO 2013 framework. Because strict compliance with the updated framework was not enforced by regulatory authorities, a nontrivial number of firms did not comply in a timely fashion. We investigate determinants and consequences of noncompliance with the COSO 2013 framework following the supersession of the COSO 1992 framework. We find that noncompliance is positively associated with proxies …

The Demand For Public Information By Local And Nonlocal Investors: Evidence From Investor-Level Data*, Travis Dyer

Faculty Publications

I examine the demand for public information by local and nonlocal investors. Using novel data on institutional investors' requests for financial information from the SEC, I document that investors acquire approximately 20% more financial information for their local investments. This pattern holds after controlling for investors’ 13(f) portfolio holdings. I further demonstrate that this pattern is concentrated in stocks eliciting behavioral biases as well as among investors with strong company relationships. Consistent with public information acquisition being more beneficial to local investors, I find that local investors exhibit both enhanced timeliness in acquiring public information and superior portfolio trading decisions …

Disclosure Sentiment: Machine Learning Vs Dictionary Methods, Richard Frankel, Jared Jennings, Joshua A. Lee

Faculty Publications

We compare the ability of dictionary-based and machine-learning methods to capture disclosure sentiment at 10-K filing and conference call dates. Like Loughran and McDonald (2011), we use returns to assess sentiment. We find that measures based on machine learning offer a significant improvement in explanatory power over dictionary-based measures. Specifically, machine-learning measures explain returns at 10-K filing dates, while measures based on the Loughran and McDonald dictionary only explain returns at 10-K filing dates during the time period of their study. Moreover, at conference-call dates, machine-learning methods offer an improvement over the Loughran and McDonald dictionary method of a greater …

Sibling Relationship Quality In The Context Of Digital Leisure And Geographic Distance For College-Attending Emerging Adults, Eric K. Layland, Jerrica O. Peets, Camilla Hodge, Mikala Glasa

Faculty Publications

During the transition to adulthood, emerging adults may experience new geographic distance separating them from their siblings. Digital leisure is common among emerging adults and may serve as a tool for maintaining relationship quality across geographic distance. Using qualitative data, we created individual digital leisure diversity scores for four categories of digital leisure identified from a constructed taxonomy. The sample included 185 college-attending emerging adults (Mage ¼ 20.1, 64.3% male). Analysis of variance indicated dyadic gender differences in social media and gaming. Digital leisure diversity was associated with greater levels of affective and cognitive sibling relationship quality, regardless of sibling …

Were There Fire Sales In The Rmbs Market?, Craig B. Merrill, Taylor Nadauld, René M. Stulz, Shane M. Sherlun

Faculty Publications

Many observers have argued that the fall in RMBS prices during the crisis was partly caused by fire sales. Using a unique dataset of RMBS transactions for insurance compa- nies, we show evidence supportive of a role, at the transaction level, of forced sales that occurred at discounted prices relative to fundamentals, and find that the RMBS market behaved as a whole as would be expected in the presence of fire sales. We show that risk- sensitive capital requirements and mark-to-market accounting can jointly create incentives for financial institutions subject to adverse capital shocks to sell stressed securities.

Market Predators, Lauren Cohen, Karl B. Diether, Christopher Malloy

Faculty Publications

We find evidence of predatory trading in the corporate bond market. Exploiting novel data on the short selling behavior of institutional investors, we demonstrate that short sellers target those bonds likely to experience the largest negative events in the future: bonds about to be downgraded to junk status, and specifically those held by insurance companies and other institutions that are required to liquidate when bonds fall to junk status. We show that shorting in these bonds predicts large negative returns, which largely reverse over the next year. Short sellers’ trading activity is premeditated: they build up large short positions in …

Crowdfunding Deception Perception: What Makes Would-Be Contributors Perceive Fakeness In Crowdfunding Campaigns?, James Gaskin, Mark J. Keith, Thomas O. Meservy, Nathan W. Twyman, Taylor M. Wells

Faculty Publications

This study illuminates the signals that cause contributors to perceive realness and fakeness in a crowdfunding campaign. A grounded theory approach involving 818 human evaluations of 225 COVID-19-related charitable crowdfunding campaigns identified the validity of the campaign’s stated need, its descriptive detail and writing quality, and having a reputable campaign sponsor as important signals of realness and/or deception, as well as other factors. Commonly used NLP measures have heavy overlap with these reported signals, but by themselves reflect roughly half of the variance explained. Crowdfunding platforms can use this information to help campaign organizers improve public perceptions.

Detecting Noncompliant Behavior In Organizations: How Online Survey Responses And Behaviors Reveal Risk, Jeffrey L. Jenkins, Jospeh S. Valacich, Aaron F. Zimbelman, Mark F. Zimbelman

Faculty Publications

Ensuring organizational regulatory and legal compliance is a challenging, high-stakes management task. Overlooking or underestimating noncompliance in organizations can result in substantial fines, damage to a company’s reputation, and, ultimately, loss of business. To help alleviate this risk, we explore whether organizations can assess noncompliance by monitoring users’ answers and related mouse cursor movements in an intelligent online questionnaire. Namely, we propose that noncompliant (compared with compliant) individuals will experience more cognitive dissonance on questions about (1) what constitutes noncompliance behavior and (2) what consequences for noncompliance are appropriate. We predict that increased cognitive dissonance in noncompliant individuals will influence …

An Empirical Analysis Of Video Games And Social Media On Learning In An Information Systems University Class, Heber C. Brau, James C. Brau, James Gaskin

Faculty Publications

Prior research by Brau, et al. (2016, 2017) identifies factors that correlate with university student course grades. We employ the same research structure as the Brau, et al. papers with the innovation of adding dozens of questions that deal with video game and social media usage. Extant research argues that time spent on video gaming and using social media can: 1) hurt student grades, 2) help student grades, or 3) have no impact on student grades. We test the video game and social media impact hypotheses using a survey of over 500 college students in an Introduction to Information Systems …