Business Commons^™

Overselling Winners And Losers: How Mutual Fund Managers' Trading Behavior Affects Asset Prices, Li An, Bronson Argyle

Faculty Publications

We link a seemingly biased trading behavior to equilibrium asset prices. U.S. equity mutual fund managers tend to sell both their big winners and big losers. This selling pressure pushes down current prices and leads to higher future returns; aggregating across funds, we find that securities for which investors have large unrealized gains and losses outperform in the subsequent month. Funds with larger turnover, shorter holding period, and higher expense ratios, are significantly more likely to manifest this trading pattern, and unrealized profits from such funds have stronger return predictability. This cross-sectional return predictability is difficult to reconcile with alternative …

Sale-Leaseback Transactions: Price Premiums And Market Efficiency, C. F. Sirmans, Barrett A. Slade

Faculty Publications

Sale-leaseback transactions are ubiquitous in real estate markets in the United States with annual volume estimated to be greater than $7 billion. However, there is no evidence concerning the price impact of such transactional arrangements. Using a data set of sale-leaseback transactions, this study examines the price impact on commercial property transactions across seven markets. The findings reveal that transactions structured as saleleasebacks occur at significantly higher prices than market transactions. In addition, after accounting for income differentials, buyers and sellers are appropriately pricing the transactions resulting in no undue advantage to either party, that is, the expected price premium …

Sizing Up Corporate Restructuring In The Covid Crisis, Robin Greenwood, Benjamin Iverson, David Thesmar

Faculty Publications

In the wake of the COVID-19 pandemic, the financial and legal system will need to deal with a surge of financial distress in the business sector. Some firms will be able to survive, while others will face bankruptcy and thus need to be liquidated or reorganized. Many surviving firms will need to be downsized or acquired. In normal times, this triage is supported by the court system, banks, and financial markets. The goal of this paper is to size up the coming surge of financial distress, list the challenges it presents in the current environment, and analyze potential policy solutions. …

Provocation And Related Subjective Experiences Along The Dark Tourism Spectrum, Andrew Lacanienta, Gary Ellis, Brian Hill, Patti Freeman, Jingxian Jiang

Faculty Publications

We examined relations between ‘darkness’ of dark tourism sites, provocation, and select indicators of the quality of visitors’ immediate subjective experiences. Experience observations (N = 101) were collected from tourists who visited Auschwitz (Krakow), Schindler’s Factory (Krakow), Execution Square (Paris), and a ghost tour (Edinburgh). Research participants completed measures of provocation and quality of experience at the end of their visits to each site. Hypotheses were founded in four theories: self-determination theory, cognitive dissonance theory, arousal theory, and the theory of structured experience. These hypotheses proposed that particular experience outcomes vary according to the ‘darkness’ of the dark tourism site. …

Rethinking Leisure Time Use Metrics: Greater Diversity In Shared Sibling Leisure Is Associated With Higher Relationship Quality During Emerging Adulthood, Eric K. Layland, Camilla Hodge, Mikala Glaza, Jerrica O. Peets

Faculty Publications

Leisure diversity—the total number of unique leisure categories shared within a sibling dyad—may vary according to sibling characteristics (e.g., sibling gender, age difference) and predict sibling relationship quality. Using triangulated lists, brief narratives, and focus groups, we constructed a taxonomy of shared sibling leisure in emerging adulthood and then calculated individual leisure diversity scores. The sample (N ¼ 185) included college-attending emerging adults with an average age of 20.1 years (35.7% female). Taxonomic analysis suggested 19 categories of shared sibling leisure. Analyses of variance indicated differences by dyadic gender composition in endorsement rates of select leisure categories and average levels …

Dealing With Dysfunction: Negotiating With Difficult Individuals, Marc-Charles Ingerson, Kristen Bell Detienne, Jill M. Hooley, Nathan A. Black

Faculty Publications

Workplace negotiations often present daunting challenges. The negotiation process can test relationships and place reputations at risk. Moreover, in some situations, the difficulty and stress involved in routine negotiations become magnified. Approximately ten percent of working adults have personality styles or behavioral tendencies that can make interactions with them especially challenging. Identifying, understanding, and dealing with personality dysfunction in the negotiation process is therefore a critically important skill (Kessler et al. 2005; Eddy 2018). Today’s negotiators need to be able to recognize and interact with people who have difficult and dysfunctional personality traits.

Unfortunately, many of those on the receiving …

In Situ Engagement During Structured Leisure Experiences: Conceptualization, Measurement, And Theory Testing, Gary D. Ellis, Jingxian Jiang, Patti A. Freeman, Andrew Lacanienta, Elizabeth J. Ellis

Faculty Publications

We conducted an experiment to test theoretical propositions relating coherence, personalization, and provocation to in-situ engagement, deep experience, delight, and perceived value of time spent. Four hundred adults from a national panel viewed one of eight versions of a video centered on a character in Victor Hugo’s classic novel Les Miserables, and then completed measures of engagement, deep experience, delight, perceived value of time spent, preexisting familiarity with the story, and the subjective experience of provocation. Each video represented a unique combination of presence or absence of the three hypothesized determinants: coherence, personalization, and provocation. Coherence, personalization, and preexisting familiarity …

Factors That Facilitate Or Impair Kinesic And Vocalic Nonverbal Behaviors During Interpersonal Deception, Judee K. Burgoon, Lauren M. Hamel, J. Pete Blair, Nathan W. Twyman

Faculty Publications

Nonverbal demeanor has long been thought to be a high-fidelity display window into a person’s inner self. At the same time, nonverbal behaviors are thought by laypeople to be reliable indicators of dissembling. In the realm of deception, both of those beliefs are true—and false. Humans can choose to reveal their personal identity, affiliations, attitudes, and behavioral inclinations through their nonverbal presentation of self. But, as the adaptive creatures that they are, humans also use their nonverbal actions to fabricate, conceal, and evade. In this respect, deception can disguise the true self and yet can also betray the truth. In …

Separate But Not Equal: Toward A Nomological Net For Migrants And Migrant Entrepreneurship, Lisa Jones Christensen, Arielle Badger Newman, Heidi Herrick, Paul Godfrey

Faculty Publications

This paper considers migrants on a continuum in terms of voluntariness of departure and intended timeframe in the new location. The corresponding 2 x 2 framework offers a theory-driven typology with which to consider four groups: exiles, sojourners, immigrants, and refugees. We apply the framework to the topic of migrant entrepreneurship, demonstrating the need for separate consideration of refugee and immigrant entrepreneurs. We propose ways in which types of capital differ between the two and discuss how differences affect entrepreneurial endeavors. The framework extends scholarship on migrant entrepreneurship, while providing a nomological net for improved theorizing for a range of …

Real Effects Of Search Frictions In Consumer Credit Markets, Bronson Argyle, Taylor Nadauld, Christopher Palmer

Faculty Publications

We establish two underappreciated facts about costly search. First, unless demand is perfectly inelastic, search frictions can result in significant deadweight loss by decreasing consumption. Second, whenever cross-price elasticities are non-zero, costly search in one market also affects quantities in other markets. As predicted by our model of search for credit under elastic demand, we show that search frictions in credit markets contribute to price dispersion, affect loan sizes, and decrease final-goods consumption. Using microdata from millions of auto-loan applications and originations not intermediated by car dealers, we isolate plausibly exogenous variation in interest rates due to institution-specific pricing rules …

Augmenting Environmental Sustainability Through The Exchange Of Green Creative Ideas –Evidence From An Emerging Economy, Samuel Ogbeibu, Abdelhak Senadjki, Jude Emelifeonwu, James Gaskin, Vijay Pereira

Faculty Publications

Leader trustworthiness and perceived green reputation are becoming increasingly important for driving the exchange of green creative ideas within a team. The effective exchange of green creative ideas is relevant for building organisational strategies that align with the United Nations global compact envi- ronmental sustainability principles and helps advance the achievement of the sustainable development goals (SDG). However, evidence from emerging countries is limited. This paper contributes by investi- gating the case of the Nigerian manufacturing sector, wherein organisations have achieved little success in cultivating the effective exchange of green creative ideas. Through the lens of the social exchange and …

Using Accelerometer And Gyroscope Data In Common Mobile Devices To Assess Credibility, Joseph S. Valacich, Jeffrey L. Jenkins, Michael D. Byrd, David Kim, Manasvi Kumar, Parker A. Williams

Faculty Publications

An observational study examined the efficacy of using accelerometer and gyroscope (i.e., orientation) data from standard mobile devices to assess response credibility. Study participants played twenty rounds of a card game where they self-reported whether they won or lost each round. Participants received a base payment but could gain increased “bonus” payments by cheating. After the card game, participants were asked a “Yes-No” question whether they cheated while their orientation data was captured. We predicted that people concealing information about an adverse behavior (i.e., cheating), would result in differences in both absolute magnitude changes in acceleration and in rotation, as …

Research Relevance And Research Productivity, Jared Moon, David A. Wood

Faculty Publications

Research in accounting education has evolved to include, among other areas, research relevance, faculty research productivity, and the use of journal lists. These topics offer new areas for research including investigating the benefits and risks of relevant/irrelevant research, how effectively faculty research is evaluated, the potential consequences of using journal lists, and much more. Although these areas have significant and wide‐ranging effects on faculty, much more empirical data is needed to inform decision making. This paper highlights these issues and makes suggestions for additional research to help the academy make better decisions by using data‐driven research findings.

Too Busy To Be Manipulated: How Multitasking With Technology Improves Deception Detection In Collaborative Teamwork, Nathan W. Twyman, Jeffrey G. Proudfoot, Ann-Frances Cameron, Eric Case, Judee K. Burgoon, Douglas P. Twitchell

Faculty Publications

Deception is an unfortunate staple in group work. Guarding against team members’ deceptive tactics and alternative agendas is difficult and may seem even more difficult in technology-driven business environments that have made multitasking during teamwork increasingly commonplace. This research develops a foundation for a nuanced theoretical understanding of deception detection under these conditions. The intersection of information technology multitasking and deception detection theories is shown to produce various and sometimes competing ideas about how this type of multitasking might affect truthfulness assessments in real-time teamwork. A laboratory study involving a collaborative game helped evaluate the different ideas using manipulated deception …

Successful Moderation In Online Patient Communities: Inductive Case Study, Tanner Skousen, Hani Safadi, Colleen Young, Elena Karahanna, Sami Safadi, Fouad Chebib

Faculty Publications

Background: Online patient communities are becoming more prevalent as a resource to help patients take control of their health. However, online patient communities experience challenges that require active moderation.

Objective: This study aimed to identify the challenges of sustaining a thriving online patient community and the moderation practices employed to address the challenges and manage the online patient community successfully.

Methods: An inductive case study of Mayo Clinic Connect was analyzed using the grounded theory methodology. Insights for the analysis were obtained from semistructured interviews with community managers and community members. Secondary data sources, such as community management documents, observational …

Team Design Thinking, Product Innovativeness, And The Moderating Role Of Problem Unfamiliarity, Varun Nagaraj, Nicholas Berente, Kalle Lyytinen, James Gaskin

Faculty Publications

Team design thinking in new product development (NPD) refers to a set of design-oriented principles that can be embedded in the everyday routines of NPD teams. We theorize that team design thinking enables NPD teams to develop more innovative products––products that are useful and novel––by reducing the routine and cognition-based inertia that constrains the team’s innovativeness. Through a study of 247 NPD projects, we investigate the relationships between team design thinking, product utility, and product novelty. Further, we also explore whether the team’s unfamiliarity with product contexts influences these relationships. Findings show that team design thinking is positively associated with …

The Narrowness Of Shorting Profitability, Karl B. Diether

Faculty Publications

I examine the persistence in stock level short-selling profitability by using contract level shorting data. I do find that short-sellers are profitable on average using an approach that takes into account the exact timing of the opening and closing of short positions. But I also find that this profitability is driven by the set of stocks for which short-sellers previously had strongly profitable outcomes. I find that if short-selling contracts for a given stock are profitable in the last six months that on average short sellers continue to make profitable trades in that stock in the future. For stocks with …

Do Physician Incentives Increase Patient Medication Adherence?, Edward Kong, John Beshears, David Laibson, Brigitte C. Madrian, Kevin Volpp, George Loewenstein, Jonathan Kolstad, James J. Choi

Faculty Publications

Objective: To test the effectiveness of physician incentives for increasing patient medication adherence in three drug classes: diabetes medication, antihypertensives, and statins.

Data Sources: Pharmacy and medical claims from a large Medicare Advantage Prescription Drug Plan from January 2011 to December 2012.

Study Design: We conducted a randomized experiment (911 primary care practices and 8,935 nonadherent patients) to test the effect of paying physicians for increasing patient medication adherence in three drug classes: diabetes medication, antihypertensives, and statins. We measured patients’ medication adherence for 18 (6) months before (after) the intervention.

Data collection/extraction methods: We obtained data directly from the …

Estimating The Need For Additional Bankruptcy Judges In Light Of The Covid-19 Pandemic, Benjamin Iverson, Jared A. Ellias, Mark Roe

Faculty Publications

In this Article, we present the first effort to use an empirical approach to bolster the capacity of the bankruptcy system during a national crisis—here, the COVID-19 crisis. We provide two analyses, one using data from May 2020, very early on in the crisis, and another using data from September 2020, closer to the publication of this Article. Our analysis is based on an empirical observation: Historically, an increase in the unemployment rate has been a leading indicator of a rise in bankruptcy filings. If this historical trend continues to hold, the May 2020 unemployment rate of 13.3% would have …

Human Capital In Strategy 2008-2018, David Kryscynski, Shad Morris

Faculty Publications

As strategic human capital scholars we have been deeply influenced by the work of Russ Coff (1997, 1999) and other notable scholars (Barney, 1991; Castanias & Helfat, 1991, 2001, Lepak & Snell, 1999, 2002; Lippman & Rumelt, 1982) who have pushed us to think about human assets differently from other inanimate assets in strategy theory. For this virtual special issue we simply asked a question of recently published research on human capital in strategy: what are the dominant human capital themes in our premier strategy journal? This question guided a few assumptions, which then determined which articles we included in …

The Effect Of Audit Materiality Disclosures On Investors’ Decision Making*, Brant E. Christensen, Aasmund Eilifsen, Steven M. Glover, William F. Messier Jr.

Faculty Publications

Recent reviews of the academic literature indicate that little is known regarding how users evaluate the materiality levels auditors use or respond to quantitative materiality disclosure. Regulators around the world have taken different stances on whether materiality should, or should not, be disclosed in the auditor’s report. In response to the dearth of research on these policy decisions, we examine the effect of audit materiality disclosures, or lack thereof, on professional investors’ decision making across different investment contexts (debt vs. equity, public vs. private). Our study is designed to test global audit public policy and as such our hypotheses are …

Addressing The Gap In Consumer Protection For Small Business Consumers Through A Multiple Method Research Program, Glenn L. Christensen, Sterling A. Bone, Jerome D. Williams

Faculty Publications

For more than a decade we, as academic researchers, have investigated the experience of small business customers seeking financial products for their businesses. We have employed a variety of research methodologies to explore the “lived” experiences of small business owners seeking financing, including matched-paired mystery shopping, video ethnography, depth-interviews, controlled experiments, and surveys. From this research, we show that with limited financial sophistication, entrepreneurial small-business consumers approach the financial marketplace much more like retail financial consumers than sophisticated, corporate customers. Furthermore, we find that the customer service received by these small business customers seeking small business bank loan products is …

Innovative Accounting Interviewing: A Comparison Of Real And Virtual Accounting Interviewers, Matthew D. Pickard, Ryan Schuetzler, Joseph S. Valacich, David A. Wood

Faculty Publications

Recent technological advances have made it possible to create automated, virtual interviewers, called embodied conversational agents (ECAs). We study how an ECA compares to a human interviewer in three experiments. In experiment 1, we show that two theoretically motivated factors—making the ECA facially and vocally similar to the interviewee—result in the ECA performing similarly to or better than human interviewers for six antecedents of disclosure quality. In two additional experiments, we show that employees are on average between 21 and 32 percent more likely to disclose violating internal controls to an ECA than to a human interviewer, even if the …

Thinking Outside The Checkbox: Examining The Benefits Of Depression In The Workplace, Tyler L. Jensen

Intuition: The BYU Undergraduate Journal of Psychology

No abstract provided.

The Prosperity Paradox, A Review, Ryan Stenquist

Marriott Student Review

No abstract provided.

"Flourish" By Martin Seligman, A Review, Sarah J. Cummings

Marriott Student Review

In my MCOM 320 class we had to do a book report. I chose a book called "Flourish" because it interested me. Little did I know how much it would end up helping me during my college experience.

Nine Things Successful People Do Differently, A Review, Ben Randle

Marriott Student Review

“Nine Things Successful People Do Differently” by Heidi Grant Halvorson is a short informational business book that cuts right to the chase. Halvorson successfully synthesizes different behavioral research studies to offer tips on exactly what her title describes: things successful people do differently.

Podcast Spotlight: Noella Moshi And Misan Rewane On Wave, Mark Sherman

Marriott Student Review

No abstract provided.

Buzzwords, Ryan Stenquist

Marriott Student Review

No abstract provided.

Editor's Letter, Marianna Richardson

Marriott Student Review

No abstract provided.