Business Commons^™

Venture Capitalists And Closely Held Ipos: Lessons For Family-Controlled Firms, Joseph H. Astrachan, Daniel L. Mcconaughy

Faculty and Research Publications

This study examines how the presence of venture capitalists (VCs) in closely held IPOs relates to their performance. It also identifies other factors that are related to the performance of closely held IPOs. Closely held firms in this study had an average of 88% insider ownership before the IPO. In general, we find that closely held IPOs benefit from associations with VCs. This finding suggests that VCs' outside expertise and connections are valuable assets. Because it takes time for VCs to effect changes and because beneficial changes generally occur gradually, firms contemplating IPOs must plan well in advance to maximize …

Hospitals And The Web: A Maturing Relationship, Daniel Fell, C. David Shepherd

Faculty and Research Publications

How are hospitals using the Internet in marketing today? Where are health care marketers focusing their online efforts?What returns are marketers seeing from their Internet initiatives and investments? These are some of the questions we have been tracking since 1995 when we conducted the first-ever study to examine the ways that hospital marketers around the country were using the Internet and other emerging technology to promote their organizations. In the most recent survey, we look at what health care marketers are doing online and take the pulse of an industry grappling with rapid change and as yet unproven Internet strategies.

An Empirical Examination Of The Price-Dividend Relation With Dividend Management, Lucy F. Ackert, William C. Hunter

Faculty and Research Publications

Some recent empirical evidence suggests that stock prices are not properly modeled as the present discounted value of expected dividends. In this paper, we estimate a present value model of stock price that is capable of explaining the observed long-term trends in stock prices. The model recognizes that firm managers control cash dividend payments. The model estimates indicate that stock price movements may be explained by managerial behavior.

Top 10 Audit Deficiencies, Mark S. Beasley, Joseph V. Carcello, Dana R. Hermanson

Faculty and Research Publications

The article focuses on financial statement fraud based on cases wherein the U.S. Securities and Exchange Commission sanctioned auditors for their association with fraudulent financial statements. All of the cases involved public companies, most of which engaged ill fraudulent financial reporting. Only a few engaged in misappropriation of assets or defalcation. The most common problem, alleged in 90% of the cases, was the auditor's failure to gather sufficient evidence. In some instances, this failure was pervasive throughout the engagement while in other instances the allegations were more specific. For example, many of the cases involved inadequate evidence in the areas …

An Experimental Study Of Circuit Breakers: The Effects Of Mandated Market Closures And Temporary Halts On Market Behavior, Lucy Ackert, Bryan K. Church, Narayanan Jayaraman

Faculty and Research Publications

This paper analyzes the effect of circuit breakers on price behavior, trading volume, and profit-making ability in a market setting. We conduct nine experimental asset markets to compare behavior across three regulatory regimes: market closure, temporary halt, and no interruption. We find that the presence of a circuit breaker rule does not affect the magnitude of the absolute deviation in price from fundamental value or trading profit. The primary driver of price behavior is information. By comparison, trading activity is significantly affected by the presence of a circuit breaker. Market participants advance trades when a trading interruption is imminent.

An E-Commerce Systems Integration Framework, Ernest A. Capozzoli, Sheb L. True

Faculty and Research Publications

The success of e-commerce activity is directly affected by system integration efforts associated with traditional back office and web-based systems. The potential benefits of enterprise-wide e-commerce activities to an organization emphasize the need for system integration beyond individual sales transactions. Unfortunately, many organizations are not capitalizing on the synergistic advantages of integrated systems. Despite the apparent lack of integration, some organizations are attempting to coordinate such customer activities. Planning for and integrating e-commerce technologies are essential to an organization's survival.

2001 - The Sixth Annual Symposium Of Student Scholars

Symposium of Student Scholars Program Books

The full program book from the Sixth Annual Symposium of Student Scholars, held on March 30, 2001. Includes abstracts from the presentations and posters.

New Evidence On The Structuring Of Ceo Incentive Pay Ratios, Rajaram Veliyath, James J. Cordeiro

Faculty and Research Publications

The model examines both determinants of CEO incentive pay ratios that are controllable by the CEO, and those that are less controllable, based on a sample of 316 Fortune 500 firms in 1992. Firm diversity, firm growth opportunities, outside blockholdings, and the number of analysts following the firm were positively related to CEO incentive compensation ratios, while firm unsystematic risk, CEO stockholdings, and industry regulation had a negative impact. Finally, industry-specific influences were evident on incentive compensation ratios.

Uncertain Litigation Cost And Seller Behavior: Evidence From An Auditing Game, Ping Zhang, Bryan K. Church, Lucy Ackert

Faculty and Research Publications

Investigates difficulties that arise in estimating expected litigation costs in an auditing game in the United States. Effect of effort level on certain and uncertain costs of performing the engagement; Frequency of observed fee offers below the total expected cost of an engagement; Institutional arrangements and damage-sharing regimes; Theoretical and behavioral predictions.