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Full-Text Articles in Business
Ira Disclosure Framing Effects On Purchase Decisions, Eugene Cautillo, Mary M. Long
Ira Disclosure Framing Effects On Purchase Decisions, Eugene Cautillo, Mary M. Long
Atlantic Marketing Journal
This research examines the use of disclosures included in IRA advertisements to determine their impact on purchase decisions. Disclosures were manipulated through different framing language to examine the investor’s risk perception. The Hayes Process Model was used to test the significance of investor risk perception and risk propensity (investor’s likelihood to act on risk perception) related to framing manipulation and ultimately, the purchase decision. The level of risk propensity was then used to assess the impact on the purchase decision for investors with varying sophistication levels. Additionally, the investor’s sophistication level, determined via a series of investment questions, was also …
Intangible Investments And The Pricing Of Corporate Sga Expenses, Rongbing Huang, Gim S. Seow, Joe S. Shangguan
Intangible Investments And The Pricing Of Corporate Sga Expenses, Rongbing Huang, Gim S. Seow, Joe S. Shangguan
Faculty and Research Publications
This study examined whether the market fully prices the reported Selling, General, and Administrative (SGA) expenses when this item includes an intangible investment component. For a sample of intangible investment-intensive firms, we showed that their SGA expenses benefit future operating performances. Evidence suggests some degree of market inefficiency in the pricing of SGA expenses and the intangible investment component. Furthermore, the financial analysts do not appear to appreciate fully the future benefits of the component in their earnings forecasts. Finally, the pertinent disclosures in firms’ annual reports are so inadequate as to attenuate the market mispricing, suggesting a significant room …
Just Say 'No', Mark S. Beasley, Joseph V. Carcello, Dana R. Hermanson
Just Say 'No', Mark S. Beasley, Joseph V. Carcello, Dana R. Hermanson
Faculty and Research Publications
The article discusses the prevention of financial fraud within corporations and businesses in the United States. The types of individuals named in the U.S. Securities and Exchange Commission (SEC) files are examined. Different fraud techniques are looked at, including sham sales, the recording of conditional sales, and unauthorized shipments. The author discusses the status of firms after fraud disclosure and the implications it has for finance professionals.