Business Commons^™

An Empirical Note On Regionalization And Globalization, Syed H. Akhter, Colleen Beno

Marketing Faculty Research and Publications

Purpose – Is it regionalization or globalization that more accurately depicts the state of the global economy? Exports and foreign direct investments (FDI) data are analyzed with the aim of answering the question and determining how intra- and inter-regional integration has changed over time.

Design/methodology/approach – To address the research questions, this paper covers the following. First, it takes a longitudinal perspective in examining the changes taking place in exports and FDI at the regional level. Second, it draws strategic business and marketing implications of this development.

Findings – The results show a trend toward regionalization in the Quad (North …

Information Systems Skills Differences Between High-Wage And Low-Wage Regions: Implications For Global Sourcing, Kate Kaiser

Management Faculty Research and Publications

Developing Information Systems (IS) skills for a company’s workforce has always been challenging, but global sourcing growth has caused the determination of needed IS skills to be more complex. The increased use of outsourcing to an IS service provider and from high-wage regions to low-wage regions has affected what IS skills are required globally and how to distribute the workforce to meet these needs. To understand what skills are needed in locations that seek and those that provide outsourcing, we surveyed IS service provider managers in global locations. Results from 126 reporting units provide empirical evidence that provider units in …

An Effective And Efficient Analytic Technique: A Bootstrap Regression Procedure And Benford's Law, Ikseon Suh, T. Christopher Headrick, Sandra Minaburo

Accounting Faculty Research and Publications

No abstract provided.

The Effects Of Disclosure Type And Audit Committee Expertise On Chief Audit Executives’ Tolerance For Financial Misstatements, Carolyn S. Norman, Jacob M. Rose, Ikseon Suh

Accounting Faculty Research and Publications

This study involves an experiment where 73 Chief Audit Executives and deputy Chief Audit Executives determine the amount of adjustment required to correct a misstatement. We manipulate the financial reporting location of the misstatement (recognized vs. disclosed) and the level of audit committee expertise (high vs. low). The results indicate that financial reporting location has significant effects on internal auditors’ decisions to correct misstatements. Specifically, internal auditors are more willing to waive disclosed misstatements relative to recognized misstatements. Contrary to expectations, the results do not indicate that increased audit committee expertise and associated increases in audit committee members’ perceived powers …

Examining An Online Investment Research Service: The Motley Fool, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

The Motley Fool has been described as “the most popular Internet stock chat website” (Hirschey et al, Financial Analysts Journal, 1999). Per the company‟s website, the mission of the privately-held multimedia financial services company is to educate, amuse, and enrich” in order “to build the world‟s greatest investment community” (www.fool.com/press/about.htm). The Motley Fool notes that their products are designed to “help people take control of their financial lives”. While other internet financial services exist, this article examines the performance of the investment services/advice provided by The Motley Fool (TMF) because of its notoriety. We use investment publications, information posted on …

Foundations In Wisconsin: A Directory [30th Ed. 2011], Mary C. Frenn, Jeremy Blackwood, Anne Carpenter, Nathan Lunsford, Sarah Martin

Foundations in Wisconsin: A Directory

The 2011 edition of Foundations in Wisconsin marks the 30^th production of the print directory and the 11^th year of the online version (www.wifoundations.org). The directory is designed as a research tool for grantseekers interested in locating information on private, corporate, and community foundations registered in Wisconsin. Each entry in this new edition has been updated or reviewed to provide the most current information available. Most of the data was drawn from IRS 990-PF tax returns filed by the foundations. Additional information was obtained from surveys, foundation Web sites, annual reports, and newsletters.

While the national economic downturn …

The Effect Of Taxes On Multinational Debt Location, Matteo P. Arena, Andrew H. Roper

Finance Faculty Research and Publications

We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in 59 countries. We analyze firms' marginal decisions of where to issue debt to investigate the influence of a comprehensive set of tax-related effects, including differences in personal and corporate tax rates, tax credit and exemption systems, and bi-lateral cross-country withholding taxes on interest and dividend payments. Our results show that differences in personal and corporate tax rates, the presence of dividend imputation or …

A Decision Model For E-Commerce-Enabled Partial Market Exit, Siddhartha Syam, Amit Bhatnagar

Management Faculty Research and Publications

Struggling retail chains often try to recover profitability by closing some of their stores. The challenge in this strategy lies in determining how many stores to close, as store exit has implications for both the customers and the supply chain. After a store closes, its customers are lost forever to the competition, unless there is a surviving open store nearby or an electronic alternative such as an e-store. From the supply chain perspective, after a store closes, its supporting regional distribution center is left with less business, and thus reduced viability. This paper develops a decision support model to study …

Understanding How Graphic Pictorial Warnings Work On Cigarette Packaging, Jeremy Kees, Scot Burton, J. Craig Andrews, John Kozup

Marketing Faculty Research and Publications

The 2009 Family Smoking Prevention and Tobacco Control Act requires cigarette packages to contain stronger warnings in the form of color, graphic pictures depicting the negative health consequences of smoking. The authors present results from a between-subjects experiment with more than 500 smokers that test (1) the effectiveness of pictorial warnings that vary in their graphic depiction of the warning and (2) an underlying mechanism proposed to drive potential effects of the manipulation of the graphic depiction. The findings indicate that more graphic pictorial warning depictions strengthen smokers’ intentions to quit smoking. Recall of warning message statements is reduced by …

Can Corrective Ad Statements Based On U.S. V. Philip Morris Usa Inc. Affect Consumer Beliefs About Smoking?, Andrea Heintz Tangari, Jeremy Kees, J. Craig Andrews, Scot Burton

Marketing Faculty Research and Publications

To comply with the court's ruling in U.S. v. Philip Morris USA Inc., tobacco companies must fund a large advertising campaign to 'correct' smoking beliefs about which consumers may have been misled as a result of past deceptive practices of tobacco companies. The authors use an ad copy experiment to examine (1) the effects of different versions of corrective ad statements that plaintiff intervenors submitted to the court on multi-item belief measures and (2) the impact of the ad versions and beliefs on general attitudes toward smoking across current adult smokers and nonsmokers. The tested ad versions include a …

The Termination Of Subprime Hybrid And Fixed Rate Mortgages, Anthony Pennington-Cross, Giang Ho

Finance Faculty Research and Publications

Adjustable-rate and hybrid loans have been a larger component of subprime mortgage lending in the mortgage market than prime lending. The typical adjustable-rate loan in subprime is a hybrid of fixed and adjustable characteristics in which the first 2 years are fixed and the remaining 28 years adjustable. Hybrid loans terminate at elevated probabilities even before the first adjustment date. Hybrid loan terminations are sensitive to interest rates and teaser rates (payment shocks). Default probabilities increase dramatically when payment shocks are mixed with low or no equity in the home. This is the mixture of events that helped to trigger …

The Integrative Justice Model For Marketing To The Poor: An Extension Of S-D Logic To Distributive Justice And Macromarketing, Gene R. Laczniak, Nicholas J. C. Santos

Marketing Faculty Research and Publications

As multinational corporations (MNCs) increasingly turn their attention to the fast growing markets of China, India, Brazil, and other developing areas, the question of fair treatment of consumers and other residents of those areas is more intensively debated than ever before. In essence, issues of "distributive justice" come to the fore, that is, are the benefits and burdens of rapid economic development being fairly allocated among the parties and stakeholders to the expanded economic transactions? In response to this question, the authors have postulated a detailed normative model for ethically marketing to impoverished consumer segments; they label their model, the …

The Impact Of Passing The Professional In Human Resources Exam On Early Career Success For Undergraduates Entering The Human Resource Field, Scott W. Lester, Jennifer Mencl, Cheryl Maranto, Kristina A. Bourne, Timothy J. Keaveny

Management Faculty Research and Publications

This study investigates the impact of passing the Professional in Human Resources (PHR) certification exam on the early career success of recent college graduates. Data were gathered from alumni of three Midwestern universities who earned an undergraduate degree in business administration (i.e., BBA) with a major in human resources. The survey was designed to measure early career success indicators including finding a job in the HR field, starting salary, and number of promotions. Results reveal that the probability of one’s first job after graduation being in human resources was significantly greater for those who had passed the PHR exam compared …

Pay-Performance Sensitivity And Firm Size: Insights From The Mutual Fund Industry, George D. Cashman

Finance Faculty Research and Publications

I examine the ex ante decision to make an agent's pay-performance sensitivity an inverse function of organization size. I focus on mutual funds and their decision to use compensation contracts that reduce the advisor's marginal compensation as the fund grows (a declining-rate contract) over the dominant contract type, where marginal compensation is unrelated to fund size (a single-rate contract). I find evidence consistent with the view that declining-rate contracts are a mechanism to keep marginal compensation in line with the advisor's declining marginal product. Specifically, I find that funds with greater exposure to diseconomies of scale are more likely to …

Caritas In Veritate: Updating Catholic Social Teachings For Macromarketing And Business, Gene R. Laczniak, Thomas A. Klein

Marketing Faculty Research and Publications

In an effort to assess the latest thinking in the Roman Catholic Church on economic matters, this communications note briefly highlights the recent publication of a new encyclical by Pope Benedict XVI, Caritas in Veritate (Charity in Truth). Core ethical values, consistent with previous examples of Catholic Social Teaching (CST), are retained. However, some important nuances are added to previous treatments and certain points of emphasis are shifted to account for recent global developments. Key areas that relate to abiding marketing issues are spelled out and some brief commentary on matters of importance to macromarketing is offered.

A First Course In Entrepreneurship Fundamentals, Part I, Alex Stewart

Management Faculty Research and Publications

This two-part article offers ideas for teaching students who are interested in entrepreneurship but unprepared for the widely-taught business plan course. Their lack of preparation is due less to a lack of business knowledge than it is to an awareness of their life and career needs and of the realities of entrepreneurial careers. Course content ideas are presented to help these students develop competencies in four areas: self-understanding, knowledge of entrepreneurial careers, a realistic sense of what ventures would work for them, and business-relevant creativity.

Psychological Contract Breach, Perceived Discrimination, And Ethnic Identification In Hispanic Business Professionals, Robert Gregory Delcampo, Kristie M. Rogers, Kathryn J. L. Jacobson

Management Faculty Research and Publications

No abstract provided.

Playing The Ratings Game: The Significance Of The Four Star Rating, Qianhua Ling, Daniel G. Neely

Accounting Faculty Research and Publications

This study examines a group of exemplary rated nonprofits, organizations rated four stars by Charity Navigator, to determine if this select group of charities exhibits characteristics associated with top charitable organizations, or if the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. Organizations rated four stars by Charity Navigator report a lower level of excess cash holdings, report lower levels of executive compensation and executive compensation that is less sensitive to performance, and are less financially vulnerable than their lower rated peers. The results shed light on the continuing …

Proposed Financial Statement Changes: Reactions To The Fasb-Iasb Discussion Paper, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

The purpose of this study was to obtain the opinions of future users of the financial statements: current undergraduate and graduate students in accounting and academia. We found that the students show greater agreement with the proposed model than do the CPA’s. In addition, we found that academia, as represented by the Financial Accounting Standards Committee of the American Accounting Association has a number of concerns regarding timing, user learning issues and impediments to learning, objectives and terminology and categorizing activities and assets and liabilities.

The Role Of Geographic Proximity And Industrial Structure In Metropolitan Area Business Cycles, Michael Hollar, Anthony Pennington-Cross, Anthony Yezer

Finance Faculty Research and Publications

Measurement and prediction of aggregate economic fluctuations at the region, state, and metropolitan area level is a major challenge. As data quality and analytical techniques have improved, the analysis of coincident economic cycle indicators (CEI) has progressed from national to regional to state levels. This paper continues the trend of geographic disaggregation by constructing and analyzing CEI at the MSA level. The theoretical advantage of MSA level indexes is that they reflect labor market areas. Given lack of quarterly economic time series at the MSA level, we construct a new variable, the EPI (export price index). The EPI is an …

Changing The Course: Applying Sarbanes-Oxley To The Classroom, Maureen Francis Mascha, Michael D. Akers

Accounting Faculty Research and Publications

No abstract provided.

Marquette's Successful Harley Partnership Provides Smooth Ride For All, Robert Deahl

College of Professional Studies Faculty Research and Publications

No abstract provided.

Are Consumers Disadvantaged Or Vulnerable? An Examination Of Consumer Complaints To The Better Business Bureau, Dennis Garrett, Peter Toumanoff

Marketing Faculty Research and Publications

Questions have emerged recently about the appropriateness of defining disadvantaged consumers based on their membership in certain demographic categories, such as income, age, education, and race. This study assessed whether these traditional classifications are useful for understanding consumer complaining behavior with the Better Business Bureau. Results of analysis of more than 24,000 consumer complaints filed with a local BBB office during a 13-year period do not provide consistent support for this disadvantaged consumer perspective. Instead, the emerging vulnerable consumer perspective may provide a more promising basis for future research.

“Brick & Mortar” Education And “Real World” Experience: Assessing Hrm Alumni Perceptions Of Their Early Professional Development, Jennifer Mencl, Scott W. Lester, Kristina A. Bourne, Cheryl Maranto

Management Faculty Research and Publications

In this research we examined the extent to which three distinct human resource management (HRM) undergraduate programs provide coverage of the 13 core content areas specified by the Society for Human Resource Management (SHRM) and explored the usefulness of various ways of learning including their undergraduate coursework, an internship, and previous work experience as related to early professional development. Based on perceptions of HRM alumni, the findings reveal that the three curricula provided significant differences in levels of proficiency in seven of the core areas and in perceived usefulness of the learning methods. Implications for HRM curriculum development and students’ …

Organizational Support And Contract Fulfillment As Moderators Of The Relationship Between Preferred Work Status And Performance, Jennica R. Webster, Gary A. Adams

Management Faculty Research and Publications

Purpose

The purpose of this study was to examine organizational context variables as moderators of the relationship between preferred work status and job performance. The moderators were perceived organizational support (POS) and psychological contract fulfillment.

Design/Methodology/Approach

Survey data was collected from 164 participants working in a health and fitness organization. These participants ranged in age from 18 to 79 years old (M = 40, SD = 12.5) and held various positions including middle managers, clerical workers, maintenance workers, and sports trainers.

Findings

The relationship between preferred work status and extra-role performance was negative when POS was higher but not …

The Influence Of Foreign Operations And Their Disclosure On Earnings Quality, Sixian Yang, Fang Hu, Don E. Giacomino

Accounting Faculty Research and Publications

This paper investigates the influence of foreign operations and their financial disclosure on earnings quality in terms of accounting conservatism (timely recognizing losses). In a large (7,311 corporate years) sample of U.S. corporations, we find earnings of firms with multinational operations (MNCs) tend to be of lower quality and are reported less conservatively than those without foreign operations (domestic firms). Further, by looking at the geographic segment information disclosed by MNCs, we find that earnings conservatism gets improved if a MNC reports “clean” segment information of foreign operations; wherein operating results of MNC are broken down by geographic regions (continent …

The Duration Of Foreclosures In The Subprime Mortgage Market: A Competing Risks Model With Mixing, Anthony Pennington-Cross

Finance Faculty Research and Publications

This paper examines what happens to mortgages in the subprime mortgage market once foreclosure proceeding are initiated. A multinomial logit model that allows for the interdependence of the possible outcomes or risks (cure, partial cure, paid off, and real estate owned) through the correlation of associated unobserved heterogeneities is estimated. The results show that the duration of foreclosures is impacted by many factors including contemporaneous housing market conditions, the prior performance of the loan (prior delinquency), and the state-level legal environment.

Upheaval In The Boardroom: Outside Director Public Resignations, Motivations, And Consequences, Michael Dewally, Sarah Peck

Finance Faculty Research and Publications

We investigate the motives and circumstances surrounding outside directors' decisions to publicly announce their board resignations. Directors who leave "quietly" are in their mid-sixties and professional directors, i.e., retirees, who are retiring entirely from professional life. Directors who announce their resignation are in their mid-fifties and active professionals. Half the time they say they are leaving because they are "busy." These directors leave from firms with some weakness in their performance, but with no overt manifestations of cronyism such as excessive compensation of either the CEO or directors. The other half of the time directors leave while publicly criticizing the …

A First Course In Entrepreneurship Fundamentals, Part Ii, Alex Stewart

Management Faculty Research and Publications

No abstract provided.

Critical Management Issues For Implementing Rfid In Supply Chain Management, Bharatendu Srivastava

Management Faculty Research and Publications

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We …