Business Commons^™

Going-Concern Opinions: Broadening The Expectations Gap, Michael D. Akers, Meredith A. Maher, Don E. Giacomino

Accounting Faculty Research and Publications

A rash of high-profile bankruptcies has led to a search for answers. Many hold auditors responsible for not detecting the potential for bankruptcy during the most recent audit. The Weiss Report, a study of several dozen bankrupt companies submitted to the U.S. Senate during its deliberations on the Sarbanes-Oxley Act, found a "broad and massive failure" on the part of auditors to raise "yellow flags" that indicate potential bankruptcy. The authors examined Weiss' methodology and found that, applied to a broader group of companies, Weiss' criteria would have incorrectly predicted bankruptcy for nearly half of the non-bankrupt companies studied. This …

The Power Of Interfacing Departments In Shaping B2b Customer Satisfaction, Srinivas Durvasula, Steven Lysonski, Subhash C. Mehta

Marketing Faculty Research and Publications

Extant research identifies service quality and service encounter perceptions as the key determinants of satisfaction. However, no study in a business-to-business environment has examined the simultaneous effect of these two determinants on overall satisfaction. Hence, we do not know which of these two determinants has a stronger impact on service satisfaction. We investigated this issue by collecting data from shipping managers of several firms in Singapore that used the services of ocean freight shipping companies. Results of path analysis indicate that perceptions of service encounters have a relatively stronger impact compared to service quality. Implications of these results are discussed.

Help One Another, Use One Another: Toward An Anthropology Of Family Business, Alex Stewart

Management Faculty Research and Publications

Anthropological kinship theory is explored for potential contributions to a theory of family business. This paper considers the costs and benefits of a role for kinship in business. Both derive from the discrepancy between the normative orders of kinship and markets; respectively, long-term generalized reciprocity and short-term balanced reciprocity. Because the former reflects the morality of society as a whole, kinship integrates social fields more readily than more specialized orders like markets.

The Effect Of Firm Characteristics On The Use Of Percentage Retail Leases, Gregory H. Chun, Mark Eppli, James D. Shilling

Finance Faculty Research and Publications

Choice of lease payments has been widely studied in the literature. There are three—not necessarily exclusive—explanations that have received attention. The first attributes the choice of fixed versus percentage lease payments to risk-sharing preferences. The second explanation views percentage-of-sales lease agreements as a way discriminating monopolists can appropriate economic rents. The third attributes percentage-of-sales lease agreements to a metering and bonding argument. This paper examines the proposition that the choice of percentage retail leases is driven in part by managements' desire to circumvent the cost of violating debt covenant restrictions. The evidence presented here supports the prediction that retail firms …

The Impact Of Situational Constraints, Role Stressors, And Commitment On Employee Altruism, Steve M. Jex, Gary A. Adams, Daniel G. Bachrach, Sarah Sorenson

Management Faculty Research and Publications

This study investigated relations between 3 work-related stressors (role ambiguity, role conflict, and organizational constraints) and altruistic behavior in the workplace. It was predicted that each stressor would be negatively related to altruism and that these relations would be moderated by affective commitment (AC). Data from 144 incumbent-supervisor dyads revealed that all 3 stressors; were weakly and negatively related to altruism. Two of these relationships were moderated by AC, although not as predicted. Organizational constraints were positively related to altruism among those reporting high levels of AC but negatively related among those reporting low levels of AC. The pattern was …

Investigating The Integration Of Acquired Firms In High-Technology Industries: Implications For Industrial Policy, David R. King, John D. Driessnack

Management Faculty Research and Publications

Acquisition activity persists despite evidence that acquisitions do not improve firm performance. Further, government policy toward the defense industry has advocated consolidation in the name of nominal cost savings. We explore the role acquisitions play toward technology transfer and begin to identify factors associated with acquisition success through a review of existing research on post-acquisition performance that primarily considers acquiring firm stock performance. Using this research as a foundation, we build a model to analyze post-acquisition performance using a sample of high-technology firms. Results suggest critical success factors associated with post-acquisition stock performance are poorly understood. We conclude that proactive …

Digital Divide And Purchase Intention: Why Demographic Psychology Matters, Syed H. Akhter

Marketing Faculty Research and Publications

The author examines the issue of digital divide from a demographic perspective. The influence of gender, age, education, and income on the likelihood to purchase over the Internet is empirically examined. Hypotheses are framed in the context of psychological correlates of the demographic variables. Findings show that these variables significantly influence the likelihood to purchase over the Internet and can be used to profile, segment, and target markets and develop public policies to bridge the digital divide.

Health Risks, Past Usage, And Intention To Use Weight Loss Products In Normal Weight Women With High And Low Body Dysphoria, B. L. Whisenhunt, D. A. Williamson, Richard G. Netemeyer, J. Craig Andrews

Marketing Faculty Research and Publications

Objective: There are many health risks involved with the use of weight loss products by normal weight women. The mass media may compound this problem through the promotion of weight loss products and a thin body size. This study tested women's perceptions of different weight loss product ads to determine if body dysphoria (i.e., an over concern with body size and shape in normal weight people) was associated with risk beliefs, past behaviors, and intention toward using weight loss products.

Method: Normal weight women (age range = 18-41 yr), who were classified as either high (n=45) …

Rapid, Low Level Determination Of Silver(I) In Drinking Water By Colorimetric–Solid-Phase Extraction, Matteo P. Arena, Marc D. Porter, James S. Fritz

Finance Faculty Research and Publications

A rapid, highly sensitive two-step procedure for the trace analysis of silver(I) is described. The method is based on: (1) the solid-phase extraction (SPE) of silver(I) from a water sample onto a disk impregnated with a silver-selective colorimetric reagent, and (2) the determination of the amount of complexed analyte extracted by the disk by diffuse reflectance spectroscopy (DRS). This method, called colorimetric–solid-phase extraction (C–SPE), was recently shown effective in determining low concentrations (0.1–5.0 mg/ml) of iodine and iodide in drinking water. This report extends C–SPE to the trace (∼4 μg/l) level monitoring of silver(I) which is a biocide used on …

Internal Auditor Participation In Systems Development Projects, Meredith Maher, Michael D. Akers

Accounting Faculty Research and Publications

There are differing viewpoints in the internal auditing literature regarding the role of internal audit in systems development projects. One argument is that internal audit should act as consultants for such projects. A counter argument is that if internal auditors act as consultants this could impair in dependence. This study surveyed chief audit executives to determine their perceptions of the role of internal audit in systems development projects as well as the actual involvement of their departments in such projects. The findings show that chief audit executives place more importance on internal audit acting as consultants and less importance on …

Mapping Mutual Fund Investor Characteristics And Modeling Switching Behavior, Mary Jane Lenard, Syed H. Akhter, Pervaiz Alam

Marketing Faculty Research and Publications

Securing a mutual fund that meets investment goals is an important reason why some investors exclusively stay with a particular mutual fund and others switch funds within their fund family. This paper empirically investigates investor attitudes toward mutual funds. Our model, based on investor responses, develops an investor's "risk profile" variable. Results indicate that regardless of whether the investors invest in nonemployer plans or in both employer and nonemployer plans, they consider their investment risk, fund performance, investment mix, and the capital base of the fund before switching funds. The model developed in this study can also assist in predicting …

Underreporting Of Chargeable Time: The Impact Of Gender And Characteristics Of Underreporters, Michael D. Akers, Tim V. Eaton

Accounting Faculty Research and Publications

No abstract provided.

Your Eq Skills: Got What It Takes?, Michael D. Akers, Grover L. Porter

Accounting Faculty Research and Publications

Your EQ skills: got what it takes? So you thought the CPA exam was your last test? Read on.

Question: Is success in life and career determined primarily by rational intelligence (the IQ or intelligence quotient) or emotional intelligence (the EQ or emotional quotient)? In other words, what's more important: intelligence or intuition? Historically the professional accounting literature has placed little emphasis on behavioral issues such as EQ, although human behavior underlies most of what is written and taught about professional accounting. Now managers place increased value on behavioral skills that help people in the workplace. Look at this statistic: …

Japanese Attitudes Toward American Business Involvement In Japan: An Empirical Investigation Revisited, Syed H. Akhter, Toshikazu Hamada

Marketing Faculty Research and Publications

Generation Xers in Japan continue to draw increasing attention not only because they constitute a promising segment for many products and services but also because they are expected to play a critical role in shaping their country’s political and economic relations with other countries. This paper examines their attitudes toward US products, businesses, and government. It also examines their behavioral intentions and their expectations of their government in terms of managing American business involvement in Japan. Findings and implications are presented.

Should Marketing Managers Be Concerned About Attitudes Towards Marketing And Consumerism In New Zealand: A Longitudinal View, Steven Lysonski, Srinivas Durvasula, John Watson

Marketing Faculty Research and Publications

New Zealand has gone through a radical metamorphosis since free market economics were introduced in the mid-1980s. Marketing managers are particularly interested in the views of consumers about issues dealing with marketing activities. Negative views could signal consumer backlash against free market activities. This study examines the views of consumers from 1986 to 2001 on a range of issues dealing with marketing and consumerism. The results clearly show that consumers are less negative about marketing and consumerism issues since 1986. It seems likely that New Zealand has evolved in terms of the consumerism life cycle over the last 15 years. …

The Impact Of Government Policy On Technology Transfer: An Aircraft Industry Case Study, David King, Mark L. Nowack

Management Faculty Research and Publications

This case study explores the interaction between domestic and foreign governmental policy on technology transfer with the goal of exploring the long-term impacts of technology transfer. Specifically, the impact of successive licensing of fighter aircraft manufacturing and design to Japan in the development of Japan’s aircraft industry is reviewed. Results indicate Japan has built a domestic aircraft industry through sequential learning with foreign technology transfers from the United States, and design and production on domestic fighter aircraft. This process was facilitated by governmental policies in both Japan and the United States.

Strategic Planning, Hypercompetition, And Knowledge Management, Syed H. Akhter

Marketing Faculty Research and Publications

When both product and
resource markets are turbulent
and disruptive, competitive
advantage has to be continually
renewed. But a firm can do this only
by managing its knowledge. Using two
elements of strategic planning—scenario
building and internal situation analysis—
managers can map and integrate knowledge to
gain a sustainable competitive edge in today’s
hypercompetitive markets.

Complementary Resources And The Exploitation Of Technological Innovations, David R. King, Jeffrey G. Covin, W. Harv Hegarty

Management Faculty Research and Publications

Technological innovation often results when the resources of a small firm are combined with those of a large one. This is because small and large firms characteristically possess complementary resources whose combination can facilitate innovation success. The possession of complementary innovation-producing resources by small and large firms helps explain patterns of interaction among firms in dynamic, technology-based industries. Propositions are developed that outline how typical resources of small and large firms can be used to explain industry-level phenomena surrounding technological change.

An Empirical Examination Of The Usefulness Of The Motley Fool's "Flow Ratio", Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

An item in the Motley Fool recently caught our attention. The article “Cisco vs. Lucent: The Flow Ratio Tells All” (by Matt Richey, June 6, 2000, in The Motley Fool.fool.com), introduced a new ratio that Richey claimed to be useful for measuring the investment worthiness of a company. Since our Financial Statement Analysis course covers traditional ratio analysis and since we were exploring some research ideas on measuring liquidity, the Fool Ratio seemed worthy of investigation

Foundations In Wisconsin: A Directory [22nd Ed. 2003], Mary C. Frenn, Rebecca Cesarz, Catherine Simpson Kalish, Megan Muthupandiyan, Katie Schrader, Vance Thomas, Dan Abler

Foundations in Wisconsin: A Directory

This 22nd edition of Foundations in Wisconsin (2003) is the first produced by the new Marquette University John P. Raynor, S.J., Library. 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 extracted from IRS 990-PF tax returns filed by the foundations. However, additional information was obtained from surveys, annual reports, and foundation Web sites.

The economy has slowed the growth of Wisconsin foundations. …

Exploring Business-To-Business Marketsites, Mark Barratt, Karsten Rosdahl

Management Faculty Research and Publications

Business-to-business (B2B) marketsites are quickly becoming one of the major issues for companies in their search for opportunities to improve visibility of their trading activities and sources of further cost reduction. The paper begins with a synthesis of potential benefits resulting from participation in marketsites and then provides a number of initial classifications of marketsites. The paper then introduces some of the major inhibitors and enablers of marketsites and views these from a number of perspectives such as the structure of marketsites, the degree of centricity and the types of products purchased through such marketsites. Finally, some recommendations for further …

Credit Rationing In The U.S. Mortgage Market: Evidence From Variation In Fha Market Shares, Brent W. Ambrose, Anthony Pennington-Cross, Anthony M. Yezer

Finance Faculty Research and Publications

This paper examines the nature of mortgage credit rationing across geographic markets and time. Particular attention is paid to the response of conventional mortgage supply to higher risk conditions associated with regional recessions. We develop a series of four indirect tests based on the spatial variation of the FHA share of mortgages, both endorsements and applications, as well as FHA and conventional rejection rates. Results of these four tests indicate that conventional mortgage underwriting criteria do not become more flexible and may even become more demanding when local economic conditions deteriorate. This result indicates the use of non-price credit rationing …

Subprime Lending In The Primary And Secondary Mortgage Market, Anthony Pennington-Cross

Finance Faculty Research and Publications

This article provides an exploratory analysis of the role of subprime lending through an examination of the spatial distribution of Federal Housing Administration (FHA)—eligible home purchase loans in the primary and secondary mortgage markets. Loan originations are aggregated to the metropolitan statistical area level to examine the proportion of the market served by FHA, prime, and subprime lenders. The article then examines whether subprime lenders hold their loans in portfolio or sell them to private conduits.

Primary market results indicate that subprime lenders are more active in cities with worse economic risk characteristics. Secondary market results indicate that although subprime …

Extension Risk In Commercial Mortgages, Charles C. Tu, Mark Eppli

Finance Faculty Research and Publications

Historical data and Monte Carlo simulation is used to examine the likelihood of loan extension and potential losses associated with extension. It is found that extension probability is highly sensitive to property NOI growth, to NOI volatility, to the amortization schedule, and to the loan term. It is found that extension risk is largely unaffected by changing credit spreads, changing yield curve assumptions, and changing term default assumptions. It is found that changing the underwriting standards affects the probability of loan extension in a somewhat muted way. It is estimated that the loss during extension is approximately 2%-3% of the …

Rapid, Specific Determination Of Iodine And Iodide By Combined Solid-Phase Extraction/Diffuse Reflectance Spectroscopy, Matteo P. Arena, Marc D. Porter, James S. Fritz

Finance Faculty Research and Publications

A new, rapid methodology for trace analysis using solid-phase extraction is described. The two-step methodology is based on the concentration of an analyte onto a membrane disk and on the determination by diffuse reflectance spectroscopy of the amount of analyte extracted on the disk surface. This method, which is adaptable to a wide range of analytes, has been used for monitoring ppm levels of iodine and iodide in spacecraft water. Iodine is used as a biocide in spacecraft water. For these determinations, a water sample is passed through a membrane disk by means of a 10-mL syringe that is attached …

The Relationship Between Cost Analysis And Program Management, William K. Stockman, Joseph T. Kammerer, David R. King, Steve G. Green, Michael A. Greiner

Management Faculty Research and Publications

Cost analysis if often viewed as applying basic principles and cost methodologies to determine total system cost. These finished estimates then flow into a decision making process and the cost estimator leaves the stage. Reality shows that the cost estimator is actually one of the main contributors to the decision making process. Our introduction to this special issue explores the areas where cost estimating plays a major role in program management in areas beyond the normal program estimate. We have included articles that show the key role estimators can play in source selection strategies and evaluation; cost of delay analysis …

Cultural Values And Important Possessions: A Cross-Cultural Analysis, John Watson, Steven Lysonski, Tamara Gillan, Leslie Raymore

Marketing Faculty Research and Publications

The logic behind globalized advertising appeals is based on the premise that cultural value systems are converging. Yet, there is no clear agreement regarding the superiority of standardized campaigns vs. localized ones. One reason for this lack of agreement deals with the extent to which various cultures share similar values. The goal of this study is to apply a relatively new framework dealing with value differences developed by Schwartz [Adv. Exp. Soc. Psychol. 25 (1992) 1.] to New Zealand and the USA by looking at the connection between these values and possessions. The hypotheses received mix support. The results confirm …

Ethical Myopia: The Case Of "Framing" By Framing, Alan E. Singer, Steven Lysonski, Ming Singer, David Hayes

Marketing Faculty Research and Publications

No abstract provided.

Understanding The Interfaces: How Ocean Freight Shipping Lines Can Maximize Satisfaction, Srinivas Durvasula, Steven Lysonski, Subhash Mehta

Marketing Faculty Research and Publications

Physical distribution services are becoming increasingly important as supply chains strive to become more efficient in the logistical flow of goods to industrial customers. Performance of these services, however, takes place during encounters that customers have with various interfacing departments within the firm. These encounters may ultimately determine the level of satisfaction clients have with the service and the concomitant perceived quality. While previous research in this area has focused on service quality assessment, little attention has been given to determining the pattern of interfacing departments that maximize service satisfaction. This study examines a sample of shipping managers in Singapore …

A Model And Methodologies For The Location Problem With Logistical Components, Siddhartha Syam

Management Faculty Research and Publications

This paper significantly extends traditional facility location models by introducing several logistical cost components such as holding, ordering, and transportation costs in a multi-commodity, multi-location framework. Since location and logistical costs are highly inter-related, the paper provides an integrated model, and seeks to minimize total physical distribution costs by simultaneously determining optimal locations, flows, shipment compositions, and shipment cycle times. Two sophisticated heuristic methodologies, based on Lagrangian relaxation and simulated annealing, respectively, are provided and compared in an extensive computational experiment.