Business Commons^™

Creating Online Brand Value Through Online Discussion Site, David Czerwinski, M Merz, U Herbst

Faculty Publications

This paper discusses the implications of the new evolving Service-Dominant (S-D) logic in marketing on brand value creation. Furthermore, it introduces the concept of online brand value and examines whether online discussion sites constitute a means for firms to co-create, together with a firm's customers, online brand value. Moreover, a conceptual framework of online discussion sites is proposed. Finally, the results of an exploratory empirical analysis of two discussion sites are presented. The findings provide initial support for the hypothesis that online discussion sites can be used to create online brand value. Moreover, the findings suggest that firm-generated discussion sites …

Adaptive Appointment Systems With Patient Preferences, Wen-Ya Wang, D. Gupta

Faculty Publications

Patients' satisfaction with an appointment system when they attempt to book a nonurgent appointment is affected by their ability to book with a doctor of choice and to book an appointment at a convenient time of day. For medical conditions requiring urgent attention, patients want quick access to a familiar physician. For such instances, it is important for clinics to have open slots that allow same-day (urgent) access. A major challenge when designing outpatient appointment systems is the difficulty of matching randomly arriving patients' booking requests with physicians' available slots in a manner that maximizes patients' satisfaction as well as …

Analysts’ Accrual-Related Over-Optimism: Do Analyst Characteristics Play A Role?, Michael S. Drake, Linda A. Myers

Faculty Publications

Bradshaw, Richardson, and Sloan (2001) find that analyst forecast over-optimism is greater for firms with high accruals. This “accrual-related over-optimism” is generally interpreted as evidence that analyst forecasts do not fully incorporate predictable earnings reversals associated with high accruals. We investigate whether analyst experience, access to resources (brokerage size), and portfolio complexity moderate the relation between over-optimistic forecasts and high accruals. We demonstrate the robustness of accrual-related over-optimism to controls for cash flow and prior forecast errors. We find that accrual-related over-optimism is lower for analysts with greater general experience and for analysts following fewer firms but find only limited …

Individual Accounting Faculty Research Rankings By Topical Area And Methodology, Jeffrey Pickerd, Nathaniel M. Stephens, Scott L. Summers, David A. Wood

Faculty Publications

This paper ranks individual accounting researchers based on their research productivity in the most recent 6, 12, and 20 years. We extend prior individual faculty rankings by providing separate individual faculty research rankings for each topical area commonly published in accounting journals (AIS, audit, financial, managerial, and tax). In addition, we provide individual faculty research rankings for each research methodology commonly used by accounting researchers (analytical, archival, and experimental). These findings will be of interest to potential doctoral students and current faculty, as well as accounting department, business school, and university administrators as they make decisions based on individual faculty …

Outcomes Of Adaptive Sports And Recreation Participation Among Veterans Returning From Combat With Acquired Disability, Neil Lundberg, Jessie Bennett, Shauna Smith

Faculty Publications

The purpose of this study was to examine changes in quality of life, mood states, and sports related competence for veterans of Operation Iraqi Freedom and Operation Enduring Freedom who participated in a therapeutic adaptive sports and recreation program. The researchers hypothesized that participation would lead to increases in physical, psychological, social, and environmental QoL, increases in sports related competence, and reductions in mood disturbances such as depression and anger. A total of 18 veterans participated in one of three week-long therapeutic and adaptive sports programs in Sun Valley Idaho. Veterans responded on a pretest and posttest questionnaire. Because no …

Conceptual Modeling Foundations For A Web Of Knowledge, David W. Embley, Stephen W. Liddle, Deryle W. Lonsdale

Faculty Publications

The semantic web purports to be a web of knowledge that can answer our questions, help us reason about everyday problems as well as scientific endeavors, and service many of our wants and needs. Researchers and others expound various views about exactly what this means. Here we propose an answer with conceptual modeling as its foundation. We define a web of knowledge as a collection of interconnected knowledge bundles superimposed over a web of documents. Knowledge bundles are conceptual model instances augmented with facilities that provide for both extensional and intensional facts, for linking between knowledge bundles yielding a web …

When Constraints Bind, Karl B. Diether, Ingrid M. Werner

Faculty Publications

We create proxies for constrained supply of lendable shares by combining unique data on loan fees, stock lending activity, and failures to deliver to examine how contrarian short-sale strategies are affected by constraints. Constraints affect roughly one-third of the cross- section of stocks and result in a significant reduction in the contrarian response of short sellers to past returns. When short sellers’ contrarian strategies are constrained, the market is significantly less efficient. Furthermore, the previously documented relation between short selling activity and future returns breaks down for the most constrained stocks.

Knowledge Sourcing And Knowledge Consumption In Computer- Mediated Complex Decision Making, Nathan W. Twyman, Jeffrey L. Jenkins, Jay F. Nunamaker Jr., Katherine Carl

Faculty Publications

Individuals are turning increasingly toward web-based information sources as input for complex decisions. Gathering and evaluating decision criteria in an online context is enticing because of information availability and increased control over the process, but how do these factors impact performance? This study shows how an interaction effect between Social Comparison and Social Facilitation predicts and explains how decision making performance is influenced differently by an information consumption-only approach versus a consumeand- contribute approach. Results from an empirical evaluation indicate that publishing decision criteria and reasoning (e.g. in a forum, blog, or knowledge base) plays an important role in improving …

Australian Family Leisure: Modelling Parent And Youth Data, Raymond A. Poff, Ramon Zabriskie, Jasmine A. Townsend

Faculty Publications

The purpose of this study was to test a recently developed broad structural model which examines the relationships between family leisure involvement, family functioning, family communication, family leisure satisfaction, and satisfaction with family life among a large sample of families from Australia (n = 1014). participating families provided responses to family variables from both a parent (n = 902) and an adolescent child (n = 810) in the household. Structural equation modelling was employed and the fit indices from the parent and youth structural equation models were quite similar to each other, with both exhibiting a reasonable fit of the …

How Does Simplifi Ed Disclosure Affect Individuals’ Mutual Fund Choices?, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian

Faculty Publications

Some regulators believe that the average investor has a hard time reading the statutory prospectuses mutual funds distribute. In the words of the Securities and Exchange Commission (SEC), “Prospectuses are often long . . . Too frequently, the language of prospectuses is complex and legalistic, and the presentation formats make little use of graphic design techniques that would contribute to readability.”1 Partly as a result, two- thirds of investors do not read the prospectus before purchasing mutual fund shares (Investment Company Institute 2006).

Ceo Demographics And Accounting Fraud: Who Is More Likely To Rationalize Illegal Acts?, Carmelita J. Troy, Ken G. Smith, Madeline A. Domino

Faculty Publications

This article proposes that key CEO demographic factors reflect alternative modes of rationalizing the choice to engage in and/or facilitate accounting fraud. Specifically the authors theorize that younger, less functionally experienced CEOs and CEOs without business degrees will be more likely to rationalize accounting fraud as an acceptable decision. Based on a sample of 312 fraud-committing and control firms, the study finds support for the authors’ predictions. It also finds that CEO stock options (a form of executive equity incentive) also predict fraud, and that this relationship is not moderated by CEO demographics. The study thus extends upper echelon theory …

Using A Positive Lens To Complicate The Positive In Identity Research, Jane Dutton, Laura Morgan Roberts, Jeffrey Bednar

Faculty Publications

We appreciate the opportunity to respond to Learmonth and Humphreys’ commentary on our article, “Pathways for Positive Identity Construction at Work: Four Types of Positive Identity and the Building of Social Resources” (2010). In this rejoinder we clarify our motivation for studying positive identity, make explicit our a priori assumptions, and engage our colleagues’ ideas about employee resistance to demonstrate how our typology of positive identities enriches understanding of identity-based mechanisms in organizational research. We hope this exchange will stimulate discussion and open new pathways for future research.

Lost In Translation: The Effects Of Incentive Compensation On Strategy Surrogation, Jongwoon Choi, Gary Hecht, William B. Tayler

Faculty Publications

To facilitate managers’ decision-making, firms develop strategic performance measurement systems that translate strategy into performance measures. Ideally, managers see measures for what they are: imperfect proxies for intangible strategic constructs. However, managers may fail to fully appreciate the fact that measures are merely representations of the strategic constructs, and act as though the measures were the construct of interest – a phenomenon we label surrogation. In this paper, we investigate whether and how the use of strategically-linked performance measures for compensation purposes affects managers’ propensity to exhibit surrogation. In accordance with the attribute substitution framework (Kahneman and Frederick 2002), we …

Reconciling Archival And Experimental Research: Does Internal Audit Contribution Affect The External Audit Fee?, Douglas F. Prawitt, Nathan Y. Sharp, David A. Wood

Faculty Publications

Consistent with guidelines from external auditing standards, a large body of experimental and survey research suggests that an internal audit function (IAF) can contribute in ways that lead to decreased external audit fees; however, research using archival methodologies generally finds either no relation or a positive relation between proxies for IAF contribution and external audit fees. In this paper, we provide new evidence using a unique and previously unavailable data set to develop archival proxies of internal audit contribution. We find that SAS No. 65-based proxies for the contribution of internal audit are associated with lower unexpected external audit fees. …

Drilling For Micro-Foundations Of Human Capital Based Competitive Advantages, Russell Coff, David Kryscynski

Faculty Publications

From the origins of the Resource Based View, scholars have emphasized the importance of human capital as a source of sustained competitive advantage and recently there has been great interest in gaining a better understanding of the micro-foundations of strategic capabilities. Along these lines, there is little doubt that heterogeneous human capital is often a critical underlying mechanism for capabilities. Here, we explore how individual level phenomena underpin isolating mechanisms that sustain human capital-based advantages but also create management dilemmas that must be resolved in order to create value. The solutions to these challenges cannot be found purely in generic …

Accounting Doctoral Program Rankings Based On Research Productivity Of Program Graduates, Nathaniel M. Stephens, Scott L. Summers, Brady Williams, David A. Wood

Faculty Publications

This paper presents rankings of accounting doctoral programs based on the research productivity of each institution’s graduates in the years immediately following their graduation. We use two time periods for analysis: the first three years after graduation and the first six years after graduation. We extend previous doctoral program ranking literature by expanding rankings of accounting doctoral programs with specific rankings for topical areas (accounting information systems (AIS), audit, financial, managerial, and tax) and methodologies (analytical, archival, and experimental). We show that rankings for topical and methodological areas differ significantly from rankings produced using methodologies that create a singular doctoral …

Short Interest As A Signal Of Audit Risk, Cory A. Cassell, Michael S. Drake, Stephanie J. Rasmussen

Faculty Publications

Motivated by evidence from the empirical accounting and finance literatures suggesting that short sellers target firms with suspect financial reporting, we investigate whether short interest provides a signal of the degree of audit risk. We find a positive association between audit fees and short interest (total shares sold short scaled by total shares outstanding) after controlling for other determinants of audit fees. This finding suggests that short interest is an indicator of audit risk that reflects information not captured by traditional client risk measures. We also find an increase in the magnitude of the association between audit fees and short …

Do Earnings Reported Under Ifrs Tell Us More About Future Earnings And Cash Flows?, T.J. Atwood, Michael S. Drake, James N. Myers, Linda A. Myers

Faculty Publications

We contribute to the debate about the relative benefits and costs of International Financial Reporting Standards (IFRS) adoption by examining whether earnings persistence and the association between current accounting earnings and future cash flows differ for firms reporting under IFRS versus firms reporting under United States Generally Accepted Accounting Principles (U.S. GAAP) and firms reporting under non-U.S. domestic accounting standards (DAS). Using samples comprised of 58,832 firm-year observations drawn from 33 countries from 2002 through 2008, we find that positive earnings reported under IFRS are no more or less persistent than earnings reported under U.S. GAAP but losses reported under …

A Perspective On The Joint Iasb/Fasb Exposure Draft On Accounting For Leases, Yuri Biondi, Robert Bloomfield, Jonathan C. Glover, Karim Jamal, James A. Ohlson, Stephen H. Penman, Eiko Tsujiyama, T. Jeffrey Wilks

Faculty Publications

The International Accounting Standards Board (IASB) and The Financial Accounting Standards Board (FASB) recently issued a joint exposure draft on accounting for leases. This exposure draft seeks to shift lease accounting from an “ownership” model to a “right-to-use” model. Under the current ownership model, leases can be reported on balance sheet (finance leases) if certain tests are met, or off balance sheet (operating leases) if those tests are not met. The new model seeks to report all leases on the balance sheet based on the present value of lease obligations without any bright line tests, and no sharp on or …

Psychological Need Satisfaction Through Sports Participation Among International Athletes With Cerebral Palsy, Neil R. Lundberg, Diane G. Groff, Ramon Zabriskie

Faculty Publications

Research indicates that people with disabilities who participate in sports and are physically active rate themselves higher in psychological well-being. The primary purpose of this study was to observe differences in the satisfaction of psychological needs through sports participation based on one’s impairment level. Participants in the study included 50 English-speaking individuals with cerebral palsy who were 18 years of age or older and who were competing in the 2005 World Cerebral Palsy Championship in New Haven, Connecticut. Descriptive statistics were gathered and a simple one-way ANOVA was used to test the differences in psychological need fulfillment. Results indicated a …

Positive Youth Development Within A Family Leisure Context: Youth Perspectives Of Family Outcomes, Peter J. Ward, Ramon B. Zabriskie

Faculty Publications

Family leisure involvement may provide the first and most essential context for positive youth development in today's society.

Structured and organized programs and activities provide valuable settings for youth development. However, the primary setting of the home should be considered the fi rst, and perhaps the most essential, context for positive youth development. Within the home environment, the parents are often the most invested adults in the lives of youth. Parental involvement is one of the strongest protective factors an adolescent can have related to maximizing his or her potential. Evidence supports that strong, positive parental infl uence contributes to …

$100 Bills On The Sidewalk: Violations Of No-Arbitrage In 401(K) Accounts, James J. Choi, David Laibson, Brigitte C. Madrian

Faculty Publications

We identify employees at seven companies whose 401(k) investment choices are dominated because they are contributing less than the employer matching contribution threshold despite being vested in their match and being able to make penalty-free 401(k) withdrawals for any reason because they are older than 59½. At the average firm, 36% of match-eligible employees over age 59½ forgo arbitrage profits that average 1.6% of their annual pay, or $507. A survey educating employees about the free lunch they are forgoing raised contribution rates by a statistically insignificant 0.67% of income among those completing the survey.

Firm Size Matters: An Empirical Investigation Of Organizational Size And Ownership On Sustainability- Related Behaviors, Peter Jack Gallo, Lisa Jones Christensen

Faculty Publications

The phrase “corporate sustainability” is increasingly prevalent in both the industry press and management journals (Engardio, 2007; Montiel, 2008). Corporate sustainability pledges and reports are also increasingly prevalent, yet empirical studies on how top managers define and enact the construct are lacking. To address this deficiency, we investigate how firms define, support, and report their sustainability efforts. In a large sample (N = 922) study of accounting executives at U.S.-based firms, we find evidence that organizational size, ownership, and industry are strongly related with support mechanisms and reporting of sustainability.

Reit Going Private Decisions, James C. Brau, J. Troy Carpenter, Mauricio Rodriguez, C. F. Sirmans

Faculty Publications

Over the recent decade there was a wave of REITs going private, from an average of about three per year to 40 between 2005 and 2007. Standard corporate finance theory posits that firms go private when there is no longer a positive tradeoff between the expected benefits and the costs of being public, and it provides empirical evidence that going private decisions are motivated by potential gains from leverage, tax benefits, and expected improvements in corporate governance. Given the unique institutional environment for the REIT industry, this paper sheds new light on the going-private decision. Specifically, we examine the determinants …

Forecasting Multivariate Realized Stock Market Volatility, Gregory H. Bauer, Keith Vorkink

Faculty Publications

We present a new matrix-logarithm model of the realized covariance matrix of stock returns. The model uses latent factors which are functions of lagged volatility, lagged returns and other forecasting variables. The model has several advantages: it is parsimonious; it does not require imposing parameter restrictions; and, it results in a positive-definite estimated covariance matrix. We apply the model to the covariance matrix of size-sorted stock returns and find that two factors are sufficient to capture most of the dynamics.

Why Did U.S. Banks Invest In Highly-Rated Securitization Tranches?, Isil Erel, Taylor Nadauld, René M. Stulz

Faculty Publications

We estimate holdings of highly-rated tranches of mortgage securitizations of American deposit-taking banks ahead of the credit crisis and evaluate hypotheses that have been advanced to explain these holdings. We find that holdings of highly-rated tranches were economically trivial for the typical bank, but banks with greater holdings performed more poorly during the crisis. Though univariate comparisons show that banks with large trading books had greater holdings, the holdings of highly-rated tranches are not higher for banks with large trading books in regressions that control for bank size. The ratio of highly-rated tranches holdings to assets increases with bank assets, …

Video Game Design In The Mba Curriculum: An Experiential Learning Approach For Teaching Design Thinking, James Gaskin, Nicholas Berente

Faculty Publications

In the spirit of design thinking, we have developed a ―hands-on‖ video game design workshop intended to be used for an MBA course on design thinking. This novel approach to teaching complex concepts and skills to business students has been received with enthusiasm, and it provides a unique and memorable experience for students to draw on as they encounter situations in which they will apply design thinking in the future. Additionally, student-produced games and student reflections on the workshops provide initial evidence of the value of teaching design thinking through this type of experiential method. In this article we review …

Model-Driven Software Development, Stephen W. Liddle

Faculty Publications

Software development is a complex and difficult task that requires the investment of significant resources and carries major risk of failure. For decades now, researchers have proposed “model-driven” approaches to improve the state of the art in software engineering. Software models are intended to improve communication among stakeholders and aid in the overall understanding both of a problem space and a proposed software solution that satisfies given requirements. As with architectural blueprints or miniature 3D models, software models make it possible to explore and test a design and its ramifications before investing in the actual build-out. The traditional approach to …

Multilingual Ontologies For Cross-Language Information Extraction And Semantic Search, David W. Embley, Stephen W. Liddle, Deryle W. Lonsdale, Yuri Tijerino

Faculty Publications

Valuable local information is often available on the web, but encoded in a foreign language that non-local users do not understand. Can we create a system to allow a user to query in language L1 for facts in a web page written in language L2? We propose a suite of multilingual extraction ontologies as a solution to this problem. We ground extraction ontologies in each language of interest, and we map both the data and the metadata among the language-specific extraction ontologies. The mappings are through a central, language-agnostic ontology that allows new languages to be added by only having …

The Love Of Money Is The Root Of All Evil: Pay Satisfaction And Cpi As Moderators, Thomas Li Ping Tang, Toto Sutarso, Mahfooz A. Ansari, Vivien Kim Geok Lim, Thompson Sian Hin Teo, Fernando Arias-Galicia, Ilya Garber, Peter Vlerick, Jian Liang, Adebowale Akande, Michael W. Allen, Abdulgawi Salim Alzubaidi, Mark G. Borg, Brigitte Charles-Pauvers, Bor Shiuan Cheng, Randy K. Chiu, Linzhi Du, Consuelo Garcia De La Torre, Rosario Correia Higgs, Abdul Hamid Safwat Ibrahim, Chin Kang Jen, Ali Mahdi Kazem, Kilsun Kim, Roberto Luna-Arocas, Eva Malovics, Alice S. Moreira, Richard T. Mpoyi, Anthony Ugochukwu Obiajulu Nnedum, Johnsto E. Osagie, Aahad M. Osman-Gani, Mehmet Ferhat Özbek, Allen F. Stembridge

Faculty Publications

By incorporating pay satisfaction at Level 1 and Corruption Perceptions Index (CPI) at Level 2, we investigated the relationship between the love of money and self-reported corrupt intent among 6,382 managers in 31 geopolitical entities across six continents. Our significant cross-level three-way interaction effect showed that for managers with high pay satisfaction, the intensity (slope) of the love of money to corrupt intent relationship was almost identical in high or low CPI entities but the former had the lowest magnitude of corrupt intent, whereas the latter had the highest. For those with low pay satisfaction, the slope was the steepest …