Business Commons^™

As The Pmi Turns: A Tool For The Supply Chain Manager, Matthew Lindsey, Robert Pavur

Faculty Publications

Supply chain managers use the PMI, an index of business activity and proxy for the general business cycle, to obtain valuable information important to strategic managerial planning. This research explores a methodology to provide managerial insight into the general business cycle by tracking and forecasting cycle turns in the PMI. A regression model is developed based on inherent cycles in the PMI between 12 and 65 months to forecast turning points for the index and anticipate changes in the business cycle, which is superior to the more commonly used Box-Jenkins forecasting technique. Strategic planning using this knowledge allows management to …

Rising Expectations In Business Education, Annette M. Nellen, Marlene E. Turner

Faculty Publications

The article comments on the rising expectations in business education. It explains the term liberal education. It mentions the Liberal Education & America's Promise Campaign launched by the Association of American Colleges & Universities in 2005. The article also notes that integrative learning is particularly relevant because it melds students' professional and liberal educations.

U.S. And Romanian Executive Mba Students: A Cross-Cultural Comparison, Ernest A. Capozzoli, David E. Gundersen, Marcel Duhaneanu

Faculty Publications

Currently, there are over 260 EMBA programs worldwide with approximately 180 programs resident in the United States. The number of programs available for EMBA students has increased competition for those students. One characteristic of this increased competition between EMBA programs is the addition of global initiatives to expose students to other cultures. Part of this global initiative has resulted in alliances and the establishment of working relationships between educational institutions. To facilitate and enhance the learning experience while in an EMBA program these alliances should consider the impact culture plays in shaping student expectations. This paper addresses the question of …

Are We Teaching The Computer Application Skills Employers Need?, Susan Evans Jennings, S. Ann Wilson

Faculty Publications

Among the skills that employers have desired of new employees over the years, computer literacy still ranks near the top. As anyone who uses technology can attest, hardware and software changes are rapid and continual. The question arises as to whether the need for basic computer skills: word processing, spreadsheets, and databases have been replaced or augmented by the need for webpage design, programming, and desktop publishing skills?

Stacking The Deck? An Empirical Analysis Of Agreement Rates Between Pro Tempore Justices And Chief Justices Of California, 1977-2003, James Brent

Faculty Publications

The chief justice of California is empowered to select a pro tempore justice when one or more of the court's regular justices are absent. Chief Justice Rose Bird was accused of using this power to manipulate case outcomes. Contemporary scholarly investigations came to mixed conclusions. Bird's successors have adopted the nondiscretionary method of alphabetical selection. The present study compares the agreement rates of temporary justices with Bird and with her two immediate successors, Malcolm Lucas and Ronald George. It finds evidence of vote bias for Bird, particularly in close cases and cases before April 1981. It does not find evidence …

Interdependent Consumer Choice And The Oval Of Cassini, Aharon Hibshoosh

Faculty Publications

This paper follows a theory of Nicosia and Hibshoosh regarding the choice by social consumer unit who is facing conflicting institutional norms. The paper presents a duo-centric consumer residential choice model with special disutility function. The properties of the Oval of Cassini play a key role in the parstmonious modeling of this phenomenon and in the analysis. Specifically, we develop a residential consumer choice model where the consumer utility is affected by conflicted demands for activities of work and non-work institutions. The consumer unit is simultaneously attracted to two predetermined centers of work and non-work, while making its residence choice. …

Research Agenda For Studying Open Source Ii: View Through The Lens Of Referent Discipline Theories, Ashley R. Davis, Fred Niederman, Martina E. Greiner, Donald Wynn, Paul T. York

Faculty Publications

In a companion paper [Niederman et al., 2006] we presented a multi-level research agenda for studying information systems using open source software. This paper examines open source in terms of MIS and referent discipline theories that are the base needed for rigorous study of the research agenda.

Writing Across Curriculum: Evaluating A Faculty-Centered Approach, Marilyn K. Easter, Rolanda P. Farrington Pollard

Faculty Publications

This paper discusses research on a pilot study for implementing a Writing Across the Curriculum (WAC) program in the College of Business (CoB) at a California Public University. Data analysis focused on faculty and writing assistant satisfaction using interviews, and on student learning as measured by evaluation of progressive writing assignments. Discussion includes: 1) assumptions on which the pilot was based and its goals, 2) overview of how the program was structured and implemented, 3) outcomes of the pilot program, and 4) recommendations for future programs. Results suggest both faculty and student participants were satisfied with the pilot program implementation …

Institutions And Concentration, Todd Mitton

Faculty Publications

In a new dataset of 1.3 million firms in 155 countries, I establish a number of regularities in cross-country differences in economic concentration. Concentration of sales and employment is substantially higher in smaller countries and in less-developed countries; these two factors alone explain roughly half the cross-country variation in concentration. Nevertheless, a number of institutional factors offer additional explanatory power for concentration. Concentration is higher in countries with higher entry costs for new firms, in countries with weaker antitrust policy, in countries with less control of corruption, in countries with weaker rule of law, and in countries with more burdensome …

An Empirical Investigation Of The Minority Interest And Marketability Discounts In Valuation Of Closely Held Stock For Estate And Gift Tax Purposes, Ted D. Englebrecht, Mary M. Anderson, Otto Martinson

Faculty Publications

The discounts for lack of marketability and minority interest are crucial in reducing the value of transferred interests of closely held companies for estate and gift tax purposes. Because the current highest marginal estate and gift tax rate is 49%, there is a strong inducement for CPAs, Attorneys, Investment Bankers, Financial Planners, and others who value these transfers to accurately gauge the judicially allowed discounts for lack of marketability and minority interests in the valuation of closely held stock. This study examines the relationship between Tax Court determined values for lack of marketability and minority discounts to closely held stock …

Online Payment Gateways Used To Facilitate E-Commerce Transactions And Improve Risk Management, Paul Benjamin Lowry, Taylor Michael Wells, Greg Moody, Sean Lamarc Humpherys, Degan Kettles

Faculty Publications

As online transactions continue to increase and become a significant part of the global economy, the ability to accept payments online becomes more important for businesses. This paper evaluates the literature and provides current information for IS researchers and instructors focusing on electronic commerce. In this paper, we explore the components of e-credit providers (conventional, person-to-person, and third-party) and explain how each system processes a single transaction. We then analyze several market leaders in each segment and summarize the strengths and weaknesses of each company. We provide guidelines for selecting an e-credit provider and highlight the options that apply best …

The Contribution Of Couple Leisure Involvement, Leisure Time, And Leisure Satisfaction To Marital Satisfaction, Heather A. Johnson, Ramon Zabriskie, Brian Hill

Faculty Publications

The purpose of this study was to further clarify the relationship between couple leisure patterns and marital satisfaction by examining the contribution of joint couple leisure involvement, leisure time, and leisure satisfaction to couples’ satisfaction with married life. The sample consisted of 48 married couples (N = 96). The Marital Activity Profile (MAP), a modified version of the Family Leisure Activity Profile (FLAP) was used to determine couple leisure involvement in core and balance leisure activities and leisure satisfaction. The Satisfaction With Married Life (SWML), a modified version of the Satisfaction With Life Scale (SWLS) was used to measure marital …

Aligning Employees Through "Line Of Sight", Wendy R. Boswell, John B. Bingham, Alexander J.S. Colvin

Faculty Publications

Aligning employees with the firm’s larger strategic goals is critical if organizations hope to manage their human capital effectively and ultimately attain strategic success. An important component of attaining and sustaining this alignment is for employees to have a bline of sightQ (LOS) with their organization’s strategic objectives. In this article, we illustrate how the translation of calculated firm goals into tangible results requires that employees not only understand the organization’s strategy, but also accurately appreciate what actions are aligned with realizing that strategy. Using recent empirical evidence, theoretical insights, and tangible examples of exemplary firm practices, we provide thought-leaders …

Horizontal Inequity In The Property Taxation Of Apartment, Industrial , Office, And Retail Properties, Gary C. Cornia, Barrett A. Slade

Faculty Publications

Researchers have carefully examined assessment unifor- mity in ad valorem taxation for single-family residential properties and they have frequently reported nonuniform outcomes in the appraisal of these properties. This study analyzes the uniformity of assessed valuations across apartment, industrial, office, and retail properties in Maricopa County (Metropolitan Phoenix), Arizona. Specifically, we investigate horizontal equity, which results when the assessment ratio (assessed value/sales price) is uniform across properties with similar market values. We examine horizontal equity over a five-and-one-half-year period (January 1998-June 2003). After applying both parametric and nonparametric tests, we find statistically significant evidence of horizontal inequity. We find that …

How Do Crises Spread? Evidence From Accessible And Inaccessible Stock Indices, Brian H. Boyer, Tomomi Kumagai, Kathy Yuan

Faculty Publications

We provide empirical evidence that stock market crises are spread globally through asset holdings of international investors. By separating emerging market stocks into two categories, namely, those that are eligible for purchase by foreigners (accessible) and those that are not (inaccessible), we estimate and compare the degree to which accessible and inaccessible stock index returns co-move with crisis country index returns. Our results show greater co-movement during high volatility periods, especially for accessible stock index returns, suggesting that crises spread through the asset holdings of international investors rather than through changes in fundamentals.

Evidence On What Cfos Think About The Ipo Process: Practice, Theory, And Managerial Implications, James C. Brau, Stanley E. Fawcett

Faculty Publications

Many privately held companies aspire to go public through an initial public offering. But the IPO process is time-consuming, expensive, and fraught with uncertainty. With the aim of shedding light on the process and reducing at least some of the uncertainty, the authors asked several hundred CFOs to share their experiences and perceptions with regard to six specific aspects of the IPO process: (1) motives for going public; (2) the timing of IPOs; (3) criteria for choosing an underwriter; (4) cause of IPO underpricing; (5) IPO signaling; and (6) reasons to stay private.

Why Have Debt Ratios Increased For Firms In Emerging Markets?, Todd Mitton

Faculty Publications

I study trends in capital structure between 1980 and 2004 in a sample of over 11,000 firms from 34 emerging markets. The average firm's book-value debt ratio rose by 10 percentage points over this quarter century; market-value debt ratios rose by 15 percentage points. I study how this rise in leverage was influenced by the firm-level demand for and the country-level supply of debt financing. The central finding is that the increase in debt ratios can largely be attributed to changes in the characteristics of emerging market firms over this period. For the average firm, the most prominent determinants of …

Hrm Strategies In Structurally Depressed Industries: The Japanese Approach, Mahesh N. Rajan, O. K. Gupta

Faculty Publications

Several adverse macro-economic trends beginning in the early 1970’s drastically reduced the relative competitiveness of various sectors of the Japanese economy. Firms in Western (industrialized) countries that were faced with a similar loss of comparative advantage dealt with the problem by undertaking strategies of restructuring--primarily, retrenchment and downsizing strategies. However, in sharp contrast to the Western approach, the Japanese response to industrial decline, from a HRM standpoint, was a product of the political, cultural, and social institutions/values of that society. The Japanese government, business sector and the labor unions worked together to ‘maintain’ employment levels (albeit, mainly that of permanent …

Supply And Demand Shifts In The Shorting Market, Lauren Cohen, Karl B. Diether, Christopher J. Malloy

Faculty Publications

Using proprietary data on stock loan fees and quantities from a large institutional investor, we examine the link between the shorting market and stock prices. Employing a unique identification strategy, we isolate shifts in the supply and demand for shorting. We find that shorting demand is an important predictor of future stock returns: An increase in shorting demand leads to negative abnormal returns of 2.98% in the following month. Second, we show that our results are stronger in environments with less public information flow, suggesting that the shorting market is an important mechanism for private information revelation.

The Application Of Model Checking For Securing E-Commerce Transactions, Bonnie Anderson, James V. Hansen, Paul Benjamin Lowry, Scott L. Summers

Faculty Publications

As firms become progressively more dependent on Internet-based information systems, they are increasingly vulnerable to defects in those systems. These defects can lead to errors, undetected fraud, and malicious intrusion. Information system errors can be catastrophic, whether they occur in market transactions, banking, air traffic control, and so forth. Resulting damages can include lost revenue, lost data, lost trust, and increased costs.

Consequently, effective design of e-business processes is essential to avoid defects that can otherwise lead to errors, fraud, and intrusion. Whereas carefully designed e-business protocols can perform effectively within most expected situations, assuring correct processing under all circumstances …

Family Acculturation, Family Leisure Involvement, And Family Functioning Among Mexican-Americans, Owen D. Christenson, Ramon B. Zabriskie, Dennis L. Eggett, Patti A. Freeman

Faculty Publications

The purpose of this study was to examine the relationship between acculturation and family leisure involvement and aspects of family functioning ( cohesion and adaptability) from Mexican-American parent, youth, and family perspectives. Acculturation was measured using the Bidimensional Acculturation Scale for Hispanics (BAS), family leisure involvement was measured using the Family Leisure Activity Profile (FLAP), and family functioning was measured using the Family Adaptability and Cohesion Evaluation Scales (FACES II). The sample was obtained from communities in Texas and Utah and consisted of 74 Mexican-American families, including a parent and child from each family. After adjusting for sociodemographic variables, the …

Relation-Specific Capabilities And Barriers To Knowledge Transfers: Creating Advantage Through Network Relationships, Jeffrey H. Dyer, Nile W. Hatch

Faculty Publications

This study examines the role of network knowledge resources in influencing firm performance. More specifically: Can a firm that uses the identical supplier network as competitors and purchases similar inputs from the same plants achieve a competitive advantage through that network? In a sample of U.S. automotive suppliers selling to both Toyota and U.S. automakers, we found that greater knowledge sharing on the part of Toyota resulted in a faster rate of learning within the suppliers’ manufacturing operations devoted to Toyota. Indeed, from 1990 to 1996 suppliers reduced defects by 50 percent for Toyota vs. only 26 percent for their …

Individual Cognition And Dual-Task Interference In Group Support Systems, William G. Heninger, Alan R. Dennis, Kelly Mcnamara Hilmer

Faculty Publications

Previous research shows that synchronous text discussion through group support systems (GSS) can improve the exchange of information within teams, but this improved information exchange usually does not improve decisions because participants fail to process the new information they receive. This study examined one potential cause for this failure: Dual-task interference caused by the need to concurrently process new information from others while also contributing one's own information to the discussion. Although prior research argues that dual-task interference should be minimal, we found that it significantly reduced participants' information processing and led to lower decision quality. The effect sizes were …

Saving For Retirement On The Path Of Least Resistance, James J. Choi, David Laibson, Brigitte C. Madrian, Andrew Metrick

Faculty Publications

We assess the impact on savings behavior of several different 401(k) plan features, including automatic enrollment, automatic cash distributions, employer matching provisions, eligibility requirements, investment options, and financial education. We also present new survey evidence on individual savings adequacy. Many of our conclusions are based on an analysis of micro-level administrative data on the 401(k) savings behavior of employees in several large corporations that implemented changes in their 401(k) plan design. Our analysis identifies a key behavioral principle that should partially guide the design of 401(k) plans: employees often follow “the path of least resistance.” For better or for worse, …

Body Image And Beliefs About Appearance: Constraints On The Leisure Of College-Age And Middle-Agewomen, Toni Liechty, Patti A. Freeman, Ramon B. Zabriskie

Faculty Publications

The purpose of this study was to examine the relationships among body image, beliefs about appearance, and leisure constraints for college-age women and their mothers. The Body-Image Assessment Scale, the Beliefs About Appearance Scale, and a hierarchical leisure constraints scale were used to assess body image concerns, and leisure constraints. A convenience sample of 116 female students at a private American university and 76 of their mothers was utilized. Multiple regression and t-tests were used to analyze the data. Findings suggested that body image and beliefs about appearance pose leisure constraints for college-age and middle-age women. Findings also suggested that …

Constructing Commercial Indices: A Semiparametric Adaptive Estimator Approach, Douglas J. Hodgson, Barrett A. Slade, Keith Vorkink

Faculty Publications

Constant-quality commercial indices generated by ordinary least squares may suffer an efficiency loss due to leptokurtosis caused by outliers in transactions data. When the subsequent nonnormality occurs, substantial improvement in index precision is obtained by estimating the hedonic model using a semiparametric adaptive estimator technique. When this method was applied to 1,846 office transactions that occurred in the Phoenix metropolitan area from January 1997 through June 2004, a substantial standard error reduction of approximately 9% was realized relative to ordinary least squares estimates. The difference in average returns between the semiparametric method and ordinary least squares was about 0.25% in …

Initial Public Offerings: Cfo Perceptions, James C. Brau, Patricia A. Ryan, Irv Degraw

Faculty Publications

We examine four issues pertaining to initial public offerings (IPOs) using a survey of 438 chief financial officers (CFOs). First, why do firms go public? Second, is CFO sentiment stationary across bear and bull markets? Third, what concerns CFOs about going public? Fourth, do CFO perceptions correlate with returns? Results support funding for growth and liquidity as the primary reasons for IPOs. CFO sentiment is generally stationary in pre- and post-bubble years. Managers are concerned with the direct costs of going public, such as underwriting fees, as well as indirect costs.We find a negative relation between a focus on immediate …

A Theoretical Model And Empirical Results Linking Website Interactivity And Usability Satisfaction, Paul Benjamin Lowry, Trent Spaulding, Taylor Wells, Greg Moody, Kevin Moffit, Sebastian Madariaga

Faculty Publications

Usability is a key component of websites that are commercially successful. Interactivity has been inconclusively linked to website usability. This study strengthens the theoretical understanding of how interactivity affects usability by measuring user satisfaction—a subconstruct of usability—across bookstore and e-card websites. We build on theoretical models from Liu and Shrum [17] and Khalifa and Liu [15]. Users were asked to perform tasks of varying levels of interactivity at bookstore and e-card websites. Measures were obtained for the user’s expectations of, desires for, and satisfaction with the websites. Results indicate that interactivity is successfully able to increase website satisfaction. Finally, implications …

Why Do Reits Repurchase Stock? Extricating The Effect Of Managerial Signaling In Open Market Share Repurchase Announcements, James C. Brau, Andrew Holmes

Faculty Publications

This paper explores the effect of stock repurchase announcements on equity returns for publicly traded real estate investment trusts (REITs). In addition to providing analysis of the corporate decision to repurchase shares, the study of share repurchases in the context of REITs provides a novel opportunity to disentangle the impact of competing theories for the abnormal returns observed around repurchase announcements. Prior literature advances six hypotheses to explain the stock price reaction associated with repurchases. Given that the theories all predict the same stock price reaction, existing studies are unable to disentangle the competing hypotheses. The intent of this research …

Information Pursuit In Financial-Statement Analysis: Effects Of Choice, Effort, And Disaggregation, Mark W. Nelson, William B. Tayler

Faculty Publications

Prior research provides evidence that financial-statement users weight information less heavily in judgment when that information is provided in a less accessible format (e.g., information disclosed in a footnote or less important financial statement rather than being recognized on the income statement (Maines and McDaniel 2000)). We provide evidence that, conditional on users performing the analysis necessary to transform the financial statements to appear as if disclosed information had been recognized, users may weight that information more heavily than it would have been if it had been recognized. Our experiments are set in the context of constructive capitalization of operating …