Business Commons^™

Quantifying The Structure Of Residential Water Demand In The United States: A Generalized Exact Affine Stone Index Demand Framework, Bakhtavoryan Rafael, Vardges Hovhannisyan

Faculty Publications

We utilize a Generalized Exact Affine Stone Index system to evaluate the structure of residential water demand that recognizes demand interrelationship between residential and bottled water in the United States, allowing for precommitted consumption. Further, we address expenditure and price endogeneity by accounting for the supply side of the price determination mechanism. A significant substitutability relationship between residential and bottled water is found, while substantial precommitments are established in both residential and bottled water consumption. Residential demand becomes price-elastic once the precommitted level is reached. Finally, ignoring substitutability, precommitments, or endogeneity distorts the demand structure, resulting in erroneous policy implications.

A Dichotomy Of Sport Sponsorships: Does The Nature Of Competition Among Sponsors Matter?, Thomas Doellman, Brian Walkup, Adrien Bouchet, Brian Chabowski

Faculty Publications

In this paper, we argue that the firm value implications of sport sponsorships for sponsors may depend on the competitive environment during the bidding process for different types of sponsorships. More specifically, we contend that the bidding environment for professional football (soccer) kit sponsorships represents a form of common value auction, while the bidding environment for corporate logo sponsorships on teams’ shirts does not. As common value auctions are prone to winner’s curse, the firm value implications should be different for kit sponsorship announcements than for shirt sponsorship announcements. Our results suggest that shareholders indeed perceive the value derived from …

Cheating For The Cause: The Effects Of Performance-Based Pay On Socially Oriented Misreporting, Jessen L. Hobson, Ryan D. Sommerfeldt, Laura W. Wang

Faculty Publications

We examine the effect of performance-based pay on misreporting intended to benefit a social mission. We show that performance-based pay decreases people’s propensity to misreport for a social mission in a not-for-profit setting (Experiment 1). We similarly show that in a for-profit setting, performance-based pay also decreases misreporting propensity for a social mission, although not for a non-social mission (Experiment 2). Finally, using a framed field experiment with participants attending a conference hosted by a real charity, we show that performance-based pay reduces actual misreporting when misreporting leads to more donations for the charity (Experiment 3). These results are consistent …

A Perspective On Bribes And Bribery, Annetta Gibson

Faculty Publications

No abstract provided.

Auditing Non-Gaap Measures: Signaling More Than Intended, Spencer B. Anderson, Jessen L. Hobson, Ryan D. Sommerfeldt

Faculty Publications

Many companies regularly disclose non-GAAP performance measures to communicate firm-specific information that does not fit within the mold of GAAP reporting. However, these non- GAAP measures may have low information content or even be misleading to investors. Thus, the question arises of whether auditors should play a larger role in the reporting of non-GAAP measures, which currently are not audited. We run an experiment to provide ex ante evidence on the effect of auditing non-GAAP measures. Specifically, we present investor-participants with a non- GAAP measure that should be used when making investment judgments (more informative) or should not be used …

Play, Chat, Date, Learn, And Suffer? Merton’S Law Of Unintended Consequences And Digital Technology Failures, Mark Rosenbaum, Gabby Walters, Karen Edwards J.D., Claudia Gonzalez, Germán Contreras Ramírez

Faculty Publications

No abstract provided.

Addressing Sustainable Rural Development With Shared Value: A Peruvian Model From The Cacao Industry, Armando Borda, Oswaldo Morales, Hildy J. Teegen, Gareth H. Rees, Maria Alejandra Gonzalez-Perez

Faculty Publications

Here we present a model aimed at contributing to the literature around sustainable supply chains by examining a novel redesign initiative of the chocolate supply chain within the Peruvian cacao (cocoa) industry. Using the Creating Shared Value (CSV) framework, we apply the case study method in examining the Peruvian Cacao Alliance's experience in redesigning both the stages and relationships within its supply of cacao to the world. Data were collected from both primary and secondary sources and analyzed after coding from categories defined in the literature on CSV. The case demonstrates the opportunity to successfully participate in the supply chains …

Strategic Human Resource Management And Covid-19: Emerging Challenges And Research Opportunities, David G. Collings, John Mcmackin, Anthony Nyberg, Patrick M. Wright

Faculty Publications

No abstract provided.

Inclusive Growth In Africa: Are Chinese Investment And Local Industry Participation Compatible?, Emmanuel T. Kodzi

Faculty Publications

Purpose - This study set out to explore whether increasing Chinese FDI is associated with rising contributions of local industry in African countries connected to the Belt and Road Initiative (BRI). The existence of cooperative industry linkages between Chinese investments and local businesses is a necessary condition for achieving the mutual benefits asserted by the BRI.

Design/methodology/approach - Under growing FDI, we framed increasing local industry contribution as indicative of existing industry linkages. Using principal component analysis and multiple regression on collated country-level data, we examined relationships between key industry output variables and several independent variables representing Chinese investment and …

Prioritizing Facilities Linked To Corporate Strategic Objectives Using A Fuzzy Model, Devin Depalmer, Steven J. Schuldt, Justin D. Delorit

Faculty Publications

Excerpt: Limited facilities operating and modernization budgets require organizations to carefully identify, prioritize and authorize projects to ensure allocated resources align with strategic objectives. Traditional facility prioritization methods using risk matrices can be improved to increase granularity in categorization and avoid mathematical error or human cognitive biases. These limitations restrict the utility of prioritizations and if erroneously used to select projects for funding, they can lead to wasted resources. This paper aims to propose a novel facility prioritization methodology that corrects these assessment design and implementation issues.

Investors’ Reactions To Csr News In Family Versus Nonfamily Firms: A Study On Signal (In)Credibility, Naciye Sekerci, Jamil Jaballah, Marc Van Essen, Nadine Kammerlander

Faculty Publications

We study family firm status as an important condition in signaling theory; specifically, we propose that the market reacts more positively to positive, and more negatively to negative, CSR news (i.e., signals) from family firms than to similar news from nonfamily firms. Moreover, we propose that during recessions, the direction of these relationships reverses. Based on an event study of 1247 positive and negative changes in the CSR ratings for all firms listed on the French SFB120 stock market index (2003-2013), we find support for our hypotheses. Moreover, a post hoc analysis reveals that the relationships are contingent on whether …

Mining Open Government Data For Business Intelligence Using Data Visualization: A Two-Industry Case Study, Anne Gottfried, Caroline Hartmann, Donald Yates

Faculty Publications

The business intelligence (BI) market has grown at a tremendous rate in the past decade due to technological advancements, big data and the availability of open source content. Despite this growth, the use of open government data (OGD) as a source of information is very limited among the private sector due to a lack of knowledge as to its benefits. Scant evidence on the use of OGD by private organizations suggests that it can lead to the creation of innovative ideas as well as assist in making better informed decisions. Given the benefits but lack of use of OGD to …

Santa Claus Rally And The Indian Stock Market: A Comprehensive Analysis, Srinvias Nippani, Shekar Shetty

Faculty Publications

The study examines the leading Indian stock market indices all of which reflect the “Santa Claus rally” effect where significantly higher daily returns accrue to investors in the last five trading days of December and the first two trading days of the following January. The study also reveals that the BSE SENSEX started exhibiting this effect only during the post-1991 period. Additionally, the results indicate that there is a size effect associated with the Santa Claus rally effect wherein small-cap companies outperform mid-cap and large-cap companies. The evidence also suggests that the effect is prominent in eight industry-specific sub-sectors.

Beverage Bottle Capacity, Packaging Efficiency, And The Potential For Plastic Waste Reduction, Rafael Becerril Arreola, R. E. Bucklin

Faculty Publications

Plastic pollution is a pressing issue because authorities struggle to contain and process the enormous amount of waste produced. We study the potential for reducing plastic waste by examining the efficiency with which different polyethylene terephthalate (PET) bottles deliver beverages. We find that 80% of the variation in bottle weight is explained by bottle capacity, 16% by product category, and 1% by brand. Bottle weight is quadratic and convex function of capacity, which implies that medium capacity bottles are most efficient at delivering consumable product. Local data on PET bottle sales and municipal waste recovery validate the findings. A 20% …

Taking Advantage Of Institutional Weakness? Political Stability And Foreign Subsidiary Survival In Primary Industries, Nathaniel C. Lupton, Donya Behnam, Alfredo Jiménez

Faculty Publications

Purpose

This paper aims to investigate the extent to which locating primary industry subsidiaries in politically unstable countries impacts their survival. The authors argue that foreign multinational enterprises in less stable political environments can shape policies that are impactful on the costs of operating in primary industries and avoid compliance with more stringent policies at home.

Design/methodology/approach

Using a sample of 753 primary sector investments of Japanese multinational enterprises during the period 1986 to 2013, the authors conduct a parametric survival analysis of the relationship between political stability and subsidiary survival.

Findings

Political instability has a slight, curvilinear relationship with …

Joint Innovation Investment And Pricing Decisions In Retail Supply Chains With Customer Value, Jiali Qu, Benyong Hu, Chao Meng

Faculty Publications

In the retail industry, customer value has become the key to maintaining competitive advantages. In the era of new retail, customer value is not only affected by the product price, but it is also closely related to innovations, such as value‐added services and unique business models. In this paper, we study the joint innovation investment and pricing decisions in a retailer–supplier supply chain based on revenue sharing contracts and customer value. We first find that, in the non-cooperative game, equilibrium only exists in the supplier Stackelberg game. However, revenue sharing contracts cannot coordinate the supply chain in the non‐cooperative game. …

Models For Brand Relationships, Marc Fetscherin, Cleopatra Veloutsou, Francisco Guzman

Faculty Publications

No abstract provided.

How Different Esg Factors Across Cultures Affect Financial Performance, Matej Susec, Marc Sardy

Faculty Publications

This paper examines the financial performance of publicly traded companies based on their ESG factors’ specific commitment across different cultures. Using ESG ratings from HIP Investor Inc. on companies the agency evaluates and cultural dimensions as defined by Geert Hofstede, the average stock return of companies was compared to countries’ main stock indexes. The results show that the majority of the analyzed combinations of ESG factors and cultural dimensions outperformed the main stock indexes between the years 2016 and 2020. Moreover, it seems that for ESG committed companies, culture plays a role in ESG practices as well as financial performance.

Japan's Stock Market Performance: Evidence From Toda-Yamamoto And Dolado-Lutkepohl Tests For Multivariate Granger Causality, Kishor K. Guru-Gharana, Matiur Rahman, Anisul M. Islam

Faculty Publications

This paper empirically examines the causal linkages of Japan's stock market (proxied by Nikkei 225 index) performance with selected key macroeconomic fundamentals. Relatively recent Toda-Yamamoto and Dolado-Lutkepohl, multivariate Granger causality tests are implemented. Monthly time series data from September 1974 to February 2017 with a large sample size of 510 monthly observations covering the floating exchange rate regime were utilized. The study documents some interesting and some unexpected results. Bi-directional causality is evidenced only between the stock market and the industrial production. Somewhat counterintuitively, unidirectional causality runs from stock market to money supply. Furthermore, unidirectional causality flows from interest rate …

Articulating Conceptual Modeling Research Contributions, Lois M. L. Delcambre, Stephen W. Liddle, Oscar Pastor, Veda C. Storey

Faculty Publications

To contribute to the ongoing discussions related to understanding and organizing the field of conceptual modeling, this paper presents a reference framework for articulating conceptual modeling research. The framework accommodates the diverse nature of conceptual modeling research contributions. The framework can describe many styles of research, including empirical research. The framework was inspired by, and is able to characterize, a large set of published papers in conceptual modeling. The framework allows researchers and reviewers to acknowledge the contributions of their work. Using the framework to describe a research paper also promotes meaningful discussion among reviewers and readers.

Improving The Quality Of Survey Data: Using Answering Behavior As An Alternative Method For Detecting Biased Respondents, Manasvi Kumar, David Kim, Joseph S. Valacich, Jeffrey L. Jenkins, Alan R. Dennis

Faculty Publications

Online surveys are used for collecting self-report data. Despite their prevalent use, data quality problems persist due to various response biases. Here, we demonstrate how participant answering behaviors can be used to identify biased responses. We administered an online survey where participants reported their personality dimensions of neuroticism and extraversion—two personality dimensions that have been previously shown to be correlated with a propensity to deceive—and were later presented with a scenario to exhibit deceptive behavior. We then generated models to predict deception using the neuroticism and extraversion constructs. Using respondents’ fine-grained mouse movement data when answering these questions, we generated …

Anti-Consumption In The Context Of Brand Relationships, Marc Fetscherin, Raghabendra Kc

Faculty Publications

This paper presents a conceptual model that outlines the various brand relationships consumers have with a special focus on negative brand relationships that relates to anti-brand behaviors.

Based on the empathy map, the model consists of four main parts: how consumers think (share of mind) and feel (share of heart) about brands, which in turn effects what consumers say (share of voice) and do (share of wallet) with them.

The model combines more than 40 branding concepts into one comprehensive, coherent, unified and easy-to-understand model where concepts are categorized by their degree of intensity.

Green Talent Management And Turnover Intention: The Roles Of Leader Stara Competence And Digital Task Interdependence, Samuel Ogbeibu, Charbel Jose Chiappetta Jabbour, John Burgess, James Gaskin, Douglas W.S. Renwick

Faculty Publications

Purpose – Congruent with the world-wide call to combat global warming concerns within the context of advancements in smart technology, artificial intelligence, robotics, algorithms (STARA), and digitalisation, organisational leaders are being pressured to ensure that talented employees are effectively managed (nurtured and retained) to curb the potential risk of staff turnover. By managing such talent(s), organisations may be able to not only retain them, but consequently foster environmental sustainability too. Equally, recent debates encourage the need for teams to work digitally and interdependently on set tasks, and for leaders to cultivate competencies fundamental to STARA, as this may further help …

Configurational-Based Institutional Analysis: Unbundling The Multi-Dimensional State Fragility Construct, Joshua K. Ault, Andrew Spicer

Faculty Publications

To guide researchers interested in replicating our configurational approach to comparative institutional analysis, we report on a methodology that builds from existing state fragility indices to differentiate between types of state fragility in 189 countries across the world. We first present the steps we used to identify three constituent dimensions of state fragility. We then report how we configured these first-order institutional measures to build a large-N, fuzzy set qualitative set analysis (fs/QCA) of variation in the degree and type of informal economic sectors found across the world. Our discussion of the methodology shows that:

• Configurational-based analysis requires unbundling aggregate …

Mitigating The Security Intention-Behavior Gap: The Moderating Role Of Required Effort On The Intention-Behavior Relationship, Jeffrey L. Jenkins, Alexandra Durcikova, Jay F. Nunamaker Jr.

Faculty Publications

Although users often express strong positive intentions to follow security policies, these positive intentions fail to consistently translate to behavior. In a security setting, the inconsistency between intentions and behavior—termed the intention-behavior gap—is particularly troublesome, as a single failure to enact positive security intentions may make a system vulnerable. We address a need in security compliance literature to better understand the intention-behavior gap by explaining how an omnipresent competing intention—the user’s desire to minimize required effort—negatively moderates the relationship between positive intentions and actual security behavior. Moreover, we posit that this moderating effect is not accounted for in extant theories …

Don't Call Us, We'll Call You: An Empirical Study Of Caller Behavior Under A Callback Option, Brett A. Hathaway, Seyed Morteza Emadi, Vinayak Deshpande

Faculty Publications

While call centers have recently invested in callback technology, the impact of this innovation on caller behavior and call center performance is not clearly understood. Using call center data from a US commercial bank, we perform an empirical study of the callers' decision-making process in the presence of a callback option. We formulate a structural model of the caller decision-making process, and impute their underlying preferences from the data. Our estimates show that callers experience substantially less discomfort per unit of time while waiting for callbacks than while waiting in queue. However, we also find that, after controlling for expected …

The Effect Of New Accounting Standards On The Performance Of Quantitative Investors*, Travis Dyer, Nicholas Guest, Jia Yin (Elisha) Yu

Faculty Publications

Quantitative investing relies on stable data generating processes and limited human involvement, which could create lower flexibility in the face of changing economic conditions. In this study, we examine quantitative investors’ ability to navigate a common and material change to the financial data generating process: new accounting standards. We find that returns of quantitative mutual funds temporarily decrease following the implementation of standards that change the definition of key accounting variables. The lower performance we document is relative to more traditional “discretionary” funds that rely heavily on human skill and judgment to make day-to-day investment decisions. Our result is predictably …

Factors Affecting The Outcomes Of Legal Claims Against Auditors, Karen D. De Meyst, D. Jordan Lowe, Mark E. Peecher, Jeffrey Pickerd, Andrew Reffett

Faculty Publications

Maksymov, Pickerd, Lowe, Peecher, and Reffett (2020b) draw insights based on interviews with 27 prominent audit litigation attorneys about the factors affecting the initiation of legal claims against auditors and how such factors affect settlement outcomes. We summarize their key findings and discuss important implications for audit practitioners. Specifically, we focus on the key factors that affect plaintiff attorneys’ willingness to pursue legal claims against auditors, including the merits of the claim, size of alleged economic damages, auditors’ ability to pay, and the expected cost to pursue the claim. We also discuss the reasons why most audit disputes settle (as …

Tutorial: Mapping Your Institutional Curriculum To The Is2020 Competency Model, Paul M. Leidig, Hannu Salmela, Greg Anderson, Jeff Babb, Venky Shankararaman, Raja Sooriamurthi, Mark Thouin

Faculty Publications

The Association of Computing Machinery (ACM) and the Association for Information Systems (AIS), two global professional and academic societies with a stake in Information Systems (IS) education, engaged in a project to revise the Information Systems Curriculum for bachelor’s degrees. This tutorial introduces the recently approved IS2020 competency guidelines, hence serving to disseminate the IS competency model and related guidelines within the SIGED community. This tutorial session should be of interest to all IS academics, especially faculty developing college-level curricula in Information Systems.

Are Monthly Market Returns Predictable?, Jussi Keppo, Tyler Shumway, Daniel Weagley

Faculty Publications

We document significant persistence in the market timing performance of active individual investors, suggesting that some investors are skilled at timing. Using data on all trades by active Finnish individual investors over almost 15 years, we also show that the net purchases of skilled versus unskilled investors predict monthly market returns. Our results lend credibility to the view that market returns are predictable, without having to specify which variables active investors use to successfully time the market.