Business Commons^™

A Case Of Fixed Asset Accounting: Initial And Subsequent Measurement, Jodi L. Gissel

Accounting Faculty Research and Publications

This instructional case integrates multiple accounting concepts relating to fixed asset acquisition and subsequent measurement. You must apply accounting knowledge, professional judgment, and critical thinking skills to evaluate fixed assets and make recommendations. You must also analyze differences between fixed asset accounting under US generally accepted accounting principles and IFRS. As a student, you generally understand basic application of asset cost computation that simply recognizes the amount of cash paid for acquiring the asset. However, determining asset cost becomes challenging when you encounter more complex situations. You must consider initial measurement issues relating to a land purchase (demolition of existing …

A Deeper Look Into The Complex Relationship Between Social Media Use And Academic Outcomes And Attitudes, Martin Hassell, Mary Sukalich

Management Faculty Research and Publications

No abstract provided.

Managing The Tensions At The Intersection Of The Triple Bottom Line: A Paradox Theory Approach To Sustainability Management, Lucie K. Ozanne, Marcus Phipps, Todd Weaver, Michal Carrington, Michael Luchs, Jesse Callin, Shipra Gupta, Nicholas J. C. Santos, Kristin Scott, Jerome Williams

Marketing Faculty Research and Publications

Corporate sustainability management encompasses multiple dimensions: environmental, social, and economic. Companies are increasingly evaluated within the public sphere, and within their own organizations, according to the degree to which they are perceived to simultaneously promote this nexus of virtues. This article seeks to explore the tensions frequently faced by organizations that strive to manage these dimensions and the role of public policy in that pursuit. A multiple–case study approach is utilized in which the authors selected case organizations according to whether they were attempting to manage the three dimensions of sustainability. The authors utilize paradox theory and a typology provided …

Drivers Behind The Monitoring Effectiveness Of Global Institutional Investors: Evidence From Earnings Management, Incheol Kim, Steve Miller, Hong Wan, Bin Wang

Finance Faculty Research and Publications

This paper studies the drivers behind the monitoring effectiveness of institutional investors in curbing earnings management in an international setting. We identify three distinct drivers and propose two competing hypotheses: the hometown advantage hypothesis predicts that because of proximity to monitoring information, domestic institutions have a comparative advantage over foreign institutions in deterring earnings management, whereas the global investor hypothesis predicts that foreign institutions have a comparative advantage because of their proclivity toward activism and ability to deploy superior monitoring technologies. Consistent with the hometown advantage hypothesis, in aggregate, domestic, but not foreign, institutional ownership is associated with less earnings …

Professor Walks Into A Bar: Using Humor And Q-Score To Determine Instructor And Department Appeal, Alexander Milovic, Rebecca Dingus, Nina Krey

Marketing Faculty Research and Publications

Building on existing research on humor in the classroom, the authors propose a research design that examines the effect of humor on a professor's effectiveness in the classroom. The concept of Q-Score is applied to academia, which is a popular rating used by advertisers to measure source attractiveness and determine celebrity appeal. Several factors leading to teaching effectiveness and “favorite prof” status are explored in addition to overall effects of humor in the classroom. This study combines evaluations from popular student-viewed websites, student evaluations, and a Humor Orientation scale. An awareness and application of this metric can assist professors in …

Ambivalence In Organizations: A Multilevel Approach, Blake E. Ashforth, Kristie M. Rogers, Michael G. Pratt, Camille Pradies

Management Faculty Research and Publications

The experience of simultaneously positive and negative orientations toward a person, goal, task, idea, and such appears to be quite common in organizations, but it is poorly understood. We develop a multilevel perspective on ambivalence in organizations that demonstrates how this phenomenon is integral to certain cognitive and emotional processes and important outcomes. Specifically, we discuss the organizational triggers of ambivalence and the cognitive and emotional mechanisms through which ambivalence diffuses between the individual and collective levels of analysis. We offer an integrative framework of major responses to highly intense ambivalence (avoidance, domination, compromise, and holism) that is applicable to …

Capital Structure And Political Risk In Asia-Pacific Real Estate Markets, George D. Cashman, David M. Harrison, Michael J. Seiler

Finance Faculty Research and Publications

This study investigates the determinants of capital structure decisions by real estate firms, with a specific focus on the impact of political risk on leverage. Using a sample of Asia-Pacific REITs and listed property trusts, we find those firms with properties located in countries characterized by relatively high degrees of political risk, such as political instability, and/or greater uncertainty in the ability to repatriate and monetize profits from international investment activities, employ less debt than their counterparts operating in more politically stable environments. This core finding remains robust to alternative sample selection criteria including the division of the sample into …

The Adoption And Use Of The Hirschman–Herfindahl Index In Nonprofit Research: Does Revenue Diversification Measurement Matter?, Grace L. Chikoto, Qianhua Ling, Daniel G. Neely

Accounting Faculty Research and Publications

Since its introduction by Tuckman and Chang, the Hirschman–Herfindahl Index (HHI) has been widely adopted into the nonprofit literature as a precise measure of revenue concentration. This widespread adoption has been characterized by diverse composition, with the HHI’s calculation being largely determined by the nature of the available data and the degree to which it contained disaggregated measures of revenue. Using the NCCS 990 Digitized Data, we perform an acid test on whether different HHI measures yield significantly different results. Four measures of revenue concentration—an aggregated measure based on three revenue streams, an aggregated measure separating government grants from other …

Clawback Provisions In Real Estate Investment Trusts, George D. Cashman, David M. Harrison, Christine A. Panasian

Finance Faculty Research and Publications

Using a sample of 195 unique real estate investment trusts (REITs), we examine factors related to the adoption of clawback provisions within managerial compensation contracts. In general, we find strong and consistent empirical evidence that clawback provision are directly related to firm size, complexity, leverage, growth options, monitoring incentives, and CEO performance incentives. We also find that clawbacks are associated with enhanced market and accounting performance, with stronger performance relations observed for adoption decisions tied directly to regulatory mandates. In sum, we conclude compensation clawback provisions represent a value-relevant, strategic governance mechanism for REITs.

Rent Appropriation In Strategic Alliances: A Study Of Technical Alliances In Pharmaceutical Industry, Margaret Hughes-Morgan, B. Emery Yao

Management Faculty Research and Publications

Many existing alliance studies have investigated how embedded relations create superior value for organizations. The role of network structure in rent appropriation or pie splitting, however, has been underexplored. We propose that favorable locations in interorganizational networks provide firms with superior opportunities for appropriating more economic benefits from alliances than their partners do. Specifically, we argue that partners’ asymmetric network positions will lead to unequal brokerage positions that promote disparate levels of information gathering, monitoring, and bargaining power, which lead to differing capacities to appropriate value. This in turn results in variations in market performance. We also propose this brokerage …

Development And Validation Of A Rule-Based Time Series Complexity Scoring Technique To Support Design Of Adaptive Forecasting Dss, Monica Adya, Edward J. Lusk

Management Faculty Research and Publications

Evidence from forecasting research gives reason to believe that understanding time series complexity can enable design of adaptive forecasting decision support systems (FDSSs) to positively support forecasting behaviors and accuracy of outcomes. Yet, such FDSS design capabilities have not been formally explored because there exists no systematic approach to identifying series complexity. This study describes the development and validation of a rule-based complexity scoring technique (CST) that generates a complexity score for time series using 12 rules that rely on 14 features of series. The rule-based schema was developed on 74 series and validated on 52 holdback series using well-accepted …

Conceptualisations Of The Consumer In Marketing Thought, Ann-Marie Kennedy, Gene R. Laczniak

Marketing Faculty Research and Publications

Purpose

This paper seeks to gain an understanding of how different consumer conceptualisations in marketing may lead to negative outcomes. Every profession has its grand vision. The guiding vision for most marketing professionals is customer orientation. Of course, reality is more complex and nuanced than a single unified vision. Organisations tout their consumer-centric marketing decisions, in that they use consumer research to make operational decisions about products, prices, distribution and the like. However, marketers’ treatment of consumers is often far from the customer’s best interests. It is proposed that by understanding the different conceptualisations of the consumer over time, we …

How Informative Is Floating Nav When Securities Trade Infrequently?, Kyle D. Allen, George D. Cashman, Drew B. Winters

Finance Faculty Research and Publications

We examine if a floating net asset value (NAV) increases the transparency of risk for investors. Using closed-income fixed income funds we find little evidence that a floating NAV helps investors better understand the value and risk of a fund when a fund's assets trade infrequently. This potentially informs the debate regarding the adoption of a floating NAV in the money market industry. Our results suggest that it is unlikely that the benefits of floating NAV will outweigh the costs.

Audit Quality Indicators: Perceptions Of Junior-Level Auditors, Veena L. Brown, Jodi L. Gissel, Daniel Neely

Accounting Faculty Research and Publications

Purpose

In an effort to develop an audit quality (AQ) framework specific to the US audit market, the Public Company Accounting Oversight Board (PCAOB) recently issued a concept release proposing 28 audit quality indicators (AQIs) along three dimensions: audit professionals, audit process and audit results. Using AQIs initially proposed by the PCAOB, as well as AQIs suggested by prior literature, the authors solicit perceptions from junior-level (senior and staff) auditors to investigate the current state of practice along many of the AQIs relating to audit professionals and audit process.

Design/methodology/approach

In the study, 78 junior-level auditors responded to the survey. …

Foxes In The Henhouse: An Exploratory Inquiry Into Financial Markets Fraud, Joseph Wall, Timothy J. Fogarty

Accounting Faculty Research and Publications

Conventional understandings of fraud are organized around the fraud triangle first developed in the 1950s by Cressey. This conceptual device remains central in our pedagogy and research on this especially timely topic. As long as fraud is imagined to be not much different than a stereotypical act by a single individual out of financial desperation and impulsiveness, the fraud triangle provides a reasonably powerful conceptual organization. However, when applied to abuses that occur in highly organized financial markets, its application takes on new meanings that push the boundaries of its usefulness. Using interviews with traders and other securities market participants, …

Poverty, Prosperity And The Challenges Of The Good Company, Michael John Naughton, Nicholas J. C. Santos

Marketing Faculty Research and Publications

The articles in this volume originate from papers delivered at the 9th International Conference on Catholic Social Thought and Management Education at De La Salle and Ateneo Universities in Manila, Philippines (February 26–28, 2015). The theme of the conference was “Poverty, Prosperity and the Purpose of Business” within the Catholic social tradition. In attendance were approximately 300 participants representing 22 countries from 80 Catholic colleges and universities. They came from disciplines in management, philosophy, finance, accounting, theology, marketing, economics, and others. There were also leaders from business, many of whom were from the Philippines, who brought their experiences to bear …

The Relationship Between Marketing Ethics And Corporate Social Responsibility: Serving Stakeholders And The Common Good, Gene R. Laczniak, Patrick E. Murphy

Marketing Faculty Research and Publications

No abstract provided.

Rivals’ Reactions To Mergers And Acquisitions, Klaus Uhlenbruck, Margaret Hughes-Morgan, Michael A. Hitt, Walter J. Ferrier, Rhett Brymer

Management Faculty Research and Publications

Mergers and acquisitions research has principally focused on attributes of the acquiring firm and post-acquisition outcomes. To extend our knowledge, we focus on external factors, in particular rival responses, and explore when and how rivals respond to their competitor’s acquisitions. Leveraging the awareness–motivation–capability framework, we predict and find evidence that a rival’s dependence on markets in common with the acquirer, resource similarity between rival and acquirer, and a rival’s organizational slack increase the volume and, in some cases, also the complexity of a rival’s competitive actions following an acquisition. Furthermore, the type of acquisition positively moderates some of these relationships. …

Considerations For Effective Requirements Analysis In Offshore Software Development Projects: Lessons From Multi-Method Research, Vanita Yadav, Dhruv Nath, Monica Adya, Varadharajan Sridhar

Management Faculty Research and Publications

Offshore software development using geographically distributed teams is an accepted practice in software development today. However, software development companies have largely only offshored the software development lifecycle’s coding and testing phases. However, lately, offshoring the requirements analysis (RA) phase has become increasingly viable for several reasons including the software industry’s maturation and improved communication technologies. However, successfully evaluating this highly interactive phase between geographically dispersed client and provider teams requires special considerations. In this paper, we present practical insights garnered from conducting experiments and surveys of IS professionals from the Indian software industry and from extensively examining the literature. Our …

“I Identify With Her,” “I Identify With Him”: Unpacking The Dynamics Of Personal Identification In Organizations, Blake E. Ashforth, Beth S. Schinoff, Kristie M. Rogers

Management Faculty Research and Publications

Despite recognizing the importance of personal identification in organizations, researchers have rarely explored its dynamics. We define personal identification as perceived oneness with another individual, where one defines oneself in terms of the other. While many scholars have found that personal identification is associated with helpful effects, others have found it harmful. To resolve this contradiction, we distinguish between three paths to personal identification—threat-focused, opportunity-focused, and closeness-focused paths—and articulate a model that includes each. We examine the contextual features, how individuals’ identities are constructed, and the likely outcomes that follow in the three paths. We conclude with a discussion of …

To Divest Or Not To Divest: A Meta-Analysis Of The Antecedents Of Corporate Divestitures, Monica Adya

Management Faculty Research and Publications

Corporate divestitures have been identified as important strategic actions with a positive impact on firm performance. Yet, what is still missing in the strategic management literature is an integrative framework that quantitatively synthesizes the relative impact of various antecedents to divestitures, and theoretically reconciles the multitude of theories underlying divestiture research. To fill this gap, the author conducts a meta-analysis (based on a sample of 35 studies) and develops four broad categories of determinants: corporate governance; firm strategy; performance; and industry environment. Evidence is found that divestitures are driven mainly by prior divestment experience, structural factors (firm size and firm …

How Do We Communicate Who We Are? Examining How Organizational Identity Is Conveyed To Members, Beth S. Schinoff, Kristie M. Rogers, Kevin G. Corley

Management Faculty Research and Publications

No abstract provided.

On The Nature Of “Good” Goods And The Ethical Role Of Marketing, Gene R. Laczniak, Nicholas J. C. Santos, Thomas A. Klein

Marketing Faculty Research and Publications

The purpose of this essay is to elaborate on an important section of a document titled, Vocation of the Business Leader, published by the Pontifical Council for Justice and Peace. Subtitled “A Reflection,” this document is an 87 paragraph, 13,000 word (in English) statement about the ideals of business leadership as inspired by Christian values and ethics. It was sponsored by Peter K.A. Cardinal Turkson and Bishop Mario Toso in consultation with assorted educators, theologians, economists, and philosophers. The document developed from reflections and discussions on Pope Benedict XVI’s social encyclical Caritas in Veritate, particularly a seminar organized …

Assessing Perceptions Of The Integrative Justice Model Propositions: A Critical Step Toward Operationalizing A Macro Model, Tina M. Facca-Miess, Nicholas J. C. Santos

Marketing Faculty Research and Publications

Propositions underlying the theoretical tenets of the Integrative Justice Model (IJM), a normative, ethical framework for engaging in impoverished markets, are investigated for reliability in application. Santos and Laczniak provide numerous decision principles to help the marketer to evaluate fairness in the marketplace exchange, yet which are most reflective of the core tenets and most useful in application? Managerial perceptions of the extent to which the propositions reflect the core tenets of the IJM are evaluated in this critical step toward operationalizing the model. Factor analysis is implemented with a relatively small sample, a challenge particularly common in research with …

The Integrative Justice Model: Fair, Ethical, And Innovative Marketing To The Poor, Gene R. Laczniak, Nicholas J. C. Santos

Marketing Faculty Research and Publications

No abstract provided.

Determinants Of Industrial Property Rents In The Chicago Metropolitan Area, David E. Clark, Anthony Pennington-Cross

Finance Faculty Research and Publications

Urban economists have long understood the theoretical importance of transportation infrastructure and accessibility on the location choice of households and firms. We utilize a readily available data set of transaction rents in the Chicago metropolitan area to investigate the determinants of industrial property rents. Among the factors considered are proximity to transportation infrastructure, characteristics of the property, the term structure of lease agreements, and local attributes of the neighborhood. Empirical results suggest property, lease, and local demographics play important roles in determining rents. Despite the fact that industrial property tends to locate very close to rail lines and interstate highways, …

Exploring Supply Chain Relationships And Information Exchange In Uk Grocery Supply Chains: Some Preliminary Findings, Mark Barratt

Management Faculty Research and Publications

No abstract provided.