Business Commons^™

Convenience In The Mutual Fund Industry, George D. Cashman

Finance Faculty Research and Publications

Abstract

I examine the role of convenience in the mutual fund industry. I find that investors pay more for relatively convenient funds, and that the flows to convenient funds are less responsive to performance. These findings suggest that investors do not evaluate mutual funds independently, but rather that investors select a primary fund, likely based on beliefs about managerial ability, and then select funds which are relatively convenient to this primary fund.

Highlights

► I find that investors pay a significant premium to invest in convenient mutual funds. ► I find that the flows to convenient funds are indifferent to …

A Comprehensive Location-Allocation Method For Specialized Healthcare Services, Siddhartha S. Syam, Murray J. Côté

Management Faculty Research and Publications

This paper focuses on the development, solution, and application of a location-allocation model for specialized health care services such as the treatment and rehabilitation necessary for strokes or traumatic brain injuries. The model is based on our experience with the Department of Veterans Affairs’ integrated service networks. The model minimizes the total cost borne by the health system and its patients and incorporates admission acuity levels, service proportion requirements, and admission retention rates. A common resource constraint is introduced at the facility level since treatment of multiple acuity levels involves the pooling of common resources. Realistic instances of the model …

Going Overboard? On Busy Directors And Firm Value, George D. Cashman, Stuart L. Gillan, Chulhee Jun

Finance Faculty Research and Publications

Abstract

The literature disagrees on the link between so-called busy boards (where many independent directors hold multiple board seats) and firm performance. Some argue that busyness certifies a director’s ability and that such directors are value enhancing. Others argue that “over-boarded” directors are ineffective and detract from firm value. We find evidence that (1) the disparate results in prior work stem from differences in both sample composition and empirical design, (2) on balance the results suggest a negative association between board busyness and firm performance, and (3) the inclusion of firm fixed effects dramatically affects the conclusions drawn from, and …

Investors Do Respond To Poor Mutual Fund Performance: Evidence From Inflows And Outflows, George D. Cashman, Daniel N. Deli, Federico Nardari, Sriram V. Villupuram

Finance Faculty Research and Publications

Abstract

We examine the relation between mutual fund performance and gross flows for a large sample of actively managed U.S. mutual funds. Unlike previous studies that have only examined periods of generally increasing net flows, our sample includes periods of both increasing and decreasing net flows. We find that outflows are related to performance, with investors withdrawing money from poor performers. We also find that outflows and inflows respond asymmetrically to performance, outflows increase more aggressively following poor performance, and inflows increase more aggressively following good performance. Additionally, we find a symmetric performance net flow relation.

(Wp 2012-01) Territorial Tax System Reform And Corporate Financial Policies, Matteo Arena, George Kutner

Department of Finance Working Papers

We examine the effect of a permanent change to a country income repatriation tax system on a set of corporate financial policies. In 2009 Japan and UK switched from a worldwide system to a territorial system for the taxation of earnings repatriated by their multinational firms. Due to the relatively high corporate tax rate in Japan and UK, the new system effectively reduced the tax liabilities of most multinational firms when repatriating earnings. We find that after the change Japanese and UK firms accumulate less cash, pay out larger amounts to shareholders through dividends and share repurchases, and invest less …

Roles And Responsibilities Of Nonprofit Boards: The Peace Case, Patrick Kennelly

Professional Projects

This exploratory study identifies the levels of importance and fulfillment of board roles and responsibilities by nonprofit peacemaking organization board members and executive directors. It suggests a three-component framework for understanding board governance. By employing purposive non-probability sampling, this study used board governance instruments, developed by Inglis, Alexander, and Weaver’s (1999), to identify a three-component framework: strategic activities, resource planning, and evaluations for nonprofit organizations whose mission is peacemaking. It examines the relevance of the framework suggested by Inglis, Alexander, and Weaver’s (1999) for nonprofit peacemaking organizations. The results of this study can be used by nonprofit peacemaking organizations to …

The Dual Basis For Subordinate's Perception Of Change, Anthony Senger

Professional Projects

Psychological research has shown that perception often works in a dual-basis in which a person examines a subject and weighs the subject against an ideal and non-ideal scale, independently. There have been few studies though, that have tried to apply this mechanism as a component of the dynamics involved in Leadership Studies, Organizational Behavior, or Change Management. If the mechanism is active in subordinates, then leaders can make better-informed decisions regarding their organizations, based on an understanding that reaction to both their actions and to changes that they enact are based not only on perceived ideal characteristics, but also non-ideal …

Mortgage Product Substitution And State Anti-Predatory Lending Laws: Better Loans And Better Borrowers?, Raphael W. Bostic, Souphala Chomsisengphet, Kathleen C. Engel, Patricia A. Mccoy, Anthony Pennington-Cross, Susan M. Wachter

Finance Faculty Research and Publications

Mounting foreclosures and disclosures of abusive lending practices led many states to adopt new anti-predatory lending (APL) laws. Researchers have examined the impact of such laws on credit flows and the cost of credit. This research extends the literature by examining whether the market responded to these laws by substituting different mortgage products for those restricted by APL provisions. The evidence indicates that the laws were effective in restricting loans with targeted characteristics, and that the market substituted other product types to maintain access to credit and affordability in the face of these restrictions. The laws reduced the involvement of …

Exploring Firm Characteristics That Differentiate Leaders From Followers In Industry Merger Waves: A Competitive Dynamics Perspective, Jerayr (John) Haleblian, Gerry Mcnamara, Kalin Kolev, Bernadine J. Dykes

Management Faculty Research and Publications

Research in strategic management has shown that the timing of firm participation in a merger wave matters, as early movers have been shown to outperform later ones. However, while the consequences of the timing of action within a merger wave have been assessed, the causes that drive these timing effects remain unknown. We draw on the competitive dynamics perspective to investigate firm-level factors that influence the large-scale strategic behavior of leading or following within industry merger waves. We develop hypotheses based on the competitive dynamics argument that the awareness-motivation-capability of firms will influence the timing of competitive action. Consistent with …

Retail Analytics And Behavioral Operations: A Recipe For Superior Performance, Mark Barratt, Nicole Dehoratius

Management Faculty Research and Publications

No abstract provided.

Relationship Of Facebook Usage To Team Identification, Caitlin Moyer

Master's Theses (2009 -)

This study examines the relationship of Facebook usage with sports team identification using Wann's (2006c) "Team Identification-Social Psychological Health Model" to help identify individuals' needs, or motives, for connecting with the team via Facebook as well as with the team itself. To the extent that the team's Facebook presence is believed to fulfill certain needs for an individual, connecting with a team via Facebook was expected to result in higher levels of team identification with that team. Thus, by determining the uses and gratifications that individuals glean from connecting with the team via the social networking site, marketers may be …

Implications Of Being A Highly Rated Organization: Evidence From Four-Star Rated Nonprofits, Qianhua Ling, Daniel G. Neely

Accounting Faculty Research and Publications

This study examines a group of nonprofits rated four stars by Charity Navigator. The purpose is to determine whether this select group of charities exhibits characteristics associated with top charitable organizations, or whether the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. This study finds that organizations rated four stars by Charity Navigator show a lower level of excess cash holdings, report a lower level of compensation expenses and exhibit lower sensitivity of compensation to performance. Financially, these organizations are less vulnerable than their lower rated peers. The results …

Anthropology Of Family Business: Ten Desiderata. In Proceedings, United States Association For Small Business And Entrepreneurship, 27th Annual Conference, Alex Stewart

Management Faculty Research and Publications

For anthropology to realize its potential for contributing to family business, what would it be like? I would emphasize 10 desiderata. These are: (1) familiarity with relevant ethnographies; (2) knowledge about kinship studies; (3) focus on important questions; (4) alertness to sources of solidarity and of conflict; (5) knowledge about human variation and possibilities; (6) attention to wider contexts; (7) systematic comparison; (8) attention to lived experiences; (9) cross-disciplinarity; and (10) methodological soundness. For these 10 properties, I outline key elements, suggest readings, and argue for their importance by considering the consequences if they were not included.

Foreword: Why Become A Business Anthropologist?, Alex Stewart

Management Faculty Research and Publications

No abstract provided.

Ex Ante Severance Agreements And Timely Disclosures Of Bad News, Qianhua Ling

Accounting Faculty Research and Publications

This study explores the puzzle of CEO severance agreements by examining the association between the existence of ex ante severance agreements and the timeliness of bad news disclosures. Classifying severance agreements by type and the way boards grant them, this article documents a positive association between the timeliness of bad news disclosures and the existence of an ex ante single-trigger severance agreement, especially when it is granted alone. This association remains positive in the CEO’s last year of tenure where performance is poor. Further analyses show that this association is stronger among CEOs with a high-variable pay structure than among …

Qualitative Study Of The Relationship Between The Employee Engagement Of Certain Employees And The Emotional Intelligence Of Their Respective Leaders, Ann Kulow

Professional Projects

The purpose of this ethnographic qualitative study was to explore the relationships between an employee’s engagement and the emotional and social intelligence of the employee’s manager. The participants were certain employees of a Midwest manufacturer who were chosen by purposeful, criterion sampling. Direct reports of the chosen and consenting leaders were asked to complete a survey designed to measure the employee’s assessment of the social and emotional intelligence of their leaders. A total of 42 reports and 21 managers participated in this portion of the study. The emotional intelligence survey results were coded, reviewed and compared with the engagement survey …

Overcoming Obstacles: Women Entrepreneurs Taking The Lead In Nonprofit Businesses, Theresa Kedinger

Professional Projects

Few theoretical models clarify the ways in which a learning experience contributes to entrepreneurial behavior or directly pursuing entrepreneurism. The purpose of this research is to better recognize how women use values, motivations, and desires, through learning experiences, to start a nonprofit organization. Results reveal that, in order to increase the likelihood of females becoming entrepreneurs, they must put themselves in positions where they can have many different experiences. They must be willing to establish networks, overcome societal barriers as well as self-imposed barriers, and reflect upon the experiences they find themselves in, whether they are positive or negative. Such …

Marketing To The Base Of The Pyramid: A Corporate Responsibility Approach With Case Inspired Strategies, Nicholas Santos, Gene R. Laczniak

Marketing Faculty Research and Publications

The economic and political outcomes of market globalization continue to be complex. As international corporations engage developing markets, they increasingly find consumers who lack market sophistication, meaningful purchasing options and economic leverage. Such conditions are ripe for the exploitation of these market segments but also can be mitigated by enlightened managers willing to thoughtfully consider their ethical and professional obligations to vulnerable consumers. This paper builds on a normative ethical framework, labeled the integrative justice model (IJM) for impoverished markets that was introduced in the marketing and public policy literature. Specifically, the paper will extend the normative ethics of the …

Firm Location And Corporate Debt, Matteo Arena, Michael Dewally

Finance Faculty Research and Publications

This study examines the influence of a firm’s geographical location on corporate debt and provides evidence that the higher cost of collecting information on firms distant from urban areas has significant implications on a wide array of corporate debt characteristics. We find that rural firms face higher debt yield spreads and attract smaller and less prestigious bank syndicates than urban firms. Rural firms attempt to reduce their informational disadvantage by relying more on relationship banking. Our results on the effect of location on corporate debt are robust to the inclusion of an extensive set of firm and issue characteristics.

Why Can’T A Family Business Be More Like A Nonfamily Business? Modes Of Professionalization In Family Firms, Alex Stewart, Michael A. Hitt

Management Faculty Research and Publications

The authors survey arguments that family firms should behave more like nonfamily firms and “professionalize.” Despite the apparent advantages of this transition, many family firms fail to do so or do so only partially. The authors reflect on why this might be so, and the range of possible modes of professionalization. They derive six ideal types: (a) minimally professional family firms; (b) wealth dispensing, private family firms; (c) entrepreneurially operated family firms; (d) entrepreneurial family business groups; (e) pseudoprofessional, public family firms; and (f) hybrid professional family firms. The authors conclude with suggestions for further research that is attentive to …

The Foreign Corrupt Practices Act: An Examination Of Cases And Enforcement Actions, Michael Akers, Brittany Zeske

Accounting Faculty Research and Publications

No abstract provided.

Disclosure And Cross-Listing: Evidence From Asia-Pacific Firms, Li Li Eng, Qianhua Ling

Accounting Faculty Research and Publications

Purpose – The purpose of this paper is to examine whether both country disclosure environment and firm-level disclosures are associated with cross-listing in the USA or London or otherwise.

Design/methodology/approach – The authors test the association using a sample of Asia-Pacific firms covered in the Standard and Poor's, 2001/2002 disclosure survey, capturing the country-level disclosure using the Center for International Financial Analysis and Research (CIFAR) score. The firm-level disclosure is measured using the S&P disclosure score. The authors conduct a logistic regression analysis and a two-stage least squares analysis to examine whether the outcome, cross-listing or not, is associated with …

The Standard Auditor's Report: Preparer, User, And Student Reactions To The Pcaob Concept Release, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

Concerns about the usefulness of the Standard Audit Report (SAR) have been expressed by investors and other users of corporate financial statement for several decades. During 2011 the Public Company Accounting Oversight Board (PCAOB) reacted to those concerns by issuing Concept Release on Possible Revisions to the PCAOB Standards Related to PCAOB Standards (“Release”). This article provides a description of the SAR, a short history (timetable) of the pressures (surveys) to improve the SAR and events that have led to the eventual Release by the PCAOB. Feedback (comment letters and surveys) from professionals and professional organizations regarding the “Release” are …

Foundations In Wisconsin: A Directory [31st Ed. 2012], Mary C. Frenn, Anne M. Carpenter, Nathan Lunsford, Sarah Martin, Jakob K. Rinderknecht, Claire Seigworth, Joseph Torchedlo

Foundations in Wisconsin: A Directory

The 2012 release of Foundations in Wisconsin marks the 31st edition of the print directory and the twelfth year of the online version. The directory is designed as a research tool for grantseekers interested in locating information on private, corporate, and community foundations registered in Wisconsin. Each entry in this new edition has been updated or reviewed to provide the most current information available. Most of the data was drawn from IRS 990-PF tax returns filed by the foundations. Additional information was obtained from surveys, foundation Web sites, annual reports, and newsletters.

Fortunately, Wisconsin foundations are rebounding from the recent …

Stakeholder Theory And Marketing: Moving From A Firm-Centric To A Societal Perspective, Gene R. Laczniak, Patrick E. Murphy

Marketing Faculty Research and Publications

This essay is inspired by the ideas and research examined in the special section on “Stakeholder Marketing” of the Journal of Public Policy & Marketing in 2010. The authors argue that stakeholder marketing is slowly coalescing with the broader thinking that has occurred in the stakeholder management and ethics literature streams during the past quarter century. However, the predominant view of stakeholders that many marketers advocate is still primarily pragmatic and company centric. The position advanced herein is that stronger forms of stakeholder marketing that reflect more normative, macro/societal, and network-focused orientations are necessary. The authors briefly explain and justify …

Marketing And The Common Good: Implications Of Caritas In Veritate, Thomas A. Klein, Gene R. Laczniak, Patrick E. Murphy

Marketing Faculty Research and Publications

This paper extends the authors’ previous work on applying Catholic Social Teachings to issues in marketing to the specific question of the common good. Approaches to studying the social impact of marketing and the challenge of adequately defining the common good are discussed. Attention is next given to key vectors of Catholic Social Teaching and their application to ethical issues in marketing. The focus of the analysis is on specific sections in Caritas in Veritate, Pope Benedict XVI’s recent encyclical devoted to providing principles for dealing with the ongoing global economic crisis. A discussion of how these principles might be …

Does Information Technology Investment Influences Firm’S Market Value? The Case Of Non-Publicly Traded Healthcare Firms, Rajiv Kohli, Sarv Devaraj, Terence T. Ow

Management Faculty Research and Publications

Managers make informed information technology investment decisions when they are able to quantify how IT contributes to firm performance. While financial accounting measures inform IT’s influence on retrospective firm performance, senior managers expect evidence of how IT influences prospective measures such as the firm’s market value. We examine the efficacy of IT’s influence on firm value combined with measures of financial performance for non-publicly traded (NPT) hospitals that lack conventional market-based measures. We gathered actual sale transactions for NPT hospitals in the United States to derive the q ratio, a measure of market value. Our findings indicate that the influence …

Aging, Retirement And Human Resources Management: A Strategic Approach, Barbara L. Rau, Gary A. Adams

Management Faculty Research and Publications

This chapter introduces the organizational view of retirement by exploring the relationship between organizational strategy and human resource management decisions regarding retirement. The authors begin with an overview of organizational strategy and discuss two methods used to plan for an aging and retiring workforce. Several key human resource decisions related to retirement are then addressed. In the pre-retirement phase, the role of HR In helping employees to prepare for retirement Is discussed, focusing primarily on financial planning and other retirement-related benefits. Next, human resource decisions pertaining to managing a retirement-ready workforce are discussed, addressing specifically the issues of knowledge transfer …

Creating Value Through Mergers And Acquisitions: Challenges And Opportunities, Michael A. Hitt, David R. King, Hema Krishnan, Marianna Makri, Mario Schijven, Katsuhiko Shimizu, Hong Zhu

Management Faculty Research and Publications

No abstract provided.

Beyond The Numbers: Seven Stakeholders To Consider In Improving Acquisition Outcomes, David R. King, Richard Taylor

Management Faculty Research and Publications

No abstract provided.