Business Commons^™

Three Essays On Corporate Finance: A Multilevel Inspection Of Target Capital Structure & Convertible Debt Issuance And Market Valuations Of Innovative Ability, Ashleigh Eldemire-Poindexter

Theses and Dissertations

This dissertation presents empirical analysis of the capital structure, security issuance, value creation, and valuation concepts of corporate finance. Two analysis examine connections between firm capital structure and the use of convertible debt securities, which have mixed debt and equity attributes. The third analysis examines the valuation of implicit and explicit signals of firm quality.

Chapter 1, Convertible Debt & Target Leverage Adjustments, examines how does convertible debt affects advances toward target capital structure. Convertibles may improve leverage adjustments by providing capital that is less costly to issue and less expensive to service. However, convertibles can be risky liabilities with …

When Kids Are The Last To Know: Embodied Tensions In Surprising Children With Family Vacations, Jenna M. Drenten

School of Business: Faculty Publications and Other Works

Purpose

Surprise family vacations have become increasingly prevalent in today’s digitally mediated consumer culture. Drawing on a performance-based view of tourism, this paper aims to explore the performance practices and embodied experiences by which young consumers are the recipients of last-minute surprise vacations.

Design/methodology/approach

YouTube offers a space for examining surprise family vacations, as captured in real time by consumers. The visual elements and verbal discourses of 139 surprise family vacation reveal videos were analyzed using a hermeneutical approach.

Findings

Findings suggest that surprise family vacations are characterized by three performance practices in which embodied tensions arise between normative expectations …

The Future Of Work And Rewards: A Survey Of Reward Leaders, Dow Scott, Devin Jordan

School of Business: Faculty Publications and Other Works

No abstract provided.

Pay Transparency: What Do Employees Think, Dow Scott, Devin Jordan

School of Business: Faculty Publications and Other Works

No abstract provided.

Gendered Market Subjectivity: Autonomy, Privilege, And Emotional Subjectivity In Normalizing Post-Socialist Neoliberal Ideology, Katherine Sredl

School of Business: Faculty Publications and Other Works

Most prior studies of marketplace ideology foreground consumer agency as identity co-creation or opposition to ideology. In this research, I consider how the logics of the dwindling state and global neoliberalism discursively form consent in post-socialist Zagreb, Croatia. I use recollections and small group discussions to compare women’s class and generationally based experiences of the daily family meal and work, during Yugoslav exceptionalism and privatization. Changing social relations normalize the gendered subjectivity of neoliberalism in post-socialist Zagreb, characterized by autonomy, the privilege of the younger generation, and the emotional subjectivity of anxiety and loss. Linking consumer experiences to the changing …

Business Process Analytics And Big Data Systems: A Roadmap To Bridge The Gap, Sherif Sakr, Zakaria Maamar, Ahmed Awad, Boualem Benatallah, Wil M.P. Van Der Aalst

All Works

© 2013 IEEE. Business processes represent a cornerstone to the operation of any enterprise. They are the operational means for such organizations to fulfill their goals. Nowadays, enterprises are able to gather massive amounts of event data. These are generated as business processes are executed and stored in transaction logs, databases, e-mail correspondences, free form text on (enterprise) social media, and so on. Taping into these data, enterprises would like to weave data analytic techniques into their decision making capabilities. In recent years, the IT industry has witnessed significant advancements in the domain of Big Data analytics. Unfortunately, the business …

Good Management Or Good Finances? An Agent-Based Study On The Causes Of Bank Failure, Stathis Polyzos, Khadija Abdulrahman, Apostolos Christopoulos

All Works

© The author(s) 2019 The recent series of banking crises in the United States and in the Eurozone has resulted in numerous bank failures. In this paper, an agent-based model is employed to test for factors that determine bank viability in times of distress, focusing mainly on the endogenous risk of financial institutions. The authors test for the effects of both management and financial factors on the institutions’ ability to weather the storm during times when the banking system experiences distress. The agent-based simulation process is split into a setup period, when the simulation builds the structural characteristics of each …

Assessment Of The Evolving Low-Cost Business Model For The Future Importance Of U.S. Secondary Airports, Nurettin Dinler, William B. Rankin

International Journal of Aviation, Aeronautics, and Aerospace

Airline deregulation caused a profound reshape in the aviation industry. The liberalization of the aviation sector resulted in a favorable environment for the emergence of low-cost carriers (LCCs). Following deregulation, airlines saw many attempts at their business strategies to gain more passengers in the air transportation market. To capture additional market shares of passenger traffic, the business models of LCCs have evolved to mirror the more common business models employed by the traditional legacy airlines. The purpose of this paper was to examine what effect, if any, exists between LCCs’ market share of passenger enplanements at secondary airports and their …

Modernizing The Supply Chain Of Airbus By Integrating Rfid And Blockchain Processes, Michael D. Santonino Iii, Constantine M. Koursaris, Michael J. Williams

International Journal of Aviation, Aeronautics, and Aerospace

Radio Frequency Identification, or RFID, has been gaining momentum within the aviation industry for improving efficiencies in the supply chain. RFID technology is not new, with many manufacturers outside of aviation being more responsive as early adopters to the technology. Currently, many of the full-scale implementation organizations from late adopters, have strategically integrated RFID technology into the manufacturing supply chain to tag parts and for airports/airlines to track baggage and passengers throughout their airport journey. Literature remains rather sparse in the implementation and success factors within the aviation supply chain as a number of businesses have kept much of the …

Foundations In Wisconsin: A Directory (37th Ed. 2018), Mary C. Frenn, John Francis Brick, Clare Casey, Jeremy Cluth, Kathryn Hendrickson, Madeline Murphy, Sareene Proodian

Foundations in Wisconsin: A Directory

The 2018 edition of Foundations in Wisconsin is the 37th edition of the print directory and the 18th 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 websites, and annual reports.

The Impact Of E-Mentoring On Information Technology Professionals, John L. Cotton, Monica Adya

Management Faculty Research and Publications

Our research examines the impact of virtual mentoring, or E-mentoring. We surveyed 133 IT professionals as to their experiences as protégés. We asked them about their mentoring relationships, as well as job and career outcomes, and the extent to which they interacted with the mentor virtually. We predicted that E-mentoring would lead to less effective mentoring relationships, less mentoring satisfaction, and lower career outcomes, and that these effects would be moderated by age (millennial protégés versus older protégés). We found few effects, other than lower satisfaction with E-mentoring relationships. The results suggest that E-mentoring can be as effective as face-to-face …

An Analysis Of Perceptions Of Restaurant Authenticity At Food Tourism Destinations In The Southeastern U.S, Jamie A. Levitt

Theses and Dissertations

The purpose of this study was to develop a comprehensive scale, containing multiple restaurant attributes and authenticity conceptualizations, to measure restaurant authenticity; to test a model examining the mediators and outcomes of restaurant authenticity at independent, full service Southern-style restaurants at food tourism destinations in the Southeastern U.S.; and to determine if the influences of restaurant authenticity differ between food tourists, general tourists, and locals.

A four-step approach adapted from Netemeyer et al. (2003) was used to develop the restaurant authenticity scale (RAS). Ultimately, the RAS contained six authenticity conceptualizations, 20 items and three dimensions: restaurant heritage and environment, food …

Investor Reactions To Complex Financial Accounting Disclosures: Experimental Evidence From The Tax Disclosure Of Permanently Reinvested Earnings, Laura N. Feustel

Theses and Dissertations

This paper investigates how increasing the transparency of complex financial accounting disclosures affects investor judgments. The income tax disclosure of permanently reinvested earnings is the context of this investigation as the Financial Accounting Standards Board (FASB) is currently evaluating income tax disclosures and has specifically identified the disclosure of permanently reinvested earnings as an area to be reevaluated. Current standards allow corporations flexibility in their disclosures that can lead investors to be surprised by changes in a corporation’s assertions regarding the reinvestment of foreign earnings. My study suggests that increasing the transparency of complex disclosures through the explicit reporting of …

Antecedents To The Selection Of Ceos With Higher Levels Of Narcissism And How Ceos With Higher Levels Of Narcissism Affect The Ceo Succession Process, Ormonde R. Cragun

Theses and Dissertations

This dissertation investigates the antecedents to the selection of CEOs with higher levels of narcissism, as well as their impact on the CEO succession process. The first study predicts how and when boards select CEOs with higher levels of narcissism. I predict when firm performance is low, environmental dynamism is high, and when environmental munificence is high, the board is more likely to select a CEO with higher levels of narcissism. I further predict that environmental conditions (i.e., dynamism and munificence) have a moderating effect on the relationship between firm performance and the level of narcissism of the newly-selected CEO. …

The Risk Of Being Ranked: Investor Response To Marginal Inclusion On The 100 Best Corporate Citizens List, Ben William Lewis, W. Chad Carlos

Faculty Publications

Despite the proliferation of lists and rankings that recognize firms for superior performance, empirical studies have been limited in their ability to causally evaluate how inclusion for the marginal firm influences shareholder value. Using a regression discontinuity design, we address this limitation by examining how investors responded to firms that were just barely included or excluded from the 100 Best Corporate Citizens list. Contrary to prevailing theoretical expectations, our findings indicate that marginal firms that were included in the ranking experienced negative abnormal returns compared to marginal firms that were excluded. We discuss how these findings inspire future research on …

Private Equity Indices Based On Secondary Market Transactions, Brian Boyer, Taylor D. Nadauld, Keith Vorkink, Michael S. Weisbach

Faculty Publications

Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market prices between 2006 and 2017. These transaction-based indices exhibit significantly higher betas and volatilities, and lower alphas than NAV-based indices built from Preqin and obtained from Burgiss. There are a number …

The Capitalization Of Consumer Financing Into Durable Goods Prices, Bronson Argyle, Taylor Nadauld, Christopher Palmer, Ryan Pratt

Faculty Publications

Using loan-level data on millions of used-car transactions across hundreds of lenders, we study the consumer response to exogenous variation in credit terms. Borrowers offered shorter maturity decrease expenditures enough to o set 60-90% of the monthly payment increase. Most of this is driven by shifting toward lower quality cars, but affected borrowers are able to o set 20-30% of a monthly payment shock by negotiating lower prices for equivalent cars. Our results suggest that durable goods prices adjust to reflect credit terms even at the individual level, with one year of additional loan maturity increasing a given car’s price …

Get In Line: Chapter 11 Restructuring In Crowded Bankruptcy Courts, Benjamin Iverson

Faculty Publications

Bankruptcy costs depend not only on the laws that govern financial distress but also on the ability of the court to rehabilitate distressed firms. This paper tests whether Chapter 11 restructuring outcomes are affected by time constraints in busy bankruptcy courts. Using the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act as an exogenous shock to caseloads, I find that commercial banks report lower charge-offs on business lending when court caseloads decline, suggesting that the costs of financial distress are lower in less-congested courts. Further, court caseload affects how restructuring takes place. Less-busy bankruptcy judges liquidate fewer small …

Trade Creditors' Information Advantage, Victoria Ivashina, Benjamin Iverson

Faculty Publications

Using information on the sales of debt claims for 132 U.S. Chapter 11 bankruptcy cases, we show that large trade creditors’ decisions to sell receivables of a distressed company in bankruptcy are predictive of lower recovery rates, and that in such cases these creditors sell ahead of less informed suppliers and other creditors. This result is especially pronounced for more opaque distressed firms, when trade creditors’ information advantage is likely largest. This evidence shows that suppliers that extend significant amounts of trade credit hold private information about their trade partners. Trade creditors who are geographically closer or in similar industries …

Exoskeletons, Entrepreneurs, And Communities: A Process Model Of Opportunity Co-Construction, Stella K. Seyb, Dean A. Shepherd, Trenton Alma Williams

Faculty Publications

Exoskeletons represent a technological breakthrough that presents a diverse range of potential opportunities to overcome human physical limitations. Drawing on data from 16 exoskeleton prototypes, we develop a model of opportunity co-construction that involves mutual adjustment between the actions and beliefs of entrepreneurs and their communities of inquiry. Our study enhances our understanding of potential opportunities as dynamic entities that are (re)constructed as entrepreneurs and community members seek to resolve key tensions throughout the process. Specifically, we identify tensions relating to technological change, shifting power dynamics, and reduced visibility, and explain how actors seek to resolve those tensions through opportunity …

Public Ownership And The Local Economy, Jess Cornaggia, Matthew Gustafson, Jason Kotter, Kevin Pisciotta

Faculty Publications

We provide evidence that a firm’s transition from private to public ownership stunts local economic growth, especially in less populated and poorer areas. After accounting for endogeneity in the ownership decision, areas hosting companies that go public experience muted growth in employment, establishments, population, and wages, relative to areas where firms file to go public and remain private. Establishment-level analyses reveal that transitioning to public ownership causes firms to geographically diversify their establishments and employee base. These findings are consistent with public ownership reducing a firm’s reliance on local agglomeration economies, to the detriment of the local community.

Comparables Pricing, Justin Murfin, Ryan Pratt

Faculty Publications

Finance professionals commonly set prices based on the analysis of recently closed, comparable transactions. Using data on syndicated loans, we exploit the lag between loans’ closing dates and their inclusion in a widely used comparables database to identify the effect of past transactions on new transaction pricing. Comparables pricing is an important determinant of individual loan spreads, but a failure to account for overlap in information across loans leads to pricing mistakes. Comparables used repeatedly are overweighted as they develop redundant channels of influence on later transactions. Market conditions prevailing at the time a comparable was priced also unduly influence …

Credit Supply And The Rise In College Tuition: Evidence From The Expansion In Federal Student Aid Programs, David O. Lucca, Taylor Nadauld, Karen Shen

Faculty Publications

We study the link between the student credit expansion of the past 15 years and the contemporaneous rise in college tuition. To disentangle simultaneity issues, we analyze the effects of increases in federal student loan caps using detailed student-level financial data. We find a pass-through effect on tuition of changes in subsidized loan maximums of about 60 cents on the dollar and of about 20 cents on the dollar for unsubsidized federal loans. The effect is most pronounced for more expensive degrees and degrees offered by for-profit and 2-year institutions.

Improving Security Message Adherence Through Improved Comprehension: Neural And Behavioral Insights, Bonnie Brinton Anderson, Daniel Bjornn, Jeffrey Jenkins, C. Brock Kirwan, Anthony Vance

Faculty Publications

Security warnings are critical to help users make contextual security decisions. Unfortunately, users find these warnings hard to understand, and they routinely expose themselves to unintended risks as a result. Although it is straightforward to determine when users fail to understand a warning, it is more difficult to pinpoint why this happens. The goal of this research is to use eye tracking to step through the building blocks of comprehension—attention, semantics, syntax, and pragmatics—for SSL and other common security warnings. Through this process, we will identify ways to design security warnings to be more easily understood.

The Moderating Effect Of Benevolence On The Impact Of Organisational Culture On Employee Creativity, Samuel Ogbeibu, Abdelhak Senadjki, James Gaskin

Faculty Publications

Rooted in the Nigerian manufacturing industry experience, this study, investigates the effect of top management leaders' benevolence on the impact of organisational culture (OC) on employee creativity. Structural equation modelling (SEM) results indicated that top management leaders' benevolence, and adhocracy OC have positive and significant effects on employee creativity. Market and clan OC have significant negative effects on employee creativity, and hierarchy OC has no significant effect on employee creativity. Likewise, benevolence has no significant moderating effect on the impact of clan OC on employee creativity, and has a significant negative moderating effect on the impact of adhocracy OC on …

Manager Sentiment And Stock Returns, Fuwei Jiang, Joshua A. Lee, Xiumin Martin, Guofu Zhou

Faculty Publications

This paper constructs a manager sentiment index based on the aggregated textual tone of corporate financial disclosures. We find that manager sentiment is a strong negative pre- dictor of future aggregate stock market returns, with monthly in-sample and out-of-sample R 2 s of 9.75% and 8.38%, respectively, which is far greater than the predictive power of other previously studied macroeconomic variables. Its predictive power is economically compa- rable and is informationally complementary to existing measures of investor sentiment. Higher manager sentiment precedes lower aggregate earnings surprises and greater aggre- gate investment growth. Moreover, manager sentiment negatively predicts cross-sectional stock returns, …

Proprietary Costs And Sealing Documents In Patent Litigation, Richard Frankel, Joshua A. Lee, Zawadi Lemayian

Faculty Publications

We study whether the sealing of a defendant’s judicial records during a patent lawsuit filing correlates with the defendant’s level of competition and disclosure. Courts permit sealing of judicial records when competitive damage outweighs the public interest in access to documents and records. We find that defendants with sealed judicial records have higher research and development (R&D), lower industry sales concentration, and more references to competition in their annual reports than defendants without sealed judicial records. We observe faster mean reversion of return on net operating assets when courts seal defendant records. The results suggest that sealing relates to archival …

Pushing The Future Back: The Impact Of Policy Uncertainty On The Market Pricing Of Future Earnings, Michael S. Drake, Michael A. Mayberry, Jaron H. Wilde

Faculty Publications

We examine whether policy uncertainty triggered by presidential elections pushes the future back by reducing the extent to which current prices reflect information about future earnings. We estimate future earnings response coefficients (FERCs) for the years 1975– 2013, a period that covers ten presidential elections. We find that FERCs are significantly lower (by 11.8%) during presidential election years compared to other years. Additional analyses using pseudo election years, ex-ante polls, contract prices from the Iowa Electronic Political Market, and cross-sectional firm characteristics provide corroborating evidence that the lower FERCs during election years are related to policy uncertainty. We also investigate …

Gui-Based Vs. Text-Based Assignments In Cs1, Robert Ball, Linda Duhadway, Spencer Hilton, Brian Rague

Faculty Publications

Teaching CS1 can be daunting. The first courses in the CS curriculum help determine which students will ultimately matriculate into the program. There have been various studies on how to improve motivation and reduce attrition by using visual-based environments and assignments. We performed a year-long study in which we addressed two research questions: 1) How is student performance affected by drag-and-drop GUI assignments when compared to traditional text-based assignments? 2) If given the choice, would students select GUIbased or text-based assignments? For the first question, there was no statistical significance, indicating that student performance is not affected by this visual …

A Reference Framework For Conceptual Modeling, Lois M. L. Delcambre, Stephen W. Liddle, Oscar Pastor, Veda C. Storey

Faculty Publications

With decades of contributions and applications, conceptual modeling is very well-recognized in information systems engineering. However, the importance and relevance of conceptual modeling is less well understood in other disciplines. This paper, through an analysis of existing research and expert opinions, proposes a reference framework for conceptual modeling to help researchers and practitioners position their work in the field, facilitate discussion among researchers in the field, and help researchers and practitioners in other fields understand what the field of conceptual modeling has to offer as well as contribute to its continued, extended influence in multiple domains.