Business Commons^™

Earnings Virality*, Brett Campbell, Michael S. Drake, Jacob Thornock, Brady Twedt

Faculty Publications

We examine the determinants and market consequences associated with earnings announcements going viral on social media, a phenomenon we label “earnings virality.” Using a comprehensive panel of historical Twitter data, we find that the typical earnings announcement receives relatively little social media coverage, but others go viral on social media, quickly reaching the feeds of millions of people. We find that viral earnings announcements generally have Twitter content that is more extreme in tone and contains less unique content. Further, earnings virality is positively associated with revenue surprises, investor recognition, retail investor ownership, and retail investor trading around the announcement. …

Brokerage House Ipos And Analyst Forecast Quality, Mark Bradshaw, Michael S. Drake, Joseph Pacelli, Brady Twedt

Faculty Publications

We examine how brokerage firm IPOs influence the research quality of sell-side analysts employed by the brokerage. Our main results focus on earnings forecast bias and absolute forecast errors as proxies for research quality. Using a staggered difference-in-differences analysis, we document significant decreases in forecast bias and absolute forecast error during the two-year period centered on the analysts’ brokerage house IPO. In additional analyses, we explore several potential explanations for the short-term benefits of brokerage house IPOs. We find some evidence that IPOs delay the departure of more talented analysts and that the effects are more concentrated among analysts and …

Social Media Analysts And Sell‑Side Analyst Research, Michael S. Drake, James R. Moon Jr., Brady J. Twedt, James D. Warren

Faculty Publications

We examine how research posted by “social media analysts” (SMAs)—individuals posting equity research online via social media investment platforms—is related to research subsequently produced by professional sell-side equity analysts. Using data from Seeking Alpha, we find that the market reaction to sell-side analyst research is substantially reduced when the analyst research is preceded by the report of an SMA, and that this is particularly true of sell-side analysts’ earnings forecasts. We further find that this effect is more pronounced when SMA reports contain more decision-useful language, are produced by SMAs with greater expertise, and relate to firms with greater retail …

A Tale Of Two Index Funds: Full Replication Vs. Representative Sampling*, Travis Dyer, Nicholas Guest

Faculty Publications

We examine the two approaches used by equity index funds to track their benchmark index. The first, full replication, mimics the index with exactness. The second, representative sampling, holds a subset of the index. We find that samplers trade 3-4 times more, have 30-50% higher expenses and fees, and earn 50-70 basis points lower annual returns, which is substantial given index funds’ mandate to limit tracking error to a few basis points. Besides higher expenses and transaction costs, poor stock picking also seems to contribute to samplers’ return underperformance. Overall, our analyses suggest representative sampling is associated with underperformance.

A Review Of Sensory Imagery For Consumer Psychology, Ryan S. Elder, Aradhna Krishna

Faculty Publications

his review of mental imagery research has the core objective of fostering more research on the topic of sensory imagery. The review is organized around a conceptual framework highlighting (a) how mental imagery is formed, (b) the elicitation and elaboration of mental imagery, (c) the multi-modal nature of sensory imagery, and (d) the consumer behavior consequences of mental imagery. This conceptual framework provides many new lenses through which researchers can view prior findings, and thereby motivates innovative new research ideas. Future research directions are provided in each section of the review, with additional unexplored opportunities presented in a final section

A Simple Approach To Better Distinguish Real Earnings Manipulation From Strategy Changes, Theodore E. Christensen, Adrienna Huffman, Melissa F. Lewis-Western, Kristen Valentine

Faculty Publications

Researchers typically infer real earnings management when a firm’s operating and investing activities differ from industry norms. A significant problem with classifying deviations from industry averages as myopic earnings management is that companies can change their operating and investing decisions for strategic business reasons rather than to mislead stakeholders. Using principal components analysis, we systematically evaluate existing measures and develop a comprehensive real activities measure to better capture earnings manipulation. Our measure reflects (i) deviations from industry averages across multiple activities and (ii) other signals of manipulation. This approach is promising because, although there are many sources of abnormal activities, …

You Can't Get There From Here: The Influence Of An Audit Partner's Prior Non-Public Accounting Experience On Audit Outcomes*, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Aleksandra "Ally" B. Zimmerman

Faculty Publications

We examine the importance of audit partners' prior non-public accounting experience (hereafter, “industry experience”) to audit outcomes. We conducted 20 (nine) semi-structured interviews of audit partners with (without) industry experience. These interviews shed light on industry-experienced partners’ career path choices, perceptions of the challenges and benefits stemming from industry experience, and perceptions of how this experience influences their current audit work. Grounded in theory and the results of these interviews, we empirically examine using a unique hand-collected dataset whether audit partners with industry experience conduct higher quality and more efficient audits. Our evidence implies that industry experience is associated with …

Borrowing To Save? The Impact Of Automatic Enrollment On Debt, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian, William L. Skimmyhorn

Faculty Publications

Does automatic enrollment into a retirement plan increase financial distress due to increased borrowing outside the plan? We study a natural experiment created when the U.S. Army began automatically enrolling newly hired civilian employees into the Thrift Savings Plan. Four years after hire, automatic enrollmentincreases cumulative contributions to the plan by 4.1% of annual salary, but we find little evidence ofincreased financial distress. Automatic enrollment causes no significant change in credit scores, debt balances excluding auto debt and first mortgages, or adverse credit outcomes, with the possible exception of increasedfirst-mortgage balances in foreclosure.

Double Trouble? Irs’S Attention To Financial Accounting Restatements, Zackery D. Fox, Ryan Wilson

Faculty Publications

We examine whether the Internal Revenue Service (IRS) uses public information to obtain qualitative signals regarding the quality of firms’ financial information or management integrity. Using the procurement of public information as a proxy for IRS attention, we test whether public signals of poor information quality (restatements) lead to an increase in IRS attention. To begin, we document that the IRS is both more likely and quicker to acquire public filings announcing a restatement than any other filing of the firm. Furthermore, we examine instances in which the IRS is more likely to learn of a restatement and find an …

Sending Children To Camp: An Analysis Of Decision-Making By Family Income, Dan Richmond, Camilla Hodge, Jim Sibthorp

Faculty Publications

Objectives: This study sought to (a) identify the factors most salient to parents when sending their child to summer camp, (b) examine family members’ roles in the camp decision-making process, and (c) compare both by income and other family contextual factors in a sample of parents with a child who enrolled and participated in a summer camp experience.

Methods: Survey data were collected from a total of 354 families that included families from high, middle, and lower incomes. Surveys collected data on parental developmental goals for their child, factors related to camp–child and camp–family fit, and the level of involvement …

Free Public Lands Admission For Children And Spillovers In Family Recreation, Jocelyn S. Wikle, Camilla Hodge

Faculty Publications

This study evaluated the Every Kid in a Park program to understand recreation and the contextual interaction between family resources, race, and recreation costs in families with young children. Using a large, nationally representative data sample from the American Time Use Survey (N = 5,119), we analyzed changes over time in recreation patterns of different socioeconomic groups before and after the initiation of the Every Kid in a Park program of the United States National Park Service. We found that free admission corresponded with overall increased frequency of hiking with a child for individuals in affected households. Changes in hiking …

Parent–Child Leisure And Parent Affect: The Role Of Family Structure, Camilla Hodge, Jocelyn Wikle

Faculty Publications

This study evaluates differences in parent–child leisure and parent affect across single- and two-parent families. The Ecology of Family Experiences framework suggests contextual factors such as family structure and the novelty of the activity environment contribute to heterogeneity in how parents experience leisure, partly because constraints may differ across family structures. Using a large, nationally representative data sample of parents from the American Time Use Survey (N = 78,353), this study shows single-parents experience leisure deficits compared to other parents, and leisure deficits are greatest in home-based leisure. Additionally, using a subsample (N = 16,214), we found that at-home leisure …

Where Have All The Children Gone? A Review Of The Presence Of Children Under 6 Years In Leisure Publication Outlets, Rachel A. Mcgovern, Ericka J. Olschewski, Camilla Hodge

Faculty Publications

We conducted a focused search of nine pre-determined leisure journals to (1) determine the prevalence and scope of research on children younger than 6 years (i.e., young children) published in leisure- focused outlets, (2) describe study designs and research methods used to study this age group, (3) tabulate definitions of child leisure, and (4) provide an overview of the studies’ findings. Overall, findings indicate a marked absence of young children from leisure research. Only 28 articles in almost half a century of leisure journal publications met inclusion criteria. Eight studies focused on children as the subject or participant, five articles …

The Transformative Tourism Learning Model, Jill Bueddefeld, Mat D. Duerden

Faculty Publications

This conceptual paper addresses gaps in transformative learning and tourism literature. We argue for a more complete integration of Transformative Learning Theory within tourism literature, in order to better understand tourism learning as both a process and a product. The Transformative Tourism Learning Model is proposed as a framework for understanding how to intentionally plan and design tourism learning experiences with specific learning processes and outcomes in mind. This paper offers a synthesis of transformative literature within tourism contexts and the proposes the Transformative Tourism Learning Model to provide researchers and practitioners with a guiding framework in both the design …

Experience Design And The Origins And Aims Of Leisure Studies: Shifting The Focus From Context To Experience, Mat D. Duerden

Faculty Publications

This article, adapted from the 2019 Butler Lecture at the NRPA National Research session, provides an overview of the origins, development, and potential future trajectory of the field of leisure research. Economic and societal trends of the last few decades may signal the need for the field to intentionally transition its focus on leisure as a context to leisure as an experience. More specifically the field needs to actively consider how insights gained from 60 years of research on leisure experiences can be applied to contexts beyond leisure. To illustrate the possibility of such a shift, lessons learned from transitioning …

Leisure, Eudaimonic Behavior, Physical Activity And Well-Being Of Older Adults, Jungsu Ryu, Jinmoo Heo, Gary Ellis, Mark A. Widmer

Faculty Publications

This study explored how different types of daily experiences (leisure activity, eudaimonic behaviors) and select habits and dispositions (neuroticism, dispositional depression, physical activity level), are related to situational well-being (situational depression, immediate positive affect) among older adults from a community center. Six hundred thirty-eight situational experience sampling observations were provided by 19 participants ranging in age from 59 to 81 years (M¼68.68, SD¼7.17). Each participant was signaled on five randomly selected occasions each day for seven consecutive days. Upon receiving a signal, participants completed questionnaires measuring their activity participation and situational well-being at the time of the signal. Significant predictors …

Updated Perceptions Of Accounting Academics On The Review And Publication Process, F. Greg Burton, William G. Heninger, Scott L. Summers, David A. Wood

Faculty Publications

We update the Wood (2016) survey that gathered perceptions of academics regarding the review and publication process at the top academic journals to measure changes in perceptions over the last five years. We find that accounting academics generally perceive the overall process has not improved at top journals or has become worse since 2015. More specifically, we find that respondents think acceptance rates in top journals should nearly double. Respondents believe that reviewers and editors underweight practice relevance. They also believe reviewers overweight the criteria of incremental contribution, method, and rigor. Respondents believe that their institutions focus too much on …

Accounting Academics Perceptions Of 12 Research Journals, F. Greg Burton, William G. Heninger, Scott L. Summers, David A. Wood

Faculty Publications

This paper reports perceptions of over 1,000 accounting faculty regarding 12 accounting journals (including the traditional Top 3/6), specifically in: (1) how open they are to diverse topic areas, (2) how open they are to diverse research methodologies, (3) how effectively they produce new and useful knowledge for academics, and (4) how effectively they produce new and useful knowledge for non-academic stakeholders. We find that the traditional Top 3/6 journals do not lead the academy along these four dimensions; in fact, some are viewed as the worst performers in these areas. Furthermore, we find that academics have a relatively poor …

Relevance Of Accounting Research (Roar): Ratings Of Abstracts By Accounting Professionals, F. Greg Burton, Scott L. Summers, T. Jeffrey Wilks, David A. Wood

Faculty Publications

The relevance of academic accounting research to practice has been frequently discussed in the accounting academy, yet very little data has been put forth in these discussions. We create relevance of accounting research (ROAR) scores by asking accounting professionals to read and evaluate the titles and abstracts of every article published in 12 leading accounting journals for the years 2016 to 2018, inclusive. These scores allow for an evidence-based evaluation and discussion of how academic accounting research is perceived by accounting professionals. The scores also allow us to identify the articles, authors, journals, and accounting topic areas that are perceived …

Evidence On Internal Audit Quality From Transitioning To Remote Audits Because Of Covid-19, Marc Eulerich, Martin Wagener, David A. Wood

Faculty Publications

As in-person audits were banned by governments and by company policies due to the COVID-19 pandemic, internal auditors had to transition to remote audits to perform their work. Based on survey responses of internal auditors who have conducted both remote and in-person audits, we find that internal auditors perceive no difference in the efficiency and effectiveness of and stakeholders’ reliance on results from remote and in-person audits when considering all responses. However, we also find that perceived efficiency and effectiveness increase the more experience internal auditors have with remote audits. Supplemental analyses show that support from the auditee, but not …

The Status Of Robotic Process Automation, Steven A. Harrast, David A. Wood

Faculty Publications

Modern information technology (IT) has greatly expanded the capability of companies to coordinate activities and process large numbers of transactions. Unfortunately, large companies often support thousands of individual applications, and the data necessary for financial reporting is scattered across these applications. As applications and data proliferate, companies must link together the applications and systems, often using spreadsheets and expending significant amounts of time in manual data entry and manipulation. This manual work is slow, expensive, and error prone and lacks useful business insights. Also, the employees who must perform these tasks are often overwhelmed and unsatisfied with the mundane work. …

Leadership Adaptability Within The Higher Education Industry, Rebecca Niemeyer Rens

Doctoral Dissertations and Projects

Dynamism in the higher education industry (HEI) has created unprecedented complexity and uncertainty for leaders at colleges and universities across the globe. The challenges to competitive advantage and sustainability created by dynamic conditions have been exacerbated and accelerated by the COVID-19 pandemic and health crisis. HEI leaders are struggling to adapt antiquated and traditionally held methods and practices to navigate the rapid changes and survive the resulting chaos. The ability of leaders to adapt to dynamism in contemporary industry conditions is influenced by the external and internal environments; in term, these leaders’ capacity for change impacts the adaptability of the …

Effective Leadership In The Us Fire Service Requires Training Programs Geared Toward Ongoing Leader Development For All Personnel, Shelley Marie Wheeler

Doctoral Dissertations and Projects

The purpose of this qualitative phenomenological study was to explore the experiences of 50 personnel from four Metro Washington D.C. area fire departments, 23 firefighters and 27 officers, at varying experience levels and ranks to determine if there was leadership training throughout a firefighter’s career that enhanced their leader development, improving teamwork needed to achieve operational objectives. Based on the analysis of the data retrieved from the participants, the proposed research problem does exist within all four departments: leadership training may not be provided at varying levels of a firefighter's career within Metro Washington D.C. area fire departments which could …

Towards Cloud-Based Cost-Effective Serverless Information System, Isaac C. Angle

EWU Masters Thesis Collection

E-commerce information systems are becoming increasingly popular for businesses to adopt. In this work, we propose a serverless information system that will reduce costs for small businesses trying to create an e-commerce website. The proposed serverless system is built entirely in Amazon Web Services (AWS). The proposed serverless system allows businesses to pay for the use of cloud resources on a per-order granularity. This model reduces the cost of the information system when compared to a traditional cloud-based system. As e-commerce websites become more vital for small businesses, a cost effective serverless approach is promising.

Demystifying The Roles Of Organisational Smart Technology, Artificial Intelligence, Robotics And Algorithms Capability: A Srategy For Green Human Resource Management And Environmental Sustainability, Samuel Ogbeibu, Jude Emelifeonwu, Vijay Pereira, Raphael Oseghale, James Gaskin, Uthayasankar Sivarajah, Angappa Gunasekaran

Faculty Publications

With growing climate change concerns, and constant advancements in smart technology, artificial intelligence, robotics, and algorithms (STARA), organisations in emerging economies are becoming more compelled to go green, develop and deploy their STARA capability to boost profits more effectively, and their environmental sustainability (ES). Likewise, with governments increasingly calling for ES, organisations' human resource management (HRM) is further pressured to ensure their programmes aid realisation of environmental objectives without compromising profit maximisation. However, it remains unclear how complementary Green HRM (GHRM) programmes can be supported by organisational STARA capability (OSC) to bolster ES. Accordingly, we investigate how OSC and GHRM …

Young Firms, Old Capital, Song Ma, Justin Murfin, Ryan Pratt

Faculty Publications

Across a broad range of equipment types and industries, we document a pattern of local capital reallocation from older firms to younger firms. Start-ups purchase a disproportion- ate share of old physical capital previously owned by more mature firms. The evidence is consistent with financial constraints driving differential demand for vintage capital. The local supply of used capital influences start-up entry, job creation, investment choices, and growth, particularly when capital is immobile. Meanwhile, as suppliers of used capital, in- cumbents accelerate capital replacement in the presence of younger firms. The evidence suggests previously undocumented benefits to co-location between old and …

Behaviors That Impact The Economic Outcomes Of Mergers & Acquisitions; The Premium Price Paid And Return On Investment, Darryl Laws

Theses and Dissertations

This quantitative study explores the impact of overconfidence bias, lying for strategic advantage, and co-operation (or non-cooperation) among 29 highly experienced private equity fund and investment managers. Using four structured experiments, M&A professionals were assigned buyer and seller roles and allowed to choose among investment opportunities. Within a game theory framework, the buyers and sellers bargained over the purchase price. The results of these experiments were explored using a linear regression format. The skill level of the participants was measured using a financial literacy test prior to the experiments and two overconfidence measures were constructed. Lying for strategic advantage was …

How Technology Can Advance Port Operations And Address Supply Chain Disruptions, Kevin Dowgiewicz

Theses and Dissertations

Supply chain disruptions continue to be a significant challenge as the world economy recovers from the pandemic-related shutdowns that have strained global supply chains. Shocks challenge the adaptability and resilience of maritime ports. The reaction of automated container terminals to supply chain disruptions has renewed interest, given the dramatic scenes of ships anchored for weeks. In this dissertation, I provide a vision of how technology can enhance a port’s ability to anticipate and handle shocks by improving coordination, cooperation, and information exchange across port stakeholders. The vision will be helpful for academics and practitioners to perform research that advances theory …

Change Readiness And The Mediating Role Of General-Dispositional Internal Structures, Genevieve Joy Clark

Theses and Dissertations

This case study offers insight toward the impact of the general-dispositional, internal structures on a planned organizational change in the field of education. The process used and the findings of this may be applicable to a variety of fields. Stones’ strong structuration (2005) served as the theoretical framework guiding this study, though Chater and Loewenstein’s (2016) model of sensemaking offers supplementary consideration.

The context for study was the shift to virtual learning because of the COVID-19 global pandemic and subsequent closure of schools beginning in March 2020. This empirical study examined agents-in-situ’s response to the change, including the structuring interactions …

The X-Factor Of C-Suite Executives, Sheila T. Tan

Theses and Dissertations

Organizations rely on C-level executives to make strategic decisions that will impact stakeholders and business performance. These executives are judged based on employee satisfaction, market share, and bottom lines. Some of them perform well at one point but eventually make disastrous decisions. There is still a gap in knowledge on what elements make them decide how they do and what can be done before they are installed to the highest post. This paper investigated common mindsets and belief structures, which will be referred to in this paper as the X-factor, of C-level executives based on the Matrix model as a …