Business Commons^™

Side Letter Governance, Elisabeth De Fontenay, Yaron Nili

Faculty Scholarship

A standard feature of the private equity industry, “side letters” are confidential agreements between the sponsor and individual investors that give the latter special rights, beyond those that apply to other investors in the private equity fund. Yet side letters have become a flashpoint for prominent critics of the industry, who argue that they allow private equity sponsors to benefit their favored investors at the expense of smaller, less sophisticated ones. Others have argued that, to the contrary, side letters are merely an efficient means of price discrimination—charging different prices to different investors, according to their willingness to pay—a practice …

Keeping The Journal In Focus, Christopher J. Smiley

The Journal of the Michigan Dental Association

This editorial delves into the motivations behind young dentists and dental students joining the Association and highlights a recent study's surprising findings. Rather than tangible benefits, such as insurance and discounts, social and emotional factors were the primary drivers for membership. The study revealed that members seek a sense of belonging, opportunities for networking, and support in building confidence in their skills. The editorial underscores the importance of community and connection within organized dentistry and emphasizes the role of the MDA Journal in fulfilling these needs.

Ada Executive Director Dr. Ray Cohlmia: "We're Focused On The Future, Not The Past", Debra Peters Dds

The Journal of the Michigan Dental Association

In this interview, Dr. Raymond Cohlmia, the Executive Director of the American Dental Association (ADA), reflects on his first year in office and discusses the challenges of overcoming the decline of membership marketshare. He addresses the importance of strategic forecasting, nimbleness, and the role of the ADA team in shaping the future of dentistry. Dr. Cohlmia also highlights the significance of science and research in dentistry and the ADA's commitment to global presence. The interview offers insights into the ADA's evolving strategies and its dedication to serving its members and the dental community.

Dentistry And The Law: How Does An ‘Assignment Of Benefits’ Work?, Dan Schulte Jd

The Journal of the Michigan Dental Association

The use of an assignment of benefits form in dental practice is explored in this article, with a focus on its potential benefits and limitations. This form allows patients to assign their dental plan benefits to the provider, enabling direct payment for services. However, its acceptance by dental plans varies and is often subject to state and federal regulations. While assignment of benefits offers a pathway to independent fee setting and potential billing for any balance exceeding benefits, legal and regulatory considerations must be addressed to fully implement this approach.

Ce Requirements For Michigan Dental Licensure, Andrea Sunderman

The Journal of the Michigan Dental Association

The distribution of mandated topics for the 60 hours of CE for dentists and 36 hours for RDHs and RDAs required for each three-year licensure period is presented in this graphic. The ADA, AGD, an accredited dental school, or the Michigan Board of Dentistry must approve courses. The Michigan Dental Association provides access to CE programs necessary for dentists and members of their teams to meet these requirements.

Staff Matters: I-9 Forms: What Every Employer Needs To Know, Jodi Schafer Sphr, Shrm-Scp

The Journal of the Michigan Dental Association

The I-9 form, mandated by the federal government, is essential for all employers, including dental practices. It verifies an employee's eligibility to work in the United States and is applicable to all employee types. Employees must provide documents like a Social Security card, passport, or driver's license for inspection within three days of hire. These forms should be retained for one-year post-employment or three years post-hire. Due to COVID-19, virtual document examination is temporarily allowed, extended until July 31, 2023. Non-compliance can result in costly fines, making regular internal audits advisable for practice adherence.

Incumbent Competition And Private Agenda, Anne Marie Go

DLSU Business & Economics Review

Consider two politicians who decide whether to follow what they believe the electorate wants or choose the option that secures their private gain. Policies are implemented when the politicians reach a unanimous decision. The electorate only rewards a politician when a policy is implemented or when the politician is the only one whose action coincides with the popular decision. The results show that if politicians have good decision-making abilities, sufficiently high payoffs in policy implementation—given moderate private agenda payoffs—push them to implement the popular policy. For very poor decision- making abilities, at sufficiently high policy rewards, politicians vote for the …

Income Recovery Of Thai Workers From The Covid-19 Pandemic, Athakrit Thepmongkol, Amornrat Apinunmahakul

DLSU Business & Economics Review

This paper examines how COVID-19 and the resultant lockdown affected Thai workers and how their income has recovered as of the end of 2020. We conducted three phases of telephone surveys to track the income dynamics of Thai workers during the months of May, August, and November 2020. The initial COVID-19 impact on Thai worker income was enormous and very broad. On average, Thai workers’ income fell by 47.03%, and 69.7% suffered such a loss. Over the six months survey period, most Thai workers had just begun to stabilize their income, but only a few were actually able to recover. …

Power Asymmetry In Ongoing Business Relationships, Mdarhri Alaoui Saâd, Amine Noureddine

DLSU Business & Economics Review

Firms enter into partnerships to improve their competitive position, create and appropriate superior value, and increase their effectiveness and efficiency. Although balanced relationships (in terms of power and equitable value sharing) between the two partners exist, many researchers argue that these ideal relationships are not the norm and that asymmetry of power and unequal distribution of benefits are a reality of current business-to-business relationships. This study examines how power asymmetry affects the relationship climate in general and partner attitudes and behaviors in particular. Specifically, this study focuses on the sources of power exercised and how these impact value creation appropriation, …

Cash Conversion Cycle And Investment Cash Flow Sensitivity, Ilker Yilmaz

DLSU Business & Economics Review

The purpose of this article is to investigate the effect of firms’ cash conversion cycle on their investments’ sensitivity to cash flows. Using the data of 167 energy companies from 2010 to 2019, we run dynamic panel regressions for the models based on the Euler equation. We employed a generalized method of moments (GMM) as the estimation technique. The analyses revealed two main results. The first is that there is investment cash flow sensitivity for the sample firms indicating the existence of financial constraints. The second is that the cash conversion cycle has a significant positive effect on investment cash …

Explicating The Influence Of Religion In Forming Corporate Governance: Insights From The Philippines, Leveric Tan Ng, John Paolo Rivera

DLSU Business & Economics Review

Religion plays a role in shaping personal values and directing an organization’s moral filter. It is an avenue to impose social morality that may impact corporate governance. We examined the influence of religion in the formation and development of good corporate governance through ethical leadership in the Philippines – a country that has strong religious culture. In validating scholarly literature on religion and enterprise, we looked into the conception and interpretation of religion and corporate governance through a key informant interview of 30 executive directors from private corporations in the country. We found that corporate governance may arise from religious …

Antecedents Of Investment Decision-Making In Mutual Fund: An Indian Perspective, Som Nath Paul, Rajesh Kumar Upadhyay, -- Ashimagarg

DLSU Business & Economics Review

The growth rate of investments in mutual funds is certainly the most significant phenomenon of present financial markets. Over the years, mutual funds have been a branch whose assets have now become the largest among other financial intermediaries. In this industry, which has focused its attention on marketing, its products have been cut to a wider population. The aim of the present research is to explore the relationship between risk perception and investment decisions in mutual funds. This study is also an attempt to explore the role of expected return in the investment decision of investors in the mutual fund …

The Role Of Public Investment In Pandemic Recovery, Aris Zoleta

DLSU Business & Economics Review

The goal of this study is to review the risk associated with increases in sovereign deficits and the role of public investment in pandemic recovery. The estimates of DSGE models show that fiscal authority provides more emphasis on debt to GDP than output and deficits. In addition, the stochastic simulation shows that increases in public investment do not limit the increases in private investment. And both public and private investment exhibit procyclical behaviors in the presence of government spending shock. Lastly, the output is more persistent during episodes of technology shocks than during an increase in government spending. The paper …

Emotional Intelligence And Conflict Management In Family Firms: Using Systematic Literature Review And Bibliometric Analysis, Kris G. Lobo

DLSU Business & Economics Review

Through systematic literature review and bibliometric analysis, the author assesses the current state of research on the relationship between emotional intelligence (EI) and conflict management (CM) in the family business and recommends avenues for future research. The aim of the study is to map and discover clusters taken from existing literature. In terms of methods, Tranfield et al. (2003) recommended guidelines for conducting a systematic literature review was adopted (i.e., planning, conducting the review, reporting, and dissemination) to capture nuances regarding the conceptual link between EI and CM. With limited publications that highlighted the link between emotional intelligence and conflict …

Inequality, Oligarchy, And Dynasty, Ronald U. Mendoza

DLSU Business & Economics Review

Although some scholars frame inequality as a necessary step towards economic growth, this paper highlights its double- edged nature by examining oligarchy and dynasty as elements of inequality in the Philippine context. The best way to

ascertain whether inequality can be advantageous for development is to examine how it shapes the context that it works in. The presence of political dynasties is then evaluated based on their impact on patterns of leadership in the country, whereas business oligarchs are assessed by their influence over the structure of the economy. The paper concludes with a three-point agenda to address the root …

Development Of Sensing And Programming Activities For Engineering Technology Pathways Using A Virtual Arduino Simulation Platform, Murat Kuzlu, Vukica Jovanovic, Otilia Popescu, Salih Sarp

Engineering Technology Faculty Publications

The Arduino platform has long been an efficient tool in teaching electrical engineering technology, electrical engineering, and computer science concepts in schools and universities and introducing new learners to programming and microcontrollers. Numerous Arduino projects are widely available through the open-source community, and they can help students to have hands-on experience in building circuits and programming electronics with a wide variety of topics that can make learning electrical prototyping fun. The educational fields of electrical engineering and electrical engineering technology need continuous updating to keep up with the continuous evolution of the computer system. Although the traditional Arduino platform has …

Measurement Error, Fixed Effects, And False Positives In Accounting Research, Jared Jennings, Jung Min Kim, Joshua A. Lee, Daniel Taylor

Faculty Publications

We show theoretically and empirically that measurement error can bias in favor of falsely rejecting a true null hypothesis (i.e., a “false positive”) and that regression models with high-dimensional fixed effects can exacerbate measurement error bias and increase the likelihood of false positives. We replicate inferences from prior work in a setting where we can directly observe the amount of measurement error and show that the combination of measurement error and fixed effects materially inflates coefficients and distorts inferences. We provide researchers with a simple diagnostic tool to assess the possibility that the combination of measurement error and fixed effects …

Information, Communication, And Technology In Developing Countries: The Impediment To Nigeria Economic Growth, Fatima Ali Muhammed

Dissertations and Theses

Technological revolution has shifted the world to a post-industrial society as information communication and technology (ICT) govern the centrality of human interaction. ICT has become widely influential at all levels of life, especially socially and economically.

In the 21st century, innovative technologies have become a crucial element of accelerating all factors of production to deliver rapid and effective results in every sector of the economy. The Internet, as a component of ICT, has become the global computing network that facilitates the access, analysis and dissemination of infinite information rapidly using advanced technology.

Policy makers, researchers, business leaders, academics are all …

Listed Private Equity Returns: The Forecasting Power Of Premiums And Discounts, Daniel Krasemann

CMC Senior Theses

In this paper, I assess the ability of premiums and discounts to predict future listed private equity returns. I hypothesize that the premiums and discounts of the net asset value of the listed private equity funds with monthly lags hold forecasting power. I use four distinct listed private equity indices and their respective NAV P/D values for my research. To ensure my analysis is realistic in scope, I incorporate a variety of macroeconomic variables that have been proven to influence listed private equity returns. I structure my time-period analysis around the 2008-09 financial crisis. I generally find that a two-month …

Playing To Win: The Effects Of Implementing Gamification Strategies In Product Marketing, Sabrina Stone

CMC Senior Theses

Let’s play a game. What effect do you think video games have on twenty-first-century marketing? In this age defined by its nature of digitality, capturing the attention of consumers is an arduous competition. Through market segmentation, research, and the observable variables of consumer behavior, product marketing has turned to video games as a solution to appeal to younger demographics. Gamification is an increasingly applied product marketing strategy employed to increase favorable metrics. Of those key performance indicators (KPIs), boosted measures such as click-through rates, impressions, and engagement rates suggest that gamification is a strategic opportunity to persuade consumers to take …

Doing Well While Doing Good? The Cost Of Responsible Investing, Elizabeth Iwicki

CMC Senior Theses

In this paper, I estimate the monthly alpha of highly rated ESG stocks, with the motivation to assess the effects of ESG investors on public equity markets. I hypothesize, consistent with the motivating theory of Heinkel et al. (2001), that the shift in investor preferences toward ESG-friendly investments leads to the underperformance of a broad ESG portfolio relative to a portfolio of comparable stocks. I test my hypothesis using the methodology of Hong and Kacperczyk (2009) and Wallace (2022), where I apply the methods to an ESG portfolio rather than a “sin” portfolio. Consistent with my hypothesis, I find that …

Do Divestment Announcements Affect Fossil Fuel Company Stock Returns?, Wesley Dale

CMC Senior Theses

In response to growing dissatisfaction from environmental activists, many large institutional investors have committed to divesting from fossil fuel related assets. Understanding the financial effects of these divestment movements is crucial to assessing their impact on climate change. Using a financial event study methodology with a sample of 50 divestment announcements from 2014 to 2022, this paper examines the effect that the announcement of these divestment decisions has on the stock returns of oil & gas and coal companies. I find the short term effect on stock prices following a divestment announcement to be insignificant, and I show that more …

Institutional Capital Effect’S On Single-Family Housing Markets, Henry Harvego

CMC Senior Theses

This paper examines the impact of institutional investors on single-family housing markets, analyzing six dependent variables and two independent variables across 39 metropolitan cities. Despite receiving significant media attention during the COVID-19 pandemic, the study finds that the impact of institutional investors on median sale price is small and negative. However, institutional investors significantly impact other aspects of the housing market, including homes sold, new listings, inventory, days on market, and average-sale-to-list ratios. The results suggest that institutional investors are creating a more productive market, with transactions happening more quickly and more often. In light of these findings, policy discussions …

The Effect Of Changes In Us Money Supply On S&P 500 Returns During The Global Financial Crisis And Covid-19 Recession, Connor Cryan

CMC Senior Theses

The goal of this paper is to perform a comparative analysis between the United States Federal Reserve’s response to the 2008 Global Financial Crisis and the COVID-19 recession, and determine how each response affected the United States stock market. I have found that during the 2008 Global Financial Crisis, money supply increases did not have a substantial impact on the US stock market, while factors such as market volatility and unemployment rate had highly significant negative effects on stock returns. During the COVID-19 recession, money supply changes did have an impact on stock returns, and had a positive relationship with …

Does Firm Payout Behavior Serve As A Signal For Future Profitability?, Michael Colangelo

CMC Senior Theses

In this paper I explore the potential signaling capability that payout behavior, in the forms of dividends and share repurchases, has on the profitability of a firm. To do so, I analyze the relationship that dividends paid, share repurchases, and total payout have with asset turnover, return on assets, and EBITDA margin across different time structures. Next, I aim to understand if there is a significant differential impact of negative payout growth compared to positive payout growth, on the growth of the same performance measures above. I found that an increase in share repurchases and total payout both lead to …

Geographic Dynamics Of Multifamily Capitalization Rates: A Comprehensive Study Of Variation And Determinants, Zachary Torrey

CMC Senior Theses

Capitalization Rates are a dynamic measurement utilized in real estate to assess investment opportunities. The cap rate is the best apples-to-apples comparison metric available to investors to compare and prioritize investments. As such, there is a large emphasis in the real estate field on understanding the best predictive indicators of cap rate variation across geographies. In this analysis, I focus on multifamily cap rates and examine what are the best predictive indicators that explain the level of the cap rate across geographies over time. In doing so, I identify three novel variables that influence the cap rate as well as …

The Effect Of Patent Disclosure Quality On Innovation*, Travis Dyer, Stephen Glaeser, Mark H. Lang, Caroline Sprecher

Faculty Publications

The patent system grants inventors temporary monopoly rights in exchange for a public disclosure detailing their innovation. These disclosures are meant to allow others to recreate and build on the patented innovation. We examine how the quality of these disclosures affects follow-on innovation. We use the plausibly exogenous assignment to patent applications of examiners who differ in their enforcement of disclosure requirements as a source of variation in disclosure quality. We find that some examiners are significantly more lenient with respect to patent disclosure quality requirements, and that patents granted by these examiners include significantly lower-quality disclosures and generate significantly …

Data Visualization In 10-K Filings, Theodore E. Christensen, Karson E. Fronk, Joshua A. Lee, Karen K. Nelson

Faculty Publications

The Securities and Exchange Commission encourages the presentation of information or data in graphical form to improve users’ ability to understand financial disclosures. We find a dramatic increase in the disclosure of both qualitative and quantitative infographics in 10-K filings over time and substantial cross-sectional variation in firms’ choices regarding image types, data content, and the placement of infographics within 10-Ks. We provide evidence on factors associated with firms’ use of infographics and explore the persistence with which they are disclosed over time. Finally, we investigate the relation between the use of infographics and uncertainty in capital markets.

Managers’ Use Of Humor On Public Earnings Conference Calls, Andrew C. Call, Rachel W> Flam, Joshua A. Lee, Nathan Y. Sharp

Faculty Publications

Despite the prevalence and importance of humor in interpersonal communication, the disclosure literature is silent on the use of humor in the context of corporate communication. Using a sophisticated machine learning algorithm, we identify managers’ successful uses of humor during public earnings conference calls. When managers use humor on an earnings call, stock market returns and analyst forecast revisions following the call are more positive, primarily because of a muted response to negative earnings news. Consistent with managers’ successful use of humor being a favorable signal of future firm performance, we find no evidence of a return reversal over the …

Does Gender And Ethnic Diversity Among Audit Partners Influence Office-Level Audit Personnel Retention And Audit Quality?, Eric R. Condie, Ling Lei Lisic, Timothy Seidel, J. Mike Truelson, Aleksandra "Ally" B. Zimmerman

Faculty Publications

Motivated by prior literature on organizational identification and 23 semistructured interviews with a variety of U.S. audit partners and directors, we examine whether the gender and ethnic diversity of an office’s audit partners influences the retention of the office’s audit professionals and the quality of the audits conducted by the office. Using hand-collected data on U.S. audit partners, we find that greater levels of (or changes in) diversity in office audit partners’ gender and ethnicity are associated with lower (reduced) turnover among office audit professionals and higher (increased) office-level audit quality. To provide further insight into the audit quality results, …