Business Commons^™

Being Dr. Jekyll And Mr. Hyde: Role-Based Identity Foils In Organizational Life, Blake E. Ashforth, Beth S. Schinoff, Kristie M. Rogers, Donald Lange

Management Faculty Research and Publications

Soldier-medic. Undercover police officer. Collaborative divorce attorney. Certain jobs require an individual to enact antithetical sets of role expectations (to do X and not-X), such as saving a life and taking a life, in the case of a soldier-medic. Despite their important consequences, we lack a unifying framework for such antithetical expectations and their implied identity foils—where one is expected to be both Dr. Jekyll and Mr. Hyde (a life-saver and a life-taker). To this end, we build theory on how and why antithetical expectations and their implied identity foils arise in organizations. We offer a model …

The Impact Of The Covid-19 Pandemic On The Insurance Segment Of The Warsaw Stock Exchange, Tadeusz Winkler-Drews

Studia i Materiały Wydział Zarządzania Uniwersytet Warszawski

Purpose: The article aims to assess the impact of the COVID-19 pandemic on the insurance sector of the Warsaw Stock Exchange S.A. in 2019–2021.

Design/Methodology/Approach: Quarterly financial reports were used to conduct the study. The economic condition was examined using elements of financial analysis, and the valuation was based on the analysis of market rates of return.

Findings: The results allowed us to conclude that the COVID-19 pandemic harmed the insurance sector of WSE. Due to the differences in the parameters of the size of capitalization, the scope of services provided, the territory of operation and the …

Understanding The Importance Of Brand Equity On Higher Education: An Empirical Study Of Irish Public Universities, Javier Casanoves-Boix, Ana Cruz-Garcia, Sonia García-Lafuente, Mónica Pérez-Sánchez

Dept. of Marketing & International Business Publications

The today’s university education exposes that the argument that stu- dents have an authentic and valuable voice in the decisions that impact their learning and education has become a phenomenon known as 'stu-dent voice' (Matthews and Dollinger, 2023). Furthermore, Boy-murodova y Qosimova (2024) call to action for stakeholders in higher education to prioritize and invest in quality assurance initiatives as in-dispensable components of institutional effectiveness and academic ex-cellence. According to Lafuente, Cifuentes, and Faura (2024), higher education curricula must incorporate competencies that prepare gradu-ates with the necessary knowledge and values.

In Ireland, there are nine universities that account for a …

Economic Policy Uncertainty And Heterogeneous Institutional Investor Horizons, Xiaoqiong Wang, Siqi Wei, Xiaoyang Zhu

Research, Publications & Creative Work

Existing literature has extensively discussed the impact of economic policy uncertainty (EPU) on firm-related activities, but there is sparse evidence of its impact on the behavior of institutional investors. Using quarterly U.S firm-level data for 1980Q1-2020Q4, we find heterogeneous responses of institutional investors to EPU shocks to different horizons. Specifically, long-term institutional investors respond positively to EPU shocks, while short-term institutional investors reduce their holdings during periods of uncertainty. We posit that different expectations about the future of firms between long- and short-term investors may account for the heterogeneous responses. We test this hypothesis by investigating how firm growth opportunities, …

Revisiting The Effect Of Bank Deregulation On Income Inequality, William B. Hankins, Anna-Leigh Stone, Gary Hoover

Research, Publications & Creative Work

We use recently developed difference-in-differences methodologies and a panel of U.S. states over the period 1960 – 2015 to examine how bank branching deregulation impacted state-level income inequality. Existing research relying on traditional two-way fixed effects (TWFE) estimates and event studies provide mixed results. However, these results potentially suffer from biases due to treatment effect heterogeneity and the failure to account for multiple related treatments. Using bias-corrected difference-in-differences procedures and properly accounting for the timing of treatment, we find evidence that the combined effect of intrastate and interstate banking deregulation increased the income share of the top 10%, 5%, and …

A Profitability Analysis Of Products And Services In The Biotechnology Industry, Olivia Halverson

Senior Honors Theses and Projects

This paper will discuss the various ways to address profitability within firms and compare the profitability of three firms within the same industry. It will also touch upon rebranding within firms, the differences between brand and reputation, and how companies decide to use these leverages. Within, the paper dives into one successful account of a rebranding and its positive or negative effects in the long run. This will mainly be reflected in the literary review. In the profitability review, I will review three comparable companies within the biotechnology industry, including two public companies and one owned by a private equity …

Unattended In-Home Delivery Under Varying Scenarios Of Technology-Enabled Anonymity, James C. Brau, Hugo A. Decampos

Faculty Publications

Whereas many companies have explored attended in-home delivery as one solution to challenges associated with last mile delivery, few have explored unattended in-home delivery. This paper examines consumer willingness to allow unattended in-home delivery under various scenarios of anonymity. Specifically, we study how blockchain-enabled anonymity of sellers, delivery companies, and consumers can influence consumer willingness to allow unattended in-home delivery of a nutritional product in this last mile service triad. Hypotheses build on agency theory and the potential for information asymmetry and opportunism. The analyses are based on data from 784 responses to an online survey of end-consumers who were …

An Integrated Model For Information Adoption & Trust In Mobile Social Commerce, Fulya Acikgoz, Abdelsalam Busalim, James Gaskin, Shahla Asadi

Faculty Publications

Despite the growing importance of mobile social commerce (ms-commerce), little research has been conducted on the effects of informational and social factors on users’ post-adoption behavior. We, therefore, build on the understanding of mobile social commerce in the UK market and how it affects users’ post-adoption behaviors. Our theoretical model leverages the information adoption model, social support theory, and social influence theory. Data was gathered from 377 ms-commerce users from the UK and analyzed via Partial Least Squares (PLS-SEM). The research findings show that both informational and social factors have a positive impact on information adoption in ms-commerce apps. Furthermore, …

The General Anti-Avoidance Rule, Mary Cowx, Jon Kerr

Faculty Publications

The general anti-avoidance rule, or GAAR, is an enforcement mechanism that gives a country’s taxing authority broad power to deny a taxpayer tax benefits associated with any transaction. Although GAARs are becoming increasingly common, the presence of a GAAR is generally overlooked by researchers and thus has been left unstudied. In this paper, we provide an initial investigation by studying the effect of GAARs on firm-level corporate tax avoidance behaviors. Using an indicator for the enactment or strengthening of a GAAR within a country in a stacked difference-in-differences design, we find GAAR enactment is associated with a statistically and economically …

Estimating The Likelihood Of Future Tax Settlements, Jared Jennings, Joshua A. Lee, Erin Towery

Faculty Publications

Corporate income tax settlements represent a substantial cash outflow for many U.S. firms. This study develops an ex-ante measure of future corporate income tax settlement likelihood using quantitative and qualitative information from Form 10-K. We find that both quantitative and qualitative information are incrementally useful in predicting future tax settlements. We then use our new measure to examine the association between predicted future tax settlements and cash holdings. In contrast with prior research documenting a positive association between reserves for uncertain tax positions and cash holdings, we find that firms with a higher likelihood of future tax settlements hold less …

Do Audit Partners Exhibit Hometown Bias?, Yuzhou Chen, Timothy Seidel, Aleksandra "Ally" B. Zimmerman

Faculty Publications

We investigate whether audit partners exhibit greater leniency towards audit clients located in their childhood or pre-professional home state. While prior research has examined the audit quality effects of geographic distance between an auditor and client as well as auditors’ social ties to company management or directors, this study uniquely examines auditors’ psychological affinity to places rather than people. Using hand-collected data on audit partners, company managers, and directors, we find evidence of partners exhibiting hometown bias in the form of greater leniency towards clients’ opportunistic reporting. However, we find no evidence to suggest that these psychological biases affect audit …

Anomaly Time, Boone Bowles, Adam V. Reed, Matthew C. Ringgenberg, Jacob Thornock

Faculty Publications

We examine the timing of returns around the publication of anomaly trading signals. Using a database that captures when information is first publicly released, we show that anomaly returns are concentrated in the first month after information release dates, and these returns decay soon thereafter. We also show that the academic convention of forming portfolios in June underestimates predictability because it uses stale information, which makes some anomalies appear insignificant. In contrast, we show many anomalies do predict returns if portfolios are formed immediately after information releases. Finally, we develop guidance on forming portfolios without using stale information.

A Labeled Magnitude Scale For Measuring The Anticipated Impact Of Immediate Experiences, Gary D. Ellis, Patti A. Freeman, Brian J. Hill, Jingxian Jiang, Kaylee Janes

Faculty Publications

Lundberg et al. (2022) recently developed a rubric for classifying experience impacts as ordinary, meaningful, memorable, or transformative. This article extends that contribution by developing a measure of anticipated impacts suitable for evaluating the anticipated impacts of immediate, structured experiences, such as heritage interpretation experiences, museum visits, and events. We developed a labeled magnitude scale (LMS) by calibrating six adverbial modifiers of impact intensity (negligible, slight, significant, profound, substantial, transformative) to judges’ ratings of ratio-scaled distances. We examined criterion-related evidence of validity using 2,867 experience observations from 594 university students who visited venues selected to advance their emotional connection to …

Regulating Gender Diversity: Evidence From California Senate Bill 826, Abigail Allen, Aida Wahid

Faculty Publications

Do gender diversity quotas enhance firm value? This broad question has sparked significant debate because while diversity is generally thought to improve board functioning, prior research in international settings suggests mandating diversity may have adverse consequences if it moves firms away from market equilibrium. Exploiting the political events leading up to the passage of California Senate Bill 826 as an exogenous shock to assess the market implications of board gender composition, we document either significantly positive or insignificant 2-day abnormal returns for California firms across a variety of model specifications. Importantly, this finding contradicts the strong claims of contemporary studies …

The Impact Of Chief Audit Executive Turnover In Taiwan, Kenneth L. Bills, Hua-Wei Huang, Yi-Hung Lin, David A. Wood

Faculty Publications

This study adds to the emerging body of research showing the importance of internal audit to improve corporate governance and firm performance. Specifically, we test how the market reacts to the announcement of a turnover to the head of internal audit (i.e., the chief audit executive (CAE)). We find negative cumulative abnormal returns in the days surrounding the announcement of a CAE turnover and that the market holds a relatively negative perception of CAE turnover regardless of the reasons for the turnover event. We then study two reasons for why the market would react negatively to the CAE turnover and …

Artificial Intelligence’S Capabilities, Limitations, And Impact On Accounting Education: Investigating Chatgpt’S Performance On Educational Accounting Case, Xu (Joyce) Cheng, Ryan Dunn, Travis Holt, Kerry Inger, J. Gregory Jenkins, Jefferson Jones, James Long, Tina Loraas, Mollie Mathis, Jonathan Stanley, David A. Wood

Faculty Publications

This study evaluates the capabilities of ChatGPT models 3.5 and 4 to provide solutions to eight educational accounting cases. We find that ChatGPT’s ability to provide accurate solutions varies depending on the type of case requirement and topical area of accounting, with better performance on tasks requiring elements that require explanation, application of rules, and ethical evaluation. However, ChatGPT performs poorly on tasks that require financial statement creation, journal entries, or software use. Our study also finds that detection tools provided by ChatGPT's developer are ineffective in identifying text created by Artificial Intelligence Text Generators (AITG). We suggest ways in …

Leveraging Chatgpt For Enhancing The Internal Audit Process – A Real-World Example From A Large Multinational Company, Scott Emett, Marc Eulerich, Egemen Lipinski, Nicolo Prien, David A. Wood

Faculty Publications

We discuss how the internal audit function (IAF) of a large multinational energy company, Uniper, is starting to use ChatGPT to improve automation of internal auditing. We investigate the benefits and challenges of integrating ChatGPT into internal audit processes and assess its impact on the efficiency and effectiveness of the IAF. Uniper has implemented ChatGPT into parts of audit preparation, fieldwork, and audit reporting. On their initial tests, they estimate efficiency gains ranging from 50 to 80 percent for various processes. We report key risks and challenges with using ChatGPT in internal auditing as well as the initial key practices …

The Dark Side Of Robotic Process Automation, Marc Eulerich, Nathan Waddoups, Martin Wagener, David A. Wood

Faculty Publications

Prior research on Robotic Process Automation (RPA) has largely focused on how it benefits firms and employees. In contrast, we interview 26 high-profile RPA stakeholders at a Fortune 500 firm to ascertain challenges, drawbacks, or pitfalls of using RPA. We identify five key problems related to RPA usage: (1) RPA is often used as a quick-fix band-aid instead of fixing core system issues, (2) RPA can cause serious control and security issues, (3) the true cost of RPA is often misunderstood and understated, (4) RPA governance is complicated and challenging, and (5) RPA usage can lead to a loss of …

Development Of A Framework Of Key Internal Control And Governance Principles For Robotic Process Automation (Rpa), Marc Eulerich, Nathan Waddoups, Martin Wagener, David A. Wood

Faculty Publications

Although robotic process automation (RPA) usage is growing rapidly in accounting, concerns are emerging regarding the internal controls and overall governance structure surrounding RPA. To help address these concerns, we use a design science research approach and work with a Fortune 500 company to develop an RPA governance framework. The framework consists of 4 governance areas and 14 control requirements, which help maximize the benefits and minimize the risks associated with the use of RPA. We validate that the framework is useful and generalizable to many organizations by presenting the framework to and subsequently interviewing and surveying 84 professionals at …

Chatbots Mitigate Help-Seeking Avoidance, James Gaskin, Eva Blondeel, Ryan Schuetzler, Rachel Serre, Jacob Steffen, David A. Wood

Faculty Publications

This research explores the transformative role of large language model (LLM) chatbots in fostering help-seeking behaviors among introverted and underrepresented students in educational settings. Despite the importance of help-seeking for academic success, certain groups exhibit avoidance behaviors due to self-presentation concerns and stereotype threats. By integrating LLM chatbots as non-judgmental, anonymous teaching assistants in an introductory information systems course, the study demonstrates how technology can mitigate these behaviors and promote inclusivity. The chatbots provided real-time, unbiased support, significantly enhancing the students' willingness to engage in help-seeking behaviors without fear of judgment. This practical application of chatbots not only supports academic …

Assessing Virtual Reality’S Influence On Honesty In Reporting, Jeffrey Pickerd, Nathan Waddoups, David A. Wood, Xiaomei (Grazia) Xiong

Faculty Publications

Organizations, businesses, and society are exploring and adopting virtual reality (VR) and augmented reality (AR). VR is expected to boost the global economy by $1.5 trillion by 2030. In this study, we focus on the effect of VR on an important accounting variable—reporting honesty. We examine reporting honesty across two tasks, various measures, and various populations, that are commonly used in existing research. In our initial experiment, participants misreported more in a dice rolling task when performing it in a VR setting than in a non-VR setting. However, in a second and third experiment attempting to replicate and extend our …

Improving The Production And Reviewing Of Design Science Research In Accounting, Noah Myers, Mason Snow, Nathan Waddoups, David A. Wood

Faculty Publications

Design Science Research (DSR) is a rigorous research methodology widely used in other fields like computer science and engineering, but its application in accounting is still relatively limited. This paper reviews the implementation of DSR published in accounting journals and provides recommendations to improve the authoring and reviewing processes. We review 51 DSR articles published in accounting journals between 2011 and 2023. The analysis identified areas where papers excelled and fell short, leading to recommendations in the following key aspects: adherence to a research framework, validation of research questions, defining objectives of artifacts, developing a more diverse set of artifacts, …

Short And Synthetically Distort: Investor Reactions To Deepfake Financial News, Scott Emett, Marc Eulerich, Jeffrey Pickerd, David A. Wood

Faculty Publications

Recent advances in artificial intelligence have led to new forms of misinformation, including highly realistic “deepfake” synthetic media. We conduct three experiments to investigate how and why retail investors react to deepfake financial news. Results from the first two experiments provide evidence that investors use a “realism heuristic,” responding more intensely to audio and video deepfakes as their perceptual realism increases. In the third experiment, we introduce an intervention to prompt analytical thinking, varying whether participants make analytical judgments about credibility or intuitive investment judgments. When making intuitive investment judgments, investors are strongly influenced by both more and less realistic …

Disclosure Benchmarking By Lawyers: Evidence Fromthe Ipo Setting, Michael S. Drake, Jeff Mcmullin, Kenneth Merkley, Chase Potter, John Treu

Faculty Publications

Lawyers play an important advisory role in drafting financial reports, yet empirical evidence documenting the influence of external legal counsel on this process remains sparse. This study focuses on a specific aspect of lawyers’ drafting process: the practice of reviewing disclosures previously filed by other issuers—a practice termed “disclosure benchmarking.” Using initial public offering (IPO) disclosures as the setting, we find that disclosure benchmarking is associated with amore efficient Securities and Exchange Commission (SEC) review process. We further find that it is associated with several measures of disclosure quality, including disclosures that are less likely to be revised in subsequent …

Technological Health: A New Perspective On Individual Well-Being In The Digital Era, Tanner Skousen, J. Andrew Lear

Faculty Publications

An individual’s well-being encompasses various facets, including physical, mental, and social health. This paper proposes that in a technology-dependent world, practitioners and researchers must adopt a “technological health” perspective. Through conceptual inquiry and extensive literature review, we propose the concept of technological health, drawing from related concepts. We present an initial framework that explicates technological health through the dimensions of access to technology, ability to use technology, and autonomy over technology. Practically, this new perspective refocuses our understanding of technological challenges and invites an ideology of diagnoses and treatments to comprehensively address individual-level concerns associated with personal technology use. Academically, …

Automating Evaluation Of Skill Assessment To Promote Skill Acquisition In The Area Of Data Analytics Automation, Joshua G. Coyne, Scott L. Summers, Brigham Villanueva, David A. Wood

Faculty Publications

As accounting increasingly embraces automation and data analytics, proficient skill assessment remains a challenge. We introduce an automated tool that streamlines the evaluation of Alteryx workflows. Utilizing the design science methodology, our tool effectively executes and compares Alteryx workflows against a solution, providing score and feedback. Validation demonstrates remarkable gains; our tool is error-free and 9 to 146 times faster than manual evaluation. The tool’s efficiency, accuracy, and user-friendliness make it much more feasible to assign unstructured Alteryx assignments for student development. Enhanced technology skills will promote hiring and productivity gains associated with automation in accounting.

Gauging Scholarly Engagement: An Investigation Into Topic Popularity Within The Asee Cit Division, Barry M. Lunt, Mudasser Fraz Wyne, David A. Wood

Faculty Publications

Since 2011, the Computing and Information Technology (CIT) division of the ASEE has had 427 papers presented and published in the proceedings of the ASEE Annual Conference and Exposition. This paper looks at these 427 papers as a whole, providing descriptive statistics, giving the top institutions and authors that have contributed to these papers, and providing information regarding the impact of the top ten papers, as measured by their citations and downloads. We have also used the ChatGPT version 4.0 to provide categories for the 427 papers, providing insight into the most popular topics for papers in the CIT division.

Explaining Corporate Tax Avoidance, Andrew Belnap, Kaitlyn Kroeger, Jacob Thornock

Faculty Publications

The tax avoidance literature identifies dozens of variables that are related to corporate tax avoidance, but it lacks a framework for understanding the relative importance of these variables and the theories that drive these relations. We distill thirty years of tax avoidance research into key theories, and then use novel empirical techniques to quantify the relative and total importance of proposed explanations. We find that factors tied to investment opportunities contribute more to explained variation than other proposed theories. On the other hand, agency costs and financial reporting concerns explain very little variation in tax avoidance proxies, while operating metrics …

2024 Finance Calendar, Amanda Christensen, Melanie Jewkes, Andrea Schmutz, Vincenza Vicari-Bentley, Kelan Combe, Rochelle Allen, Jenny Weller, Lauren Olsen, Rachel Booth

All Current Publications

The 2024 Finance Calendar outlines monthly steps to improve your personal finances over the course of the year.

Front Matter, Jobie Editor

Journal of Business, Industry, and Economics

No abstract provided.