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Full-Text Articles in Business

Does Managerial Risk-Taking Incentive For R&D Investments Translate To Future Earnings?, Ha Yun Cho Jan 2019

Does Managerial Risk-Taking Incentive For R&D Investments Translate To Future Earnings?, Ha Yun Cho

CMC Senior Theses

The convex pay-off structure of executive stock options (ESO) incentivizes CEOs to increase their firm stock-return volatility, thereby increasing their wealth in option portfolio. In this paper, I address two research questions. I first test if this managerial incentive induces executives to take on more risky projects in R&D that increases stock- return volatility, hence, boosting their personal wealth. I derive vega to measure managerial incentive, and vega is a dollar change in ESO for a 0.01 change in stock- return volatility. I find that there is a positive and statistically significant relationship between vega and R&D investment, which suggests …

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Financing Method And Abnormal Returns In Corporate Mergers And Acquisitions, Patrick Thomas Jan 2019

Financing Method And Abnormal Returns In Corporate Mergers And Acquisitions, Patrick Thomas

CMC Senior Theses

This study analyzes the impact of merger and acquisition financing method on buyer cumulative abnormal returns. The model builds on findings in previous literature by including deal structure variables, company variables, industry variables, time variables, and post-acquisition announcement return data from 2000 to 2018. The analysis does not find a statistically significant relationship between cash plus debt/stock financing and cumulative abnormal returns. However, significant coefficients for buyer and target industry suggest that deal structure varies and ultimately effects cumulative abnormal returns within specific industries. Additionally, significant results for buyer profitability and time variables provide insight on how the financial market …

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Are Cds Auctions The Tail Wagging The Dog? An Empirical Study Of Corporate Bond Return Volatility At The Time Of Default, Jennifer Mace Jan 2019

Are Cds Auctions The Tail Wagging The Dog? An Empirical Study Of Corporate Bond Return Volatility At The Time Of Default, Jennifer Mace

CMC Senior Theses

Over the past decade, numerous engineered credit events and cases of market participants manipulating bond prices to influence Credit Default Swap (CDS) auction payouts have occurred. These cases have become increasingly common, and the CFTC has stated they may constitute market manipulation and undermine not only the CDS market but also the credit derivative and default markets. Although there is a plethora of news and media coverage on publicized cases, there is no previous empirical research on evidence of these practices. This paper is motivated by the desire to determine if there is indirect evidence of bond price manipulation around …

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The Impacts Of Supra-Regional Multi-Resort Season Passes: A Hedonic Pricing Model Of Single-Day Lift Tickets For Us Ski Areas, Sijia Lai Jan 2019

The Impacts Of Supra-Regional Multi-Resort Season Passes: A Hedonic Pricing Model Of Single-Day Lift Tickets For Us Ski Areas, Sijia Lai

CMC Senior Theses

Numerous media analyses claim that supra-regional multi-resort season passes (mega passes) are negatively impacting skiing, snowboarding, and winter-sport communities. In particular, media claims that ski areas on these season passes are charging higher single-day lift ticket prices to nudge people to buy their season pass products. To test this claim, I use a hedonic pricing model to estimate the impact of season passes on adult single-day lift ticket prices. By applying OLS regressions to a dataset of 302 US ski areas for the winter of 2018-19, I find that the ski areas on the leading season passes (Ikon and Epic …

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The Fall Of The 10-K Report: Measuring The Impact Of Accounting Ratios On Financial Performance, Matthew Daruty Jan 2019

The Fall Of The 10-K Report: Measuring The Impact Of Accounting Ratios On Financial Performance, Matthew Daruty

CMC Senior Theses

The annual 10-K report has historically been the most important aspect in assessing the position of a publicly held company. However, as the flow of information has increased with the dawn of new technologies, less and less attention has been paid to these audited financial statements. In order to assess if investors are still reacting to the information contained in the annual report, this paper examines the relationship between accounting ratios and stock price in banks traded on United States stock exchanges. By examining accounting ratios instead of simply looking at Earnings Per Share, new information was revealed regarding what …

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Deal Or No Deal: The Relationship Between Firm Determinants & Venture-Capital Financing Decisions, Raghav Prasad Jan 2019

Deal Or No Deal: The Relationship Between Firm Determinants & Venture-Capital Financing Decisions, Raghav Prasad

CMC Senior Theses

In this paper, I analyze how firm attributes such as their age, industry, nature of industry, spinoff status and debt ratio influence venture-capital financing decision. I look at a sample of 280 firms that went public in the United States between 2015- 2019. This paper finds that firm age and debt are negatively related to the likelihood of being venture-capital backed. It also finds that firms in technology and biotechnology industries are more likely to be backed by a venture-capitalist.

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Are Nudges For Alternative Transit Persistent?, Mitchell J. Allan Jan 2019

Are Nudges For Alternative Transit Persistent?, Mitchell J. Allan

CMC Senior Theses

The benefits of converting single-person drivers to alternative transit options are well-established. One option to accomplish this is for employers to provide alternative commute incentive programs. However, the research on the implementation of such programs is lacking. To provide a test, this research analyzes data obtained from a field experiment on daily alternative transit commute choices for a seven-month period. Participants are divided into four treatment groups in a two-by-two design for the first three-month period: incentives with either loss or gain framing, and messaging nudges with either the private or public benefits of alternative transit commute choices. The participants …

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International Music Preferences: An Analysis Of The Determinants Of Song Popularity On Spotify For The U.S., Norway, Taiwan, Ecuador, And Costa Rica, Brendan Joseph Suh Jan 2019

International Music Preferences: An Analysis Of The Determinants Of Song Popularity On Spotify For The U.S., Norway, Taiwan, Ecuador, And Costa Rica, Brendan Joseph Suh

CMC Senior Theses

This paper examines data from Spotify’s API for 2017-2018 to determine the effects of song attributes on the success of tracks on Spotify’s Top 200 Chart across five different countries: the U.S., Norway, Taiwan, Ecuador, and Costa Rica. Two dependent variables are used to measure the success of a song – a track’s peak position on the charts and the number of days it survives on a country’s Top 200 Chart. Using ten separate regressions, one for each dependent variable in all five countries, it is concluded that the presence of a featured guest on a track increases a song’s …

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Mechanisms Driving Digital New Venture Creation & Performance: An Insider Action Research Study Of Pure Digital Entrepreneurship In Edtech, Kisito Futonge Nzembayie Jan 2019

Mechanisms Driving Digital New Venture Creation & Performance: An Insider Action Research Study Of Pure Digital Entrepreneurship In Edtech, Kisito Futonge Nzembayie

Doctoral

Digitisation has ushered in a new era of value creation where cross border data flows generate more economic value than traditional flows of goods. The powerful new combination of digital and traditional forms of innovation has seen several new industries branded with a ‘tech’ suffix. In the education technology sector (EdTech), which is the industry context of this research, digitisation is driving double-digit growth into a projected $240 billion industry by 2021. Yet, despite its contemporary significance, the field of entrepreneurship has paid little attention to the phenomenon of digital entrepreneurship. As several scholars observe, digitisation challenges core organising axioms …

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Predictive Analytics For College Basketball: Using Logistic Regression For Determining The Outcome Of A Game, Bryce Brown Jan 2019

Predictive Analytics For College Basketball: Using Logistic Regression For Determining The Outcome Of A Game, Bryce Brown

Honors Theses and Capstones

No abstract provided.

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Data Disparity: Tiered Pricing As An Alternative To Consumer Iot Data Privacy Regulations, Matthew Lostocco Jan 2019

Data Disparity: Tiered Pricing As An Alternative To Consumer Iot Data Privacy Regulations, Matthew Lostocco

Honors Theses and Capstones

In recent years, Internet of Things (IoT) devices have exploded on the consumer scene. These emerging products bring new technological capabilities into our everyday lives. IoT is projected to contribute anywhere from $4-11 trillion to the global economy and companies are investing billions of dollars into the technology. However, with the vast amount of data that IoT devices collect, consumers are burdening the risk of having their personal data breached or sold to third parties. This paper first identifies why consumers may be weary or willing towards providing their personal data and how unconscious biases in the purchasing process cause …

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The Facts Behind Gmo Food, Wenbin Liu Jan 2019

The Facts Behind Gmo Food, Wenbin Liu

Honors Theses and Capstones

No abstract provided.

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Challenges International Students And Their Perceive Values At University Of New Hampshire, Win Phyu Phyu Aung Jan 2019

Challenges International Students And Their Perceive Values At University Of New Hampshire, Win Phyu Phyu Aung

Honors Theses and Capstones

No abstract provided.

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Investment Ramifications Of Distortionary Tax Subsidies, James R. Hines Jr., Jongsang Park Jan 2019

Investment Ramifications Of Distortionary Tax Subsidies, James R. Hines Jr., Jongsang Park

Articles

This paper examines the investment effects of tax subsidies for which some assets and not others are eligible. Distortionary tax subsidies concentrate investments in tax-favored assets, thereby reducing the expected pre-tax profitability of investment and reducing payoffs to bondholders in the event of default. Anticipation of asset substitution encourages lenders to require covenants in debt contracts, which only imperfectly address asset substitution and distort investment. The result is that borrowing is made more expensive, which in turn discourages investment. Borrowing rates can react so strongly that aggregate investment may rise very little, or even fall, in response to higher tax …

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Graduate Bulletin: 2019-2020, Minnesota State University Moorhead Jan 2019

Graduate Bulletin: 2019-2020, Minnesota State University Moorhead

Graduate Bulletins (Catalogs)

No abstract provided.

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Investment Treaties, Investor-State Dispute Settlement, And Inequality: How International Investment Treaties Exacerbate Domestic Disparities, Lise Johnson, Lisa E. Sachs Jan 2019

Investment Treaties, Investor-State Dispute Settlement, And Inequality: How International Investment Treaties Exacerbate Domestic Disparities, Lise Johnson, Lisa E. Sachs

Columbia Center on Sustainable Investment Staff Publications

Over roughly the past four decades, government officials from around the world have been erecting a framework of economic governance with major – but under-appreciated – implications for intra-national inequality. The components of this framework are thousands of bilateral and multilateral treaties designed to protect international investment. In many jurisdictions, the treaties have been concluded without public awareness or scrutiny or even much discussion or analysis by government officials – including those officials responsible for negotiating the agreements(Poulsen 2015) – and without an adequate understanding of how these agreements could affect intra-national inequality. Long imperceptible, the size and power of …

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Theoretical Model Testing With Latent Variables, Robert Ping Jan 2019

Theoretical Model Testing With Latent Variables, Robert Ping

Marketing Faculty Publications

Topics include improving Average Variance Extracted (AVE), estimating a latent variable with only two indicators, and speeding up the "weeding" (itemizing) of a measure so it is consistent ("fits the data"), is valid and reliable, yet has more than 3 indicators.

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The Introduction Of The Philosophy Of Sufficiency Economy And Its Application To Consumer Context, Sasawan Heingraj, Suwakitti Amornpan Jan 2019

The Introduction Of The Philosophy Of Sufficiency Economy And Its Application To Consumer Context, Sasawan Heingraj, Suwakitti Amornpan

Marketing Faculty Publications

Thailand was one of the potential causes of the 1997 East Asian economic recession due to its lack of readiness in dealing with globalization. In fact, globalization can generate double-edged effects on a country’s economic condition. While it can mitigate global inequality and poverty, it can also be considered as the determinant of trade imbalances, income inequality, and deterioration of natural resources. In order to enhance a balanced and sustainable development at society and country level, we believe that the well-being of each individual should be taken into consideration. This article introduces the concept of Philosophy of Sufficiency Economy (PSE) …

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The Fallacy Of Defensive Protection For Traditional Knowledge, Margo A. Bagley Jan 2019

The Fallacy Of Defensive Protection For Traditional Knowledge, Margo A. Bagley

Faculty Articles

Proponents of databases as defensive protection posit that having sources of traditional knowledge easily accessible to, and searchable by, examiners during the prosecution process should minimize the grant of patents covering traditional knowledge, and avoid the problems such erroneously granted patents may produce. Some countries, such as India, which support an international sui generis positive protection instrument, also support the use of traditional knowledge databases, as the two approaches are not mutually exclusive. India's CSIR, which created and maintains the TKDL, asserts that the database has thwarted the grant of scores of patents in IP offices across the globe, although …

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Scenario Economic Impact & Marketing Implications For South Texas Saltwater Fishing Tournaments, Yeong Nain Chi, Marvin Lovett Jan 2019

Scenario Economic Impact & Marketing Implications For South Texas Saltwater Fishing Tournaments, Yeong Nain Chi, Marvin Lovett

Marketing Faculty Publications

The main purpose of this study is to employ scenario analysis to estimate the economic impact of the expenditures of anglers who participate in saltwater fishing tournaments in Port Isabel/South Padre Island, Texas. Secondly, this study discusses the implications for initiating, maintaining, and/or expanding marketing communications, including event marketing and event sponsorships, to promote saltwater fishing tournaments in South Texas. This study also evaluates impacts on adjacent areas, identifies potential uses for economic impact information, and provides justification for investment and support of programs related to the growing needs of saltwater recreational fisheries management. To accomplish this study, the IMPLAN …

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The Brand Relationship Of Cult-Like Following: Developing Scales Of Measurement In Apple And Catholic Devotees, Yi-Chia Wu, Michael Minor Jan 2019

The Brand Relationship Of Cult-Like Following: Developing Scales Of Measurement In Apple And Catholic Devotees, Yi-Chia Wu, Michael Minor

Marketing Faculty Publications

The purpose of this research aims to fill in the gap in the religion-brand relationship, and explores what constitutes a cult-like allegiance to a brand, by examining subjects’ relationship to the Apple brand, comparing survey response by subjects who were “devotees” versus “indifferents” to Catholicism and to Apple. This paper uses Ninian Smart’s (1989)“Seven Dimensions of Religion” as a theoretical framework to develop scales of measurement among Apple and Catholic devotees. The contribution of this research is the development of Catholic and Apple scales. The Catholic scale extracted three factors and the Apple scale generated four factors in CFA.

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Shareholders United?, Andrew K. Jennings Jan 2019

Shareholders United?, Andrew K. Jennings

Faculty Articles

Securities regulation has a way of crossing into other lanes. What public companies do is substantive regulation. How they govern themselves while doing it-or more importantly, how they disclose it-is securities regulation. So it is no surprise that the perennial concern over regulating money in politics should also become a question of federal securities regulation. The Shareholders United Act (the "Act")-passed by the House of Representatives as part of House Bill 1, an early, major piece of legislation in the 116th Congress-does just that. The Act would require that before engaging in political spending, public companies poll shareholders on how …

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Securities Disclosure As Soundbite: The Case Of Ceo Pay Ratios, Steven A. Bank, George S. Georgiev Jan 2019

Securities Disclosure As Soundbite: The Case Of Ceo Pay Ratios, Steven A. Bank, George S. Georgiev

Faculty Articles

This Article analyzes the history, design, and effectiveness of the highly controversial CEO pay ratio disclosure rule, which went into effect in 2018. Based on a regulatory mandate contained in the Dodd-Frank Act of 2010, the rule requires public companies to disclose the ratio between CEO pay and median worker pay as part of their annual filings with the Securities and Exchange Commission (SEC). The seven-year rulemaking process was politically contentious and generated a level of public engagement that was virtually unprecedented in the long history of the SEC disclosure regime. The SEC sought to minimize compliance costs by providing …

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การเรียนรู้เชิงรุกผ่านเว็บไซต์เพื่อสร้างแผนธุรกิจนวัตกรรม: ผู้เรียนระดับปริญญาตรี, ศราวณี พึ่งผู้นำ Jan 2019

การเรียนรู้เชิงรุกผ่านเว็บไซต์เพื่อสร้างแผนธุรกิจนวัตกรรม: ผู้เรียนระดับปริญญาตรี, ศราวณี พึ่งผู้นำ

Chulalongkorn University Theses and Dissertations (Chula ETD)

งานวิจัยนี้มีวัตถุประสงค์เพื่อพัฒนาเว็บไซต์สำหรับเขียนแผนธุรกิจที่สนับสนุนนวัตกรรมสำหรับนักศึกษาระดับปริญญาตรี การเขียนแผนธุรกิจถือได้ว่าเป็นหนึ่งในกิจกรรมที่สำคัญของการเป็นผู้ประกอบการและมีความเกี่ยวข้องกับกิจกรรมหลักของการศึกษาระดับอุดมศึกษามากขึ้นเรื่อย ๆ ในการศึกษานี้ได้เสนอ Collaborative Website ชื่อ BRAINY Business Model การศึกษาข้อมูลเชิงปริมาณจากแบบสอบถามของนักศึกษาระดับปริญญาตรี 432 คน (นักศึกษาชั้นปีที่ 3 และปีที่ 4 จาก 11 มหาวิทยาลัยในประเทศไทย) ในแง่ของเนื้อหาต่างๆ และการเข้าใช้ระบบ ผู้ใช้ต้องการจะสามารถเข้าใช้งานเว็บไซต์ได้โดยไม่ต้องจ่ายเงินในระดับสูงสุด (Mean = 4.375, S.D. = 1.003) และข้อมูลเชิงคุณภาพจากการสัมภาษณ์กลุ่มเป้าหมาย (นักศึกษาระดับปริญญาตรี 11 คน ซึ่งมีประสบการณ์ในการแข่งขันแผนธุรกิจ) พบว่า มีความสนใจใช้เว็บไซต์นี้ ผลการวิจัยยังชี้ให้เห็นถึงความต้องการในการเข้าถึงเว็บไซต์โดยมีระบบความปลอดภัย และต้องการดูวิดีโอสั้นๆ จุดเด่นของระบบนี้คือการเพิ่มเครื่องมือที่ช่วยให้นักเรียนมีความคิดสร้างสรรค์ในการค้นหานวัตกรรมซึ่งก็คือ TRIZ ที่ให้แนวทางเชิงตรรกะในการพัฒนาความคิดสร้างสรรค์สำหรับนวัตกรรมและการแก้ปัญหา ในส่วนของการทดลองใช้เว็บไซต์นี้ ผู้วิจัยใช้รูปแบบกึ่งทดลอง แบ่งผู้เรียนเป็น 2 กลุ่ม คือ กลุ่มทดลองที่ได้ใช้เว็บไซต์นี้ และกลุ่มควบคุมที่ใช้เว็บไซต์อื่น ผลการทดสอบสมมติฐาน พบว่า กลุ่มทดลองมีคะแนนในด้านต่างๆ สูงกว่ากลุ่มควบคุมอย่างมีนัยสำคัญทางสถิติ ได้แก่ ด้านระดับความใหม่ของผลิตภัณฑ์ ความคิดสร้างสรรค์ ความเกี่ยวข้องสอดคล้องกับ Theme งาน คือ เรื่องเกี่ยวกับผลิตภัณฑ์ใหม่ที่จะตอบสนองแนวโน้มที่เกิดในสังคมได้ และความถูกต้องทางวิชาการ ส่วนด้านเชิงพาณิชย์ ไม่มีนัยสำคัญทางสถิติ และจากการศึกษาความเป็นไปได้ทางการเงินของการลงทุนผลิตระบบนวัตกรรมนี้มีค่า NPV เท่ากับ 1,990,434.49 บาท IRR เท่ากับ 47.86% และระยะเวลาคืนทุน 2 ปี 4 เดือน

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นวัตกรรมระบบประเมินความสามารถในการแข่งขันของวิสาหกิจไทยในอุตสาหกรรมอาหาร, สุทธินันท์ รัตนโชติถาวร Jan 2019

นวัตกรรมระบบประเมินความสามารถในการแข่งขันของวิสาหกิจไทยในอุตสาหกรรมอาหาร, สุทธินันท์ รัตนโชติถาวร

Chulalongkorn University Theses and Dissertations (Chula ETD)

การศึกษางานวิจัยนี้มีวัตถุประสงค์เพื่อศึกษาปัจจัยที่ส่งผลต่อความสามารถในการแข่งขันของวิสาหกิจไทยในอุตสาหกรรมอาหาร การออกแบบและพัฒนานวัตกรรมระบบประเมินและการศึกษาการยอมรับนวัตกรรมระบบประเมินในเชิงพาณิชย์ โดยการวิจัยแบบผสานวิธี แบ่งออกเป็นการวิจัยเชิงคุณภาพด้วยการสัมภาษณ์ผู้เชี่ยวชาญ ด้วยวิธีการสุ่มแบบเจาะจง จำนวน 12 คน ร่วมกับการศึกษาข้อมูลเชิงปริมาณจากการสำรวจกลุ่มตัวอย่างด้วยแบบสอบถาม โดยวิธีการสุ่มตัวอย่างแบบหลายขั้นตอน จำนวน 333 คน มาจากกลุ่มตัวอย่างคือ สถานประกอบการของอุตสาหกรรมอาหารแปรรูปที่ผ่านการรับรองมาตรฐานสากลเพื่อการส่งออกจากหน่วยงานสังกัดกระทรวงเกษตรและสหกรณ์ และผลการวิเคราะห์องค์ประกอบเชิงยืนยันพบว่า ข้อมูลองค์ประกอบเชิงทฤษฎีมีความสอดคล้องกับข้อมูลเชิงประจักษ์ พิจารณาได้จากค่าไค-สแควร์มีค่าเท่ากับ 58.36 ซึ่งมีค่าความน่าจะเป็นเท่ากับ .253 ที่องศาอิสระเท่ากับ 52 และสัดส่วนของค่าไค-สแควร์ต่อองศาอิสระมีค่าเท่ากับ 1.12 ค่าดัชนีวัดระดับความกลมกลืนเท่ากับ 0.980 และค่าดัชนีวัดระดับความกลมกลืนที่ปรับแก้แล้วเท่ากับ 0.940 ซึ่งสอดคล้องกับค่าสถิติวัดความกลมกลืนจากค่าดัชนีวัดความกลมกลืนเปรียบเทียบมีค่าเท่ากับ 0.999 และสอดคล้องกับค่าความคลาดเคลื่อนในการประมาณค่าพารามิเตอร์ เท่ากับ 0.019 และการวิเคราะห์การถดถอยเชิงเส้นแบบพหุคูณสามารถตอบสมมติฐานของงานวิจัยได้ว่า ความสามารถทางนวัตกรรม ความสามารถทางการตลาด ความสามารถทางการจัดการและความสามารถเชิงพลวัตส่งผลทางบวกต่อความได้เปรียบทางการแข่งขันที่ยั่งยืนสำหรับวิสาหกิจไทยในอุตสาหกรรมอาหารแปรรูป ที่น้ำหนักสัมประสิทธิ์เท่ากับ 0.182, 0.170, 0.293, และ 0.329 ตามลำดับ และจึงนำปัจจัยดังกล่าวมาใช้ในการออกแบบและพัฒนานวัตกรรมระบบประเมินด้วยเทคนิค Machine Learning พบว่า ระบบประเมินฯมีความถูกต้องสูงที่ร้อยละ 93.34 และระดับการยอมรับการใช้งานระบบประเมินนี้สูงถึงร้อยละ 93.30 นอกจากนี้จากการศึกษาความเป็นไปได้ทางธรุกิจพบว่ารูปแบบการอนุญาตให้ใช้สิทธิแต่เพียงผู้เดียวมีความเหมาะสมมากที่สุด ด้วยระยะเวลาคืนทุนเท่ากับ 11 เดือน มูลค่าปัจจุบันสุทธิ เท่ากับ 154,669 บาท และอัตราผลตอบแทนเท่ากับ 36.03%

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"Welcome To Brooklyn - Your New Stomping Ground" Gretsch Drum Catalog, 2019, Gretsch Company Jan 2019

"Welcome To Brooklyn - Your New Stomping Ground" Gretsch Drum Catalog, 2019, Gretsch Company

Gretsch Company Catalogs & Price Lists

This is a Gretsch drum catalog from 2019, using a Brooklyn, New York motif. It contains a brief description of Gretsch's drum offerings, followed by a list of items and prices.

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The Loss Of Information Associated With Binary Audit Reports: Evidence From Auditors’ Internal Control And Going Concern Opinions*, Brant E. Christensen, Stevanie S. Neuman, Sarah C. Rice Jan 2019

The Loss Of Information Associated With Binary Audit Reports: Evidence From Auditors’ Internal Control And Going Concern Opinions*, Brant E. Christensen, Stevanie S. Neuman, Sarah C. Rice

Faculty Publications

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year are still more likely to subsequently restate the current year’s financial statements than companies with no material weaknesses in either year. Similarly, companies deemed to no longer have substantial doubt of continuing as a going concern are still more likely to declare bankruptcy than companies with no going concern opinion in either year. Results in both settings …

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Disclosure Overload? A Professional User Perspective On The Usefulness Of General Purpose Financial Statements*, Michael S. Drake, Jeffrey Hales, Lynn Rees Jan 2019

Disclosure Overload? A Professional User Perspective On The Usefulness Of General Purpose Financial Statements*, Michael S. Drake, Jeffrey Hales, Lynn Rees

Faculty Publications

We survey a broad group of professionals who use financial statements as part of their job to assess the extent to which they believe financial reports suffer from disclosure overload. Consistent with the claims made by regulators, auditors, and preparers, we find that a significant portion of professional financial statement users believe disclosure overload is a problem. However, this group is in the minority, with about twice as many professional users believing that overload is not a problem and that more information should be disclosed in financial statements. This dichotomy presents a difficult challenge to standard setters aiming to improve …

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Income Smoothing And The Usefulness Of Earnings For Monitoring In Debt Contracting, Peter Demerjian, John Donovan, Melissa F. Lewis-Western Jan 2019

Income Smoothing And The Usefulness Of Earnings For Monitoring In Debt Contracting, Peter Demerjian, John Donovan, Melissa F. Lewis-Western

Faculty Publications

We investigate whether income smoothing affects the usefulness of earnings for contracting through the monitoring role of earnings-based debt covenants. First, we examine initial contract design and predict that income smoothing will increase (decrease) the use of earnings-based covenants if income smoothing improves (reduces) the usefulness of earnings to monitor borrowers. We find that private debt contracts to borrowers with greater income smoothing are more likely to include earnings-based covenants. A structural model that explores the cause of this relationship provides evidence that smoothing improves the ability of earnings to reflect credit risk. Second, we examine technical default following contract …

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The Unbearable Heaviness Of Leadership: The Effects Of Competency, Negatives, And Experience On Women’S Aspirations To Leadership, Carol M. Sanchez, Kevin Lehnert Jan 2019

The Unbearable Heaviness Of Leadership: The Effects Of Competency, Negatives, And Experience On Women’S Aspirations To Leadership, Carol M. Sanchez, Kevin Lehnert

Peer Reviewed Articles

Competent women should aspire to leadership, but they may choose not to. We asked men and women at seven U.S. universities if competence, negatives of leadership, and experience affect their aspirations to leadership. Surprisingly, competent women with more work experience are less likely to aspire to leadership than men, while competent women with less work experience are more likely to aspire to leadership than men. The more women associate leadership with negative aspects, the less they aspire to leadership, compared with men. For both, the less competent they think they are to be leaders, the less they want to be …

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