bluuebunny/crossref_metadata_2025 huggingface dataset:
CEO Compensation, Performance Variables, and Socially Responsible Investing
Authors: Hurtt David N. , Kreuze Jerry G. , Langsam Sheldon A.
Published: April 2011

Significant investment dollars are now allocated to companies deemed by investors as socially responsible. This socially responsible theme contends that corporations should be held accountable for the totality of their actions and decisions, including CEO compensation levels. This paper investigates whether CEO compensation levels are more associated with traditional performance measures for socially responsible firms than for firms deemed not socially responsible, with the assumption being that social choice firms will be more sensitive to and may attempt to align CEO compensation levels with corporate performance. Rank correlation analysis and regression results using nine performance variables for 270 firms indicated that CEO compensation levels at social choice companies were more highly associated with performance variables than those at nonsocial companies. The study results suggest that social choice companies, in addition to their other corporate good deeds, seem to include CEO compensation levels as a part of their overall corporate decision process.
Student Perceptions of Sales Careers: Implications for Educators and Recruiters
Authors: Sojka Jane Z. , Gupta Ashok K. , Hartman Timothy P.
Published: April 2011

While sales careers offer tremendous job potential, they are frequently overlooked by graduating college students. Previous research suggests that negative sales stereotypes have influenced students’ desire for sales careers. In this paper we revisit student attitudes toward sales careers to identify student segments most likely to have positive and realistic views of sales careers. We found that marketing majors or students who have taken two or more sales classes view sales careers more positively than other business students. Non‐marketing majors or students exposed to sales careers either through internships/work experience or having family members in sales did not exhibit positive attitudes toward sales. We also observed some interesting gender differences on attitudes toward sales. We suggest that corporate recruiters may want to focus their recruiting efforts on marketing majors or students who have taken sales classes to identify students with positive and realistic views of sales careers: resulting in better employee task fit, lower job turnover, and reduced costs of recruitment.
Building Supply Chains: A Key To Enhancing Manufacturing Performance
Authors: Tracey Michael , Vonderembse Mark A.
Published: April 2011

Supply chain management is becoming critical as firms recognize that competition is shifting from company versus company to supply chain versus supply chain. Two important factors in building successful supplier relations are (1) defining criteria to select and evaluate suppliers and (2) involving suppliers in important, inter‐company decisions. This research describes the relationships between these factors and supplier performance and between supplier performance and manufacturing performance. It develops and administers a large‐sample survey and uses factor analysis to develop measures for the importance of supplier‐selection criteria, supplier involvement, supplier performance, and manufacturing performance. The results indicate that importance of supplier‐selection criteria and the use of supplier involvement have direct and significant impacts on supplier performance and that supplier performance has a direct and significant impact on manufacturing performance.
From Market to Commitment: A New Inter‐firm Relationship in the North American Automotive Supply Chain
Authors: Senter Richard , Flynn Michael S.
Published: April 2011

The automotive industry in North America is experiencing a period of far‐reaching reorganization. Part of that change is in the automotive supply chain, including firms in the industry, such as Ford or General Motors, that assemble the vehicles and firms that are their suppliers. The particular emphasis in the research reported below is on the new relationships among these firms in the automotive supply chain. Some of the data come from in‐depth interviews with twenty‐six senior executives in North American automotive companies, from a survey of 175 firms in the North American automotive industry, and from sessions with an advisory board of representatives of leading industry companies. Additional data derive from historical accounts of the industry. This paper briefly summarizes the differentiation of the supply chain into four types of firms, and the reallocation of tasks within the supply chain. This has meant a transfer of responsibilities from the assemblers (such as Ford) to various kinds of suppliers, and a resultant shift in the system of responsibility and authority in the supply chain. The paper then explores in detail changes in the nature of relationships among firms in the supply chain from a type termed the market model to a type termed the commitment model. Additional topics include changes in the way relationships among firms are initiated and reasons for the new type of relationship. The changes are interpreted in terms of both firm‐level and industry level‐factors. The changes and their underlying causes allow certain predictions: the process of change to the new type of relationship will continue at least until 2005; and it is uncertain how far the new mode of relationship, the commitment model, will extend through the supply chain.
The Changing Roles of Managers within the Supply Chain Networks: Theory and Practical Implications
Authors: Novicevic Milorad M. , Buckley M. Ronald , Harvey Michael G.
Published: April 2011

The purpose of this paper is to provide a theory‐based explanation for the emerging managerial role set within supply chain networks. As managing within supply networks requires a portfolio of capabilities, the emerging managerial role set is explained utilizing a combined knowledge‐based view and relational contracting theoretical perspective. The multiple foci of the manager’s role set within supply networks is associated with unique challenges that are also examined. Based on the analysis of these new challenges for supply chain managers, the managerial and research implications are outlined. In conclusion, specific managerial actions, which are necessary in supply chain networks to engender the development of trust and social capital in supply networks, are explained.
Communicating Along the Supply Chain: A Survey of Manufacturers’ Investment and Usage Plans for Information Technologies
Authors: Treleven Mark D. , Watts Charles A. , Hogan Patrick T.
Published: April 2011

In order to survive and thrive in today’s global economy, firms of all sizes must be able to use information as a competitive weapon. Manufacturing firms must be able to receive and process customer orders, schedule shop orders, and place purchase orders efficiently to be effective members of their supply chain. Information technology can be used to facilitate the exchange of order information between business functions and supply chain members. Two information technologies that are used for this information exchange are enterprise resource planning (ERP) and electronic commerce (e‐commerce). This article discusses the results of a survey of Midwestern manufacturers on their current and future use of and investment in information technology to support their supply chain activities. The results of the study show that there is a difference in the use of and investment in information technology between small/medium manufacturers and large manufacturers. Large manufacturers are placing more emphasis on supply chain technologies than small manufacturers. Manufacturers’ investment in information technologies for the supply chain were found to lag those for the manufacturing/operations function. The results also show that use of e‐commerce is greater than the use of ERP.
An Environmental Baldrige?
Authors: Curkovic Sime , Landeros Robert
Published: April 2011

This study develops an integrated theory about how Total Quality Management (TQM) based capabilities can be leveraged for Environmentally Responsible Manufacturing (ERM). It suggests that efforts should be coordinated to take advantage of the potential synergies between TQM and ERM. The means for capturing these synergies might be accomplished by using the Malcolm Baldrige National Quality Award (MBNQA) framework. The MBNQA framework was adapted to address environmental issues and it was shown that the framework can be used as a basis for an integrative definition of ERM. This adaptation of the MBNQA framework suggests that there is an environmental version of the MBNQA framework and that quality principles can be seamlessly integrated into the practice of managing environmental issues. However, an empirical examination of the linkage between TQM and ERM remains untested. The findings of this study provide an important foundation for accomplishing this goal.
Advanced Manufacturing Technology Investment Patterns
Authors: Boyer Kenneth K.
Published: April 2011

This study presents a longitudinal analysis of patterns of investment in advanced manufacturing technologies (AMT) and financial performance. Investments in AMT from fifty manufacturing plants in the metalworking industries are examined. Data was collected via mail surveys administered to fifty manufacturing plants at three separate data collection times: 1994, 1996, and 1998. This study seeks to fill a void in the area of technology management, which is comprised primarily of cross‐sectional studies that do not address the dynamic nature of investments in technology. The results suggest differences in the evolutionary profile of several technologies, including e‐mail, bar coding, robotics, and computer aided design. Further tests indicate that there is a positive relationship between many of these technologies and plant financial performance. Finally, the longitudinal data suggest that there is approximately a two‐year time lag between investment in technology and performance improvements.
Student and Employer Perceptions of Desirable Entry‐level Operations Management Skills
Authors: Gabric Daniela , McFadden Kathleen L.
Published: April 2011

The purpose of this study is to determine whether there is a significant difference between employers and students on their perceptions of the importance of skills and traits critical for securing entry‐level employment in operations management. Another major concern in this study is whether employers value general skills more than technical abilities. To address our research questions, a two‐page questionnaire was developed. We found significant differences in mean scores between employers and students in their perceptions of the importance of general skills, technical skills, and personality characteristics. In addition, our findings indicate that employers value general skills significantly higher than technical skills. The results of this study provide a foundation for operations management programs in curricula reengineering and ultimately provide the business community with more qualified applicants.
The Impact of Nonbusiness Majors in a Business Core Course
Authors: Brewer Peggy D. , McGlone Vernon L. , McGlone Teresa A. , Brewer Virgil L.
Published: April 2011

Most four‐year business degree programs have a common body of knowledge (CBK) or “business core,” composed of courses from all the major disciplines in the business curriculum. All business majors, regardless of specialization or area of concentration, are required to take these courses, or their equivalent, as a part of their degree programs. On many campuses, non‐business majors are also enrolled in these courses. Some of these non‐business students are required by their curriculum programs to take specific business courses; others take them as electives. The result is a mixture of students with varying backgrounds and interests in some CBK classes. This mix of business and non‐business majors in the same course raises several questions, three of which were examined in this study. In a mixed course, is there any difference between business and non‐business majors’ attitudes about the course? Is there any significant difference in performance between business and nonbusiness majors in the same course? What are the attitudes of faculty who teach such courses concerning student performance and instruction of the course? A survey was administered to study perceptions of business and non‐business majors concerning a single CBK course at one institution. In addition, course grades for business and non‐business majors at that institution were compared. Another survey was administered to ascertain the opinions of professors teaching the same CBK course at institutions located throughout the southeastern United States. Results of the surveys showed that faculty and students had different perceptions and that student grades tended to differ by major.
Cross‐Functional Business Programs: Critical Design and Development Considerations
Authors: Aurand Timothy W. , DeMoranville Carol , Gordon Geoffrey L.
Published: April 2011

Well‐documented corporate demands for crossfunctionally competent employees have instigated a wide variety of efforts by the educational community to integrate business curricula. Many colleges and universities struggle to functionally integrate business programs that historically have been delivered by well‐defined, and often well‐siloed, disciplines. Drawing from the numerous published and unpublished case studies of cross‐functional integration attempts, this study develops a framework of critical issues to consider when developing an integrated program. The framework develops five major categories of issues (strategic, leadership, administrative, faculty, and student) to help universities identify typical program decisions and potential roadblocks that may inhibit the development of a successful program.
An Investigation of Auditor and Client Tenure
Authors: Sinason David H. , Jones Jefferson P. , Waller Shelton Sandra
Published: April 2011

The purpose of this study is to examine the duration of the auditor’s relationship with a client and factors that affect audit firm tenure. The duration of the auditor and client relationship has been cited as possibly affecting the risk of a loss of auditor independence. Also, audit firm tenure has been used as an independent variable in several studies with variations on the characterization of a “long auditor‐client association.” However, little is known about the duration of the auditor’s relationship with a client. Generally, no empirical justification is provided for the treatment of the variable and no consideration is included for auditor or client factors that may affect the relationship. This study evaluates the duration of the auditor relationship with a client and determines which factors contribute to changes in that relationship. In an examination of 16,976 COMPUSTAT companies over a twentyyear period, the mean duration of audit tenure is found to be more than six years. However, audit tenure is affected by client size, client growth rate, and type of audit firm involved in the change of auditor. Audit tenure is not affected by audit firm size, client risk, or audit opinion.
Listening to Customers
Authors: Garver Michael S.
Published: April 2011

While most practitioners are familiar with traditional customer satisfaction surveys, research findings suggest that best practice companies use multiple tools to bring the voice of the customer inside the organization. The purpose of this study is to examine how best practice companies use various tools to listen to customers. The primary contribution of this article is in discussing a variety of different customer listening tools used by practitioners, along with introducing new customer listening tools to the literature. Furthermore, this article puts forth a framework that captures essential characteristics of each tool, depicting when their use is most appropriate. Finally, this article depicts how customer listening tools are linked together and synthesized into a customer performance model.
An Examination of Privacy Policies in Fortune 500 Web Sites
Authors: Liu Chang , Arnett Kirk P.
Published: April 2011

Although personal information privacy concerns have been around for years, the introduction of E‐commerce and its associated technologies presents privacy concerns anew. The Fortune 500 represents traditional leadership in the use of technologies and business practices. This preliminary study examines Web sites of the Fortune 500 and shows that slightly more than 50 percent of Fortune 500 Web sites provide privacy policies on their home pages. Comprehensive privacy policies to address all privacy dimensions recommended by the FTC are less common.
Product Quality in Electronic Commerce: An Old Problem Recast
Authors: Lawson Catherine L.
Published: April 2011

In order to ensure the continuing expansion and success of electronic commerce, the issue of how to assess product quality of items sold over the Internet must be addressed. The formal literature of microeconomics presents a conceptual framework for this assessment that is applied in the case study presented in this paper. The type of transaction studied is online auction transactions conducted through the popular web site, eBay. Quality issues, as well as other sources of buyer dissatisfaction with electronic purchases, are addressed on eBay through a bulletin board style feedback system by which members of the eBay community may report on various aspects of their eBay transactions. eBay publishes the feedback ratings of each seller as a part of its listing of any item for sale and also disciplines sellers that accumulate too much negative feedback. This would seem to provide buyers with some degree of protection from sellers who are unscrupulous in their claims regarding product quality. The empirical work presented here examines the effectiveness of this system using logistic and ordinary least squares regression, and concludes that at least key aspects of the system offer adequate incentives to sellers to provide accurate representations to buyers regarding the quality of their merchandise.
Reducing Identity Politics in the Workplace A Modest Proposal
Authors: Suess Kennedy Sheila , Magjuka Richard J.
Published: April 2011

Ever since passage of the 1964 Civil Rights Act, employers have complained that nondiscrimination laws constitute an additional regulatory burden on business, while civil rights advocates have argued that compliance requires nothing more than the sorts of sound personnel practices that successful businesses have long found to be effective management tools. While most Americans clearly agree that people ought not be subjected to invidious employment discrimination based on race, religion, or other criteria unrelated to job performance, current laws do not necessarily represent the best approach to that problem. We argue that the “group identity” approach to workplace equity embedded in traditional civil rights statutes has retarded, rather than promoted, the adoption of sound and valid personnel assessment tools, and that attempts by U.S. business to reconcile the mandates of current civil rights law with fair and effective corporate human resource practices represent a heroic but fundamentally flawed effort. In this paper, we outline an alternative model based upon worker productivity which we believe to be legally defensible and practically superior to current regulatory approaches to evaluating and attaining fairness in the workplace.
Postcard Prenotification in Industrial Surveys: Further Evidence
Authors: Murphy Paul R. , Daley James M.
Published: April 2011

While mail surveys continue to be a widely used research technique, relatively little empirical research exists that assesses their effectiveness among industrial (commercial) organizations. To address this literature void, the present paper reports the findings from a mail survey of international freight forwarders. More specifically, this paper investigates the influence of postcard prenotification with respect to response rates, response speed, response quality, response bias, and response cost effectiveness. The paper also discusses implications of the results and offers suggestions for further research.
Corporate Pension Plans: How Consistent are the Assumptions in Determining Pension Funding Status?
Authors: Newell Gale E. , Kreuze Jerry G. , Hurtt David
Published: April 2011

With the bankruptcy of Enron and the accompanying loss of pension benefits of its employees, pensions have recently received significant press. Accounting for pension plan obligations, for defined benefit plans in particular, requires companies to make assumptions regarding discount rates, projected salary increases, and expected long‐term return on plan assets. Such assumptions, in turn, determine the funding status of the pension plan and the annual pension expense. Higher assumed discount rates reduce the pension obligation, enhance the funding status of the plan, and reduce any lump‐sum payments. Higher expected return on assets reduces the current pension expense. This study investigates the relationship between pension plan assumptions and the funding status of a pension plan. The results reveal that companies with pension plans that are more fully funded assume higher discount rates and expected long‐term return on assets than do companies with less funded plans. The effect of these assumptions is that higher discount rate assumptions lead to better funding status, and higher expected long‐term rates of return on assets partially offset the pension expense impacts of these higher discount rate assumptions. We are doubtful that more funded plans collectively should be assuming higher discount rates and expected long‐term return on plan assets, especially since the actual return on plan assets investigated did not correlate with these assumptions.
Subscription Supply Chains: The Ultimate Collaborative Paradigm
Authors: Cook Robert L. , Garver Michael S.
Published: April 2011

Supply chain practitioners have made great strides in forming collaborative partnerships, yet the end consumer is often left out of these plans. Being an important member of the supply chain, we propose that supply chains need to get closer to the end consumer ‐ forming collaborative relationships that center around demand planning. Developing subscription relationships with end consumers will lead to increased planning time, which will result in dramatic cost reductions and superior consumer value and satisfaction through lower costs, increased convenience, and improved availability of supply. Being a new and unique strategy, not all consumers will adopt subscription supply chains. However, we argue that some consumer segments will receive tremendous value and satisfaction purchasing certain types of products and services through subscriptions. Tremendous opportunities await those supply chains who target the right consumers, marketing the right products and services through a subscription supply chain.
The Social Responsibility of Corporate Management: A Classical Critique
Authors: Coelho Philip R. P. , McClure James E. , Spry John A.
Published: April 2011

Calls for corporate social responsibility are widespread, yet there is no consensus about what it means; this may be its charm. However, it is possible to distinguish the fi duciary obligations owed to shareholders, as expressed by Milton Friedman, from all other paradigms of corporate responsibility. Friedman maintains that: “ ...there is one and only one social responsibility of business‐to‐use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition, without deception or fraud.” All other paradigms argue that corporations have social responsibilities that extend beyond the pursuit of shareholder benefits to stakeholders. The list of cited stakeholders is ill‐defined and expanding, including non‐human animals and non‐sentient things. This paper defends the intellectual and ethical merits of fiduciary duties, and compares and contrasts it to the stakeholder paradigm. The fiduciary duty to firms’ owners is the bedrock of capitalism, and capitalism will wither without it.
A Response to “The Social Responsibility of Corporate Management: A Classical Critique”
Authors: Post Frederick R.
Published: April 2011

The preceding article, “The Social Responsibility of Corporate Management: A Classical Critique,” argues that the Shareholder Theory, which the authors refer to as the “Friedman Paradigm” represents the only intellectually and ethically meritorious model for assessing corporate social responsibility. This response argues that the 19th Century Shareholder Theory is based upon numerous factual and legal inaccuracies and fictions when evaluated in the context of the modern era. Requiring that management serve only the interests of the shareholders is morally untenable. The authors’ assertion that the competing theory, The Stakeholder Theory, is unworkable is based upon both a misunderstanding and misinterpretation of the theory. Refinements and clarifications about who qualifies as a stakeholder make the Stakeholder Theory both workable and a very useful way to improve corporate governance. Now is the time to apply the Stakeholder Theory as part of the ongoing process of improving the moral and social responsibility of corporation management.
The Enron Scandal and the Neglect of Management Integrity Capacity
Authors: Petrick Joseph A. , Scherer Robert F.
Published: April 2011

The nature, value, and neglect of integrity capacity by managers and the adverse impacts that Enron executive practices have had on a range of stakeholders are delineated. An explanation is given on how moral competence in management practice is addressed by each dimension of the management integrity capacity construct (process, judgment, development, and system) and how Enron executive practices eroded each dimension. Specifically addressed is how behavioral and moral complexity can be utilized to balance the competing values of management and ethics theories to reduce the likelihood of future Enron‐like managerial malpractice. Finally, three positive action steps are recommended to improve managerial integrity capacity and remedies are proposed for victimized Enron stakeholders.
Environmental Concerns, Effort and Impact: An Empirical Study
Authors: Ahmed Nazim U. , Montagno Ray V. , Naffziger Douglas W.
Published: April 2011

This study investigates the relationship between environmental concern, environmental effort and their impact on company performance. Results based on survey data from sixty companies indicate that there is a positive correlation between environmental concern and effort. In addition, positive correlations between effort and operations efficiency and company image were found. No significant correlation between environmental effort and profit was found. It was observed that top management concern is a key to environmental initiatives. Manufacturing companies seem to have higher concern than those of service companies and expend more effort in reducing pollution, waste recycling etc. However, there is no significant difference in impact on performance between manufacturing and service companies relative to environmental efforts.
Employee Involvement to Improve Safety in the Workplace: An Ethical Imperative
Authors: Ariss Sonny S.
Published: April 2011

Companies in general have not lived up to their ethical responsibility in assisting workers in decreasing workrelated accidents and illnesses. This paper presents a systematic four‐stage employee involvement model that was successful in transforming a company’s culture to become a model for preserving workers’ rights to safe working conditions. By changing the prevailing management ideology on safety, the model offers a positive solution to improving workplace safety and morale, while preserving the workers’ rights to be involved in decisions that affect the quality of their lives.
An Investigation of Poison Pill Securities, Long‐Term Debt, and the Wealth of Shareholders
Authors: Forjan James , Van Ness Bonnie
Published: April 2011

Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are also known as shareholder rights plans, are typically used in conjunction with other takeover defense mechanisms, such as anti‐takeover charter amendments or dual classes of stock. This study examines the role that debt plays as an anti‐takeover strategy in the presence of poison pills. The results show that, on average, capital markets have little reaction to poison pill announcements. A regression equation, however, shows that announcement period abnormal returns are positively related to leverage ratios. This paper provides empirical evidence that the capital structure of firms plays an important role in the perceived strength of poison pills.
The Meaning Behind the Message: Climate Perceptions and the Psychological Contract
Authors: Kickul Jill , Liao‐Troth Matthew A.
Published: April 2011

It has been argued that the social and informational cues within the work environment need to be investigated to better understand and identify a nomological network underlying the psychological contract construct. This study is one of the first to investigate how employees may use social and informational messages and cues in the work environment to formulate and place meaning behind their employee employer exchange relationship. We present a model that
examines specific dimensions of employees’ psychological climates that may serve as a basis for understanding their contract with their organization. Three hundred and seventy employees from a variety of organizational settings completed measures of their climate (role characteristics, job characteristics, workgroup and social environment, leader behaviors, and organizational and subsystem attributes) as well as their perceptions of their psychological contract. The model and proposed relationships were tested through a series of hierarchical regression analyses. Results revealed that role characteristics were associated with the workload and clarity components of the contract while job characteristics were related to the work variety, work importance, and autonomy contract factors. Workgroup and social environment dimensions were related to the contract components of social interaction and work conditions and leader behaviors were associated with the feedback contract factor. Finally, organizational and subsystem attributes were linked to the compensation, benefits, security, advancement, development opportunities, fairness, and interpersonal factors of an employee’s psychological contract. Study contributions and limitations as well as directions for future research are discussed.
The Perceived Impact of Outsourcing on Organizational Performance
Authors: Elmuti Dean
Published: April 2011

Outsourcing is the strategic use of outside resources to perform activities that are usually handled by internal staff and resources. By using a well‐managed outsourcing agreement, companies can gain in markets that would otherwise be uneconomical. This study was designed to explore why companies are undertaking outsourcing projects and identifies factors that may facilitate or impede outsourcing projects. In addition, this article examines the relationships between outsourcing strategies and organizational performance. The results show that organizations generally considered themselves successful at outsourcing. However, while they achieved significant improvement in organizational performance, they have not reached the magnitude of improvements ascribed to outsourcing.
The Social Responsibility of Management: A Reprise
Authors: Coelho Philip R. P. , McClure James E. , Spry John A.
Published: April 2011

Frederick R. Post’s response (2003) to our paper (“The Social Responsibility of Corporate Management: A Classical Critique,” 2003) is factually mistaken, inconsistent, and confused over: 1) the contents of our paper, 2) how corporate capitalism works, and 3) the consequences of what he advocates. This reply discusses these points, and revisits both our critique of the stakeholder paradigm and defense of shareholder primacy.
The Social Responsibility of Management: A Critique of the Shareholder Paradigm and Defense of Stakeholder Primacy
Authors: Post Frederick R.
Published: April 2011

Shareholder Theory allows management to ignore the interests of the other constituencies while pursuing its own narrow self‐interest under the guise (the ethical facade) of promoting the interests of the shareholder owners. The Shareholder Theory does not provide any relistic counterweight against management abuse. The Enron example strengthens the arguments for the use of Stakeholder theory and exposes the utter failure of the Shareholder Theory.
Management Motive, Shareholder Returns, and the Choice of Payment: Evidence from the UK
Authors: Raj Mahendra , Forsyth Michael
Published: April 2011

Prior studies have reported mixed findings regarding bidder shareholder returns. There are many theories regarding the motivation towards the initiation of a takeover. This study intends to analyze four major merger motivations separately and examine the impact each has on bidder returns. We find the market reacts according to the nature of the takeover and the underlying motive behind the bid.
A Cross‐industry Analysis of Large Firm Transactional Public Web Sites
Authors: Young Dale , Benamati John
Published: April 2011

This study examines how the Fortune 500 use transactional public Web sites (TPWS). It applies innovation diffusion theory to identify variables and construct a model to explain differences in adoption rates of TPWS across industries. The study finds high rates of TPWS adoption in the airline, computer and office equipment, commercial banking, and retailing industries. The study also explains why the rates of TPWS adoption vary across different industries. Characteristics of both the innovation and the industry’s environment affect TPWS adoption. A high level of TPWS adoption is associated with industries where: products, services, and sales processes “fit” electronic transactions, the level of price competition is extreme, competitors are aggressively adopting the same technology, and firms are experienced with related technologies and have already developed the necessary information technology infrastructure. The study is significant because it identifies the specific innovation and environmental characteristics that drive varying rates of TPWS adoption among large firms across different industries.
The Gender Equity Gap in Top Corporate Executive Positions
Authors: Healy Burress Joanne , Zucca Linda J.
Published: April 2011

Although Corporate America has expended great efforts to shrink the gender equity gap at all levels, there is persistent evidence in the financial press that the gap still exists. This study focuses on the gender equity gap in the most highly compensated positions within corporations. Using Standard & Poor’s Compustat ExecuComp database for 1992‐1997, we find that only 3 percent of the most highly compensated executives are female, that these positions are held disproportionately by men, and that female executives are more likely to be clustered in particular industry groups. In a sample matched by job title, company size and industry, male executives earn significantly higher salaries and bonuses, though total compensation is not significantly different. However, these compensation differences may be explained by differences in human capital characteristics such as age and tenure within a particular job title. Thus, the gender equity gap at top executive positions may be due more to a lack of opportunity than to wage discrimination.
A Study of Computer Anxiety Among Business Students
Authors: Havelka Douglas , Beasley Fred , Broome Travis
Published: April 2011

An empirical study was conducted to investigate predictors of computer anxiety among undergraduate college business students. The effects of academic major, computer‐related experience, gender, and ACT scores on computer anxiety were investigated. The results indicate significant differences in computer anxiety levels among business students with different majors and with different amounts of computer‐related experience. Business students’ ACT scores were also found to have a significant relationship to computer anxiety. A significant difference between male and female business students was not found. The implications of these findings are discussed.
Accounting for Stock Options: Measuring the Real Cost Through Time
Authors: Cron William R. , Hayes Randall B.
Published: April 2011

Accounting for stock options is a controversial issue. The FASB recognized that the “intrinsic value” method, which had been used for years, failed to adequately account for the costs involved. To rectify the problem they suggested the use of a “fair value” method. Their proposal met with strong objections from companies, which were concerned with the impact of the proposed standard on their reported profits. Consequently, the board relented and allowed the use of either method. Unfortunately, both the intrinsic value and fair value approaches have deficiencies, particularly in regard to how they measure compensation expense and gains and losses over time. This paper addresses these shortcomings by developing two alternative cost measurement approaches that apply an option‐pricing model on an iterative basis over the life of the option. Both approaches represent specific ways to implement exercise‐date measurement techniques for stock options. The paper argues that both approaches provide more relevant and reliable measures of an option’s cost than either intrinsic or fair value methods.
Dispute Resolution in the Korean and US Markets: A Comparison
Authors: White Nancy J. , Lee Jun
Published: April 2011

Human interaction gives rise to conflict. This paper addresses general characteristics of Korean and United States culture relative to conflict resolution. In general, in the United States, conflict resolution is characterized by a win‐lose philosophy. Americans approach disputes with an attitude that one party is wrong, one is right and the purpose of dispute resolution is to decide who is right. Americans also believe that though the legal system is time‐consuming and expensive it can (for the most part) determine right and wrong. As a general statement most Americans respect the legal system and the law, though they find the process of litigation time consuming and expensive. In general, Koreans approach disputes with an attitude that all parties are partly wrong and partly right. Disputes are to be resolved in indirect and nonconfrontational ways so that harmony is restored and the relationship between the parties returns to one of harmonious interaction. Koreans have little respect for the law and the legal system and tend to depend upon non‐legal techniques to resolve disputes.
A Simulation of the Future Economic Impact of Pension Rate Reductions
Authors: Blankley Alan I. , Cottell Philip G. , McClure Richard H.
Published: April 2011

Pension rate estimates are important because they provide information to the market, and because they are useful in estimating future cash flows or for other analytical purposes. This is especially true now, because the economic environment has deteriorated to a point that many investors perceive increased uncertainty with respect to pension plans and the effect they have on future income. In fact, several authors in the popular financial press have speculated on the impact of such fundamental changes in pension assets, liabilities, and estimates. Often, however, these articles are sensational, and do not appear to appreciate fully the complexities of pension accounting. In order to model the economic impact of pension rate declines, we develop a two‐period analytical model of pension cost, which allows us to simulate future pension expense and its associated earnings impact using a triangular distribution of rate estimates. In addition, we model the incremental cash contributions required under these estimates in order to maintain the ratio of pension assets to liabilities at 100 percent. Our results indicate that while the pension expense effect is large in both periods across firms with small, mid‐sized and large pension plans, firms with large plans show the greatest increase in pension expense. Interestingly, however, the earnings impact is the smallest for firms with large plans in both periods. In addition, all firms face significantly increased cash funding requirements in order to prevent funding ratios (plan assets scaled by pension liabilities) from deteriorating. These results suggest not only future earnings reductions from pension rate declines, but also a potentially significant cash flow impact as well.
A Longitudinal Study of One Organization’s Culture: Do Values Endure?
Authors: Campbell Constance R.
Published: April 2011

Organizational members responded to four open‐ended questions about the organization’s culture at two times, six years apart. Results of a content analysis of the responses indicated that organizational values remained stable, despite extensive changes in the top leadership of the organization coupled with environmental forces that were pushing for change in the organization’s culture. The categories of responses that emerged from the survey were explored and discussed as depictions of the organization’s culture.
Learning from Failure
Authors: Coelho Philip R.P. , McClure James E.
Published: April 2011

Failures may lead to ultimate success in both nature and business. Just as dynamic ecosystems depend on death to replace senescent organisms with vigorous growth, the termination of uneconomic activities is essential to wealth creation. This paper explores the benefits of failures, and uses aspects of the analogy between death and business failure to analyze how failures in business economize upon resources and lead to better firms and greater efficiencies. A distinguishing feature of our work is the analytic use of competitive markets to provide insights into the processes of success and failure. Recognizable patterns of business failures are discussed in an effort to provide entrepreneurs and managers with a basis for understanding and acting upon changing circumstances.
Qualitative Expressions of Magnitude: The Auditor’s Responsibility
Authors: Amer T.S. , Drake Phil
Published: April 2011

Publicly traded firms issue annual reports with significant portions that contain non‐numerical information (i.e., written expressions). AU Section 550 of the professional standards (AICPA 2003) refers to this type of non‐numerical information that accompanies the financial statements as “other information.” AU Section 550.04 clearly indicates that the auditor should read this other information and consider whether such information is materially inconsistent with information, appearing in the financial statements or the manner of its presentation. This paper determines how the users of the letter to shareholders that appears in the annual report numerically interpret the qualitative expressions of magnitude used by top management (e.g., how users would numerically interpret the phrase “a significant increase in earnings”). The numerical interpretations of these qualitative expressions are then used to guide auditors in making the determination of when the use of a qualitative expression may be materially inconsistent with the information that appears in the accompanying financial statements.
The Effect of Litigation on Independent Auditor Selection
Authors: Allen Mary F. , Linville Mark , Stott David M.
Published: April 2011

We examine the role of past litigation in the selection of independent auditors. Using a sample of persons typically involved in auditor selection, we find that any litigation announcement alleging audit improprieties greatly reduces the auditor’s likelihood of hire regardless of the type of legal action announced or the degree of direct involvement by the auditor. Based on these findings, litigation imposes an indirect (and potentially substantial) cost by impeding the CPA’s ability to attract new clients.
A Success Versus Failure Prediction Model for the Real Estate Industry
Authors: Lussier Robert N.
Published: April 2011

The purpose of this study was to use the Lussier (1995) generic success versus failure (S/F) prediction model to develop a real estate industry specific model (S/F = f[industry experience, age, advisors, planning, capital]). Using logistic regression analysis, the Lussier model (p = .028) and the real estate agency model (p = .001) are significant predictors of business success and failure. The Lussier model accurately predicted 84 percent of the surveyed successful and failed matched pairs agencies as being successful or failed and the real estate model predicted 74 percent. The Lussier model explained 68 percent of the variance of contributing factors to success versus failure and the real estate model explained 56 percent. Implications are discussed.
IBBEA Implementation and the Relative Profitability of Small Banks
Authors: Nippani Srinivas , Washer Kenneth M.
Published: April 2011

The enactment of Riegle‐Neal IBBEA in 1994 encouraged bank mergers and acquisitions. Empirical evidence indicates that large banks benefited from IBBEA enactment. However, there is little, if any, evidence of the impact of the act on small banks’ profitability relative to large banks. This study examines the impact of IBBEA on the performance of small banks in the period preceding and following IBBEA implementation. Evidence is presented that indicates the return on assets of small banks was significantly less than that of larger banks in the post‐IBBEA period. This is contrary to the results of the pre‐IBBEA period when small banks’ profitability was competitive with and in some cases even better than large banks’ profitability. It is concluded that the enactment of IBBEA has placed small banks at a competitive disadvantage which could eventually lead to their demise.
Modeling Internet Operations Using Initial Public Offerings
Authors: Prasad Sameer , Porter David C. , Yu Linda
Published: April 2011

In this research we test the generalizability of an existing model for classifying information‐intensive services that can be globally disaggregated to Internet services. This categorization allows us to judge which types of Internet Initial Public Offerings (IPOs) are likely to have superior performance. Specifically, we hypothesize that Internet firms with higher information intensity, lower physical presence and lower customer contact needs will have a greater probability of generating larger risk‐adjusted returns. We test these hypotheses on 340 Internet IPOs and find partial support for the model. In particular, Internet firms with high information intensity and low customer contact need yield superior performance. However, firms with low physical presence underperform in our sample.