bluuebunny/crossref_metadata_2025 huggingface dataset:
The Fairly Good Economy: Testing The Economization Of Society Hypothesis Against A Google Ngram View Of Trends In Functional Differentiation (1800-2000)
Authors: Roth Steffen
Published: February 2016

The present article considers the economization of society a hypothesis rather than a fact. The hypothesis is tested against the results of a Google ngram viewer analysis of the most frequent function system references in the Google Books corpus for the years 1800-2000. Despite the remarkable growth figures in the English, French, and German language corpora as related to economic word frequency shares, the results suggest the rejection of the economization hypothesis. In fact, the growth trends of economic word frequencies are stopped in all of the three language areas, in none of which the economy ever reached a dominant position throughout the entire 200 years. The results give reason to assume that the idea of an economized society is an intellectual artifact rather than a fact. This fact is emphasized not to prove the marginal relevance of research in economic risks and benefits, but rather in terms of a suggestion to consider re-focusing research foci and drawing increased attention to function systems beyond the politico-economic double stars of social science. Maybe even the solution to the present economic crises is not in more, but rather in less attention to the economy.
Forecasting Inflation In China
Authors: Kamal Lillian
Published: February 2016

China is the worlds second largest economy, has sustained strong growth rates for an extended period of time, and is a prime destination for international investors. It is therefore important for researchers to correctly forecast key macroeconomic variables, such as economic growth and inflation within the Chinese economy. Forecasts of inflation, in particular, are important for domestic production, export competitiveness, business planning and for international investors. A section of the literature has assessed models to explain and forecast inflation within this literature, the role of deviations of output from equilibrium output (Phillips Curve models specified as output gap models) and the role of monetary policy in explaining inflation in China have been of great interest. This paper assesses atheoretic and structural models to explain Chinese inflation and tests the forecasting ability of these models. The findings show that money is not as important in explaining inflation as the output gap. The output gap approach also provides the best forecasts of inflation for the out-of-sample period 2003-2012. Models based on past information alone cannot beat the output gap models.
The Market For Quality
Authors: Keating Barry P.
Published: February 2016

There is a lingering suspicion that the market is unable to provide for quality or seeks some lowest common denominator of quality. This has led to the need for, according to some, government intervention to ensure quality in terms of minimum standards.Seldom observed or often only casually dealt with in the literature is the emergence, without coercion, of numerous market arrangements to provide consumers with information on product quality and/or help in processing that information. The market itself, in a number of ways, provides its own standards and enforcement of those standards. Explicit voluntary quality standards especially have received virtually no attention from academics. The most up-to-date industrial organization textbooks ignore the concept. Voluntary quality standards and the organizations which provide them, however, have not escaped the scrutiny of the Senate of the United States.
Fiscal Federalism In Stress
Authors: Swartz Thomas R.
Published: February 2016

On the morning of June 7, 1978, the U.S. awoke to discover that they were in the midst of a revolution. No, men and women were not called to arms. Cannons were not primed to be fired. Nor were ships, airplanes, or missiles prepared to be launched. This was not a bloody revolution. This was a Tax Revolution. Proposition 13 had passed in California. With this news, voters across American were called upon to follow Californias lead. They were called upon to pull in their belts, to get the fat out of the government, and to demand a smaller, more efficient public sector which would not compete with the interests of the private sector.
An Evolution Of Hospital Regulation: A Perspective
Authors: Boeh Jeanne M.
Published: February 2016

Hospital costs have remained a public concern during the last decade. As one delves into the discussion, a paradox quickly becomes evident; the hospital industry is becoming increasingly regulated while the economy in general undergoes deregulation.
Reinvestment Bias When Analyzing Mutually Exclusive Assets
Authors: Sweeney Robert J.
Published: February 2016

Capital budgeting decisions generally involve the commitment of resources in the current period to secure positive cash flows over time that generate a rate of return in excess of the cost of the funds invested. The most common techniques used to perform this analysis are the Net Present Value (NPV) and the Internal Rate of Return (IRR).Conceptually, these two techniques are substitutable; i.e. the resulting decision from a NPV analysis is identical to the decision from an IRR analysis. In practice, however, the NPV and the IRR can, on occasion, produce conflicting decisions. Specifically, when analyzing mutually exclusive assets the Net Present Value can support one asset while the Internal Rate of Return supports the other. The purpose of this paper is twofold; first, to highlight structural deficiencies in the conventional application of the NPV and the IRR, and second, to demonstrate a procedure to correct for these structural errors.
Relationship of Budgeting And Accounting Implication For Public Policy
Authors: Trebby James P. , Van Daniker Relmond P.
Published: February 2016

The purpose of this article is to discuss the relationship between budgeting and accounting and the need for reporting on the budget to actual comparison in terms of the public policy. Comparison information is necessary for both internal comparisons and external reporting that lead to policy decisions. However, both internal and external reporting are hampered by differences in perspectives, philosophies, bases and definition of the entity between budgeting and accounting.
Corporate Insider Trading: New Dimensions In Liability
Authors: George Barbara Crutchfield , Boss Maria
Published: February 2016

At first glance it may appear that the law which prohibits the use of material non-public information only applies to the technical insider (e.g., corporate directors and officers). However, the scope of the prohibition encompasses persons other than technical insiders. Because the statutory language in Section 10 (b) is broad in scope, and for that matter never mentions directly or indirectly the term insider trading, the United States Supreme Court will ultimately have to determine to whom the term insider can be applied. At the present time there is a conflict between the lower courts and the Securities and Exchange Commission (SEC), on the one hand and the U.S. Supreme Court, on the other, in the handling of insider trading cases: the lower courts and the SEC are expanding the scope of liability for insider trading, but this expansion has been rejected by the high court when it has been confronted with such expansion attempts.
ADR Accounting Principles Choice And The Market Reaction To Form 20-F
Authors: Senteney David L. , Gao Grace H. , Bazaz Mohammad S.
Published: February 2016

In this study, we conjecture that non-U.S. firms, choosing to be listed on the major U.S. exchanges, will incur the added costs associated with the supplemental disclosure requirements in order to get that information impounded in the home country equity share price via the ADR share price in the manner described by Fishman and Hagerty (1989). More specifically, we evaluate the equity share response to U.S.-listed ADR Form 20-F filing in a manner similar to Chen and Sami (2009, 2008) anticipating that the incremental disclosures will prompt ADR and equity security share responses. Unlike prior studies, we investigate whether the Form 20-F filings prompt U.S. dominant cross-market information flows from the ADR share market back to the home country equity share market proportional to the incremental Form 20-F information. We employ bivariate and single equation models of the cross-market ADR and equity security share response to the filing, controlling for the firm-specific Form 20-F accounting principles choice. Preliminary results indicate that both ADR and equity security share markets respond to the Form 20-F filing. There is a strong indication that the U.S. ADR share market response dominates the cross-market information flow driving the home country equity share market response. Furthermore, we find that the cross-market response to ADR Form 20-F filing is not equal across the three available accounting principle choices in either the ADR share market or the home country equity share market. Our results are consistent with U.S. GAAP conveying the most of new price relevant information, IFRS, and local accounting standards being informative but not to the same extent.
Elements Of Pharmacy Service And Satisfaction: Patient Versus Consumer?
Authors: Bonnal Liliane , Moinier Xavier
Published: February 2016

The objective of this paper is to identify the characteristics of what makes retail pharmacies able to guarantee and ensure better customer satisfaction. We have identified the core attributes of retail pharmacies as well as the factors that can contribute to better customer satisfaction in a regulated economic context (pharmacies being in a monopolistic situation regarding the sales of medicines). The aim of this analysis is to check if pharmacies customers behave as patients or consumers. If the factors linked to the consumption of pharmaceutical products have similar contributions to those noticed for traditional consumer goods (food, clothes and so on), pharmacists will be able to regard their customers as consumers. If it is not the case, the customers will be assimilated to patients, regarding pharmaceutical products as non-traditional consumer goods. The tetra-class model (Llosa, 1997) of factors contributing to satisfaction during a pharmacy service experience will serve as the tool for apprehending the role of different pharmacy characteristics in the satisfaction process. We found that French customers seem to behave more as patients than customers in pharmacies. Managerial implications can be deduced. In front of the counter, this research shows that merchandizing at the sales outlet has no effect on the patients satisfaction. However, it is worth noticing that the self-service area does contribute to consumer satisfaction. Behind the counter, pharmacies customers behave as patients when purchasing drugs; medecines still remaining a nontraditional product. French customers do not seem ready to purchase medecines from a self-service area. As a result, pharmacy owners can adjust pharmacy service elements to increase the satisfaction level of their customers.
Contributions Of Talented People To Knowledge Management
Authors: Scaringella Laurent , Malaeb Rola Chami
Published: February 2016

This study focuses on major issues of talent management (TM) with respect to knowledge management (KM). Under the effect of the economic paradigm shift toward a knowledge-based economy, multiple human changes occurred and new challenges related to human capital and talent management requires new research in the field. The purpose of the article is to identify what are the contributions of People hold a Job that require a High Level of Talent (PJHLT) to knowledge management in terms of contribution to the value chain, to the creation, to the collective effort, to long distance dynamics, to absorption, transfer and learning, to innovation, and to the relationship with customers. This article develops a hypothetic-deductive study on individuals self-perception regarding talent requirements at their jobs. We used quantitative data collection in the cluster of Grenoble in France specialized in micro-nano technologies and software. 111 organizations and 566 people contributed to the study. We identified three main findings. First, PJHLT are also more likely to be involved in exploration rather than examination. Second, PJHLT are more likely to be able to absorb, transfer, and learn within long-distance and knowledge-rich dynamics. Third, PJHLT are more likely to be involved in the creation of knowledge rather than in the use of knowledge, which may lead to frustration due to a perception of an unfair distribution of wealth. We identified limitations in our study related to the measurement of subjective variables, the lack of generalization, and the focus on the contribution as one aspect of talent. Addressing an original topic related to both talent management and knowledge management; we finally identify paths for further studies.
Sustaining Industry Leadership Through Technology Strategy Dimensions
Authors: Pelser Theuns G.
Published: February 2016

Strategic management is inter alia a process of managing a companys relationship with the environment. A critical concern of this discipline is optimising returns to the companys stakeholders over the long term. This means sustaining performance by balancing strategic investments in technology with short-term profitability. The main purpose of this study was to investigate technology strategies in widespread use in technology intensive industries and to explore their relationship to company performance. A non-probability, judgment sample of companies listed on the Johannesburg Stock Exchange (JSE) were taken. The study makes a contribution to the field of strategic management research by integrating the dimensions of several previous studies, to derive a more comprehensive taxonomy of technology strategy archetypes. Two distinct technology factors obtained with the analysis were proved to positively influence the company performance dimensions and were classified as product development intensity and technology focus factors. The results show that strategy choices can significantly affect company performance. It thereby indicates which of the underlying dimensions have the strongest relationship with company performance. From an industry perspective, the greatest significance of these findings may be that they accentuate the importance of technology policy in strategic management. The substantial differences in performance associated with the dimensions do not necessarily indicate that a given company should choose a particular technology strategy, but rather indicates that technology policy decisions may have a substantial leverage on a companys performance and should be analysed and exercised with care and deliberation.
Examining The Influence Of The Cultural Aspect Of Uncertainty Avoidance On Supply Chain Coordination
Authors: Albuloushi Nour , Algharaballi Eiman
Published: February 2016

The purpose of this study is to examine the influence of national culture on supply chain coordination. It investigates whether uncertainty avoidance (UA) influences information sharing (IS) trust and personal interest (PI), which are the main elements that influence supply chain coordination (SCC). This research adopts a survey methodology, followed by expert interviews used as a justification method for survey results. Survey data was collected from 138 international supply chain members, mainly from Middle East and Far East. A total of 11 people were selected as potential interviewees. These people worked in various departments in different companies and were of various nationalities. The findings revealed that the cultural aspect of uncertainty avoidance influences information sharing and trust. This study adds a new contribution to the literature on supply chain management (SCM), as noted in Burgees et al.s (2006) review of supply chain literature, studies that examine the social aspect of supply chains, including culture, have been neglected.
Using Accounting Metrics As Performance Measures To Assess The Impact Of Information Technology Outsourcing On Manufacturing And Service Firms
Authors: Agrawal Pushpa , Hall Steven C.
Published: February 2016

This study focuses on the information technology (IT) outsourcing decision and asks whether reported financial statement data can measure short-term financial effects of the IT outsourcing decision and thus add to the literature on the benefits of outsourcing. In this study we used accounting metrics derived from archival financial data to assess the impact of IT outsourcing on firms performance measures. In the sample of 79 firms from 1986 to 2009, there were 45 firms in the manufacturing sector and 34 firms in the service sector. The comparative study between manufacturing and service sectors will help identify where the higher potential of outsourcing impact lies. Firms performance is measured over a two-year period, one year before and one year after outsourcing decisions were made. For performance measures, we used cost efficiency, productivity, profitability, growth, cash management, and market ratio metrics. Using accounting metrics we show that IT outsourcing has a favorable short-term impact on manufacturing firms cost efficiency, productivity, and cash management. At the same time outsourcing the IT function has little favorable impact on service firms short-term performance measures.
Achieving Relational Objectives Through Sponsorship
Authors: Caemmerer Barbara , Mogos Descotes Raluca
Published: February 2016

With growing awareness of the importance of establishing good relationships with immediate stakeholder groups the scope of sponsorship broadens. Management objectives concerning sponsorship are now often either commercial or relational in nature. As most studies focus on the assessment of the economic effectiveness of sponsorship activities this research investigates how sponsorship can aid in the achievement of a relational objective, specifically the development of citizen commitment towards a public authority. Questionnaire data from 237 spectators of a publicly sponsored sports event were collected and analysed. The findings suggest a rational model of sponsorship effectiveness and support congruence theoretical considerations. The strongest determinants of commitment towards the sponsor are positive attitudes towards the sponsorship activity, the belief that public sponsorship is seen as beneficial for the region. Further, positive attitudes towards the sponsorship depend on whether citizens perceive the sponsorship activity to be a waste of financial resources. This corroborates the idea that sponsorship activities with relational objectives are elaborated on the normative belief whether tax money should be used to sponsor an event. Public sector bodies should also pay attention to explicitly communicate the reasons and benefits of the sponsorship activity in order to enhance perceived event-sponsor congruence. This study explains the dynamics in the sponsorship model that impact on the achievement of relational objectives and identifies managerial implications on how to manage sponsorship activities in a public sector context.
Commodity Trading Advisor Indexes And Alpha Generation Relationships
Authors: Mackey Scott
Published: February 2016

This research investigates the trend following relationships between Commodity Trading Advisor (CTA) Indexes and a widely known trend following proxy Index using a database covering 21 years with 24 CTA, Managed Futures, and Hedge Fund (that can trade CTA-like) Indexes. The trend following relationships are tested using a modification of the Methodology employed by Baesel, Gonzalez-Heres, Chen, & Shin (2012). A unique Alpha adjustment is proposed to include the traditional Alpha plus or minus a reward or penalty for displaying relationships to the larger positive and negative returns of the trend following Index proxy. Results for the first sample period show evidence of at least some association of the returns of the trend following proxy to those of the individual CTA Indexes; however, most of the Indexes showed little to no statistical support for much traditional or adjusted Total Alpha generation. For the second sample period the regression results show that almost none of the Indexes had a statistically significant association with the monthly total returns of the trend following proxy Index. Instead, generally all of the Indexes showed the impact of the larger monthly returns of the trend following proxy Index such that the Alpha adjustments overall were positive and, on average, generated approximately 50% of the Total Alpha of the individual CTA Indexes.
The Overconfidence Of Boards And The Increase In CEO Pay Over Time
Authors: Nagel Gregory L.
Published: February 2016

This paper is based on Robert Shillers view that hiring of external CEOs is excessive due to boards overconfidence and causes reduced firm performance. External hire selections provide all CEOs with bargaining power. I show excessive external hiring provides an alternative explanation (excessive bargaining power) for the upward trend in CEO pay since 1945 that is largely consistent with the observed facts. A survey of the direct evidence on external hires performance provides uniform support for Shillers view after accounting for research supporting alternative views that only includes CEOs who survive. After adjusting for survival bias, the survey results consistently suggest that firms predominantly realize greater performance from internal promotion, all else equal. Overall, this papers findings increase support for succession through internal executive promotion, and suggest that institutional investors can expect greater bargaining power and wealth by advocating for internal hires more often.
International Standards For Exporting Firms: Evidence From China
Authors: Sun Ying , Ouyang Wenjing
Published: February 2016

The existing literature provides mixed evidence of the impact of ISO 9000 international standards on country level export growth. Since it is costly to adopt the international standards, it is important to understand how these standards increase exports at the firm level. This paper examines the effect of ISO 9000 standards on firm-level export growth in China, which of all countries has the highest number of firms adopting ISO 9000 standards. With the assortative matching methodology, we first examine the factors related to the choice of applying for the certification. After controlling for this endogeneity issue, our results show that obtaining ISO 9000 standards significantly increases firm exports. Furthermore, we find low-tech firms and non-state-owned enterprises are more likely to benefit from adopting the standards. Overall, our study provides important guidelines for firms applying for the international quality standards.
Intraday Index Volatility: Evidence From Currency Adjusted Stock Indices
Authors: Jalbert Terrance
Published: February 2016

A recent research stream develops currency adjusted stock indices. The analysis in previous papers is limited to daily closing data. This paper extends the existing body of literature by examining tick data. We examine tick data from 2002 through 2013 for eight indices. In general, results show the Dollar Index adjusted indices display significantly lower variation than the unadjusted indices. Correlation between the Dollar Index and unadjusted stock indices is negative. Both raw and Dollar index adjusted indices display departures from intra-tick symmetry. The results also show that Dollar Index changes explain as much as fifteen percent of wealth changes.
The Influence Of Higher Moments And Non-Normality On The Sharpe Ratio: A South African Perspective
Authors: Van Heerden Chris
Published: February 2016

Although the general assumption is that daily and monthly return data are normally distributed (Aparicio & Estrada, 2001), the correct statistical distribution of returns must first be established (Linden, 2001), as it constitutes one of the elementary building blocks that will ensure accurate financial analyses (Taylor, 1986). The assumption of normality is also critical when constructing reference intervals for variables (Royston, 1991). By evaluating the pre-, during and post- 2007-2009 financial crisis periods, this paper found that non-normality can be present in all data frequencies, especially in higher data frequencies. Further evidence also illustrated that the deviation from normality escalated over the crisis period and remained higher after the crisis, compared to the pre-crisis period. By comparing the traditional Sharpe ratio with adjusted versions, based on Gatfaouis (2012) methodology, this paper accentuates that the presence of non-normality and higher moments can influence the Sharpe ratios performance rankings.
Stock Liquidity, Feedback Prices, And Asset Liquidity: Evidence From The Tunisian Stock Market
Authors: Loukil Nadia
Published: February 2016

This paper explores how feedback prices influence firms' investment on asset liquidity through stock liquidity. Using a sample of the Tunisian listed firms between 1999 and 2010, empirical results confirm that stock market liquidity plays a significant role in investment decisions and show that high stock liquidity encourages firms to invest more on asset liquidity to overcome feedback prices (negative and positive feedback). Therefore, the papers findings demonstrate the link between stock markets and the current business activity of the firm. Furthermore, the results indicate how stock liquidity strengthens feedback prices effects on managerial decisions and choices, which highlights the importance of stock liquidity.
Do Managers In Chinese Family Firms Learn From The Market? Evidence From Chinese Private Placement
Authors: Li Wanli , Gao Weiwei , Sun Wei
Published: February 2016

Recent empirical papers report managers learning in merger and acquisition (M&A) decisions and family control is central in many countries. Does learning exist in family firms financing decisions? Based on the announced private placements from Chinese family firms, we investigate the relation between managers final decisions in family firms and the market reaction to the announcement. Our analysis suggests that a non-linear relation exists between managers learning and family control. Managers generally learn from the market when making final decisions but family involvement can reduce this probability. Supplementary testing indicates that managers in family firms with low ownership are less likely to learn from the market than those in family firms with high ownership. Further analysis suggests that corporate governance can influence managers learning. Family member participation in purchasing the placed shares and serve as the top managers can make manager learning less likely when the ownership is low. Independent directors in family firms dont play their due role in supervising the behavior of managers and large shareholders.
Executive Compensation And Ownership Structure
Authors: Ben Hassen Rim , El Ouakdi Jihene , Omri Abdelwahed
Published: February 2016

The objective of this paper is to highlight the impact of ownership discrepancy and type (managers, families, institutions) on executive compensation.Basedon a sample of French listed firms and using panel data regressions, the results show that capital concentration (Jensen 1986) negatively affects both the level of total executive compensation and the probability of use of stock option incentive plans. This confirms our theoretical alignment hypothesis. Moreover, the results show no evidence of the existence of a significant effect of ownership discrepancy on managerial compensation.Institutional shareholders are likely to encourage the use of stock option incentive plans and managerial ownership positively and significantly influences the level of total and fixed compensation. Family shareholding negatively affects executive compensation variables.
Family Control And The Value Of Cash Holdings
Authors: Boubaker Sabri , Derouiche Imen , Hassen Majdi
Published: February 2016

The present study investigates the effects of family control on the value of corporate cash holdings. Using a large sample of French listed firms, the results show that the value of excess cash reserves is lower in family firms than in other firms, reflecting investors concern about the potential misuse of cash by controlling families. We also find that the value of excess cash is lower when controlling families are involved in management and when they maintain a grip on control, indicating that investors do not expect the efficient use of cash in these firms. Our findings are consistent with the argument that the extent to which excess cash contributes to firm value is lower when dominant shareholders are likely to expropriate firm resources. Overall, family control seems to be a key determinant of cash valuation when ownership is concentrated.
Calculating Employee Compensation Using An Economic Principle
Authors: Jaiprakash Puneet
Published: February 2016

Although methods for determining the compensation of a new employee are standardized, those for adjusting an employees compensation over a period of time are not well established. This paper develops an intuitive method for calculating the minimum amount by which an employees compensation must be adjusted taking into account changes in economic conditions since the start of employment. It then translates this result into a worksheet that computes compensation using employee specific informationstarting salary, length of employment, and frequency of compensation adjustments.
Maximizing The Impact Of Improvement Efforts On Customer Satisfaction
Authors: Shin Dooyoung , Kalinowski Jon , Kim Sung , Kim In-Jae
Published: February 2016

When a customer satisfaction survey consists of a large number of attributes (questionnaire items), determination of critical attributes that would make the biggest impact on customers overall satisfaction could be important, but very tedious and time-consuming process. Even though the critical attributes are identified, the improvement efforts toward these attributes are often misdirected and wasted because of the mismatch between the improvement efforts and the critical needs of the affected customer group. This paper introduces a method with which improvement efforts can be tailored to the needs of the customer group who could bring the most impactful influence on improving customer satisfaction. For the critical attribute considered, the percentage of customers who assigned a specific satisfaction rating is obtained, and the cumulative percentages of customers are examined and the target group of customers to whom the improvement efforts would be tailored is identified. The piecewise linear approximation method is also discussed to estimate the non-linear relationship of the attribute, which also may help determine the target customer group. The overall shape of the piecewise function and the slopes at the line segments may be used in determining which attributes are satisfaction-maintaining or satisfaction-enhancing, and where and how the improvement efforts should be focused in order to maximize the effectiveness of the improvement efforts.
Exploring Technological Capabilities To Resuscitate The Zimbabwean Manufacturing Sector
Authors: Siwadi Patience , Pelser Theuns
Published: February 2016

There is widespread agreement that manufacturing concerns require a level of technological capabilities to be able to compete in a globalized economy. This study sought to examine the technological capabilities necessary for the resuscitation of the Zimbabwean manufacturing sector. The sector has been under a lot of pressure mainly from cheaper and sometimes better quality products hailing from international players. With antiquated machinery and having been closed in during and after sanctions, the sector understands the need for up scaling their TCs. The study used data from a non-probability judgemental sample of 77 companies across 6 subsector who had capacity utilization of up to 80%. Return on Assets (ROA) was used to measure performance and was the dependent variable. A total of 14 independent variables were regressed using a bivariate and multivariate regression analysis. Five distinct technological factors proved to positively influence company performance. The significance for industry is that the 5 variables clearly hover around increase in technological capabilities and the support of human resources and information systems to go with it and directs strategists to what they need to recover in the Zimbabwean economy.
Multiple Large Shareholders And Owner-Manager Compensation: Evidence From French Listed Firms
Authors: Amdouni Sarra , Boubaker Sabri
Published: February 2016

The objective of this study is to examine the relation between complex ownership structures and managerial compensation. More specifically, we examine the impact of the owner-managers excess control and the presence of multiple large shareholders (MLS) on the owner-managers compensation. Using a sample of French publicly listed firms, the results reveal several important points. First, the owner-managers compensation increases with the owner-managers excess control. This finding indicates that managers use their power to increase their pay, hence expropriating minority shareholders. Second, the presence of MLS decreases managerial opportunism and prevents owner-managers from diverting corporate resources for their own benefit. Hence, MLS play an important monitoring role.
Mandatory Audit Firm Rotation and Audit Quality
Authors: Kim Hakwoon , Lee Hyoik , Lee Jong Eun
Published: February 2016

Recently, regulators and policy makers who witnessed the global financial crisis during 20072009 began considering a variety of ways to enhance auditor independence and financial reporting quality, ultimately aiming at investor protection. Since the enactment of the SarbanesOxley Act of 2002 (SOX), the Mandatory Audit Firm Rotation (MAFR) requirement has once again received significant attention from regulators and policy makers around the world, including the European Union (EU) and the U.S. Public Companies Accounting Oversight Board (PCAOB). In this paper, we investigate whether MAFR enhances audit quality in Korea. We find that under MAFR, newly rotated auditors are more likely to issue first-time going-concern audit opinions to financially distressed firms during their initial (first-year) financial statement audit compared with under the Voluntary Audit Firm Change (VAFC). Moreover, firms audited by mandatorily rotated new auditors have less discretionary accruals and higher accrual quality than those audited by voluntarily switched new auditors during the initial audit engagement. These results of earnings quality are more pronounced for firms that received a first-time going-concern audit opinion during the initial financial statement audit under MAFR. Taken together, the findings suggest that MAFR produces better audit quality than the VAFC. Further, our study provides implications for regulators and policy makers of countries considering the adoption of MAFR.
Do Industry Specialist Auditors Add Value in Mergers and Acquisitions?
Authors: Lee Ho-Young , Mande Vivek , Park Jong Chool
Published: February 2016

This study examines whether the stock market returns surrounding announcements of mergers and acquisitions (M&A) are higher for acquiring firms audited by industry specialists. External auditors are uniquely positioned to provide assurance on the financial statements of their acquiring clients both before and after an acquisition. Also, an important aspect of due diligence in M&A transactions is the external auditors review of the accounting records, financial statements, internal controls and information systems of the target company. Using a sample of 4,283 M&A announcements between 1988 and 2011 in the United States of America, we report the results from our main regressions, controlling for all the bidder traits and deal characteristics. We examine incremental effect of audit firm specialization on cumulative abnormal returns. We also measure the effect of audit firm industry specialization in a reduced sample of 3,946 acquisitions after removing all non-Big N auditors. We use Heckmans (1979) two-step procedure to ensure that announcement period return to the size of the audit firm is not driven by the determinants related to auditor choice. Consistent with the idea that industry specialists provide higher quality assurance and possibly superior M&A advisory services, we find that the stock market returns are higher when acquiring firms are audited by industry specialists.
Internal Control Weakness and Stock Price Crash Risk
Authors: Hong Siwoon , Lee Jong Eun
Published: February 2016

Considering that stock price crashes are positively associated with opaque financial reporting and that effective internal control over financial reporting is essential for reliable and transparent financial reporting, it is thus vital to establish and maintain effective internal control over financial reporting. In this paper, we investigate the impact of internal control weakness on stock price crash risk, using the disclosures under Section 404 of the 2002 SarbanesOxley Act. We find that material weakness in internal control over financial reporting increases information asymmetry by producing unreliable and/or opaque financial reporting, subsequently resulting in a stock price crash. Our study provides evidence that ineffective internal control over financial reporting is an indicator of future stock price crashes.
Determinants Of, And Barriers To, Market Orientation And The Relationship With Business Performance Among SMES
Authors: Dubihlela Job , Dhurup Manilall Roy
Published: February 2016

Expansion, diversification, greater choice, market share, profits and increased competition are the overarching forces that drive organisations to embrace marketing concepts such as market orientation. Various researchers assert that market orientation is a vital marketing concept for the performance of businesses and for small and medium enterprises (SMEs) there are no exceptions. The study examines the relationship of the determinants and barriers to market orientation and the influence of market orientation on business performance among SMEs in a developing country. This cross-sectional study made of a quantitative survey design. The target population comprised 273 owners/managers of SMEs in the Vaal Triangle, South Africa. The results revealed that the determinants of market orientation exhibited a strong influence in market orientation. Market orientation in turn showed strong positive relationship with business performance. Barriers to market orientation showed strong negative relationship with market orientation. The study identified the constructs that foster or discourage market orientation, and the contribution that market orientation can have on business performance for SMEs. SMEs owner/mangers are encouraged to consider the market orientation constructs that positively influences the performance of their businesses.
The Effect Of Social Pressures On CEO Compensation
Authors: Nagel Gregory L. , Leggett Denise M.
Published: February 2016

We find that social pressures have a positive effect on CEO compensation. Social pressures come from frequent interactions with other CEOs, wealthy people, and social elites in the local area; from attending industry events; and from comparing luxury homes. Pay premiums associated with social pressures (social premiums) are calculated after incorporating the effect of other known pay determinants. We show that social premiums are lower when the physical distance is longer and social interactions less frequent. Our results hold in a pay change regression. They are also robust to adding state fixed effects and firm fixed effects. Practically, our research suggests that social pressure contributes meaningfully to every rising CEO pay. This understanding enables policy makers, large institutional investors, and boards to use alternative incentives (other than increasing pay and regulations) to effectively address CEOs need for status.
The Viability Of A Private Central Facility For Mortgage-Related Securities
Authors: De la Vina Lynda Y. , Betty Winfield
Published: February 2016

The concept of a mortgage exchange has emerged as a topic of current discussion and debate. This study presents the results of a national survey of fund managers and advisors which attempted to determine the feasibility of a privately sponsored central facility for the creation and marketing of mortgage-related securities. The study discusses the methodologies of the research and presents the conclusions, The survey results suggest that such a central facility would be viable if the sponsors possessed experience in real estate lending, have a willingness to maintain direct contact with funds, are able to reduce commissions on transactions, provide the role of master servicer on the underlying mortgages, and structure the securities according to certain specifications such as ratings in terms of risk class, call protection, insurance, liquidity in a secondary market, geographic diversification, and inflation indexation.
An Empirical Analysis Of Lending Decisions And Report Purchases Of Privately Held Middle Market Companies
Authors: Pillsbury Ceil Moran
Published: February 2016

Several experimental studies have found that the auditors report did not significantly influence bank lending decisions. This study employs actual data to test whether the level of reporting service influences lending decisions of Privately Held Middle Market (PHMM) companies. The results indicate that the report type significantly influences at least one critical aspect of the lending decision the amount lent. Further, the report type was found to be strongly related to the amount of collateral and the size of the company. In addition, descriptive evidence is provided on what type of reporting services are purchased by PHMM companies and what type of accounting firms are providing those services.
Currency Futures: Some Implications For International Financial Management
Authors: Ray Russ
Published: February 2016

This paper tests the contemporary currency futures market for interest-rate parity, purchasing-power parity, market efficiency, and hedging effectiveness. The study finds that the currency futures markets is a highly efficient, hedging-effective market exhibiting significant degrees of interest-rate parity and (longer-term) purchasing-power parity. Finally, the study infers from such findings some practicable policy tools for international cash management, multi-country capital budgeting, currency forecasting, and the risk management of foreign exchange exposure.
Response Pressure And Uninformed Responses To Factual Survey Questions
Authors: Schneider Kenneth C. , Johnson James C.
Published: February 2016

This article examines the impact of follow-up techniques (designed to increase the survey response rate) on uninformed responses to factual survey questions. Such questions of fact can be used as filters to measures a respondents base of information, knowledge or experience on a topic prior to measuring his/her opinions on that topic, but only if uninformed responses are less likely to be given to the factual filter questions than to the opinion/attitude questions. Previous research suggests that response pressure (including follow-up contact) tends to exacerbate the uninformed response rate to opinion or attitude questions. However, the research reported here suggests that is not so with factual questions; follow-up contract does not result in increased levels of uninformed response to questions of fact.
The Impact Of AACSB Accreditation On The Value System Of Close To The Student Programs
Authors: Kemper Robert E. , Bradley Michael P.
Published: February 2016

AACSB accreditation is intended to be a measure of the quality of the output of Colleges of Business for their constituents. The AACSB has used surrogates to measure outputs in the past. This essay is a commentary on the effects that measuring inputs instead of outputs has had on the central value systems of accredited colleges. The power of the AACSB over the value system of an entire organization is illustrated with an actual experience.
Administering Departmental Databases
Authors: Scudder Richard A.
Published: February 2016

Coping with the expanding demands for information placed upon an organization is becoming more and more difficult. Individual units within organizations often feel these demands more keenly than others. The mainframe systems run by organizations are often overburdened and backlogged with requests, and thus are unable to respond quickly to such demands. Creating and maintaining a departmental database utilizing current technology can be an appropriate solution to such problems, but require careful design and implementation.
The Influence Of Position Tenure On CEO Work Roles
Authors: Castaldi Richard M.
Published: February 2016

Mintzberg proposed a contingency theory in which he posits that environmental, job, person, and situational variables affect the work of a manager. This study examined an untested proposition of the theory that position tenure, a situational variable, affects the relative importance of CEO work roles. Results suggest there are clear differences in the relative importance of three work roles that can be attributed to position tenure. An evolutionary pattern of work role importance based on CEO tenure also surfaced. Moreover, two recommendations for executive development programs are proffered based on these findings.
Making Acquisitions Work: Problems of Organizational Integration
Authors: De Noble Alex F. , Gustafson Loren T. , Hergert Michael
Published: February 2016

The United States is in the midst of the greatest merger and acquisition boom of all time. Despite the intense level of activity, the track record for mergers and acquisitions is poor. Recent research from the academic community suggests that the problems of integrating separate firms into a single entity may be responsible for this poor performance. The purpose of this article is to apply a conceptual framework of post-merger integration to a recent merger and to investigate the implications for improving the merger management process.
Recruitment Source As A Factor Affecting Turnover & Performance In Hospitals
Authors: Pesek James , McGee Charles
Published: February 2016

This study examines the methods by which staff are recruited by hospitals A brief review of the literature on recruitment source effectiveness is presented. Data on 375 employees from 3 hospitals are used to examine the relationships between recruitment sources, turnover, and performance. The results reveal that employee referrals are one of the more effective recruitment sources for hospital staff.
Test Of A Tax Loss Trading Rule Applied To Options For 1976-1983
Authors: Gregson Terry
Published: February 2016

Test Of A Tax Loss Trading Rule Applied To Options For 1976-1983
Computers In China: Where The Chinese Are; Where They Want To Be
Authors: Coll Joan H.
Published: February 2016

The purpose of this paper is to detail the extent of computer activity in mainland China: hardware, software and endues, and to examine the ramifications such activity has with respect to the USA. Much of the information is based on the authors findings during a recent mission to China. The message is that China possesses a burgeoning computer industry, but one which is at our own 1965 level. The ten years of Cultural Revolution anarchy are responsible for this backwardness. However, Deng Xiaoping, Chinas present leader, is determined that China will take its place with industrialized nations. This means increased opportunity for the US computer industry and the prospect of economic competition in the computer arena.