bluuebunny/crossref_metadata_2025 huggingface dataset:
Total Insurance Inc.: Application Of ABC Management Concepts For Evaluation Of Sales Teams
Authors: Sedaghat Ali M. , Sherman A. Kim , Carroll Thomas
Published: March 2016

Total Insurance, Inc. (TII) is an instructional case to expand students’ understanding of potential benefits of ABC beyond traditional manufacturing applications rather than as a technical ABC application exercise.  It does not require complex calculations, yet it allows instructors to discuss why companies may adopt some ABC concepts and demonstrates the process by which they create and develop the information to build the system.  Jack White was the CEO of TII, a successful independent insurer.  Several major insurance providers, such as Travelers, Erie, and The Hartford, rely on independent agents around the nation to sell and service their policies.  The company acted like a broker between the insurance providers and the customers, but it is truly an agent of the insurance provider in each transaction.  The company handled $100 million in premium volume, mostly from commercial insurance ($86 million) with very different apparent performances from their sales force teams. The teams of one or two sales producers had one to five other employees and drew differently from the common resources of the firm. He was having trouble distinguishing which of his sales teams were contributing most to his bottom line.  He particularly needed this information in order to help the sales teams to improve their own productivity.  White, recalling an accounting course he had taken in his Executive MBA program, decided to investigate the ability of ABC analysis, as applied in that course toward evaluating customers, to gather data on cost drivers and resource use to determine the productivity of his sales teams.
The Evolution Of The American Brewing Industry
Authors: Warner Alfred G.
Published: March 2016

This case provides industry and historical background to firm specific cases in the brewing industry. It also stands alone as an industry evolution case. This case is intended for MBA or upper level undergraduate classes in strategic management.
Bank Regulatory Reform In The United States: The Case Of Goldman And The Volcker Rule
Authors: Holowecky Elizabeth , Murry Ashley , Staneva Violeta , Fuglister Jayne
Published: March 2016

This case is an ethics case.  The focus is on corporate governance in a major Wall Street bank, Goldman Sachs.  The case discusses what Congress has done in the past and what it may do in the future to prevent breaches in ethics relating to proprietary trading.  In response to the current financial crisis, Congress has proposed many changes for the banking industry and the proposals have gained momentum because of the SEC’s accusation of fraud at Goldman Sachs.  One piece of proposed legislation, endorsed by President Barack Obama and former chairman of the Federal Reserve, Paul Volcker, is based on the Volcker Rule.  This rule would return the banking industry to the decades of the Glass-Steagall provisions of the Banking Act of 1933.  The Volcker Rule would reinstitute the separation of commercial and investment banking.
Recontextualizing the Case Study
Authors: Cleveland James S. , MacDonald John A.
Published: March 2016

Case studies are very difficult to use with students who will not read them or whose reading skills are too poor to absorb the details of the case necessary to use it in a class discussion or paper.  This paper explores a way to write cases that will engage such students, be memorable to them, and prompt lively discussion and achievement of learning goals.  It is based on the work of Walter J. Ong and involves centering cases around a context with which the student can identify personally.  The case was designed to facilitate ethical discussions in a senior finance course, but the techniques are applicable to any discipline at any level.
Conflict Between Doing Well And Doing Good? Capital Budgeting Case Study - Coors
Authors: Kwok Julia S. , Rabe Elizabeth C.
Published: March 2016

Considering the paradox of drinking what you drive and driving what you drink, Coors Brewing Company’s conversion of spilt beer into ethanol is interesting and timely because of today’s intensified need for alternate fuels. The decision of investment in a sustainable project was present in 1996 as well as today. It is evident that Coors considered sustainability before it became popular. Their ethanol project allows an examination of several business issues that pertain to finance, accounting, operations management and environmental management students. This case has provided students sufficient information to practice the whole capital budgeting process which includes identifying and forecasting cash flows, applying capital budgeting tools and performing sensitivity and scenario analysis. Finance students will focus on cash flows and the capital budgeting aspect of the case. The potential reduction of waste disposal cost and generation of revenues from ethanol production will also be of interest to cost accounting students who focus on cutting costs in the production process. From a management standpoint, the Coors Brewing Company and Merrick’s ethanol project serves as an example of how a company can make a profit while engaging in environmentally safe projects. This illustrates the coexistence of company performance and ethicality.
Developing Crisis Management Skills Through A Realistic Case Scenario
Authors: Budden Connie B. , Budden Michael C.
Published: March 2016

Increasingly, managers and public relations officials seem to be at the forefront of newscasts as a variety of organizational crises develop.  Business educators attempting to teach appropriate crises management knowledge and develop skills needed to address such a crises should incorporate realistic case scenarios to challenge students.  Such realistic cases should appropriately address communication and management needs related to crises that may develop.  This paper presents a realistic case that has been used to instill crisis management skills in a business public relations class.
Northland Preparatory Academy: An Expansion Controversy
Authors: Bain Craig E. , Mohrweis Lawrence C.
Published: March 2016

This paper deals with a real case in a real situation.  Northland Preparatory Academy (NPA) is a college-preparatory charter school located in Flagstaff, Arizona.  In 2004, the school board had to decide whether to expand.  Their expansion decision was driven by (1) a desire for additional programs in fine arts and music, (2) a desire for a gymnasium for extra curriculum activities, athletics, and related programs, and (3) a belief that the expansion would help with NPA’s retention problem at the high school level.   The school’s principal and several of the school board members were leaning toward constructing a new building.   However, there was a minority group on the school board which was adamantly opposed to any expansion and the taking on new debt.  Bill Johnson, the school’s principal, had been asked by the Chairman of the school board to develop three years’ worth of projected financial statements and forecasted cash flow statements assuming that expansion did take place.  In addition, Bill was challenged to present information as to whether a new bank loan or taking out a new bond would be best for the school.
Focus Factors: Exploring Cross-Cultural Business Dynamics Of Making Deals And Building Relationships In India
Authors: Clem Andrew H. , Mujtaba Bahaudin G.
Published: March 2016

The world houses a grand spectrum of people and cultures constantly changing and renewing themselves. Some of these peoples are historic and rich with culture, while others are relatively new in history and evolving every day. These cultures are not self-reliant, nor are they self-communicating.  Spread out across every continent, the various cultures and countries of the world are morphing and forming relationships at a rate faster than ever before. As technology continues to flourish, markets and economies continue to become intertwined as well. Cultures and business practices are often vastly different. A serious effort from global business leadership needs to be placed on learning about culture as business deals are formed and negotiated. India is an Asian country containing both a rich history, as well as an extremely significant presence in the current global economy. By presenting a general overview of India, a progressive look at more focused concepts can then be explored. Concepts, such a global cross-cultural leadership, can be looked into as well as how cultures compare and contrast to the business behaviors within India. Furthermore, a broad overview of Geert Hofstede’s research on India is explored for reflection and application. One of the more important focus factors that will be displayed is how negotiation plays into inter-cultural business dealing with India. By focusing on cross-cultural leadership and behavioral dynamics of Indian culture, a greater chance of success in relationship-building and business partnership opportunities can be solidified.
Valuing An Emerging International Technology Company
Authors: Zimmerman John
Published: March 2016

The requirements of Financial Accounting Standard Board (FASB) 142 provide an excellent opportunity to examine various financial valuation methods used to determine a company’s value.  Under FASB 142, goodwill and intangible assets with indefinite useful lives are no longer amortized, but instead tested for impairment at least annually in accordance with the provisions. Any impairment loss has to be measured as of the date of adoption and recognized as the cumulative effect of a change in accounting principle in an organization’s first interim period. The impairment test requires an accurate and fair valuation of the asset in question.  This case is based upon the valuation dilemma faced by Integrated Silicon Solution (NASDAQ: ISSI), a publicly traded international technology company, in late 2008. ISSI had made several acquisitions and carried substantial goodwill. Since ISSI was publicly traded, a public market value was available but the financial crisis of 2008 caused the company to consider other methods, as is allowed under FASB 142. The case uses both the income and comparable market approaches to arrive at a fair value, and this value is used to determine if impairment for the goodwill the company carried on its balance sheet existed.
Environmental Risks: Doing Business In China
Authors: Ethridge Jack , Marsh Treba , Bunn Esther
Published: March 2016

Planning and conducting the audit of financial statements involves understanding the entity and the environment in which it operates.  First and foremost this requires identifying the risks faced by the entity.  Identifying these risks can be a complex and difficult task since the auditor needs to not only understand the entity’s risk process but also independently understand the risks facing the firm.  Tackling this task will involve a comprehensive review of the external and internal factors affecting the business.  It is possible many identified business risks are related to financial reporting risk and ultimately to audit risk.  Therefore, the auditor must understand the linkage between risks, controls and the audit.  The objective of this paper is to examine the risks faced by U.S. companies conducting business in China.  This paper attempts to identify a wide array of risks faced by U.S. companies to demonstrate how important it is for the company and the auditor to understand the business environment.
Andrew Ford, D.D.S.: A Sole-practitioner Professional Practice Case
Authors: Cornell Robert M. , Warne Rick
Published: March 2016

As the U.S. economy continues to shift from manufacturing to service-oriented jobs, students will benefit from exposure to realistic scenarios that service providers may experience. Andrew Ford, D.D.S. is based on a real-life situation facing many single-practitioner professional dental and medical practices. Many professional health care providers have little business experience or training and instead rely on bankers, accountants, and bookkeepers to record accounting entries and provide sound business advice. In this case, students assume the role of a friend/consultant called upon to help determine why the dental practice is not performing at the same level as similar practices. Students encounter a situation in which an overworked medical professional supposes that an employee might be embezzling money or there is some other problem the professional cannot identify, thereby causing low profitability. In this role, the student finds that the professionals accounting records are sparse, making it difficult to precisely evaluate the operation of the practice. The student is asked to analyze the provided information and make suggestions for improving the profitability of the practice. The case also provides students exposure to basic regression analysis a consultant might use to assess cost behavior. This learning case is appropriate for both undergraduate and graduate managerial accounting classes.
Case Study: Horseplay In The Workplace
Authors: Lucas John J.
Published: March 2016

This HRM case examines the concept of Horseplay in the workplace as clerical employees were playing popcorn basketball. This case is based upon an actual event that occurred in a business unit of a Fortune 500 company. The case study can be used for any undergraduate or graduate level human resource management class.
Society Membership Trend Determinants For Sustainability: An Analysis In Insurance Industry
Authors: Choudhury Askar , Jones James
Published: March 2016

This study investigates the impact of age based gender effect on CPCU society membership trend. Trade associations, membership societies, and other similar groups/unions are no different than any for-profit organizations during different economic cycles, specifically during an economic downturn. When economic condition gets tough, membership related expenses can prove difficult to attain and may cause descent in the membership trend. However, demographic factors, such as, age groups and genders of society members are also factors that impact the process of society membership trend. In our analysis, after controlling for younger age groups, higher age groups are found to be instrumental in impacting the process of trend of CPCU societys membership. This suggests that gender influence on the process of society membership trend is age dependent. Furthermore, gender effect is substantially higher for older age groups in comparison to younger age groups.
Supreme Court Guns Down State Firearm Restrictions, The Chicago Way
Authors: Reville Patrick J.
Published: March 2016

It was February 14, 1929. The United States was still experiencing the Roaring Twenties. The stock market had not yet crashed, and Prohibition, that noble experiment, was nearing the end of a tumultuous decade. A group of five apparent law enforcement personnel, some in uniform, some not, paid a visit to a warehouse on the north side of Chicago. Illegal/bootlegged booze trafficking was the ostensible target. When the visit was over, 6 men lay dead, and the apparent lone survivor, rushed to the hospital where he declined to elaborate on the incident, promptly passed away. The departed were part of the George Bugs Moran organization, while the visiting police contingent was actually made up of members of the Al Scarface Capone mob. The event would go down in history as The St. Valentines Day Massacre, and the main method of communication at the warehouse was the Thompson submachine gun. In the aftermath of that notorious gangland rubout, and other instances of outlaw use of machine guns, the automatic weapon was virtually taxed and legislated out of legal existence. Along with the abolishment of legal automatic weapons, restrictions on all types of firearms became a cause and a reality. Yet, in 2008, a group of five black-robed members of a Washington, D.C., organization took aim at the outright restriction on handguns in the District of Columbia. The result was a rubout of the D.C. restrictions.(1) Then, two years later, the same Gang of Five donned their black robes, and, in essence, paid the City of Chicago a visit regarding its ban of firearms. The outcome was a bloodbath that may end up being remembered by Gun Control enthusiasts on the same level as the St. Valentines Day Massacre.(2)
Transformational Decision Making: A Corporate Success Story In Purchasing
Authors: Galbraith Diane D. , Webb Fred L.
Published: March 2016

The purpose of this case study is to provide a pedagogical teaching tool for undergraduate business students to fully comprehend the importance of the business management functions of planning, organizing, leading and controlling businesses. This case is inspired by events in the history of Rockwell International Corporation. As a major conglomerate struggles to transform itself over a period of eight decades, Rockwell provided a challenging problem for students to solve.
Sustainable Markets: Case Study Of Toyota Motor Sales, U.S.A., Inc.
Authors: Manna Dean R. , Marco Gayle , Khalil Brittany Lynn , Meier Sara
Published: March 2016

The traditional definition of sustainability calls for policies and strategies that meet societys present needs without compromising the ability of future generations to meet their own needs (1). Sustainability is a concern in private and public sectors all over the world; it is an issue that resonates with people in all age ranges, income levels, and geographic locations. The main idea of sustainability is reduce, reuse, and recycle. People and organizations alike must consider every possible effect from the decisions they make in regards to the environment. With over 600,000,000 passenger cars on the road in the world, and over 50,000,000 passenger cars built each year, it is imperative that automakers make sustainable decisions (2). It is not just the large number of vehicles in the world that is cause for concern, but the immense amount of resources needed to manufacture, transport, and fuel them. Automakers must consider the impact that each car has during every stage of its life cycle, in addition to their responsibility to society (in terms of the environment, education, and safety) and the impact of their suppliers. This case study is designed to discuss the background of Toyota and highlight the companys current actions in regard to sustainable marketing; a comparison will also be made to the sustainable efforts of Honda and Subaru.
Climate Prosperity: A Greenprint For Southwest Florida
Authors: Heinzman Joseph , Sneeden Ken , Rhodes Katie , Avola John , Blake Frank , Fiedler Tammy , Zakhvatayev Volodymyr
Published: March 2016

Southwest Florida has been chosen as one of the 8 pilot regions for the Climate Prosperity project. One of the main goals in Southwest Florida is to create and attract jobs to help energize the Southwest Florida economy now as well as future generations. Climate change has edged its way to the top of federal, state, and local agendas. Scientists and leaders across the nation are taking numerous steps to prepare for the positive and negative consequences of a new weather era so that ecosystems, human life, and infrastructure can adapt and survive.
Competitive Entry In Ontarios Deregulated Power Generation Industry
Authors: Wang Xiaoting , Yang Jun
Published: March 2016

In this paper we investigate the issues involved in the deregulation of an electricity market. The paper focuses on efficiency considerations, comparing the gap between the socially efficient outcome and that achievable by a market. We model this problem with two-sided uncertainty: the uncertain market demand and the uncertain cost of production. In each case, we find the social optimum and the equilibrium outcome of the deregulated market. Conditions when deregulated industry cannot generate the socially optimal number of firms are identified. The relationship between market demand, the degree of risk-aversion of private firms, and the equilibrium number of firms is investigated.
The Federal Reserve Banks New Monetary Policy Tool
Authors: Gordon David
Published: March 2016

The Federal Reserve Bank (FED) plays a vital role in the US economy. The roles and functions of the Fed are discussed here. This paper also offers an explanation of the traditional tools the Fed uses to conduct monetary policy. Open market operations are explained. The important role of the discount rate is discussed. The legally required reserve ratios are also explored. This author believes that the Fed has recently created a new tool. This tool is the payment of interest on demand deposit accounts at the Fed. This new tool is explained and its ramifications explored. The functions of monetary policy are also expanded upon in this paper.
Untangling The Carried Interest Controversy
Authors: Goldberg Martin A. , Wnek Robert E. , Rodricks Presley , Kruth Cynthia
Published: March 2016

Carried interest is a form of deferred compensation payable to managers of hedge funds organized as investment partnerships. There are two tax components of this compensation that are favorable to the manager. First, income taxes are due only when amounts are received rather than when this interest is granted, and second, this income is eligible for the lower tax rates of capital gains and dividends. Special tax treatment has been criticized by some as being an unfair benefit for income that is essentially compensation for services, while proponents of continuing this special treatment point out policy reasons for continuing it, emphasizing characteristics of carried interest that warrant treatment such special treatment. Legislative changes have been proposed but not enacted into law, and there are different alternatives that warrant consideration for the future.
Transforming Leadership In Collegiate Admissions
Authors: Major Amanda , Bell-Haynes Janel , Walton Eric
Published: March 2016

The 21st century has seen the consequences of short-term leadership strategies, and the results have left little certainty, making long-term planning challenging. However, without a globally oriented, long-term, ethical strategy, some closed systems fail to adapt to feedback, risking failure. Universities face this challenge, and long-term planning is particularly troublesome for university admissions departments. To overcome these challenges and build on identified strengths, these departments must undergo self-evaluation and reconsider their leadership decision-making processes. In this study, we assess the operations and needs for stronger decision-making for our service learning partner, a public universitys admissions departments. Based on the identified needs, we offer suggestions for ethical decision-making in public collegiate admission offices. We identify needs through SWOT analysis involving an exploration of admissions offices decision-making challenges. Their strengths and weaknesses as well as the opportunities and threats are explained in the context of internal obstacles and external barriers, respectively. Then we establish a framework for understanding their ethical paradigm. We frame their challenges in the context of the bounds of human capacity for rational and psychological decision-making as well as the influence of politics, a capitalistic society, and technological innovations. From the analysis, we present transformational suggestions based on decision-making strategies that practically address the current leadership decisions faced by the higher education admissions office.
Reconciling Business Cents With Business Sense: An In-Depth Analysis Of Corporate Social Responsibility Policies On Corporate Dynamics And Organizational Stakeholders
Authors: Scanlon Madeline Marco
Published: March 2016

The idea of corporate social responsibility, CSR, has evolved into more than a companys philanthropic pursuits; it has become a meaningful tool to engender organizational goodwill from stakeholders, as well as solidify market share. When implemented correctly, CSR policies align organizational altruistic intentions with strategic planning to better serve society and the bottom line. When implemented incorrectly, CSR policies foster negative connotations with corporate incentives. An effective CSR policy integrates the consumers desire for sustainable business models with the organizations desire to maximize efficiency and return. Based on a myriad of factors, CSR policies also have peripheral advantages that can be explored to determine employee perception, job satisfaction, organizational commitment, and consumer advantage.
A Note On Job Market Conditions And Students Academic Performance
Authors: Paul, II Chris W. , Ruhland Joseph S.
Published: March 2016

This paper presents a model of student effort and resulting grade performance under varying labor market conditions. Following previous studies that have found a negative relationship between the expected income and grades by discipline, we extend the analysis to the effect of changing labor market conditions on student effort and the resulting changes in the average grades. The empirical results support the theoretical models conclusion that reduced employment opportunities result in higher average grades by discipline.
SECs Push Back On Adoption Of IFRS In The United States
Authors: Yallapragada RamMohan R. , Roe C. William , Toma Alfred G.
Published: March 2016

For a long time, the United States (US) Generally Accepted Accounting Principles (GAAP), are considered as the gold standard for financial reporting by companies all over the world. With the advent of globalization of capital markets and the proliferation of the multi-national corporations (MNCs), there emerged a movement for developing a uniform set of accounting standards applicable to companies all over the world in order to achieve uniformity in financial reporting. The movement is initiated by the International Accounting Standards Board (IASB) which started to issue International Financial Reporting Standards (IFRS). Over the last decade, four alternative methods have been considered by the Securities and Exchange Commission (SEC) for a possible adoption of IFRS in the US: outright adoption, convergence, endorsement, and condorsement. Recently, the SEC appears to be taking a step backwards in its policy towards adoption of IFRS. The process involves prohibitive costs to US companies which are already suffering under the ill effects of a great recession. The adoption of IFRS would also impose enormous burden on the academia, the accounting profession, and the regulatory apparatus of the SEC. Also, there is a question as to whether a single set of international accounting standards applicable to all countries is even desirable. The FASB and the IASB have been working on convergence since 2002. The SEC began studying the pros and cons of adoption of IFRS since 2010. But, in its latest staff report, issued in July 2012, the SEC did not include any final policy decision as to whether IFRS will ever be adopted at all in any manner in the US. Furthermore, the SEC, in its report, made it very clear that turning over control of US accounting standard-setting authority to the IASB is out of question. This paper presents the various efforts made so far in aligning US GAAP with the IFRS and the future outlook regarding adoption of IFRS in the US.
The Impact Of Deregulation On The Character Of A Firms Board
Authors: Wollan Patricia L.
Published: March 2016

This paper analyzes the impact of deregulation on board structure by comparing the boards of electric utilities before and after the passage of the Energy Policy Act (EPACT) using a unique hand-collected data set. The primary focus of the study is on changes to the boards' character, determined by the background and expertise of the directors. The results show that electric utilities change their board structure in response to their new operating environment. Boards are smaller and more independent in the later period. Also, even though the number of outside directors stays the same, there are two notable changes in the character of these directors. The number of executives from large firms and the number of directors with political backgrounds are both significantly greater after the passage of EPACT. Overall, the results are consistent with Williamson's hypothesis that firms will change the composition and character of their board in response to a change in the firm's operating environment.
Source Of The Multifractality In Exchange Markets: Multifractal Detrended Fluctuations Analysis
Authors: Gunay Samet
Published: March 2016

In this study, we analyzed the multifractality and the source of multifractality of the returns of GBP/USD, EUR/USD, USD/JPY and USD/CHF currencies. In the examination of multifractality we performed the Multifractal Detrended Fluctuation Analysis (MF-DFA). Also, we used shuffled and surrogated data that was derived from the Statically Transformed Autoregressive Process (STAP) method to determine the source of multifractality. According to the results, GBP/USD returns have monofractal features, whereas EUR/USD, USD/JPY and USD/CHF returns have multifractal behaviours. The tests concerning the source of multifractality indicated that the reason of multifractality for EUR/USD and USD/JPY returns is fat-tails of the probability density function of returns, whereas the reason of multifractality of USD/CHF returns are both long memory and fat tails. Also we have seen that there is an ambiguous relationship between the liquidity of the currency market and multifractality.
Post-Issue Operating Performance Of Nasdaq IPOs
Authors: Ghosh Arvin
Published: March 2016

In the ’90s bullish stock markets, it was the IPO which created the bubble of ‘excessive exuberance’, particularly in the technology-heavy NASDAQ market.  In our study we have taken a fair sample of NASDAQ IPOs issued during 1990-2000 in order to examine the post-issue operating performance of these IPOs.  We have found that during 1990-1995, the mean post-issue one-month return was 1.67%, the mean six-month return was 4.28%, and the mean one-year return was 5.23%, respectively.  This could be compared with the results for the 1996-2000 period when the mean one-month return was 3.29%, mean six-month return was 16.96%, and the mean one-year return was 19.97%, respectively.  As for the debt/asset and debt/equity ratios for the same two periods, the former was 11.98% and 15.23% for the two periods, and the latter ratio was 5.38% in 1990-1995 and 3.13% in 1996-2000.  This clearly shows that the NASDAQ bubble was mainly created by the equity issues, not by the issuance of debt securities.  Using the multiple regression equations, we also have found that only the first-day closing price was consistently and negatively associated with annual returns.  Obviously, the phenomenon of initial underpricing played a big role in determining the annual return of the NASDAQ IPOs during the last decade in the U.S. securities markets.
A Macroeconomic Analysis Of Inventory/Sales Ratios
Authors: Bassin William M. , Marsh Michael T. , Walitzer Stefanie
Published: March 2016

Metzlers (1941) research on the relationship between inventory and business cycles initiated serious interest in inventory behavior and its effect on the behavior of firms. A flurry of related research took place in the following two decades. Research of the time clearly demonstrated that, at a macro level, the inventory behaviors are significant features in business cycles. One measure of inventory behavior introduced and analyzed was the inventory-to-sales ratio. We continue to believe that understanding of inventory behavior at both the macro and microeconomic levels is a prerequisite to understanding factors that determine a firms success, and that analysis of the inventory-to-sales ratio is important component of inventory behavior. The U.S. Department of Commerce and other government and private institutions track this ratio and report regularly. Financial analysts use both a company's trend and its comparative value within a sector to make investment decisions.
Funding New Business Ventures: Differences In Minority And Non-Minority Family-Owned Business Access To Start-Up Capital
Authors: Smith-Hunter Andrea , Nolan James R.
Published: March 2016

Access to start-up capital is important in starting any business venture. In addition, the source of that start-up capital can sometimes affect the prospects for success in the new business venture. This study examines the differences in the source of start-up funds between male minority and male non-minority family business owners. The findings indicate that male minority family business owners more often use credit cards and gifts from family as a source of start-up funds whereas the male non-minority family business owners rely more often on bank loans. The authors propose a more extensive survey of a larger sample of family business owners in order to further identify differences in source of start-up capital between male minority and male non-minority family business owners.
Chinas International Financing Strategies
Authors: Foote Paul Sheldon , Zhu June
Published: March 2016

In order to finance rapid economic growth in the 1990’s, Chinese companies tried different strategies for raising capital in international capital markets.  The strategies ranged from the use of depository receipts to listings on major stock exchanges.  The lessons learned from the experiences of the Chinese companies could be valuable for managers from many other countries seeking to raise capital in international capital markets and to investors seeking some foreign investments for their portfolios.  In addition, there are many implications for researchers in international business and economics fields, such as: regulatory policies regarding overseas listings (registration procedures, foreign exchange control), initial public offering (IPO) processes for foreign companies, investment returns with and without international financing, efforts to narrow the differences between accounting standards, international investment banking and accounting services, and World Trade Organization (WTO) changes.  While Chinese companies have been active in many capital markets, the focus of this study is upon the activities of Chinese companies in American capital markets.
An Examination Of The Economic Impact Of Pension Rate Reductions On Future Pension Expense, Earnings, And Cash Flows: A Simulation
Authors: Blankley Alan I. , Cottell Philip G. , McClure Richard H.
Published: March 2016

In this paper, we develop a two-period analytical model of pension cost, which allows us to simulate pension expense and the associated earnings impact. These 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. Some plan sponsors have not been faced with pension plan losses for over a decade or longer, having enjoyed reduced or eliminated funding holidays as a result of high returns to pension plan assets. Given the current economic climate, however, these results (boosts to earnings due to pension credits and reduced or eliminated funding requirements) may change abruptly. In fact, several authors in the popular financial press have speculated on the impact of such fundamental changes in pension assets, liabilities and estimates. We simulate the potential results for two periods in the future based upon percentiles drawn from a sample of 1,116 firms taken from Compustat. We compute projected pension expense for the 25th percentile firm, the median firm, and the 75th percentile firm by varying the discount rates, expected rates of return, and actual asset return assumptions. Our results indicate that while the pension expense effect is large in both periods across small, mid-sized and large firms, large firms show the greatest increase in pension expense. Interestingly, however, the earnings impact is the smallest for large firms in both periods, and is not material in period one for both large and mid-sized firms. It is material for small firms. Firms with small pension plans appear to have the greatest earnings drag both one and two years into the future. In period two, all firms face significantly greater expense and earnings reductions, although again, smaller firms face the greatest impact. 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 form pension rate changes, but also a potential cash flow impact as well.
Individual Financial Analysts Contribution In Earnings Per Share Forecasting
Authors: Giullian Marc A.
Published: March 2016

Financial analysts are among the most influential group of users of financial accounting information. The majority of existing accounting research concerning financial analysts focuses on aggregated analysts' earnings forecasts rather than individual analysts' forecasts. Studies in accounting have documented the superiority of aggregated analysts' earnings forecasts relative to computer models. This is in contrast to the robust result from years of psychology/judgment & decision making (JDM) research that human predictions are inferior to computer model predictions. Humans can make a significant contribution to accurate forecasting in spite of cognitive limitations. Some skills people bring to bear are cue identification, rapid adaptability to environmental changes and the evaluation of qualitative factors. Computer models offer consistency and significant computational power. This research documents the incremental predictive ability of both individual financial analysts and computer models in forecasting earnings per share. It also provides evidence that both individual financial analysts' and computer models' incremental predictive ability varies between industries.
Transborder Surface Movements Of Nafta CommoditiesTruck vs Rail
Authors: Spraggins H. Barry , Ozment John
Published: March 2016

The boom in NAFTA trade has created a corresponding surge in the demand for surface transportation capacity to move the goods.  So far, trucks have provided the major capacity to meet the requirements.  Intensive lobbying efforts are being made for authority to utilized longer and heavier trucks along certain U.S. highway corridors to move the imports and exports from and to Canada and Mexico.  In addition, a serious debate has erupted over allowing Mexican trucks to travel significant distances within the U.S.  The surge in surface NAFTA based commodity movement via truck has serious economic, social and infrastructure consequences.The paper examines the surface transborder export-import flows between the U.S. and Canada and the U.S. and Mexico.  Delineating these flows by the types of commodities, origins and destinations, and modal movements is an essential ingredient in any attempt to determine if the transportation infrastructure is being and will be utilized in optimum manner.  Specifically, the paper finds that the overwhelming percentage of commodity movements is by truck regardless of distance traveled with very little moving by rail.  The paper looks at the potential for commodity adaptability and flows to rail movement.  Environmental considerations are also integrated into the trade-offs.  Cost and service of trucking versus rail are the key ingredients to the conclusions.
Inter-Company Investments Between Affiliates Of Multinational Enterprises: Applying The Substance-Over-Form Doctrine To Distinguish Equity From Debt
Authors: LaRue David W. , Thompson Steven C.
Published: March 2016

The classification of a financial instrument as “debt” or as “equity” is crucial in applying a wide range of income tax provisions.  “Interest” expenses incurred on “debt,” for example, are deductible in computing a firm’s taxable income, whereas “dividends” paid on the firm’s outstanding “equity” are not.  “Interest” paid by a U.S. corporation to a foreign creditor is generally not subject to U.S. withholding taxes, whereas “dividends” paid on stock held by a foreign shareholder are typically subject to U.S. withholding taxes that range from 5% to 30% of the gross amount of the dividend paid.  And the list goes on . . . .  Not surprisingly, these disparities in tax treatment have inspired a plethora of schemes, many of them successful, designed to disguise equity investments as “debt.”  The urge to do so is perhaps nowhere more intense than in situations where the “debt” of a U.S. corporation is held by a foreign sister corporation located in a tax haven country.  Interest paid or accrued on debt would be deductible in computing the U.S. corporation’s U.S. taxable income, and would thereby permanently reduce the debtor’s U.S. tax liability.  The interest income earned by the foreign creditor would be exempt from both U.S. withholding taxes and income taxes in the foreign tax haven country.  This interdisciplinary case was developed from the facts and circumstances before the U.S. Tax Court in litigation that resulted from the government’s assertion that $975 million in “loans” made by a wholly owned Dutch subsidiary of Laidlaw Transit, Ltd. to several of Laidlaw’s U.S. subsidiaries were in substance “equity.”   As in most debt-versus-equity cases, the stakes were high:  Laidlaw’s U.S. subsidiaries had deducted over $133 million of intercompany “payments” made to their Dutch sister corporation as “interest expense” and the IRS was suing to recover $52 million in back taxes (plus interest and penalties).  This case integrates three disciplines – tax accounting, financial accounting, and finance -- in an easy-to-comprehend, yet rich setting appropriate for general management, finance, and accounting audiences.  It invites students to thoroughly explore the substance-over-form doctrine as it applies to the debt-versus-equity issue, together with many of the tax, financial, accounting, and economic ramifications that flow from an instrument’s classification.  It also provides students with an opportunity to identify the ethical issues that attend the formulation and implementation of many tax minimization strategies and to identify factors that separate legal “tax avoidance” from criminal “tax evasion.”
Testing Beckers Efficient Marriage Market Hypothesis And Its Implications For Spouse Selection And Marital Transfers In India
Authors: Dalmia Sonia
Published: March 2016

This paper constructs an empirical model of spouse selection based on Becker’s efficient marriage market hypothesis to examine how equilibrium sorting takes place in marriage markets in India. It finds that education of the groom and age of the bride has the largest effect on matching behavior in India. More importantly, it finds that marital transfers from brides and their families to grooms and their families increase the likelihood of women marrying men of similar type.
An Examination Of The Consistency Of Risk Differentials Between Historical Measures Of Risk And The Risk Implied By Economic Value Added
Authors: Jones Wes , Randolph George Lowry
Published: March 2016

The corporate world is continually striving to identify an effective means of evaluating management performance.  Corporate concern over this issue stems from both the perspective of managerial compensation and maximizing shareholder value.  Some companies have used such measures as returns on assets, equity, or investment.  Some have relied on other measures like inventory management, trade credit management, or cash management.  The common ground shared by these measures is that they rely on accounting measures of firm activity.  The weakness of using such means to measure firm performance is that they are driven by a rule-based system, and anyone with sufficient understanding of the rules can manipulate the information to present the picture of the firm’s performance in a way that may not track with the reality of the firm’s performance.  This does not suggest that managers will engage in such numerical fiddle-dee-dee; rather, it suggests that the opportunity to do so exists, and must somehow be incorporated into the shareholder’s interpretation of the reported performance.  This situation leaves firms in the position of needing a better performance measure by which to evaluate the work of its management.  One alternative performance measure offered to meet this need was introduced in the early 1980's by Stern Stewart and Company and is known as Economic Value Added or EVA®.(Ehrbar, 1998)  The basic premise underlying EVA is an effort to encourage managers and other employees to think and act as entrepreneurs rather than employees.
Return The Sunk Costs Are Sunk Concept To Principles Of Economics Textbooks
Authors: Davis William Young
Published: March 2016

The purpose of this paper is to establish a compelling case for the inclusion of the profoundly important “sunk costs are sunk” concept in all principles of economics textbooks.  First, the paper will provide examples of the concept's relevance in political/military decisions.  Second, it will supply business examples of where failure to recognize this concept has led to nearly disastrous results.  Third, it will provide numerous examples of faulty decisions by individuals resulting from the non-application of the concept.   Finally, the paper will provide a psychological explanation for the common failure to properly incorporate the concept into logical and rational decision-making.
Managerial Performance Measures And Shareholder Value Creation: The Case Of Latin American Companies
Authors: Sandoval Eduardo E. , Parraga Arturo Z. Vasquez
Published: March 2016

In this paper we examine whether Economic Value Added (EVATM) is a good predictor of shareholder value creation (SVC) for a group of Latin American companies. We also examine whether EVATM is a better predictor of SVC than competing accounting-based measures of managerial performance. The relationship of these predictors to SVC is paramount in a study of factors influencing shareholder value creation such as the compensation of a firm’s executives. Our results show strong correlations between EVATM and SVC. They also indicate that EVATM outperforms competing measures even after controlling for the potential effects that these last metrics have on SVC. Moreover, they reveal different levels of SVC sensitivity to changes in EVATM across countries and significant differences in EVA’s association with SVC across industries.
Advertising, Market Share, And Profitability In The Greek Consumer Industry
Authors: Ventoura–Neokosmidi Zoe
Published: March 2016

An empirical investigation of the relationship between advertising to sales ratio, market share and firm profitability was carried out. Cross section analysis was used over 36 companies that produce fast moving consumer goods, for the year 2002. This paper finds that market share has a positive impact on firm profitability. In contrast to our expectation, the influence of market share is greater than that of advertising to sales ratio. To further examine the contribution of each explanatory variable after the other has been included in the model, the partial F?test was used. The obtained results verify the cross section analysis results.
The Black-Scholes Model Guideline For Options Course As Taught At Notre Dame University - Lebanon
Authors: Naimy Viviane Y.
Published: March 2016

This paper presents the methodology used for Notre Dame University’s finance students to explain and explore the Black-Scholes model without going through the complexity of mathematics to model random movements or through stochastic calculus. I will name and develop the steps that I follow in order to allow students to properly use the Black-Scholes model and to understand the relationship of the model’s inputs to the option price while monitoring the risk via delta and gamma hedging.