Research with Faculty

Our core research informs and impacts academic theory, business practice, and public policy. Our pedagogical research focuses on helping university professors deliver high quality educational experiences for their students. At the Trinity University School of Business, our faculty are teachers and scholars. We conduct research on a broad range of topics related to accounting, decision sciences, finance, international business, management, and marketing.

 

Accounting

In this study, we use a survey instrument to obtain perspectives from almost 800 auditors about present-day audit workloads and the relationship between audit workloads and audit quality. Our findings indicate that auditors are working, on average, five hours per week above the threshold at which they believe audit quality begins to deteriorate and often 20 hours above this threshold at the peak of busy season. Survey respondents perceive deadlines and staffing shortages as two of the primary reasons for high workloads and further believe that high workloads result in decreased audit quality via compromised audit procedures (including taking shortcuts), impaired audit judgment (including reduced professional skepticism), and difficulty retaining staff with appropriate knowledge and skills. We also find that auditors’ job satisfaction and their views on the audit profession are impacted negatively by audit workloads, particularly when the workloads are perceived as being heavy enough to impair audit quality. Overall, our findings provide support for the PCAOB’s concern regarding excessive workloads and suggest that the primary drivers of workloads (i.e., deadlines and staffing problems) might be the actual “root cause” of workload-related audit deficiencies.

Article Citation:

Julie S. Persellin, Jaime J. Schmidt, Scott Vandervelde, and Michael S. Wilkins. 2016. Auditor Perceptions of Audit Workloads, Audit Quality, and the Auditing Profession. Working Paper, available for download at SSRN here.

This study examines the extent to which audit clients successfully engage in internal control opinion shopping activities and whether audit market competition appears to facilitate those activities. Regulators have long been concerned about the impact of both audit market competition and opinion shopping on audit quality. We adopt the framework developed in Lennox (2000) to construct a proxy to measure the tendency that clients engage in internal control opinion shopping activities. Our empirical results suggest that clients are successful in shopping for clean internal control opinions. In addition, we find evidence that internal control opinion shopping occurs primarily in competitive audit markets. Finally, our results indicate that among auditor dismissal clients, opinion shopping is more likely to occur when dismissals are made relatively late during a reporting period and when audit market competition is high. Our findings have implications for the current policy debate regarding audit quality and audit market competition. 

Article Citation:

Nathan J. Newton, Julie S. Persellin, Dechun Wang, and Michael S. Wilkins. 2016. Internal Control Opinion Shopping and Audit Market Competition. The Accounting Review, Vol. 91 (2), pp. 603-623.

Gaps in international law have resulted in transnational corporations bearing little or no direct responsibilities for their actions in host countries (De Brabandere, 2010; Slawotsky, 2012). The void in international regulation of corporate behavior cedes the area to the host country itself or to non-governmental organizations (“NGOs”). The intent of this paper is not to provide an examination of international law as it pertains to transnational business entities (Ratner, 2001; Bantekas, 2004; Mushkat, 2010; Alvarez, 2011, Stewart, 2013), or even to examine the role of the NGO in providing oversight (Adeyeye, 2010, Backer, 2010), as both have been examined extensively. Rather, this paper takes a multi-disciplinary approach to examine the unique characteristics of one of the most prominent NGOs, the UN Global Compact (UNGC), to provide insight into ways in which organizational identity theory and salience might enable it to develop its strengths and overcome its weaknesses in providing the oversight and accountability that international law cannot currently provide.

Article Citation:

Katherine Lopez, Julie S. Persellin, and Linda Specht. 2014. Can the UN Global Compact Fill the Gap in International Corporate Law? Southern Journal of Business and Ethics, Vol. 6, pp. 130-140.

This case requires students to apply accounting and ethical decision-making within the context of a potential land impairment decision. Students are required to research the relevant professional literature and provide appropriate FASB Codification references and International Financial Reporting Standards cites as they investigate the significant uncertainties that frequently are associated with valuation and impairment analyses. Students also are required to evaluate the ethical implications of the decisions that could be made regarding the necessity of impairment. The case provides an opportunity for students to extend their research and financial accounting abilities, to consider the consequences associated with a set of potentially reasonable accounting alternatives, and to ;begin to appreciate how the significant uncertainties that are present in many accounting and auditing situations require consistent technical and ethical decision-making. The case could be used in Intermediate Accounting I as well as in undergraduate and graduate Auditing or Ethics classes. It has already been used by over 300 undergraduate and graduate students at Trinity University and two large public universities.

Article Citation:

Julie S. Persellin, Michael K. Shaub, and Michael S. Wilkins. 2014. Arachnophobia: A Case on Impairment and Accounting Ethics: Issues in Accounting Education Vol. 29 (4), pp. 577-586.

Corporate accounting failures and regulatory proceedings that led to the enactment of the Sarbanes–Oxley Act of 2002 increased the scrutiny of auditors. We investigate whether these events resulted in a change in auditor behavior with respect to going concern reporting. Generally speaking, we find that smaller auditors became more conservative while Big 4 auditors became more accurate. Specifically, smaller auditors issued more going concern opinions to both failing and non-failing clients post-2001, reducing their Type II misclassifications at the expense of increased Type I misclassifications. However, Big 4 auditors decreased their Type I misclassifications with no corresponding increase in Type II misclassifications. Thus, our findings suggest that increased auditor scrutiny resulted in performance improvements in the area of going concern reporting primarily for larger auditors. For smaller auditors, improved going concern accuracy for subsequently bankrupt clients came at the cost of more going concern opinions being issued to subsequently non-failing clients.

Article Citation:

Linda Myers, Jaime Schmidt, and Michael S. Wilkins. 2014. An Investigation of Recent Changes in Going Concern Reporting Decisions Among Big N and Non-Big N Auditors. Review of Quantitative Finance and Accounting, Vol. 43 (1), pp 155-172.

This case provides students a unique opportunity to examine and reflect on the challenges of auditing in today's global environment. Students examine a real-world billion dollar plus embezzlement and fraud at Satyam Corporation, an international company based in India and previously trading on the New York Stock Exchange. The case focuses on auditors' responsibilities related to obtaining and evaluating audit evidence, particularly as it relates to confirming cash and receivables. It also explores the quality control responsibilities related to audit procedures performed by foreign affiliates of a large international audit firm. The case illustrates the role of culture in performing an audit in accordance with auditing standards issued by the U.S. Public Company Accounting Oversight Board. Additionally, case details provide opportunities for class discussions and foster students' critical thinking skills on other auditing topics such as audit risk and planning, related party transactions, tone-at-the-top, and internal control deficiencies. By using a foreign issuer to explore these issues, the case highlights both the technical and international challenges of performing auditing procedures.

Article Citation:

Veena L. Brown, Brian E. Daugherty, and Julie S. Persellin. 2014. Satyam Fraud: A Case Study of India's Enron. Issues in Accounting Education, Vol. 29 (3), pp. 419-442.

Notions of the "fairness" of tax laws are usually based upon wherewithal to pay, with a tax judged as "fair" if the taxpayer is able to pay it. This paper takes an alternate approach, examining the ethical implications of a "True Flat Tax", a "Modified Flat Tax", and a proposed "Fair Tax" from the perspectives of two ethical frameworks: utilitarianism (i.e., the fairness of the outcome of the tax) and deontology (i.e., the fairness of the intent of the tax). While the results of the deontology analysis indicate that all three models have ethical worth based on their intention to simplify compliance and create a fair system; and the results of the utilitarian analysis indicate all three models have desirable consequences that include reduction of complexity, compliance costs, and collection costs, the analysis must also consider the utilitarian philosophy that seeks the greatest amount of good for the greatest number of people. Only the Modified Flat Tax proposal has the potential to affect all taxpayers equally after consideration of proportionate sacrifice and marginal utility.

Article Citation:

Katherine Lopez and Linda Specht. 2013. The Taxman Cometh - Will He Be Fair? A Comparative Ethical Analysis of Proposed Tax Reforms. Southern Journal of Business and Ethics, Vol. 5.

We examine the relationship between auditor competition and the likelihood of financial restatements that occur as a result of failures in the application of generally accepted accounting principles (GAAP). Policy makers and audit market participants have expressed concern that the current level of auditor competition is low, resulting in a negative impact on audit quality. However, we find that restatements are more likely to occur in metropolitan statistical areas (MSAs) that have higher auditor competition. The association between audit market competition and restatements is statistically and economically significant. Our finding of a positive relationship between the likelihood of restatement and audit market competition is relevant to the ongoing debate regarding audit quality and the concentration of audit markets.

Article Citation:

Nathan J. Newton, Dechun Wang, and Michael S. Wilkins. 2013. Does a Lack of Choice Lead to Lower Quality? Evidence from Auditor Competition and Client Restatements. AUDITING: A Journal of Practice & Theory, Vol. 32 (3), pp. 31-67.

This paper experimentally examines whether the likelihood of a Public Company Accounting Oversight Board (PCAOB) audit engagement inspection can moderate the negative incentives created by short-term stock option compensation on audit committee members' decisions. Prior research suggests that short-term option compensation may weaken audit committee member objectivity and oversight quality (Archambeault et al. 2008; Magilke et al. 2009; Keune and Johnstone 2010); however, holding individuals accountable for their actions has been shown to result in less self-serving decisions (Rus et al. 2012). Ninety-two Executive M.B.A.s, serving the role of audit committee members, evaluate a hypothetical audit case that involves a dispute between management and the external auditors, with likelihood of PCAOB inspection and type of compensation manipulated between participants. Results confirm prior research on option compensation, finding that participants show less support for recording a proposed income-reducing audit adjustment when compensated primarily with short-term options rather than cash. In addition, a significant interaction reveals that PCAOB inspection likelihood moderates the effect of compensation form, such that option compensation only causes audit committee members to not recommend recording the proposed adjustment when PCAOB inspection likelihood is low. These results allow stakeholders to gain valuable insights into ways in which loyalties that have been potentially misaligned may be realigned by regulatory requirements aimed at improving the corporate governance process.

Article Citation:

Julie Persellin. 2013. The Influence of PCAOB Inspections on Audit Committee Members’ Judgments. Behavioral Research in Accounting, Vol. 25 (2), pp. 97-114.

This study investigates whether auditor quality and audit committee expertise are associated with improved financial reporting timeliness as measured by the duration of a financial statement restatement's “dark period.” The restatement dark period represents the length of time between a company's discovery that it will need to restate financial data and the subsequent disclosure of the restatement's effect on earnings. For a sample of dark restatements disclosed between 2004 and 2009, we find that companies that engage Big 4 auditors have shorter dark periods than companies that do not engage Big 4 auditors. We also find that companies with more financial experts on the audit committee have shorter dark periods, but only when such financial expertise relates specifically to accounting. Finally, companies with audit committee chairs that have accounting financial expertise provide the most timely disclosures, as the dark periods for these firms are reduced by approximately 38 percent. Our results suggest that both auditor and audit committee expertise are associated with the timely disclosure of restatement details.

Article Citation:

Jaime Schmidt and Michael S. Wilkins. 2013. Bringing Darkness to Light: The Influence of Auditor Quality and Audit Committee Expertise on the Timeliness of Financial Statement Restatement Disclosures. AUDITING: A Journal of Practice & Theory, Vol. 32 (1), pp. 221-244.

 

Business Administration

It is unclear in theory and practice whether knowledge-based international new ventures ( KINVs) can develop into global operating firms within a limited period of time, how and with what IP strategies they can achieve such a success. Conducting an in-depth case study of Wacom, the global leader of graphical tablets, we address the process of this KNIV becoming a global player by adopting intellectual property strategies. We track its market expansion using longitudinal trademark data, patent data, and information on establishing foreign subsidiaries and financial performance. Our findings show that Wacom has achieved large scale global operations in lead and lag markets by integrating low–and high–commitment entry modes, and appropriate intellectual property strategies.

Article Citation:

Q. Li, Deli Yang, T. Yu, and S. Wu. 2015. From International New Ventures to Global Operating Firms: Market Expansion and Intellectual Property Strategies. Studies in the Science of Science 36 (8) 161-172

This research explores marketing students’ emotional reactions to classroom encounters. We identify what types of critical incidents lead to specific emotional outcomes. The study included a sample of 1,208 marketing undergraduates. Findings confirm the viability of the taxonomies identified by Swanson and Davis (2000). We expand their framework to include the emotions of outrage and delight. Results confirm the conceptual distinctions among satisfaction, delight, dissatisfaction, and outrage, while suggesting that the absence of those factors that contribute to students’ dissatisfaction and outrage will not necessarily lead to their satisfaction and delight. Suggestions for responding are identified and associated with specific incident types.

Article Citation:

Scott Swanson, Carol Azab, and Charlene Davis. 2015. A View from the Aisle Revisited: Delight and Outrage in the Classroom. Marketing Education Review, Vol. 25 (3), pp. 215-232.

Despite academic consensus on the concomitant power of triple contexts (country, industry and firm) for business, debates remain as to which context plays more salient a role to drive brand performance. This paper investigates how the triple contexts affect customers’ views of corporate brands and how such views impact on their assessment of brand performance (satisfaction, loyalty and perceived success). This is a comparative study of two search engines – Google and Baidu – from Chinese netizens’ perspective, based on the structural equation modeling of 2151 valid questionnaire responses. We found that the direct (firm) and indirect (country and industry) impact of triple contexts has explained 94% of the variations in netizens’ views. Comparatively, the leading local and foreign search engines have performed superbly, but significantly differently although the firm context has exerted equal impact on both firms. Rather than simultaneous impact, a chain relationship is evident toward brand performance. The findings can aid managers’ understanding of the triple-contextual relationships, their different degrees of influence on brand performance, and the comparative advantages and disadvantages of local and foreign brands in the international arena.

Article Citation:

Deli Yang, Mahmot Sonmez, Qinghai Li, and Yibing Duan. 2015. The Power of Triple Contexts on Customer-Based Brand Performance–A Comparative Study of Baidu and Google from Chinese Netizens’ Perspective. International Business Review, Vol. 25 (1), pp. 11-22

The research undertaken here attempts to test what in some quarters has become “conventional wisdom” ─ that investment in green or sustainability branding necessarily leads to the creation of shareholder value, even though statistical evidence of such a relationship has proven elusive.  Here GreenBiz/Interbrand’s 2012-2013 “best global green brands” data base was used to conduct a step-wise multiple regression analysis, where the rankings and selected financial metrics of Interbrand’s top 50 global green brands were regressed on the market-to-book multiples of each brand in order to determine whether being a leading global green brand is indeed a statistically significant avenue to the creation of shareholder value.  This is important research because of the attention GreenBiz/Interbrand’s Best Global Green Brands attract and because of the potential such findings have for influencing the actions of private sector management, investors, government officials and researchers engaged in the study of branding.

Article Citation:

Darryl Waldron. 2014. Green Brands: An Avenue to the Creation of Economi Value? International Journal of Business and Management, Vol. 11 (3), pp. 130-144.

In an effort to explore the shortage of female sport officials, we examined the experience of eight former female basketball officials from five geographically diverse states in the U.S. who voluntarily left the role. Specifically, we asked former female basketball officials to describe their workplace experiences. Utilizing a phenomenological approach and workplace incivility framework, the results indicated that the felt social inequity for female officials detracted from the participants experiencing a sense of community in the workplace, which ultimately led to their discontinuation in the role. Results indicate four key factors that created this uncivil work environment. An examination of the data revealed four major themes. Specifically the female basketball officials reported experiencing a Lack of Mutual Respect from male counterparts; Perceived Inequity of Policies; a Lack of Role Modeling and Mentoring for and from female officials; and experiencing more Gendered Abuse than did their male counterparts. The combination of these four factors exacerbated the female officials' inability to connect to the officiating community and led to their withdrawal from the role. The results further indicate that women officials likely threatened the hegemonic characteristics of a sport setting. Although females have made great strides in terms of sport participation, the practical implications of this research suggest that understanding females in workplace roles, such as officiating, is vital if social equity is to be achieved in the sporting community.

Article Citation:

Jacob K. Tingle, Stacy Warner, and Pamm Kellett. 2014. The Experience of Former Women Officials and the Impact on the Sporting Community. Sex Roles, Vol. 71 (1-2), pp. 7-20.

The study of immigrants' adaptation to host countries is a complex task that requires the consideration of multiple sociological issues encapsulated in the concept of acculturation. In the face of this, the decision to own a home involves a long-term perspective, associated with a wide array of determinants expressing the degree of success of immigration projects. Thus, this article uses homeownership in the host country to analyze the acculturation process of immigrants in Spain. We conclude that being foreign-born significantly reduces the likelihood of being a homeowner. Moreover, this feature represents the key variable explaining the significantly low homeownership rate exhibited among immigrants compared to natives in Spain. We argue that acculturation processes, when using the homeownership approach, rely on information-acquisition processes, which in turn present distinct patterns by immigrants' region-of-origin.

Article Citation:

Carlos Iglesias and Mario Gonzalez-Fuentes. 2014. Decisiones de Tenencia de Vivienda y Aculturación de la Población Extranjera Residente en España. El Trimestre Económico.

Referees are key sport personnel who have important responsibilities both on- and off- the field. Organized competition would not survive without referees, yet little is known about what cause referees to discontinue in the role. This research examines the experiences of former referees so that managers may better understand strategies that might encourage more referees to be retained. Fifteen previous basketball referees were interviewed about their refereeing experience. Ten themes emerged that were related to the sport development stages of referee recruitment, referee retention, and referee advancement. The results indicate that issues experienced during the retention phase (Problematic Social Interaction, Training/Mentoring, and Lack of Referee Community) and then at the advancing stage (Lack of Administrator Consideration, Administrator Decision Making, and Sport Policies) are linked to eventual departure from the role. Interestingly, off-court factors were reported as more influential in the decision to leave. Managerial strategies and implications are discussed.

Article Citation:

Stacy Warner, Jacob K. Tingle, Pamm Kellett. 2013. Officiating Attrition: The Experiences of Referees Via a Sport Development Lens. Journal of Sport Management, Vol. 27, pp. 316-328.

Based on a framework grounded in the institution-based view, this paper addresses the extent of global patent system integration and development. Our findings suggest that nations' patent systems have yet 'met' the 'international standards', despite national and international endeavor toward this goal. The impact of international institutions on national institutions is reflected in the process rather than the outcome. Among the three components of patent systems across 88 nations, conformity is the strongest for 'patent mechanism', operations is the most diverse for 'patent administration' and 'patent enforcement' does not form a cross-nation divide due to most nations being moderate enforcers.

Article Citation:

Deli Yang and Mahmut Sonmez. 2013. Integration and Divergence of Patent Systems across National and International Institutions. Journal of World Business Vol. 48 (4), pp. 527-538.

Outstanding student employees are essential for campus recreation programs to achieve organizational goals. To that end, this study examined the effectiveness of a leadership development program in which three groups of campus recreation (rec sports) student employees participated at various levels in the following: on campus training, an off-site retreat, a scavenger hunt, and biweekly meetings. Using a quasi-experimental design, data were collected in two phases from 51 students and measured the growth of each student's leadership capabilities as reported using the Student Leadership Practices Inventory. Statistical analyses revealed that group membership did significantly affect growth in the student's leadership capacity. Campus recreation programs are increasingly held accountable and rec sports professionals must understand assessment is vital. The results of this study reveal that rec sports professionals can impact the development of student leaders. Specifically, the findings indicate that growth does not occur with condensed training. Indeed lasting, meaningful growth transpires only when leadership lessons are embedded using a sustained approach. Implications for research and practice are presented.

Article Citation:

Jacob K. Tingle, Christina Cooney, Seth E. Asbury, Sheldon Tate. 2013. Developing a Student Employee Leadership Program: The Importance of Evaluating Effectiveness. Recreational Sports Journal, Vol. 37(1), pp. 2-13.

One of the limitations highlighted by the consumer acculturation literature is the lack of empirical research to identify better constructs or indicators of consumer acculturation. In this article, the use of homeownership by immigrants in the host society is proposed as an indicator of advanced consumer acculturation. The decision to own a home by a minority group, such as immigrants, represents a key landmark in the process of adaptation to the new culture and a commitment with the host country's values and culture. The empirical case used is the immigrant population of Spain. The sharp rise in its foreign-born population during the last decade and the significantly higher homeownership rates of natives in comparison with other countries makes the Spanish scenario a relevant case study. The results obtained show homeownership is linked to features associated with highly acculturated consumers. Moreover, the analysis conducted reveals important differences in the way immigrants from different origins advance in their consumer acculturation processes and suggest distinct approaches when marketing to these groups.

Article Citation:

Mario Gonzalez-Fuentes. 2013. Homeownership as a sign of an immigrant's consumer acculturation: The role of region-of-origin, Journal of Global Marketing, Vol. 26 (2), pp. 80-97.

For some years now, marketers have been praising for a more holistic approach of a company's marketing efforts across all areas. However, traditional models show serious limitations to address the complexities of managing all of a company's touch points with a customer. Agent-based modeling (ABM) has opened the door to explore the unfolding behaviors and outputs of an increasingly connected and interactive marketplace. The contribution of this paper is twofold. On the one hand, it provides researchers with a state-of-the-art repository for this strand of research. This facilitates the identification of relevant gaps in the literature and future research avenues. Second, it contributes to assess the way ABM has improved our understanding of the dynamics of markets and its participants when marketing strategies are implemented. Both goals aim at showing the various ways that social simulation has expanded our understanding of marketing and the future research opportunities for both, marketing and computer scientists.

Article Citation:

Mario Gonzalez-Fuentes. 2013. The Contribution of Social Simulation in the Advancement of Marketing Issues and Challenges, International Journal of Agent Technologies and Systems, Vol. 5(1), pp. 19-31.

This article offers information on a study conducted to examine the link between cash management and the creation of shareholder value. It mentions that a cross-sectional analysis of Standard and Poor's (S&P) 500 companies was done and the strength and nature of the relationship between creation of shareholder value and liquidity was established. The results support the hypothesis that the effectiveness of managing liquidity determines shareholder value.

Article Citation:

Darryl Waldron. 2013. Giving Cash Its Strategic Due: Shareholder Value Depends On It. Review of Business, Vol. 33 (2), pp. 67-79.

In this paper, we posit experiential learning projects in business as a valuable alternative to internships to meet the new AACSB standards for accreditation. While internships have traditionally been used as the main method to provide hands-on learning experiences for students in business schools, their effective implementation imposes stringent demands on faculty, curriculum, and program resources. The pedagogical and administrative benefits of experiential learning projects (ELP) are analyzed using the Kolb model and the literature on learning. We illustrate the versatility of the ELP learning tool by describing two very different applications currently in use at a small private university and advance guidelines for the effective implementation and assessment of experiential learning projects in business curricula.

Article Citation:

Rita D. Kosnik, Jacob K. Tingle, and Edwin L. Blanton. 2013. Transformational Learning in Business Education: The Pivotal Role of Experiential Learning Projects. American Journal of Business Education, Vol. 6 (6), pp. 613-630.

Prior research has examined consumer intentions to purchase fakes, branding strategies and anti-counterfeiting actions, but little attention seems to have been paid to the role of consumers' ability to discern fakes and branding strategies against counterfeiting. This article, thus, based on a study of 128 multinational managers' experience in China, examines these inter-relationships. As a result, we address how knowledgeable and experienced managers in branding, consumer consumption and anti-counterfeiting effort perceive consumers' ability to discriminate fakes from originals interacts with branding strategies, and how such relationship influences the effectiveness of anti-counterfeiting effort. Our findings suggest that consumer discrimination itself has no significant effect on anti-counterfeiting success. However, it significantly interacts with branding strategies to predict a means to mitigate brand damage. That is, consumers' ability to discriminate fakes from originals appears to undermine efforts to mitigate brand damage from counterfeiting, at least in China when branding is based on improving product features or advertising and promotion. However, if branding emphasizes after sales service, consumers' ability to discriminate was found to enhance firms' ability to limit counterfeiting damage to brands. Such interactions, however, did not help stop counterfeiting, except that branding based on reliability appears to have such a positive effect.

Article Citation:

Mahmut Sonmez, Deli Yang, and Gerald Fryxell. 2013. Interactive Role of Consumer Discrimination and Branding against Counterfeiting: A Study of Multinational Managers' Perception of Global Brands in China. Journal of Business Ethics, Vol. 115 (1), pp.195-211

Organizational change creates uncertainty and stimulates fairness judgments of employees, which are important determinants of employee attitudes and behaviors. This study investigated the antecedents of employees’ change-related fairness perceptions. Drawing on change implementation literature, attribution theory, and personality research, the authors examined how the effect of management’s change support on individuals’ change fairness perceptions is moderated by change attributions and employees’ conscientiousness level. Using multilevel data from 693 employees in 29 organizations engaged in a variety of changes, hierarchical linear modeling analysis indicated that the relationships between managements’ change support and individual employees’ change fairness perceptions were positive in most conditions. The exception was when the change was externally attributed to conditions not controllable by the management and when the affected employees had lower levels of conscientiousness.

Article Citation:

Yi Liu, Steven Caldwell, Donald Fedor, and David Herold. When Does Management’s Support for a Change Translate to Perceptions of Fair Treatment? The Moderating Roles of Change Attributions and Conscientiousness. Journal of Applied Behavioral Science, Vol. 48 (4), pp. 441-462.

Marketers are being challenged not merely to satisfy customers but to delight them. In order to accomplish (avoid) customer delight (outrage), the factors that create these emotions must first be isolated and identified. The present study uses the critical incident technique to identify the interpersonal and non-interpersonal factors associated with creating delight or outrage in a performing arts setting. Findings provide rich contextualization of important quality factors and illustrate the key role played by employees in managing the co-consumption process. In addition, the identified factors are associated with the commitment measures of word-of-mouth behavior, repatronage intentions, and donation intentions.

Article Citation:

J. Charlene Davis and Scott R. Swanson. 2012. Delight and Outrage In the Performing Arts: A Critical Incidence Analysis. The Journal of Marketing Theory and Practice, 20 (3), pp. 263-278.

Since the turn of the century, 'patent trolls' have emerged as one of the most topical debates among patent holders. However, nearly ten years later, stakeholders are still unable to reach consensus as to the 'right' or 'wrong' of trolls. Against this backdrop, our debates open with the landmark case of Blackberry between RIM and NTP to provide thoughts as to whether NTP is considered a troll. Then there is a focus on some conceptual issues surrounding patent trolls, and its origin citing relevant mini-cases. This column also lays out the fierce arguments for or against patent trolling among scholars and practitioners and reasoning for the trolling existence. The debates end with some reflections on the implication of patent trolling phenomena on patent systems, particularly the U.S. structure, subsequently, proposing some relevant solutions.

Article Citation:

Deli Yang. 2012. Patent Trolls: Legit Enforcers or Harassers? Journal of Intellectual Property Rights, Vol. 17 (6), pp. 573-577.

This conceptual paper responds to the need for examining the role of patent control over internationalization. It proposes the patent-based strategy of control, in other words, how 3Cs – complementarity, competitiveness, and conditions – impact the strategic decision on corporate control over the patent; thereby the option of commercialization between arm's length and captive transactions. It demonstrates the multiple theoretical natures of business strategies; emphasizes how strategic fit can impact the decision on control; addresses patents as intangible assets that form a comparative and competitive advantage rather than only as a legal right and that have bearing on strategic decision making. The paper proposes that the intention of high control over a patent drives the owner to opt for captive transactions; low control arm's length transactions. Nonetheless, the challenge lies before the decision is made; managers need to assess the 'strategic fit' elements that directly impact on the extent of control.

Article Citation:

Deli Yang. 2012. Arm's Length and Captive Transactions: Patent-Based View of Control in Internationalization. International Business Review, Vol 21 (4), pp. 575-587.

 

Finance & Decision Sciences

A key challenge resulting from the rapid growth of the information technology (IT) industry is finding enough qualified workers to fill available positions. In this paper, Holland’s Theory of Occupational Themes (TOT), Social Cognitive Career Theory (SCCT), and Career Construction Theory (CCT) are used to investigate how job related beliefs, career planning perceptions, and occupational congruence work together to influence students’ career decisions, major satisfaction, and academic performance. Using 210 student responses, we empirically test a theoretically derived research model. Our findings suggest that job security is a strong predictor of both IT career optimism and career planning ability. In addition, career optimism and career planning ability are important antecedents of students’ IT career commitment, which significantly influences satisfaction with academic major. A modest portion of academic performance was explained by the model. Notably, occupational congruence was found to be a poor predictor of academic major satisfaction and performance.

Article Citation:

Diana Young, Darrell Carpenter, and Michele Maasberg. 2017. An Examination of Factors that Influence Students' IT Career Decisions. Journal of Computer Information Systems (forthcoming).

The current study presents a conceptual replication of Liang and Xue’s (2010) test of their proposed Technology Threat Avoidance Theory (TTAT). Whereas the original study investigated individuals’ spyware related threat perceptions, avoidance motivations, and behaviors; we applied the original study’s research questions, hypotheses, and model to the more general context of malware. Results from a sample of 486 computer users revealed that safeguard effectiveness, safeguard cost, and self-efficacy are relatively robust predictors of avoidance motivation across varied settings. Perceived severity is a strong predictor of perceived threat, however the impact of this overall threat perception (along with its perceived susceptibility antecedent) may be less stable in predicting avoidance motivation under changing contextual/environmental circumstances. The results suggest that TTAT is a valid foundational framework for examining user behavior related to malicious software. Future research should investigate additional predictors of avoidance motivation such as risk propensity, distrust, and impulse control to improve the power of the model. Additionally, the current TTAT instrument offers several opportunities for enhanced measurement accuracy through item modifications, scale anchor revisions, and improvements in parsimony. 

Article Citation:

Diana Young, Alex McLeod, and Darrell Carpenter. 2017. Malware Avoidance Motivations and Behaviors: A Technology Threat Avoidance Replication. AIS Transactions in Replication Research (forthcoming).

While research has demonstrated positive productivity and quality gains from using agile software development methods (SDMs), some experts argue that no single SDM suits every project context. We lack empirical evidence about the project contextual factors that influence when one should use these methods. Research suggests several factors to explain agile method appropriateness; however, generalizable empirical evidence supporting these suggestions is weak. To address this need, we used contingency theory and the information processing model to develop the agile contingent project/method fit model. Subsequently, we used the model to analyze the influence of project contextual factors and agile practices on software development professionals’ perceptions regarding agile SDM appropriateness. We tested the model using survey data collected from 122 systems development professionals who provided information regarding: 1) contextual factors surrounding a recent agile development project, 2) agile practices applied during the course of that project, and 3) perceptions regarding the relative fit (appropriateness) of the agile method used. Linear regression identified several significant relationships between project contextual factors, agile practices, and respondents’ relative fit perceptions.

Article Citation:

Diana Young, Nicole Beebe, Glenn Dietrich, and Charles Zhechao Liu. 2017. An Empirical Examination of an Agile Contingent Project/Method Fit Model. Communications of the Association for Information Systems (forthcoming).

I find that institutional arrangements have an impact on the real economy by affecting firms’ choice between private and public debt and the subsequent financing costs. Using new debt issued by firms in 26 non-US countries, I find, after controlling for firm characteristics predicted by debt agency and information asymmetry theories, that the level of financial market development, the efficiency of bankruptcy procedure, the integrity and enforceability of laws, and the transparency of financial information have significant impacts not only on firms’ debt choice and yield to maturity in the domestic debt market, but also their issuance choice in the international debt market.

Article Citation:

Shage Zhang. 2016. Institutional Arrangements and Debt Financing. Research in International Business and Finance, Vol. 36 (January), pp. 362-372.

This study explores whether characteristics of the collaboration structure in software development teams affect development learning rates, with a secondary goal of testing product complexity as a moderator. We develop suitable hypotheses under the theoretical lens of cognitive load theory. The empirical study uses archival data on an ordinary least squares model to find significant associations between collaboration structure, product complexity and the learning rates exhibited by 230 development teams producing open source software. Results show two distinct subgroups of projects: The first subgroup exhibits an average 78% learning rate, and the other subgroup “unlearned”, i.e., productivity deteriorated over time instead of improved. In the learning subgroup, collaboration network density negatively impacted learning, while product complexity interacted with collaboration network centralisation and boundary spanning activity. In the unlearning subgroup, only network density impacted learning rates and no moderating effects were found. Practical implications and future opportunities for research are discussed.

Article Citation:

Jorge Colazo. 2016. A Cognitive Load View and Empirical Test of Collaboration Network Structure vs. Learning Rates in New Software Development. International Journal of Innovation Management, Vol. 20 (1).

This paper examines the medium and long-term impacts of economic news on exchange rate movements. We extend a standard new open economy macroeconomics model by allowing anticipated (news) shocks in purchasing power parity and real interest rates, and perform a structural Bayesian estimation. Using 20 years of quarterly data from the US and the euro area, we find that anticipated shocks account for more than 40 percent of exchange rate fluctuations.

Article Citation:

K. Chen and Shage Zhang. 2015. What's news in exchange rate dynamics: A DSGE approach. Economics Letters, Vol. 134, pp. 133-137

We study the long-term trend of excess value and internal capital allocation of diversified firms from 1976 to 2013. The late 1970s and 1980s are characterized by large average diversification discount but narrow dispersion of excess value. Excess value of diversified firms becomes less negative on average after 1990, but its dispersion grows larger. In contrast, capital allocation efficiency of diversified firms converges significantly over time. Three quarters of diversified firms do not suffer from severe capital misallocation after the early 2000s. The effect of capital allocation efficiency on excess value varies over time and becomes larger in recent years.

Article Citation:

M. Mazur and Shage Zhang. 2015. Diversification Discount over the Long Run: New Perspective. Finance Research Letters, Vol. 15, pp. 93-98.

We present a new way to develop withdrawal strategies from retirement portfolios. It is derived analytically, instead of from empirical testing, and it iterates always in the same manner. It is based on a new measure we develop, the Perfect Withdrawal Amount, for which we discuss how to construct a probability distribution and how to apply it sequentially. We also derive a new measure of sequencing risk. We present new strategies built with this framework.

Article Citation:

E. Dante Suarez, Antonio Suarez, and Dan Walz. 2015. Financial Services Review, Vol. 24 (4), pp. 331-357.

The problem-solving view of new product development sees the innovation process as a series of problem-solving loops broken down into three stages: problem detection, analysis and removal. We link this framework with lead user-driven innovation regarding software and show that effort by lead users (LUs) in each stage of the innovation problem solving process is, in varying degrees, associated with the source code’s quality, the productivity of the development process and the software’s popularity. We also test whether front loading the problem solving process is associated with development performance and we find that front loading is associated with increased code quality but decreased development productivity. Empirical tests are carried out with data from open source software projects. Findings potentially impact the design and management of online communities to help product development.

Article Citation:

Jorge Colazo. 2014. Performance Implications of Stage-Wise Lead User Participation in Software Development Problem Solving. Decision Support Systems 67 (November), pp. 100-108.

This article presents a comprehensive method to assess system security risks. The method includes a cohesive set of steps to not only identify a more complete set of security risks but also assess them in a systematic manner. The method is based on the integration of two kinds of models: (1) qualitative models emphasizing security risk factors and security requirement determination and (2) quantitative models that focus on formal evaluation and assessment of system security risks. Unlike most of the existing methods, the proposed method covers the whole process of system security risk assessment spanning all three phases—ascertainment of security requirements, measurement of evidence for security requirements, and evaluation of evidence against the needed security mechanisms. The article extends existing work on system security risk methods by incorporating new ideas of multifaceted security view and work system in a coherent set of steps. The article demonstrates the application of the proposed method to a real application and discusses the major results.

Article Citation:

S. Yadav and Tianxi Dong. 2014. A Comprehensive Method to Assess Work System Security Risk. Communications of the Association for Information Systems, Vol 34.

Researchers studying the economics of information security have traditionally focused on the use of rational choice decision models for evaluating investment alternatives. Security investment decisions involve risk, and several researchers have noted that risk-related decisions often violate the fundamental principles of rational choice decision models. This study tests the prevailing presumption in published research that information security investment decisions are made in an entirely rational manner. We empirically validated our hypothesis that information security investment decision makers in fact exhibit preference reversals when faced with competing budget alternatives involving risk. Specifically, we observed the framing effect under prospect theory, which suggests that individuals exhibit unique risk attitudes when evaluating gain-related and loss-related risk decisions. Accordingly, we argue that existing, widely accepted rational choice and economic models for information security investments need to be supplemented with risk perception measurement and account for individual level decision biases.

Article Citation:

Nicole Beebe, F. Chang, and Diana Young. 2014. Framing Information Security Budget Requests to Influence Investment Decisions. Communications of the Association for Information Systems, Vol 35 (1), pp. 133-143.

Collaboration structure and temporal dispersion (TD) in teams have been studied independently so far. This study uses Media Synchronicity Theory (MST) to derive hypotheses positing that the structure of collaboration networks in distributed teams changes when those teams are more temporally dispersed. The empirical test of hypotheses using ordinary least squares with archival data from 230 open source software (OSS) projects shows that the collaboration structure networks of those OSS teams that are more temporally dispersed are sparser and more centralized, and these associations are stronger in those teams exhibiting higher relative performance. Theoretical and practical consequences are discussed.

Article Citation:

Jorge Colazo. 2014. Structural Changes Associated with Temporal Dispersion: Evidence from Open Source Software Teams. International Journal of Innovation Management, Vol 18 (5).

Distributed Agency is the name of a conceptual framework for describing complex adaptive systems that this paper develops. To understand the complexity of the world in a holistic fashion, the field of Modeling and Simulation is currently lacking a common terminology in which different bodies of knowledge can communicate with each other in a general language. In this work, agency is proposed as the common link between the different dimensions of reality, expressing the influence of one dimension on another. This conceptualization is based on a process of backwards induction where nested actors such as an evolved organism or a human choice can be represented as the resulting force of intertwined aims and constraints. The theoretical framework can serve as a point of reference for the social and computational researcher by communicating structural and emergent properties that are essential for the understanding of social and evolutionary phenomena such as companies, economies, governments, and ecosystems.

Article Citation:

Eugenio Dante Suarez and Manuel Castañón-Puga. 2013. Distributed Agency. International Journal of Agent Technologies and Systems, Vol. 5(1), pp. 32-52.

The purpose of this paper is to examine the association between mandatory prerequisite testing and performance in Intermediate Corporate Finance. Scores on prerequisite tests are strongly, positively related to Intermediate Finance course grades even after controlling for variables previously found to determine student Principles of Finance success. Because mandatory prerequisite testing results are highly indicative of ultimate performance in Intermediate Finance, this testing may be used to help counsel students regarding remedial actions they may take to improve course outcome.

Article Citation:

L. Paige Fields. 2013. Mandatory Prerequisite Testing and Performance in Intermediate Corporate Finance. Journal of Financial Education, Vol. 39, Issue 1/2, pp. 29-42.

The study posits a mediating role of software complexity in the association between software volatility and different software development outcomes. Empirical tests using data from 326 Open Source Software projects supports such mediating role using productivity, defect count and development speed as dependent variables.

Article Citation:

Jorge A. Colazo. 2013. The Interplay Among Software Volatility, Complexity and Development Outcomes: Evidence from Open Source Software. International Journal of Information Technology and Management, Vol. 14 (2/3), pp. 160-171.

We investigate how investor protection, government quality, and contract enforcement affect risk taking and performance of insurance companies from around the world. We find that better investor protection results in less risk taking, as do higher quality government and greater contract enforceability. However, we find only limited evidence that these factors influence firm performance. We conclude that better overall operating environments result in less risk taking by insurers without the concomitant decline in performance. These results imply that better investor protection environments benefit policyholders and outside stockholders by preventing corporate insiders from expropriating wealth from policyholders and outside stockholders.

Article Citation:

L. Paige Fields, Manu Gupta, and Puneet Prakash. 2012. Risk-taking and Performance of Public Insurers: An International Comparison. Journal of Risk and Insurance, Vol. 79 (4), pp. 931-962.