Recent Submissions

  • Disproportionate Insider Control and Firm Performance

    Hettler, Barry; Forst, Arno; The College at Brockport; The University of Texas (6/22/2017)
    The effect of disproportionate insider control on firm performance is ambiguous. Disproportionate control may enhance insiders’ ability to expropriate perquisites; on the other hand, it may provide stability of management and reduce short?term market pressures. Using a hand?collected sample of U.S. dual?class firms, we find that disproportionate control is positively associated with accounting?based performance, but negatively associated with Tobin's Q. These results are consistent with the incentives of entrenched insiders who are interested in profitability but less beholden to capital markets.
  • What influences salary: A study of MIS faculty job offers

    Neely, M. Pamela; Tribunella, Thomas; Tang, Zhi; Hull, Clyde Elrikur; Rochester Institute of Technology; State University of New York at Oswego; The College at Brockport (1/1/2008)
    What matters when you’re negotiating a job offer? We address this and other questions using data from the Association for Information Systems (AIS) Salary Surveys on compensation, rank, publication data, and similar data associated with MIS Faculty job offers. Our study has three primary findings. First, school and individual factors influence the position and salary offered, but individual factors have a stronger impact. Second, we find the position (i.e., associate/assistant professor and teaching load) offered by schools partially mediates the relationship between school and individual factors and the starting salary. Third, the direct impact of individual factors is also influenced by some school factors. Specifically, top tier publication is the most important individual factor in determining the salary level at PhD granting institutions.
  • Process Variation: Demonstrating Responsibility

    Romal, Jane B.; Braunscheidel, Michael J.; Canisius College; The College at Brockport (10/1/2009)
    W. Edwards Deming preached that understanding variation is of paramount importance. He created the Red Bead Experiment (DRBE) to illustrate that variation is present in all processes and that utimately, management, not the willing worker, is responsible for the variability that is inherent in a process. We modify DRBE to demonstrate these lessons to undergraduate management and accounting students. Our results indicate that DRBE is a successful way for these students to I cam how variation applies to their respective studies.
  • Academic And Practitioner Interests Regarding Emerging Technologies In Accounting

    Tribunella, Thomas J.; Neely, M. Pamela; Tribunella, Heidi R.; Rochester Institute of Technology; The College at Brockport; University of Rochester (5/1/2005)
    In this paper we investigate the differences between practitioner and academic interests in emerging technologies. We compare and contrast the results of an accounting faculty survey to the AICPA’s (American Institute of Certified Public Accountants) Top Technology list. It appears that academics and practitioners have significantly different interests concerning emerging technologies. Furthermore, technology interests for both groups change over time. We then discuss the problems that arise from the differing points of view and suggest some possible solutions.
  • An Empirical Assessment Of The Determinants Of Bank Branch Manager Compensation

    Stites-Doe, Susan; Cordeiro, James J.; The College at Brockport (10/1/1999)
    A model of branch-management compensation based on human capital and performance measures is tested using data on managers from eighty-two branches of a large, Eastern United States bank. Human capital factors such as managerial rank, gender, years of schooling, experience in the industry, and age are found to explain branch manager pay levels, after controlling for competition, and branch size.
  • An Analysis Of The Determinants Of MIS Faculty Salary Offers

    Tribunella, Thomas; Neely, M. Pamela; Hull, Clyde Elrikur; Rochester Institute of Technology; State University of New York at Oswego; The College at Brockport (1/1/2007)
    Much research has been published related to compensation in academic fields such as finance, accounting and economics; however, little attention has been paid to Management Information Systems (MIS). Conspicuously absent from the literature are in-depth studies of faculty compensation and its relationship to research productivity for MIS faculty. This study examines compensation, rank, and publication data collected from the Association for Information Systems (AIS) 2003-2004, 2004-2005 and 2005-2006 MIS Salary Surveys. MIS faculty who were newly employed or changed positions filled out the online survey at the AIS Web site on a self-selected basis. The relationships between compensation and its possible determinants such as research productivity and institutional teaching load are reported as well as analyzed. We find that compensation is significantly correlated with professors’ profiles as well as with the school profile at which the professor received a job offer.
  • Incentives for monitors; director stock-based compensation and firm performance

    Cordeiro, James J.; Veliyath, Rajaram; Neubaum, Donald O.; Kennesaw State University; The College at Brockport; University of Central Florida (4/1/2005)
    Since the mid-1990s, US corporations have increasingly emphasized stock-based compensation for outside directors in order to align their interests with stockholders and thus boost firm performance. We demonstrate that stock options and stock grants (each as a ratio relative to total compensation) for directors were positively related to future firm performance (measured as stock returns, and, separately, as Jensen's Alpha) for a panel of 450 Standard and Poor 500 films over 1995-97. Stock option ratios appeared to have a stronger impact on film performance than stock grants did.
  • An Exploratory Study Investigating Leader and Follower Characteristics at U.S. Healthcare Organizations

    Baker, Susan D.; Mathis, Christopher J.; Stites-Doe, Susan; Morgan State University; The College at Brockport (10/1/2011)
    Leadership has been studied by a myriad of scholars in the 20th and 21st centuries. One recent stream of research focuses on the followers of leaders. Today, followership is recognized as a construct that has value, and there is a broad call for additional research in this area (Gardner et al., 2005; Howell and Shamir, 2005.) In this study, the authors propose hypotheses that focus on followers and on their adoption of characteristics that are leader-like. The central thesis in this study is that followers have the ability to share roles with leaders. To test that thesis, a model is presented of specific leader and follower behaviors that (a) are thought to be related and overlapping, and (b) are relevant to role-sharing. Borrowing from prior work in which role sharing has been discussed, this study presents hypotheses and findings from analysis of field survey data collected from employees in healthcare organizations.
  • The Impact of Women Managers on Firm Performance: Evidence from Large U.S. Firms

    Cordeiro, James J.; Stites-Doe, Susan; The College at Brockport (1/1/1997)
    Drawing on arguments from the management and human resource economics literatures, we hypothesise that the percentage of women managers employed in firms will be positively related to the performance of firms. A correlational research design is employed, and 1992 employment and performance data for 183 U.S. firms is utilised in data analysis. The hypothesis is strongly supported.
  • Is the Put Option in U.S. Structured Bonds Good for Both Bondholders and Stockholders?

    Tewari, Manish; Ramanlal, Pradipkumar; The College at Brockport; University of Central Florida (1/1/2010)
    The recent financial crisis has brought into spotlight various financially engineered products, their design parameters, and the impact of these design parameters on the bondholders and the common stockholders. We analyze the common stock performance of 134 firms issuing the callable-puttable bonds, a structured derivative security, issued between 1977 and 2005. We focus our study on the common stock performance of the issuing firms around the issue date and the put date. We use the Fama French (1993) four factor regression model to estimate the common stock performance of the issuing firms two years before and after the issue and the put date. We find that these firms underperform the market throughout. The firms perform worse after the issue date but improve their performance as we get closer to the put date. We find strong evidence that the presence of the put option in these securities provides protection to the bondholders as well as improved returns to the common stockholders. The deferred put option can mitigate the agency problem between the stockholders and the bondholders.
  • Do EVA ™ Adopters Outperform their Industry Peers? Evidence from Security Analyst Earnings Forecasts

    Cordeiro, James J.; Kent, D. Donald; The College at Brockport (6/1/2001)
    The purpose of the present study is to re-examine the link between EVA ™ adoption and firm performance, using security analyst earnings forecasts. These forecasts, we argue, function as a proxy for firm performance that usefully supplements other accounting and stock market measures. We begin by reviewing some of the literature on EVA™, noting claims for strengths and weaknesses of that performance measure and management system. We then make the case for why security analyst earnings forecasts are a useful performance measure for testing the performance effects of EVA TM adoption. We test our hypothesis using Stern Stewart's sample of firms in 1997.
  • The Fallacy of Cookie Cutter Asset Allocation: Some Evidence from 'New York's College Savings Program'

    Spitzer, John J.; Singh, Sandeep; The College at Brockport (1/1/2001)
    In this paper. we establish why ''prefabricated'' asset allocation schemes mandated by some education savings programs might be suboptimal. Then. using the New York's College Savings Program a an example, we simulate and then compare end of period wealth accumulated in both a tax preferred but regimented asset allocation plan, and in a nontax protected plan. We find. first. that the longer the child participates in the plan. the greater the benefit. Second. participants in higher tax brackets derive greater benefits; adherence to prespecified asset allocation for low tax bracket investors often results in return loss that overshadows the tax benefit.
  • Delaying Social Security Payments: A Bootstrap

    Spitzer, John J.; The College at Brockport (10/1/2006)
    This paper reconciles previous research outcomes and explains why prior studies offer conflicting recommendations regarding the decision to delay Social Security payments. Using a bootstrap, this paper determines the age at which a retiree is better off deferring Social Security payments when rates of return are not constant. The expected rate of return affects the breakeven age and the rate of return is a function of asset allocation. When life expectancy and realistic investment returns are incorporated into the analysis, there are few circumstances that warrant postponing Social Security payments for early retirees.
  • The Office Makes a Difference: An Exercise on the Politics of Office Space

    Stites-Doe, Susan; Waite, Melissa L.; Pillai, Rajnandini; The College at Brockport (1/1/1998)
    In this article we report the benefits of a new case study that explores gender bias, organizational culture, and organizational politics. The case is based on true events, and centers on the assignment of office space to a newly-promoted female vice president at a savings and loan bank. Office space is argued by many to be symbolic of power in organizations. The experiences of the main character in the case point to power imbalances that result from gender-based cultural values and the character's inadequate attention to political behavior.
  • Shortfall Risk of Target-date Funds During Retirement

    Spitzer, John J.; Singh, Sandeep; The College at Brockport (6/1/2008)
    Target-date mutual funds are likely to increase in popularity because they are now one of the three approved default options for many retirement plans. In the retirement years, target-date funds become increasingly conservative with higher bond concentrations. Using a bootstrap simulation and rolling period analysis, three target-date fund classifications are shown to have higher probabilities of running out of money and lower balance remaining when compared to fixed allocation portfolios. A fixed 50/50 stock/bond portfolio unambiguously out-performs the target-date funds, regardless of methodology employed. In light of this evidence, these funds should revisit their asset allocation strategy.
  • Retirement Withdrawals: an Analysis of the Benefits of Periodic “Midcourse” Adjustments

    Spitzer, John J.; The College at Brockport (4/1/2008)
    Much research has addressed the question of how much money can safely be withdrawn from a retirement portfolio without prematurely running out of money (shortfall risk). Instead of constant (inflation adjusted) annual withdrawals, this study uses withdrawal amounts (and optionally, asset allocations) that are modified every five years over a 30-year withdrawal horizon. A bootstrap is used initially to obtain the conditional probability rules. Further simulations demonstrate that periodic (every five years) adjustments can decrease the risk of running out of money as well as increase the amount withdrawn, as compared to a “constant withdrawal amount” strategy
  • Estimating Parameters of the 1918-19 Influenza Epidemic on U.S. Military Bases

    Sohn, Kyongsei; Boulier, Bryan L.; George Washington University; The College at Brockport (10/1/2012)
    Occasional shifts in the influenza virus generates a new variant, posing potential threat of a deadly epidemic. This type of shift occurred with the 1918-19 flu with devastating consequences in the U.S. and worldwide. Using newly developed data from 18 U.S. military establishments during the 1918-19 flu epidemic, we estimate parameters of the Susceptible-Exposed-Infectious-Asymptomatic-Removed epidemic model. Our estimates show considerable variation in the value of the infectivity parameter across bases. This variation is uncorrelated with base size or beginning date of the epidemic. Results indicate that the epidemic on U.S. military bases was more infectious than those of in England and Wales.
  • Analyst Optimism in the Automotive Industry: A Post-Bailout Boost and Methodological Insights

    Hettler, Barry; Sorokina, Nonna; Tanai, Yertai; Booth, David; The College at Brockport; Wake Forest University (7/1/2015)
    This paper empirically investigates the impact of the government bailout on analysts’ forecast optimism regarding firms in the automotive industry. We compare the results from M- and MM-robust methodologies to the results from OLS regression in an event study context and find that inferences change. When M- and MM-robust estimation methods are used to estimate the same model, the results for key control variables fall directly in line with those of similar previous studies. Furthermore, an analysis of residuals indicates that the application of M- and MMestimation methods pulls the main prediction equation towards the main sample data, suggesting a more rigorous fit. Based on robust methods, we observe changes in analyst optimism during the announcement period of the bailout, as evidenced by the significantly positive variable of interest. We support our empirical results with simulations and confirm significant improvements in estimation accuracy when robust regression methods are applied to the samples contaminated by outliers.
  • Managing a Retirement Portfolio: Do Annuities Provide More Safety?

    Spitzer, John J.; The College at Brockport (7/1/2009)
    Even with the generally recognized “safe” withdrawal amount of 4% of the retirement portfolio starting balance, more than 5% of retirement portfolios will run out of money over a 30-year period. Bootstrap simulations were used to estimate the probability of outliving a retirement portfolio as increasing proportions of a tax-deferred account are annuitized. The impacts of Required Minimum Distributions and taxable Social Security income were incorporated into the analysis. Results indicate that annuities significantly extend the length of time the portfolio lasts, but the expected balance remaining (estate size) will decrease substantially, a trade-off of security versus a legacy. Advisors and planners may find the graphical exposition helpful when showing clients different tradeoff options.
  • Division Buyout and Refinancing of Event Risk Covenant Bonds: Evidence from the Long-Term Stock Performance

    Tewari, Manish; The College at Brockport (5/17/2013)
    The focus of this paper is to assess the long-term common stock performance of the parent firms that underwent divisional buyout (DBO) and had event risk covenant (ERC) bonds outstanding at the announcement of the DBO. The final sample of 46 parent firms exhibit a common characteristic where all the ERC bonds were redeemed (either called above par or put on the firm at par) or restructured at a higher cost to the firm around DBO announcement date due to the presence of ERCs. ERCs are triggered since the parent firms that divest their assets through a DBO reveal future cash flow volatility, which has potential to lower the value of existing bonds. This refunding of the bonds leads to costly refinancing for the parent firms, which has long-term implications. I find significantly negative cumulative abnormal returns at the issue date of the ERC bonds for these firms due to potential managerial entrenchment and foregone transfer of wealth from bondholders to stockholders. Consistent with the finance literature, I find significantly positive cumulative abnormal returns for parent firms at the announcement of the DBO. These positive short-term returns at the announcement do not translate into long-term positive returns. The common stock of these parent firms significantly underperforms the market over the periods three, four, and five years after the DBO date. This dichotomy can be attributed to the security market overreaction to the announcement of DBO. The long-term underperformance can be attributed to the costly refinancing of the ERC bonds.

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