• 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.
    • 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 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.
    • 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.
    • 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 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 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • 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.
    • Effectiveness of Event Risk Covenants in High Yield Bonds: Evidence from Long-Run Stock Performance

      Tewari, Manish; Ramanlal, Pradipkumar; The College at Brockport; University of Central Florida (1/1/2012)
      We examine the post-issue long-run performance of the common stock of the firms issuing nonconvertible high yield bonds with event risk covenants (ERCs) over the period five years after the issue date. Using Fama French (1993) four factor regression model to analyze a sample of 217 issues issued between 1986 and 2004, we find statistically and economically significant monthly average abnormal returns between 0.36% and 0.55%, which compounds to 24% to 39% over the five year period. The evidence suggests strong long-run overperformance after the issuance. This result is in contrast to the evidence of underperformance after the straight debt issues (Speiss and Affleck-Graves, 1999). Our results support the evidence that the ERCs in bonds issued by the firms closer to financial distress or with low credit rating, help significantly reduce the agency problem between the common stockholders and the bondholders resulting in direct cost benefit to the firm in terms of reduced yields. This benefit seems to far outweigh the costs to the stockholders in terms of agency cost of potential management entrenchment and/or potential loss of takeover premium. The net result is the higher returns for the shareholders. The full impact of this benefit is only realized in the long-run.
    • Effectiveness of Event Risk Covenants in High Yield Bonds: Evidence from Long-Run Stock Performance

      Tewari, Manish; Ramanlal, Pradipkumar; The College at Brockport; University of Central Florida (1/1/2012)
      We examine the post-issue long-run performance of the common stock of the firms issuing nonconvertible high yield bonds with event risk covenants (ERCs) over the period five years after the issue date. Using Fama French (1993) four factor regression model to analyze a sample of 217 issues issued between 1986 and 2004, we find statistically and economically significant monthly average abnormal returns between 0.36% and 0.55%, which compounds to 24% to 39% over the five year period. The evidence suggests strong long-run overperformance after the issuance. This result is in contrast to the evidence of underperformance after the straight debt issues (Speiss and Affleck-Graves, 1999). Our results support the evidence that the ERCs in bonds issued by the firms closer to financial distress or with low credit rating, help significantly reduce the agency problem between the common stockholders and the bondholders resulting in direct cost benefit to the firm in terms of reduced yields. This benefit seems to far outweigh the costs to the stockholders in terms of agency cost of potential management entrenchment and/or potential loss of takeover premium. The net result is the higher returns for the shareholders. The full impact of this benefit is only realized in the long-run.