A-list Journal Publications

Aaron Hill: “Beyond Lobbying Expenditures: How Lobbying Breadth and Political Connectedness Affect Firm Outcomes,” published in Academy of Management Journal

Spears School News Staff
  (April 1, 2016 at 2:48 pm)
Aaron Hill

Aaron Hill

Firms are increasingly emphasizing lobbying, yet the theoretical rationale explaining the firm-level implications of lobbying remains limited and the empirical evidence contradictory. In particular, extant research largely focuses on aggregate expenditures, suggesting that more lobbying nets firm benefits (typically measured as firm performance). We argue that focusing solely on aggregate expenditures largely ignores how expenditures are targeted and the connections of firms doing the targeting and, as such, that exploring such factors both will add to our understanding of the theoretical mechanisms underlying lobbying and help clarify contradictory results. Specifically, we argue that a lobbying strategy consists of the amount of agencies and legislation targeted (lobbying breadth) and firms’ connections in political circles (political connectedness). Empirical results support our contentions that lobbying breadth and political connectedness affect the benefits firms receive from lobbying, which we operationalize using both government contracts and Tobin’s Q. Our results support our theoretical arguments that more is not always better in the case of lobbying breadth, as the benefits firms accrue via dispersing lobbying across more entities reaches a point of diminishing returns. Further, political connectedness has both a direct effect and interacts with lobbying breadth in determining firm benefits from lobbying.

Dursun Delen: “A Fuzzy-Hybrid Analytic Model to Assess Investors’ Perceptions for Industry Selection,” published in Decision Support Systems

Spears School News Staff
  (April 1, 2016 at 1:19 pm)
Dursun Delen

Dursun Delen

The 2008–2009 global financial crisis and its subsequent ramifications on capital markets have led to an increasing attention on the importance of cognitive and behavioral issues in finance. The purpose of this study is to determine the ranking of the industry alternatives for portfolio investments based on individual investors’ perceptions. Accordingly, a hybrid analytic multi-criteria decision model (MCDM)—based on the Fuzzy Analytic Hierarchy Process (FAHP) and the Fuzzy Technique for the Order of Preference by Similarity to Ideal Solution (FTOPSIS) methods along with sensitivity analysis—is developed to identify and rank-order the best performing industry options. The proposed model is applied to Borsa Istanbul Stock Exchange 100 Index (BIST 100) in Turkey. The results indicate that (i) the investors’ perceptions on market conditions and global financial situation influence their industry selection on company stocks; (ii) the investors’ perceptions on portfolio investments rely heavily on performance and risk levels of individual asset/stocks, and (iii) traded stocks of financial industry (along with its sub-industries) have greater performance expectations than those of the ones in other industries such as technology, services and tourism.

Rebecca Greenbaum: “I Don’t Want to Be Near You, Unless…”: The Interactive Effect of Unethical Behavior and Performance onto Relationship Conflict and Workplace Ostracism,” published in Personnel Psychology

Spears School News Staff
  (April 1, 2016 at 1:13 pm)
Rebecca Greenbaum

Rebecca Greenbaum

Examined through the lens of moral psychology, we investigate when and why employees’ unethical behaviors may be tolerated versus rejected. Specifically, we examine the interactive effect of employees’ unethical behaviors and job performance onto relationship conflict, and whether such conflict eventuates in workplace ostracism. Although employees’ unethical behaviors typically go against moral norms, high job performance may provide a motivated reason to ignore moral violations. In this regard, we predict that job performance will mitigate the relationship between employee unethical behavior and workplace ostracism, as mediated by relationship conflict. Study 1, a multi-source field study, tests and provides support for Hypotheses 1 and 2. Study 2, also a multi-source field study, provides support for our fully specified model. Study 3, a time-lagged field study, provides support for our theoretical model while controlling for employees’ negative affectivity and ethical environment. Theoretical and practical implications are discussed.

Aaron Hill: “The Signaling Role of Politician Stock Ownership: Effects on Firm Lobbying Intensity,” published in the Journal of Management

Spears School News Staff
  (March 3, 2016 at 8:26 am)
Aaron Hill

Aaron Hill

Adopting a signaling theory perspective, we argue that politician stock ownership sends signals of positive predispositions to firms, thereby alleviating some necessity for firms to emphasize lobbying expenditures to influence political action. Using data on Congressional stock ownership, we find some support for our arguments. We find that as the proportion of Congress owning stock in a firm increases, the firm decreases the intensity of lobbying. Further, we find that the signals associated with stock-holding politicians with greater ability to affect the legislative agenda (i.e., affiliation with the majority party) relates to lobbying intensity. Our findings add to the literature on lobbying while also offering implications for practice and avenues for future research.

Laurie Lucas: “Abusive Acts or Practices Under the CFPB’s UDAAP Prohibition,” published in The Business Lawyer

Spears School News Staff
  (January 21, 2016 at 11:24 am)
Laurie Lucas

Laurie Lucas

Following the Great Recession of 2007-09, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, which created the Consumer Financial Protection Bureau (CFPB). The CFPB began operating in 2011. While the Federal Trade Commission has long had the authority to prohibit unfair and deceptive acts or practices in commerce, the CFPB’s expanded powers now include the authority to also prohibit “abusive” acts or practices. This article analyzes enforcement actions alleging abusive acts or practices in the consumer financial services industry over the last five years. This statutory definition is broad and arguably subjective in nature. As a result, a review of enforcement actions filed by the CFPB is instructive as to how the term “abusive” has been applied in practice and provides insight into the CFPB’s interpretation of the term.

Jason Kiley: “Ready, AIM, Acquire: Impression Offsetting and Acquisitions,” published in the Academy of Management Journal

Spears School News Staff
  (January 20, 2016 at 1:15 pm)
Jason Kiley

Jason Kiley

Drawing on expectancy violation theory, we explore the effects of anticipatory impression management in the context of acquisitions. We introduce impression offsetting, an anticipatory impression management technique organizational leaders employ when they expect a focal event will negatively violate the expectations of external stakeholders. Accordingly, in these situations, organizational leaders will announce the focal event contemporaneously with positive, but unrelated information. We predict impression offsetting will generally occur in the context of acquisitions, but also more frequently for specific acquiring firms and acquisitions that are more likely to lead to an expectancy violation. We also posit that offsetting will effectively inhibit observers’ perceptions of events as negative expectancy violations by positively influencing shareholder reactions to acquisition announcements. Consistent with our hypotheses, in a sample of publicly traded acquisition targets, we find evidence for impression offsetting, in which characteristics of both acquirers and their announced acquisitions predict its frequency of use. We also find evidence that impression offsetting is efficacious; on average, it reduces the negative market reaction to acquisition announcements by over 40 percent, which translates into approximately $246 million in market capitalization.

Tom Brown: “A Cross-Lagged Test of the Relationship between Customer Satisfaction and Employee Job Satisfaction in a Relational Context,” published in the Journal of Applied Psychology

Spears School News Staff
  (December 3, 2015 at 10:53 am)
Tom Brown

Tom Brown

Due to its practical importance, the relationship between customer satisfaction and frontline employee (FLE) job satisfaction has received significant attention in the literature. Numerous studies to date confirm that the two constructs are related and rely on this empirical finding to infer support for the “inside-out” effect of FLE job satisfaction on customer satisfaction. In doing so, prior studies ignore the possibility that – as suggested by the Service Profit Chain’s satisfaction mirror – a portion of the observed empirical effect may be due to the “outside-in” impact of customer satisfaction on FLE job satisfaction. Consequently, both the magnitude and direction of the causal relationship between the constructs remain unclear. To address this oversight, this study builds on multi-source data, including longitudinal satisfaction data provided by 49,242 customers and 1,470 FLEs from across 209 retail stores, to examine the association between FLE job satisfaction and customer satisfaction in a context where service relationships are the norm. Consistent with predictions rooted in Social Exchange Theory, the results reveal that (1) customer satisfaction and FLE job satisfaction are reciprocally related, (2) the outside-in effect of customer satisfaction on FLE job satisfaction is predominant (i.e., larger in magnitude than the inside-out effect), and (3) customer engagement determines the extent of this outside-in predominance. Contrary to common wisdom, the study’s findings suggest that, in relational contexts, incentivizing FLEs to satisfy customers may prove to be more effective for enhancing FLE and customer outcomes than direct investments in FLE job satisfaction.

Qin Wang: “Institutional Trading During a Wave of Corporate Scandals: Perfect Payday,” published by the Journal of Corporate Finance

Spears School News Staff
  (November 30, 2015 at 2:23 pm)
Qin Wang

Qin Wang

This paper examines the role of institutional trading during the option backdating scandal of 2006-2007. Unlike their inability to anticipate other corporate events, institutional investors as a group display negative abnormal trading imbalances (i.e., buy minus sell volumes) in anticipation of firm-specific backdating exposures. Consistent with informed trading, the underlying trades earn positive abnormal short- and long-term profits. Moreover, the negative abnormal imbalances are larger in magnitude when backdating is likely a more severe issue. Local institutions, in particular, display negative trading imbalances earlier in event-time and earn consistently higher trading profits than non-local institutions. Although we find some evidence of over-reaction following the arrival of information about the backdating scandal, these patterns are short-lived and exclusively due to the activity of non-local institutions. Overall, institutional investors behave as informed investors, particularly in local stocks, during this prolonged period of heightened uncertainty about corporate reporting and governance practices.

Qin Wang: “Local Business Cycles and Local Liquidity,” published in the Journal of Financial and Quantitative Analysis

Spears School News Staff
  (November 30, 2015 at 2:22 pm)
Qin Wang

Qin Wang

This study examines whether state-level economic conditions affect the liquidity of local firms. We find that liquidity levels of local stocks are higher (lower) when the local economy has performed well (poorly). This relation is stronger when local financing constraints are more binding, the local information environment is more opaque, and local institutional ownership levels and trading intensity are higher. Overall the evidence supports the notion that the geographical segmentation of U.S. capital markets generates predictable patterns in local liquidity.

Qin Wang & Jun Zhang: “Does Individual Investor Trading Impact Firm Valuation?,” published in the Journal of Corporate Finance

Spears School News Staff
  (November 30, 2015 at 11:56 am)
Qin Wang

Qin Wang

Motivated by recent evidence of informed trading by individual investors (Kaniel et al., 2012; Kelley and Tetlock, 2013; Wang and Zhang, 2015), we posit that individual investor trading enhances firm performance.

Jun Zhang

Jun Zhang

Consistent with the conjecture, we find that individual investor trading positively impacts firm value. The results are robust to inclusion of year, industry and firm fixed effects, alternativemodel specifications, a control for endogeneity, Granger causality test, matched sample analysis and subsample analyses. The positive effect of individual investor trading on firm value is stronger for firms with higher information production and stocks with higher spread, consistent with the information and spread channel mechanism. Our results suggest that trading by individual investors enhances firm value by improving stock price informativeness and reducing spread.

Rathin Sarathy: “Secure Attribute Sharing in Linked Microdata,” published in Decision Support Systems

Spears School News Staff
  (October 20, 2015 at 1:54 pm)
Rathin Sarathy

Rathin Sarathy

This study demonstrates a procedure for secure sharing of linked microdata where two organizations are allowed to share the identity of common individuals who reside in their databases, but the values of sensitive attributes about these individuals must be protected. Both organizations benefit from the process by having access to increased data for analysis. We illustrate our procedure with practical examples and provide formal assessments of disclosure risk and utility.

Robert Baron: “Self-Efficacy and Entrepreneurs’ Adoption of Unattainable Goals: The Restraining Effects of Self-Control,” published by the Journal of Business Venturing

Spears School News Staff
  (October 1, 2015 at 2:06 pm)
Robert A. Baron

Robert A. Baron

Goal setting theory suggests that difficult goals enhance performance on many tasks. When goals are so difficult as to be unattainable, however, they may generate discouragement and reduced motivation, with the result that performance, too, is decreased. Previous research indicates that entrepreneurs are high in self-efficacy and, as a result, may tend to set goals that are so difficult that they cannot realistically be achieved. We reason that self-control, one important aspect of self-regulation, may restrain this tendency and encourage entrepreneurs to set goals that, although difficult, are also attainable. Results offer support for this hypothesis. Goal setting theory also predicts a positive relationship between goal difficulty and performance. We suggest, and find, that this relationship is curvilinear: up to a point, increases in goal difficulty are positively related to firm performance, but beyond this point, further increases in difficulty are negatively related to firm performance. The findings of this study contribute to knowledge concerning the role of entrepreneurs’ self-regulation in the performance of their companies.

Ali Nejadmalayeri: “Costs of Capital and Public Issuance Choice,” published in the Journal of Banking and Finance

Spears School News Staff
  (October 1, 2015 at 9:31 am)
Ali Nejadmalayeri

Ali Nejadmalayeri

The choices of firms raising external capital conform to standard static choice theory in that the higher the (relative) cost of an alternative—both at the overall market level and at the firm level – the less attractive is that alternative. Price elasticities of demand are smaller for more profitable and tangible firms, and larger for larger and more liquid firms. Firm fixed effects account for one-third of the explained choice variation of multiple issuers. Short-term debt is more attractive when the yield curve is steeply sloped, but the demand for equity is inelastic with respect to the market price-earnings multiple.

Steven Shepherd: “When Brands Reflect Our Ideal World: The Values and Brand Preferences of Consumers Who Support versus Reject Society’s Dominant Ideology,” published in the Journal of Consumer Research

Spears School News Staff
  (October 1, 2015 at 9:28 am)
Steven Shepherd

Steven Shepherd

In what ways can brands symbolize America’s defining values, and for whom do these values resonate? Drawing from research on values (Schwartz 1994), the symbolic power of brands (Holt 2004, 2006; McCracken 1986), and system justification theory (Jost and Banaji 1994), the current research explores (1) what values define America’s dominant ideology, (2) which consumers subscribe to these values, and (3) implications for brands that reflect versus do not reflect the dominant ideology. It is proposed that consumers vary in their satisfaction with American society and their endorsement of America’s defining values, and thus differ in the values they endorse versus reject in brands. Five experiments manipulate whether or not the values signaled by a brand are in alignment with the dominant ideology. Consumers more versus less satisfied with American society respond differently to the values a brand signals, affecting brand attitudes, perceptions of a brand’s status as a cultural icon, and purchase intentions. In a sixth experiment, those more versus less satisfied with American society respond differently to consumer-related policy (i.e., a ban on trans fat), depending on the values that the policy is framed as reflecting. Implications for branding and policy are discussed.”

Lex Smith: “The Role of Proximal Social Contexts: Assessing Stigma-by-Association Effects on Leader Appraisals,” published in the Journal of Applied Psychology

Spears School News Staff
  (April 15, 2015 at 2:42 pm)
Alexis Smith

Alexis Smith

Prior research suggests that segregation in the U.S. workplace is on the rise (Hellerstein, Neumark, & McInerney, 2008); as such, leaders are more likely to lead groups of followers composed primarily of their own race (Elliot & Smith, 2001; Smith & Elliot, 2002). Drawing from theory on stigma-by-association, we posit that such segregated proximal social contexts (i.e., the leader’s group of followers) can have detrimental effects on leader appraisals. Specifically, we argue that leaders of mostly Black follower groups experience stigmatization based on race stereotypic beliefs, which devalues them in the eyes of observers. The results of one field study and three experiments demonstrate that performance evaluations as well as perceptions of market value and leadership competence generally tend to be lowest when the proportion of Black followers is the highest. This tendency, however, appears limited to those who are less internally and externally motivated to control their prejudice. Taken together, these findings explain how workplace segregation systematically can create a particular disadvantage for Black leaders.

Dursun Delen: “Predicting Overall Survivability in Comorbidity of Cancers: A Data Mining Approach,” published in Decision Support Systems

Spears School News Staff
  (April 15, 2015 at 2:40 pm)
Dursun Delen

Dursun Delen

Cancer and other chronic diseases have constituted (and will do so at an increasing pace) a significant portion of healthcare costs in the United States in recent years. Although prior research has shown that diagnostic and treatment recommendations might be altered based on the severity of comorbidities, chronic diseases are still being investigated in isolation from one another in most cases. To illustrate the significance of concurrent chronic diseases in the course of treatment, this study uses SEER’s cancer data to create two comorbid data sets: one for breast and female genital cancers and another for prostate and urinal cancers. Several popular machine learning techniques are then applied to the resultant data sets to build predictive models. Comparison of the results shows that having more information about comorbid conditions of patients can improve models’ predictive power, which in turn, can help practitioners make better diagnostic and treatment decisions. Therefore, proper identification, recording, and use of patients’ comorbidity status can potentially lower treatment costs and ease the healthcare related economic challenges.

Robert Baron: “Regulatory Modes and Entrepreneurship: The Mediational Role of Alertness in Small Business Success,” published in the Journal of Small Business Management?

Spears School News Staff
  (April 15, 2015 at 2:38 pm)
Robert A. Baron

Robert A. Baron

Previous studies suggest that entrepreneurs play a key role in the success of their ventures. Little is currently known about how they produce such effects. The present research provides data suggesting that two modes of self-regulation—locomotion and assessment—enhance a firm’s success through their effects on alertness’ components. This mediational model was tested and supported with data from 120 entrepreneurs. Locomotion was positively related to the scanning and search component, while assessment was positively related to the association and evaluation components. These findings are discussed in terms of the role of founders’ self-regulation in the performance of their companies.

Cynthia Wang: “How, When, and Why Recipients and Observers Reward Good Deeds and Punish Bad Deeds,” published in the Organizational Behavior and Human Decision Processes

Spears School News Staff
  (April 10, 2015 at 8:22 am)
Cynthia Wang

Cynthia Wang

The strength of organizational norms often depends on consistent reciprocity, i.e., regular and expected rewards for good behavior and punishments for bad behavior. Varying reactions by direct recipients and third-party observers, however, present the potential for unmet expectations and organizational inconsistency. This paper suggests that these kinds of problems are not only common but predictable. To do so, we present and test a theoretical model of reward and punishment behaviors. Three experiments show that, as predicted, observers consistently punished more than direct recipients did and that direct recipients rewarded more than observers did. Experiments 2 and 3 provided additional insights, showing that observers felt a stronger obligation to punish but a weaker obligation to reward than recipients did. These markedly different approaches to rewards and punishments, and the inconsistencies that they produce, provide the basis for a variety of important organizational implications.

Bill Schwartz: “Do Sophisticated Investors use the Information Provided by the Fair Value of Cash Flow Hedges?” published in Review of Accounting Studies

Spears School News Staff
  (March 2, 2015 at 8:51 am)
Bill Schwartz

Bill Schwartz

An unrealized gain on a cash flow hedge implies that the price of the underlying hedged item (i.e., commodity price, foreign currency exchange rate, or interest rate) moved in a direction that will negatively affect the firm’s profits after the hedge expires. Similarly, a loss implies that prices moved in a direction that will positively affect the firm’s profits after the hedge expires. Prior research shows that unrealized gains/losses on cash flow hedges are negatively associated with future earnings, and that investors’ expectations, as reflected in stock prices, do not appear to anticipate this association. We provide further evidence on this identified mispricing by examining whether sophisticated information intermediaries (i.e., financial analysts) understand the future earnings effects of cash flow hedges. We offer three main results. First, we find that analysts do not correctly incorporate unrealized cash flow hedging gains and losses into their earnings forecast for two- and three-year ahead earnings forecasts. Second, we find that analysts correct their errors after the cash flow hedges have largely expired (i.e., in about one year), and that investors correct their mispricing at this time. Finally, we find that when managers provide forecasts, analysts and investors are better able to process cash flow hedge information. Overall, our results suggest that the fair value accounting model for cash flow hedges combined with complex and incomplete firm disclosures results in investor mispricing, even for sophisticated investors, and that this mispricing can be mitigated if managers provide more transparent, complete, and forward-looking disclosures.

Rathin Sarathy: “A Bootstrap Mechanism for Response Masking in Remote Analysis Systems,” published in Decision Sciences

Spears School News Staff
  (February 24, 2015 at 1:30 pm)
Rathin Sarathy

Rathin Sarathy

National Statistical Agencies and other data custodian agencies hold a wealth of data regarding individuals and organizations, collected from censuses, surveys and administrative sources. In many cases, these data are made available to external researchers, for the investigation of questions of social and economic importance. To enhance access to this information, several national statistical agencies are developing remote analysis systems (RAS) designed to accept queries from a researcher, run them on data held in a secure environment, and then return the results. RAS prevent a researcher from accessing the underlying data, and most rely on manual checking to ensure the responses have acceptably low disclosure risk. However, the need for scalability and consistency will increasingly require automated methods. We propose a RAS output confidentialization procedure based on statistical bootstrapping that automates disclosure control while achieving a provably good balance between disclosure risk and usefulness of the responses.

Robert Baron, Aaron Hill and Craig Wallace: “A Review of Multilevel Regulatory Focus in Organizations,” published in the Journal of Management

Dollie Elliott
  (February 23, 2015 at 4:23 pm)

BaronHillWallace

Over the past fifteen years, regulatory focus has gained prominence as a theory of self-regulatory motivation. Building from personality and social psychology research, the nomological network of regulatory focus spans individuals, groups, and organizations. This review provides an appraisal of regulatory focus from a multilevel perspective as it relates to OB/HR, Strategic Management, and Entrepreneurship. We begin with a discussion of the theoretical foundations of regulatory focus, including hierarchical motivation and regulatory fit theory. Using these foundations, we summarize empirical research on regulatory focus and provide actionable avenues for future research on regulatory focus, with particular attention paid to how individuals adjust their motivational strategies based on context. We also consider regulatory focus as a collective function of teams to develop our understanding of motivational processes in the workplace.

Dursun Delen: “Analyzing Initial Public Offerings’ Short-Term Performance Using Decision Trees and SVMs,” published in Decision Support Systems

Spears School News Staff
  (February 23, 2015 at 2:18 pm)
Dursun Delen

Dursun Delen

In this study, we investigated underpricing of Turkish companies in the initial public offerings (IPOs) issued and traded on Borsa Istanbul between 2005 and 2013. The underpricing of stocks in IPOs, or essentially leaving money on the table, is considered as an important, challenging and worthy research topic in literature. Within the proposed framework, the IPO performance in the short run and the factors that affect this short run performance were analyzed. Popular machine learning methods—several decision tree models and support vector machines—were developed to investigate the major factors affecting the short-term performance of initial IPOs. A k-fold cross validation methodology was used to assess and contrast the performance of the predictive models. An information fusion-based sensitivity analysis was performed to combine the values of individual variable importance results into a common representation. The results showed that there was underpricing in the initial public offerings of Turkish companies, although it was not as high as the underpricing determined in well-developed markets. The market sentiment, the annual sales amounts, the total assets turnover rates, IPO stocks sales methods, the underwriting methods, the offer prices, debt ratio, and number of shares sold influenced the short term performance of initial public offerings of Turkish companies.

Brad Lawson: “The Earnings Quality Information Content of Dividend Policies and Audit Pricing,” published in Contemporary Accounting Research

Spears School News Staff
  (February 23, 2015 at 2:14 pm)
brad.lawson

Bradley Lawson

Recent studies indicate dividends are associated with higher quality earnings. Our study extends the literature by examining whether dividends’ information is associated with auditors’ assessment of their clients’ earnings quality.   Our results show that auditors charge lower fees to dividend-paying clients than to non-dividend-paying clients and the average fee discount ranges from 6.0-10.6 percent.  More importantly, we find dividends have an interactive effect with respect to earnings persistence and earnings manipulation: the negative association between audit fees and earnings persistence is more pronounced for dividend firms; and dividend payouts mitigate the positive relation between earnings manipulation risk and audit fees.  Our results imply dividends reduce audit risk by enhancing clients’ earnings quality information.  We contribute to the literature by showing that auditors reflect the earnings quality information content of firms’ dividend policies in their pricing decisions.  

John Winters: “Estimating the Returns to Schooling Using Cohort-Level Maternal Education as an Instrument,” published in Economic Letters

Spears School News Staff
  (December 8, 2014 at 1:36 pm)
John Winters

John Winters

Formal education is widely thought to be a major determinant of individual earnings. This paper uses the American Community Survey to examine the effect of formal schooling on worker wages. Given the potential endogeneity of education decisions, I instrument for individual schooling using cohort-level mean maternal years of schooling from previous decennial censuses. The instrumental variables results suggest that schooling has a significant positive effect on worker wages. Specifically, an additional year or schooling is estimated to increase hourly wages by 10 percent for men and 12.6 percent for women.

Federico Aime, Aaron Hill and Oleg Petrenko: “Corporate Social Responsibility or CEO Narcissism? CSR Motivations and Organizational Performance,” published in the Strategic Management Journal

Spears School News Staff
  (November 24, 2014 at 10:41 am)

Federico Aime

Federico Aime

Aaron Hill

Aaron Hill

This study builds on insights from both upper echelons and agency perspectives to examine the effects on corporate social responsibility (CSR) practices of CEO’s narcissism. Drawing on prior theory about CEO narcissism, we argue that CSR can be a response to leaders’ personal needs for attention and image reinforcement and hypothesize that CEO narcissism has positive effects on levels and profile of organizational CSR; additionally, CEO narcissism will reduce the effect of CSR on performance. We find support for our ideas with a sample of Fortune 500 CEOs, operationalizing CEO narcissism with a novel media-based measurement technique that uses third-party ratings of CEO characteristics with validated psychometric scales.

Ji Hoon Jhang: “Pardon the Interruption: Goal Proximity, Perceived Spare Time, and Impatience,” published in the Journal of Consumer Research

Spears School News Staff
  (September 24, 2014 at 4:09 pm)
Jihoon Jhang

Ji Hoon Jhang

There is no worse time to be interrupted than right now. Being close to attaining a goal to complete a focal task increases the attractiveness of that task compared to an interrupting task (study 1), makes people less willing to take on some otherwise attractive interruption than if they were farther away from completion (studies 2, 3, and 4), and causes them to perceive that in that moment they have little spare time (studies 3 and 4). Consumers immersed in goal pursuit are affected by local progress on an individual subgoal that supports an overarching goal even if this has no effect on the timing of attaining the overarching goal. Observers do not appreciate the motivating power of proximity to completing subgoals, and this leads them to mispredict the behavior of others (study 5).

Jaebeom “J.B.” Kim: “Inflation Targeting and Real Exchange Rates: A Bias Correction Approach,” published in Economics Letters?

Spears School News Staff
  (September 24, 2014 at 4:02 pm)
Jaebeom "J.B." Kim

Jaebeom “J.B.” Kim

This paper examines whether inflation targeting (IT) influences purchasing power parity (PPP) by a bias correction approach under cross-sectional dependence.  The recursive mean adjustment (RMA) method proposed by So and Shin (1999, 2001) is employed to correct a downward bias in half-life estimates of real exchange rates.  More importantly, the empirical results show that IT lowers variability of real exchange rates and plays an important role in providing favorable evidence for long-run PPP.

Dan Eshleman: “Does the Market Overweight Imprecise Information? Evidence from Customer Earnings Announcements,” published in the Review of Accounting Studies

Spears School News Staff
  (September 2, 2014 at 10:07 am)
Dan Eshleman

Dan Eshleman

We examine how supplier-firm shareholders respond to the earnings announcements for their major customers to test the moderated confidence hypothesis, which predicts overreaction to imprecise signals. In our setting, the moderated confidence hypothesis predicts that supplier shareholders will overreact to the customer earnings news because that news contains imprecise information about the suppliers’ future cash flows. We find evidence that supplier earnings announcement abnormal returns are negatively correlated with supplier abnormal returns at the earlier customers’ earnings announcements, consistent with supplier overreaction. We also find evidence that the overreaction declines with the strength of the economic ties between the supplier and the customer.

Cynthia Wang: “Responses to Normative and Norm-Violating Behavior: Culture, Job Mobility, and Social Inclusion and Exclusion,” published in Organizational Behavior and Human Decision Processes

Spears School News Staff
  (September 2, 2014 at 9:59 am)
Cynthia Wang

Cynthia Wang

Research has demonstrated the effects of culture and mobility on the utilization of monetary rewards and punishments in response to norm-related behaviors (e.g., honesty and dishonesty), but less is known about their effects on the utilization of social inclusion and exclusion. Three experiments found that individuals in high job mobility contexts were more likely to exclude dishonest actors than those in low mobility contexts; job mobility did not affect the level of social inclusion. Experiment 1 demonstrated cultural differences in the utilization of social inclusion/exclusion versus monetary rewards/punishments, with perceived job mobility as an underlying mechanism. Experiment 2 provided a behavioral measure of social inclusion/exclusion. Experiment 3 manipulated job mobility and found that the perceived difficulty of social exclusion mediated the relationship between job mobility and social exclusion. This paper illustrates critical boundary conditions for past findings and provides insight into responses to norm-related behavior across different cultures.

Highlights

·         Americans socially exclude dishonest actors more than Koreans

·         This greater social exclusion is due to higher perceived job mobility

·         Higher perceived job mobility, measured and manipulated, increased social exclusion

·         Social inclusion did not differ by culture or levels of perceived job mobility

Dursun Delen: “Development of a Hybrid Methodology for ERP System Selection: The Case of Turkish Airlines,” published in Decision Support Systems

Spears School News Staff
  (June 23, 2014 at 8:05 am)
Dursun Delen

Dursun Delen

Enterprise resource planning (ERP) systems that aim to integrate, synchronize and centralize organizational data is generally regarded as a vital tool for companies to be successful in the rapidly changing global marketplace. Due to its high acquisition – purchasing, installation and implementation – cost and the wide range of offerings, the selection of ERP systems is a strategically important and difficult decision. Since there is a wide range of tangible and intangible criteria to be considered, it is often defined as a multi-criteria decision making problem. To overcome the challenges imposed by the multifaceted nature of the problem, herein a three-stage hybrid methodology is proposed. The process starts with the identification of most prevailing criteria through a series of brainstorming sessions that include people from different organizational units. Then, due to the varying importance of the criteria, a fuzzy Analytic Hierarchy Process, which handles the vagueness inherent in the decision making process, is used to obtain the relative importance/weights of the criteria. These weighted criteria are then used as input to the Technique for Order Preference by Similarity to Ideal Solution method to rank the decision alternatives. As a real-world illustrative case, the proposed methodology is applied to the ERP selection problem at Turkish Airlines. Because of the collaborative and systematic nature of the methodology, the results obtained from the process were found to be highly satisfactory and trustworthy by the decision makers.