Faculty Research Activity

July 2006

ACCEPTED REFEREED JOURNAL ARTICLES

Lynda Aiman-Smith
Goodrich, N. & Aiman-Smith, L. Discovering the Jobs Your Most Important Customer Wants Done: The Value Innovation Process at Alcan Pharmaceutical Packaging, Research Technology Management. This case study reports how Alcan Pharmaceutical Packaging assessed their value innovation, recognized that to be successful they needed to develop a customer-centric innovation process that could be used by the whole organization, and launched a twelve-step process to develop innovation-opportunity insight with customers across the value chain.

Karen Nunez
“Electric Utility Deregulation: Stranded Costs vs. Stranded Benefits,” Journal of Accounting and Public Policy This study re-examines the electric utility market value-book value relation in light of the changing regulatory climate. The change in the market value-book value relation is examined by comparing the market-to-book ratio in the post-regulatory period to the regulatory period. Additionally, this paper compares the stock market’s valuation of electric utility stranded costs (above market costs) to stranded benefits (below market costs). This paper demonstrates that electric utility market value and book value are no longer aligned. Additionally, this paper extends the research on deregulatory effects by documenting a differential market response to estimated stranded costs versus stranded benefits.

Glenn Voss
Seiders, Kathleen, Glenn B. Voss, Andrea L. Godfrey, and Dhruv Grewal, “SERVCON: Development and Validation of a Multidimensional Service Convenience Scale,” Journal of the Academy of Marketing Science.
As customers have demanded greater convenience in service exchanges, researchers have responded by incorporating the convenience construct into their conceptual models and empirical studies, but a comprehensive, formally validated measure of convenience is lacking. This study conceptualizes service convenience as a second-order, five-dimensional construct that reflects consumers’ perceived time and effort in purchasing or using a service. The service convenience dimensions are salient at different stages of the purchase decision process. Given this conceptualization, the study presents the development and validation of the SERVCON scale, a comprehensive instrument for measuring service convenience. We demonstrate the
independence of the five dimensions within a nomological network that illustrates distinct antecedent and consequent effects. Results reinforce the multidimensional representation, offering insight into the distinctive relationships between each service convenience dimension and antecedents, such as competitive intensity, and consequences, such as repurchase behavior. The findings can help researchers and managers understand a fully conceptualized convenience construct and facilitate the measurement of convenience in future empirical studies.

Richard Warr
“S&P500 Listing Effects: A Horse Race of Theories,” with Bill Elliott, Bonnie Van Ness and Mark Walker, Financial Management. We present an analytical survey of the explanations — price pressure, downward-sloping demand curves, improved liquidity, improved operating performance, and increased investor awareness — for the increase in stock value associated with inclusion in the S&P 500 Index. We find that
increased investor awareness is the primary factor behind the cross-section of abnormal announcement returns. We also find some evidence of temporary price pressure around the inclusion date. We find no evidence that long-run downward-sloping demand curves for stocks, anticipated improvements in operating performance, or increased liquidity are related to the cross-section of announcement or inclusion returns.

"Reassessing the Impact of Option Introductions on Market Quality: A Less Restrictive Test for Event-Date Effects," with Bartley R. Danielsen and Bonnie F. Van Ness, Journal of Financial and Quantitative Analysis
Prior research concludes that option introductions improve the average liquidity of the underlying stocks. We develop an improved, generalizable test to assess whether market quality changes occur on or near an event date. Applying this method to option listing events, we conclude that options do not systematically improve the market quality of the underlying security; rather, the market quality for the underlying security improves before the listing decision. Hazard model tests indicate that improving liquidity is a selection criterion in the option listing decision. Moreover, these tests suggest that the size of a stock’s bid-ask spread is the single most
important option-listing determinant.

“Audit Fees, Market Microstructure and Informational Transparency,” with Bartley Danielsen and Robert A. Van Ness, Journal of Business Finance and Accounting. Auditors, as corporate insiders, have access to private nformation regarding the firm’s financial and business opacity that is unavailable to outside investors. We test whether auditors price their knowledge of firm opacity in their audit fees by examining two competing hypotheses. The first states that higher audit fees may reflect the greater risk that the auditor faces in auditing an opaque firm. Under this hypothesis, market-based measures of opacity will be positively correlated with higher fees. The second hypothesis states that firms buy reputational capital from their auditor by paying high fees in an attempt to improve the market’s perception of the firm’s transparency. In this case, higher audit fees are negatively correlated with market based measures of opacity. Our results are consistent with the first hypothesis, that auditors price opacity risk into their fees.

Walt Wessels
"A Test of the Increment-Decrement Method of Estimating Worklife," Journal of Forensic Economics.

Paul Williams:
Williams, P.F., Jenkins, J.G. and Ingraham, L., "The Winnowing Away of Behavioral Accounting Research in the U.S.: The Process of Anointing an Academic Elite," Accounting, Organizations and Society.

PUBLICATIONS

Lynda Aiman-Smith
Aiman-Smith, L., Bergey, P.; Cantwell, A., Doran, M. (2006). The coming knowledge and capability shortage. Research Technology Management, 49 (4): p15-23.

David Baumer
Robert B. Handfield and David L. Baumer, "Managing Conflict of Interest Issues in Purchasing," The Journal of Supply Chain Management, (42:3) 2006, pp: 41-50.

Mark Beasley
Beasley, Mark S., Al Chen, Karen Nunez, and Lorraine Wright, "A Look at Leveraging Balanced Scorecards into Enterprise Risk Management," Strategic Finance, Vol. LXXXVII: 9, March 2006, pp. 49-55. NOTE: This article won a "Certificate of Appreciation in the Institute of Management' Accountants" annual Lybrand Awards manuscript competition.

Beasley, Mark S., J. Gregory Jenkins, and Roby Sawyers, "Brainstorming to Identify and Manage Tax Risks," The Tax Adviser," Volume 37:3 March 2006, pp. 158-162.

Beasley, Mark S. and Dana Hermanson. "How Sales Executives Can Avoid Accounting Fraud." Review of Business. Volume 27: 1 Winter 2006, pp. 33-40.

Beasley, Mark S., Richard Clune and Dana Hermanson, "Enterprise Risk Management: An Empirical Analysis of Factors Associated with the Extent of Implementation." Journal of Accounting and Public Policy, Volume 24, Issue 6, November/December 2005, pp. 521-531.

Paul Bergey
Aiman-Smith, L., Bergey, P.; Cantwell, A., Doran, M. (2006). The coming knowledge and capability shortage. Research Technology Management, 49 (4): p15-23.

Bruce Branson
"Diversity in Analyst Coverage." Bruce C. Branson and Donald P. Pagach. The Journal of Applied Business Research, Volume 22, Number 3. Third Quarter 2006, pp. 53 - 64.

Joe Brazel
“CEO Compensation and the Seasoned Equity Offering Decision,” with Elizabeth Webb. Managerial and Decision Economics, July/August 2006. Volume 27, Issue 5, pp. 363-378.

Robert Handfield
Blackhurst, Jennifer, Craighead, Chris, and Handfield, Robert, “Towards supply chain collaboration: an operations audit of VMI initiatives in the electronics industry,” International Journal of Integrated Supply Management, Vol. 2, no 2, (January 2006), 91-105.

Handfield, Robert, and Steininger, Wolfgang, “An Assessment of Manufacturing Customer Pain Points: Implications for Researchers”, Supply Chain Forum: An International Journal, vol. 2 no. 6, 2006, pp. 3 – 12.

Robert B. Handfield and David L. Baumer, "Managing Conflict of Interest Issues in Purchasing," The Journal of Supply Chain Management, (42:3), 2006, pp: 41-50.

Karlyn Mitchell
Karlyn Mitchell and Douglas K. Pearce, "Can Business Economists Predict Interest-Rate or Exchange-Rate Movements?" Corporate Finance Review, 10(6) 15-27.

Fay Cobb Payton
Using IRSS Psychology Theory to Understand the Experiences of Under-represented Faculty in the IS/IT Domain (with V. Mbarika and S. D. White) Decision Sciences Journal of Innovative Education, July 2006, pp 191-214.

Don Pagach
"Diversity in Analyst Coverage." Bruce C. Branson and Donald P. Pagach. The Journal of Applied Business Research, Volume 22, Number 3. Third Quarter 2006, pp. 53 - 64.

Doug Pearce
Karlyn Mitchell and Douglas K. Pearce, "Can Business Economists Predict Interest-Rate or Exchange-Rate Movements?" Corporate Finance Review, 10(6) 15-27.

Roby Sawyers
"State and Local Tax Policy: Challenging the Use of Tax Credits and Other Incentives," with William A. Raabe, ATA Journal of Legal Tax Research, 2006, Volume 4.

Glenn Voss
Voss, Zannie Giraud, and Glenn B. Voss, with Christopher Shuff and Ilana B. Rose (2006), Theatre Facts 2005: A Report on Practices and Performances in the American Nonprofit Theatre, Proprietary Report published by Theatre Communications Group.

PRESENTATIONS

Mark Beasley
2006, June. Public Company Accounting Oversight Board (PCAOB) Standard Advisory Group (the SAG). Washington, DC. "Overview of Nine Research Syntheses Projects."

2006, June. North Carolina Association of CPAs (NACPA) Small Business Forum. Chapel Hill, NC. "Enterprise Risk Management: A Corporate Governance Perspective."

2006, May. University of Michigan's Integrated Risk Management and Operations and Global Supply Chain Management Conference. Ann Arbor, MI. "Enterprise Risk Management: A Corporate Governance Perspective."

2006, May. Institute of Industrial Engineers: Annual Meeting. Orlando, FL. "Implementing ERM."

Robert Clark
“Population Aging, Intergenerational Transfers, and the Macroeconomy,” Tokyo, June 26-28, Sponsored by Nihon University Population Research Institute, East-West Center at University of Hawaii, Institute for Futures Studies (Sweden), Vienna Institute of Demography, and Harvard Center for Population and Development Studies.

Presented the opening paper of the conference, Robert Clark, Naohiro Ogawa, and Rikiya Matsukure, "Population Aging, Changing Retirement Policies, and Lifetime Earnings Profiles in Japan" and also chaired a session and discussed a paper. Bob was also a co-organizer of the conference and will edit the papers into a volume that will be published by Edward Elgar in 2007.

Lee Craig
"Economic Causes and Consequences of the Great Depression," conference on Economic Forces in American History, Federal Reserve Bank of New York.

David Flath
"Industrial Concentration, Pricing, and Innovation: Panel Data Analysis", Kyoto University "Distribution Keiretsu, FDI, and Import Penetration in Japan" (presented in Japanese), Kyoto University.

Asli Leblebicioglu
"Financial Integration, Credit Market Imperfections and Consumption Smoothing" at the meeting of Society of Economic Dynamics (Vancouver, July 6-8).

Fay Cobb Payton
“Lacking Cultural Competency: Online AIDS/HIV Health Information Among Minority Women” (with J. Chong and L. Kvasny), 2006 IFIP 8.2 Conference, Poster Session Presentation, Limerick, Ireland

Beverly Tyler
Krause, D.R., Handfield, R.B., and Tyler, B.B. (2006). “The Relationship between Supplier Development Commitment, Social Capital Accumulation, and Performance Improvement.” Presented at Manchester Business School to Faculty and Doctoral Students. Manchester, England.

Tyler, B.B. (2006). “Pros and Cons of Decompositional and Compositional Methods for Exploring Individual Judgments” Presented at Manchester School of Business to Doctoral Students. Manchester, England.

Krause, D.R., Handfield, R.B., and Tyler, B.B. (2006). “The Relationship between Supplier Development Commitment, Social Capital Accumulation, and Performance Improvement.” Presented at The Queens University of Belfast to Faculty and Doctoral Students. Belfast, Northern Ireland.

Bercovitz, J, and Tyler, B.B. (2006). “Contracting between Corporate Sponsors and Academic Researchers.” Presented at The Queens University of Belfast to Faculty and Doctoral Students. Belfast, Northern Ireland.

Paul Williams
Williams, P.F., Jenkins, J.G. and Ingraham, L., "The Winnowing Away of Behavioral Accounting Research in the U.S.: The Process of Anointing an Academic Elite," 8th Interdisciplinary Perspectives in Accounting Conference held at the U. of Cardiff (Wales)

Ravenscroft, S. and Williams, P.F., "Making Imaginary Worlds Real: The Case of SFAS 123R." 8th Interdisciplinary Perspectives in Accounting Conference held at the U. of Cardiff (Wales)

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