TWO ESSAYS: THE IMPACT OF COMMUNITY SOCIAL CAPITAL AND TRUST ON FIRM LEVELS OF ACCOUNTING CONSERVATISM
Dr. Avishek Bhandari, Dissertation Chair
Thursday, July 29th, starting at 1130 am. Live-streamed https://www.facebook.com/UWWCoBE/
Accounting conservatism reflects the judgment and potential bias allowed per accrual-based accounting by choosing to disclose “bad news” ahead of holding a higher bar for reporting “good news.” Financial reporting aggressiveness is a strong focus of current research; I argue that examining accounting conservatism, representing the other side of the financial reporting quality spectrum, is equally important. Most research has focused on the consequences of accounting conservatism, in contrast to my study, which examines potential antecedents.
Essay one of my dissertation illuminates the relationship between community social capital and accounting conservatism. Community social capital is proxied by the social norms and networks of the firm's headquarter location and is collected on a county basis. The reputational pressures of social norms may restrain managerial rent-seeking behaviors, thereby resulting in increased accounting conservatism. Social networks facilitate information exchange, thus reducing information asymmetry and possibly reducing the need for accounting conservatism. Hence, the effect of community social capital on accounting conservatism, including the potentially opposing influence of social norms and networks, creates an empirical question and motivates my study. My research extends literature concerning various firm-specific factors associated with accounting conservatism by uniquely examining the influence of the qualitative characteristics of social capital. The results of my study indicate high community social capital is associated with lower levels of conditional accounting conservatism. Hence, implying the contracting benefits of high community social capital negate the additional contracting benefits of conditional accounting conservatism.
Essay 2 of my dissertation studies the intangible trait of corporate trust and the associated choices about using accounting conservatism. Trust is the reliability and honesty of a relationship. My study measures trust by developing a comprehensive dictionary of trust-related words and phrases via natural language processing known as machine learning. I examine a large sample of firm-year text data from the Q&A (question and answer) section of earnings calls. Corporate demonstration of trust may act as a potential substitute for accounting conservatism, for example, in the context of contracting theory. In contrast, trust may complement corporate accounting conservatism strategies, such as part of the overall corporate culture and risk aversion theory. Motivated by this potential dichotomy, my study explores the relationship between trust and accounting conservatism. My results indicate higher levels of firm trust are associated with lower levels of accounting conservatism, which supports the tendency of trust to act as a substitute for accounting conservatism leanings. My study adds weight to prior research by examining trust and further delineating its relationship with conditional and unconditional accounting conservatism. My study complements and extends text analysis research. To my knowledge, it is the first study to develop a corporate tone of trust dictionary via machine learning to examine its relationship with accounting conservatism.
EMOTIONAL INTELLIGENCE AS AN ANTECEDENT TO INNOVATION CHAMPIONING BEHAVIOR AND THE MODERATING EFFECTS OF CULTURAL TIGHTNESS-LOOSENESS
Dr. K. Praveen Parboteeah, Dissertation Chair
Thursday, June 24th, starting at 1030 am. Live-streamed https://www.facebook.com/UWWCoBE/
Champions make critical contributions to innovation by neutralizing resistance and orchestrating the effort and resources necessary to advance nascent ideas from promising concepts to fully realized products (Howell & Higgins, 1990a). Research has found that successful innovation outcomes are closely correlated to the incidence of specific behaviors exhibited by champions, who promote innovations within organizations (e.g. Howell, 2005; Taylor, Cocklin, Brown & Wilson-Evered, 2011; Yams, 2016). Furthermore, the likelihood of achieving successful outcomes is proportional to the degree and frequency with which these behaviors manifest (e.g. Walter et al., 2011; van Laere & Aggestam, 2016).
This information is valuable in determining which individuals to empower or promote within an organization when prior information about an individual’s capacity and propensity for these behaviors exists. However, no research has yet addressed the practical challenges of managers who wish to hire individuals with championing potential from a pool of unknown applicants. In such situations, a manager’s job is challenging because there is no history with which to predict individual potential for championing behaviors, nor reliable information to gauge the degree to which individuals have this potential.
Organizations with more effective champions are better suited to exploit opportunities in the marketplace and successfully capitalize upon them – making champion selection arguably one of the most important organizational undertakings (Barczak, 1995). Yet, despite clear benefits, a priori selection of champions in practice remains an ambiguous task, as the predictors of the behaviors that characterize higher performing champions remain unidentified and largely unexplored through empirical research (Shea & Belden, 2016).
This research addresses this gap in two parts. The first part examines emotional intelligence (EI) as an antecedent to innovation championing behavior (ICB) and uses linear regression analysis to test this relationship with survey data. Drawing upon Penrose’s (1959) Resource-Based View of the firm, I develop propositions about the characteristics of effective champions, and particularly, about the influence of EI on championing behaviors.
The second part investigates how dimensions of national culture influence the relationship between EI and ICB through the lens of Gelfand’s et al. (2006) multi-level Theory of Cultural Tightness-Looseness. Given the proposed contingency between EI and ICB and knowledge that individual expressions of behavior can vary greatly within and across cultures (Steers & Sánchez-Runde, 2017; Triandis, 1994; Tsui, Nifadkar & Ou, 2007), the impact that the strength of societal norms and conventions and the threat of sanctions have on the EI-ICB relationship is examined. Using linear regression, survey respondents’ adherence to socio-cultural norms are analyzed with respect to their respective EI and ICB scores, producing empirically validated insights into the moderating effects of this aspect of culture relative to EI and ICB.
Dr. Andrew Dahl, Dissertation Chair
Thursday, May 20th at 11:00 am. Live-streamed https://www.facebook.com/UWWCoBE/
Advertising on the internet is growing at the fastest rate of any medium today. However, advertisers are struggling with understanding consumers’ preferences and how to effectively reach and relate to them. There is conflicting evidence on the effectiveness and preference of consumers when it comes to personalized marketing. Generation Z is the newest adult cohort and is estimated to account for 40 percent of all consumers in the United States. However, marketers have not started to focus efforts on understanding this cohort’s preferences for online advertising in general, and specifically personalized marketing efforts. Social influence and the theory of planned behavior provide insight into how a consumer’s attitudes influence behaviors. The research model was tested using a survey of 471 Generation Z students. This research study contributes to the limited knowledge on the preferences of Generation Z consumers for personalized marketing leading to advertising avoidance and brand avoidance when marketers use non-personalized advertising, and the resulting effects on brand loyalty, while expanding on existing theories of social influence and theory of planned behavior.
SAMANTHA CELESTE GIBSON
Dr. Maxwell K. Hsu, Dissertation Chair
Omnichannel for retail organizations has grown significantly over the recent decade. Retailers are challenged to find ways to connect with tech-savvy consumers for repeat visits and positive word-of-mouth referrals. The digital decade has introduced many purchase and communication options such as buy online and ship to consumer, buy online and ship to store, along with social media interactions and the integration of all these channels creates a need for a more seamless transaction to the customer. The Covid-19 crisis has certainly revealed the advantages of omnichannel, especially in its capacity to satisfy customer needs for flexible but also reliable shopping experiences; for the inability to physically shop was limited by the virus and the ability to shop online with delivery increased. In retail, the holy grail is customer trips to the location; the Covid-19 crisis has highlighted those issues as many retailers without omnichannel implementations have gone bankrupt and those retailers that have implemented omnichannel options could overcome the challenges posed in our current climate.
The challenge for retailers today is that with greater channel options, the more the complex the store environment. Retail stimuli, such as price, store atmosphere, service quality, and product assortments are as important as the integrated channel synergies. A clean store, with great service, competitive attractive prices and optimal product assortments remains top priority as does the need to integrate seamless transactions and channel options. The purpose of essay one is to propose a theoretical framework that will combine the physical brick-n-mortar store attributes combined with omnichannel elements to support store traffic in terms of revisit intentions. Built upon the theory of planned behavior (Ajzen, 1991) and the stimulus-organism-response (SOR) framework (Mehrabian & Russell, 1974), the proposed conceptual model will give researchers the ability to empirically examine how all the stimuli combined are necessary for improved customer experiences, satisfaction, and revisit intentions. The framework will adopt both the stimulus-organism-response (SOR) framework along with the theory of planned behavior. Ensuring a seamless customer journey, both offline and online, is critically important to assure supplier and retailer relationships (Ailawadi & Farris, 2017), including measuring how successful the brick-n-mortar supports the online sales component.
One retailer that is experiencing challenges with customer trips is convenience stores. Convenience stores have been slow to respond to the digital decade. Research on the convenience store industry from a consumer perspective is lacking and this lack of consumer academic research on convenience stores is a notable premise of this study. Essay two will apply the theoretical model developed in essay one to customers of convenience stores. The intention of the empirical study is to explain the convenience store’s consumer behaviors/experiences and to figure out how to improve revisit intentions with certain omnichannel aspects. In addition, customer insights into the convenience store environment will help convenience retail practitioners better understand the relationship among customer preferences, hedonic or utilitarian experiences, satisfaction, and revisit intentions. The convenience store industry, with limited capital, must appreciate what channel options will supply them highest return on investment. The industries takeovers have led to many different IT systems that are difficult to integrate and are aging.
By applying the conceptual model developed in essay one to the convenience store industry, one can confirm through rigorous analysis of customer preferences in convenience stores and identify if they are more hedonic-oriented versus utilitarian-oriented and what elements in the store may add or detract from the overall customer satisfaction and revisit intentions. As previously mentioned, the conceptual model developed is based on the theory of planned behavior and the stimulus organism response framework (Ajzen, 1991; Mehrabian & Russell, 1974). Customers in convenience stores are not returning; could the issue be the stimuli in the store that is leading to decreased visits? Will certain stimuli such as omnichannel help with more of a hedonic customer experience to enhance satisfaction and revisit intentions? Focusing on in-store stimuli, such as price, product assortment, service quality and store atmosphere (overall cleanliness and food cleanliness), combined with a digital platform that support synergistic digital omnichannel options, this research will uncover the customer profile of a convenience store and the needed changes the retail industry needs to overcome their apocalypse.
AHMED BUX ABRO
Dr. Paul Ambrose, Dissertation Chair
The marketing landscape has grown complex and fragmented due to the growth of digital touchpoints. The proliferation evolves into siloed, depersonalized, and less effective touchpoints causing discord and broken relationships that result in disengaged customers. To address research and practice needs, we theorize, conceptualize, and empirically validate Touchpoint Orientation (TO), a multi-touchpoint approach to effectively position relevant and personalized touchpoints to establish strong firm-customer relationships. This research offers a framework that leverages antecedent of TO Proactiveness and TO Technology to enhance desired outcomes of customer engagement (CE), trust (T), loyalty (CL), and customer satisfaction (CS). Study 1 supplemented the TO theoretical perspective by gaining support from the practitioner’s perspective, achieved using grounded theory and semi-structured interviews of 21 marketing and sales professionals, academicians, and customers. Study 2 used 2x2x3, a scenario-based experiment in the context of firm-customer touchpoints, by employing 636 consumer participants. It established empirical support for an interaction effect of TO Proactiveness on the relationship between TO Technology and outcome variables (CE, T, CL, and CS) such that the impact of AI-Enabled TO on outcome variables is stronger for Reactive TO than Proactive TO. Our research offers a touchpoint positioning approach for practice and expands the customer engagement framework (Brodie et al., 2011; Vivek et al., 2012).
ALECIA J. REINHARDT
Dr. Bakhtear Talukdar and Dr. Avishek Bhandari, Dissertation Chairs
CEO political ideology refers to whether the CEO’s personal belief system is aligned to conservativism (Republican party) or liberalism (Democrat party). The Upper Echelons Theory, UET (Christensen, et al. 2015 and Hambrick and Mason, 1984) shows how the board and CEO apply personal beliefs to firm decision-making. This study includes two essays. The first essay reviews the impact of the CEO’s political ideology on wealth effects from changes in the levels of idiosyncratic and systematic risk. Idiosyncratic risk is the expected firm specific loss when the loss exceeds the Value-at-Risk (VaR) level (Yamai and Yoshiba 2005) and systematic risk is the risk inherent in the market. No prior literature examines this linkage. The second essay analyzes differences in stock market rewards when new products are announced given the CEO’s political ideology. In particular, the study reviews the impact on firm stock performance by assessing the cumulative abnormal returns (CAR). Prior studies have not linked CEO political ideology with CAR and firm new product announcements. Both essays are expected to inform shareholders and Boards of Directors that Republican CEOs provide positive wealth effects for firms when idiosyncratic and systematic risk changes and that market rewards are more favorable for Republican CEOs when new products are announced.
BRIAN A. VANDER SCHEE
Dr. Jimmy Peltier, Dissertation Chair
Consumers are comfortable with social media and accept firms occupying the same digital space. They consume and create content in social media at varying levels as some consumers more readily engage with firms online than others. Those consumers may not only communicate with the brand, they may develop a brand relationship as a consequence. The progression of brand relationship may develop from brand involvement to brand advocacy where consumers speak positively on the brand’s behalf without compensation. Knowing the consumer factors that lead to online consumer engagement and having a better understanding of branding outcomes will help firms to more effectively plan and execute a social media marketing strategy. Although many studies have considered antecedents, consequences, and measures of online consumer engagement, a comprehensive review of current studies with recommendations for future research is needed to have a better understanding of online consumer engagement. Essay 1 addresses this need.
In addition, research is needed to examine social media dispositions and social media goals as antecedents of consumer engagement in social media as well as a progression of brand engagement outcomes as a consequence. Essay 2 fills the gap by investigating the effect of consumer antecedents, namely social media dispositions (social media information sharing and social media trust) and social media goals (social media information seeking and social media experience) on consumer engagement. The foundation of the study is grounded in uses and gratifications theory. Further, the study considers the effect consumer engagement has on brand engagement including brand involvement and brand advocacy. Regression analysis and structural equation models (SEM) was used to analyze the data from the completed surveys. The results provide implications for firms including how to more efficiently spend on social media marketing by targeting consumers who are more likely to engage online with appropriate content strategy leading to brand advocacy.
DAWN A. SHEARROW
Dr. K. Praveen Parboteeah, Dissertation Chair
Dr. Aditya Simha, Dissertation Chair
This two-essay study investigated two growing areas of interest related to employee stress: citizenship fatigue and the “dark side” of workplace friendships. Essay one hypothesizes that person-organization fit is negatively related to citizenship fatigue and that citizenship fatigue is positively related to turnover intentions and negatively related to organizational commitment. Essay two hypothesizes workplace friendships are negatively related directly to psychological detachment and work-life balance, while positively related to emotional exhaustion. Both studies applied the conservation of resources (COR) theory and utilized a cross-sectional research design of employees from diverse organizations in a midwestern town collected over T1 and T2. The relationships of the constructs were analyzed via regression analysis and the PROCESS macro in SPSS. Essay one had all hypotheses supported, while essay two had none. Suggestions for future research and implications for practitioners are provided.
Keywords: Citizenship Fatigue, Organizational Citizenship Behavior, Workplace Friendship, Psychological Detachment, Well-Being, Exhaustion, Work-Life Balance, Conservation of Resource (COR) Theory, Border/Boundary Theory
Dr. Bakhtear Talukdar, Dissertation Chair
The chief executive officer (CEO) is the face of an organization. Nonetheless, since the Sarbanes-Oxley Act of 2002, the importance of the chief financial officer (CFO) has increased (Alkhafaji, 2007; Schminke, Arnaud, and Keunzi, 2007). The CEO and CFO are the top two executive positions on the top management team (Hambrick and Mason, 1984). Essay One examines similar characteristics of the CFO and CEO against various firm performance metrics, with emphasis on cash cycle and operating cycle. Cash cycle is the number of days it takes a company to convert its investment in inventory to sales and back into cash. Operating cycle is sum of inventory cycle and receivable cycle. The theory of cash management (Gitman, Moses, and White, 1979) emphasizes the importance of cash flow management as a means for a company to maintain its solvency. The responsibility to maintain solvency primarily belongs to the CFO.
The performance metrics have not been attributed to any particular characteristics of either the CFO or CEO. This analysis examines which attributes contribute to a CFO or CEO having more influence on firm performance.
Essay Two continues the study of CFOs and CEOs. I analyze the impact of the CEO’s and CFO’s social capital network on tail risk (defined here as market risk: the average return below the 10th percentile of the yearly distribution of the predicted returns from the market model, and idiosyncratic risk: the average return below the 10th percentile of the yearly distribution of the residuals from the market model). The CEO and CFO are the most dominant members of the top management team, driving organization outcomes by way of strategic initiatives (Amoozegar, Pukthuanthong, and Walker, 2017). Relationships between the CEO, CFO, and a firm’s stakeholder groups form to create a social network that can evolve into social capital (Kanihan, Hansen, Blair, Shore, and Myers, 2013; Pappas, Ongena, Izzeldin, and Fuertes, 2017). I test whether the CEO and CFO, with high social capital, can reduce the probability of their company stock persistently landing in the bottom ten percent of yearly returns.
Top management team is supported by upper echelons theory (Hambrick and Mason, 1984). Social network is supported by social capital theory (Lin, Burt, and Cook, 2001). Tail risk is supported by extreme value theory (Fisher-Tippett, 1928). There is a gap in the literature void of these three variables being examined together. Analyzing the relationship between CEO and CFO social networks and tail risk is important because extreme negative returns will have a negative effect on market capitalization and valuations. In addition, analyzing the relationship between the C-suite members’ social network and tail risk will provide an indication of the network’s persuasive ability, for example, to obtain additional financing.
My research questions are as follows:
ELIZABETH M. BORGEN
Dr. Aditya Simha, Dissertation Chair
The American education system is often regarded as an engine of social mobility (Bowen, Kurzweil, Tobin, & Pichler, 2005). However, research shows that the higher education system can instead play a major role in perpetuating social inequalities (Radunzel, 2018; Stephens, Fryberg, Markus, Johnson, & Covarrubias, 2012; Covarrubias et al., 2018). First-generation college students often lack the social and cultural capital of their peers, and graduate at much lower rates than those whose parents have obtained a bachelor’s degree. This study uses an experimental research design to evaluate an intervention strategy (summer bridge program), grounded in self-efficacy, designed to reduce the gap in college success between first-generation students and their peers. Differences in self-efficacy development among males and females are examined and explored in greater depth through a second qualitative study, using semi-structured focus group interviews. Imposter Phenomenon and Stereotype Threat are incorporated to highlight gender differences in self-efficacy. Contributions will inform retention strategies in higher education, specifically designed to support first-generation college students.
LINDA L. BARTELT
Dr. Jon M. Werner, Dissertation Chair
Every day, hundreds of college interns join organizations as the race for highly skilled talent escalates. Two-thirds of college graduates now have at least one internship experience, with nearly fifty percent of interns becoming full-time employees in their sponsoring organization (National Association of Colleges and Employers, 2019). If internships are the nexus for an organization's entry-level jobs, why is there scant empirical evidence on the impact of interns in today’s environment of agile, work teams? This dissertation examines how interns impact work teams based on newcomer socialization theory and the influence of positive expectations on enhancing performance and productivity building on the Pygmalion and Galatea theories. A mixed methods approach is used, whereby both qualitative and quantitative methodologies are used in two related essays (Onwuegbuzie & Corrigan, 2014).
Essay One consists of two parts or studies. Study one is an interpretative study that seeks to extend the theories of newcomer sensemaking and sensegiving (Weick, Sutcliffe, & Obstfeld,2005) to interns as organizational newcomers. The research evaluates the cues and signals that are sent by team leaders and team members to interns and the cyclical process of interpretation and proactive behaviors. Within the socialization framework, interns adapt and perform which reinforces the commitment of social inclusion - you are one of us. Study two (in Essay One) provides quantifiable evidence that interns have a positive impact on work teams based on team leaders and team members average impact rating.
Essay Two emphasizes newcomer socialization theory and broadens the conceptual framework to examine the relationships of newcomer/interns, team leaders, and team members during the process of social adjustment. A three-month field study was conducted among diverse work teams – with full responses from 71 interns, 45 team leaders, and 40 team members in manufacturing, technology, and professional services firms. Building on the Pygmalion and Galatea theories, the model defines the relationship of expectations from newcomer/interns, team leaders, and team members on intern empowerment and role performance mediated by social exchanges (Chen & Klimoski, 2003; Chen, 2005). Intern performance expectations had a significant, positive influence on social exchanges with his or her team leader, team member, and the intern’s sense of empowerment. Furthermore, team leader and team member performance expectations positively influenced their ratings of intern role performance.
This dissertation seeks to expand the body of knowledge of newcomer socialization and to develop a greater understanding of the interdependent process between newcomer/interns, their social context, and their relationships among team leaders and team members. Furthermore, it answers the call from practitioners to quantify the strategic value of internships. Keywords: Newcomer Socialization; Sensemaking; Pygmalion and Galatea Theory; Internships
SUANNE M. BARTHOL
Dr. Balaji Sankaranarayanan, Dissertation Chair
Companies continue to invest in project management approaches as they increase the likelihood of project success, help advance firm strategies and value, thereby increasing competitive advantage. Increasingly, mature organizations are investing in Project Management Offices (PMOs) to streamline managing of projects, and to avoid pitfalls and failures in project management. However, if PMOs are touted as the solution to the project failure problem, then why are the overall project results still so dismal? To address this research problem, this dissertation evaluated PMO performance using social capital theory, by theorizing and testing the impacts of social capital from both linear and non-linear perspectives. Further, antecedent constructs namely PMO role, locus of control and PMO structure were hypothesized to have differential impacts on PMO social capital. Finally, this study utilized organizational culture theory to hypothesize that organizational culture will have a moderating influence on the relationship between social capital and PMO performance. The study was empirically validated using 209 completed surveys of active PMO participants. Structural equation modeling using Partial Least Squares (PLS) was used to test the hypothesis.
The study findings reveal that social capital has both a linear and an inverted curvilinear effect on PMO performance. The afore-mentioned antecedents contribute to the creation of social capital, and the evaluation of social capital's distinct dimensions provides valuable insight into the impact on PMO performance. Additionally, the study findings also show that culture negatively moderates the effect of social capital on PMO performance.
These findings inform the extant literature on PMOs by shifting focus from the decision choices and boundary conditions of the PMO to its value proposition. This dissertation empirically validates that there exists an optimum level of social capital in driving PMO performance, providing a divergent perspective to the typical positive linear effects associated with social capital. The study also offers an alternative perspective on organizational culture and its impact on performance. Findings from this dissertation also have implications for practitioners, as it highlights the importance of PMO structure, control, and social capital in achieving superior PMO performance.
Keywords: Project Management Office, PMO, social capital, relational social capital, cognitive social capital, structural social capital, PMO performance.
DEREK E. ROWLAND
Dr. K. Praveen Parboteeah, Dissertation Chair
Employee stock ownership plans (ESOPs) are federal governed, tax incentivized plans that distribute equity shares of the business to its employees. These types of plans are growing in popularity and are currently underserved in the academic literature (Blasi, Freeman, & Kruse, 2013). While it is widely believed that these types of plans create a highly engaged workforce which drives increased firm performance, this is still highly disputed in the literature (Kim & Patel, 2017). The purpose of this research is to examine the ESOP phenomenon to determine if ESOPs truly impact employee engagement through the ownership mentality construct. This dissertation utilizes social exchange theory and alignment theory to theorize that ownership mentality partially mediates the employee engagement model. Further, using critical mass theory, from physics, this study postulates that firm size negatively influences the relationship ownership mentality has with the antecedents oh employee engagement. The research model is tested using three different models: a) primary literature model, b) primary NBER model, and C) secondary NBER mode. Data for the secondary research model was obtained from a survey funded by the National Bureau of Economic Research (NBER) from 2002 to 2005. The primary research models were tested using a 2020 survey, conducted for this dissertation, of employee owners and non-employee owners, to show that employee ownership had a direct correlation to employee ownership mentality. Employee ownership mentality was then tested in Saks’ (2006) antecedents and outcomes of employee engagement model for partial mediation of the employee engagement relationship. Lastly, critical mass theory was used to establish a moderation effect on ownership mentality based on firm size. The research found support for all its hypotheses, ESOPs do lead to ownership mentality, ownership mentality does partially mediate the employee engagement model and that as firm size increases there is an impact on the ownership mentality relationships. Findings from this study have important implications for research and practice. It provides the framework for all future ESOP research and it provides better guidance to ESOP managers on how to maximize their most important resource, their team.
Ronald L. Pegram
Dr. Jimmy Peltier, Dissertation Chair
Researchers and policy-makers have reviewed the effects that entrepreneurship has on wealth creation across various regional contexts. Typically, entrepreneurship has been associated with higher levels of prosperity and is often the best ‘cure’ for socioeconomic ills within a community. However, the United States (U.S.) has seen a peculiar phenomenon in that minority-owned firms tend to underperform white-owned firms in general. This disparity hampers both the economic prosperity for the affected groups and the U.S., overall.
The literature does present reasons why minority firms under-perform white firms in general. Some explanations for the performance gap between minority and white firms are: (1) differences in wealth levels between minority and white business owners, (2) location of many minority businesses in primarily minority and low-income areas, (3) evidence of racism in lending decisions made by banks and importantly, (4) the propensity for many minority entrepreneurs to be ‘discouraged borrowers’, who need money but do not apply for loans. Of these various reasons, the discouraged borrower phenomenon is of particular interest for this study because being a discouraged borrower is a cognitive bias that may be reformed. As such, it is a factor that a minority entrepreneur can be aware of and control much easier than is the case with the other factors, such as lower wealth levels, or uneven playing fields because of racism.
The psychological reasons for discouraged borrowing have not been extensively studied in the literature, and are virtually silent with regard to minority entrepreneurs. This dissertation fills this gap by examining three constructs with the opportunity to explain discouraged borrowing and its impact on performance: (a) how varying levels of entrepreneurial orientation (EO) affect minority entrepreneur levels of discouraged borrowing (b) how varying levels of EO influence the trust levels of minority entrepreneurs for partners of different ethnicities (c) and how the trust levels of minority business owners for business partners who are not of the same ethnicity (co-ethnic) influence social capital and ultimately firm performance. EO is used because strategic orientation is critical for a firm’s success and high levels of EO have been shown to be associated with higher levels of firm performance. An argument will be made that higher levels of EO are also associated with higher levels of both trust and performance for minority entrepreneurs.
This dissertation uses two models – the first is a multivariate model to show the direct effects the sub-dimensions of EO have on a minority entrepreneur’s propensity to be a discouraged borrower and firm performance. The second is a structural equation model (SEM) to show the role that Interracial Distrust plays in influencing a minority entrepreneur’s social capital, willingness to use bank loans, and firm performance.
The dissertation provides evidence that EO and Interracial Distrust are competing factors – EO has positive association with firm performance both directly (as shown in the multivariate model) and indirectly but through several channels (as shown in the SEM model). Conversely, Interracial Distrust appears to be negatively correlated with any of the channels associated with greater firm performance. This suggests that although Interracial Distrust may well be a learned response to negative behaviors with white partners who engage minority entrepreneurs, care must still be taken on the part of the minority entrepreneur to adopt productive relationships with external business partners and bankers for the greatest odds of success.
Dr. Chih-Chen Lee, Dissertation Chair
A core professional value of the accounting profession is the dedication to the public interest. The purpose of this study is to examine factors that impact attitudes towards the core professional value of public interest dedication. This study finds CPAs who have higher professional commitment have a greater degree of public interest dedication. This study also finds CPAs employed in smaller public accounting firms are more professionally committed than CPAs employed in larger public accounting firms and firm size moderates the relationship between professional commitment and public interest dedication. I find professional commitment positively correlates to public interest dedication but only for CPAs in smaller public accounting firms. This study does not find that job function (taxation, audit and assurance, and advisory) impacts public interest dedication. This study contributes to the existing literature by examining factors that impact the attitudes towards public interest dedication.
Ahmad M. Kabil
Dr. Andrew Ciganek, Dissertation Chair
With the expansion of using Decision Support Systems (DSS) in making strategic business decisions and the wide spectrum of stakeholders affected by such usage, the need for considering ethical issues in the system arises. Despite the growing use of DSS, numerous scandals due to unethical decisions have been reported. Several scholars recommend considering ethical attributes along with the business attributes that are usually employed in the design of DSS. However, the balanced fit between DSS and both business and ethical requirement attributes has not been investigated. The current research is of an exploratory nature to investigate the impact of achieving such balanced fit on system performance. The scope of the study focuses on enterprise resource planning (ERP)-based DSS.
A research model leveraging the theory of Task-Technology Fit (TTF) is proposed to examine the impact that attaining a balanced fit between ERP-based DSS and both business and ethical requirement attributes has on perceived system performance. A large-scale study was conducted using a random sample of IT practitioners in private commercial companies in the U.S. The U.S. has one of the highest rates of ERP adoption in the world and should offer insights relevant to practitioners in organizations worldwide. Existing scales were adapted and used for most constructs that comprise the research model, while a q-sorting procedure was conducted to develop and validate new constructs. The survey was pilot tested and revised before participants were solicited for the large-scale study.
The data analysis was conducted in three phases: Descriptive Statistics and Scale Reliability, Multi Regression Modeling, and Partial Least Squares Structural Equation Modeling (PLS=SEM). The results show that most ERP-based DSS implementations place a greater emphasis on business requirement attributes over ethical requirement attributes, which results in lower levels of a system’s balanced fit. Organizations that equally emphasize and have a balanced fit between business and ethical attributes have a significant impact on the perceived system performance. Achieving a balanced fit accounts for more variance in perceived system performance than focusing on business or ethical attributes alone. The company’s ethical environment has a positive effect on achieving a balanced fit between business and ethical attributes.
This dissertation contributes to the DSS literature in three ways. First, it demonstrates empirically the need for achieving a balanced fit of DSS to both business and ethical requirement attributes. Second, it extends TTF to “Task-Technology Balanced Fit.” Third, it adds a new concept of “Ethics-Governance-by-Design” to the DSS research area.
Keywords: DSS; ERP-based DSS; Theory of Task-Technology Fit (TTF); Task-Technology Balanced Fit (TTBF); Ethics-Governance-by-Design.
Dr. James Peltier, Dissertation Chair
Technology is re-shaping the patient-provider relationship. Digital health tools such as electronic medical records, patient portals, and telemedicine provide patients the opportunity to engage with healthcare systems remotely at their convenience. Telemedicine, a platform that allows patients to be seen by a provider remotely with audio and video capabilities, shows great potential for the future of healthcare delivery with increased access, convenience, continuity of care, and cost savings. While there is strong promise for telemedicine, implementation by healthcare organizations and adoption by patients have been slower than expected. Previous research has examined telemedicine usage through the technology acceptance model (TAM) and diffusion of innovation (DOI). While these theories have found initial results, they lack in providing conceptual and empirical frameworks that explain value creation and the relational elements of telemedicine. This research builds upon these theories, using elements of TAM, DOI, and SERVQUAL to develop factors exploring patients’ attitudes towards telemedicine usage. Two theoretical models are proposed and examined utilizing Service Dominant Logic (SDL) to extend our knowledge of the role of the patient as value co-creator. Specifically, this study tests the direct relationships of six attitudinal factors that influence patients’ likelihood to use telemedicine. In addition, the examination of antecedents and relationships of telemedicine attitudes provide further insights into the complex nature of digital health. Multiple linear regression and structural equation modeling (SEM) provide analysis of survey results from over 1,000 healthcare patients exploring value co-creation in the telemedicine context.
This study provides implications for marketing and health literature regarding value co-creation in telemedicine. First, this study offers empirical insights into patients’ attitudes towards telemedicine. Previous studies have not fully examined the impact of patient attitudes on telemedicine usage. In addition, patient attitudinal measurement items are developed and tested that can be utilized for future research. Second, SDL foundational premises offer insights into telemedicine value creation through the lens of the patient. Specifically, this study explores the role of the patient as value co-creator, determiner of value, resource integrator, and initiator of propositions as value-in-use. Further, this study examines the role of value proposition configurations in the development of TM value co-creation. Third, results indicate patients tech savviness significantly influences all TM usage attitudes in the Model 2 framework including relative service quality, access, care uses, impact on patients, and likelihood to use. These findings align with SDL recognizing the importance and role of patients’ operant resources in value determination and usage decision-making. Finally, the examination of antecedents and relationships of telemedicine provides further knowledge into the multi-faceted and complex telemedicine decision-making process.
CAMELIA L. CLARKE
Dr. James Peltier, Dissertation Chair
Friday, May 17th, 9:30 a.m. | Hyland 2203
This study proposes an empirical model to investigate organizational learning’s (OL) and entrepreneurial orientation’s (EO) impact on the external relational network (ERN) engagement and firm performance of minority ethnic businesses (MEBs). Multivariate regression analysis and structural equation modeling (SEM) are used to examine the individual and combined relationship of the variables. The study population comprises African-American, Asian, Latino, and Native-American business owners located in the U.S. Midwest region area. The results indicate that OL and EO incentivize MEBs to engage with ERNs to extract knowledge-based resources to gain superior performance.
KENYATTA N. BARBER
Dr. Dennis A. Kopf, Dissertation Chair
Friday, May 17th, 11:00 a.m. | Hyland 2203
This dissertation is a two-paper mixed methods study exploring the micro and macro operations of the for-profit higher education industry. The analysis comprises of one-on-one interviews and an electronic survey; utilizing a sample of current and former for-profit higher education employees. Paper one focuses on the ethics of salespeople specifically looking at ways for-profit college recruiters’ (salespeople) rationalize their (un)ethical behavior through neutralization techniques. Techniques of Neutralization can affect ethical intentions, allowing for (un)ethical behavior to occur (Serviere-Munoz & Mallin, 2013). Paper two focuses on organizational ethical climates of for-profit higher education institutions utilizing stakeholder theory (Donaldson & Preston, 1995) along with organizational ethical climates (Wimbush & Shepard, 1994; Cullen, Parboteeah & Victor, 2003). The paper specifically, investigates if stakeholders have an impact and put pressure on organizational ethical climates in for-profit higher education institutions. The second study explores if converting for-profits into nonprofit higher education institutions has an effect on organizational ethical climate compared to publicly traded for-profit higher education institutions.
The analysis comprised of exploratory sequential mixed method design; utilizing a sample of current and former employees of for-profit higher education institutions. Model one findings from the interviews indicated that neutralization techniques were utilized by salespeople within the for-profit higher education industry and those techniques resulted in (un)ethical behavior. Specifically, results from the quantitative analysis show that four of the five techniques of neutralization were valid and significant measures (denial of responsibility, denial of victim, condemn the condemner and appeal to higher loyalties) while denial of injury measure did not satisfy the validity check. From a macro perspective common themes from interviews suggested that stakeholders did have an impact on the organization’s ethical climates. The quantitative study resulted in an alternative model that added employee engagement as the dependent variable. Overall, the quantitative data proved that ethical climate does have a significant impact on various moderating and independent variables. Ethical climate negatively impacts denial of injury and stakeholder pressure. Where ethical climate positively impacts ethical intentions directly and employee engagement indirectly. The impact of internal and external stakeholders within the organization is a negative relationship on ethical intentions and employee engagement.
Mike Chitavi Dissertation Defense, Thursday March 22 at 12:30pm in Timmerman Auditorium
This three-essay dissertation examines contemporary issues in Algorithmic Trading (AT) along the Pathway of commodities futures. The Pathway is defined as a route, formed by linked securities in the same or a different exchange (i.e., the Chicago Board of Trade has linked futures of soy bean, meal, and oil futures—also called the Soybean Complex[ 1]).
In reviewing the technology and capital markets microstructure innovation, empirical studies find that the AT's technology is important to understanding how an algorithmic trade is processed by an exchange, the different types of trading, the objectives and challenges. Studies conclude that AT is data-driven and heavily reliant on cutting edge infrastructure (Treleaven et al., 2013). Most recently, capital markets infrastructure innovations have created a new AT strategy called High-Frequency Trading (HFT), which is defined as an investment strategy aimed at making profits by rapidly buying and selling securities, with a typical holding period of seconds or milliseconds (Brogaard, Hendershott, & Riordan, 2014). The main emphasis within generic AT is holding periods that are in minutes, days, or longer, whereas HFT, by definition, holds its position for a very short horizon and tries to close the trading day in a neutral position (Brogaard et al., 2014).
Within the agricultural commodities sector, the United States Department of Agriculture (USDA) reports that soybean crop production has exponentially grown since the 1950s, while within the grains derivatives markets, research finds that soybean futures price discovery is dynamic and evolving (Adrangi, Chatrath, & Raffiee, 2006; Han, Liang, & Tang, 2013; Mitchell, 2010; Rechner & Poitras, 1993; Simon, 1999; Tinker, Gerlow, Irwin, & Zulauf, 1989). According to research by Joseph (2014), new information entering the grains futures markets is quickly and efficiently incorporated into security prices. Furthermore, Lehecka, Wang, & Garcia (2014) suggests, price gains or losses are gone in ten minutes. Alongside this, the introduction of algorithmic trading and its profitability has spurred interest among traders and academic researchers. Consequently, AT studies are finding improved price discovery, while other studies are raising concerns about hikes in volatility and market impact, among other challenges (Aı̈t-Sahalia & Jacod, 1999; Brogaard, Hendershott, & Riordan, 2014; Chaboud, Chiquoine, Hjalmarsson, & Vega, 2014; Pirrong, Aı̈t-Sahalia, & Jacod, 1999).
Chapter 2 examines whether or not information transfer differs in the spot and futures markets along the commodities futures Pathway during contango and backwardation. Prior research (Brooks, Rew, & Ritson, 2001; Chen, Lee, & Zeng, 2014; Chow, McAleer, & Sequeira, 2000;Judge & Reancharoen, 2014; Nicolau & Palomba, 2015;Pindyck, 2001;Weron & Zator, 2014) finds links between spot and futures prices. This literature has focused on the spot and futures price linkages. For simplicity, Contango is defined as the spot prices being less than the futures prices, while backwardation is the reverse. As the chapter demonstrates, the review of contango and backwardation along the Pathway allows an investigation on additional scholastic areas.
Chapter 3 examines the Pathway along the commodities futures markets by combining information transfer and how it relates to futures prices. It evaluates the joint dynamics of information transfer across different counter-claim markets of futures by estimating the speed and direction of information and prices within the Pathway. This study will contribute to the arbitraging trader’s holistic understanding of price discovery among commodities that are linked and provide a better understanding of the direction and movement of price and volume across markets. This will contribute to the body of literature on AT price discovery across markets.
Chapter 4 is a study of whether AT strategies along the commodity Pathways are profitable. Earlier studies in commodity futures trading showed mixed results. For example dynamic strategies were found to improve portfolio performance; but introduced significant complexity (Fung & Hsieh, 1997). Other strategies demonstrate that the annualized returns of futures traditionally have shown zero returns. More recent studies by Erb and Harvey (2006) contradicts this finding, and demonstrates that futures portfolios can act like equity portfolios with profitable returns. The results of this study may be important because the isolation of profitable trades may help traders to devise better cross-market trading strategies to achieve higher portfolio returns and lower risk exposure .
Collectively, these three essays examine information transfer and pricing dynamics within the Pathway of commodities futures. Therefore, this study contributes to the study of securities interconnectedness and the cross-markets feedback-effects that are conditional to information transfer, price dynamics, and the innovated microstructure. It will also contribute to the body of knowledge of spot and futures market, the cross-market linkages, the debate on contango and backwardation and price discovery. This will also advance the practitioner’s trading techniques.
Chair: Dr. Pascal Letourneau
TOWARDS A THEORY OF PATIENT SATISFACTION: STUDIES ON THE IMPACTS OF PATIENT-TECHNOLOGY FIT AND ELECTRONIC PATIENT PORTAL USE ON PATIENT SATISFACTION OUTCOME
AARON P. KINNEY
Dr. Balaji Sankaranarayanan, Dissertation Chair
Monday, Nov. 6th, 1:00 p.m. | Timmerman Auditorium
Recent attention upon patient satisfaction within healthcare has increased the complexity of organizational management in hospitals. Recent regulatory changes such as the Medicaid Value Based Purchasing program no longer allow leaders to focus only upon health outcomes and fiscal bottom lines; a critical concern is the perception of the health care experience from the patient perspective. This dissertation seeks to theorize and build a nomological network of antecedents to patient satisfaction from distinct theoretical perspectives, to move towards a theory of patient satisfaction, and to contribute to and extend existing work in healthcare research. To this end, this dissertation will first examine patient satisfaction as an outcome variable, seeking to establish a robust and consistent outcome variable. Second, this research will introduce the concept of patient-technology fit, expanding previous research on task-technology fit to the patient experience. Finally, a direct examination of the impact of electronic patient portals upon patient satisfaction is posited to help explain health information technologies and their impact upon satisfaction. Primary survey instruments will be used to assess patient satisfaction scores, as well as utilization of existing scales to measure key variables. Structural equation modeling will be used to explore these relationships.
Keywords: Patient Satisfaction, patient-technology fit, electronic patient portals
FURTHER DE-PUZZLING THE PRICE PUZZLE
AMELIA LOUISE RUZZO
Dr. Pascal LeTourneau, Committee Chair
Wednesday, Nov. 22nd, 8:00 a.m. | Timmerman Auditorium
The predictability of inflation, deflation, and stagflation is an important issue because economists and policymakers in the Federal Reserve, whose responsibility it is to shape and guide policy, need methods to determine the direction and size of changes in policy positions. A current gap in the applicable body of knowledge is that, despite adding a commodity index to adjudicate the ‘price puzzle’ in some vector autoregression (VAR) analyses, the reason for doing so has yet to be specified. A commodity index typically contains a mix of several elements, such as all precious metals, oil, produce, etc. The current literature shows much discussion on the non–theoretical uses of VARs, as well as structural VARs (SVARs) but there are still perplexing anomalies and, few studies have been conducted over serious economic downturns. However, in this study, a method of grounded theory was used to develop VARs that included a US version of gold lease rates (GLRs) in lieu of a commodity index that spanned two decades inclusive of the Great Recession. This study also explores the endogeneity associated with inclusion and exclusion of commodity related explanatory variables within VAR models.
T HE IMPACT OF SUPERVISOR INCIVILITY ON SUBORDINATE OUTCOMES:
THE ALTERNATIVE IMPACT OF ETHICAL LEADERSHIP
JOHN P. GOOD
Dr. K. Praveen Parboteeah, Dissertation Chair
Wednesday, Nov. 22nd, 2:00 p.m. | Timmerman Auditorium
Annually, since 2010, United States employees within the nursing profession experienced annual workplace violence rates more than nine times the national average (US Department of Labor, Bureau of Labor Statistics, 2011, 2016). This rate, since 2010, was rivaled only by law enforcement patrol officers and correctional officers at more than 18 and 22 times the national average, respectively (US Department of Labor, Bureau of Labor Statistics, 2011, 2016). However, Andersson & Pearson (1999) suggests the majority of workplace aggressive behavior is a less extreme form termed incivility. Porath & Pearson (2013) suggests 98 percent of the employees they studied over a 14 year period were the object of this less extreme form. Extant research suggests workplace incivility leads to a 78 percent decrease in organizational commitment, a 66 percent decrease in performance, a 48 percent decrease in “work effort,” a 47 percent absenteeism rate, a 38 percent reduction in work quality, and a 12 percent job turnover rate (Porath & Pearson, 2013). Furthermore, the annual monetary cost to the health care industry of job turnover among nurses is estimated at $11,581 per nurse (Lewis & Malecha, 2011).
The affect of incivility among nurses has been found to lead to emotional exhaustion (Laschinger, Finegan, & Wilk, 2009) and adversely impacts subordinate trust in their manager (Pearson, Andersson, & Wegner, 2001). Subordinate emotional exhaustion (Cropanzano, Rupp, & Byrne, 2003) and lack of trust in their manager (Brower, Lester, Korsgaard, & Dineen, 2008) have been shown to have an adverse impact on subordinate task performance, organizational citizenship behavior, organizational commitment, and intention to quit. While health care industry specific incivility intervention stratgies have been proposed (Leiter et al., 2012, 2011), a sustained and constructive impact has not prevailed within the health care industry (US Department of Labor, Bureau of Labor Statistics, 2011, 2016). However, manager ethical leadership has been shown to have a constructive impact on subordinate emotional exhaustion (Mo & Shi, 2015) and subordinate trust (Brown & Mitchell, 2010). Hence, this study addressed two research questions in the setting of United States health care between nurse managers and nurse subordinates. Firstly, structural equation modeling was used to analyze 211 nurse subordinate survey responses gathered across 42 US states constructed from published scales to quantify the mediating effects of subordinate interpersonal trust and emotional exhaustion between nurse manager incivility and nurse subordinate outcomes of affective organizational commitment and intention to quit. Secondly, this study demonstrated the potential of nurse manager ethical leadership to almost completely neutralize the adverse impact of perceived nurse manager incivility on nurse subordinate affective organizational commitment and intention to quit. Study limitations are discussed and future opportunities for further research are offered. Contributions to academia and practice are also presented.
ENTERPRISE RISK MANAGEMENT, FINANCIAL REPORTING OUTCOMES, AND AUDITOR BEHAVIOR
Dr. Rashiqa Kamal, Dissertation Chair
Monday, Oct. 30th, 3:00 p.m. | Timmerman Auditorium
Enterprise Risk Management (ERM) offers a new framework for organizations to take a portfolio view of risk management with a goal to minimize the occurrence of enterprise-wide risks to achieve organizational objectives. Due to potential benefits related to ERM program implementation, many companies, particularly those in the finance and insurance industries, have invested significant capital resources in embracing this new concept. As important as is prior research in helping to understand the benefits of ERM adoption, there are still questions from both practitioners and academics about the overall efficacy of the ERM framework.
Therefore, this dissertation outlines two plausible areas related to the value of ERM program that prior research has done little. First, to investigate whether or not the quality implementation of ERM program reduces the risk of financial statement manipulations by companies, thereby increasing the quality of reported accounting information used by the public. Second, this paper examines whether or not a quality ERM program influences external auditors’ assessments of the risk profile of companies in the conduct of an audit. These assessments by the auditor are examined from the perspective of audit fees and audit report lags associated with the annual financial statement of companies.
In analyzing these issues, this study focuses on insurance companies using a set of ERM scores published by Standard & Poor’s on insurance companies covering the period 2010-2015 to measure the quality ERM adoption. Other secondary data required for the study are obtained from COMPUSTAT and Audit Analytics. A fixed effects regression model and a generalized method of moments (GMM) estimator are respectively utilized to analyze the questions related to the purpose of this paper and to perform robustness test.
Evidence from the study shows that high-quality enterprise risk management programs contribute to improving the quality of financial statement reporting. Also, evidence from the study indicates that high-quality risk programs implemented by companies may influence auditors’ actions in the conduct of an audit.
THREE STUDIES ON LEASE ACCOUNTING: LINKING APPLIED AND PEDAGOGICAL ACCOUNTING RESEARCH
DAVID L. GRAY
Dr. Abbie Daly, Dissertation Chair
Thursday, Nov. 2nd, 9:30 a.m. | Timmerman Auditorium
Providing insights into managerial actions represents an ongoing objective and important contribution of business and accounting research. Leasing activities, given their magnitude and importance to operations and financing mix choices, provide a rich context for gaining insights into managerial decision-making and the related financial statement impacts. Further, given the significance of leased operations to retail firms, these chapters and their related hypotheses and activities emphasize on the actions of retail firms’ management. This dissertation outlines three separate, but related, papers (presented as Chapter 2, 3, and 4) exploring financing and operating managerial decision-making in the context of lessee retail firms.
Chapter 2 explores managerial actions and related financing decisions in anticipation of an impending change in accounting policy. This chapter employs an ex ante study approach to gauge the nature, timing, and extent of managerial actions before the mandated implementation date of a new leasing standard. Specifically, this study explores whether, and the degree to which, retailers have reduced other debt obligations to accommodate the additional lease liabilities that will be reflected as a result of the new standard.
Chapter 3 studies managerial actions and related operating decisions by examining the degree to which operating lease expenses and the related lease commitments exhibit “stickiness” characteristics. This chapter presents an approach that uses, and builds on, the methodologies of the seminal work of Anderson, Banker, and Janakiraman (2003) where they found that a firm’s SG&A expenses increase more with a sales increase than those expenses decrease with an equivalent sales decline.
Finally, Chapter 4 presents an instructional case study and supporting materials that provide a link from the applied archival research studies to pedagogical approaches whereby managerial actions can be modeled by students. The case study asks students to make decisions about lease commitments and debt obligations in light of the impending leasing standard and its potential balance sheet impacts. The supporting materials provide a “scaffolded” design whereby students engage in classroom activities and are provided support to build the competencies necessary for analysis and presentation of the expected financial statement impacts. The case also requires students to make recommendations for managerial decisions. Together these chapters, which comprise the dissertation, seek to offer a unique approach whereby applied research is meaningfully and purposely connected to pedagogical materials.