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Title: Essays on investing.
Creator: Johnson, William Fount III, College of Business, Department of Finance
Abstract/Description: The Market Timing - Buy and Hold (MT-BH) is introduced, tested against widely accepted performance models of market timing and tested if implamentation is possible. The MT-BH metric measures the condition of engaging in market timing strategies relative to buy and hold investing across an equity market. The metric provides an alternative explanation to why market timing results of investors and managers vary through time and across different equity markets. This dissertation examines how the...
Show moreThe Market Timing - Buy and Hold (MT-BH) is introduced, tested against widely accepted performance models of market timing and tested if implamentation is possible. The MT-BH metric measures the condition of engaging in market timing strategies relative to buy and hold investing across an equity market. The metric provides an alternative explanation to why market timing results of investors and managers vary through time and across different equity markets. This dissertation examines how the is correlated with traditional market timing measures of the Treynor and Sharpe ratios over the 1995-2010 time period and how it affects widely used measures of regression based market timing models of Treynor- Mazuy and Henriksson-Merton. The Market Timing - Buy and Hold (MT-BH) metric can be applied to any equity market over any time period to condition the market timing skill of money managers in any equity market around the world. The final accomplishment of this dissertation is to determine if readily available finance and macro-economic variables can help investors determine which years are more favorable to pursue market timing strategies and which years favor buy and hold investing. When real GDP growth rates, inflation rates and PE ratios were low or negative and when dividend yields were high, market timing strategies were favorable across 44 country market indexes from 1994-2008. These results were robust to country level of development, negative market return years and other control variables. The conditions for pursing market timing strategies were time variant and detectable with macro-economic and finance variables. The MT-BH metric allows investors and brokers to determine when to switch from buy and hold investing to a market timing strategy using macro-economic and financial variables and helps to explain why market timing skill of managers is rarely found to be persistent.
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Date Issued: 2011
PURL: http://purl.flvc.org/FAU/3183131
Subject Headings: Investment analysis, Stock options, Portfolio management, Finance, Personal, Asset allocation, Assets (Accounting), Prices, Forecasting, Econometric models
Format: Document (PDF)

Title: Consequences of real earnings management and corporate governance: evidence from cash holdings.
Creator: Greiner, Adam J., College of Business, School of Accounting
Abstract/Description: I examine the impact of real earnings management (REM) and corporate governance on cash holdings. Extant research documents an increase in both cash holdings and REM activity in recent years and shows that agency conflicts influence both the levels and valuations of cash holdings. Motivated by agency problems of REM and Jensen's (1986) arguments concerning the free cash flow problem, I investigate whether opportunistic asset sales and reductions in discretionary expenditures are associated...
Show moreI examine the impact of real earnings management (REM) and corporate governance on cash holdings. Extant research documents an increase in both cash holdings and REM activity in recent years and shows that agency conflicts influence both the levels and valuations of cash holdings. Motivated by agency problems of REM and Jensen's (1986) arguments concerning the free cash flow problem, I investigate whether opportunistic asset sales and reductions in discretionary expenditures are associated with levels and valuations of cash holdings. Prior research also shows that strong corporate governance mitigates opportunistic earnings management behavior and enhances the valuation of cash holdings. Using empirical models from prior research, I document that REM is positively associated with cash holdings, investors discount cash holdings of high REM firms, and, among high REM firms, valuations of cash holdings of weak corporate governance firms are discounted significantly lower relative to those of strong corporate governance firms. My study unites two lines of research by incorporating agency problems concerning REM with levels and valuations of cash holdings.
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Date Issued: 2013
PURL: http://purl.flvc.org/fcla/dt/3360788
Subject Headings: Econometrics, Corporate governance, Corporations, Corrupt practices, Corporations, Finance, Accounting, Industrial management
Format: Document (PDF)

Title: Developing and protecting the "golden idea" in new high-tech ventures: entrepreneurs and advisors.
Creator: Fanimokun, Abiola Omoyeni., College of Business, Department of Management
Abstract/Description: The preoperational stage of a new venture is characterized by concept definition, idea enhancement, and strategy formulation. Entrepreneurs consult advisors in knowledge sharing activities. Trust is dominant in these entrepreneur-advisor relationships as entrepreneurs rely on an advisor's judgment to keep venture ideas away from competitors. However, the relationships between trust, knowledge sharing, and knowledge security during the preoperational stage of a new high-tech venture are not...
Show moreThe preoperational stage of a new venture is characterized by concept definition, idea enhancement, and strategy formulation. Entrepreneurs consult advisors in knowledge sharing activities. Trust is dominant in these entrepreneur-advisor relationships as entrepreneurs rely on an advisor's judgment to keep venture ideas away from competitors. However, the relationships between trust, knowledge sharing, and knowledge security during the preoperational stage of a new high-tech venture are not directly examined in many research studies. Concerning types of trust, McAllister (1995) defines two types of interpersonal trust: affective trust, which develops from emotional bonds between individuals, and calculative trust, which is based on an individual's level of competence and reliability. The present study applies McAllister's (1995) theory of types of trust to Kale, Singh, and Perlmutter (2000) findings to examine how trust relationships between entrepreneurs and advisors affect knowledge sharing and an entrepreneur's use of NDAs. This dissertation's research primary question is, "How does trust between an entrepreneur and advisors affect knowledge sharing and choices of knowledge security mechanisms during the preoperational stage of a new high-tech venture?" I used de Koning and Muzyka's (1999) classification of the entrepreneur's social context to define three advisor types: Close Friends, Business Associates, and Licensed Professionals. Linking these types with literature on trust and knowledge, I hypothesize seven relationships dealing with trust, knowledge sharing, and knowledge security. I used structured and non-structured interview formats to collect data on 143 entrepreneur/advisor relationships in South Florida., The results confirmed that relationship length significantly contributed to affective trust and entrepreneurs were more likely to share knowledge with Business Associates than with Close Friends or Licen found t o be the dominant form of trust driving knowledge sharing but affective trust was not significantly found to impact the use of NDAs. Entrepreneurs expected all advisor types to be competent, experienced, and skilled, reporting nonsignificant differences in calculative trust across advisor types. I did not find the use of NDAs to be associated with any particular advisor type. Rather, NDAs were seldom used during the preoperational stage for reasons such as the entrepreneurs' desires to maintain positive relationships with advisors, along with their reliance on a strong institutional background.
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Date Issued: 2010
PURL: http://purl.flvc.org/FAU/2100577
Subject Headings: Interpersonal relations, Business etiquette, Organizational behavior, Entrepreneurship, New business enterprises, Creative ability in business, Disclosure of information, Knowledge management
Format: Document (PDF)

Title: 'Indie' empowerment: new media strategies and the rise of the independent artist.
Creator: Harris, Simone K., College of Business, Department of Management
Abstract/Description: The use of new media technology which refers to digital, computerized, or networked information and communication technologies such as the Internet, mobile devices, gaming, and social networks, has come to define the music industry today, and it is this technology that has empowered independent artists in such a way that they are now free to pursue heights of success previously only available to major label artists. New media technology has affected the traditional business models of major...
Show moreThe use of new media technology which refers to digital, computerized, or networked information and communication technologies such as the Internet, mobile devices, gaming, and social networks, has come to define the music industry today, and it is this technology that has empowered independent artists in such a way that they are now free to pursue heights of success previously only available to major label artists. New media technology has affected the traditional business models of major labels, it has resulted in gross decline in recording costs, given birth to new channels of music marketing, and business models, and has created a new music clientele that requires instant gratification, personalization, and connectivity. In the face of such change, independent artists have been empowered and can access opportunities to distribute music independently, market and promote music effectively to niche markets, secure publishing deals, while building their own community of dedicated fans.
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Date Issued: 2010
PURL: http://purl.flvc.org/FAU/2705072
Subject Headings: Music, Economic aspects, Music and the Internet, Music trade, Music and globalization, Sound recordings, Marketing
Format: Document (PDF)

Title: Governance and earnings management surrounding dividend initiation.
Creator: Smith, Deborah Drummond., College of Business, Department of Finance
Abstract/Description: Essay I: Governance surrounding dividend initiation. According to the free cash flow hypothesis, managers prefer to invest surplus cash, even in value reducing projects, rather than release it to shareholders. Yet, previous studies of dividend payout conclude that managers pay more in dividends when they are entrenched, supporting the substitute model... The results indicate that initiating firms have stronger shareholder rights, in contrast with much of the prior research on continuous...
Show moreEssay I: Governance surrounding dividend initiation. According to the free cash flow hypothesis, managers prefer to invest surplus cash, even in value reducing projects, rather than release it to shareholders. Yet, previous studies of dividend payout conclude that managers pay more in dividends when they are entrenched, supporting the substitute model... The results indicate that initiating firms have stronger shareholder rights, in contrast with much of the prior research on continuous divident payout. Firms with lower entrenchment index are more likely to initiate dividends... Essay II: Earnings management surrounding dividend initiation. Prior research tests earnings management surrounding changes in dividend payout and researchers conclude that the earnings management is a means of amplifying the dividend signal to the market. However, dividend initiation is a unique event. If initiation represents signaling, similar to a dividend increase, then management will manage earnings upward. If, on the other hand, divident initiation is better explained by the free cash flow hypothesis, then initiation may be entered into with caution or reluctance by management.
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Date Issued: 2012
PURL: http://purl.flvc.org/fcla/dt/3362041
Subject Headings: Investment analysis, Portfolio management, Dividends, Econometric models
Format: Document (PDF)

Title: Growth options in mergers.
Creator: Davis, Sean M., College of Business, Department of Finance
Abstract/Description: This dissertation is a growth options analysis of high tech mergers. I analyze the impact growth options have on the likelihood of a high tech firm being acquired, the premiums paid for these acquisitions, and the synergies that result from these mergers. I examine how proxies for growth options interact with those for the resources needed to fund growth. A significant part of my analysis involves developing and examining a new growth options proxy, Gamma, the return on investment a firm...
Show moreThis dissertation is a growth options analysis of high tech mergers. I analyze the impact growth options have on the likelihood of a high tech firm being acquired, the premiums paid for these acquisitions, and the synergies that result from these mergers. I examine how proxies for growth options interact with those for the resources needed to fund growth. A significant part of my analysis involves developing and examining a new growth options proxy, Gamma, the return on investment a firm realizes in growth options value from its R&D expenditures. I find that firms that are better than their peers in converting R&D into growth options value, i.e. they have high Gamma, are more likely to be targeted for acquisition than low-Gamma firms. The premiums paid are impacted most by the characteristics of the deal, primarily when deals are competitive, and GDP growth. The acquirer's Gamma, however, is very significant in predicting premiums. Acquiring firms with high Gamma pay significantly lower premiums. The synergies that result from a merger are measured in short and long run returns, and most mergers result in value destruction to the combined firm. In the fewer than 20% of the mergers that resulted in positive long run abnormal returns, the premium paid and whether the deal was competitive significantly reduced the returns. However the two characteristics that significantly increased returns were the acquirer's Gamma and if the acquirer and target had complementary characteristics for growth options levels and free cash flow.
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Date Issued: 2011
PURL: http://purl.flvc.org/FAU/3357425
Subject Headings: Consolidation and merger of corporations, Corporations, Finance, Conglomerate corporations
Format: Document (PDF)

Title: Target stock price runup prior to acquisitions.
Creator: Brigida, Matthew David., College of Business, Department of Finance
Abstract/Description: Information leakage before full acquisitions has been widely documented. The information leakage, and the resulting pre-bid runup in the target's stock, generally increases the total cost of the acquisition. That is, information leakage and the ensuing pre-bid runup is a gain to the target and loss to the acquirer. Herein, I first ascertain the characteristics of full acquisitions that affect the amount of information leakage. I find that if the acquirer borrows to finance the acquisition...
Show moreInformation leakage before full acquisitions has been widely documented. The information leakage, and the resulting pre-bid runup in the target's stock, generally increases the total cost of the acquisition. That is, information leakage and the ensuing pre-bid runup is a gain to the target and loss to the acquirer. Herein, I first ascertain the characteristics of full acquisitions that affect the amount of information leakage. I find that if the acquirer borrows to finance the acquisition then information leakage is greater. Further if the acquirer is foreign, if the target is a high-tech firm, and if the target has options on its stock all increase information leakage. I find hostile deals are effective in reducing information leakage. Lastly, information leakage increases in the percentage of managerial ownership. I next hypothesize that the identity and intent of partial acquirers is known to market participants before the announcement of a partial acquisition. I find that the market can anticipate whether a partial acquirer intends to fully-acquire or take an active role in the management of the target. Also, the market anticipates whether the acquirer is a private investment find or a non-financial corporation. Further, the acquirer's identity or intent is fully reflected in the target's stock price before the announcement of the partial acquisition. These results help explain why there are few partial acquisitions as precursors to full acquisitions., I next hypothesize that macroeconomic factors affect information leakage, and may serve as a signal of when to speculate on acquisitions. I find that information leakage is positively related to shocks in both expected economic conditions and financing costs, the latter signaling to speculators that acquisitions are imminent. I also find information about an imminent full acquisition is leaked earlier when there are positive shocks to economic conditions and financing costs.
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Date Issued: 2009
PURL: http://purl.flvc.org/FAU/368613
Subject Headings: Consolidation and merger of corporations, Negotiation in business, Investment analysis, Stocks, Prices, Securities industry, Corrupt practices
Format: Document (PDF)

Title: Three essays on competitive acquisition bids.
Creator: Glambosky, Mina C., College of Business, Department of Finance
Abstract/Description: Many factors contribute to the outcome of an acquisition; these factors arise from both the objective of the target and acquirer. This dissertation focuses on how the bidding strategy, acquirer and target characteristics impact the transaction. The first essay examines how the timing and size of the acquirer's bid for a U.S. target firm impacts their return. I find that successful first and low bid acquirers experience significantly larger returns than successful secondary and non-low bid...
Show moreMany factors contribute to the outcome of an acquisition; these factors arise from both the objective of the target and acquirer. This dissertation focuses on how the bidding strategy, acquirer and target characteristics impact the transaction. The first essay examines how the timing and size of the acquirer's bid for a U.S. target firm impacts their return. I find that successful first and low bid acquirers experience significantly larger returns than successful secondary and non-low bid acquirers. The cross-sectional analysis determines that higher levels of target institutional ownership and acquisitions completed prior to the passage of Sarbanes-Oxley result in reduced returns to the acquirer. In addition, the likelihood of a successful first bid acquirer increases with a revised bid and when the acquirer is both the first and low bid acquirer simultaneously. The likelihood of a successful first bid acquirer decreases as the number of bidders increases and as the bidding process lengthens. I also find that the likelihood of a successful low bid acquirer increases the longer the bidding process. The second essay examines how the timing and size of the acquirer's bid for an international target impacts their return. I find that successful first and low bid acquirers experience insignificant abnormal returns following the acquisition announcement. In addition, the likelihood of a successful first bid acquirer increases when the acquirer and target have similar cultures, with higher levels of target government corruption and when the acquirer is both the first and low bid acquirer simultaneously. The likelihood of a successful low bid acquirer decreases with higher levels of target government corruption. I also examine what factors affect the target premium and find that larger transactions and successful first bid acquirers increase the target premium., Conversely, similar cultures and higher levels of government corruption, rule of law, bureaucracy, expropriation and ethnic tension decrease the premium to the target. Lastly, successful first and low bid acquirers experience statistically larger long run abnormal returns than successful secondary and non-low bid acquirers. The third essay examines how a stake accumulation by a conflicted blockholder influences the target's return. I find that targets experience positive cumulative abnormal returns upon the announcement of the Family, ESOP, Management and High Profile Investor stake accumulation. The cross-sectional analysis determines that privately negotiated transactions reduce the return to the target and that higher levels of stake accumulation are positively related to the target's return. Finally, targets experience negative abnormal long run returns following all four types of stake accumulation.
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Date Issued: 2009
PURL: http://purl.flvc.org/FAU/228768
Subject Headings: Consolidation and merger of corporations, Industrial management, Negotiation in business, Strategic planning
Format: Document (PDF)

Title: An analysis of voluntary annual report disclosures of outsourcing: determinants and firm performance.
Creator: Premuroso, Ronald F., Florida Atlantic University, College of Business, School of Accounting
Abstract/Description: Outsourcing has become a significant factor in the U.S. economy over the past two decades. Annual report disclosures made by a firm related to outsourcing are voluntary disclosures. Understanding the determinants and firm performance implications of initial outsourcing annual report disclosures is important to capital market providers, standards developers, and to the firms themselves. I identify and study firms making initial voluntary disclosures of outsourcing in their annual reports on...
Show moreOutsourcing has become a significant factor in the U.S. economy over the past two decades. Annual report disclosures made by a firm related to outsourcing are voluntary disclosures. Understanding the determinants and firm performance implications of initial outsourcing annual report disclosures is important to capital market providers, standards developers, and to the firms themselves. I identify and study firms making initial voluntary disclosures of outsourcing in their annual reports on Form 10-K between 1993 and 2003 after they make non-annual report related public disclosures. Specifically, I investigate if determinants of the initial annual report disclosure decision and subsequent performance are associated with the initial disclosure. This study contends managers disclose information related to outsourcing in their annual reports to reduce information asymmetry and to minimize agency costs. I hypothesize and develop a firm-related variable commonly used in agency theory to test this assertion. Signaling theory and voluntary disclosure theory also explain the determinants for firm voluntary outsourcing annual report disclosures. I develop several hypotheses defining determinants potentially associated with the likelihood of initial annual report outsourcing disclosure decisions, and test these determinants using a conditional logistic regression model and a matched-pair group of firms making public outsourcing disclosures but not making annual report disclosure. Using signaling theory, I also develop hypotheses testing if the initial outsourcing annual report disclosure sends a signal regarding future firm performance--specifically testing firm performance measures related to profitability and cash flow. I test these hypotheses using OLS models and the same matched-pair group of firms. I find firms with high levels of debt, high total cost ratios, and high returns on assets are more likely to make initial annual report outsourcing disclosure., I also find firms may signal improvements in future levels of profitability when making the initial annual report outsourcing disclosure.
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Date Issued: 2008
PURL: http://purl.flvc.org/FAU/77650
Subject Headings: Offshore outsourcing, Contracting out, Economic aspects, Managerial economics, Organizational effectiveness
Format: Document (PDF)

Title: The role of advertising and information asymmetry on firm performance.
Creator: Fine, Monica B., College of Business, Department of Marketing
Abstract/Description: Research linking marketing to financial outputs has been gaining significance in the marketing discipline. The pertinent questions are, therefore: how can marketing improve measures of firm performance and draw potential investors to the company, and where is the quantitative proof to back up these assertions? This research investigates the role of marketing expenditures in the context of initial public offerings (IPOs). The proposed theoretical framework comes from marketing and finance...
Show moreResearch linking marketing to financial outputs has been gaining significance in the marketing discipline. The pertinent questions are, therefore: how can marketing improve measures of firm performance and draw potential investors to the company, and where is the quantitative proof to back up these assertions? This research investigates the role of marketing expenditures in the context of initial public offerings (IPOs). The proposed theoretical framework comes from marketing and finance literature, and uses econometric models to test the hypotheses. First, we replicate the results of a previous study by Luo (2008) showing a relationship between the firm's pre-IPO marketing spending and IPO underpricing. Next, we extend the previous study by looking at the IPO's long-run returns, types of risk, analyst coverage, and market/industry characteristics. The results of this study, based on a sample of 2,103 IPOs from 1996 to 2008, suggest that increased marketing spending positively impac ts firm performance. We examine different measures of firm performance, such as risk and long-run performance, whose results are important to the firm, its shareholders, and potential investors. This study analyzes the impact marketing spending has on IPO characteristics (IPO underpricing in the short-run and cumulative abnormal returns in the long run); risk characteristics (systematic, unsystematic, bankruptcy risk, and total risk); analyst coverage characteristics (the number of analysts, optimistic coverage, and forecast error) and market characteristics (market volatility and industry type). We control for variables such as firm size, profitability, and IPO characteristics. In this paper, the results show that increased marketing spending lowers underpricing, lowers bankruptcy risk, lowers total risk, leads to greater analyst coverage, leads to more favorable analyst coverage, and lowers analyst forecast error. For theory, this paper advances the literature on the, marketing-financ e interface by extending the market-based assets and signaling theories. For practice, the results indicate that spending more money on marketing before the IPO and disclosing this information produces positive bottom-line results for the firm. KEYWORDS: Marketing-Finance, Risk, Financial Analysts, Marketing Spending, Firm Performance, Marketing Strategy Meets Wall Street, Long-Run Firm Performance, Underpricing, Stock Recommendations, Initial Public Offering, Marketing Strategy, Econometric Model.
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Date Issued: 2012
PURL: http://purl.flvc.org/FAU/3342050
Subject Headings: Investment analysis, Organizational effectiveness, Measurement, Advertising, Financial services industry, Marketing, Financial services industry, Computer network resources
Format: Document (PDF)

Title: Two models of international country segmentation.
Creator: Budeva, Desislava G., College of Business, Department of Management
Abstract/Description: The growth of global competition has established international segmentation as a key issue in developing, positioning and selling products throughout the world (Ter Hofstede, Steenkamp and Wedel 1999). Many international segmentation studies have used macro-level, secondary data to identify country clusters based on similarities in political, economic, geographic or cultural variables. As a result of extensive review, we identify three major gaps in the international country segmentation...
Show moreThe growth of global competition has established international segmentation as a key issue in developing, positioning and selling products throughout the world (Ter Hofstede, Steenkamp and Wedel 1999). Many international segmentation studies have used macro-level, secondary data to identify country clusters based on similarities in political, economic, geographic or cultural variables. As a result of extensive review, we identify three major gaps in the international country segmentation literature. First, no study so far has accounted for the influence of time. While researchers suggest that longitudinal analysis provides additional insight into whether situational characteristics of countries change over time (Cavusgil, Kiyak, and Yeniyurt 2004; Helsen, Jedidi, and DeSarbo 1993; Sethi 1971; Steenkamp and Hofstede 2002,), a major limitation of this body of work is that most studies address country-level segmentation at a single point in time. However, bases of segmentation are considered to be dynamic in nature (Hassan, Craft, and Kortam 2003) and global and country-specific changes in economic development are likely to result in variations in segment membership over time. We investigate the stability of factors and the stability of segments over time by performing cluster analysis at two points of time. Second, most studies use ad hoc variables without theoretical basis which may result in accidental generalizations. Instead of suggesting a proliferation of random variables, which are considered influential in the decision making process without any empirical or theoretical evidence, we propose a theoretical basis for country segmentation. We use institutional theory to distinguish between heterogeneous groups of countries. Finally, there is the issue of providing "one size fits all" solutions., In other words, existing models offer general results of country clusters meant to be useful for all firms regardless of the product they offer or the industry they belong to. Our model based on institutional theory is used to investigate whether the influence of the host-country environment changes depending on the product that is concerned.
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Date Issued: 2009
PURL: http://purl.flvc.org/FAU/210364
Subject Headings: International business enterprises, Management, Entrepreneurship, Sustainable development, Comparative management, Globalization, Economic aspects
Format: Document (PDF)

Title: Large shareholder heterogeneity: the effect on firms' accounting quality and information asymmetry.
Creator: Trainor, Joseph E., College of Business, School of Accounting
Abstract/Description: I investigate the association between large shareholder heterogeneity and firms' accounting quality and information asymmetry. Specifically, I construct three measures of ownership heterogeneity based on the type, size, and monitoring aggressiveness of large shareholders present in a firm. Applying these three measures of heterogeneity, I examine whether large shareholder heterogeneity is associated with the variation in firms' accounting quality and information asymmetry. I also examine new...
Show moreI investigate the association between large shareholder heterogeneity and firms' accounting quality and information asymmetry. Specifically, I construct three measures of ownership heterogeneity based on the type, size, and monitoring aggressiveness of large shareholders present in a firm. Applying these three measures of heterogeneity, I examine whether large shareholder heterogeneity is associated with the variation in firms' accounting quality and information asymmetry. I also examine new block formations to provide evidence on the consequences of large shareholder investment on firms' accounting quality and information asymmetry. I find that the monitoring aggressiveness of large shareholders is positively associated with firms' accounting quality and information asymmetry. These findings suggest that large aggressive shareholders constrain earnings management, but contribute to firms' overall information asymmetry. Further, using new blockholder data, I find that investments by large aggressive shareholders are positively associated with firms' accounting quality and firms' information asymmetry in the post investment period. This finding provides additional support to my hypotheses that large shareholders play an important role in firms' accounting quality and information asymmetry.
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Date Issued: 2011
PURL: http://purl.flvc.org/FAU/3322515
Subject Headings: Investment analysis, Financial services industry, Organizational effectiveness, Measurement, Total quality management
Format: Document (PDF)

Title: Risk dynamics, growth options, and financial leverage: evidence from mergers and acquisitions.
Creator: Coy, Jeffrey M., College of Business, Department of Finance
Abstract/Description: In essay I, I empirically examine theoretical inferences of real options models regarding the effects of business risk on the pricing of firms engaged in corporate control transactions. This study shows that the risk differential between the merging firms has a significant effect on the risk dynamic of bidding firms around control transactions and that the at-announcement risk dynamic is negatively related to that in the preannouncement period. In addition, the relative size of the target,...
Show moreIn essay I, I empirically examine theoretical inferences of real options models regarding the effects of business risk on the pricing of firms engaged in corporate control transactions. This study shows that the risk differential between the merging firms has a significant effect on the risk dynamic of bidding firms around control transactions and that the at-announcement risk dynamic is negatively related to that in the preannouncement period. In addition, the relative size of the target, the volatility of bidder cash flows, and the relative growth rate of the bidder have significant explanatory power in the cross-section of announcement returns to bidding firm shareholders as does the change in the cost of capital resulting from the transaction. Essay II provides an empirical analysis of a second set of real options models that theoretically examine the dynamics of financial risk around control transactions as well as the link between financial leverage and the probability of acquisition. In addition, I present a comparison of the financial risk dynamics of firms that choose an external growth strategy, through acquisition, and those that pursue an internal growth strategy through capital expenditures that are unrelated to acquisition.
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Date Issued: 2013
PURL: http://purl.flvc.org/fcla/dt/3362323
Subject Headings: Consolidation and merger of corporations, Financial services industry, Mathematical models, Corporations, Finance, Financial risk management
Format: Document (PDF)

Title: PCAOB inspections and audit quality evidence from cross-listed securities.
Creator: Stewart, Errol G.G., College of Business, School of Accounting
Abstract/Description: In the period leading up to the early 2000s there were a series of large company failures attributed at least in part to audit failures. Consequently, the Sarbanes Oxley Act (SOX) was promulgated in July 2002 to restore confidence in public company financial reporting and the work of auditors. The Public Company Accounting Oversight Board (PCAOB) was established by SOX and appointed as the regulator of the accounting firms that audit the financial statements of public companies. The PCAOB is...
Show moreIn the period leading up to the early 2000s there were a series of large company failures attributed at least in part to audit failures. Consequently, the Sarbanes Oxley Act (SOX) was promulgated in July 2002 to restore confidence in public company financial reporting and the work of auditors. The Public Company Accounting Oversight Board (PCAOB) was established by SOX and appointed as the regulator of the accounting firms that audit the financial statements of public companies. The PCAOB is required to routinely inspect the operations of these accounting firms in an effort to satisfy its mandate to bring about an improvement in the audit quality of these companies. These inspections extend to the non-US auditors of companies that are cross-listed in the US. Despite various mainly US studies on inspections, there is limited evidence that the inspections have resulted in improved audit quality. ... I examine companies whose securities are cross-listed in the US in the periods before and after inspection in order to provide evidence on the benefits of inspections. I find some evidence that inspections improve the audit quality of companies that are cross-listed in the US. This suggests the audit quality of companies from countries that do not permit inspections may be positively affected should inspections be permitted.
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Date Issued: 2012
PURL: http://purl.flvc.org/FAU/3356016
Subject Headings: Auditing, Standards, Financial services industry, Management, Corporate governance, Law and legislation, Corporations, Auditing, Standards
Format: Document (PDF)

Title: Optimal positioning of web page banner advertisements: an extension of hemispheric process theory.
Creator: Goodrich, Kendall., Florida Atlantic University, College of Business, Department of Marketing
Abstract/Description: The purpose of this research is to determine whether optimal ad placement and page context can significantly impact advertising effects, by extending hemispheric processing theory. This study contributes to the marketing literature by 1) addressing theoretical conflicts regarding optimal hemispheric ad placement (more favorable effects with leftward photo ads and rightward text ads; Janiszewski 1988) and page context (matching activation from "priming" of opposing brain hemispheres...
Show moreThe purpose of this research is to determine whether optimal ad placement and page context can significantly impact advertising effects, by extending hemispheric processing theory. This study contributes to the marketing literature by 1) addressing theoretical conflicts regarding optimal hemispheric ad placement (more favorable effects with leftward photo ads and rightward text ads; Janiszewski 1988) and page context (matching activation from "priming" of opposing brain hemispheres Janiszewski 1990), 2) by evaluating multiple advertising effects in relation to mere exposure rather than focusing primarily on attitudes (Janiszewski 1988, 1990), and 3) by addressing an important knowledge gap regarding optimal Web advertising (Dahlen, Rasch and Rosengren 2003). A growing amount of money is being spent on Internet advertising, with revenues totaling $12.5 billion in 2005, up more than 30 percent over 2004 (IAB 2006). However, banner ad click-through rates are low (between .1 and .2 percent for standard ads; DoubleClick 2007) and only 10% of business executives believe that banner advertising is highly effective in generating new business (Forrester 2006). Advertisers continue to use banner ads, perhaps because the "branding" benefits are not limited to clickthroughs (Briggs and Hollis 1997). While numerous ad-related factors have been previously studied (e.g., ad context creative factors, recall/recognition effects, repetition), to the author's knowledge no research has examined the effect of banner ad placement on advertising outcomes such as attention, recognition, brand attitude and purchase intention., A 2 x 2 x 2 between subjects factorial design was implemented, in which the ad type (pictorial or verbal), ad placement (left or right of Web page), and the page type (text or image-oriented) were manipulated in an online environment. While the results only partially support the hypotheses (rank-ordered stimuli groups from "optimal" to "least optimal" effects) matching activation and hemispheric ad placement appeared to differentially affect advertising outcomes. A supplementary data analysis, which directly compared hemispheric ad placement and matching activation, indicates that matching activation has a greater effect on attention, while hemispheric ad placement has a greater effect on purchase intention. The findings suggest that online advertising efforts should be specifically matched with advertising goals. Managerial implications are discussed.
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Date Issued: 2007
PURL: http://purl.flvc.org/FAU/77642
Subject Headings: Product management, Internet advertising, Economic aspects, Logos (Symbols), Design, Marketing, Psychological aspects, Advertising, Effective frequency
Format: Document (PDF)

Title: Managerial incentives and auditor pricing: do auditors price risk from CEO incentives?.
Creator: Kannan, Yezen H., Florida Atlantic University, College of Business, School of Accounting
Abstract/Description: I investigate whether and how auditors address the potential risk of CEO incentive pay and CEO incentives from their equity portfolio as an incentive to commit fraud through their pricing decisions. Using an OLS regression model I find that auditors price CEO incentive pay in the post SOX period. Also, auditors price CEOs' non-linear incentives from their holdings of stock options as a fraud risk factor but do not price linear incentives from CEO holding of stock and restricted stock....
Show moreI investigate whether and how auditors address the potential risk of CEO incentive pay and CEO incentives from their equity portfolio as an incentive to commit fraud through their pricing decisions. Using an OLS regression model I find that auditors price CEO incentive pay in the post SOX period. Also, auditors price CEOs' non-linear incentives from their holdings of stock options as a fraud risk factor but do not price linear incentives from CEO holding of stock and restricted stock. Furthermore, auditors consider CEO incentives to manipulate firm performance due to the vested portion of option holdings as a fraud risk factor which is priced, and not the unvested portion of this portfolio. Furthermore, I find evidence to suggest that auditors price CEO opportunity to commit fraud, as well as CEO rationalizing the act of committing fraud, therefore concluding that auditors price all components of the fraud triangle.
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Date Issued: 2009
PURL: http://purl.flvc.org/FAU/210448
Subject Headings: Portfolio management, Incentive awards, Compensation management, Financial services industry, Corrupt practices
Format: Document (PDF)

Title: Level of consumer acculturation and the moderating effects of place of birth, and dominant culture on attitudes toward money.
Creator: Torres, Luis Eduardo., College of Business, Department of Marketing
Abstract/Description: Although growth in the Hispanic population and its buying power has outpaced by far non-Hispanic U.S. growth in the last decade, only a limited amount of attention has been given to study consumer acculturation among Hispanic subcultures. That lack of research represents one of the biggest gaps in the ethnic marketing literature. Previous research has shown that leveln of acculturation is one of the best ways to segment markets, yet key concepts in the acculturation literature have been used...
Show moreAlthough growth in the Hispanic population and its buying power has outpaced by far non-Hispanic U.S. growth in the last decade, only a limited amount of attention has been given to study consumer acculturation among Hispanic subcultures. That lack of research represents one of the biggest gaps in the ethnic marketing literature. Previous research has shown that leveln of acculturation is one of the best ways to segment markets, yet key concepts in the acculturation literature have been used interchangeably (Wallendorf & Reilly, 1983 ; Metha & Belk, 1991 ; Hui, Laroche and Kim, 1998 ; Webster, 1994 ; Penaloza, 1994 ; Laroche, Kim, Hui, and Tomiuk, 1998 ; Ogden, Ogden & Schau, 2004). This research clarifies such concepts and studies the effects of level of acculturation on attitudes toward money among Mexican Americans. Findings suggest that one of the sub-processes of acculturation, integration, can be effectively used to predict Mexican American attitudes toward money. Results address the need of a better understanding of consumption among Hispanic Americans. The importance of research in this area is underlined for public administrators, marketing managers and scholars alike.
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Date Issued: 2012
PURL: http://purl.flvc.org/FAU/3356017
Subject Headings: Target marketing, Consumer behavior, Hispanic American consumers, Hispanic Americans, Cultural assimilation
Format: Document (PDF)

Title: THE DETERMINANTS OF EXPORT PERFORMANCE.
Creator: FISCHLOWITZ, ELODIE., Florida Atlantic University, Lall, Rajiv, College of Business, Department of Economics
Abstract/Description: Neoclassical trade theory and its extensions are presented to provide a basis for understanding the determinants of export performance. Past empirical studies are also utilized to aid in the formulation of hypotheses to explain revealed comparative advantage .in the case of Indian exports. A cross-sectoral analysis of 57 manufacturing industries within India employs both economic and policy explanatory variables. Ordinary least squares and Probit methods test the potential determinants of...
Show moreNeoclassical trade theory and its extensions are presented to provide a basis for understanding the determinants of export performance. Past empirical studies are also utilized to aid in the formulation of hypotheses to explain revealed comparative advantage .in the case of Indian exports. A cross-sectoral analysis of 57 manufacturing industries within India employs both economic and policy explanatory variables. Ordinary least squares and Probit methods test the potential determinants of export performance and direction of trade.
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Date Issued: 1984
PURL: http://purl.flvc.org/fcla/dt/14204
Subject Headings: Export marketing, Export sales contracts--India
Format: Document (PDF)

Title: Do investors attach higher valuation weights to cash flow-based measures than to accrual-based measures in valuing intangible-intensive, high-technology stocks?.
Creator: Al-Harbi, Abdullah D., Florida Atlantic University, College of Business, School of Accounting
Abstract/Description: This study provides empirical evidence on the impact of high-tech firms' unrecognized intangible investments on the market valuation of cash flow and accrual amounts. In particular, this study empirically examines the different valuation weights that capital market participants attach to accrual-based versus cash flow-based measures when valuing intangible-intensive, high-technology stocks, and finds that investors appear to value, on average, a dollar of cash flows higher than a dollar of...
Show moreThis study provides empirical evidence on the impact of high-tech firms' unrecognized intangible investments on the market valuation of cash flow and accrual amounts. In particular, this study empirically examines the different valuation weights that capital market participants attach to accrual-based versus cash flow-based measures when valuing intangible-intensive, high-technology stocks, and finds that investors appear to value, on average, a dollar of cash flows higher than a dollar of accruals for intangible-intensive high-technology firms. Based on samples of Compustat high- and low-technology firms between 1992--2001, the empirical results suggest that cash flows have larger multiplier than aggregate accruals, and have incremental value-relevant information beyond that contained in the individual components of accruals for valuing high-technology stocks. This study further provides evidence that suggests that cash earnings measures of low-technology firms are dominated by those of high-technology firms as a summary indicator of share values. This study contributes to existing literature that reports no substantial difference in the value relevance of cash flow and accrual amounts in high and low tech industries. It provides evidence that suggests that capital market investors do not hold high-tech stocks to the same standards of valuation that they use for low-tech traditional stocks.
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Date Issued: 2003
PURL: http://purl.flvc.org/fau/fd/FADT12055
Subject Headings: Business Administration, Accounting
Format: Document (PDF)

Title: A SELECTED COMPARISON OF PROFIT AND NONPROFIT ORGANIZATION ACCOUNTING PRACTICES AND PROCEDURES.
Creator: LAGASSE, ROBERT CLAUDE, Florida Atlantic University, College of Business, School of Public Administration
Abstract/Description: The study compares and contrasts general accounting practices and procedures as they are applied in profit and not-for-profit organizations. The data from which this study was made was gathered from existing publications in the fields of accounting and association management as well as policy and practice statements issued by the American Institute of Certified Public Accountants (AICPA). The study describes the differences in for-profit and not-for-profit accounting practices and procedures...
Show moreThe study compares and contrasts general accounting practices and procedures as they are applied in profit and not-for-profit organizations. The data from which this study was made was gathered from existing publications in the fields of accounting and association management as well as policy and practice statements issued by the American Institute of Certified Public Accountants (AICPA). The study describes the differences in for-profit and not-for-profit accounting practices and procedures as they exist in current practice. The study represents a state-of-the-art overview of not-for-profit accounting procedures of use to anyone establishing operating guidelines for such an organization.
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Date Issued: 1977
PURL: http://purl.flvc.org/fcla/dt/13846
Subject Headings: Business Administration, Accounting
Format: Document (PDF)

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