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- Title
- ESSAYS ON FINANCIAL MARKETS AND CORPORATE POLICIES.
- Creator
- Akter, Maimuna, Cumming, Douglas, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
-
The recent increase in common ownership makes it imperative to study the impact of common ownership on corporate policies. In this two-essay study, I examine how common owners interact with firms to make decisions and how they moderate the impact of market manipulation on corporate culture. In the first essay, I examine whether firms in the same industry make similar investment and financial policies when their large institutional owners overlap. This relationship is important given the...
Show moreThe recent increase in common ownership makes it imperative to study the impact of common ownership on corporate policies. In this two-essay study, I examine how common owners interact with firms to make decisions and how they moderate the impact of market manipulation on corporate culture. In the first essay, I examine whether firms in the same industry make similar investment and financial policies when their large institutional owners overlap. This relationship is important given the tremendous rise of common institutional owners and their significance on their portfolio firms’ policies. I hypothesize that common institutional owners cause their portfolio firms in the same industry to make similar policies by creating anti-competitive incentives, reducing information asymmetry, and influencing governance.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014168
- Subject Headings
- Finance, Corporations—Finance, Corporate culture
- Format
- Document (PDF)
- Title
- DO FIRMS’ BANKRUPTCY ANNOUNCEMENTS ALTER PEERS’ RISK FACTOR DISCLOSURES?.
- Creator
- Nam, Jiwon, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
Since 2005 corporate managers must discuss their firm’s significant risk factors that may materially and unfavorably affect corporate outcomes in the Item 1A Risk Factor Disclosure (RFD) section of their 10-K filings. However, there is limited research on whether firms change the sentiment of their mandatory disclosures after a significant economic event. I use bankruptcy announcements as a unique setting in this study to assess non-announcing firms’ responses to these events as a bankruptcy...
Show moreSince 2005 corporate managers must discuss their firm’s significant risk factors that may materially and unfavorably affect corporate outcomes in the Item 1A Risk Factor Disclosure (RFD) section of their 10-K filings. However, there is limited research on whether firms change the sentiment of their mandatory disclosures after a significant economic event. I use bankruptcy announcements as a unique setting in this study to assess non-announcing firms’ responses to these events as a bankruptcy announcement generates significant concern to non-announcing industry peer firms. I explore whether industry peers change four measures of sentiment (i.e., length, negative tone, specificity, forward-looking statements) of Item 1A RFDs after a rival firm’s bankruptcy filing. Using textual analysis methodology, I find that industry peer firms have shorter, less negative, and less forward-looking RFDs after another firm’s bankruptcy announcement. These results imply that industry peers are likely to adjust their tone of mandatory filings (i.e., Item 1A RFDs) in response to a rival firm’s bankruptcy announcement. I further provide evidence that firms do not use separate subsections to disclose their firm- and industry-specific risks within their Item 1A RFDs. Lastly, the lengths of financial, litigation, other-idiosyncratic, and other-systematic topic disclosures significantly decrease for non-announcing industry peers while the length of tax relevant risk topic does not significantly change after a bankruptcy filing. This study adds to mandatory research by identifying the spillover effect of a bankruptcy announcement on Item 1A RFDs. This research also contributes to accounting literature by providing evidence that non-announcing industry peers significantly adjust the sentiment of their risk factor information. Market participants including investors, shareholders, and financial analysts can improve investment decision accuracy by analyzing the industry peers’ risk factor information.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014189
- Subject Headings
- Bankruptcy, Risk, Accounting, Disclosure in accounting
- Format
- Document (PDF)
- Title
- IGNITING COUNTERPRODUCTIVE WORK BEHAVIOR (CWB): THE ROLE OF PERSONALITY.
- Creator
- Allen, Kevin, Harari, Michael, Florida Atlantic University, Department of Management Programs, College of Business
- Abstract/Description
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Evidence in literature suggests that factors of personality are theoretically and empirically linked to counterproductive work behavior (CWB). This paper advances that personality is related to CWB through the prediction of a relationship between personality trait neuroticism factors volatility and withdrawal and CWB factors deviance and withdrawal. Further, workplace stressors are tested as moderators for personality and CWB dimensions. Useful data were provided by 542 working participants....
Show moreEvidence in literature suggests that factors of personality are theoretically and empirically linked to counterproductive work behavior (CWB). This paper advances that personality is related to CWB through the prediction of a relationship between personality trait neuroticism factors volatility and withdrawal and CWB factors deviance and withdrawal. Further, workplace stressors are tested as moderators for personality and CWB dimensions. Useful data were provided by 542 working participants. The study affirms a personality-behavior connection between subscales of Neurotic personality, volatility, and withdrawal, with the two behavioral manifestations of counterproductive work behavior, deviance, and withdrawal. Moderating results are modest, with results indicating a moderating effect limited to only organizational constraints on the volatility-deviance relationship.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014123
- Subject Headings
- Organizational behavior, Personality
- Format
- Document (PDF)
- Title
- THE INFLUENCE OF IDEOLOGY ON CORPORATE SOCIOPOLITICAL ACTIVISM: A STAKEHOLDER PERSPECTIVE.
- Creator
- Rowley, John R., Neubaum, Donald, Florida Atlantic University, Department of Management Programs, College of Business
- Abstract/Description
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Despite the historical norm that businesses should refrain from making public political statements for fear of losing customers, recent history has shown an increase in firms wading into controversial sociopolitical topics. As politics become increasingly pervasive in everyday life, consumers, investors, employees, and the general public expect firms to engage in political topics and make their positions clear. However, the considerations and processes firms undertake in deciding whether to...
Show moreDespite the historical norm that businesses should refrain from making public political statements for fear of losing customers, recent history has shown an increase in firms wading into controversial sociopolitical topics. As politics become increasingly pervasive in everyday life, consumers, investors, employees, and the general public expect firms to engage in political topics and make their positions clear. However, the considerations and processes firms undertake in deciding whether to take political stands are largely unstudied. This study examines the role of firm executives’ ideologies on their propensity to engage in corporate sociopolitical activism (CSA). Further, I examine how the ideologies of organizational, social, and capital market stakeholders also influence the decision to engage in CSA as executives weigh the desires and expectations of key stakeholders. Using stakeholder theory, I argue that CEOs and top management teams (TMTs) are responsive to the ideological leanings of multiple stakeholder groups, while also considering their own political opinions. Studying a random sample of 139 public firms, I find that CEO and TMT ideologies, on their own, are not reliable predictors of firm CSA. Firms are more likely to engage in CSA when the CEO’s ideology is aligned with that of employees or the region surrounding the firm headquarters. I also find that the volatility of the firm’s stock price reduces the propensity toward CSA, suggesting that the potential for adverse impacts on firm value can blunt firms’ CSA efforts. Further, I find that firm factors, such as B2B vs B2C markets, firm size, and firm reputation also predict the likelihood of CSA. The results have theoretical implications by adding to the nascent body of CSA literature, as well as managerial implications for perceptions of the business environment and political influences.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014156
- Subject Headings
- Business and politics, Corporations--Political activity, Political Activism, Ideology
- Format
- Document (PDF)
- Title
- THE INTERPLAY BETWEEN CEO AND CFO GENDER DIVERSITY, AUDIT COMMITTEE GENDER DIVERSITY, AND MANAGERIAL OVERCONFIDENCE FOR AUDIT QUALITY.
- Creator
- Blocker, Tonya, Seavey, Scott E., Thevenot, Maya, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
Prior studies examine either CEO, CFO, or audit committee member gender as a determinant of audit quality. In contrast, this study makes the unique contribution of examining the interactive effects between a gender diverse CEO-CFO dyad and a gender diverse audit committee on audit quality. Further, prior studies examine the attribute of gender as a determinant of audit quality in isolation. I examine the effect of gender on audit quality in tandem with the potentially moderating effect of...
Show morePrior studies examine either CEO, CFO, or audit committee member gender as a determinant of audit quality. In contrast, this study makes the unique contribution of examining the interactive effects between a gender diverse CEO-CFO dyad and a gender diverse audit committee on audit quality. Further, prior studies examine the attribute of gender as a determinant of audit quality in isolation. I examine the effect of gender on audit quality in tandem with the potentially moderating effect of managerial overconfidence. In doing so, this study makes the unique contribution of examining whether the socialized construct of gender, or the cognitive bias of overconfidence, will weigh more heavily on decisions that relate to audit quality. Results supplement social role and role congruity theories which suggest female leaders are socialized to adopt a management style resulting in more transparent financial reporting and higher audit quality. Specifically, I find incrementally higher audit quality associated with a gender diverse CEO-CFO dyad and audit committee. Further, I find firms with overconfident female CFOs are associated with higher audit quality than firms with overconfident male CFOs. This implies the pressure to maintain the socialized gender role appears to constrain the female manager’s overconfident tendencies. Finally, in a subsample of overconfident CFOs, I find gender diverse audit committees temper female more than male overconfidence for effects on audit quality.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014171
- Subject Headings
- Auditing, Gender
- Format
- Document (PDF)
- Title
- THE ROBOT WILL SEE YOU NOW: ARTIFICIAL INTELLIGENCE AND THE MICROFOUNDATIONS OF INSTITUTIONAL CHANGE WITHIN MEDICINE.
- Creator
- Bagdasarian, Jennifer Ling, Goodrick, Elizabeth, Florida Atlantic University, Department of Management Programs, College of Business
- Abstract/Description
-
The presence of artificial intelligence (AI) has incrementally increased in our lives since its introduction in the 1950s and has exponentially increased in the last decade. In medicine, AI holds the promise of providing complete panoramic views of a patient’s medical history, improving medical decision making, avoiding errors such as misdiagnosis and unnecessary procedures, interpretating tests and making treatment recommendations. In this study, I examine the influence of AI on decision...
Show moreThe presence of artificial intelligence (AI) has incrementally increased in our lives since its introduction in the 1950s and has exponentially increased in the last decade. In medicine, AI holds the promise of providing complete panoramic views of a patient’s medical history, improving medical decision making, avoiding errors such as misdiagnosis and unnecessary procedures, interpretating tests and making treatment recommendations. In this study, I examine the influence of AI on decision-making behaviors and the changes to the professional institution of medicine. This paper links theories of institutional change and professions to further our understanding of the processes of change in response to emergent technology. Recognizing that the autonomy of decision making is central to the model of professional work, this study (1) shows how changes in decision-making processes are a driver of change in the institution of professions and (2) highlights how this impacts the professional role identity of health care providers which has implications for how medicine is taught and how diagnoses are made.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014125
- Subject Headings
- Artificial intelligence, Medicine
- Format
- Document (PDF)
- Title
- THE ROLE OF EXECUTIVE COGNITIVE DIVERSITY ON FINANCIAL REPORTING QUALITY.
- Creator
- Li, Tianpei, Thevenot, Maya, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
There has been a strong push for workplace diversity in the United States (U.S.) in recent years. Work teams consisting of employees with diverse backgrounds can augment firms’ competitive advantage. This view is consistent with the cognitive diversity hypothesis, which depicts multiple perspectives generated by cognitive differences among organizational members resulting in creative problem-solving. In this study, I investigate the role of cognitive diversity, measured by differences in a...
Show moreThere has been a strong push for workplace diversity in the United States (U.S.) in recent years. Work teams consisting of employees with diverse backgrounds can augment firms’ competitive advantage. This view is consistent with the cognitive diversity hypothesis, which depicts multiple perspectives generated by cognitive differences among organizational members resulting in creative problem-solving. In this study, I investigate the role of cognitive diversity, measured by differences in a set of seven cultural traits between the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO), in shaping firm financial reporting quality. Relying on the upper-echelon theory that executive characteristics affect firm outcomes and the cognitive diversity hypothesis that diversity reduces groupthink, sparks innovation, increases employee retention rate, and builds a positive firm culture, I expect to find a positive relationship between cognitive diversity and financial reporting quality. In determining firm performance and outcomes, differences in executive demographic characteristics such as age, tenure, gender, and race may have an impact on how executive cognitive perceptions, values, and information sets, shape their decisions and outcomes. Therefore, I then examine the effect of executive demographic diversity on the link between executive cognitive diversity and financial reporting quality. Diversity has received a lot of attention over the last decades, but it is unclear ex ante how different types of diversity interact with each other in shaping firm outcomes. Therefore, I examine but do not hypothesize the direction of the effect of executive demographic diversity on the link between executive cognitive diversity and financial reporting quality.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014140
- Subject Headings
- Financial statements, Executives, Accounting
- Format
- Document (PDF)
- Title
- CEO SOCIAL CAPITAL AND STOCK PRICE INFORMATIVENESS: US AND INTERNATIONAL PERSPECTIVES.
- Creator
- Malinin, Artem, Garcia-Feijoo, Luis, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
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In Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital...
Show moreIn Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital and informativeness is driven by more diverse networks, as measured by gender, nationality, education, or professional diversity. Overall, results suggest that private information existing in networks may result in markets that are more informationally efficient. In Essay 2, I show that CEOs’ social capital has a positive impact on stock price informativeness in an international sample. Different robustness and endogeneity tests confirm those results. Moreover, I find that factors present at the country level can mitigate or reinforce social capital’s impact on informativeness. I consider characteristics not observable within one country that can influence such relation around the world including legal, cultural, and developmental. I uncover that for more developed countries and those with a higher quality of institutions a positive impact of social connectedness is more pronounced. In addition, I show the importance of CEOs’ connections characteristics for their impact on stock price informativeness. I find that if CEOs’ connections come from developed countries or countries that have better formal and informal institutions which affect information transparency, CEOs’ social capital becomes more important for informativeness.
Show less - Date Issued
- 2022
- PURL
- http://purl.flvc.org/fau/fd/FA00013973
- Subject Headings
- Chief executive officers, Social capital (Sociology), Stocks--Prices
- Format
- Document (PDF)
- Title
- PAYOUT POLICY AND STOCK PRICE VOLATILITY: INVESTIGATING THE EQUITY DURATION HYPOTHESIS AND THE REPURCHASES SUBSTITUTION HYPOTHESIS.
- Creator
- Haberstumpf, Craig, Pennathur, Anita, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
-
In Essay 1, I investigate the Equity Duration Hypothesis, which adapts Macaulay’s fixed income analysis to equity securities, finding evidence that dividend payers are less volatile than nonpayers and that dividend yield is negatively associated with volatility for the all-firms sample. Within the payer sample, however, I find unexpected evidence of a positive association when yield includes all dividends but a conflicting negative association when yield includes only quarterly dividends....
Show moreIn Essay 1, I investigate the Equity Duration Hypothesis, which adapts Macaulay’s fixed income analysis to equity securities, finding evidence that dividend payers are less volatile than nonpayers and that dividend yield is negatively associated with volatility for the all-firms sample. Within the payer sample, however, I find unexpected evidence of a positive association when yield includes all dividends but a conflicting negative association when yield includes only quarterly dividends. This ambiguous evidence is corroborated by a one-year portfolio approach, as a previously strengthening negative relationship has transitioned to a strengthening positive one, with results demonstrably trending against the EDH in recent decades. I further find that high-yield stocks that have experienced negative price shocks are highly volatile and strong support for the EDH using firm-level earnings and cash flows as a proxy for dividends, allowing extension of the analysis to nonpaying firms. Unfortunately, I find abundant evidence supporting the assertions of many researchers who suggest that ED is not a unique asset pricing factor, but rather represents a composite of a firm’s characteristics and is redundant with other factors known to be associated with volatility.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014292
- Subject Headings
- Dividends, Stocks--Prices, Bonds
- Format
- Document (PDF)
- Title
- DOES EMERGING GROWTH COMPANY INVESTOR SKEPTICISM DISSIPATE BEFORE THE FIRST REPORTED INDEPENDENT INTERNAL CONTROL AUDIT RESULTS? AN EMPIRICAL INVESTIGATION.
- Creator
- Burke, Lawrence S., Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
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This study examines whether emerging growth company (EGC) investors respond to the annual required internal control disclosures over financial reporting (ICFR). I develop three hypotheses to test across the EGC lifecycle. Specifically, I investigate whether the first year ICFR disclosure, the remediation of a previously reported material weakness ICFR disclosure and the EGC exit are associated with the firm’s cumulative abnormal return over a three-day event window. Prior literature has...
Show moreThis study examines whether emerging growth company (EGC) investors respond to the annual required internal control disclosures over financial reporting (ICFR). I develop three hypotheses to test across the EGC lifecycle. Specifically, I investigate whether the first year ICFR disclosure, the remediation of a previously reported material weakness ICFR disclosure and the EGC exit are associated with the firm’s cumulative abnormal return over a three-day event window. Prior literature has observed that ICFR disclosures by management and the ICFR audit opinion can be shown to be informative to investors. However, I am not aware of any study investigating whether the EGC investors respond to this type of information. I find that the reported ICFR disclosures are not associated with cumulative abnormal returns during their initial ICFR report disclosure or upon exit as informative but do respond to the reporting of material weakness remediation.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014246
- Subject Headings
- Financial statements, Accounting
- Format
- Document (PDF)
- Title
- Is Corporate Scientific Research Still Important? A Study of Corporate Scientific Research, Future Profitability, and Cost of Capital.
- Creator
- HuangFu, JiangBo, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
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I examine the importance of corporate scientific research. It is crucial to understand the role of corporate scientific research because such a knowledge could form an appropriate response to the current decline of corporate scientific research amidst the evolving innovation ecosystem featured with growing university research and tech companies’ research. R&D is often treated as a single construct in accounting and finance research for firm innovation. However, corporate scientific research (...
Show moreI examine the importance of corporate scientific research. It is crucial to understand the role of corporate scientific research because such a knowledge could form an appropriate response to the current decline of corporate scientific research amidst the evolving innovation ecosystem featured with growing university research and tech companies’ research. R&D is often treated as a single construct in accounting and finance research for firm innovation. However, corporate scientific research (“R”) has different implications for firm innovations, “R” creates new knowledge, and reduced investment in "R" may lead to a loss of internal research capability, disrupting the speed and quality of innovation. As such, it is necessary and meaningful to examine "R" separately from "R&D." Historically, corporate scientific research has played an important role in driving breakthrough innovations. Beginning in the 1980s, there has been a decline in corporate scientific research in favor of university research and tech companies’ research. Consequently, this raises a question: if corporate scientific research was important, is it still important? This is a fundamental question because if corporate scientific research is still important, declining or even stagnant corporate scientific research would present an issue of concern for firms and the economy.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014235
- Subject Headings
- Scientific research, Corporations--Research, Stocks, Research and development
- Format
- Document (PDF)
- Title
- An Empirical Analysis of The Impact of Mandatory Membership Fee on Residential Real Estate Price.
- Creator
- Gifford, Trishanna, Caudill, Steven, Florida Atlantic University, Department of Economics, College of Business
- Abstract/Description
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This empirical study examines the impact of a homeowners association (HOA) mandatory membership fee on residential real estate prices, a topic that has not been empirically addressed in the real estate literature. A mandatory membership fee is defined as an initiation fee charged by HOAs that grants homeowners country club access. Many studies have examined the impact of the presence of homeowners associations on price but only a few studies have examined the impact of homeowners associations...
Show moreThis empirical study examines the impact of a homeowners association (HOA) mandatory membership fee on residential real estate prices, a topic that has not been empirically addressed in the real estate literature. A mandatory membership fee is defined as an initiation fee charged by HOAs that grants homeowners country club access. Many studies have examined the impact of the presence of homeowners associations on price but only a few studies have examined the impact of homeowners associations on price by estimating the impact of homeowners association fees. This research expands the HOA literature by examining the specific HOA fee characteristics of a mandatory membership fee. In this analysis, hedonic price models (HPM) are used to estimate the impact of mandatory membership fee on price by analyzing 31,704 observations of single family home sales between 2018 and 2019 in Palm Beach County, Florida using data from a local multiple listing service. Specifically, Ordinary Least Squares (OLS) models using two dependent variables, sold price and natural log of sold price, with mandatory membership fee as the independent variable of interest are used to estimate the relationship between mandatory membership fee and sales price. By controlling for property, neighborhood, and market characteristics, the hypothesis I investigate states that the impact of the presence of a mandatory membership fee on sales price is negative.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014345
- Subject Headings
- Housing--Prices, Residential real estate, Homeowners' associations, Hedonic pricing
- Format
- Document (PDF)
- Title
- EXTENDING THE EFFECT OF PRIOR ENTREPRENEURIAL EXPOSURE ON ENTREPRENEURIAL PERSISTENCE: AN INTENTION BASED MODEL.
- Creator
- Washington, Rozita B., Neubaum, Donald O., Florida Atlantic University, Department of Management Programs, College of Business
- Abstract/Description
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This research investigates the impact of prior entrepreneurial exposure on an entrepreneur’s intention to persist. The objective of this study was to employ the Theory of Planned Behavior based logic to investigate its mediating effect of prior entrepreneurial exposure on entrepreneurial persistence intention among entrepreneurs, and whether their perception of the quality of that exposure or experience influences entrepreneurs’ intention to persist. Specifically, this study explores five...
Show moreThis research investigates the impact of prior entrepreneurial exposure on an entrepreneur’s intention to persist. The objective of this study was to employ the Theory of Planned Behavior based logic to investigate its mediating effect of prior entrepreneurial exposure on entrepreneurial persistence intention among entrepreneurs, and whether their perception of the quality of that exposure or experience influences entrepreneurs’ intention to persist. Specifically, this study explores five exogenous influences on persistence intention. This study examines a final sample of 231 entrepreneurs from three data sources. The findings of this study indicate that subjective norms play a mediating role in the relationship between prior founding experience and persistence intention. The relationship between the perceived quality of prior entrepreneurial exposure and persistence intention behavior is also explained by subjective norms. Overall, it is not the exposure that leads to persistence intention, but the quality of the exposure that influences entrepreneur’s intention to remain in business. This study extends entrepreneurship literature on how exogenous variables impact entrepreneurial persistence intention through attitudinal factors.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014337
- Subject Headings
- Entrepreneurship, Entrepreneurship--Research, Business
- Format
- Document (PDF)
- Title
- LIMITED PARTNER ESG STRATEGIES AND ESG APPROACHES BY PRIVATE EQUITY FUNDS.
- Creator
- Buehler, Robert G., Cumming, Douglas, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
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This study utilized environmental, social, and governance (ESG) data to analyze how institutional investors' strategies relate to the approaches of the private equity (PE) funds they invest in. Using limited partner (LP) investor and general partner (GP) PE fund data from Preqin, I created ESG scores for both LP and PE funds. Ordinary least-squares regression showed a significant, positive relationship between LP/GP ESG strategies. However, the relationship became negative and significant...
Show moreThis study utilized environmental, social, and governance (ESG) data to analyze how institutional investors' strategies relate to the approaches of the private equity (PE) funds they invest in. Using limited partner (LP) investor and general partner (GP) PE fund data from Preqin, I created ESG scores for both LP and PE funds. Ordinary least-squares regression showed a significant, positive relationship between LP/GP ESG strategies. However, the relationship became negative and significant when firm-, fund-, and country-level controls were added. This misalignment between statements and action, often called greenwashing, suggests that firms are driven to ESG reporting due to external factors and do not feel accountable for investment decisions that follow strategic disclosures. Investor environmental (E), social (S), and governance (G) strategies had different relationships with GP ESG approaches. Public institutional investors, fund size, and the presence of a civil law system were positive contributing factors to the LP/GP ESG relationship. Fund performance was negatively associated with the relationship. There was also a significant difference in the LP/GP ESG approach between European PE funds versus those in North America. These findings show that E, S, and G factors may be more accurately analyzed separately than as one combined cluster. The findings also show that local conditions influence ESG strategic alignment between LPs and GPs. They suggest policymakers consider unique country-level attributes and differences in fund-level characteristics when attempting to influence ESG disclosure. ESG rating services could consider including factors that measure alignment between investors’ strategic statements and their investment decisions. The results provide valuable information on corporate social responsibility (CSR) in private markets, which has yet to be broadly studied compared to the extensive CSR literature available on public companies.
Show less - Date Issued
- 2023
- PURL
- http://purl.flvc.org/fau/fd/FA00014300
- Subject Headings
- Private equity funds, Limited partnership, Social responsibility of business
- Format
- Document (PDF)
- Title
- CEO CHARITABLE INCLINATION AND CORPORATE TAX AVOIDANCE.
- Creator
- Wang, Lin, Kohlbeck, Mark, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
-
Many CEOs are philanthropists and express their passion for social welfare through service to various charities and foundations. However, it is unclear whether these behaviors are driven by intrinsic motivations, such as prosocial value and altruism, or by extrinsic and egoistic motivations like reputation and social network building. To understand the underlying motivations and consequences of these behaviors, I build on the self-determination theory and investigate how CEO charitable...
Show moreMany CEOs are philanthropists and express their passion for social welfare through service to various charities and foundations. However, it is unclear whether these behaviors are driven by intrinsic motivations, such as prosocial value and altruism, or by extrinsic and egoistic motivations like reputation and social network building. To understand the underlying motivations and consequences of these behaviors, I build on the self-determination theory and investigate how CEO charitable inclination, defined as CEO sitting on charity boards, affects corporate tax avoidance. I further examine how CEO charitable inclination impacts firm value through corporate tax policies. I find that CEO charitable inclination is negatively associated with corporate tax avoidance. Specifically, firms with charitable-inclined CEOs pay higher cash taxes and are less likely to engage in aggressive forms of tax planning, such as tax shelters. The results are robust to different model specifications and alternative measures. Further, I conduct additional analysis examining the underlying motivations of CEO charitable inclination and find it positively associated with intrinsic motivations, such as prosocial values and high moral standards. These results provide strong evidence that charitable-inclined CEOs, driven by their intrinsic motivations, are concerned about social welfare and government revenue. These CEOs are less likely to engage in unethical or immoral behaviors, such as aggressive tax planning and tax evasion. However, I do not find evidence that CEO charitable inclination has a moderating effect on the relationship between corporate tax avoidance and firm value.
Show less - Date Issued
- 2022
- PURL
- http://purl.flvc.org/fau/fd/FA00013903
- Subject Headings
- Corporations--Taxation, Charity
- Format
- Document (PDF)
- Title
- ESSAYS ON GOVERNMENT CONTRACTING AND PRIVATE INVESTMENT FIRMS: IMPLICATIONS FOR CORPORATE FINANCE.
- Creator
- Suleymanov, Masim, Cumming, Douglas, Javakhadze, David, Florida Atlantic University, Department of Finance, College of Business
- Abstract/Description
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The modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of...
Show moreThe modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of government customers on the contractor's operating performance and information quality. I find that government contracting improves the likelihood of successful exits via initial public offering (IPO) or acquisition and reduces the likelihood of a liquidation. I also find that the suppliers’ bargaining power relative to the government moderates the relationship between government contracting and VC investment exits. The increased suppliers’ bargaining power mitigates the positive relationship between government contracting and the likelihood of IPOs. The impact of government contracting on the likelihood of acquisitions and liquidations is more substantial for suppliers with greater bargaining power. The results are robust for reputable and non-reputable VC firms, alternative model specifications, and adjustments for potential endogeneity.
Show less - Date Issued
- 2022
- PURL
- http://purl.flvc.org/fau/fd/FA00013917
- Subject Headings
- Public contracts, Venture capital, Corporations—Finance
- Format
- Document (PDF)
- Title
- Cognitive Implications of Biculturalism: Impact on Entrepreneurial Intentions.
- Creator
- Dheer, Ratan, Lenartowicz, Tomasz, Florida Atlantic University, College of Business, Department of Management
- Abstract/Description
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Globalization has increased the number of individuals who identify with more than one culture. Studies in cultural psychology suggest that the manner in which bicultural individuals manage their dual cultural identities has important implications for them and for their host societies. While existing studies have examined the psychological and sociocultural consequences of biculturalism, only little attention has been paid to understanding its economic consequences. Importantly, the effect...
Show moreGlobalization has increased the number of individuals who identify with more than one culture. Studies in cultural psychology suggest that the manner in which bicultural individuals manage their dual cultural identities has important implications for them and for their host societies. While existing studies have examined the psychological and sociocultural consequences of biculturalism, only little attention has been paid to understanding its economic consequences. Importantly, the effect that managing dual cultural identities has on bicultural individual's entrepreneurial intentions has remained unexplored. Given the fact that entrepreneurship is vital to the economic success of nations and biculturals are said to play an important role as founders of several new business ventures, it has become critical to analyze the impact that biculturalism has on bicultural individual's propensity to start new business ventures. This dissertation aspires to fill this gap in research. In this dissertation, I used the identity integrationist perspective to argue that amongst biculturals, those with high identity integration will display greater entrepreneurial intentions than those with less identity integration. Further, I argued that cognitions, specifically cognitive cultural intelligence, cultural metacognition and cognitive flexibility, will mediate the effect of bicultural identity integration on entrepreneurial intentions. Empirical analysis supported the argument that biculturals with high identity integration display greater entrepreneurial intentions. Further, cognitive cultural intelligence and cultural metacognition were found to mediate the effect of identity integration on entrepreneurial intentions. I also assessed the role that attitude towards risk taking and attitude towards autonomy play in explaining biculturals' entrepreneurial intentions. I argued that biculturals with more positive attitude towards risk taking and more positive attitude towards autonomy will display greater entrepreneurial intentions. Empirical analysis supported this viewpoint. Further, based on entrepreneurial cognition stream of research, I argued that cognitions, specifically cognitive cultural intelligence, cultural metacognition and cognitive flexibility will positively influence biculturals attitude towards risk taking and attitude towards autonomy. Empirical analysis found support for the positive effect of cognitive flexibility on biculturals' attitudes towards risk taking and autonomy. Taken together, results of this dissertation offer a finer grained understanding of the factors and the mechanism that influence bicultural individual's entrepreneurial intentions.
Show less - Date Issued
- 2015
- PURL
- http://purl.flvc.org/fau/fd/FA00004493
- Subject Headings
- Biculturalism., Entrepreneurship., Diffusion of innovations.
- Format
- Document (PDF)
- Title
- BOARD ETHNIC AND RACIAL DIVERSITY: DOES IT IMPACT EARNINGS QUALITY?.
- Creator
- Mungai, Ann W. Nduati, Thevenot, Maya, Florida Atlantic University, School of Accounting, College of Business
- Abstract/Description
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I examine whether and how racially/ethnically diverse board impacts the quality of reported earnings. Agency theory suggests that the board of directors acts as a robust governance mechanism to reduce opportunistic managerial behavior that may harm shareholders' wealth. Further, diversity coalesces a variety of attributes from different directors that are valuable in predicting organizational outcomes. The majority of extant literature focuses on gender-diverse boards and various firm...
Show moreI examine whether and how racially/ethnically diverse board impacts the quality of reported earnings. Agency theory suggests that the board of directors acts as a robust governance mechanism to reduce opportunistic managerial behavior that may harm shareholders' wealth. Further, diversity coalesces a variety of attributes from different directors that are valuable in predicting organizational outcomes. The majority of extant literature focuses on gender-diverse boards and various firm outcomes, while little is known about how directors' race/ethnicity affects earnings quality. Using a sample of firms publicly traded in the U.S., I find that increased board racial/ethnic diversity is associated with better earnings quality as proxied by lower discretionary accruals and lower probability of internal control weaknesses and financial statement restatements. I further examine whether firms with increased diversity (racial/ethnic and gender diversity) enjoy incrementally higher earnings quality than other firms. However, I fail to find support that racial/ethnic and gender intersectionality is associated with improved earnings quality. Lastly, based on critical mass theory, I test whether an industry descriptive norm is necessary for firms to enjoy increased earnings quality. I find that racial/ethnic directors have a meaningful impact on a firm's earnings quality regardless of the level of diversity; even firms with lower than the industry descriptive norm of racial/ethnic diversity enjoy improved earnings quality.
Show less - Date Issued
- 2021
- PURL
- http://purl.flvc.org/fau/fd/FA00013754
- Subject Headings
- Boards of directors, Ethnic diversity, Corporate profits
- Format
- Document (PDF)
- Title
- An Empirical Test of a Theoretical Model of Surprise in Marketing.
- Creator
- Toteva, Irina T., Shaw, Eric H., Florida Atlantic University, College of Business, Department of Marketing
- Abstract/Description
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The purpose of this research was to construct and empirically test a theoretical model of surprise and its impact on consumer affect and behavior. First the literature on the emotion of surprise was reviewed with particular emphasis on classification and process models of surprise. A theoretical model of surprise was constructed. A new concept called motivated meaning integration (MMI) was proposed. MMI takes place in a setting that includes the interaction of the appraisal process with...
Show moreThe purpose of this research was to construct and empirically test a theoretical model of surprise and its impact on consumer affect and behavior. First the literature on the emotion of surprise was reviewed with particular emphasis on classification and process models of surprise. A theoretical model of surprise was constructed. A new concept called motivated meaning integration (MMI) was proposed. MMI takes place in a setting that includes the interaction of the appraisal process with factors such as environmental uncertainty and consumers’ individual differences. These interactions impact outcomes such as consumer affect and buying behavior. Ten hypotheses were derived from the theoretical model and empirically tested using several pretests and two main studies. The present research designed and evaluated several surprise manipulations and MMI manipulation checks to effectively test the proposed relationships. Participants were recruited from Amazon Mechanical Turk (Mturk). Although many of the hypotheses were not supported, some important ones were. The results provide some support that a consumer’s sense of personal control interacts with MMI to impact a consumer’s likelihood of choosing unknown or mystery products ( e.g. products in a known category such as beauty products but the actual products are selected by the company). Specifically, consumers who experienced a low sense of personal control (compared to a high sense personal control) were more likely to choose mystery products (vs. objectively similar known products) after they encountered surprise with mystery (vs. with known) elements. The results also provided some support that productivity orientation interacts with surprise appraisal to impact consumer affect. Particularly, consumers with high productivity orientation (vs. low) were more likely to experience higher positive affect after encountering surprise with mystery (vs. with known) elements. The primary implication for theory involves refining the conceptualization of surprise appraisal, especially fast MMI, and adopting adequate measure for testing it. The most relevant implication for marketing management is to offer products with mystery elements because consumers are more likely to choose additional mystery products. If this dissertation stimulates others to pursue research on surprise theory in marketing, my efforts to continue developing scientific theory will be worth it.
Show less - Date Issued
- 2018
- PURL
- http://purl.flvc.org/fau/fd/FA00013102
- Subject Headings
- Marketing., Surprise., Empirical Research.
- Format
- Document (PDF)
- Title
- An Examination of Factors Impacting Managerial Behavior towards Compliance Controls: Impact of the EPA Audit Policy.
- Creator
- Davis, Phebian, Higgs, Julia, Florida Atlantic University, College of Business, School of Accounting
- Abstract/Description
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The United States established the Environmental Protection Agency (EPA) to monitor and enforce compliance with environmental pollution standards through various programs and policies. One such policy, the Audit Policy, allows companies to voluntarily self-report violations to the Agency in exchange for elimination of certain penalties. Despite the policy, firms still incur large environmental penalties, thus indicating the need for better understanding of the policy. A necessary but not...
Show moreThe United States established the Environmental Protection Agency (EPA) to monitor and enforce compliance with environmental pollution standards through various programs and policies. One such policy, the Audit Policy, allows companies to voluntarily self-report violations to the Agency in exchange for elimination of certain penalties. Despite the policy, firms still incur large environmental penalties, thus indicating the need for better understanding of the policy. A necessary but not sufficient condition for penalty relief under the Audit Policy requires discovery of violations by an environmental audit or a compliance management system. This research explores the option of discovery by a compliance management system and examines the motivation of managers to invest in an environmental management system (EMS). The theory of reasoned action (TRA) argues that attitude and subjective norms precede intentions. I use this theory to investigate what factors cause a manager to invest in an environmental management system (EMS). Additionally, I examine whether environmental attitude, tolerance for ambiguity and willful blindness are antecedents to attitude towards an EMS. In this study, I develop and test a scale of the willful blindness construct and measure its impact on managerial decision-making. The willful blindness construct development produced a one-item measure. My results support all hypotheses except for the predicted link between tolerance for ambiguity and attitude.
Show less - Date Issued
- 2017
- PURL
- http://purl.flvc.org/fau/fd/FA00005924
- Subject Headings
- Dissertations, Academic -- Florida Atlantic University, United States. Environmental Protection Agency--Auditing., Compliance., Environmental pollution.
- Format
- Document (PDF)