Gary C. Biddle, Robert M. Bowen and James S. Wallace
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits…
Abstract
Traces the growth in the use of economic value added (EVA, previously known as residual income) and uses two previous research studies to assess some claims for its merits. Compares EVA’s ability to explain stock returns with that of earnings before extraordinary items (EBEI) and cash flow using 1984‐1993 US data; and finds EBEI is most closely related. Examines EVA’s incentive effects on management investing, financing and operating decisions and shows that, although EVA users decreased new investment, increased dispositions of assets, increased share repurchases, used assets more intensively and increased residual income, market reactions to this were weak. Suggests possible reasons for this and concludes that EVA may align management incentives with shareholders’ interests but this does not necessarily increase shareholder value.
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Hanjoon Kim and Paul D. Berger
This paper investigates the determinants of the capital structure of large corporations headquartered in the United States and Korea. We consider five explanatory variables…
Abstract
This paper investigates the determinants of the capital structure of large corporations headquartered in the United States and Korea. We consider five explanatory variables: profit, company size, non‐debt tax shields, growth, and business‐risk, along with several industry indicator variables as independent variables and examine, for each country, the relationship to market value based leverage ratio. With our rigid criteria for inclusion in the study, we study the top thirteen companies (by size) in each of seven industries. The majority of our findings indicate that we can generalize to Korea what has been found for Japanese companies/industries relative to the U.S.
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This paper reports the results of an empirical study of the determinants of capital structure of large Latin American companies. Variations with regard to the country, industry…
Abstract
This paper reports the results of an empirical study of the determinants of capital structure of large Latin American companies. Variations with regard to the country, industry, and size of a company are examined for a sample of two hundred and thirty large companies located in twentytwo Latin American countries. This study is the first to examine the capital structures of this large set of Latin American companies. The results of this study indicate that while size does not seem to be significant, both country and industry are significant determinants of capital structure in Latin America not only in bivariate tests but also in multivariate statistical tests. Multinational and diversified companies, therefore, cannot assume uniformity of capital structure across countries and industries in Latin America and, they must take these differences into account in developing and setting capital structure, financing, evaluation, and management policies for their subsidiaries.
William S. Hopwood and James C. McKeown
This study investigates the time‐series properties of operating cash flows per share and earnings per share for all manufacturing firms on the Compustat Quarterly Industrial tape…
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This study investigates the time‐series properties of operating cash flows per share and earnings per share for all manufacturing firms on the Compustat Quarterly Industrial tape for which sufficient data are available. Both individually‐identified and “premier” models are compared on the basis of their relative fit and forecasting accuracy. The empirical results suggest that for both accounting variables the individually‐identified models outperform the premier models, although this advantage is larger for earnings, and for forecast horizons beyond one quarter ahead. A major conclusion of the study is that the time‐series properties of cash flows are quite different than those of earnings. In particular, the cash flow series are considerably less predictable, as shown by their relatively high incidence of white‐noise series and relatively large forecast errors.
Leo Cheatham and Carole Cheatham
Evidence in the literature repeatedly points towards failure to understand cash flow shortages as a major problem of small business operators. Theoretically, they should be able…
Abstract
Evidence in the literature repeatedly points towards failure to understand cash flow shortages as a major problem of small business operators. Theoretically, they should be able to use financial statements prepared by their accountants as planning and control tools. However, because of accountants' use of the accrual system, rather than cash, and the meticulous detail that tends to make statements too complicated for the untrained user, many operators simply do not attempt to use these statements.
Claretha Hughes, Lionel Robert, Kristin Frady and Adam Arroyos
Adam Waytz and Vasilia Kilibarda
In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought…
Abstract
In 2011, Sherry Hunt was a vice president and chief underwriter at CitiMortgage headquarters in the United States. For years she had been witnessing fraud, as the company bought billions of dollars in mortgage loans from external lenders that did not meet Citi credit policy and sold them to government-sponsored enterprises (GSEs). This resulted in Citi selling to GSEs such as Fannie Mae and Freddie Mac pools of loans that were considerably defective and thus likely to default. Citi had also approved hundreds of millions of dollars' worth of defective mortgage files for U.S. Federal Housing Administration insurance. After reporting the mortgage defects in regular reports, notifying and working closely with her direct supervisor (who was subsequently asked to leave Citi after alerting the chairman of the board to these issues) to stop the purchase of defective loans, leaving anonymous tips on the FBI's and the Department of Housing and Urban Development's websites, and receiving threats from two of her superiors who demanded that she change the results of her quality control unit's reports, the shy and conflict-avoidant Hunt had to decide who she should tell about the fraud, and how.
The case gives students the opportunity to recommend how Hunt should proceed based on their analysis of the stakeholders involved. To aid instructors, the case includes Kellogg-produced videos of Hunt—the only on-camera interviews she has ever given—explaining what happened after she reported the fraud to Citi HR and, later, the U.S. Department of Justice. Within the case, students are also briefly exposed to legislation and bodies pertinent to whistle-blowing in the United States, including the Dodd-Frank Act, the Sarbanes-Oxley Act, and the SEC Office of the Whistleblower.
This case won the 2014 competition for Outstanding Case on Anti-Corruption, supported by the Principles for Responsible Management Education (PRME), an initiative of the UN Global Compact.
Analyze stakeholders' motivations to prepare counter-arguments to the resistance one might encounter when reporting unethical behavior
Write a script for who to tell, how, and why
Discuss how incentive structures, management, and culture play roles in promoting or hindering ethical behavior in organizations
Identify behaviors that help a whistle-blower be effective
Gain experience resolving ethical dilemmas in which two values may conflict, such as professional duty and personal ethics
Analyze stakeholders' motivations to prepare counter-arguments to the resistance one might encounter when reporting unethical behavior
Write a script for who to tell, how, and why
Discuss how incentive structures, management, and culture play roles in promoting or hindering ethical behavior in organizations
Identify behaviors that help a whistle-blower be effective
Gain experience resolving ethical dilemmas in which two values may conflict, such as professional duty and personal ethics
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Stephen L. Vargo, Robert F. Lusch, Melissa Archpru Akaka and Yi He
Bashir Tijani, Jin Xiaohua and Robert Osei-Kyei
Mental ill-health among construction project professionals (CPPs) is a significant, persistent and unresolved problem that sparked the proliferation of literature worldwide…
Abstract
Purpose
Mental ill-health among construction project professionals (CPPs) is a significant, persistent and unresolved problem that sparked the proliferation of literature worldwide. Despite the diverse research publications, a systematic review to reveal forms of mental ill-health, cause of mental ill-health and coping is lacking.
Design/methodology/approach
This paper aims to systematically reviews the existing body of knowledge on mental health in the construction project by analyzing 60 papers published between 1989 and 2020 (years inclusive) using the preferred reporting item for systematic reviews and meta-analysis. Academic journals between 1989 and 2020 were selected for this study because the first published paper on the mental health of construction managers commenced in 1989 and current studies are published in 2020.
Findings
The findings show that stress, job burnout, depression, anxiety and substance use disorder (SUD) are prominent forms of mental ill-health among CPPs, with an absence of project-related measuring scales for evaluating the mental ill-health symptoms. Moreover, generic stressors including long working hours, time pressure and work overload were used to establish the root causes of mental ill-health by ignoring construction project related stressors for mental ill-health. Problem-focused coping is more efficient than emotional focused coping in mitigating work stress, job burnout, depression, anxiety, but little is known on the influence of coping strategies on SUD. Knowledge gaps and future research directions were identified. This research contributes to a comprehensive understanding of the implications of mental health management on construction projects.
Originality/value
The findings of this study contribute toward understanding the need to investigate individual mental ill-health as against the existing practices of considering all forms of mental ill-health as one umbrella. It also challenges limitations in the utilization of generic stressors to determines factors for mental ill-health by the introduction of the Swisse cheese theoretical model.
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Kerstin A. Aumann and Cheri Ostroff
In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being…
Abstract
In recent years, theory and research have been increasingly devoted to understanding organizational behavior in cross-cultural and global contexts, with particular attention being paid to the appropriateness of various human resources management (HRM) practices because practices that may be effective within one cultural context may not be effective in other cultural contexts. This chapter argues that a multi-level perspective is needed to explain the interplay between HRM practices and employee responses across cultural contexts. Specifically, the multi-level framework developed in this chapter elucidates the importance of fit between HRM practices, individual values, organizational values, and societal values. Societal values play a key role in the adoption of HRM practices, and the effectiveness of these HRM practices will depend largely on “fit” or alignment with the values of the societal culture in which the organization is operating. HRM practices also shape the collective responses of employees through organizational climate at the organizational level and through psychological climate at the individual level. For positive employee attitudes and responses to emerge, the climate created by the HRM practices must be aligned with societal and individual values. Building on these notions, the strength of the societal culture in which the organization is operating serves as a mechanism that links relationships between climate, value fit, and attitudes across levels of analysis. The chapter concludes with some recommendations for future research and implications for practice.