Articles tagged with Financial Management
The JOBS Act has led to a 25% surge in initial public offerings (IPOs), with three-quarters coming from the biotechnology/pharmaceutical industry. The study found that companies heavily invested in product research and development benefit most from the act's provisions.
Researchers found that CoCo bonds can worsen financial crisis situations due to a 'convert to steal' mechanism. This construction shifts losses onto bondholders in times of need, encouraging banks to further escalate their crisis.
A new study by Andriy Bodnaruk and Andrei Simonov found that financial experts, including mutual-fund managers, do not outperform ordinary investors in making investment decisions. The researchers suggest that focusing on passive strategies can help minimize trading costs.
Research by Michigan State University scholars found that financial experts fail to consistently beat non-professional investors, suggesting average investors might handle their own portfolios for better results.
A study by the University at Buffalo School of Management found that startups reap the most benefits from partnering with a small number of established companies, gaining access to resources and markets. However, as more partners are added, internal capability weakens and costs exceed benefits, ultimately turning negative.
A study by Iowa State University researchers found that workplace bullying victims often feel silenced due to fear of being disbelieved. Supportive co-workers and managers can help create a culture where victims feel heard and believed.
A study by MIT professor Antoinette Schoar found that strong client-banker relationships reduce loan delinquencies and defaults. When loan officers leave, good-standing clients increase their probability of becoming delinquent on loans by almost 22 percent.
A new study from the University of Toronto's Rotman School of Management found that institutional investors and analysts tend to overlook social norms when investing in 'sin' companies, such as tobacco, alcohol, and gaming firms. However, when performance expectations rise, these investors become more willing to compromise on their val...
Researchers analyzed fails-to-deliver trades and found they were not responsible for falling stock prices. Instead, the study showed that these trades had a net beneficial effect on market liquidity and reduced volatility.
A study by researchers at the University at Buffalo found that introducing new products as brand extensions can lead to increased revenue. Sub-branding was also shown to be effective in generating greater revenues for these extensions, such as Gillette Mach3.
The article examines how backtesting can lead to overfitting, resulting in misleadingly good results that don't translate to real-world performance. Researchers argue that few companies and researchers conduct out-of-sample testing, leading to a lack of transparency in investment strategies.
A study of 33,000 IPOs from 88 countries found that US IPO activity has not kept pace with the country's economic importance, particularly among small companies. Globalization has benefited other countries, allowing them to overcome challenges to investment caused by weak domestic institutions.
A University of Minnesota study found that using treadmills at work increases physical activity by 7-8% and boosts productivity. Productivity improved as employees adjusted to walking while working, with a substantial increase in overall performance.
A new study from the University at Buffalo School of Management found that companies with investment banking directors are more likely to make better acquisitions, resulting in increased shareholder value. These directors help firms select better targets, accurately determine their value, and negotiate lower advisory fees.
A RAND Corporation study found that workplace wellness programs can save $3.78 in healthcare costs for every dollar invested in managing chronic illnesses. However, lifestyle management components were found to have smaller savings or no significant effect on health care costs.
A new study from the University of Toronto's Rotman School of Management found that businesses with head offices in highly religious communities were less likely to experience stock price crashes due to not disclosing bad financial news. Strong social norms, regardless of whether individuals are religious or not, can help minimize bad ...
A new study found that financial deprivation can lead to a decline in ethical principles, resulting in workplace sabotage and theft. People who experience financial loss are more likely to judge others' unethical behavior more leniently.
A new study by San Francisco State University researchers identifies specific behaviors that lead to compulsive buying, including poor credit management and emotional purchases. The study found that shopaholics are more likely to buy things to boost their mood or improve their life.
A study found that professionals overestimate applicants' abilities due to favorable circumstances, inflating qualifications and failing to account for school performance. This attribution error affects graduate school admissions and job evaluations.
University Research Co., LLC (URC) received the first ever Excellence in Mentorship Award from USAID for its development assistance to WI-HER, a woman-owned small business. The award recognized URC's significant impact on WI-HER's gender strategies and innovation.
According to a new theory by Mats Alvesson and André Spicer, functional stupidity can raise productivity in organizations by promoting unity and consensus. However, this 'stupidity' can also lead to risks and problems if critical questions are not posed about decisions and structures.
The DairyCents app estimates income over feed cost per cow, helping farmers plan financially. It also compares feed prices across the country and allows farmers to reference their current feed prices, potentially leading to better deals with suppliers.
A study from Indiana University Kelley School of Business found that mutual fund managers over-weight companies from their home states by 12 percent, resulting in excessively risky portfolios. The practice is more pronounced among inexperienced managers and those with limited resources.
Researchers developed a 'fragility index' to measure likelihood of global stock market losses by identifying periods with high risk exposures across multiple countries. The index shows an increasing probability of a global draw-down when systemic risk is high, resulting in more extreme stock movements.
A study in the Journal of Consumer Research found that consumers react differently to units of measurement depending on their mental state. Consumers tend to focus on numbers when in a concrete mindset, but shift to unitary comparisons when in an abstract mindset.
Research challenges common assumption that direct employee involvement leads to high job satisfaction, which in turn boosts performance. Enriched job design approach offers employees discretion, variety, and responsibility, while high involvement management model encourages team working and idea-capturing schemes.
Researchers at the University of Montreal are working on a project to create the first shopping mall specifically adapted for individuals with physical handicaps. The initiative aims to improve accessibility and social inclusion for people with disabilities, with features such as intelligent wheelchairs and personalized guides.
A study by University at Buffalo researchers found that humble leaders model growth and learning, and legitimize followers' journeys. Humble leaders who admit mistakes, praise followers, and learn from errors tend to have higher-performing organizations.
Matthew Ritsko, a Financial Manager at NASA's Goddard Space Flight Center, won the 2011 Presidential Securing Americans' Value and Efficiency (SAVE) award for his proposal to create a 'lending library' of space tools and hardware. The idea garnered over 19,000 votes from more than 48,000 Americans.
A new study from the University of Toronto's Rotman School of Management finds that smart managers engage in earnings manipulation and insider trading due to limited capacity and ethical weaknesses. The study suggests that choosing less ethical managers may be in the best interests of current shareholders but not future ones.
A new study by András Tilcsik found that employers are 40% less likely to grant an interview to openly gay men compared to their heterosexual counterparts. The study, which analyzed over 1,700 job openings, revealed significant barriers in the hiring process for gay applicants.
A single savings goal is more effective in saving money compared to having multiple goals. This is because it puts individuals in an action-oriented mindset, helping them save more. The study found that multiple goals can lead to people overthinking and making trade-offs, resulting in less savings.
A new study by the Commonwealth Fund reveals that Medicaid managed care plans owned by publicly traded for-profit companies spend an average of 14% on administrative costs, compared to 10% for non-publicly traded plans. The report highlights concerns about quality of care and efficiency in these plans.
A large cohort study found that initially healthy middle-aged women with new-onset atrial fibrillation had an increased risk of cardiovascular, noncardiovascular, and all-cause death. The risk was partly attributed to nonfatal cardiovascular events such as congestive heart failure and stroke.
A new study from the journal Financial Management found that politically connected firms enjoy higher leverage, lower taxes, and regulatory protection. This study highlights the benefits of having government ties for corporate success, suggesting distortions in public resource allocation are common globally.
A study of over 2,000 business units found that employee work perceptions predict important organizational outcomes. Employee job satisfaction is linked to higher retention rates, increased customer loyalty, and better financial performance.
A study found that corporate directors tend to ignore anonymous whistleblower allegations, especially if they threaten their reputation. In contrast, non-anonymous allegations are more likely to trigger investigations and resource allocation.
A study by Angela Lyons and Money Management International found that debtors who completed credit counseling sessions showed improvement in their financial knowledge, attitudes, and behavioral intentions. Despite initial challenges due to medical bills or unemployment, debtors benefited from the counseling, learning essential basic fi...
New research reveals that auditors' concern for their reputation can lead to inaccurate reporting of company fraud. The study finds that long-term relationships between auditing firms and clients can increase the likelihood of such misreporting.
New research suggests that reduced deforestation rates in the Amazon may lead to increased fire incidences, potentially offsetting carbon savings from the UN's REDD programme. Sustainable land management practices are needed to prevent this.
A sociological study examines the largest US corporations and finds that capital dependence on investors creates incentives for financial malfeasance. The multilayer-subsidiary business model also creates opportunities for managers to engage in improper reporting, leading to significant restatements.
A new study by Professors Sunil Mithas and Henry C. Lucas, Jr., published in Management Science, found that firms paying higher wages to foreign IT professionals do not depress the salaries of American colleagues. Instead, this practice may actually benefit US companies by leveraging a culturally diverse workforce.
A new study suggests that the G20 Toronto summit may not lead to significant reforms in financial regulations. The study highlights the challenges of coordinating policies among countries with diverse financial structures, making harmonization a difficult task.
A new Rotman paper finds that physically enclosing relevant materials from unpleasant memories improves psychological closure, creating a sense of well-being. The study's findings have implications for products and services that relieve stress and anxiety related to past events or tasks.
A new INFORMS study proposes incentivizing shippers to take on more port security responsibilities, reducing the burden on the federal government. This shift could lead to cost savings and improved security measures in the supply chain.
A new study found that CEO charismatic visions can lead to poor decisions by financial analysts and investors. Analysts who follow firms with high CEO charisma are more likely to make forecasting errors, which can impact stock prices and investor outcomes.
Research by Stylianos Kavadias and Svenja C. Sommer suggests that brainstorming techniques are more effective when participants from different specialties collaborate to develop simpler products. The study found that in highly technical products, specialists work individually before collaborating through 'nominal' groups.
A new study found that toy recalls in 2007 had a ripple effect on the industry, with even non-recalled companies experiencing a 25% decline in Christmas season sales. Sales of toys from manufacturers named in the recalls dropped by 30%, while those from unaffected companies remained unaffected.
A recent study published in Financial Management argues that Chapter 11 reorganizations fail to offer a clean slate for firms to establish new capital structures. Despite substantial reductions in debt burden, firms still end up with higher debt ratios than industry norms.
A study published in Management Science found that presenting small gains alongside large losses can improve decision-making by reducing mental pain. The 'Silver Lining Effect' suggests that people prefer separating positive and negative information to mitigate the impact of loss, with more pronounced effects for larger losses.
Research published in Strategic Organization highlights micro-level underpinnings of macroeconomic events, arguing that traditional theories are inadequate. The authors propose a new approach based on heterogeneous resources and capabilities, which can help resolve the current crisis.
The study found that internet retailers can successfully compete with brick-and-mortar stores by focusing on niche products. The researchers recommend that online retailers vary their product offerings based on geographic locations and promotional strategies to target specific consumer groups.
Researchers found that managers tend to downplay the significance of their past forecasting mistakes when predicting future earnings. This underestimation can influence how investors respond to new forecast announcements, contributing to persistent price drift after an earnings announcement. Further study is needed to determine if this...
A new study from UAB researchers suggests that individuals with mild cognitive impairment (MCI) who struggle with financial management skills may be at risk for developing Alzheimer's disease. The study found that MCI patients who declined in financial capacity over a year were more likely to progress to Alzheimer's.
A new study by Management Insights suggests that Iraq veterans may be experiencing a PTSD rate of up to 35%, doubling the expected rate due to delayed onset and subsequent deployments. The Institute for Operations Research and the Management Sciences calls for increased mental health resources to care for returning troops.
A new study by Oregon State University professor JunJie Wu found that senior management's environmental values are a leading factor in firms' decisions to over-comply with environmental regulations. Facilities making products sold directly to consumers or offering services are less likely to violate regulations.
A study from North Carolina State University found that companies can identify winning products by critically evaluating new ideas early on, eliminating bad ideas and advancing good ones. The research provides a benchmarking template for developing customized review criteria to improve product development practices.
Andrew W. Lo's lecture at SIAM Annual Meeting explores the evidence for and against blaming quantitative analysis for the financial crisis. He suggests a broader perspective reveals bubbles, crashes, and market dislocation are unavoidable consequences of human behavior and free enterprise.
A study of online DVD rentals found that customers tend to hold highbrow films longer than lowbrow films, with a 1.3% increase in reversal probability if the first film is more attractive. As customers gain experience, they tend to favor want over should characteristics.
Research in Management Science reveals that recommender systems can create self-reinforcing cycles favoring popular items, reducing diversity and serving consumers and producers poorly. To mitigate this issue, designers must consider modifications to limit popularity effects and promote exploration in their recommender systems.