Articles tagged with Financial Management
A new study by Rice University researchers found that strong external governance mechanisms can actually increase the likelihood of financial fraud among top managers. Higher levels of dedicated institutional ownership and increased analyst pressure were linked to higher rates of fraud. The findings challenge traditional agency theory,...
A new Finnish study shows that hybrid competitive strategies lead to better financial outcomes for high-technology companies internationalizing. The research found that the effectiveness of a hybrid strategy depends on the globalization stage and key resources of the company.
Research from the University of Texas at Dallas suggests that companies structure compensation contracts based on a manager's personality traits, not just firm characteristics. Overconfident CEOs receive more incentive-heavy compensation, which can drive shareholder value.
A new study found that corporate social responsibility (CSR) positively impacts firm performance, with financial benefits expected from CSR investments. However, the study also reveals an increasing correlation between CSR and 'corporate social irresponsibility,' suggesting some firms use CSR to offset past wrongdoing.
Research finds that personal pension funds beat their benchmarks on average due to the selection of easy-to-outperform benchmarks rather than investment skill. Focusing on a broader asset class can lead to better returns. The study also highlights the importance of considering diversification in pension saving allocation.
A new study finds that Indian technology firms, both registered and unregistered, engage in corruption when competing with smaller rivals. However, when facing foreign multinational corporations, they prioritize employee training over corrupt practices.
A QUT survey found young people struggle with managing car loans, credit cards, and mobile phone deals. Experts urge educators to include financial literacy workshops in schools before students leave.
University of Toronto Rotman School professor András Tilcsik won the Financial Times/McKinsey Award for Young Business Writers for his book proposal on managing catastrophic failure risk. The proposal, 'Rethinking the Unthinkable,' aims to help managers rethink existing organizational practices and build more robust systems.
A study in the Journal of Marketing found that higher financial leverage leads to decreased customer satisfaction due to reduced advertising spending. The impact of leverage is economically significant, resulting in a 0.47-point decrease in customer satisfaction equivalent to an estimated $26 million loss in net operating cash flows.
A study published in the Journal of Public Economics found that Prize Linked Savings (PLS) products, which combine savings with the possibility of winning large cash prizes, are more effective at inducing savings than standard interest-bearing accounts. This is particularly true for lower-income and less-educated individuals who are al...
A new study suggests that well-specified contracts are effective in reducing violations on the part of the buyer only if they are from highly globalized countries or have low-risk business environments. Contract monitoring can help mitigate negative influences of contract violation on relationship performance.
A new study in the Journal of Marketing found that companies may inadvertently devalue customer relationships with small monetary gifts. The authors suggest firms consider directing such gifts to charity to avoid the 'trivialization effect',
A new study reveals that gay and lesbian job seekers are 5% less likely to receive job interview invitations in the UK compared to heterosexual applicants. The study found significant disparities in job offers across various sectors, with gay men facing the most challenges in traditionally male-dominated occupations.
Research finds that US Treasury securities show a significant swing in returns between October and April due to seasonal depression. The average monthly return difference is 80 basis points, indicating a substantial impact of SAD on investment decisions.
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.