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This study examines whether there is a tax incentive for firms to engage in stock buybacks. Using methods previously established by Manzon (1994) and Scholes and Wolfson…
This study examines whether there is a tax incentive for firms to engage in stock buybacks. Using methods previously established by Manzon (1994) and Scholes and Wolfson (1989), the results show that firms with high marginal tax rates are more likely to announce stock buybacks than firms with low marginal tax rates. Additionally, firms that announce stock buybacks have lower debt-equity ratios than firms that do not announce buybacks. Tax considerations do not appear to be a factor in the acquisition technique used, open market or tender offer. However, the tax motive and limited investment alternatives appear to be the major explanatory variables in the stock buyback decision.
This study examines whether investors take into consideration the balance sheet numbers when determining the market value of companies. Specifically, an investigation is…
This study examines whether investors take into consideration the balance sheet numbers when determining the market value of companies. Specifically, an investigation is made of the association between the book value of equity and the value placed on the firm by the stock market. An equity valuation model first mentioned by Landsman (1986), based on the balance sheet identity, is used to permit assets and liabilities to have separate empirical coefficient values. In scope, the study covers Malaysian main board companies from years 1990 to 1997. Evidence is provided which is consistent with the notion that the market incorporates information on accounting numbers in the valuation of a firm. As a general conclusion, the results indicate that investors do use information in the balance sheet.
Tax professionals in public accounting firms must meet professional standards in working with their clients, but may also face pressure from both their clients and firms…
Tax professionals in public accounting firms must meet professional standards in working with their clients, but may also face pressure from both their clients and firms when making ethical decisions. The purpose of this study is to examine the influence of client factors on tax professionals’ ethical decision-making. Furthermore, we also investigate how client service climate and different ethical climate types affect these ethical decisions. Based on an experimental design with 149 practicing tax professionals, results indicate that tax professionals are not swayed by client importance or social interaction with the client when making ethical decisions. However, tax professionals are more likely to engage in ethical behavior when their own accounting firm monitors and tracks the quality of client service, whereas unethical behavior is more common when public accounting firms emphasize using personal ethical beliefs in decision-making. The results of the study suggest the importance of strong policies and procedures to promote ethical decision-making in firms.
In this keynote address, I use Georg Simmel’s sociology of social forms approach to amend Erving Goffman’s interaction order perspective into a contemporary analytical…
In this keynote address, I use Georg Simmel’s sociology of social forms approach to amend Erving Goffman’s interaction order perspective into a contemporary analytical framework for empirical analysis of everyday life in our twenty-first century mediated social order. For Goffman, the interaction order provides a foundational basis for social order. As a cornerstone of the human condition, Goffman maintained that most of us spend our daily lives in the direct presence of others. However, rapid advancements in interactive media formats in the last few decades have given rise to an unprecedented twenty-first century interaction order. Many of us now also spend our everyday lives in the mediated presence of others, the effects of which parallel those of face-to-face interaction in importance. These changes, I contend, provide a necessary occasion to reimagine Goffman’s interaction order. In what follows, I first provide a brief synopsis of Goffman’s interaction order. Next, I outline the twenty-first century interaction order and illustrate the importance of Simmel’s formal sociology in amending Goffman’s original framework in relation to this unforeseen order. Finally, to highlight a few key points – I incorporate empirical examples from my work as it relates to police legitimacy. I conclude with some suggestions for future research and note a few limitations.
This case has three primary objectives. First, it allows students to think through a conceptual cost and benefit analysis associated with the decision-making process in…
This case has three primary objectives. First, it allows students to think through a conceptual cost and benefit analysis associated with the decision-making process in line with basic economic thinking. Students will revisit core concepts of marginal benefit vs marginal cost, the notion of opportunity costs and the role of sunk costs in this type of analysis, while also highlighting the nature of market structure, oligopolies and competition across firms in an industry. The second goal of this case is to consider the role of business ethics in the DC-10 case: specifically, to consider the potential influence of moral awareness and moral disengagement in unethical decisions made by McDonnell Douglas. Students will develop an understanding of these concepts and solidify their learning by applying them to the case and engaging in active discussion. Finally, the third goal of the case allows students to explore organizational culture and specifically offer recommendations for organizations thinking about the link between decision-making, the role of ethics and culture.
The technical reports released by the National Transportation Safety Board along with secondary data such as available public data such as news reports were used to round out the synopsis of the case study.
Case overview /synopsis
This case explores the accidents of two McDonnell Douglas DC-10s in the early 1970s at the onset of the jumbo jet race between Boeing, Lockheed and McDonnell Douglas. It explores the series of events during the “Windsor Incident” in 1972 and the subsequent accident over Paris in 1974. It explores the reasons why the cargo door on the DC-10 was faulty and subsequently why the door was not fixed. It examines the interplay of industry suppliers such as McDonnell Douglas and how they interact with oversight authorities such as the Federal Aviation Authority. The Teaching Note focuses on the economic thinking at McDonnell Douglas, behavioral ethics and organizational culture.
Complexity academic level
This case is best explored over a 90 min session but could be expanded to take up one 3 h session. The authors have used this case format in an undergraduate organizational behavior class, an MBA Leadership and Organizational Change class, and an MBA Economics of Managers class. It works particularly well in the MBA setting, as students with work experience can see the links between the mistakes made by McDonnell Douglas and their workplaces.
The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally…
The concept and practice of e-services has become essential in business transactions. Yet there are still many organizations that have not developed e-services optimally. This is especially relevant in the context of Indonesian Airline companies. Therefore, many airline customers in Indonesia are still in doubt about it, or even do not use it. To fill this gap, this study attempts to develop a model for e-services adoption and empirically examines the factors influencing the airlines customers in Indonesia in using e-services offered by the Indonesian airline companies. Taking six Indonesian airline companies as a case example, the study investigated the antecedents of e-services usage of Indonesian airlines. This study further examined the impacts of motivation on customers in using e-services in the Indonesian context. Another important aim of this study was to investigate how ages, experiences and geographical areas moderate effects of e-services usage.
The study adopts a positivist research paradigm with a two-phase sequential mixed method design involving qualitative and quantitative approaches. An initial research model was first developed based on an extensive literature review, by combining acceptance and use of information technology theories, expectancy theory and the inter-organizational system motivation models. A qualitative field study via semi-structured interviews was then conducted to explore the present state among 15 respondents. The results of the interviews were analysed using content analysis yielding the final model of e-services usage. Eighteen antecedent factors hypotheses and three moderating factors hypotheses and 52-item questionnaire were developed. A focus group discussion of five respondents and a pilot study of 59 respondents resulted in final version of the questionnaire.
In the second phase, the main survey was conducted nationally to collect the research data among Indonesian airline customers who had already used Indonesian airline e-services. A total of 819 valid questionnaires were obtained. The data was then analysed using a partial least square (PLS) based structural equation modelling (SEM) technique to produce the contributions of links in the e-services model (22% of all the variances in e-services usage, 37.8% in intention to use, 46.6% in motivation, 39.2% in outcome expectancy, and 37.7% in effort expectancy). Meanwhile, path coefficients and t-values demonstrated various different influences of antecedent factors towards e-services usage. Additionally, a multi-group analysis based on PLS is employed with mixed results. In the final findings, 14 hypotheses were supported and 7 hypotheses were not supported.
The major findings of this study have confirmed that motivation has the strongest contribution in e-services usage. In addition, motivation affects e-services usage both directly and indirectly through intention-to-use. This study provides contributions to the existing knowledge of e-services models, and practical applications of IT usage. Most importantly, an understanding of antecedents of e-services adoption will provide guidelines for stakeholders in developing better e-services and strategies in order to promote and encourage more customers to use e-services. Finally, the accomplishment of this study can be expanded through possible adaptations in other industries and other geographical contexts.
Much of the research associated with organizational politics has focused on negative outcomes such as stress, burnout, and turnover intention. Only a limited amount of…
Much of the research associated with organizational politics has focused on negative outcomes such as stress, burnout, and turnover intention. Only a limited amount of research has focused on identifying the psychological mechanisms that explain the influence of negative organizational politics on individual and organizational outcomes. In this chapter, we propose a more positive conceptualization of organizational politics and explore potential associations between both positive and negative politics and employee engagement. More specifically, we propose a model showing how the psychological conditions of psychological safety, availability, and meaningfulness explain the relationship between perceptions of positive and negative politics and employee engagement. We conclude by suggesting practical interventions to assist organizations develop a more positive organizational political climate.
The distinction between discussing human capital (HC) and its actual measurement is the presence of indices and equations to substantiate the belief of measuring…
The distinction between discussing human capital (HC) and its actual measurement is the presence of indices and equations to substantiate the belief of measuring intangibles. The chapter makes a concise mention of research precedents, deriving leads for the foundation of HC. The chapter aims to provide clarity on the concept of HC measurement and bring to light the tools that can confer tangibility to intangibles. It argues that the measurement of HC is an achievable idea; furthering that a systematic review into the inter-disciplinary studies can offer viable solutions to the challenge of measuring intangibles. The chapter while discussing the contention makes a vivid mention of Bhutan’s gross national happiness (GNH), Happiness Seismograph, Cobb–Douglas model and others to make an impression on the minds of the reader.