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1 – 10 of over 16000Ernest W. King and Drew B. Winters
The purpose of the paper is to determine if banks that solved the Y2K problem early created value for their shareholders.
Abstract
Purpose
The purpose of the paper is to determine if banks that solved the Y2K problem early created value for their shareholders.
Design/methodology/approach
The method of analysis is an event study.
Findings
The primary finding of the analysis is that solving the Y2K problem did not create value for bank shareholders. That is, announcements of solving the Y2K problem were not accompanied with positive stock price reactions.
Research limitations/implications
While the paper does not find support for a positive reaction to solving Y2K, it does find some evidence of concerns about banks that were having trouble solving Y2K. However, the sample size of banks with problems was small and therefore we caution readers about generalizing these results.
Practical implications
All banks needed to solve the Y2K problem, but those solving Y2K do not appear to create value for their shareholders. From this we conclude that it is better to buy the solution to a required project than to develop it internally.
Originality/value
This paper is of interest to anyone in a capital budgeting decision making process that includes required projects.
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Craig R. Brown and Drew B. Winters
The State of Delaware recently passed a new banking law that allows banks and bank affiliates chartered in Delaware to sell and underwrite insurance nationwide. The new laws…
Abstract
The State of Delaware recently passed a new banking law that allows banks and bank affiliates chartered in Delaware to sell and underwrite insurance nationwide. The new laws provide two potential benefits to banks; (1) increased profits from selling insurance and (2) reduced interest rate risk exposure from underwriting insurance. We find support for increased profit potential to banks from the law, but we fail to find a reduction in the interest rate risk exposure of the banks.
Chaitanya Singh and Mark D. Griffiths
The purpose of this paper is to provide a descriptive analysis of the role of computer usage in determining the credit score for small business owners.
Abstract
Purpose
The purpose of this paper is to provide a descriptive analysis of the role of computer usage in determining the credit score for small business owners.
Design/methodology/approach
Bitler, Robb, and Wolken report over three‐quarters of all small business use computerized systems. Since such systems are faster, more accurate, and less fallible than manual systems, we investigate whether increased use of computers leads to better credit ratings and leads to access to larger credit lines.
Findings
The results suggest that computer usage has virtually no effect in the determination of credit by financial service providers. Credit analysis and risk measures dominate the decision‐making process.
Research limitations/implications
The 3,561 surveyed firms are skewed toward very small firms with approximately 64 per cent having less than five employees and an 20 per cent having less than ten employees. Forty per cent of the firms have annual sales of less than $100,000 while only 1.8 per cent of the firms have sales in excess of $10 million.
Practical implications
Computerization is an operational necessity but credit worthiness is a function of the overall management characteristics of the firm and not the tools employed by the management team.
Originality/value
A minority of small businesses do not use computerization and these tend to be among the smallest in size and with the lowest levels of credit‐worthiness. Nonetheless, credit worthiness is determined by standard credit analysis and risk measures rather than operational efficiency.
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Stuart Michelson and Stanley D. Smith
New technologies have provided new tools we may use as finance professors to communicate with our students. Instant messaging (IM) has become a common communication tool in…
Abstract
Purpose
New technologies have provided new tools we may use as finance professors to communicate with our students. Instant messaging (IM) has become a common communication tool in industry and among students. The purpose of this paper is to investigate the use of IM as a communication tool in finance courses.
Design/methodology/approach
After reviewing the advantages and disadvantages of IM, the students were surveyed to determine how they viewed IM in comparison to other communication techniques.
Findings
The paper finds that 50 per cent or students use IM at any time (not just for class). The majority of the IM users, use it several times a day and have used it for two to three years. Only about 15.7 per cent of our students have used IM for our classes. The range of IM usage in the classes is 7‐25 per cent. Of those students who have used IM for our courses, they have used it 2‐5 times during the semester and almost all students found it useful. Students were asked to rate various methods of professor/student communication. The students strongly like face‐to‐face communication, followed by (in order of preference) email, IM, and telephone. Students disagree with the statement that IM is a substitute for face‐to‐face interaction and agree that IM is a supplement to face‐to‐face interaction.
Originality/value
The findings suggest ways to improve communications with students and other persons.
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Steven L. Jones and John C. Yeoman
The purpose of this paper is to analyze the OpenIPO process, vis‐à‐vis traditional bookbuilding, and evaluate the suitability of the OpenIPO for various types of companies, market…
Abstract
Purpose
The purpose of this paper is to analyze the OpenIPO process, vis‐à‐vis traditional bookbuilding, and evaluate the suitability of the OpenIPO for various types of companies, market conditions, and assets.
Design/methodology/approach
This paper develops the pros and cons of the OpenIPO process, vis‐à‐vis the traditional bookbuilding method, in light of the recent academic literature on securities auctions and the results of the OpenIPOs Hambrecht has conducted, as of mid‐2004.
Findings
The main advantage of the OpenIPO process is that it precludes many of the abuses recently observed in investment banking; however, it is not well suited for complex businesses that are either difficult to value or far removed from the public eye.
Research limitations/implications
Only nine OpenIPOs have been conducted by Hambrecht, or using the Hambrecht method, as of the completion of this paper in mid‐2004.
Practical implications
The paper foresees the OpenIPO process of Hambrecht as supplementing, rather than supplanting, the traditional bookbuilding method. This could come about through the emergence of the OpenIPO as a more viable alternative to bookbuilding, or possibly through some hybrid type of offering in which individual investors play a larger role in price discovery, via the internet, and shares are allocated through both the internet auction and traditional bookbuilding.
Originality/value
Managers considering an initial public offering have a choice between the OpenIPO process of Hambrecht, used in the Google offering, and the traditional bookbuilding process. The choice of the OpenIPO has become more viable not only because of the Google offering, but due to the severe criticism the traditional method has received in recent years for alleged abuses related to the pricing and allocation of shares. This paper assists managers in evaluating this choice IPO offer type while rigorously evaluating the pros and cons of the OpenIPO process and its likely future role in the investment banking industry.
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James T. Lindley, Sharon Topping and Lee T. Lindley
The purpose of this paper is to detail how the adoption of enterprise resource planning (ERP) systems creates major distortions in the corporate decision‐making process.
Abstract
Purpose
The purpose of this paper is to detail how the adoption of enterprise resource planning (ERP) systems creates major distortions in the corporate decision‐making process.
Design/methodology/approach
The approach is to focus on the distortion in the capital – budgeting process of corporations emanating from the rigidity of ERP software. The rigidity negatively influences decision‐making because ERP software often dictates that the firm must change its core business procedures and processes to fit the software.
Findings
Lack of flexibility limits the introduction of new products, or targeting a new customer segment by increasing costs and imposing delays in implementation.
Research limitations/implications
Firms would benefit from performing detailed analysis of the impact of ERP systems on their ability to make operational decisions.
Originality/value
This paper focuses on the problem of decreased flexibility in making changes in the production and accounting components of the firm when purchasing and installing ERP systems that cannot accommodate minor or major changes in the corporation.
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War is one of the worst characteristics of human nature. Wars over territory, religion, and governance were and are always present through history. War and tourism seem dissonant…
Abstract
War is one of the worst characteristics of human nature. Wars over territory, religion, and governance were and are always present through history. War and tourism seem dissonant at first glance. However, the post effects of war enable its components, such as battlefields and artefacts, to become tourist attractions. People share the impetus to visit war attractions such as battlefields, military museums, cemeteries, memorials, and other war-related sites. There is a supply for this type of tourism in exchange for the demand. This type of tourism is referred to in the literature as battlefield tourism. The meaning and definition of battlefield tourism are the main aim of this chapter. What is battlefield tourism? What are the components of battlefield tourism? How can battlefield tourism be defined? These are the primary questions this study tries to address.
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Cynthia Szymanski Sunal, Lynn A. Kelley and Dennis W. Sunal
Kindergarteners’ (n=41) concept of peace, a foundational social studies concept, was investigated via pre- and post-assessments that first, asked them to physically demonstrate…
Abstract
Kindergarteners’ (n=41) concept of peace, a foundational social studies concept, was investigated via pre- and post-assessments that first, asked them to physically demonstrate how they looked or felt when they were at peace, second, asked them to draw a scene showing peace, and third, to caption the drawing. In pre-assessments all but three children demonstrated aggression and drew aggressive stances accompanied by captions indicating aggression. After opportunities to read about, discuss, and explore the concept of peace over five weeks, post-assessment occurred. In the post-assessments none of the data indicated aggression. Categories coded showed peace described as enjoyable activities, pro-social behaviors, and quietness/calmness/privacy. The study suggests hypotheses for further research investigating the concept of peace among very young children and possible factors influencing their concept and implications for social studies curriculum.
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