A Study on Auditors’ Decisions to Investigate Clients’ Illegal Acts

Dr. C. Janie Chang, San Jose State University, San Jose, CA

ABSTRACT

This study examines the effects of the level of environmental violation and the size of the audit fee on participants’ decisions whether to further investigate a client’s potentially illegal acts. The results suggest that participants’ behavior is significantly influenced by both the level of violation and the size of the audit fee. Moreover, the extent of illegal acts appears to be the dominant factor on participants’ decisions. The implications of the study to the auditing profession and regulatory bodies, as well as directions for future studies, are also discussed.

The Impact of New Economic Information on Bond Price Forecasting

Dr. Seddik Meziani, Montclair State University, NJ

INTRODUCTION

For bond investors, knowing what will happen in the economy in the coming quarter or year is a critical determinant of portfolio selection and reallocation. Forecasting methods range from informal, almost back-of-the envelope, calculations to sophisticated macroeconomic models based on equations representing the economy. Although forecasters vary in their predictions, they all agree that it is essential to know something about the true structure of the economy, for it is from this structure that they derive the precise values of the parameters and coefficients necessary to their forecasts. Market predictions themselves have a profound impact on the behavior of the bond market.

Tensions Between Accountability and Accessibility: A Structural Problem in HMOs

Barbara W. McElroy, Berry College, Mount Berry, GA

J. David Osborne, Berry College, Mount Berry, GA

Dr. Gary S. Robson, Berry College, Mount Berry, GA

ABSTRACT

This paper analyzes an unintended consequence of an increased desire for accountability and efficiency in the operation of medical offices. Models developed by prominent theorists are used to predict 1) the growing separation of the core medical function from sick patients, which is designed to regularize and maximize patient Aproduction@ by doctors, 2) the mechanistic division of administrative labor to cope with dramatic increases in accounting-driven details, and 3) diffusion of personal responsibility for patient service in the front office. Each of these models provide reasons for a pattern of medical care which can produce an unhappy patient frustrated by what appears to be front office chaos. Frustration could, unfortunately, lead to less care for those who are unwilling or unable to overcome the potential social barriers associated with a visit to the doctor=s office. This is especially true for preventive care, which is elective in nature. Such a trend challenges the foundations of managed care and health maintenance organizations (HMOs) which rest, in large part, on the premise that early treatment of minor problems is both preferable from a medical perspective and also less expensive than treatment of severe illness. In considering the future of doctor-patient relationships, unintended social barriers to access need to be carefully managed to help maximize the effectiveness of the larger medical care system.

Determining College of Business Department Efficiencies over time utilizing DEA

Dr. Martin Feinberg, The University of Texas, Pan American, Edinburg, TX

ABSTRACT

This study determines efficiencies over time for each of four departments in the College of Administration and Business of an AACSB accredited university for each year of an eight-year period. A major contribution this study provides is that it is the first known study to utilize data envelopment analysis (DEA) in order to determine efficiencies of academic departments over time. Data envelopment analysis is utilized in order to compute the relative efficiency of the four academic departments. The four departments use multiple inputs to produce multiple outputs. The relative efficiency is calculated using a ratio definition of efficiency for each year. The weights used for each department in this study are chosen to maximize the weighted output and weighted input. In addition, regression analysis is utilized for the purposes of checking the relevancy of the output and input measures. The comparison involves four departments in the College of Administration and Business of the AACSB accredited University. These four departments are: Economics and Finance, Marketing and Management, the School of Accountancy and Business Analysis and Communication. The three selected input variables are: Operating Expense, Salaries, and the Percentage of Faculty Members holding a terminal degree. The salaries of teaching assistants are included as part of the Salaries. The two selected output variables are: Student Credit Hours and the Number of Refereed Journal Articles published by the respective faculty members in the four departments. Student credit hours (SCH's) during the summer semesters are excluded.

The Irish Subculture: The Re-Greening Shamrock Market

Dr. Z. S. Demirdjian, California State University Long Beach, CA

ABSTRACT

In the burgeoning age of multiculturism, the Irish Americans have not been studied as a subculture from the consumer behavior standpoint, even though the 1990 census reported 38.7 million Americans of Irish decent. Despite its enormous size, the Irish market has been a "virgin territory" for the business world, including marketing researchers and practitioners. Unlike the Protestant Irish, who are considered to have gone through the melting pot, there is ample evidence that the Irish Catholics identify themselves as Americans -but still earnestly Irish. Arguably, the erosive forces of assimilation have not yet erased the enduring emblem of the shamrock deeply stamped on the hearts of the Irish Americans. Equipping oneself with fundamental knowledge about the parameters and preferences of such a large subculture would enable a marketer to cater to its members’ needs and wants more efficiently, and to communicate with them rather effectively. Therefore, in this paper two major tasks are tackled: one is to shed some light on the characteristics of the Irish ethnic group as a subculture, and the other task is to delineate the preferences of the "re-greening" Shamrock market from a consumer behavior perspective.

Melding clicks and bricks: The Echelon case

Dr. Nabil Alghalith, Truman State University, Kirksville, MO

ABSTRACT

Our world is interdependent on the interaction of several computer networks that control devices and on the dream of interoperability of each entity. Echelon Corporation develops products to maintain interoperability by adding an "intelligence agent" that communicates with other products. Interoperability is the ability to integrate several products from different areas into a network system. Echelon was founded in 1989 with the development of their main technology and product, LonWorks. LonWorks products can be utilized across business and industry lines; in fact, around 4 million LonWorks products are used throughout the world today.

Are Bank Regulators ‘Insiders’ Or Outsider?

Dr. Candy Bianco, Roger William University, Gabelli School of Business, RI

ABSTRACT

Formal enforcement actions are the only publicly disclosed information by bank regulators regarding serious bank problems. This is the first study to examine market reaction to formal enforcement actions since the change in bank regulation in 1991. This research evaluated the equity market impact of 393 formal enforcement actions issued by the OTS, OCC, FDIC, and FRB during the period 1991 through 1996. The empirical results support the hypothesis that bank regulators provide information to the market through public disclosure of formal enforcement actions. The market response was strongest for the institutions regulated by the OTS and to a lesser degree for the institutions regulated by the FDIC. No significant market reaction was found for OCC and FRB regulated institutions. Generally, market reaction declined during the sample period and disappeared by 1994.

The Jury System – Is Justice Truly Blind?

Dr. Mark Puclik, University of Illinois at Springfield, IL

ABSTRACT

The role of the jury in American Jurisprudence is examined in this paper. Specifically, the issue of impartiality is examined in light of leading U.S. Supreme Court cases. These cases address the topics of pretrial publicity, racial makeup, and the concept of "peer" representation. The paper examines the effectiveness of the jury in light of these rulings. By now, most of us know that the United States Constitution guarantees us a right to a trial by jury. But do any of us know what this right really entitles us to? Would we be so insistent on this "right" if we knew that inherent in the right are severe, life-threatening flaws? Even the wording of the Sixth Amendment (the Seventh Amendment merely provides for a jury trial in cases in which the "controversy" exceeds $20) is questionable: "In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed…" (U.S.CONST. amend: VI.).

The Marketing Implications of European Unification With Monetary Union

Dr. James P. Beaghan, Central Washington University, Seattle, WA

ABSTRACT

As global business firms gear up for 2001 and beyond one factor that must be considered is the effect of the European Community having become a single market of 380 million relatively affluent consumers. After centuries of squabbling, and 44 years of trying, the European Economic Community finally became a single common market on January 1, 1993. The implications for global businesses from non-European countries is staggering--one border, one set of product standards, one banking system, one set of tariffs and customs regulations, and more. The prospect facing U.S. firms is a Europe where the exportation of products will be as uncomplicated as European imports are to the U.S. today. The possibilities for cost savings through economies of scale and reductions of red-tape are making companies all over the world salivate with anticipation when considering the European market. The basic premise of this paper therefore, is that the New Europe and the changes that it will bring about could mean unparalleled marketing opportunities for U.S. firms if they understand these changes and are prepared to move quickly, not only to offset the change process that is currently underway in Europe, but also to be in position to take full advantage of the tremendous opportunities that the New Europe will present in the future. This paper will focus primarily on new marketing opportunities and strategies for 2001 and beyond within the larger context of the unification process in the EC. Therefore, before we begin analyzing new marketing strategies within the European context, we will first lay some groundwork by discussing the history of the European Economic Community and the general nature of the unification process as it continues to unfold.

A Stochastic Optimal Control Approach To Resource Allocation In Customer Relationship Management

Kalyan Raman, Ph.D., The University of Michigan, Flint, MI

Madhukar G. Angur, Ph.D., The University of Michigan, Flint, MI

ABSTRACT

Customer Relationship Management (CRM) is a combination of information technology and analytic support systems to integrate sales, marketing, customer service and customer contact in order to improve customer relationships. The nature of CRM makes analytical support absolutely essential because increasingly powerful information technology has furnished an enormous volume and specificity of data. But without specialized analytical tools, all this data is like an encyclopedia with no spaces between words, no spaces between sentences, no capitalization, and no punctuation — in short, it is an enormous amount of unusable information. Analytical models bring order, structure and a logical organization to data, thereby improving the effectiveness and optimality of decision-making.

Some Perspectives and Principles of Knowledge Management: A Case Study

Dr. Yonca Gurol, Yildiz Technical University, Istanbul, Turkey

Muhtesem Baran, Istanbul University, Avcilar, Istanbul, Turkey

ABSTRACT

Knowledge has become the currency of competitiveness and success with the increasingly complex problems that global organizations face today. Knowledge as an asset is beginning to supplant the traditional factors of production - land, labor, and capital- and has become the most important new corporate and competitive resource. Companies need to manage their knowledge in part because knowledge has become their most important product, and in part because effectively leveraging their knowledge assets is key to understanding their customers’ need and meeting those needs in innovative ways.

Effects of Values and Culture on International Consumer Satisfaction

Dr. Turan Senguder, Nova Southeastern University, Ft. Lauderdale, FL

ABSTRACT

Empirical evidence drawn from Hofstede's international study (1980, 1983) shows that values differ significantly among nations. This research explores important differences in the types of values held by individuals in Turkey and the United States and how these values influence consumer satisfaction. This research mainly examines whether the consumers living in Turkey place more importance on status, social image, personal abilities, family and interpersonal relationships, than the consumers living in the United Sates. Hofstede's (1980) definition of national culture as the "collective mental programming that conditions peoples' values and perceptions" was adopted in this research.

Future Workforce Trends In Career Development

Dr. Jean Gordon, Barry University, Miami Shores, FL

ABSTRACT

Traditional theories of career development are inadequate due to the complexity of today’s work world. With dramatic changes occurring nationally and globally, career and employment counselors must look at the career development process very differently. (J.J. Lipstick, 2000). The U.S. population is becoming larger and more diverse. Over the next fifty years, the population of the United States is expected to grow by nearly 50 percent, that growth will be influenced by immigration; certain populations will experience large increases for example Hispanics and Asians and there will also be an increase of people with disabilities.

Analyzing Perceptions of Compliance by Mexican Accountants to Mexican GAAP

Dr. Martin Feinberg, University of Texas-Pan American, Edinburg, TX

ABSTRACT

This study will determine the perception of both U.S. accountants and Mexican accountants in regards to Mexican accountants compliance to Mexico’s Generally Accepted Accounting Principles (Mexican GAAP). Accountants in border cities on both sides of the U.S.-Mexico border were surveyed. This is the first study to empirically investigate this important issue. A key objective of this study is to answer many different questions concerning the perception of Mexican accountants compliance to Mexico’s Generally Accepted Accounting Principles. These questions include: How efficient has been the implementation of Mexico’s GAAP principles? How sufficient is the technology in Mexico for the implementation of the Mexican GAAP? Are Mexican universities effectively teaching the Mexican GAAP? Are Mexican accountants effectively utilizing the Internet in order to implement the Mexican GAAP? Do Mexican accountants have satisfactory accounting information systems?

Electronic Communication: The Challenge to Innovate

Dr. Charles E. Beck, University of Colorado at Colorado Springs, CO

Dr. Gary R. Schornack, University of Colorado at Denver, CO

ABSTRACT

Educators and trainers from all disciplines must take responsibility for learning how to help students develop their communication skills, rather than assume that communication departments will meet the need. The E-Communication Process Model provides a framework that identifies the main elements of the communication process, then identifies specific user needs and corporate needs that relate to each stage of the process. The process consists of five stages: background, self diagnosis; expectations, determining what you want to do; method, determining how to use the medium; implementation, getting the message out; and feedback, knowing the impact. Since the e-communication future is already here, educators and trainers can reinforce and expand communication abilities so users are ready for the changing market.

Transitioning from Educational MRP to Web-based SCM

Dr. Philip S. Chong, California State University, Long Beach, CA

ABSTRACT

This paper describes the design, development, and implementation of an Internet version of MRP-DSS, a educational Manufacturing Resource Planning Decision Support System (http://mrpdss.wide-link.com/). It will describe the unfolding experience of MRP-DSS starting from an MSDOS BASIC version in 1984 to a DBASE Clipper version in 1992, and now to an Internet version in 2001. It will focus its description on enhancements in capability and benefit to the student user as a result of rapidly evolving new system technologies and platforms. Using the experiences of MRP-DSS users in both business and educational institutions, this paper will discuss trends in Production and Operations Management Software, evolving advantage, versatility and future potential of Internet, and as MRP evolves into ERP and Supply Chain Management applications. It will describe the role of an MRP system for educational use, the modeling and simulation of a company’s operations, students’ learning via the procedural and investigative processes, and the broadening of opportunities in supply chain integration. Sample screen displays of MRP-DSS/NET will be used to demonstrate its design features, user interfaces and functional capabilities.

Using Rico Against Fraudulent Debt Collectors

Dr. Brad Johnson, Governors State University, University Park, IL

ABSTRACT

The purpose of this article is to identify the application of the provisions of the Racketeer Influenced and Corrupt Organizations Act (hereinafter referred to as RICO) as an alternative remedial strategy against domestic and international debt collectors/creditors who engage in fraudulent debt collection practices. The objective of this article is to stimulate the adversarial propensity of victims and targets of fraudulent debt collection practices for the purpose of becoming more creative advocates. This article attains its purpose and objective by (1) analyzing the provisions of a RICO cause of action and (2) applying such provisions to a factual setting, thereby exemplifying RICO’s remedial nature within a case study approach. More specifically, the provisional requirements of a RICO violation under 18 U.S.C. Section 1962(a) are analyzed, wherein it is unlawful --- for any person --- who has received any income derived, directly or indirectly --- from a pattern of racketeering activity or through collection of unlawful debt --- to use or invest --- any part of such income, or the proceeds of such income --- in the acquisition of any interest in, or the establishment or operation of, any enterprise, which is engaged in, or the activities of which affect, interstate or foreign commerce.

NAFTA and Its Influence on Businesses in the Greater Rochester, N.Y. Area

Dr. Jeffrey C. Strieter, SUNY College at Brockport, Brockport, NY

Dr. Jerald L. Weaver, SUNY College at Brockport, Brockport, NY

ABSTRACT

The 1994 North American Free Trade Agreement (NAFTA), a trade agreement between Mexico, Canada and the United States, was designed to minimize trade restrictions and thereby increase business between the three countries. Since its implementation, NAFTA has affected foreign trade and employment in the United States. Depending on the location, the effects vary from minimal to dramatic. This study examines the influence of NAFTA on businesses in the greater Rochester, New York area. Rochester has the highest per capita dollar volume of exports in the United States, making this an interesting area in which to examine the effects of NAFTA. This study examines the post-NAFTA changes in export/import relationships, pricing of products and services, employment, costs of conducting business and future implications between businesses in the greater Rochester areas and Mexico and Canada.

Constitutional and Empirical Issues in State Takeover Law Litigation

Dr. Donald G. Margotta, Northeastern University, Boston, MA

ABSTRACT

State takeover laws have been very controversial in practice and in the academic literature. Most research on these laws in the finance literature consists of event studies which focus on the short-term effects of a law's passage on stock prices and while that literature shows mixed results, it suggests that on average stock prices tend to react negatively to the passage of these laws. This paper discusses a different facet of the state takeover law controversy, that dealing with the constitutionality of the laws and the role that finance theory and empirical research has played in litigation over the constitutionality of the laws. Empirical research in this area has been conducted and used in efforts to affect federal and state public policy with regard to takeover laws and a key point of this paper is to show key factors which affect court decisions regarding constitutionality. Understanding these factors may help researchers construct research designs which are more likely to affect public policy in this area.

Determinants Of The Rate Of Return On Commercial Bank Assets In The United States, 1959-1998

Dr. Richard J. Cebula, Armstong Atlantic State University, Savannah, GA

ABSTRACT

This exploratory note empirically investigates determinants of the annual percentage rate of return on commercial bank assets (ROA) over the period 1959-1998. The findings indicate that the ROA has been an increasing function of the average annual interest rate yield on three-year U.S. Treasury notes and the Federal Deposit Insurance Corporation Improvement Act of 1991 and a decreasing function of inflation, the unemployment rate, and the increased competition that began in the 1980s.

An analysis of E-Venture Capital and Evolution of Internet to a Market Place for Raising IPO and Private Placement Capital

Dr. Ted Azarmi, California State University, Long Beach, CA

ABSTRACT

This paper investigates and articulates pedagogical issues related to the role of Internet as a market place for raising capital for new ventures. It focuses on describing a framework for effectively sharing ideas and knowledge that determine which companies may raise capital on the Internet. It introduces a number of costs, benefits, and testable hypothesize regarding the difference between the financial efficiency and the cost of capital for financing firms on the Internet and traditionally financed firms (without raising capital on the Internet). It also focuses on issues related to volatility of Internet financed securities.

Does The Federal Deficit Really Matter?

Dr. Richard Murphy, Ft. Lauderdale, FL

ABSTRACT

"Does the Federal Deficit Really Matter is a qualitative approach to Government spending in the United States. This work is a combination of historical fact coupled with a common sense approach to fiscal policy. Managing debt has continually been an on going challenge for businesses across the globe. Many finance and accounting people have successfully managed this process for decades. The question arises "why can’t the federal government properly apply, tried and true business principles?" This paper shows current and recent past policy on debt management and poses several scenarios that may spell economic folly unless addressed. It boggles ones mind to hear that we have the best and the brightest making these fiscal policy decisions that affect all of the citizens economically. While this paper is qualitative in nature and content, it is timely because of the country’s current economic downturn.