Business Building

Research Incubator Seminar Series

The Research Incubator Seminar Series aims to create a forum for scholars to present their work in progress.

Summer 2015

“The Role of R&D and Patent Signaling in Altering Firms’ Financing Constraints”

Presenter: Ann McFadyen, Ph.D., associate professor of management
Date: Wednesday, July 29
Time: 2-3:30 p.m.
Location: Business Building, Room 609
A firm’s R&D capabilities are critical in obtaining a competitive advantage and superior firm performance. Yet, R&D is expensive, potentially depleting cash holdings, and thus leading to financial constraints. Also, due to inherent knowledge asymmetries in the R&D process, obtaining external financing can be difficult. We examine how R&D contributes to financial constraints and how reducing knowledge asymmetries through patenting can diminish or enhance constraints depending on the firm’s patent input characteristics. We argue that valuable patents can provide difficult-to-transmit information. Furthermore, patent value will reduce the severity of financial constraints caused by the R&D process. We argue that developing patents based on emerging technologies will also impact the firm’s financial constraints. We examined our arguments with United States-based biopharmaceutical firms.
Followed by Coffee with the Dean in Business Building, Room 633.

 

Spring 2015

"Segmentation of Consumer Markets in the U.S.: What do Intercity Price Differences Tell Us?"

Presenter: C.Y. Choi, Ph.D., associate professor of economics
Date: Wednesday, May 13
Time: 2-3:30 p.m.
Location: Business Building, Room 609
We quantify the magnitude and persistence of market segmentation in the U.S. consumer market, and explore the underlying factors generating this segmentation, using a quarterly panel of retail prices for 45 products in 48 U.S. cities from 1985-2009. We identify potential drivers of market segmentation by relating the cross-city and cross-product variations of market segmentation to location-specific and product-specific characteristics—distance, relative city sizes, relative incomes, type of product and proximity to marketplace. Distance turns out to be the most important factor and it captures more than transport costs. The effect of distance, however, varies by product characteristic such that greater distance generates significantly higher levels of market segmentation for perishable products and products that are not locally produced.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“R&D Reporting Rule and Firm Efficiency”

Presenter: Ram Venkataraman, Ph.D., associate professor of accounting
Date: Wednesday, April 8
Time: 2-3:30 p.m.
Location: Business Building, Room 609
Critics have long opined that the full expensing rule depresses near-term profits and incentivizes myopic managers to under-invest in R&D to manage earnings, compromising firm productivity and competency. Proponents of the current rule argue that little rigorous evidence exists in support of the claim that the current accounting practice has adverse consequences. Indeed R&D intensive companies are fundamentally different from other firms, and any inquiry involving such companies is susceptible to the endogeneity concern due to self-selection. In this study, we examine the impact of the R&D expensing rule on longer-term firm performance.
Followed by Coffee with the Dean in Business Building, Room 633.

 

"Exploring the Nature of Person-Job Fit in Jobs with Multiple Distinct Roles"

Presenter:George Benson, Ph.D., associate professor of management
Date: Wednesday, March 18
Time: 2-3:30 p.m.
Location: Business Building, Room 609
This paper explores the nature of person-job fit in jobs that combine divergent roles. This study uses a sample of direct store delivery (DSD) salespeople who perform two distinct roles (delivery and sales) within the same job. We find that not only do DSD employees perceive these roles independently, but that different types of skills, experience, and professional needs determine the fit within each role. Finally, we demonstrate that fit with either the delivery or the selling aspects of their jobs impacts their job satisfaction and commitment to the organization depending on whether they work on a route that emphasizes sales or emphasizes delivery. Theoretical implications and recommendations to managers for staffing and recruiting for jobs with multiple distinct roles are discussed.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“Bitter Mouth, Sweet Future: The Interaction Effect of Bitter Flavor and Mood on Consumer Saving”

Presenter: Zhiyong Yang, Ph.D., associate professor of marketing
Date: Wednesday, February 18
Time: 2-3:30 p.m.
Location: Business Building, Room 609
Tasting a bitter drink can activate concepts of a bitter life and subsequently increase individuals’ desire to save money. This effect only occurs when people feel positive, but goes in the opposite direction when people feel negative. In two laboratory experiments and two field studies, the paper shows that this pattern is consistent across consumers' saving intention, actual saving behavior, and disposition to avoid making impulsive purchases at the supermarket.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“Susceptibility and Influence in Social Media Word-of-Mouth”

Presenter: Michael Ward, Ph.D., professor of economics
Date: Wednesday, January 28
Time: 2-3:30 p.m.
Location: Business Building, Room 609
Peer influence through word-of-mouth (WOM) plays an important role in many information systems but identification of causal effects is challenging. We identify causal WOM effects in the empirical setting of game adoption in a social network for gamers by exploiting differences in individuals’ networks. Friends of friends do not directly influence a focal user, so we use their characteristics to instrument for behavior of the focal user’s friends. We go beyond demonstrating a large and highly significant WOM effect and also assess moderating factors of the strength of the effect on the sender and receiver sides. We find that users with the most influence on others tend to be better gamers, have larger social networks, but spend less time playing. Interestingly, these are also the users who are least susceptible to WOM effects.
Followed by Coffee with the Dean in Business Building, Room 107.

 

Fall 2014

“The Market Response to Mutual Fund Holdings Disclosures”

Presenter: David Rakowski, Ph.D., associate professor of finance and real estate
Date: Wednesday, December 10, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 609
We analyze the market response to holdings disclosure filings made by open-end U.S. mutual funds. Our procedure is to match the precise timing of the holdings disclosure filings from the SEC’s EDGAR database with the CRSP mutual fund database. We examine if fund managers’ disclosures of securities held are associated with subsequent trading activity for those securities. Our results show that mutual funds’ disclosure filings are associated with significant responses in both volume and valuation for the underlying securities held by the fund. We find that both security-level and fund-level characteristics related to liquidity, information, and the potential skill of the fund manager are significantly associated with the observed abnormal volume and returns surrounding fund disclosures.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“The Informativeness of Pro Forma and Street Earnings: An Examination of Information Asymmetry around Earnings Announcements”

Presenter: Terry Skantz, Ph.D., associate professor of accounting
Date: Wednesday, November 19, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 241
In a dealer market, the adverse-selection component of the bid-ask spread increases when market makers detect information-based trades. Using adverse selection cost as a proxy for information asymmetry, we find evidence that non-GAAP earnings numbers issued by management (pro forma earnings) and analysts (street earnings) improve the price discovery process. Our results suggest that earnings adjustments by analysts and managers increase the amount and precision of earnings information and help narrow information asymmetry between informed and uninformed traders following earnings announcements.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“The Influence of Attribute Displacement Performance on Customer Evaluation of Service Experiences”

Presenter: Elten Briggs, Ph.D., associate professor of marketing
Date: Wednesday, November 5, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 241
This paper examines how the displacement performance (i.e., a positive or negative change in performance from the prior time period) of service quality attributes influences how customers evaluate their overall service experiences. Random effects GLS regression is applied to analyze this effect in a sample of more than 100,000 observations from the post transaction surveys of a Fortune 500 rental car company. Results confirm that displacement performance has a significant effect on customer experience evaluation, even after controlling for the influence of attribute positional performance and the customers’ prior overall service experience evaluation. Finally, the study tests whether the effect of customer experience on behavioral intentions (word of mouth and future purchase) is mediated by customer value.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“Is a Newsvendor More Bounded Rational Making Two Decisions Instead of One?”

Presenter: Kay-Yut Chen, Ph.D., professor of information systems and operations management
Date: Wednesday, October 22, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 241
Behavior research in operations management has become an increasingly active area in recent years. One branch of this literature focuses on non-optimizing decision-making behavior. Intuition suggests that a more complex problem (for example, ones that involve more than one decision variable) will lead to more “bounded rational” behaviors because cognitive limitations will be more important constraining factors. The goal of this paper is to explore the link between bounded rational behavior, and characteristics (complexity for example) of the underlying decision problem. We conduct an experimental study with the newsvendor making two unrelated (managing independent stores) and related (via transshipment) decisions simultaneously. We found non-trivial correlations between decisions across stores, and constructed a behavioral/learning model to explain the findings.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“The Multiple Ways of Behaving Creatively in the Workplace: ‘Novel about What’ and ‘Useful for Whom’”

Presenter: Feirong Yuan, Ph.D., assistant professor of management
Date: Wednesday, September 17, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 241
Employees may demonstrate their creativity in the workplace beyond producing something new and useful for the organization. Integrating the research on employee creativity with the institutional theory and the agency/stewardship theories, we address the issues of “novel about what” and “useful for whom” to theorize the multiple possible ways employees may behave creatively in the workplace. Subsequently, we develop a model about how employees choose among these behaviors, individual and organizational factors that influence their choices, and the consequences of these different creative behaviors. Our model provides a broader way to conceptualize employee creativity in the workplace. It offers implications both for theory development and for managing employee creative potential in the workplace.
Followed by Coffee with the Dean in Business Building, Room 633.

 

“Understanding the Distressed Sale Discounts across Submarkets and Market Conditions”

Presenter: Ramya Aroul, Ph.D. candidate, Department of Finance and Real Estate
Date: Wednesday, August 13, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 252
The question of market efficiency for distressed residential real estate persists in academic literature. About half of this literature reports relatively large distress sale discounts implying relative market inefficiency and arbitrage opportunities. The other half of this literature reports modest discounts within the range of typical real estate transaction costs. We argue that it is difficult to generalize about the market for distressed transactions and this market needs to be differentiated by submarkets and market conditions. Our findings reveal that distressed sale discounts do in fact vary substantially by submarket and market conditions. We conclude that a one-size-fits-all rule of thumb is not optimal in studying distressed real estate markets. To precisely address the question of market efficiency in distressed residential markets, we must specify submarket and market conditions.
The Research Incubator Seminar Series is part of our UTA DNA!
Followed by Coffee with the Dean in Business Building, Room 633.

 

Summer 2014

“Discounting of Discounts: The Effect of Black Friday Turning into Black Thursday”

Presenter: Narayanan Janakiraman, Ph.D., assistant professor of marketing
Date: Wednesday, July 2, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 609
Opening retail stores on Black Thursday rather than Black Friday makes consumers more susceptible to deeper discounts on Black Thursday and less sensitive to discounts on Traditional Black Friday. We refer to this phenomenon as “Discounting of Discounts.” We suggest that this is due to the salience of higher perceived opportunity cost of time on Black Thursday, rendering large discounts unattractive when comparing to Black Friday. However, when discounts are viewed after a long wait on Black Thursday, consumers demand compensation for the wait as well as the opportunity cost, leading to a reverse sunk cost effect. In contrast, on a Black Friday, reverse sunk cost effects do not surface in the absence of perceived opportunity costs. We also show that apart from lesser purchase, it also leads to lesser sharing of information and lower levels of happiness after purchase.
The Research Incubator Seminar Series is part of our UTA DNA!
Followed by Coffee with the Dean in Business Building, Room 633.

 

Spring 2014

“Outlier Bias in Finance Research”

Presenter: John Adams, Ph.D., assistant professor of finance
Date: Wednesday, April 16, 2014
Time: 2-3:30 p.m.
Location: Business Building, Room 609
Finance researchers use OLS for statistical inference in 47% of the studies published in the top four finance journals in 2012. Despite widespread knowledge that extreme values bias least squares estimators, 42% of these studies make no mention of outlier detection or correction. We show that outliers can exert outsized influence on OLS as well as MLE, GMM, Bayesian, and quantile regressions. An extensive majority of the remaining 58% uses either winsorized or trimmed least squares. However, our results demonstrate that winsorizing and trimming can exacerbate the outlier-induced bias problem. We also provide guidance for finance researchers on how to diagnose and mitigate the influence of outliers. The Research Incubator Seminar Series is part of our UTA DNA!
Followed by Coffee with the Dean in Business Building Room 633.

 

"Riding with the Cowboys: Do Entrainment and Entrainment Quotient Matter to Firm Performance?"

Presenters: Liliana Perez-Nordtvedt, Ph.D.; Jeff McGee, Ph.D.; and Susanna Khavul, Ph.D., associate professors of management
Date: Wednesday, March 19, 2014
Time: 2-3:30 p.m.
Location: College of Business, Room 609
Most research examining firm adaptation to major environmental changes focuses on responses that change what firms do (e.g., technology employed, structured used, market targeted). Few studies look at firms’ responses that involve time-related changes such as adaptive responses to regain temporal fit with a newly changed environment. Organizational entrainment is a construct that captures how firms synchronize their rhythms with those of the environment. Using data collected over three different periods of time on firms’ responses to the arrival of the Dallas Cowboys stadium, we examine the effect of organizational entrainment on the performance of incumbent firms in Arlington. We do this while taking into account non-temporal adaptive responses. Our results suggest that a firm’s temporal capability to entrain, or its entrainment quotient, enhances such efforts. Thus, synchronizing with the Cowboys is not enough. Firms also need to develop the capability to do so.
Followed by Coffee with the Dean in CoB Room 633.

 

"Does the Apple Fall Far From the Tree? A Meta-analysis of Extension Feedback Effects."

Presenter: Traci Freling, Ph.D., associate professor of marketing
Date: Wednesday, February 19, 2014
Time: 2-3:30 p.m.
Location: College of Business, Room 609
Extensions provide a useful and effective way for brands to build on existing consumer attitudes to mitigate the risk of new product launches, leading to an ever increasing number of extensions being released into the market every year. Most attention has focused on the effects that the parent brand has on the extension, however. The reciprocal effects of the extension on the parent brand evaluations of customers, also known as extension feedback effects, can result in both increases or decreases in parent brand evaluations following exposure to the extension. The authors conduct a quantitative meta-analysis of 246 effect sizes from 41 published and unpublished studies regarding both directions of reciprocal effects of an extension and identify fruitful avenues for future research.
Followed by Coffee with the Dean in CoB Room 633.

 

"Virtual Team Performance in Crowdsourcing Contests: A Social Network Perspective."

Presenter: Jennifer Zhang, Ph.D., associate professor of information systems
Date: Wednesday, January 22, 2014
Time: 2-3:30 p.m.
Location: College of Business, Room 609
Recent advances in information technology bring significant changes to the nature of work by allowing companies to tap “wisdom of the crowd” beyond their own workforce. In particular, organizations increasingly seek solutions to their business problems using online crowdsourcing contests that are open to the public. In these contests, self-organized virtual teams compete for monetary reward. Motivated by this new phenomenon, this research investigates how the social network structure of a virtual team impacts its performance in the context of online crowdsourcing contests, and the findings have strategic implications to the design of virtual work teams.
Followed by Coffee with the Dean in CoB Room 633.

 

Fall 2013

"Polarized Perceptions: When Joint (vs. Separate) Decisions about Others Leads to Over-diversification"

Presenter: Ritesh Saini, Ph.D., assistant professor of marketing
Date: Wednesday, December 11, 2013
Time: 2-3:30 p.m.
Location: College of Business, Room 609
How do simultaneous choices made for multiple-other people differ from choices made for a single-other person? In this paper we explore how people make decisions for, and anticipate preferences of, multiple-other people (vs. a single person). We demonstrate three systematic effects when decisions are simultaneously made for multiple people, and the observed enhancement in preference heterogeneity persists even when decisions remain anonymous, and impression management concerns are low, thereby ruling out any social-signaling motivations.
Followed by Coffee with the Dean in CoB Room 633.

 

"No Accident: Health, Wellbeing, and Performance at Work"

Date: Wednesday, November 13, 2013
Time: 2-3:30 p.m.
Location: College of Business, Room 245E
In examining “high-risk” employees, we propose a more comprehensive approach for prevention and reconciliation. We suggest that HR professionals can advance health, wellbeing, and performance at work by managing high-risk employees. We estimate that 1-3 percent of employees (10 to 30 among 1,000) are what we label “high-risk” employees who may be the source of significant harm and negative events at work. The behaviors of these high-risk employees are often not accidental, even if not always intentional. Establishing public health surveillance systems can serve as the basis for foreseeing and preventing much hurt, harm, and even death in organizations.
James Campbell Quick, Ph.D., is the John and Judy Goolsby – Jacqualyn A. Fouse Endowed Chair in the management department of the College of Business at UT Arlington. Ann McFadyen, Ph.D., is associate professor of management in the College of Business at UT Arlington. The teaching and research specialization for both faculty members includes organizational strategy and behavior, strategic management, and leadership.
Followed by Coffee with the Dean in CoB Room 633.

 

“Short Selling around the Expiration of IPO Share Lockups”

Date: Wednesday, October 2, 2013
Time: 2:00-3:30 p.m.
Location: CoB Room 609
In an examination of activity around the expiration of initial public offering (IPO) share lockups, we find that more abnormal short selling prior to the lockup expiration date is associated with worse stock returns on the lockup expiration date, suggesting that short sellers are informed.
(Grace) Qing Hao, Ph.D., is an associate professor of finance in the College of Business at UT Arlington. She is a Chartered Financial Analyst (CFA) charterholder whose research has been published in many significant journals, including Journal of Financial Economics, Journal of Corporate Finance, and others.