Factors influencing organizations to improve data quality in their information systems

Although managers consider accurate, timely and relevant information as critical to the quality of their decisions, evidence of large variations in data quality abounds. This research examines factors influencing the level of data quality within a target organization. The results indicate that management's commitment to data quality and the presence of data quality champions strongly influence data quality in the target organization. The results also show that the managers of the participating organization are committed to achieving and maintaining high data quality. However, changing work processes and establishing a data quality awareness culture are required to motivate further improvements to data quality.     

How Do Land Auction Formats Influence the Market Structure and Aggregate Surplus of Real Estate Development?

This article proposes a duopoly dynamic game theoretic model to investigate the market structure and aggregate surplus of real estate development when land is sold in a sealed‐bid first price auction vis‐à‐vis an open English auction. It relaxes the assumption of symmetric bidders. The land values have common value and private value components. We find that the sealed‐bid first price auction introduces competition in the real estate development market. The open English auction leads a monopoly market. State agencies are recommended to increase the aggregate surplus of real estate development by publishing past bidding information under the sealed‐bid first price auction and reducing information asymmetry between bidders.     

Do trade agreements increase Vietnam's exports to RCEP markets?

The paper reviews recent developments in trade relations between Vietnam and members of the Regional Comprehensive Economic Partnership (RCEP) agreement, and analyses the impacts on Vietnam's exports of tariff reductions in RCEP trading partners. The margin of tariff preferences is adopted as a proxy for the degree of trade liberalisation and a gravity model is used to assess the impacts of the tariff preferences under the AFTA and ASEAN+1 FTAs on Vietnam's major exports. The results show that the effects of tariff preferences differ between the types of preferences and products. The FTA tariff preferences do not exert a stimulating effect on the export of agricultural products but they have positive effects on several manufacturing exports such as garments and footwear.     

CEO Overconfidence and Earnings Management During Shifting Regulatory Regimes

This study examines the relationship of CEO overconfidence with accrual‐based earnings management, real activities‐based earnings management, and targeting to meet or just beat analyst forecasts. Following, we measure “overconfidence” based on the CEO's tendency to hold in‐the‐money stock options, as rational expected utility maximizers should exercise early to avoid overexposure to company idiosyncratic risks. The results show that before the Sarbanes Oxley Act of 2002 (SOX), companies of overconfident CEOs were more likely than other CEOs to engage in managing earnings through accelerating the timing of cash flow from operations and achieving analyst forecast benchmarks. After SOX, we find that overconfident CEOs are more likely to have income‐increasing discretionary accruals. They remain more likely to engage in real activities management through abnormally high cash flows, and also have abnormally low discretionary expenses. These results are consistent with overconfident CEOs feeling less constrained by SOX, and suggest that this individual characteristic works against regulators’ attempts to constrain earnings management by corporate executives. In contrast, we find that the tendency of overconfident CEOs to manage to targets decreases after SOX, perhaps due to changes in investor behavior in the new regulatory environment.     

A statistical review of the risk associated with offshore support vessel/platform encounters in UK waters

Safety performance on the UK Continental Shelf is normally considered to be of a high standard, although there are still many incidents and accidents. This paper discusses some of the initial findings in an offshore support vessel safety research project. Following a brief review study of the uses of various types of existing offshore support vessels, a comprehensive statistical failure data analysis of the vessels is carried out mainly based on a Ship/Platform Incident Database drawn from the Health and Safety Executive (HSE). The variation of incident frequency with time for different types of offshore oil and gas installations, and for different vessel types has been established. A total of 394 records within the period 1980 to 1997 are investigated in this study. The variation of incident frequency with time and seasons, causation factors, incident with respect to geographical distribution, and sea conditions are discussed. The relationship between vessel types, sizes and operations is analysed; operating circumstances, reported primary failure cause, and impart orientation for different vessel types are also described. The statistical analysis reveals that safety culture in terms of good seamanship by vessel masters is probably responsible for mitigating the magnitude of many of the impacts that do occur and also that there is a need for improvement in safety performance. Issues pertaining to human element, the availability and reliability of data, risk criteria, and safety culture in the context of marine and offshore risk assessment are also discussed.     

Transitional Progress and Business Challenges

Eight Central European and Baltic countries have joined the European Union in May 2004. Transitioning economies need to develop a business environment with a healthy financial sector to realize economic growth. This paper uses two classification methods, the discriminant analysis and taxonomic measure, to investigate the possibility of the South Eastern European and Commonwealth of Independent transitional countries to develop an enterprise and business environment that is compatible with the newest European Union (EU8) members. This paper found that the EU8 countries are correctly classified as having transitioned successfully in their business development. Bulgaria and Croatia have transitioned closely to the EU8. However, Romania, Ukraine, and the Commonwealth of Independent countries are not close to the EU8 in achieving a compatible business environment.      

A Global Analysis of Corporate Social Performance: The Effects of Cultural and Geographic Environments

As more and more multi-national companies expand their operations globally, their responsibilities extend beyond not only the economic motive of profitability but also other social and environmental factors. The objective of this article is to examine the impact of national culture and geographic environment on firms’ corporate social performance (CSP). Empirical tests are based on a global CSP database of companies from 49 countries. Results show that the Hofstede’s cultural dimensions are significantly associated with CSP. In addition, European companies are found to out-perform other regions and countries in CSP.     

Metaheuristics for drilling operation scheduling in Taiwan PCB industries

Among all types of production environment, identical parallel machines are frequently used to increase the manufacturing capacity of the drilling operation in Taiwan printed circuit board (PCB) industries. Additionally, multiple but conflicting objectives are usually considered when a manager plans the production scheduling. Compared to the single objective problem, the multiple-objective version no longer looks for an individual optimal solution, but a Pareto front consisting of a set of non-dominated solutions will be needed and established. The manager then can select one of the alternatives from the set. This research aims at employing a variable neighborhood search (VNS) algorithm and a multiple ant colony optimization (MACO) algorithm to solve the identical parallel-machine scheduling problem with two conflicting objectives: makespan and total tardiness. In VNS, two neighborhoods are defined—insert a job to a different position or swap two jobs in the sequence. To save the computational expense, one of the neighborhoods is randomly selected for the target solution which is also arbitrarily chosen from the current Pareto front. In MACO, a two-phase construction procedure where three colonies are employed in each phase is proposed. These two algorithms are tested on a set of real data collected from a leading PCB factory in Taiwan and their performances are compared. The computational results show that VNS outperforms all competing algorithms—SPGA, MOGA, NSGA-II, SPEA-II, and MACO in terms of solution quality and computational time.     

Moral Hazard, Effort Sensitivity and Compensation in Asset-Backed Securitization

One interesting explanation for asset securitization is the managerial agency theory—where securitization of cash flows that are relatively insensitive to managerial effort reduces the noise for cash flows that are sensitive to managerial effort (Iacobucci and Winter, 2005). This paper extends this concept in several ways. First, we differentiate the effects of noise and effort sensitivity on managerial effort and compensation, underscoring the importance of a less noisy environment. We also carefully delineate the conditions under which asset securitization would improve the welfare of managers and shareholders of the originating company. Second, we relax the assumptions regarding the expected income-producing function and the income variance, and further take into consideration the change of the marginal production of income with respect to effort before and after securitization. Third, under a multitask principal-agent model framework, we explore how the relationship between managerial activities on different assets affects the incentive compensation for the manager of the originating company and the joint surplus for shareholder and manager. This is particularly relevant when entire buildings are securitized as opposed to pools of income-generating assets. Finally, we examine the role of the third-party servicer.     

Expected Time Value Decay of Options: Implications for Put‐Rolling Strategies

Assuming the underlying asset price remains constant, previous studies show that the time value of an option decays gradually at a rate that accelerates over time and peaks at the expiration date. Thus, a significant portion of time value is lost in the four weeks leading up to expiration. This paper shows the time value of currently at‐ or near‐the‐money options should be expected to decay at a rate that decreases over time. The time values of options that are currently deep‐in‐ or deep‐out‐of‐the‐money are expected to initially rise and then resume the normal decay pattern.