SHA Conference Proceedings, Presentations, and Speeches
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Item Exploring the Effect of Culture on How Pay-For-Performance Affects Turnover: A Multi-Level Longitudinal Study on 24 CountriesShao, Lian; Sturman, Michael C. (2006-01-01)While research has shown that pay-for-performance plans affect the curvilinear relationship between performance and turnover, all of this research has been conducted on samples of employees from the United States. In this paper, we explore the potential moderating effects of culture. Specifically, we predict that we will replicate (1) the curvilinear relationship between performance and turnover, and (2) the moderating effects of pay-for-performance; but also (3) that culture will affect the nature of these relationships. We test our hypotheses on a sample of 4072 employees from 24 countries, and analyze our data with non-linear HLM models.Item Will the Real Correlation Please Stand Up? An Examination of the Effectiveness of Statistical Corrections for Common Method Variance Using Data SimulationRichardson, Hettie A.; Simmering, Marcia J.; Sturman, Michael C. (2004-01-01)A concern of researchers is the risk of measurement error due to common method variance (CMV) when using self-reported data. The present study addresses this concern by empirically comparing four techniques for correcting CMV. Eighteen simulated datasets, with varying degrees of method variance, group agreement, and reliability, were analyzed. Based on these analyses, benefits and drawbacks of correcting CMV using the different techniques are detailed. Recommendations for using the different techniques are also provided.Item Institutional Holding PeriodsChakrabarty, Bidisha; Moulton, Pamela; Trzcinka, Charles (2013-04-29)We find wide dispersion in trade holding periods for institutional money managers and pension funds. All of the funds execute round-trip trades lasting over a year; 96% of them also execute trades lasting less than one month, although average short-duration trade returns are negative. We find only limited evidence that institutions choose holding periods based on portfolio optimization and no evidence that short-duration trades are driven by the disposition effect. Our results are consistent with the agency problem that arises when clients cannot distinguish when a manager is “actively doing nothing” versus “simply doing nothing” as well as manager overconfidence.Item Future Earnings Growth Volatility and the Value PremiumAlcock, Jamie; Steiner, Eva; Tan, Kelvin Jui Keng (2011-12-01)The value premium is well established in empirical asset pricing, but to date there is little understanding as to its fundamental drivers. We use a stochastic earnings valuation model to establish a direct link between the volatility of future earnings growth and firm value. We illustrate that risky earnings growth affects growth and value firms differently. We provide empirical evidence that the volatility of future earnings growth is a significant determinant of the value premium. Using data on individual firms and characteristic-sorted test portfolios, we also find that earnings growth volatility is significant in explaining the cross-sectional variation of stock returns. Our findings imply that the value premium is the rational consequence of accounting for risky earnings growth in the firm valuation process.Item Institutional Ownership and Return Predictability Across Economically Unrelated StocksGao, George P.; Moulton, Pamela; Ng, David T. (2015-07-10)We document strong weekly lead-lag return predictability across stocks from different industries with no customer-supplier linkages (economically unrelated stocks). Between 1980 and 2010, the industry-neutral long-short hedge portfolio earns an average of over 19 basis points per week. This return predictability arises exclusively from pairs of stocks in which there are common institutional owners. This predictability is a new phenomenon which does not originate from the slow information diffusion underlying previously documented lead-lag effects, weekly reversals, momentum, nonsynchronous trading, or other known factors. Our findings suggest that institutional portfolio reallocations can induce return predictability among otherwise unrelated stocks.Item Adoption and Coexistence of GE, Conventional non-GE, and Organic CropsAdalja, Aaron; Greene, Catherine; Hanson, James; Ebel, Robert; Barron, Michael (2013-07-29)The adoption of genetically engineered (GE) crop varieties by U.S. farmers is widespread for major crops—94 percent of planted acres for soybeans, and 88 percent for corn in 2012 (USDA-NASS 2012). The potential exists for GE crop production to impose costs on organic and conventional non-GE production via unintended presence of GE material along the supply chain through: • Contamination of seed stock • Accidental cross-pollination • Accidental co-mingling during planting, harvesting, handling, and storing of crops (Bullock and Desquilbet 2002). Maintaining the integrity of GE-differentiated product markets relies on segregation protocols such as: • Hybrid selection and seed purity testing • Physical distancing during crop production • Equipment cleaning and product segregation during processing • GE-testing (Greene and Smith 2010).Item Impacts of the Food Safety Modernization Act on On-Farm Food Safety Practices for Small and Sustainable Produce GrowersAdalja, Aaron; Lichtenberg, Erik (2015-07-01)We use data from a national survey of fruit and vegetable growers to examine the current prevalence and cost burden of food safety practices required in the proposed Produce Rule implementing the Food Safety Modernization Act. In particular, we analyze the influence of farm size and farming practices on the probability of adopting food safety measures that would be required by the Produce Rule; and we analyze how the costs of using those food safety practices vary by farm size and farm practices. Majorities of our respondents currently employ most of the food safety practices that would be required under the proposed Produce Rule, but a large number of growers will nonetheless face significant changes to meet the Rule’s requirements. We do not find any effect of farm size on the probability of using food safety measures, but we find that food safety costs significant economies of scale. Sustainable farming practices are negatively correlated with the probability of testing and conducting field inspections, and they are associated with increased costs for testing and sampling, harvest container sanitation, and written records relative to conventional growers. While our estimates indicate that small and sustainable growers would face more significant changes and more burdensome costs to comply with the proposed Produce Rule, in our sample most of them would ultimately be exempt from the rule either based on farm size or the Tester-Hagan exemption.Item The Effect of Service Complexity on Performance of Franchised OutletsLawrence, Benjamin; Canina, Linda; Enz, Cathy A. (2015-06-01)The overall results of this study suggest that for low service complexity new ventures the incentive structures and contractual arrangements inherent in franchising are well suited. In service ventures with high levels of service complexity, arrangements involving two distinct parties that must work together may be more costly and difficult to manage. We find that franchisee outlets outperform independent entrepreneurs in each of the first three years of operation when the service business was low in complexity. In contrast, independent operators were able to outperform franchisees after the first year in complex service enterprises. Franchisors who operated in complex service settings were only able to outperform independents in the first year of operation, suggesting that both experienced chains who provide reliable and consistent services and independent entrepreneurs who quickly learn to adapt to the broad needs of sophisticated consumers are able to obtain performance success.