Journal of Applied Business and Economics

Overcoming Poverty: The Impact of Entrepreneurship Training

Maureen Snow Andrade, Ronald Mellado Miller, Eugene Seeley — Sat, 30 Nov 2024 00:00:00 -0500

Educational attainment may deter entrepreneurial activity. Educated individuals have greater job choice while lacking education can drive entrepreneurship out of necessity. Entrepreneurial training helps individuals learn the skills to launch businesses and become self-reliant. This study examined the efficacy of an entrepreneurial preparation program in Mexico by analyzing survey responses related to education and motivation. Findings indicate that factors other than training had more impact on business ownership. Motivational factors were positively correlated with the likelihood of being an entrepreneur. Mother’s education level was positively correlated with the likelihood of working for someone else.

Exploring the Effect of the Government Interventions on the Information Asymmetry in the Post-Pandemic

Chih-Hsiung Chang — Sat, 30 Nov 2024 00:00:00 -0500

The article aimed to explore the effect of the government intervention on the information asymmetry in Taiwan’s credit card market during the post-pandemic. To achieve the goal, the article constructed the information asymmetry model which was combined with the government interventions, adverse selections and moral hazards and designed the hypotheses. It was concluded that the government interventions involved with the fiscal and monetary policies failed to improve the market failure and even caused the government failure. The conclusions revealed a significant implication for the policymakers to make the proper policies when facing the challenges in the future.

A Generalized Autoregressive Conditional Heteroscedasticity GARCH for Forecasting and Modeling Crude Oil Price Volatility

Gbolahan Solomon Osho, Bolaji Oloyede — Sat, 30 Nov 2024 00:00:00 -0500

This current study explores the application of Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models to forecast and model crude oil price volatility. Crude oil is a vital commodity whose price fluctuations significantly impact global economies, energy markets, and strategic decisions of both National Oil Companies (NOCs) and International Oil Corporations (IOCs). Using the GARCH(1,1) and GARCH(1,2) models, this study evaluates the effectiveness of these models in capturing the dynamic nature of oil price volatility. The findings indicate that while both models fit the data well, the GARCH(1,1) model is preferred due to its parsimonious nature and comparable forecast accuracy. Despite including an additional lag in the GARCH(1,2) model, it did not significantly outperform the GARCH(1,1) model in predictive performance. The study further analyzes the residuals and autocorrelation characteristics, highlighting the potential for model refinement. The study underscores the importance of selecting an appropriate model complexity, incorporating external factors, and exploring advanced methodologies to enhance forecast accuracy. These insights are critical for developing effective risk management strategies and informing policy decisions in volatile crude oil markets.

ESG Disclosure Based on Regulatory Landscape: An Enquiry Into the Stock Exchange Enlisted Banks in a Fastest Growing Economy

Sangida Akter Saroni, Syed Zabid Hossain, Md Sayaduzzaman — Sat, 30 Nov 2024 00:00:00 -0500

This research aims to reveal the extent, modes, and trend of ESG disclosure by the banks in Bangladesh. Analyses involve annual reports of 28 banks from 2016 to 2022 through the content analysis method using a ‘checklist’ comprised of 143 ESG disclosure items compiled from several policy guidelines regarding environmental and social performance disclosure circulated by the central bank, Bangladesh Bank. The study finds a spontaneously increasing tendency for ESG disclosure during the study period. Banks disclose information in both financial and non-financial modes, along with necessary details. However, information non-disclosure results in 75.18%, 63.38%, and 67.40% of environmental, social, and governance information, including many important ESG aspects that should not be ignored. The study result represents an optimistic scenario of ESG disclosure; nonetheless, Bangladeshi banks are yet to develop ESG disclosure practices.

Information Technology and Electronic Commerce Investments, Time Trends of the Speeds of Adjusting the Actual Toward the Maximum Pay, and Chief Executive Officer Compensation

Winston T. Lin, Yueh H. Chen — Sat, 30 Nov 2024 00:00:00 -0500

This research analyzes the effects of information technology (IT) and e-commerce (EC) investments and trends of the speeds of adjusting the observed toward the desired CEO pay in US firms, based on the adjustment model and its associated adjustment valuation (AV) approach, where the adjustment speeds are assumed dynamic and variable. The findings include: the speeds of adjusting the observed toward the unobserved compensation are fast; either IT or EC appearing alone or jointly impacts CEO compensation; the trends of adjustment speeds are nonlinear and nonstationary; and overall, the US CEOs tend to underpay during the period under study; among others.

Predicting Counterproductive Work Behaviors: Examining the Role of Spiritual Intelligence and Personality Traits in Public and Private Sector Organizations

Neha Jain, Anushri Rawat — Sat, 30 Nov 2024 00:00:00 -0500

Counterproductive work behaviors are intentional and harmful behaviors directed either towards the organization or towards its people. This study attempts to examine the role of two antecedent variables, spiritual intelligence (SQ), and personality based on the Big Five Personality dimensions (extraversion, agreeableness, conscientiousness, neuroticism and openness) in predicting the occurrence of counterproductive work behaviors. Two dimensions of counterproductive work behaviors: rating and self-indulgence were used in this study based on the tool developed by Jain & Singh (2020). A sample of 351 employees working in both public (170) and private (181) sector organizations in India was taken for the purpose of the study. Mean, correlational analysis and multiple hierarchical regressions were carried out to test the hypotheses. Significant results were found for both personality and spiritual intelligence (SQ) in predicting counterproductive work behaviors across both public and private sector organizations. The two antecedent variables significantly improved the model's predictive power, for both public and private sector organizations, though to a lesser extent in the private sector. No difference was found based on gender.

Auditing Transformation: A Model of Artificial Intelligence Adoption

Joseph B. O’Donnell — Sat, 30 Nov 2024 00:00:00 -0500

Auditors using artificial intelligence (AI) offers opportunities for transforming audits, and drastically improving audit effectiveness and efficiency. Generative AI, augmented AI, and AI performing an entire audit offer possibilities for enormous cost savings and the potential to dramatically improve audit quality. Obstacles to audit adoption include AI processing opaqueness, shortage of auditors with AI knowledge, a dearth of AI audit standards, and significant AI implementation costs. This paper develops a theoretical auditor AI adoption model utilizing innovation diffusion theory (IDT) and the Technology Acceptance Model (TAM). The paper provides suggestions for facilitating auditors’ adoption of AI.

Expectations vs. Abilities: Bridging the Gap

Mary Andrews Martin — Sat, 30 Nov 2024 00:00:00 -0500

The purpose of this grounded theory study which applies qualitative techniques, using open-ended interviews and surveys, is to address the problem that businesses lack efficient and effective work production due to entry-level employees not being adequately prepared. The specific purpose is to understand what deficits currently exist between demands and abilities, and what can be done to eliminate those. While there is always some on-the-job training, having this knowledge will fill the current gap in the literature and better prepare entry-level practitioners. While this study looks specifically at accounting students, it can be applied to all areas of business.

The Geographic Proximity Among Firms, Auditor Office and SEC office and Audit Fees

Liang Fu, Mohinder Parkash, Yin Yu-Thompson — Sat, 30 Nov 2024 00:00:00 -0500

This paper investigates the geographic distances among the auditors, audit clients, and the regulatory agency Securities & Exchange Commission (SEC) and their impact on audit quality. Consistent with the exacerbated information asymmetry issue caused by distance, we find the audit quality is negatively associated with the distance between the client/auditor and the SEC offices. We further find that auditors charge higher fees when they are closer to the SEC office, irrespective of the client’s distance to the SEC. This suggests that the distance between auditor and the SEC has a more prominent influence than the client’s location on the audit quality.

A Content Analysis of the Modernization of Regulation S-K Items 101, 103, and 105

Orry Swift, Ricardo Colon — Sat, 30 Nov 2024 00:00:00 -0500

In 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to modernize the disclosure requirements of Regulation S-K Items 101, 103, and 105. These amendments aim to enhance the readability of disclosure documents and provide investors with more relevant information. This study conducts a content analysis of the modernized disclosure items to assess the extent and nature of the changes implemented. A sample of annual reports filed before and after the amendments was examined to determine whether the SEC meets its stated goals of improving the readability of disclosure documents and discouraging repetition and immaterial information. We conclude that the stated SEC goals for modernization were not met in terms of textual characteristics. These findings provide insights into the effectiveness of the SEC's efforts to update disclosure rules and improve investor’s informational value.

Effects of Sub-National Political Institutions on Localized Innovation: Evidence From United States Counties

Rusty V. Karst, Andrew Johnson, Colin Wooldridge — Sun, 29 Dec 2024 00:00:00 -0500

This study investigates the influence of political institutions on innovation at the sub-national level in the United States, an area less explored compared to national contexts. It examines how political affiliations impact innovation support and outcomes, which are crucial indicators of economic development. The analysis focuses on county-level political affiliation, calculated as the mean percentage of Democratic versus Republican votes across five presidential elections. Data from over 94% of US counties were analyzed using hierarchical linear regression. The study evaluates the relationship between political affiliation and four measures of innovation, including support factors like venture capital and business incubators, as well as outcomes such as patents and initial public offerings. The findings indicate that counties leaning Democratic create a more favorable political environment for innovation. These results underscore the significant role of political institutions in fostering innovative business activities at the sub-national level, providing insights for policymakers and stakeholders aiming to enhance local economic growth.

Impacts of Emotional Intelligence on Job Satisfaction and Job Performance of Employees: Evidence From Bangladesh

Zahidul Karim, Saha Iqbal Hossain, Sumaya Fatema Binte Shahid — Sun, 29 Dec 2024 00:00:00 -0500

Drawing on trait emotional intelligence theory, this study explores the interplay of emotional intelligence (EI), job satisfaction (JS), and job performance (JP) in Bangladesh. Analyzing data from 402 employees and managers across various organizations, SEM analysis via WarpPLS and regression in SPSS reveal significant findings: EI positively influences both JS and JP. Moreover, JS partially mediates the EI-JP relationship. The study underscores the nuanced relationships among EI, JS, and JP, offering insights for scholars and managers into optimizing workplace dynamics. These findings contribute to understanding and leveraging emotional intelligence in enhancing job satisfaction and performance across diverse organizational settings.

You Better Be Glad I Love My Job!

J. Keith Mitchell, C. Michelle Sullivan, Keith Cole, Ken Harris — Sun, 29 Dec 2024 00:00:00 -0500

Purpose - This paper investigates the effect of job satisfaction as it moderates the relationship between intent to turnover and role overload when deviant behavior is the dependent variable.

Design/methodology/approach - A survey was used with a sample size of 171. Findings- Results show that despite prior research to the contrary, role overload is negatively associated with deviant behavior. Also, we confirmed that job satisfaction buffers role overload and intent to turnover.

Practical implications - The findings offer important insights into the power of job satisfaction. When the employees are content with their role, they are willing to deal with conditions that are less than ideal.

Originality - This study extends our understanding of the effect of job satisfaction in a negative environment. It also demonstrates the need to revisit the relationship between role overload and deviant behavior.

Emotional Wellbeing: Understanding the Role of Entrepreneurs in AI-Enabled Machines

Amy Gresock, Kira Leck — Sun, 29 Dec 2024 00:00:00 -0500

Artificial intelligence applications are more pervasive than ever, and users trust AI-enabled machines (AIEMs) for many tasks. However, the improper design and use of AIEMs may threaten individuals' ability to shape their lives and make their own decisions. This may be especially true with AIEMs designed with a high degree of humanlike features, which contribute to processes of anthropomorphization. This can encourage a parasocial relationship by the user, which fosters trust and increased usage of the device. Since AIEMs may nudge user behavior, entrepreneurs must consider the psychological aspects of relationship building when creating these devices.

Analysis of the Relationship Between Extreme Weather Disasters and Claim Ratio Volatility Under Global Climate Change

Xinyue Li, Chengyi Pu — Mon, 30 Dec 2024 00:00:00 -0500

Frequent extreme weather events cause significant loss of life and property, highlighting the link between “extreme weather risk – catastrophic loss – high claim ratio – insurer solvency.” However, little research explores the mechanisms among these factors. This paper analyses the relationship between extreme weather and property insurance claim ratios, using data from 30 Chinese provinces (2012-2021). It constructs indices for high temperature, low temperature, and heavy precipitation, showing a strong correlation between extreme weather and claim ratios. Over 3- and 5-year periods, these indices significantly increase claim ratios, leading to complete or partial mediation effects on the solvency of property insurance companies.

Incorporating GPT in a Term Project in Advanced Accounting: An Exploration in AI-Assisted Research

Lei Han — Mon, 30 Dec 2024 00:00:00 -0500

This study modifies an existing term project to afford an GPT-assisted research opportunity for advanced accounting students. Most students surveyed agreed that the project helped them gain working knowledge on GPT, felt more confident in using GPT, and were open to the idea of using GPT in varied settings. However, many students claimed that they would not fully rely on GPT to do their work. A similar approach can be easily adopted to modify traditional essay assessments in other courses or disciplines to familiarize students with generative artificial intelligence's capabilities.

Revolutionizing Financial Health Predictions: The Integration of GenAI and Advanced Machine Learning Techniques

Karina Kasztelnik, Steven Campbell — Tue, 31 Dec 2024 00:00:00 -0500

Integrating Generative AI (GenAI) and advanced machine learning techniques into financial health predictions represents a revolutionary approach to financial technology. While prior research has incorporated machine learning and artificial intelligence into financial analysis, GenAI has not yet been incorporated into financial models. Our comprehensive experimental study aims to bridge this gap by harnessing the advanced capabilities of Generative AI to improve predictive accuracy and model robustness. The distinctive contribution of this study lies in its utilization of Generative AI, which offers novel insights and methodologies that traditional machine-learning techniques do not provide. A key discovery of this study is the alignment of Generative AI with quantitative models, revealing the potential to identify fraud and financial difficulties that stakeholders should consider before making investment decisions. Moreover, the study proposes that a mixed-method approach could be beneficial for future research in risk measurement. These unique and novel findings highlight that traditional methods would not have been able to uncover such insights. This research provides robust and interpretable financial assessments and contributes valuable knowledge to financial technology, showcasing the innovative application of Generative AI in financial health predictions.

The Impact of Ethical Orientation and Personality on Virtual Collaboration Usage

Eric G. Kirby, Susan L. Kirby, Robert Konopaske, Robert A. Giacalone — Tue, 31 Dec 2024 00:00:00 -0500

This paper predicts the use of virtual collaboration using instant messaging applications in a university setting. It examines the impact of age, sex, ethical orientations, and bright and dark personality traits on the usage of virtual collaboration applications. A significant finding is younger students and women are more likely to use this type of application. While ethical relativity and egoism also predict usage, being oriented toward justice negatively relates to application utilization. In terms of personality, the bright measure of extroversion is highly significant as is the dark variable narcissism. Finally, there is a very strong negative relationship with psychopathy.

Competitive Advantage and Marketing Strategies in the Entertainment Industry: From DVD by Mail to Streaming Services

Etienne Musonera — Tue, 31 Dec 2024 00:00:00 -0500

Netflix, the world’s largest subscription online movie and TV show streaming company, faces more competition than ever due to changing technology and consumer preferences. In this study, we analyzed Netflix competitive advantage and marketing strategies, performed a situational analysis, and provided potential strategic alternatives for Netflix to be competitive in this fierce and dynamic global environment. This paper uses a case analysis approach to address and analyze marketing strategies in the entertainment industry in general and Netflix in particular. We recommend that Netflix invest heavily in innovation to stay ahead in this global saturated and mature market.

Intra-Household Portfolio Decision in Retirement: Bargaining Power and Gender Health Differences

You Du — Tue, 31 Dec 2024 00:00:00 -0500

This paper investigates how the health-determined bargaining power affects the joint portfolio decision-making of retired households. Data demonstrate a decline in the risky share of married households after retirement, whereas the risky share of single households remains relatively stable. Meantime, wives tend to be younger, healthier, and more risk-averse than husbands. This suggests a potential correlation between health-determined bargaining power dynamics and the household’s portfolio allocation in retirement: as people age, health factors play a more crucial role in determining bargaining power. Consequently, the wife’s bargaining power strengthens, leading the household’s collective portfolio decisions to increasingly reflect her preferences. This dynamic underscores the importance of considering health factors in understanding how joint portfolio decisions are made in retirement. It highlights the potential role of intrahousehold bargaining power in shaping financial outcomes. Realizing this knowledge, policymakers can enhance their ability to better support households’ financial planning and choices during retirement.