Research Magazine 2022

Research Magazine 2022

Coles Research Magazine Eighth Issue | 2022

Strong research challenges expectations while hinting at exciting new possibili- ties. The articles presented here from faculty and Ph.D. candidates in the Michael J. Coles College of Business not only enhance our current understanding of busi- ness practices and theory, but also provide a possible glimpse into the future. In this 8th edition of The Coles Research Magazine, you will find four papers published in Financial Times Top 50 journals, research that earned its authors Coles College Outstanding Journal Publication and Community Engagement awards, the winners of the Coles Working Paper Series awards, papers presented at the Coles Research Symposium on Homeland Security, and the work of three summer research fellows. In addition to faculty research, the issue includes two Ph.D. candidate executive summaries. Highlighting the exceptional work of the College’s faculty and students is not the only goal of The Coles Research Magazine. Equally as important is presenting the research so that it is relatable and – more importantly – actionable to real mem- bers of the business community. Each article includes an easy-to-understand executive summary along with a listing of each paper’s key takeaways. I invite you to explore the latest edition of The Coles College Research Magazine and discover the cutting-edge research today that will define how you conduct business tomorrow.

Robin Cheramie Dean, Michael J. Coles College of Business Tony and Jack Dinos Eminent Scholar Chair of Entrepreneurial Management Kennesaw State University

Table of Contents

Journal Publications - Financial Times Top 50 Journals 6 Do Alma Mater Ties Between the Auditor and Audit Committee Affect Audit Quality? By Divesh S. Sharma, Madhukar K. Singh, and Arvind Patel 8 Earnings Forecasts and Price Efficiency after Earnings Realizations: Reduction in Information Asymmetry through Learning from Price By Guojin Gong, Hong Qu, and Ian Tarrant 10 Disparate Safety Enforcement: Curvilinear Effects, Mechanisms, and Boundary Conditions of Supervisor-Rated Leader-Member Exchange By Sara Jansen Perry, Natalia M. Lorinkova, and Melih Madanoglu 12 Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success By Sina Golara, Kevin J. Dooley, and Nasim Mousavi Journal Publications - Distinguished Journal 14 Workdays Are Not Created Equal: Job Satisfaction and Job Stressors Across the Workweek By Shani Pindek, Zhiqing E. Zhou, Stacey R. Kessler, Alexandra Krajcevska, and Paul E. Spector 16 A Generalized Ordinal Finite Mixture Regression Model for Market Segmentation By Yifan Zhang, Duncan K. H. Fong, and Wayne S. DeSarbo

Community Engagement 18 Pro-Bono Research and Reports on Georgia Film Tax Credits By JC Bradbury

* Coles College of Business faculty highlighted in bold.

Table of Contents

PhD Summaries 20 When Leaders Ostracize: Bottom-Line Mentality Climate and Emotional Labor as Predictors of Workplace Ostracism By Darrin E. Theriault, James A. Meurs, Saurabh Gupta, and Graham H. Lowman 22 The Evolution of Sales: Assessing the Integration of Social Selling into Professional Sales and the Sales Cycle By Jen Riley, Brian N. Rutherford, Adriane B. Randolph, and Stefan Sleep Coles Research Symposium 24 Detecting and Rectifying the Non-Malicious Insider Threat in a Healthcare Setting By Humayun Zafar 26 A Strategic Model of Cyber-Security with Multiple Agents and Actions By Jomon A. Paul and Abhra Roy 28 Immigration, Terrorism, and the Economy By Jomon A. Paul and Aniruddha Bagchi 30 A Scenario Robust Bi-Objective Model for Integrating Disaster Mitigation and Preparedness By Jomon A. Paul and Xinfang (Jocelyn) Wang Summer Research Fellowship 32 Loneliness in the Workplace By Stacey R. Kessler 34 The Truth in the Lie: The Effect of Fear of Missing Out on Stakeholder Enrollment By Susan Young

* Coles College of Business faculty highlighted in bold.

Table of Contents

Summer Research Fellowship (Continued) 36 Marijuana Use and Health By Weiwei Chen

Working Papers 38 The Joint Effect of Justification and Uncertainty on Real Earnings Management By Hong Qu, Lucy F. Ackert, Dana R. Hermanson, and Vellna K. Popova 40 Why Do Bank Boards Have Risk Committees? By René M. Stulz, James Tompkins , Rohan Williamson, and Zhongxia (Shelly) Ye 42 Development of Novel Critical Thinking Assessment Instruments By Jomon A. Paul, Mona Sinha, and Justin D. Cochran 44 Stable Income, Stable Family By Isaac D. Swensen, Jason M. Lindo, and Krishna Regmi 46 Misspecification and Weak Identification in Asset Pricing By Frank Kleibergen, and Zhaoguo Zhan

* Coles College of Business faculty highlighted in bold.

Do Alma Mater Ties Between the Auditor and Audit Committee Affect Audit Quality? Divesh S. Sharma, Madhukar K. Singh, and Arvind Patel

Contemporary Accounting Research Vol. 39, No. 1 (March 2022), pp. 371-403

Overview We examine whether ties between an auditor and the audit committee (AC) based on their former employment at an audit firm are associated with the allocation of significantly more nonaudit services (NAS) to the auditor. We also examine whether the resulting NAS affect audit quality. Predicating our hypotheses on social ties theory, we find that firms with an audit-firm alumn on the AC acquire more NAS from the alumn’s former employer. Further, this association strengthens with the alumn’s tenure, and based on various measures, audit quality suffers. Collectively, our results suggest that audit-firm alma mater ties between the AC and auditor engender economic ties that adversely affect audit quality. Our study provides new evidence on the channels that affect audit quality and raises questions about the composition of the AC, auditor-provided NAS, and client assignment to engagement partners.

6 | Journal Publications - Financial Times Top 50 Journals

Executive Takeaways

■ The appointment of audit-firm alumni to a client’s audit committee can be a double-edged sword for investors in terms of audit quality. ■ Alumni appear to favor their former audit firm, allowing it to provide both audit and consulting services. ■ When alumni on audit committees approve more consulting from their former audit firm, audit quality is impaired. ■ The intricate relationship between alumni and their former audit firm may require scrutiny from various stakeholders.

Divesh S. Sharma, Professor of Accounting

Earnings Forecasts and Price Efficiency After Earnings Realizations: Reduction in Information Asymmetry through Learning from Price Guojin Gong, Hong Qu, and Ian Tarrant

Contemporary Accounting Research Vol. 38, No. 1 (March 2021), pp. 654-675

Overview Financial analysts and corporate managers frequently forecast earnings prior to their realization. Do public forecasts matter after the facts are known? We find that when information asymmetry is a major market friction, earnings forecasts can lead to higher price efficiency even after the earnings become public knowledge. In an experimental market characterized by information asymmetry—that is, some traders have private information—earnings forecasts reduce information asymmetry and lead to prices that reflect a greater amount of private information. Information aggregated in past prices continues to reduce information asymmetry and improve price efficiency even after earnings realizations. We contribute to the disclosure literature by showing that the learning-from-price effect amplifies the impact of public disclosure on price efficiency.

8 | Journal Publications - Financial Times Top 50 Journals

Executive Takeaways

■ Public forecasts improve market efficiency and protect less informed investors. ■ Public forecasts speed up private information aggregation in price. ■ Price information, in turn, gradually reduces information asymmetry.

Hong Qu, Assistant Professor of Accounting

Disparate Safety Enforcement: Curvilinear Effects, Mechanisms, and Boundary Conditions of Supervisor-Rated Leader-Member Exchange Sara Jansen Perry, NataliaM. Lorinkova, and MelihMadanoglu

Journal of Management, 2021

Overview Across three studies, we integrate relational leadership theory with affective events theory to examine how leaders’ relational quality with their subordinates influences leaders’ safety-enforcement behaviors. In two field studies with different high-risk contexts, we find a curvilinear relationship between supervisor-rated leader/member exchange (SLMX) and safety enforcement. The second study also examines the moderating role of leaders’ commitment to safety and the link between safety enforcement and accidents. These two studies reveal that less committed leaders are likely to monitor safety most closely for low- and high-SLMX subordinates, while mid-SLMX subordinates are most likely to be overlooked. ingof three relational dynamics—trust, consideration, and liking— as mechanisms of the effect of SLMX on safety enforcementWe find a U-shaped relationship similar to that in the field studies between liking and enforcement, while the relationship between enforcement and both distrust and consideration is positive. These efforts represent rare direct tests of the hypothesis that LMX includes differential treatment based on affective relationship cues and elucidate how leaders can foster a safer workplace for all.

10 | Journal Publications - Financial Times Top 50 Journals

Executive Takeaways

■ Weak levels of workplace safety enforcement lead to accidents. ■ Less committed leaders rely on relational cues to determine how to enforce safety. ■ Subordinates who have medium relational quality with their leaders receive the least safety-related attention. ■ Liking their subordinates may dominate leaders’ decisions about safety enforcement behaviors.

Melih Madanoglu, Michael A. Leven Endowed Chair and Professor in Hospitality Management

Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success Sina Golara, Kevin J. Dooley, and NasimMousavi

Production and Operations Management Vol. 30, No. 10 (October 2021), pp. 3560-3578

Overview Most automobile manufacturers use franchised dealers to distribute their products and to perform sales-related and after-sales services. However, the link between dealers’ service quality and manufacturer performance is not well understood. Some studies suggest that service quality affects initial product sale, repeat sales, and brand reputation. Others posit that dealer services are a commodity, and their quality affects sales only at extremes. We gathered >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52

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