Research Seminars

Audit Partner Performance: A Network Perspective

Accounting & Management Control

Speaker: Irem TUNA
LBS

12 December 2014 - Room T017 - From 2:00 pm to 4:00 pm


We provide a partner level analysis on the association between the social capital of an audit partner and their audit quality and fees. We use social capital theory and techniques developed in social network analysis to measure the audit partner’s level of connectedness and investigate whether these connections provide information advantages and enhance their social influence. Both of these potential network benefits we argue support the audit partner attributes - personal capabilities and level of independence - necessary to provide high quality audits. Using a sample of French listed firms we construct a network consisting of 4,159 board directors and 734 audit partners, mapping the connections between audit partners and directors, between directors and between audit partners, we find that better-connected (better-networked) audit partners provide higher quality audits and are associated with higher audit fees. The level of an audit partner’s social capital decreases if they have higher levels of tenure and greater levels of economic bonding with their clients.

Finance

Speaker: Bruno Biais
Toulouse School of Economics

11 December 2014


Creating Something out of Nothing” : Routines in Episodic Organizations ?

Management & Human Resources

Speaker: Daphnée DEMETRY
Northwestern University - USA

11 December 2014 - T030 - From 2:30 pm to 4:00 pm


Employees’Reaction to Leader’s Unethical Pro-Organizational Behavior and Their Own Unethical Behavior : The role of Implicit Beliefs of Individual and Group Agency?

Management & Human Resources

Speaker: Zhi LIU
Columbia Business School - USA

10 December 2014 - T04 - From 11:15 am to 12:45 pm


Finance

Speaker: Nikolaï Roussanov
Wharton

4 December 2014


SOCIAL BIAS IN ONLINE PRODUCT RATINGS

Information Systems and Operations Management

Speaker: Michael Zhang
Associate Professor , Hong Kong University of Science and Technology

3 December 2014 - HEC Paris - Jouy en Josas Campus - Building S - Room 126 - From 2:00 pm to 3:30 pm


We investigate social influence between online friends in online book ratings with rating and social-network data from a popular online rating website in China. Our methodology exploits the dynamic feature of online social networks and offers a unique method for identifying the presence of social influence while accounting for rater similarity in online book ratings. On average, rating similarity between friends is about 1.9 times higher with social influence. We further discuss the impacts of user-­ and book-characteristics on the focal users’ susceptibility to social influence from their online friends. We find that social influence is stronger for older and more popular books and for users who have smaller online social networks. Underscoring an important feature of social media, we also find that more recent friends’ ratings have more significant influence.

Bio: Professor Michael Zhang is an Associate Professor of Information Systems, Business Statistics and Operations Management at the Hong Kong University of Science and Technology, and an affiliated faculty at MIT Center for Digital Business. He holds a PhD in Management from MIT Sloan School of Management, an MSc in Management, a BE in Computer Science and a BA in English from Tsinghua University. Before joining the academia, he worked as an analyst for an investment bank, and as an international marketing manager for a high-­tech company. He holds a US patent, and started a social network company. Professor Zhang’s research interests are on issues related to creation, dissemination and processing of information in business and management contexts. His works study pricing of information goods, online word-­of-mouth, online advertising, incentives of creation
in open source and open content projects, and use of information in financial markets. His research has appeared in American Economic Review (AER), Management Science, Journal of Marketing (JM), MIS Quarterly (MISQ), Information Systems Research (ISR), Journal of MIS (JMIS), Decision Support Systems (DSS), and Journal of Interactive Marketing. He has also been actively involved in professional services, including serving as an Associate Editor for Information Systems Research (ISR), a Guest Associate Editor for MIS Quarterly, and a member of the editorial boards of Production and Operations Management (POM) and Electronic Commerce Research and Applications.

Status maintenance in high-status groups : Implications of intergroup status for intragroup behavior

Management & Human Resources

Speaker: Jin Wook CHANG
Carnegie Mellon University - USA

2 December 2014 - T04 - From 9:30 am to 11:00 am


Understanding Employee Compliance and Championing of Organizational Change

Management & Human Resources

Speaker: Mel FUGATE
Cox School of Business at Southern Methodist University - Dallas - USA

26 November 2014 - T04 - From 11:10 am to 12:40 pm


The Higher Moments of Future Earnings

Accounting & Management Control

Speaker: Woo-Jin CHANG
INSEAD

21 November 2014 - Room T017 - From 2:00 pm to 4:00 pm


We use quantile regressions to evaluate the higher moments of future earnings. First, we evaluate the in-sample relations between current firm-level attributes and the moments of lead return on equity, ROE. We show that: (1) as current ROE increases lead ROE tends to increase, become more disperse, and more leptokurtic; (2) loss firms tend to have lower, more disperse, and more left-skewed lead ROE; (3) as accruals increase lead ROE tends to decrease and become more disperse; and, (4) firms with higher leverage and/or lower payout ratios tend to have greater dispersion in lead ROE. Second, we show that the in-sample relations generate reliable out-of- sample estimates of the standard deviation, skewness, and kurtosis of lead ROE. Moreover, when compared to estimates obtained via alternative approaches, our out-of-sample estimates: always contain incremental information content and are typically more reliable. Finally, we evaluate the relation between higher moments and market-based variables. These analyses demonstrate that equity prices are increasing in the variance and skewness of lead ROE but decreasing in the kurtosis of lead ROE. Credit spreads are increasing in the variance and kurtosis of lead return on assets, ROA, and decreasing in the skewness of lead ROA.

Finance

Speaker: Francesco Franzoni
Swiss Finance Institute

20 November 2014



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