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Recent Journal Publications by COB Faculty

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Academic Journal
Finance

“Bank-firm relationships, financing and firm performance in Germany”

Close bank”firm relationships that characterize the financial systems in Germany and Japan are often credited for reducing agency costs and increasing access to capital, thus improving the performance of firms. Critics of these banking systems cite the alternative possibility that conflicts of interests may also arise from both the banks' multiple roles with the firm, and the opportunity the banks have to use private information to shift risk or to otherwise participate in rent-seeking activities. We extend the empirical literature by systematically investigating the impact of bank-influence on the financing choices and performance of the firm. We find that bank-influenced firms in Germany do benefit from increased access to capital. There is, however, no evidence to support the hypothesis of either higher profitability or growth for bank-influenced firms. Results suggest that the interest payments to debt ratio is significantly higher for bank-influenced firms, which supports the hypothesis that German universal banks may engage in rent-seeking activities and provides evidence of a conflicting interests between creditors and shareholders.
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Academic Journal
Management

“Behavioral cues as indicators of deception in structured employment interviews”

Two studies were conducted to examine the use of behavioral cues to identify deception within structured interviews. In Study 1, participants engaged in mock interviews in which they were instructed to lie on specific questions that varied by person. Trained coders evaluated the presence and extent of deception cues in each videotaped response. Nine cues predicted responses as expected, demonstrating that, with careful scrutiny, it is possible to detect deception. In Study 2, participants, either informed or uninformed regarding deception cues, viewed five interviews and evaluated responses as being honest or deceptive. Participants also rated overall interview performance. Participants were unable to accurately distinguish lies from truths. Nevertheless, performance ratings differed on the basis of rater perceptions of truthfulness.
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