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Recent Journal Publications by COB Faculty

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Academic Journal
Accounting

“Income Shifting and U.S. International Trade in Goods Statistics”

Intrafirm trade represents greater than one-third of total U.S. international trade in goods. Since these are not arm’s-length transactions, trade policymakers have voiced concerns that income shifting may distort international trade in goods statistics through the manipulation of transfer prices. Using country-level data on intrafirm exports and imports, we estimate a path analysis that simultaneously tests how and to what extent tax-motivated transfer pricing and real investment decisions affect intrafirm trade in goods statistics. Contrary to speculation, we do not find an economically significant relation between transfer pricing and intrafirm trade in goods statistics. In contrast, we find that tax-motivated location decisions create a 21 (20) percent or $819.7 ($927.1) million difference in mean intrafirm exports (imports) between the U.S. and a low- and high-tax country. This study provides trade policymakers with relevant information about the extent to which real investment decisions and accounting manipulations affect intrafirm trade in goods statistics and contributes to the international trade and income shifting literatures.
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Academic Journal
DSGN - Merchandising Management

“Increasing Shopper Trust in Retailer Technological Interfaces via Auditory Confirmation”

This research examines the effects of sounds made by retail technological interfaces – self- checkout kiosks, credit card readers, mobile apps, websites – at point-of-sale. We propose that such sounds, retail transaction auditory confirmation (RTAC), increase trust in technological interfaces by providing auditory confirmation that stages of the checkout process have been successfully executed. Increased trust in technological interfaces leads to positive downstream consequences in the form of satisfaction and purchase intention. Visual and auditory distraction in the retail environment reduces trust, even when visual confirmation is provided, but synchronously provided audio-visual confirmation attenuates the negative effects of environment distraction.
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Academic Journal
Supply Chain

“Informal Cross-Border Trade in Africa: Operations, Policy, and Opportunities”

Informal cross-border trade (ICBT) refers to the illegal activities of cross-border commerce conducted by unregistered small-scale traders. We seek to develop insights to understand the ICBT value chain and offer policy recommendations to successfully integrate it into the formal economy. Using a game-theoretic model, we analyze the operations and key market dynamics of ICBT. We analyze the policy implications of three representative UN directives: enhancing marginalized traders' access to formal channels, reducing export tax rates for formal traders, and introducing an alternative simplified trade regime (STR) for informal traders. All three policies result in an increase in government proceeds when the inherent profitability of the formal or STR channels is sufficiently high. Furthermore, social welfare increases when the policies effectively balance wholesale price competition within the formal and informal channels. We apply our model to a case study based on Uganda's agricultural exports over an 11-year horizon. The access enhancement policy is most effective in increasing government proceeds but least effective in improving the welfare of other participants. The tax reduction policy enhances traders' profitability but sacrifices the welfare of farmers and government proceeds substantially. Finally, the STR acknowledgement policy results in the largest increase in profitability of marginalized traders and farmers but comes at the cost of government proceeds.
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Academic Journal
Accounting

“Information flows among rivals and corporate investment”

Using a novel pairwise measure of firms’ acquisition of rivals’ disclosures, we show that investment opportunities drive interfirm information flows. We find that these flows predict subsequent mergers and acquisitions as well as how and how much firms invest, relative to rivals. Moreover, firms’ use of rivals’ information often hinges on the similarities of their products. Our results suggest that rivals’ public information, far from being unusable, helps facilitate investment and product decisions, including acquisitions and product differentiation strategies. The findings also support a learning mechanism that could partly underlie the emerging literature on peer investment effects.
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Academic Journal
BIS

“InfoSec Process Action Model (IPAM): Systematically Addressing Individual Security Behavior”

While much of the extant InfoSec research relies on single assessment models that predict intent to act, this article proposes a multi-stage InfoSec Process Action Model (IPAM) that can positively change individual InfoSec behavior. We believe that this model will allow InfoSec researchers to focus more directly on the process which leads to action and develop better interventions that address problematic security behaviors. Building on successful healthcare efforts which resulted in smoking cessation, regular exercise and a healthier diet, among others, IPAM is a hybrid, predictive, process approach to behavioral InfoSec improvement. IPAM formulates the motivational antecedents of intent as separate from the volitional drivers of behavior. Singular fear appeals often seen in InfoSec research are replaced by more nuanced treatments appropriately differentiated to support behavioral change as part of a process; phase-appropriate measures of self-efficacy are employed to more usefully assess the likelihood that a participant will act on good intentions; and decisional balance –assessment of pro and con perceptions – is monitored over time. These notions better align InfoSec research to both leading security practice and to successful comparators in healthcare. We believe IPAM can both help InfoSec research models better explain actual behavior and better inform practical security-behavior improvement initiatives.
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