Ph.D.

Does SOX 404 Have Teeth?

Posted on by Claire Hall

A regulation that is supposed to provide a warning bell and greater transparency for investors is hampered by a lack of enforcement, according to new research conducted by accounting professor David Weber.

Professor David Weber

The School of Business has awarded one of its 2015 Best Paper Awards to Weber for his research titled, “Does SOX 404 Have Teeth? Consequences of the Failure to Report Existing Internal Control Weaknesses,” co-authored with UConn doctoral student Biyu Wu and Sarah Rice of Texas A&M. It will appear in the American Accounting Association’s premier journal, The Accounting Review.

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Accounting, Finance Faculty Members Recognized for Outstanding Research

Posted on by Claire Hall

Portrait of Jose Martinez and David Weber.The School of Business has awarded its 2015 Best Paper Award to professors David Weber, from accounting, and Jose Martinez, of finance, for their exceptional research articles that will appear in esteemed academic journals.

Weber’s research paper is titled, “Does SOX 404 Have Teeth? Consequences of the Failure to Report Existing Internal Control Weaknesses.”

“Picking Winners? Investment Consultants’ Recommendations of Fund Managers,” is the title of Martinez’s work. His paper also recently received a prize from the University of Cambridge and the Commonfund Institute.

“Both papers are to appear in very prestigious journals in their respective fields, The Accounting Review and Journal of Finance,” said Sulin Ba, associate dean of academic and research support. “The selection committee was particularly impressed by the public policy implications that came out of both research projects. These implications will have an impact on our society in the years to come.”

The competition was intense this year with 10 nominations, all papers accepted in top academic journals, Ba said.

“Dr. Weber’s paper, co-authored with Ph.D. student Biyu Wu, addresses the requirement that corporations and their auditors publicly disclose internal control weaknesses, which is one of the most contentious and costly provisions of the Sarbanes-Oxley Act,” said Mohamed Hussein, accounting department head. “The study is important because it shows that the enforcement mechanisms surrounding internal control reporting are often ineffective and in some cases may even provide disincentives for compliance.”

“This paper is one of many research projects conducted by the UConn accounting faculty that addressed critical accounting and tax issues,” said Hussein, noting that UConn accounting faculty research has been cited in Congressional hearings and in the British Parliament.

Chinmoy Ghosh, department head in finance, said he is pleased with his colleague’s success.

“Within a very short period of time since arriving at UConn in August 2014, Jose has made a significant contribution in almost every aspect of the job. Acceptance of his paper by the Journal of Finance, the top journal in the discipline, brings tremendous visibility and prestige to the department and the school,” he said. “Very recently, his research has been recognized by a leading academic group in Europe. His style of teaching and knowledge drew great praise from the Risk Management students at both our Hartford and Stamford campuses.

“Jose has also shown great interest and objectivity in various academic issues currently under review by the department faculty. We are very pleased to have him as a colleague and look forward to many more productive years from him at the School of Business.”

The Best Paper Award is funded by the generous support of the Arnold M. Robin & Rochelle M. Robin Excellence Fund.

Related articles:

Professor Jose Martinez Earns Triple Recognition for Work on Dubious Investment Management

Professor David Weber Finds Lack of Enforcement Surrounds Key Provision of Sarbanes-Oxley Act

Picking Winners?

Posted on by Claire Hall

Professor Jose Martinez Earns Triple Recognition For Work on Dubious Investment Management

A four-year research project by UConn finance professor Jose Martinez found no evidence that recommendations by highly paid investment consultants to institutional investors subsequently outperformed the market.

Professor Jose Martinez

In his paper, “Picking Winners? Investment Consultants’ Recommendations of Fund Managers,” Martinez presents survey data from investment consultants with a combined share of 90 percent of the consulting market, and focuses on the recommendations consultants made for actively managed U.S. equity funds.Continue Reading

UConn Receives $435,000 Grant to Create Particle Board with Recycled Carpeting; School of Business’ MBA Students Will Perform Marketing Viability Study

Posted on by Claire Hall

Recycling symbol with a rolled carpet inside, next to bold text reading 'Carpet America Recovery Effort.'The University of Connecticut’s School of Engineering and the Institute of Materials Science have received a $435,000 research grant to develop products made from particle board containing recycled carpeting. Approximately $100,000 will be apportioned to the UConn School of Business to perform an economic and market analysis for these new products, which are targeted to the construction industry.

Richard Parness, Ph.D., a UConn faculty member in the Polymer Program of Institute of Material Sciences will develop and test the products, in conjunction with colleagues Ioulia Valla and George Bollas. Parness has tremendous expertise in this field, having patented other particle board while at UConn.

The grant is sponsored by the Carpet America Recovery Effort (CARE), whose purpose is to develop market-based solutions for recycling and reusing post-consumer carpet. In 2013, some 3.7 billion pounds of carpeting was sent to landfills. Since then, CARE members have been successful in diverting more than 3.25 billion pounds of carpeting from landfills in the U.S., according to Robert Peoples, Ph.D., and CARE executive director. Because of its complex fabric and chemical makeup, recycling of carpet is particularly complex.

The UConn School of Business marketing analysis will be carried out by graduate students in the Stamford Learning Accelerator (SLA), said Brian Brady, SLA Director and co-investigator of the grant. “MBA students will be assessing the market opportunity for these new products, and will help identify optimal target customers and develop a pricing- and distribution- strategy. We are excited about the potential of patented particle board products incorporating post-consumer carpeting as one solution in aiding the sustainability efforts of CARE.”

The research will begin this summer and will take approximately a year.

“The fact that UConn was selected for this project is exciting,” Brady said. “This grant is substantial, and represents a cross-disciplinary effort between the School of Business and the School of Engineering and is a further example of the ongoing collaboration between both. We are excited to work with CARE, Dr. Parnas and his colleagues on this project in hopes that UConn’s efforts can help play a role in improving our environment and local communities.”

UConn Marketing Professor, Colleague Find that Merchants Can Use In-Store “Showrooming’’ to Boost Online Sales

Posted on by Claire Hall

Portrait of Jane Gu.

Most consumers today split their shopping experiences between traditional brick-and-mortar stores and internet purchases. But if you believe that traditional, in-store browsing is facing extinction, think again.

In fact, it is often a trip to the mall or shopping center that gives consumers the confidence they need to buy similar, or more upscale, items online, according to research conducted by UConn Assistant Professor Jane Gu and her colleague, Giri Tayi, from the State University of New York at Albany.Continue Reading

‘The Doors are Open to Anyone with Ideas’ University Leaders Say that Student Entrepreneurship is on the Fast Track

Posted on by Claire Hall

When Management Professor Rich Dino started a course that helps non-business majors write a business plan, it filled almost instantly. He scheduled two more classes, and the same thing happened.

“This semester I have students majoring in everything from physics to music, and their different views enhance the class,” Dino said. “The doors are open to anyone with ideas.”Continue Reading

Invitation to Apply for the UConn McNair Fellows Program

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The McNair Fellows Program for Rising Sophomores and Rising Juniors

The McNair Scholars Program prepares talented, highly motivated UConn undergraduate students for doctoral studies in science, technology, engineering, and math (STEM) disciplines. As part of UConn’s TRIO programs, McNair is open to low-income, first-generation college students or those from populations underrepresented in STEM graduate fields who are seeking to pursue a Ph.D.

Students who are currently freshmen (rising sophomores) or sophomores (rising juniors) can apply for this two week residency program, which will begin immediately after the end of the spring semester. Students will gain research experience while learning about:

  • STEM Ph.D. career avenues
  • Undergraduate research opportunities
  • The more research-intensive McNair Scholars Program

McNair Fellows reside on the Storrs campus, shadow STEM researchers, and engage in academic writing and presentation exercises.

For more information, please contact Dr. Renée Gilberti at renee.gilberti@uconn.edu. Application materials are available now.  Students at the Storrs campus and regional campuses are encouraged to apply.

To learn more please visit the McNair Fellows Program and the McNair Scholars Program.

Report Finds “Conflicts of Interest” Have No Effect on FDA Advisory Committee Votes

Posted on by Melissa Ferrigno

Policy and Medicine – Stringent conflicts-of-interest policies keep many experts off of FDA advisory committees. A new study suggests that the fear of pro-industry bias underlying these policies may be misplaced, and also serves to keep highly qualified candidates off of these committees.

James C. Cooper, director of research and policy at the Law and Economics Center at George Mason Law School and Joseph Golec, professor of Finance of the University of Connecticut, who conducted the study, sought to compare conflicted members’ voting patterns with objective criteria. They found that decisions by advisory committees with conflicted members to recommend drugs were more likely to be consistent with both the ultimate FDA decision as well as stock market predictions than non-conflicted advisory committees and members.