Business - Theses, Dissertations, and other Required Graduate Degree Essays

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The capital gains tax “lock-in” effect and equity offerings

Author: 
Date created: 
2018-06-07
Abstract: 

The essays presented here are focused on the impact of capital gains tax “lock-in” effect on equity prices and returns before and after the equity offerings. In the first essay, I theoretically document how investor’s deferral or “lock-in” term, as developed by Klein (1998), reacts to a Seasoned Equity Offering (SEO) that increases the existing number of shares in the market. I argue with the model and some numerical examples that prices and returns around SEO, reflect tax “lock-in” effect, and this “lock-in” term decreases from pre-SEO to post-SEO. This reduction in “lock-in” should decrease the post-SEO price from pre-SEO price that helps explain the negative SEO offer day return puzzle ceteris paribus. The second essay empirically tests the effect of capital gains tax “lock-in” on the abnormal issuance day return around SEOs using an event study setting. I find that the abnormal negative offer day return on the SEO issue day is more negative for stocks with higher accrued gains prior to SEO. This larger drop in offer day closing price from pre-SEO price stems from the weakening of the reluctance to sell by the “locked-in” investors with more shares in the market due to SEO. This reduces investor’s post-SEO “deferral” or “lock-in” term. Using U.S. SEOs between 1990 to 2012, I find that SEO shares with high-accrued gains (more “locked-in”) before issuance experience more decline in prices after issuance. The third essay uses the Initial Public Offerings (IPOs) of U.S. common stocks as a platform to explain the capital gains tax “lock-in” effect. I contend that the “lock-in” effect around IPOs is induced by the U.S. tax codes that allow a preferential tax treatment for long-term (LT) holdings where long-term capital (LT) gains are taxed at a lower rate than short-term (ST) gains. Applying Klein’s (1998) “lock-in” model on IPOs and using a large sample of IPOs from 1987 to 2015, I show that for initial investors who just subscribed to the IPOs, their “lock-in” is explained by the differential ST and LT tax rates along with accrued first day gains ceteris paribus.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Peter Klein
Department: 
Beedie School of Business Faculty: Segal Graduate School
Thesis type: 
(Thesis) Ph.D.

The cultural change work of change agents without formal authority: Integrating sustainability into an organization’s culture

Author: 
Date created: 
2017-04-19
Abstract: 

Organizations are increasingly engaging in efforts to change their cultures. Reflecting this practitioner interest, scholars have explored how organizations can change their cultures, and the everyday actions of employees, to address concerns and opportunities including safety, sustainability, and diversity. Yet much research to date on the microprocesses of culture change focuses on the work of senior leaders, who tend to have the important advantage of formal authority, and on the catalyzing roles of crises and social transformations. We know relatively little about the microprocesses of cultural change, particularly when undertaken by individuals without formal authority. In my dissertation, I seek to shed light on the work undertaken by change agents to support cultural change, what I refer to as cultural change work. Drawing on recent research on work, I conceptualize cultural change work as effortful actions to integrate focal element(s) into other elements of an organization’s culture. Adopting an emergent and inductive research strategy, I study the cultural change work of a team of change agents rolling out a sustainability-oriented cultural change initiative at ManufactureCo, a North America-based global technology manufacturing company. Based on my analysis, I developed two pathways of cultural change – the cultural elevation pathway, and the cultural integration pathway – both of which are underpinned by different forms of direct cultural change work. I also identified three forms of indirect cultural change work, which refers to efforts to improve one’s capacity to undertake direct cultural change work, and unpacked the mechanisms through which each can support, and is in turn supported by, direct cultural change work. My dissertation makes three contributions to research on organizational culture and cultural change work. First, it expands our understanding of factors that constrain and enable the deployment of culture. Second, it lends insights into how change agents can improve their own capacity to undertake direct cultural change work through engaging in indirect cultural change work. Third, it expands our understanding of the nature of cultural change work by pointing to the effects of tailored versus broad work. Collectively, these contributions paint a picture of change agents as savvy navigators of culture that combine an appreciation for their organization’s culture with a diverse repertoire of cultural change work. My dissertation also makes numerous contributions to practice, providing change agents and designers of cultural change initiatives with specific guidance on how to structure their initiatives and how to successfully affect changes in meanings and actions.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Stephanie Bertels
Department: 
Beedie School of Business Faculty: Segal Graduate School
Thesis type: 
(Thesis) Ph.D.

Shaping the Framework of Capital Markets Regulation: Political Institutions and Securities Regulation in Australia and Canada

Peer reviewed: 
No, item is not peer reviewed.
Date created: 
2004-03
Abstract: 

This project examines the relationship between capital markets and political institutions. I use Australia and Canada as case studies. The main hypothesis I advance is that the framework of securities regulation must “fit” into a society’s broader institutional context. A regulatory system that is not well adapted to its institutional surroundings risks becoming implausible. I also argue that one of the key conditions for capital markets to be regulated in a centralized way is the presence of institutions that allow national policy makers to overcome resistance from regional authorities. This condition is present in Australia, but not in Canada. Other developments in Australia, such as large-scale corporate scandals, facilitated the centralization of capital markets regulation.Political institutions descended from the British Westminster Parliamentary system govern both Australia and Canada. However, the framework through which each country regulates capital markets presents a sharp contrast: while Australia has a single national regulatory agency, in Canada each province retains jurisdiction over securities regulation. Analysis of this contrast provides evidence to support this project’s hypotheses.Regulating capital markets can have important effects on a society’s financial and economic development. Political authorities, whether national or regional, are generally keen to exercise this power in order to prevent market failures that can impede economic development and frustrate the implementation of a government’s economic agenda.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Aidan Vining
Department: 
Faculty of Business Administration - Simon Fraser University
Thesis type: 
Research Project (M.B.A.)

A study of employee attitudes as they affect absenteeism and turnover in a government corporation

Peer reviewed: 
No, item is not peer reviewed.
Date created: 
1977
Document type: 
Thesis
File(s): 
Department: 
Dept. of Economics and Commerce
Thesis type: 
Res. project (M.B.A.)--Simon Fraser University.

Technologies for Exploration and the Pursuit of Innovation: Three Essays on Strategic Knowledge Creation and Schumpeterian Competition

Date created: 
2012-10-29
Abstract: 

Schumpeter introduced a new perspective on the nature of competition in market economies–one dominated by innovation and the dynamics of 'creative destruction'. In so doing, he opened up new perspectives on the nature of competition itself. At a more macro-level, the Schumpeterian perspective focuses on the role of innovation in transforming existing industries and markets and constructing new ones and shaping the competitive battles between firms. But perhaps even more importantly, where older models primarily focused on competition in product or factor markets, the Schumpeterian perspective forces consideration of the processes involved in invention, discovery, and capability creation; processes that underlie innovation and the dynamics of creative destruction. From this perspective, competition in markets is complemented by activities focused on knowledge creation and capability creation. For firms, knowledge creation becomes a strategic end unto itself; for scholars, the phenomena of knowledge creation comes center stage in the fields of strategy, entrepreneurship, and innovation. The essays presented here are focused on a set of technologies for exploration and innovation that underwrite Schumpeterian competition. The first essay proposes a theory of strategic domain pioneering that seeks to explain how organizations can develop new domains of scientific, engineering, and/or technological knowledge for strategic ends. The second essay examines how management control systems influence the construction of new organizational capabilities by influencing the outputs of an organization‟s dynamic capabilities. The third essay examines how management control systems influence the pursuit of exploration- and exploitation-related activities at the organizational level of analysis. The focus of all three is on the fundamental processes of knowledge creation that underwrite the process of innovation and capability creation at the core of Schumpeterian competition–processes at the very core of the fields of strategy, innovation, and entrepreneurship.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Ian McCarthy
Department: 
Beedie School of Business Faculty: Segal Graduate School
Thesis type: 
(Thesis) Ph.D.

Three Essays on Hedge Funds: Performance Fees, Tail Risk and Performance Diversification

Author: 
Date created: 
2012-12-03
Abstract: 

Hedge funds are favoured by pension funds, institutional investors, and high wealth investors for their flexible investment trading strategies and possible diversification benefits with existing portfolios. The following three research papers help us understand certain hedge fund characteristics by examining fund performance and by making comparisons to other types of investments. The first essay investigates the relationship between hedge fund performance fees and risk adjusted returns. The paper introduces an “effort” variable and reasons that the performance of hedge funds and the payoff of the performance fee contract are endogenously determined by the fund manager’s effort. The paper concludes that the performance fee contract aligns the interest of the fund manager and the investor, and creates a win-win risk sharing instead of a risk shifting situation. Empirically, we find that performance fees are positively associated with risk adjusted returns. The second essay examines the hedge fund tail risk in terms of the Value at Risk (VaR) and Expected Shortfall and compares these measures with those of mutual funds. It also studies the hedge fund tail risk dependence on the stock market index and VIX index as well as the phase-locking effect. The third essay studies the cross-sectional difference between hedge fund style indexes and industry portfolios. It also examines the diversification benefit of investing in a pool of hedge funds.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Peter Klein
Department: 
Business Administration: Faculty of Business Administration
Thesis type: 
(Thesis) Ph.D.

Performance-related feedback in multicultural organizations: The role of regulatory focus, feedback framing and sign

Author: 
Date created: 
2012-07-13
Abstract: 

Managers in today’s organizations face the challenge of giving appropriate performance-related feedback to employees with various cultural backgrounds. Performance feedback that motivates employees from one culture can frustrate employees from another culture. As organizations internationalize and workforces diversify, performance appraisal in a multicultural context becomes a more important yet understudied area. In this thesis, I investigate the influence of culture on performance-related feedback by examining the mechanism of regulatory focus. Regulatory focus is a person’s goal orientation and is classified as either promotion- or prevention-focused. In this thesis I develop a model of the effect of regulatory focus on performance-related feedback from both rater and ratee’s perspectives. I conducted three empirical studies to test hypotheses derived from the model. Study 1 used a scenario to examine the relationship between regulatory focus and feedback framing from the rater’s perspective in an American MBA student sample and a Chinese employee sample. The experiments that comprised Studies 2 and 3 examined the interplay between regulatory focus, feedback framing and sign from the ratee’s perspective. Both studies used undergraduate student samples. Results showed that promotion-focused people were more likely to frame feedback in terms of eagerness, whereas prevention-focused people were more likely to frame feedback in terms of vigilance. In addition, when promotion-focused people received positive-valence and eagerness-framed feedback, their future performance improved compared with when they received positive-valence and vigilance-framed, negative-valence and eagerness-framed, and negative-valence and vigilance-framed feedback. This interaction was not found among prevention-focused people. The model presented in this thesis examines the impact of culture (a country-level construct) through regulatory focus (an individual-level construct). It provides a theoretical basis for investigating intercultural interactions in the process of giving and receiving performance-related feedback. It also provides practical implications for managers involved in delivering feedback in multicultural organizations.

Document type: 
Thesis
File(s): 
Senior supervisor: 
David C. Thomas
Department: 
Business Administration: Faculty of Business Administration
Thesis type: 
(Thesis) Ph.D.

Do immigrant entrepreneurs do business with their country of origin? The effect of personality traits, perception of institutions, and network usage

Author: 
Date created: 
2012-08-21
Abstract: 

This exploratory study seeks to gain a better understanding of immigrant entrepreneurs’ decision to do business with their country of origin (COO) and their level of resource commitment in country of destination, and investigates how these decisions are affected by their personality traits, as defined by the Five Factor Inventory, perception of the institutional profile of COO and country of residence (COR), as well as their utilization of different types of networks. This research has important theoretical and practical implications. First, migrant recipient countries have begun to see the economic contributions that could be made by immigrants and their business activities. Understanding immigrants’ international business activities and the underlying reasons that fuel them will be of great importance to any migrant recipient country. Second, this dissertation sheds some light on the “why” and “how” of immigrants seeking to improve trade and investment between COO and COR. For the purpose of this research a series of interviews with immigrant entrepreneurs was conducted in 2011. Using a qualitative approach, data were analyzed and the results indicate that Extraversion, Agreeableness, Neuroticism, and Openness were related to immigrant entrepreneurs’ perception of the institutional profile of COO and/or COR, network utilization, and the choice of a destination country. The positive and negative perception of immigrant entrepreneurs about COO and COR also seemed to affect their decision to do business with a country and their choice of destination country as well as their resource commitment there. Finally, and most importantly, the findings indicated that being essentially an active networker influences immigrant entrepreneurs’ perception of institutions as well as the type of networks they used in their international business activities. In conclusion, this dissertation shows that the personality traits of immigrant entrepreneurs is important in their perception of the institutional profile of COO and COR, network utilization, as well as their international business activities. Perception of the institutional profile of COR and COO as well as immigrant entrepreneurs’ utilization of their networks also plays an essential role in their international business activities. This dissertation puts forth several recommendations for practitioners, policy makers, and future research.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Rosalie L. Tung
Department: 
Business Administration: Faculty of Business Administration
Thesis type: 
(Thesis) Ph.D.

Monet’s, Nympheas… $11 Million; Rothko’s, White… $73 Million; My Youngest Son’s, The Burial of Our Dog Rover… Priceless!: Consumer Behaviour in the Fine Art Market

Author: 
Date created: 
2012-06-26
Abstract: 

Today’s international fine art market annually accounts for billions of dollars in revenue, millions of jobs, and boasts consumers who are among the world’s wealthiest and most influential individuals. Outside of the financial impact of the industry, the fine art market is unique in that it provides value for consumers on multiple levels: social, financial, and aesthetic. Despite the complexity and enormity of the fine art market, limited research has been conducted related to consumer behaviour within it. What motivates individuals to buy fine art? How do affect tags embedded in paintings influence buyer behaviour? And how do consumers evaluate art once purchased? Two essays are presented around consumer behaviour in the fine art market. These papers build theory and extend the literature about consumer motivations in the purchase and sale of fine art, how negative affect tags influence buyer behaviour, and how intimacy can be created between consumers of fine art and the creators of it. In essay one, twenty-seven interviews were conducted with art consumers and dealers from around the globe. These interviews were analyzed inductively and coded for themes and patterns. From these interviews themes of consumer-creator connectedness, generational gifting, consumer-product connectedness, and self-concepts emerged. Stereotypes of downtrodden, even depressed artists are pervasive in society. Much of behavioural research has focused on an individual’s desire to avoid negativity, and yet there exists a paradox whereby individuals seem to seek out art laden with negative tags (such as depression of an artist, or the sadness of the subject matter). Consumers even seem to appraise artwork with negative tags as more valuable. This paradox is examined in essay two, which proposes a theory that negative affect tags (versus positive) increase consumer evaluation of fine art and that this relationship is mediated by the intimacy the consumer feels with the creator of the painting. Three experiments and one field study were conducted to examine these phenomena.

Document type: 
Thesis
File(s): 
Senior supervisor: 
Dr. Leyland Pitt
Department: 
Business Administration: Faculty of Business Administration
Thesis type: 
(Thesis) Ph.D.

Corporate social responsibility communication: firm strategies and consumer responses

Date created: 
2012-04-20
Abstract: 

While corporate social responsibility (CSR) currently occupies an important position on the corporate agenda, the relationship between CSR and financial performance is equivocal. Specifically, previous research suggests the way in which CSR activities are executed determines whether or not consumers or other stakeholders will support them. Through three papers, the research provides a nuanced understanding of both how firms communicate their CSR activities and how consumers in turn respond to different types of marketing appeals associated with CSR activities. Using both qualitative and quantitative data, the research provides key insights that help explain the equivocal nature of the business case for CSR, and provide practical recommendations for firms’ CSR activities. The first paper uses content analysis of over 4,000 magazine advertisements to examine the commitment of managers to CSR in the recent recession. The findings demonstrate that the recession dramatically changed the face of CSR communication and impacted how managers balance longer-term brand building objectives with short-term economic realities. The second paper demonstrates that, consumers’ support for retailers that engage in both CSR and Corporate Social Irresponsible (CSIR) activities is influenced by the size of the retailer through two key intervening variables: community interdependence and attributions. The paper combines data from depth consumer interviews and three experiments and finds that small retailers are perceived as more socially responsible compared to their larger counterparts while also being protected by a layer of insurance in the event of socially irresponsible behaviour. Finally, the third paper explores the effectiveness of environmentally friendly promotion that includes either self-benefit or other-benefit appeals. The paper seeks to reconcile the conflicting findings on the efficacy of each type of appeal, and finds that public accountability is a key moderator. In settings where public accountability is high, other-benefit appeals are more successful, and in private consumption settings self-benefit appeals are more successful.

Document type: 
Thesis
File(s): 
Senior supervisor: 
John Peloza
Department: 
Business Administration: Faculty of Business Administration
Thesis type: 
(Thesis) Ph.D.