Business & Economics, 2011
  • Business & Economics, 2011

     

     

    The Economics of Big Government
    Jarred Blumensheid
    Faculty Mentor: Saurav Roychoudhury

    A common trend in the United States is the increasing role the government plays in the economy. This empirical research paper examines the relationship of state unemployment and the size of the corresponding state government. The purpose of this study is to determine if larger state governments are correlated with state unemployment rates. I examine this probable relationship by using regression analysis as found in introductory econometrics (Wooldridge, 2009). Some of the variables I examine are government expenditures, minimum wage, education, tax rates, state population, the number of firms in each state, and state CPI.

     

     

    The Weather Factor and Suicide Rates
    Jarred Blumensheid
    Faculty Mentor: Saurav Roychoudhury

    Typing the word suicide into a search engine will bring up a variety of articles that identify warning signs and other informational materials about the causes of suicide. Suicide affects every generation in every nation. We have all read about studies that blame suicide on the level of income or bad relationships. In recent years, Seasonal Affective Disorder (SAD) has emerged as a possible cause of depression in individuals (Mayo Clinic, 2009). SAD may be linked to cloudy or rainy days. In this study, I use empirical analysis to determine if suicide rates are impacted by the weather. I also examine demographics such as age, location, foreclosures and other factors and their impact on suicide.

     

     

    Accounting Internship Experience
    John Boghossian, Christina Chacko, Bethany Cromley, Emerson Rhoad, Taryn Winchell
    Faculty Mentor: Steve Mellum

    The accounting internship program is a professional field experience available to senior accounting majors in the School of Management and Leadership. For a period of ten or eleven weeks we took on full-time entry-level employment responsibilities. These responsibilities were designed to introduce us to an accounting organization’s day-to-day operations and required us to apply accounting theory to practice. As a result of this program we were able to gain valuable work experience, guidance and direction for career planning, develop strong work habits, and create a portfolio displaying our professional accomplishments. The community benefits from this program as well. Past internship sponsors have reported how valuable the program has been to their organization and the support of their clients. We describe the entire internship process that we experienced, from the interview process to the exit interview on our last day on the job. The organizations we worked with during our internship experience were local and national Certified Public Accounting firms and private industry.

     

     

    The Long-Term Effects of Tax Incentives in Job Creation
    Jed Cooper
    Faculty Mentors: Saurav Roychoudhury, Suzanne Marilley

    The Ohio Job Creation Tax Credit has become a popular economic development incentive used by the State of Ohio since 1993. In 2002 Gabe and Kraybill analyzed the impact of the projects receiving an Ohio Job Creation Tax Credit from 1993-1995. Gabe and Kraybill found that that the tax credit had no impact on long term employment growth; however, their data focused solely on projects approved in 1993-1995. Using data obtained from the Ohio Department of Development this study sought to analyze the impact of the Ohio Job Creation Tax Credit from 1993 to 2009. Specifically, this study primarily uses regression analysis to look at the long term effects of tax credits on job creation using initial estimated value of the tax credit, economic change, time horizon, and original job commitment. In addition the study looks at root causes for overstatement and total impact at a project site. Preliminary results show that the Ohio Job Creation Tax has minimal impact on long term job creation.

     

     

    Accounting Internship Experience
    Rebecca Facer, Lydia Foss, Sharron Ogutu, Trever Plant, John Purdum
    Faculty Mentor: Steve Mellum

    The accounting internship program is a professional field experience available to senior accounting majors in the School of Management and Leadership. Past internship sponsors have reported how valuable the program has been for their organizations and its role in providing support for respective clients. A case study design is used to assess leaning outcomes for the field experience. For a period of ten or eleven weeks we took on full-time entry-level employment responsibilities. These responsibilities were designed to introduce us to an accounting organization’s day-to-day operations and required us to apply accounting theory to practice. The organizations we worked with during the internship were local and national Certified Public Accounting firms and private industry. Outcomes of this program include: (1) valuable work experience, (2) guidance and direction for career planning, (3) enhanced development of strong work habits, and (3) creation of a portfolio to display professional accomplishments. We describe the entire internship process from the interview process to the exit interview on our last day on the job.

     

     

    Profitability amidst Piracy in the Music Industry
    Michelle Klein
    Faculty Mentors: Andrea Thomas, Saurav Roychoudhury, Kit Nienkirchen

    If the market for stealing music has changed its profitability strategy, how is the current industry surviving? A music company faces the daunting fact that 95% of all music downloaded online is illegal; the music is taken without rights from the holders of the property. New markets are taken into consideration because people disregard the impact of stealing music. The market for selling music has shifted from record stores to online to reaching the customer in video games like Rock Band. I conducted this project by interviewing faculty and professionals. I compared facts and figures from information on changes and improvements within annual reports and within recent legislative actions that have made an impression upon profitability. From a legal standpoint, until stricter codes of conduct impact the industry and new markets emerge, piracy will continue to exist, yet the music industry must continue to find new ways to make a profit. The focus of this study was to understand how a music company like Warner Music Group manages to find new markets for profit amidst a climate and culture that accepts piracy.

     

     

    The Role of Humanism in Promoting Responsible Global Sustainability
    Haleigh Lanham
    Faculty Mentor: Barbara Barresi

    There is little consensus on what sustainable means, and what exactly needs to be sustained, both within and outside the sphere of business. The current approach toward sustainability is failing, both for business practices and humanity itself. What is needed is a philosophy that all businesses can follow, no matter their purpose or geography. The most likely way to achieve this is through the United Nations, whose power and scope is increasing due to the rise of interdependence in our world. Instead of many different treaties, documents, and conferences guiding nations’ environmental ethics, only one document is needed. By applying the humanistic approach provided by the United Nation’s Global Compact, businesses could adopt a higher level of concern and understanding of their surroundings and people, which would foster a more realistic and responsible sustainability – and profit as well. In conclusion, through a case analysis and comparison of Levi Strauss before the United Nations Global Compact was in place until now, I show how business founded on a humanistic perspective could foster a more realistic concept of sustainability worldwide.

     

     

    Accounting Internship Experience
    Zachary Link, Michael Pollock, Chris Shumaker, Daniel Steele, Scott Steineman
    Faculty Mentor: Steve Mellum

    The accounting internship program is a professional field experience available to senior accounting majors in the School of Management and Leadership. For a period of ten or eleven weeks we took on full-time, entry-level employment responsibilities. The organizations we worked with during our internship experience were local and national Certified Public Accounting firms and private industry. Our responsibilities were designed to introduce us to an accounting organization’s day-to-day operations and required us to apply accounting theory to practice. As a result of this program we were able to gain valuable work experience, guidance and direction for career planning, develop strong work habits, and create a portfolio displaying our professional accomplishments. The community benefits from this program as well. Past internship sponsors have reported how valuable the program has been to their organization and the support of their clients. We will describe the entire internship process that we experienced, from the interview process to the exit interview on our last day on the job.

     

     

    A Fifth Risk Factor: International Exposure
    Sean Malone
    Faculty Mentor: Saurav Roychoudhury

    Eugene Fama and Kenneth French (1992, 1993) suggested a three-factor model for estimating risk-adjusted expected returns. Fama and French added an two risk factors, firm size and book-to-market to the CAPM model. Later on, Carhart (1997) added a momentum factor to the model. This paper proposes that a fifth systematic risk factor can be added to this model. The proposed factor is international exposure (IXP). The IXP coefficients are created using similar methods that Fama and French used to create SMB and HML coefficients. A multivariate regression analysis is then performed to test whether or not the new risk factor is appropriate and statistically significant. If this new factor is appropriate, it would provide a more complete multifactor model for estimating risk-adjusted expected returns.

     

     

    The Moor Consultants Program: Improving the Community by Helping Social Enterprises
    Emily Morrison, Jennifer Martin
    Faculty Mentors: Lynn Dailey, Dave Schwantes

    The Moor Consultants Program is an internship program for high-achieving business students. Each semester a student is chosen to assist a local social enterprise with furthering its social mission by improving its business functions. The internship is sponsored by the George Moor Chair in Business and Economics. In Fall 2010, Emily Morrison worked with Freshbox Catering, which supports the local homeless community. In Spring 2011, Jennifer Martin worked with the Bexley Natural Market, which is a food cooperative that supports community nutrition. These experiences, which allow Capital's business students to apply their business knowledge to the real world while benefiting the local community, will be discussed.

     

     

    Matching Supply and Demand for a Wine Production Company
    Katelyn Mutchler, Alexandra Wovna
    Faculty Mentor: M. Ali Ülkü

    Producing wine can be quite involved, especially considering the uncertainties inherent to weather conditions in the harvesting season and demand requirements. In this research, we develop a supply-chain perspective for wine production operations. In our analysis we use Operations Management techniques such as process flow charting, identification of bottlenecks in the system, and process optimization. We then propose alternative actions to improve the overall effectiveness and efficiency of the activities in order to better match supply and demand in the manufacturing and distribution of specialty wines. By employing prescriptive mathematical models, we develop analytical frameworks. We support our findings with field data and offer managerial insights and practical implementations.

     

     

    Factors of College Academic Performance
    Richard Myers, Jed Cooper
    Faculty Mentor: Saurav Roychoudhury

    The purpose of our study is to assess the degree to which ACT scores, high-school GPA, gender, being a resident student, membership in a Greek organization, being on a varsity sports team or using a notebook explain the variation in a college student's performance or predict success in college. Data were collected from traditional undergraduate students currently enrolled at Capital University. Our study is based on an example in our Econometrics text book (Wooldridge, 2009) which used data collected in 1995 from a large public university. Our study used 2011 data and this helped us to gain more up to date data on the topic and either support or disagree with the results from the 1995 study. This study also suggests how students can hope to improve their college GPAs.

     

     

    Operations Management at Work: Optimizing Sales of Perishable Goods
    Oleksiy Stepanov
    Faculty Mentor: M. Ali Ülkü

    Retailers can implement dynamic (i.e., time-dependent) pricing techniques in order to maximize their revenues, while taking advantage of changes in consumer demand. Because many retail goods fall into perishable goods category, firms need to clear their stock before the end of the season, or else risk a significant drop in the value of their inventory. Thus, retailers are forced to vary the prices so as to synchronize them with diminishing consumer valuation of the product. This form of price discrimination captures a large part of the consumer surplus, resulting in maximized revenue. In this research, we investigated the strategies of several different retailers as to how they formulate and adjust the prices of various perishable goods such as designer clothes and electronics, over the finite selling season. We examined consumer behavior by analyzing observed income and substitution effects and by utilizing various forms of demand functions. Finally we developed managerial insights drawing on our structural and empirical findings.

     

     

    Testing the Relationship between GDP and Unemployment
    Oleksiy Stepanov
    Faculty Mentor: Saurav Roychoudhury

    Unemployment is considered to be a significant factor that can have a detrimental effect on the country's economic welfare. Therefore, politicians who run for office often vow to decrease the unemployment with the connotation that it will stimulate the economy and alleviate people's financial troubles. This study focuses on the relationship between unemployment and real gross domestic product of Canada. Okun's Law states that if unemployment increases by 1%, gross domestic product will most likely decrease by nearly two. This analysis puts Okun's Law to the test, using the appropriate economic data to establish the connection between unemployment and the real gross domestic product, controlling the factors that can affect both.

     

     

    Matching Supply and Demand for a Wine Production Company
    Alexandra Wovna, Katelyn Mutchler
    Faculty Mentor: M. Ali Ülkü

    Producing wine can be quite involved, especially considering the uncertainties inherent to weather conditions in the harvesting season and demand requirements. In this research, we developed a supply-chain perspective for wine production operations. In our analysis we used Operations Management techniques such as process flow charting, identification of bottlenecks in the system, and process optimization. We then proposed alternative actions to improve the overall effectiveness and efficiencies of the activities in order to better match supply and demand in the manufacturing and distribution of specialty wines. By employing prescriptive mathematical models, we developed analytical frameworks. We support our findings with field-data and offer managerial insights along with practical implementations.