National Security Law Deters Foreign Investment in the U.S.

Wed, Dec 16, 2020

SMU Cox Finance Professor Darius Miller examines the effects of the Foreign Investment and National Security Act on shareholder wealth and the U.S. economy.

Visual Finance 101: Red Color Influences Investor Behavior

Wed, Dec 9, 2020

New research by SMU Cox marketing professor Milica Mormann and coauthors Bazley and Cronqvist reveals how the visual presentation of financial information impacts important financial decisions.

SMU Cox’s Newest Professor Zhen Zhang Goes Beyond the Numbers

Thu, Nov 12, 2020

Meet professor Zhen Zhang, SMU Cox School of Business’ newest faculty addition. Zhang brings his substantive expertise in leadership and analytical methods to the School.

Why Most Startups Fail — and the Skills Needed for Their Success

Tue, Jul 21, 2020

Bhaskaran has studied what makes startups successful, with an emphasis on how entrepreneurs find a balance between their businesses’ short-term survival and their long-term profitability. It’s a trade-off at the heart of a research paper he co-authored in 2019 entitled, “Sequential Product Development and Introduction by Cash-Constrained Start-Ups.” We spoke with him about why most startups fail and the skills needed to facilitate their success.

The Benefits of Telemedicine as a Form of Continuity of Care

Wed, Jul 8, 2020

Vishal Ahuja's empirical study examined the impact of maintaining continuity of care in a primary care setting. For Ahuja, the research was personal, and a goal was set: Capture the value.

The Scientific Pros and Cons of Virtual Meetings — and How They Affect Business

Wed, Jun 17, 2020

The COVID-19 stay-at-home orders have created a dependence on the use of videoconference platforms and telepresence. We spoke to Professor Amit Basu, who conducted an empirical study on the effectiveness of such technologies, for his insights.

Maintaining Continuity in Challenging Times

Mon, Apr 13, 2020

In his paper “An Empirical Study of the Effectiveness of Telepresence as a Business Meeting Mode,” Information Technology and Management Journal, 2016, Professor Amit Basu reported on a large-scale empirical study of the use of various virtual meeting technologies in business meetings.

Larger Banks Lead to Less Economic Mobility

Fri, Jan 31, 2020

Over the last several decades, consolidation in the banking industry has created larger banks, according to new research by SMU Cox Finance Professor Erik Mayer, leading to some negative effects for low-income households.

Accounting in the Age of Knowledge: Making Intangibles Tangible

Wed, Dec 18, 2019

In ambitious research, SMU Cox Accounting Professor Sean Wang and his co-authors develop a new way to measure intangible assets that has been lacking for decades.

Digital Piracy in the Age of Knowledge: Innovation the Key

Tue, Dec 10, 2019

In a new study, strategy professors Julian Kolev and Wendy Bradley analyze the link between digital piracy and innovation for technology firms in the software business.

In Broad Daylight: Where the Smart Money Shorts Stocks

Mon, Nov 4, 2019

Mystery and speculation shrouds short sellers, also known as the “smart money.” Who are they? Where do they trade and why? In new research, Finance Professor Mehrdad Samadi of SMU Cox and co-authors provide the first evidence of short sellers, or informed traders, trading venue of choice.

Internet Learning: Are We Outsourcing Our Memory?

Tue, Oct 1, 2019

Vast amounts of knowledge are at our fingertips owing to the Internet. As we continually immerse ourselves in the online world of information, what are the cognitive effects of it? This fundamental question is on the mind of Marketing Professor Matthew Fisher of SMU Cox in new research about Internet learning and its consequences. According to Fisher, little research about the subject has occurred to date in understanding this phenomenon.

Future of Online Markets: Increasing Mobile Channel Differs From PC Channel

Tue, Sep 3, 2019

The mobile channel is poised to be the future of online markets, according to ITOM Professor Tom Tan of SMU Cox. And, retail operations managers should not blindly treat the mobile channel like the conventional PC channel. In a working paper, Tan and co-author Nitish Jain make important contributions to innovative retail practices and operational decisions.

Cross-border Investing: Increasingly Important for Start-Ups and Growth

Wed, Jul 24, 2019

Cross-border venture capital investments play an important role in the scaling up of high growth companies, according to Strategy Professor Wendy Bradley. Foreign capital, expertise, and the networks that accompany cross-border investments are welcome by start-up ventures. However, a concern is that they transfer the majority of economic activity to the investor country. In new research, Bradley of SMU Cox and her co-authors examine cross-border venture capital (VC) investments and its implications for public policy. “There is a need for cross-border investments and partnerships for the advancement of science and economic growth,” says Bradley.

Informed Investors Crucial for Shareholder Democracy

Thu, Jun 27, 2019

Firms with strong corporate governance are like democracies, according to Finance Professor Nickolay Gantchev. Through their proposals and votes, shareholders can determine the broad direction of a company. In new research, Nickolay Gantchev of SMU Cox and Mariassunta Giannetti study the effectiveness of this low-cost form of shareholder activism. “Like a democracy, if you have more informed shareholders, when they vote, they can figure out which are good proposals, and prevent the bad ones from passing,” says Gantchev.

SMU Cox ITOM Supply-Chain and Operations Management Brochure

Fri, Mar 29, 2019

SMU Cox launches Supply-Chain and Operations Management concentration for MBA students.

SMU Cox 2019 Finance Department Brochure

Wed, Feb 13, 2019

As part of an ongoing series designed to promote our academic departments, publications like the one attached will highlight our programs’ star students, faculty, alumni, research and supporters.

How to Navigate Today’s Multi-Teaming Organization

Mon, Jan 28, 2019

Ambiguous Texas Shoplifting Laws May Be Applied Inconsistently By Police

Fri, Dec 7, 2018

For more than three years, ambiguous wording in the Texas Penal Code led to inconsistent treatment of black and white arrestees for low-value shoplifting, according to a new study by a professor at Southern Methodist University.

Shoppers Changed Up Retail Store Choice in Hard Times

Mon, Dec 3, 2018

SMU Cox Marketing Professor Chaoqun Chen analyzes how consumers shop around various retail formats and how their behavior changed during the Great Recession. Her findings uncover truths about how consumers from different income levels adjusted to a new normal in their weekly treks.

Insurers' Product Evolutions a Source of Systemic Risk

Thu, Nov 8, 2018

Just when “simple" worries about the economy and the elections were on our minds, a new source of risk to the financial system emerges…

Solving the Billion Dollar Challenge of High Drug Development Costs

Mon, Oct 8, 2018

What if clinical trials could be conducted faster, required fewer patients, cost less, and led to improved health? "Our approach is good for patients, companies, and the public health at large, which would come from needed drugs being on the market sooner," states Vishal Ahuja, ITOM professor at SMU Cox.

Financial Protectionism Deters Investment and Costs Shareholders

Mon, Aug 27, 2018

At a time when capital has never been more mobile and available, financial protectionism is on the rise. The costs of these economic nationalistic policies are little known however. In new research, SMU Cox Finance Professor Miller and co-authors reveal the important consequences of government-related incursions in deals between foreign and domestic companies and the resulting decline in shareholder value for a wide range of industries.

The Economics of Attention: A Valuable Commodity That's Hard to Measure

Tue, May 1, 2018

The new scarce resource is attention, notes Marketing Professor Milica Mormann of SMU Cox. "We live in an attention economy, and our attention is limited." Through a multi-disciplinary approach, Mormann and co-author Cary Frydman reveal how attention is operating to influence economic choices in their novel research. "Attention is the step that leads a manager or consumer toward an action," she states. "We know we have about eight seconds to deliver a message on social media, in a TV ad, or for an investing decision or health care choice. But we do not know exactly how attention operates, in spite of the industry performing studies to gauge attention."

Hedge Fund Activism Shows Firms a Better Path

Mon, Apr 2, 2018

When it comes to corporate governance, hedge funds are the new sheriffs in town. That’s the take-away of “Do Activists Turn Bad Bidders into Good Acquirers?” Associate Professor of Finance Nickolay Gantchev and his co-authors reveal new insights about the mergers and acquisitions strategy of firms that shareholder activists target.

CEOs "Style" of Information Processing Reflected in Growth Strategies

Mon, Dec 4, 2017

Getting inside the mind of the chief executive officer is a difficult research avenue. Knowledge about how CEOs process information, their cognitive style, has been relatively sparse. Strategy Professor Daniel Zyung of SMU Cox and co-authors unpack the cognitive mechanisms of CEOs in new research — and reveal how and why it matters. "Basically, this is a study about CEOs’ information processing style," Zyung says, "with many important implications, including their firm’s growth strategies."

U.S. Shale Oil is Plentiful and Competitive, New Research Suggests

Mon, Oct 30, 2017

The emergence of U.S. shale oil has expanded the global supply of oil. New research notes that the long-run impact of shale oil will depend on how much can be produced and how much it will cost. Few have good answers. In recent research, finance professor and energy expert James Smith of SMU Cox with co-author Thomas Lee determine what portion of known shale resources are economically viable at various price points and how many wells are likely to be drilled. So far, only a small portion of drilling sites have factored into the shale oil boom, according to Smith, and we have only depleted a fraction of U.S. shale resources.

Gatekeepers Hold Key to Lower Costs in Health Care

Tue, Oct 24, 2017

The U.S. healthcare system is the most expensive system in the world. Identifying ways to lower costs and have better health outcomes is a primary goal for health care managers and providers, policymakers and consumers. In new research, ITOM Professor Vishal Ahuja of SMU Cox and co-authors show that better continuity of care lowers costs and wasted effort, reduces time to see specialists, and produces significant savings in hospital system resources. They identify how "gatekeepers" are key to a more optimal and healthier system.

Saving Retirement: Government Subsidy to Investment Industry Shortchanges Savers, Taxpayers

Wed, Oct 18, 2017

As policymakers around the globe continue to debate options to incentivize retirement savings, new research uncovers some game-changing facts. The two main competing options consist of traditional tax-deferred savings vehicles like 401(k)s and IRAs, in which savers contribute pretax money and pay tax on withdrawals, or Roth-type plans, whereby savers pay taxes first and withdraw funds tax-free upon retirement. Which type of scheme is better depends on which side of the table one sits. In their paper, SMU Cox Finance Professor Mattia Landoni and co-author Zeldes discover that under a Roth-type regimen, government fares better, largely because of the investment fees that government implicitly pays in traditional tax-deferred accoun

Avoiding the Next Liquidity Crunch: Bond Mutual Funds May Save the Day

Thu, Sep 7, 2017

Regulators of financial markets, including the Federal Reserve Bank and the Securities and Exchange Commission, worry about a liquidity crisis in the corporate bond market. The financial market crisis of 2008-2009 involved domino-like liquidity shocks and regulators wish to steer clear of them if they can help it. In new research, SMU Cox Finance Professors Venkataraman and Jotikasthira show that some bond mutual funds are filling the role of a liquidity supplier, alongside a decline in dealer participation in market-making activities.

Is Crowdsourced Investment Research Here to Stay?

Fri, Jun 2, 2017

Today, many crowd-sourced investment research venues and platforms co-exist on the Internet, with new competitors continuing to arrive on the scene. These new entrants are becoming a source of information for investors and capital markets that rival the incumbent sell-side analyst research model. Technological innovation is making it so, along with smart entrepreneurs identifying market opportunities. In new research, SMU Cox Accounting Professor Stanimir Markov and co-authors examine how this increased competition is shaking up the status quo.

who is moving modern markets

Mon, Apr 3, 2017

The findings will help inform policymakers’ rulemaking to prevent future crashes and better design market structures.

Big Data: Using Data Analytics to Enhance Drug Safety

Tue, Sep 29, 2015

The use of big data in the health care industry, the largest sector of the economy, offers many benefits for the overall economy, businesses, and the health and well-being of people. In a first-of-its-kind study, SMU Cox ITOM Professor Vishal Ahuja and co-authors show how the use of data can validate life-changing health care findings. Additionally, this new approach using big data demonstrates how regulatory agencies can advance their governance missions by monitoring public safety with more robust, real-time analytical methods.

Analyst/Investor Days Recognized as Important Corporate Communications

Thu, Sep 24, 2015

With literally troves of corporate information available online for analysts to sift through, how can firms differentiate their message and convey complex, meaningful information to those who need it? The increasing number of analyst days, a long-form presentation by publicly-listed companies, indicate a trend toward a greater demand for face time with management. In novel research, Accounting Professor Stan Markov of SMU Cox and co-author Marcus Kirk study analyst/investor days as a disclosure medium that large firms with complex operations use to deepen stakeholders' understanding about the firm's outlook and valuation.

Deal or No Deal: Are People Hard-Wired to Agree?

Mon, Aug 31, 2015

Are people hard-wired to reach agreement, even when a deal is less than optimal or below a bottom line? According to new research by Management Professor Robin Pinkley and co-authors, as if force of habit, when faced with an offer people are reaching agreements and sealing deals when not agreeing might be a more rational choice. This phenomenon is based on the tendency of people being averse to impasse and attracted to agreement.

Rational Investment Decisions: Shale Gas Not Over-Drilled

Mon, Aug 17, 2015

The oil and gas industry has received a bad wrap about drilling for shale gas. Since late 2008, when prices collapsed owing to demand destruction from the economic crisis and an abundance of supply, prices of natural gas have remained low. From an all-time high of $14 per mcf (thousand cubic foot) they have fallen to under $3 today. Critics have charged that too many gas wells have been drilled given the low prices, and that the gas boom is unsustainable. SMU Cox Finance Professor James Smith's new research says the facts do not support that claim.

Outdated Convention Distorts Oil and Gas Firms' Bottom Lines: Valuing Barrels Better

Fri, Jul 31, 2015

The conventional method used by the oil and gas industry to report on upstream operations and results distorts profitability and valuations. Industry practice is to use "barrels of oil equivalent" or BOE— a measure that combines oil and gas volumes based on thermal parity, or the energy content of the source. Research by Finance Professor James Smith, the Maguire Chair of Oil and Gas Management, shows why and how the BOE convention has overstated the cost of adding reserves, the principal asset held by these firms. This comes at a time when the industry can scarcely afford miscalculations to their detriment.

Why Do Some Firms Announce Stock Buybacks But Not Follow Through?

Wed, Jul 1, 2015

Companies buy back stocks for a variety of reasons. One rationale is a key motive for a new study: Managers of undervalued firms use stock repurchases as a mechanism to signal firm value. Curiously, Finance Professor Stacey Jacobsen of SMU Cox and co-author Utpal Bhattacharya find a large number of firms announce share repurchases but do not actually follow through with the buyback. The stock market tends to view repurchase announcements as good news, according to its reaction.

Shareholder Voting and Activism Influences Foreign Firms' Governance

Thu, Oct 2, 2014

In the U.S., shareholder voting and activism is increasingly used to influence firm policy. New research by SMU Cox Finance Chair Darius Miller and co-authors suggests that shareholder voting can be an effective governance mechanism in countries outside the U.S. "This is important," says Miller, "since in many countries outside the U.S., the need for governance is greatest." The authors set out to test shareholder activism in global markets in a first-of-its-kind, large-scale study. Prior to this paper, there was not any evidence on whether shareholder voting in other countries was effective or not.