Research Briefs

A look at some results of faculty studies on business topics

“Cash Flow Growth and Stock Returns”

Journal of Financial Research

BENJAMIN JANSEN, Assistant Professor of Finance

Jansen developed and tested a model showing cash flow growth (CFG) is positively associated with stock returns. Furthermore, additional information is reflected through CFG relative to cash flow levels, profits, and dividends. Evidence suggests that operating activities explain more than investment activities of the firm. Investors can earn significant profits by focusing on CFG. $1,000 invested in 1988 across the whole stock market would grow to $9,845 in 2019. However, $1,000 invested in the highest 20% of CFG stocks grows to $42,290, and the portfolio invested in the lowest 20% of CFG stocks only grows to $2,199.

“Teaching Entrepreneurship in China: Business Simulation & Games—A New Theoretical Model of Experiential Learning"

Organizational Science: A Global Perspective

THOMAS LI-PING TANG, Professor of Management

In conjunction with W. Fan, Tang explores business education pedagogy through business simulation and games (S&G). Using a qualitative approach, they conducted semi-structured interviews using WeChat, made field observations in the classroom, and identified six core themes in teaching business S&G. Their new theoretical model contains the following components: causes of participation, participation and engagement, intrinsic and extrinsic motivational stimulus, psychological process, learning behaviors, and learning outcomes. These components lead to learning outcomes: intellectual human capital; knowledge, skill, and ability (KSA); real-world experience/knowledge transfer; team building/social capital; and the entrepreneurial mindset. Their research offers practical implications for teaching entrepreneurship using business simulation and games, experiential learning, in particular, and organizational science.

“The International Spillover Effects of US Trade Policy Uncertainty“

Economics Letters

WISARUT SUWANPRASERT, Assistant Professor of Economics

Suwanprasert examines the international spillover effects on the exports from 30 of the United States’ major trading partners upon the removal of U.S. trade policy uncertainty, when China joined the WTO in 2001. The empirical analysis discovers that removing U.S. trade policy uncertainty has sizable positive spillover effects on Canada, Mexico, Brazil, Belgium, France, Germany, the Netherlands, Norway, Spain, Sweden, Switzerland, the United Kingdom, Hong Kong, India, and New Zealand. The countries that experience negative spillover effects are Austria, Japan, and Taiwan.

“The Drivers and Effects of Burnout Within an Information Technology Work Context: A Job Demands-Resources Framework"

Information Technology and People

SAM ZAZA, Assistant Professor of Information Systems and Analytics

Attracting and retaining information technology (IT) professionals is still a challenge. Zaza’s study looked at job demands such as boundary-spanning activities and continuous learning, along with job resources like supervisor support and mentoring as antecedents to burnout. Burnout includes work exhaustion, cynicism, and professional inefficacy. In addition, this study investigates the impact of burnout on IT professionals’ turnover intention (leaving the organization) and turn-away intention (leaving the IT industry). It found that supervisor support is a critical job resource for dealing with burnout, while professional inefficacy is the most impactful on turnover intention.

Tennessee Consumer Outlook Index, 2022

Office of Consumer Research

TIM GRAEFF, Professor of Marketing

Outlook among Tennessee consumers has declined considerably since December 2021. This was due to deteriorating views of the current economy, more pessimistic expectations for the future of the economy, and waning beliefs that now is a good time to make large purchases. Worries and frustrations continue as consumers remain concerned about higher inflation and increasing gas prices. Recent declines in the stock market have led to growing worries about the future value of savings and investments. Current events in Ukraine have caused consumers to become more concerned about potential military conflicts with other nations.

“An Outdated Sterotype? Accounting Compared with Competing Professions”

CPA Journal

AUDREY SCARLATA, Associate Professor of Accounting

SARAH GARVEN, Assistant Professor of Accounting

Scarlata and Garven explore the popular accountant stereotype that portrays a person who lacks creativity, sitting alone crunching numbers. Those within the profession know that this portrayal is inaccurate and that the accounting profession encompasses a wide variety of skills, both technical and personal. What does the evolving face of accounting look like today, and how can we spread the right message about our profession? This article discusses the results and implications of a recently published academic study that compared leading career models’ portrayal of accounting to competing professions and provided evidence concerning the required level of skills needed in contemporary accounting work.