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Company X is one of the world's largest manufacturer of semiconductors. The company relies on various suppliers in the U.S. and around the globe for its manufacturing process. The financial health of these suppliers is vital to the continuation of Company X's business without any material interruption. Therefore, it is

Company X is one of the world's largest manufacturer of semiconductors. The company relies on various suppliers in the U.S. and around the globe for its manufacturing process. The financial health of these suppliers is vital to the continuation of Company X's business without any material interruption. Therefore, it is in Company X's interest to monitor its supplier's financial performance. Company X has a supplier financial health model currently in use. Having been developed prior to watershed events like the Great Recession, the current model may not reflect the significant changes in the economic environment due to these events. Company X wants to know if there is a more accurate model for evaluating supplier health that better indicates business risk. The scope of this project will be limited to a sample of 24 suppliers representative of Company X's supplier base that are public companies. While Company X's suppliers consist of both private and public companies, the used of exclusively public companies ensures that we will have sufficient and appropriate data for the necessary analysis. The goal of this project is to discover if there is a more accurate model for evaluating the financial health of publicly traded suppliers that better indicates business risk. Analyzing this problem will require a comprehensive understanding of various financial health models available and their components. The team will study best practice and academia. This comprehension will allow us to customize a model by incorporating metrics that allows greater accuracy in evaluating supplier financial health in accordance with Company X's values.
ContributorsLi, Tong (Co-author) / Gonzalez, Alexandra (Co-author) / Park, Zoon Beom (Co-author) / Vogelsang, Meridith (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Mike (Committee member) / Department of Finance (Contributor) / Department of Information Systems (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
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Description
Financial statements are one of the most important, if not the most important, documents for investors. These statements are prepared quarterly and yearly by the company accounting department, and are then audited in detail by a large external accounting firm. Investors use these documents to determine the value of the

Financial statements are one of the most important, if not the most important, documents for investors. These statements are prepared quarterly and yearly by the company accounting department, and are then audited in detail by a large external accounting firm. Investors use these documents to determine the value of the company, and trust that the company was truthful in its statements, and the auditing firm correctly audited the company's financial statements for any mistakes in their books and balances. Mistakes on a company's financial statements can be costly. However, financial fraud on the statements can be outright disastrous. Penalties for accounting fraud can include individual lifetime prison sentences, as well as company fines for billions of dollars. As students in the accounting major, it is our responsibility to ensure that financial statements are accurate and truthful to protect ourselves, other stakeholders, and the companies we work for. This ethics game takes the stories of Enron, WorldCom, and Lehman Brothers and uses them to help students identify financial fraud and how it can be prevented, as well as the consequences behind unethical decisions in financial reporting. The Enron scandal involved CEO Kenneth Lay and his predecessor Jeffery Skilling hiding losses in their financial statements with the help of their auditing firm, Arthur Andersen. Enron collapsed in 2002, and Lay was sentenced to 45 years in prison with his conspirator Skilling sentenced to 24 years in prison. In the WorldCom scandal, CEO Bernard "Bernie" Ebbers booked line costs as capital expenses (overstating WorldCom's assets), and created fraudulent accounts to inflate revenue and WorldCom's profit. Ebbers was sentenced to 25 years in prison and lost his title as WorldCom's Chief Executive Officer. Lehman Brothers took advantage of a loophole in accounting procedure Repo 105, that let the firm hide $50 billion in profits. No one at Lehman Brothers was sentenced to jail since the transaction was technically considered legal, but Lehman was the largest investment bank to fail and the only large financial institution that was not bailed out by the U.S. government.
ContributorsPanikkar, Manoj Madhuraj (Author) / Samuelson, Melissa (Thesis director) / Ahmad, Altaf (Committee member) / Department of Information Systems (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
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Description
We were driven by the question: what is happening to the popularity of Major League Baseball? In order to answer this question we compared the league structure of Major League Baseball with that of the National Football League. We were able to speak with five former or current members of

We were driven by the question: what is happening to the popularity of Major League Baseball? In order to answer this question we compared the league structure of Major League Baseball with that of the National Football League. We were able to speak with five former or current members of the respective leagues in order to gain some insight into how the two leagues operate. The main focus of our research was around the payroll structures of the two leagues as well as their revenue sharing policies. In the end, we discovered that Major League Baseball is becoming highly regionalized. The sport is still growing in popularity in terms of revenue and fan involvement, but it is becoming less popular on a national stage. The league is benefitting greatly from factors like the increasing importance of "TiVo proof programming" and a lack of competition. Each league is very different in its own right. While the NFL promotes a perception of competitive balance, Major League Baseball can be plagued by the negative perception it creates surrounding some of its smaller market teams.
ContributorsHeath, Cameron (Co-author) / Linamen, John (Co-author) / Eaton, John (Thesis director) / Mokwa, Michael (Committee member) / Barrett, The Honors College (Contributor) / WPC Graduate Programs (Contributor) / Department of Marketing (Contributor) / Department of Finance (Contributor) / Department of Information Systems (Contributor) / School of Accountancy (Contributor)
Created2015-05
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Description
Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the

Executive compensation is broken into two parts: one fixed and one variable. The fixed component of executive compensation is the annual salary and the variable components are performance-based incentives. Clawback provisions of executive compensation are designed to require executives to return performance-based, variable compensation that was erroneously awarded in the year of a misstatement. This research shows the need for the use of a new clawback provision that combines aspects of the two currently in regulation. In our current federal regulation, there are two clawback provisions in play: Section 304 of Sarbanes-Oxley and section 954 of The Dodd\u2014Frank Wall Street Reform and Consumer Protection Act. This paper argues for the use of an optimal clawback provision that combines aspects of both the current SOX provision and the Dodd-Frank provision, by integrating the principles of loss aversion and narcissism. These two factors are important to consider when designing a clawback provision, as it is generally accepted that average individuals are loss averse and executives are becoming increasingly narcissistic. Therefore, when attempting to mitigate the risk of a leader keeping erroneously awarded executive compensation, the decision making factors of narcissism and loss aversion must be taken into account. Additionally, this paper predicts how compensation structures will shift post-implementation. Through a survey analyzing the level of both loss- aversion and narcissism in respondents, the research question justifies the principle that people are loss averse and that a subset of the population show narcissistic tendencies. Both loss aversion and narcissism drove the results to suggest there are benefits to both clawback provisions and that a new provision that combines elements of both is most beneficial in mitigating the risk of executives receiving erroneously awarded compensation. I concluded the most optimal clawback provision is mandatory for all public companies (Dodd-Frank), targets all executives (Dodd-Frank), and requires the recuperation of the entire bonus, not just that which was in excess of what should have been received (SOX).
ContributorsLarscheid, Elizabeth (Author) / Samuelson, Melissa (Thesis director) / Casas-Arce, Pablo (Committee member) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2018-12
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Description
This honors thesis examines community gardens from throughout Phoenix, Arizona. It shows that community gardens have the potential to both support and hinder sustainability efforts, encourage community development, and increase food access. By measuring the temperature at various community gardens throughout Phoenix, AZ, community gardens were shown to minimize local

This honors thesis examines community gardens from throughout Phoenix, Arizona. It shows that community gardens have the potential to both support and hinder sustainability efforts, encourage community development, and increase food access. By measuring the temperature at various community gardens throughout Phoenix, AZ, community gardens were shown to minimize local effects of the urban heat island. Because they use water to survive and Phoenix, AZ is in a desert, this contributes to a depleting water supply. Interviews of gardeners from community gardens throughout Phoenix depicted that community gardens can provide sites for community development as well as promoting food access.
ContributorsBowersox, Diane Kathleen (Author) / Haglund, LaDawn (Thesis director) / Lyon, Mich (Committee member) / Barrett, The Honors College (Contributor) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor) / School of Politics and Global Studies (Contributor)
Created2014-05
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Description
Leveraged buyouts have gone in and out of popularity over the last four decades. The first wave began in the 1980's with the rising popularity of junk bonds, followed by years of economic downturn, and then a rise and respective fall from the dot com era. However, in the 2000's,

Leveraged buyouts have gone in and out of popularity over the last four decades. The first wave began in the 1980's with the rising popularity of junk bonds, followed by years of economic downturn, and then a rise and respective fall from the dot com era. However, in the 2000's, attitudes were high and a period of low interest rates, covenant-lite loans, and relaxed lending conditions gave rise to some of the largest leveraged buyouts in US history. As the name implies, leveraged buyouts are predominantly structured with debt, around 70% of the total transaction value. Private equity firms execute leveraged buyouts on companies in strong industries, who have proven, stable cash flows, with the intent of cutting costs, divesting unneeded assets, and making the chain more efficient. After a time period of five to seven years, the private equity firm exits the deal through an initial public offering of the target company, a sale to another buyer, or dividend recapitalization. The Blackstone Group is one of the largest private equity firms in the US, and, with the favorable leveraged buyout conditions, especially in the real estate market, it wanted to build its real estate portfolio with an acquisition of Hilton Hotels & Resorts. At the time of consideration, Hilton was one of the largest hotel companies in the world, but was beginning to lag compared to its competitors Marriott and Starwood. After months of talks, Hilton agreed to be bought out by Blackstone at $47.50/share, for a total purchase price of $26bn. Blackstone had injected $5.7 of its own equity into the deal. The Great Recession caused a lot of investors to worry about Hilton's debt obligations, and Blackstone was able to restructure a significant portion of the debt to benefit both themselves and their creditors. As new CEO, Christopher J. Nassetta was able to strengthen Hilton by rearranging management, increasing franchising fees, expanding its capital-lite segments, and building more rooms internationally, Hilton was able to grow quicker than its competitors from 2007-2013 while minimizing operating expenses. On December 2, 2013, Hilton went public on the NYSE as HLT. Its enterprise value increased from $26bn to $33bn, and Blackstone was able to achieve an internal rate of return of 19%, while continuing to own 75% of Hilton's shares.
ContributorsNelson, Corey Mitchell (Author) / Simonson, Mark (Thesis director) / Aragon, George (Committee member) / School of Accountancy (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
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Description
Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average

Given its impact on the accounting profession and public corporations, Sarbanes-Oxley Act of 2002(SOX) is a widely researched regulation among accounting scholars. Research typically focuses on the impact it has had on corporations, executives and auditors, however, there is limited research that illustrates the impact SOX may have on average Americans. There were several US criminal code sections that resulted from the passing of SOX. Statute 1519, which is often referred to as the "anti-shredding provision", penalizes anyone who "knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to" obstruct a current or foreseeable federal investigation. This statute, although intended to punish behavior similar to that which occurred in the early 2000s by corporations and auditors, has been used to charge people beyond its original intent. Several issues with the crafting of the statute cause its broad application and some litigation even reached the Supreme Court due to its vague wording. Not only is the statute being applied beyond the intent, there are other issues that legal scholars have critiqued it for. This statute is far from being the only law facing these issues as the same issues and critiques are found in the 14th amendment. Rewriting the statute seems to be the most effective way to address the concerns of judges, lawyers and defendants regarding the statute. In addition, Congress could have passed this statute outside of SOX to avoid being seen as overreaching if obstruction of justice related to documents was actually an issue outside of corporate fraud.
ContributorsGonzalez, Joana (Author) / Samuelson, Melissa (Thesis director) / Lowe, Jordan (Committee member) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
In the field of Accountancy, recruiting is highly competitive among firms and prospective employees alike. This is particularly true when it comes to the firms Deloitte, Ernst & Young, KPMG, and PWC, the largest accounting firms that comprise what is known as the "Big Four." These firms maintain a large

In the field of Accountancy, recruiting is highly competitive among firms and prospective employees alike. This is particularly true when it comes to the firms Deloitte, Ernst & Young, KPMG, and PWC, the largest accounting firms that comprise what is known as the "Big Four." These firms maintain a large presence and recruit heavily on the Arizona State University (ASU) campus. There exists a defined path for recruiting with these firms; some of the opportunities offered include Office Tours, Externships, Internships, and Volunteer Service. However, as clear as the path may seem to someone who has researched these opportunities, it is murky for most students. Without direction, both students and the firms miss out on crucial relationship development. As an Accountancy major in the W.P. Carey School of Business, I had a difficult time understanding the recruiting process; much of my knowledge came from my peers. As a result, I researched what students know about the recruiting process, and how they learned this information. I also queried the Big Four firms and the student organization, Beta Alpha Psi, to learn what they want from students and how they organize their recruiting process. I surveyed Accountancy majors including both those who went through the recruiting process and those who had yet to go through the process. Overall, the results were consistent with my original understanding; many students lack knowledge of recruiting opportunities and those who did have such knowledge mainly learned of it from their peers and word of mouth. These results show room for growth in connecting students to the firms. A suggested course of action developed based on these findings can be integrated into the ACC101: Accountancy LEAP Program, as well as be incorporated into a student guide in order to better give students direction, a roadmap to the aforementioned path.
ContributorsWhitson, Jillian Layne (Author) / Faurel, Lucile (Thesis director) / Bonfiglio, Thomas (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description
How prepared are individuals to work in an environment with sensitive information? Do business students believe a data security course would be a valuable addition to their curriculum? This study investigates W.P. Carey's role in preparing its students for jobs in which they most likely will have to handle large

How prepared are individuals to work in an environment with sensitive information? Do business students believe a data security course would be a valuable addition to their curriculum? This study investigates W.P. Carey's role in preparing its students for jobs in which they most likely will have to handle large amounts of important data. Roughly 500 students across varying majors and years of education in the W.P. Carey School of Business answered an assortment of questions on their computer habits, and responded to various scenarios to test their knowledge. The survey targeted three specific areas (Software Updates, Password Protection, and Phishing) which was believed to be most pertinent to the students' future roles as professionals. While a large number of those surveyed (roughly 65%) responded well to most questions, nearly a third of all the responses received indicated cause for concern or an indication of a lack of knowledge. It was suggested (and many respondents agreed) that further education be provided to students for their own well-being in addition to the wellbeing of their future employers.
ContributorsVaughan, Nathaniel D (Author) / Lin, Elva (Thesis director) / Doupé, Adam (Committee member) / School of Accountancy (Contributor) / Department of Information Systems (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
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Description
This thesis will analyze the operations of two nonprofit organizations located in different parts of the world. One local and one international nonprofit organization was chosen for this thesis/creative project because of the diverse culture, customs and regulations in each setting. The paper will discuss the operations of St. Vincent

This thesis will analyze the operations of two nonprofit organizations located in different parts of the world. One local and one international nonprofit organization was chosen for this thesis/creative project because of the diverse culture, customs and regulations in each setting. The paper will discuss the operations of St. Vincent de Paul, the Chandler Conference of St. Vincent de Paul, and Sri Sai Darshan Trust (SSDT). The paper begins with a brief history of nonprofit organizations followed by a detailed background on both organizations. The management (organizational structure), finances, marketing, and legalities will be discussed of each nonprofit. The paper will then examine the specialized projects of each organization throughout the year. A PEST, SWOT, value chain, Kraljic, spend, and demand analysis were conducted based off of the research on each nonprofit. The paper will then discuss the problems each organization exhibits and the potential solutions the nonprofits can implement into their daily operations in order to resolve them. This section analyzes the similarities and differences within each business area of the nonprofit organization. Short-term solutions to current business problems and long-term solutions to organizational problems will be discussed in this section. The conclusion is the final element of the thesis. In this section, a balanced scorecard will be created for each nonprofit organization. In addition, the authors will discuss what they learned throughout the entire process. The goal of this thesis/creative project was to integrate the knowledge and concepts from business (marketing, finance, management, accounting, supply chain management, and computer information systems), and find an application for each within nonprofit organizations around the world.
ContributorsPatel, Nisha (Co-author) / Sivakumar, Akila (Co-author) / Maltz, Arnold (Thesis director) / LePine, Marcie (Committee member) / W. P. Carey School of Business (Contributor) / Department of Supply Chain Management (Contributor) / School of Accountancy (Contributor) / Division of Teacher Preparation (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05