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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
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
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
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Description
At a time when the national and world community is viewing collegiate business programs as complicit in many recent business scandals rooted in ethical violations and breaches of trust, improving ethics education is a high priority. Review of current research on techniques for effectively teaching ethics highlights the importance of

At a time when the national and world community is viewing collegiate business programs as complicit in many recent business scandals rooted in ethical violations and breaches of trust, improving ethics education is a high priority. Review of current research on techniques for effectively teaching ethics highlights the importance of incorporating conversational learning, decision models, and relevant, personalized case discussions into undergraduate ethics lessons. Focusing exclusively on ethics education in the first-year business seminar WPC 101, we evaluated the current ethics/academic integrity module and found it to be lacking many research-supported techniques. To develop an updated curriculum, we first used the EthicsGame Ethical Lens Inventory in a survey of 114 W. P. Carey students to explore whether a connection between students' majors and primary ethical lenses would demonstrate the effectiveness of designing different, tailored ethics curricula for students in each major. Regression analysis of the survey responses indicated that this research was inconclusive for every major except for Accountancy, which already has a specific (upper-division) ethics course. This initial research stage led to the creation of a universally applicable ethics curriculum based on the Baird Decision Model. Incorporating techniques from the literature review, the new WPC 101 Academic Honesty & Ethics curriculum includes a presentation on the Baird Decision Model, a small-group discussion of a relevant ethical dilemma, and a class role play. The curriculum additionally includes detailed Facilitator Guidelines for educators. The curriculum was piloted in WPC 101 classes during Spring 2016, and we present student and facilitator feedback as well as suggestions for further research and improvement. Use of this research-backed curriculum and further study into its impact on student decision making will allow W. P. Carey to continue advancing in pursuit of training students to be effective ethical leaders.
ContributorsMcClelland, Allison (Co-author) / Mayper, Rebecca (Co-author) / Samuelson, Melissa (Thesis director) / Parker, John (Committee member) / Department of Information Systems (Contributor) / Department of Management (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
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Description

Battered is a socially responsible bakery focused on providing prevention awareness, education, and donations to sexual violence awareness and aid. The bakery model will provide education resources within each order on the problem and current availability of aid and donations for local and national charities that assist in sexual violence

Battered is a socially responsible bakery focused on providing prevention awareness, education, and donations to sexual violence awareness and aid. The bakery model will provide education resources within each order on the problem and current availability of aid and donations for local and national charities that assist in sexual violence aid and awareness. In order to assist in prevention and aid, Battered will create a safe environment and non-confrontational outlet for a taboo conversation; offering sweet treats in conjunction with aid and education of sexual violence awareness. Additionally, the company will donate 10% of all profits to local and national organizations that help victims of sexual violence.

ContributorsBitzan, Marie Catherine (Author) / Byrne, Jared (Thesis director) / Livengood, Scott (Committee member) / School of Art (Contributor) / Department of Management and Entrepreneurship (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description

Human beings have long sought to conquer the unconquerable and to push the boundaries of human endurance. There are few such endeavors more challenging than venturing into the coldest and harshest environments on the planet. The challenges these adventurers face are nearly countless, but one that is often underestimated is

Human beings have long sought to conquer the unconquerable and to push the boundaries of human endurance. There are few such endeavors more challenging than venturing into the coldest and harshest environments on the planet. The challenges these adventurers face are nearly countless, but one that is often underestimated is the massive risk of dehydration in high mountains and the lack of sufficient technology to meet this important need. Astronauts and mountaineers of NASA's Johnson Space Center have created a technology that solves this problem: a freeze-resistant hydration system that helps stop water from freezing at sub-zero temperatures by using cutting-edge technology and materials science to insulate and heat enough water to prevent dehydration over the course of the day, so that adventurers no longer need to worry about their equipment stopping them. This patented technology is the basis of the founding of Aeropak, an advanced outdoor hydration brand developed by three ASU students (Kendall Robinson, Derek Stein, and Thomas Goers) in collaboration with W.P. Carey’s Founder’s Lab. The primary goal was to develop traction among winter sport enthusiasts to create a robust customer base and evaluate the potential for partnership with hydration solution companies as well as direct sales through online and brick-and-mortar retail avenues. To this end, the Aeropak team performed market research to determine the usefulness and need for the product through a survey sent out to a number of outdoor sporting clubs on Arizona State University’s campus. After determining an interest in a potential product, the team developed a marketing strategy and business model which was executed through Instagram as well as a standalone website, with the goal of garnering interest and traction for a future product. Future goals of the project will be to bring a product to market and expand Aeropak’s reach into a variety of winter sport subcommunities, as well as evaluate the potential for further expansion into large-scale retailers and collaboration with established companies.

ContributorsStein, Derek W (Co-author) / Robinson, Kendall (Co-author) / Goers, Thomas (Co-author) / Byrne, Jared (Thesis director) / Sebold, Brent (Committee member) / Chemical Engineering Program (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Description

A large section of United States citizens live far away from supermarkets and do not have<br/>an easy way to get to one. This portion of the population lives in an area called a food desert.<br/>Food deserts are geographic areas in which access to affordable, healthy food, such as fresh<br/>produce, is

A large section of United States citizens live far away from supermarkets and do not have<br/>an easy way to get to one. This portion of the population lives in an area called a food desert.<br/>Food deserts are geographic areas in which access to affordable, healthy food, such as fresh<br/>produce, is limited or completely nonexistent due to the absence of convenient grocery stores.<br/>Individuals living in food deserts are left to rely on convenience store snacks and fast food for<br/>their meals because they do not have access to a grocery store with fresh produce in their area.<br/>Unhealthy foods also lead to health issues, as people living in food deserts are typically at a<br/>higher risk of diet-related conditions, such as obesity, diabetes, and cardiovascular disease.<br/>Harvest, a sustainable farming network, is a smartphone application that teaches and guides<br/>people living in small spaces through the process of growing fresh, nutritious produce in their<br/>own homes. The app will guide users through the entire process of gardening, from seed to<br/>harvest. Harvest would give individuals living in food deserts an opportunity to access fresh<br/>produce that they currently can’t access. An overwhelming response based on our user<br/>discussion and market analysis revealed that our platform was in demand. Development of a<br/>target market, brand guide, and full lifecycle were beneficial during the second semester as<br/>Harvest moved forward. Through the development of a website, social media platform, and<br/>smartphone application, Harvest grew traction for our platform. Our social media accounts saw a<br/>1700% growth rate, and this wider audience was able to provide helpful feedback.

ContributorsBalamut, Hannah (Co-author) / Raimondo, Felix (Co-author) / Tobey, Anna (Co-author) / Byrne, Jared (Thesis director) / Satpathy, Asish (Committee member) / Morrison School of Agribusiness (Contributor) / Department of Marketing (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Description

A large section of United States citizens live far away from supermarkets and do not have an easy way to get to one. This portion of the population lives in an area called a food desert. Food deserts are geographic areas in which access to affordable, healthy food, such as

A large section of United States citizens live far away from supermarkets and do not have an easy way to get to one. This portion of the population lives in an area called a food desert. Food deserts are geographic areas in which access to affordable, healthy food, such as fresh produce, is limited or completely nonexistent due to the absence of convenient grocery stores. Individuals living in food deserts are left to rely on convenience store snacks and fast food for their meals because they do not have access to a grocery store with fresh produce in their area. Unhealthy foods also lead to health issues, as people living in food deserts are typically at a higher risk of diet-related conditions, such as obesity, diabetes, and cardiovascular disease. Harvest, a sustainable farming network, is a smartphone application that teaches and guides people living in small spaces through the process of growing fresh, nutritious produce in their own homes. The app will guide users through the entire process of gardening, from seed to harvest. Harvest would give individuals living in food deserts an opportunity to access fresh produce that they currently can’t access. An overwhelming response based on our user discussion and market analysis revealed that our platform was in demand. Development of a target market, brand guide, and full-lifecycle were beneficial during the second semester as Harvest moved forward. Through the development of a website, social media platform, and smartphone application, Harvest grew traction for our platform. Our social media accounts saw a 1700% growth rate, and this wider audience was able to provide helpful feedback.

ContributorsTobey, Anna Elisabeth (Co-author) / Raimondo, Felix (Co-author) / Balamut, Hannah (Co-author) / Byrne, Jared (Thesis director) / Givens, Jessica (Committee member) / Satpathy, Asish (Committee member) / School of Life Sciences (Contributor) / School of Sustainability (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
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Description

A large section of United States citizens live far away from supermarkets and do not have an easy way to get to one. This portion of the population lives in an area called a food desert. Food deserts are geographic areas in which access to affordable, healthy food, such as

A large section of United States citizens live far away from supermarkets and do not have an easy way to get to one. This portion of the population lives in an area called a food desert. Food deserts are geographic areas in which access to affordable, healthy food, such as fresh produce, is limited or completely nonexistent due to the absence of convenient grocery stores. Individuals living in food deserts are left to rely on convenience store snacks and fast food for their meals because they do not have access to a grocery store with fresh produce in their area. Unhealthy foods also lead to health issues, as people living in food deserts are typically at a higher risk of diet-related conditions, such as obesity, diabetes, and cardiovascular disease. Harvest, a sustainable farming network, is a smartphone application that teaches and guides people living in small spaces through the process of growing fresh, nutritious produce in their own homes. The app will guide users through the entire process of gardening, from seed to harvest. Harvest would give individuals living in food deserts an opportunity to access fresh produce that they currently can’t access. An overwhelming response based on our user discussion and market analysis revealed that our platform was in demand. Development of a target market, brand guide, and full lifecycle were beneficial during the second semester as Harvest moved forward. Through the development of a website, social media platform, and smartphone application, Harvest grew traction for our platform. Our social media accounts saw a 1700% growth rate, and this wider audience was able to provide helpful feedback.

ContributorsRaimondo, Felix Ryan (Co-author) / Tobey, Anna (Co-author) / Balahmut, Hannah (Co-author) / Byrne, Jared (Thesis director) / Satpathy, Asish (Committee member) / Human Systems Engineering (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description

As part of the Founders’ lab program, this thesis explores a social venture idea whose concept is to connect the philanthropic community with individuals and organizations in need of funding a project relating to (Sustainable Development Goals) SDG indicators through a peer to peer donation platform. Through this platform, the

As part of the Founders’ lab program, this thesis explores a social venture idea whose concept is to connect the philanthropic community with individuals and organizations in need of funding a project relating to (Sustainable Development Goals) SDG indicators through a peer to peer donation platform. Through this platform, the philanthropic community will have the possibility to easily access a wide range of projects to support as well as underserved individuals and communities seeking for help, track their impact, donate in a complete transparent donation process, and automate donations through bank card rounds-up. This social venture idea has been named PhilanthroGo.

ContributorsFrank, Gregory Keith (Co-author) / Boeh, Morgan (Co-author) / Veal, Hayley (Co-author) / Byrne, Jared (Thesis director) / Givens, Jessica (Committee member) / Satpathy, Asish (Committee member) / Mechanical and Aerospace Engineering Program (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05