Texas Enterprise reviews the latest developments in business research from the McCombs School of Business faculty.
Bond analysts have their own predisposition, and new research shows that the longer they cover a company, the more optimistic — and inaccurate — their ratings will be.
What leads an entrepreneur to start a business? According to new research from McCombs, it’s not what you think. Motivation often comes from a singular, notable event or organization that everyone watches. And right now, all eyes are on Yale University.
The PCAOB will soon require expanded audit reports with the hope that investors will find them more informative. This marks the first major change in auditing reports in more than 80 years, but will there be unintended consequences?
Search engine advertising is a $70 billion industry, but whether a person clicks an ad or buys a product depends heavily on organic search results. New research shows factoring in that competition can improve ad spend by 6 percent.
When investors compare companies, they don’t always read financial reports. Instead, most just count how many times a firm beats or misses earnings forecasts. It’s new research from McCombs that can help predict how investor psychology affects stock prices.
Language matters: research shows negative words used in annual reports predict which firms use tax aggressive strategies to free up cash.
How much is too much? New research from McCombs shows you’re slower to feel full or bored if a product appeals to your self-image — a finding marketers can use to boost brand loyalty.
Stock analysts are supposed to be detached observers of corporate activity, but new research from McCombs shows their thumbs up or down can affect whether a merger gets completed or torpedoed — and offer opportunities for contrarian investors.
Membership has its privileges, even in a stock index. New research from the McCombs School of Business finds a change in a stock’s relative ranking can cause its price to rise or fall — which can sometimes create trading opportunities for investors.
In today’s global economy, more and more corporate mergers cross national borders. To work, they need to make financial sense. But a new study from McCombs finds another dimension to success: making cultural sense.
When Marissa Mayer nixed Yahoo’s WFH policy, she said it was because people are more collaborative and innovative when they work together. Perhaps, but new research from McCombs suggests that people are more motivated when they’re allowed to work alone.
Getting new information about a company or stock even during a market sell-off makes individual investors more likely to trade, but that doesn’t mean they should. New research explores the financial theory and capital markets evidence behind investor behavior.
When it comes to staffing teams, diversity brings in new ideas, but it also can create clashes among people with different backgrounds. New research from McCombs explains how managers can skirt diversity’s perils and still reap its rewards.
In mutual fund management as in life, it’s who you know, not just what you know. Professor Sheridan Titman uncovers the link between alumni networks and fund performance, especially if you’ve got elite connections.
For IPO issuers, negotiating a strong selling price requires courting both underwriters and investors, but they don’t respond to the same data. New research shows what signals each stakeholder looks for when deciding how much a company is really worth.
Investors want to know where stocks are going before they get there. Most forecasting models comb through past financial performance for signals, but a new study from McCombs analyzes the digital trails left when people search for stocks online.
New research reveals a link between the presence of explanatory language in an audit report and misstatement risk. It can alert investors to weaknesses in a firm’s financials — if they pay attention.
Even when customers are satisfied with a brand, they still switch. Professor Wayne Hoyer explains why strong emotional connections are essential for building loyalty — and why satisfaction and trust are no longer the hallmarks of successful branding.
Corporate political spending, burgeoning since Citizens United, may lead elected officials to pass laws that help company management but hurt ordinary stockholders. McCombs Assistant Professor Tim Werner examines the connection and explains what’s at stake.
How should banks get delinquent credit card holders to pay up? The first step is being able to predict who actually will, and Assistant Professor Naveed Chehrazi knows how.
Research from Professor Linda Golden shows it’s not what someone actually knows but rather what they think they know that prompts them to act. For healthcare workers trying to prevent outbreaks of deadly diseases, it’s time for a new communications strategy.
This Earth Day, we're wondering what makes a product “green." According to McCombs Associate Professor Andrew Gershoff, it comes down largely to consumer perception and not always what’s actually in the product itself.
For mutual fund investors, it’s not just what they earn that’s important — it’s what they keep. New research from McCombs Professor Clemens Sialm shows that asset managers who know how to keep taxes low for their clients generate higher returns all around.
Every year, thousands of companies change their names. What causes investors to reward some (and not others) by bidding up their market value around the time of the announcement? McCombs Professor Vijay Mahajan explains.
When it comes to bringing a new product to the market, should a startup invest in just one technology or diversify across multiple complementary options? Research from McCombs Professor Ed Anderson says it depends on how long you want to stay in business.
Using functional magnetic resonance imaging (fMRI), accounting Assistant Professor Brian White studies how incentives activate different regions of the brain and promote more rational decision-making. We look at what this means for managers.
The more power people have, the less likely they are to recognize potential threats according to research from Assistant Professor Jennifer Whitson, who says the best person to consult before making a big decision may be the least powerful person in the room.
New research from McCombs shows that as you spend toward the bottom of your budget, you’re less likely to be happy with what you buy. Associate Professor Andrew Gershoff offers practical advice for making the most of your bottom dollar in the new year.
How do small businesses adapt when a super-sized neighbor moves in and disrupts their environment — like the 2009 opening of Cowboys Stadium in Arlington, Texas? McCombs Professor David Harrison says flexibility and creativity are the keys to profiting.
Large campaign contributions might buy access and influence, but new research from the McCombs School of Business finds that when a company is embroiled in a boycott, even the biggest check may be too risky for most politicians to accept.
Researchers from McCombs have analyzed 3.1 million home mortgage loans made between 2002-2007, just prior to the financial crisis of 2008. Their findings reveal extensive, deliberate misreporting that defrauded investors and upended the mortgage industry.
New research from Associate Professor Francisco Polidoro reveals that your favorite big-name prescription drug wasn’t just developed in a laboratory — it was probably born from watching Big Pharma competitors for clues about what might be most profitable.
McCombs Associate Professor Shuping Chen examines what happens when no one asks questions during quarterly earnings calls. For managers, the price of silence is steep: a significant and measurable decrease in stock price.
If you’re looking for a new job, the professional contacts in your online social circle can help open doors with hiring managers. But having a large network of weak connections can actually hurt your chances of landing an interview, research suggests.
Retailers use “Best Seller” and “Award Winner” signs to make shopping easier for customers, but new research from McCombs faculty shows that they often don’t.
Some of America’s largest corporations participate in a little-known IRS program that allows them to selectively submit parts of their tax returns for pre-approval. It might seem risky to give companies that flexibility, but research shows the system has mutual benefits.
If you have a defined contribution plan such as a 401(k), you’re probably not calling all the shots — and McCombs researchers say that might be a good thing.
Doctors' offices can schedule appointments more efficiently by considering the probability that certain patients will be no-shows. Researchers expect this model to help clinics cut costs while reducing wait times for more punctual patients.
Statistics is vulnerable to manipulation and false-positives that can derail the best research, but if you ask McCombs Assistant Professor James Scott, that doesn't have to be the case.
Award-winning research from McCombs faculty shows that overconfidence and excessive debt proved to be costly errors for real estate investment trusts during the financial crisis of the 2000s.
Research suggests agencies such as Standard & Poor’s stretched beyond their own models when they awarded AAA ratings before the financial crisis.