Caught in an Expectations Trap: Risks of Giving Securities Analysts What They Expect

2023 | Organization Science | Citations: 0

Authors: Bascle, Guilhem; Jung, Jiwook

Abstract: Although recent research shows that there is mounting pressure on firms to achie ... Expand

Abstract: Although recent research shows that there is mounting pressure on firms to achieve earnings expectations of securities analysts, firms are far from being passive conformers; many firms proactively manage such pressure, particularly with earnings management tools. Yet why does the pressure to meet analyst expectations persist despite firms’ efforts to reduce it? To address the question, we develop an intertemporal model of the mutually reinforcing relationships between analyst expectations and firms’ strategic response, combining the behavioral theory of the firm and the concept of expectations trap. We argue that firms’ efforts to meet analyst expectations strengthen their salience as a predominant performance benchmark and, in doing so, ironically put them under greater pressure from analysts in three sequentially related steps—escalating future earnings expectations, imposing more severe penalties for failure to meet heightened expectations, and generating compensatory action for missed expectations. Our analysis, using data on more than 700 of the largest listed U.S. firms between 1986 and 2015, supports our arguments. Our study expands the scope of the behavioral theory of the firm, by demonstrating the increasing importance of performance feedback based on analyst expectations. Our study also contributes to the research on earnings pressure, by illuminating why the pressure persists despite firms’ efforts to reduce or evade it, and finally to the literature on strategic management of external expectations, by elaborating its unintended, long-term consequences. Supplemental Material: The e-companion is available at https://doi.org/10.1287/orsc.2021.1569. Collapse

Topics: strategic management organizational productivity Generally Accepted Accounting Principles IS downsizing accounting

Methods: longitudinal research statistical hypothesis test Compustat descriptive statistic robustness check

Theories: behavioral theory of the firm institutional theory

Employing Machine Learning to Advance Agent-based Modeling in Information Systems Research

2023 | International Conference on Information Systems | Citations: 0

Authors: Bashardoust, Amirsiavosh; Safaei, Negin; Haki, Kazem; Shrestha, Yash Raj

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Topics: sensemaking Python organizational context innovation management business-to-business

Methods: sensitivity analysis theory development simulation robustness check artificial neural network

Theories: sociotechnical systems theory

Reconceptualizing users: The roles and activities of people as they engage with digital technologies

2023 | Journal of Information Technology | Citations: 0

Authors: Baskerville, Richard L; Myers, Michael D

Abstract: The concept of the user has persisted in information systems research and practi ... Expand

Abstract: The concept of the user has persisted in information systems research and practice since the field’s inception in the 1950s. However, the roles that people play and the activities they perform have changed considerably over time. People now engage with digital technologies for all kinds of activities and in all kinds of ways, including for both personal and professional purposes. Hence, the purpose of this paper is to reconceptualize the term “user.” We discuss the various activities that people engage in with digital technologies, the myriad roles they play, and an essential shift in what the term “user” means. Users might be active in shaping how a particular information system is used, they might be partners with an information system, they might be used by an information system, and they may spend sizable parts of their lives living essentially within information systems. We conclude by discussing the implications for the IS discipline of reconceptualizing the term “user.” Collapse

Topics: IS discipline mobile application societal evaluation criteria IT workforce organizational context

Methods: usage data

Theories: sociotechnical systems theory socio technical theory

Introduction to the Minitrack on Advances in Design Science Research

2023 | HICSS | Citations: 0

Authors: Baskerville, Richard; Tuunanen, Tuure; Rossi, Matti

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Topics: V model blockchain

Methods: case study design methodology design science longitudinal research conceptual modelling

All External Reference Prices Are Not the Same: How Magnitude, Source, and Fairness Shape Payment for Digital Goods

2023 | Information Systems Research | Citations: 0

Authors: Bassellier, Geneviève; Ramaprasad, Jui

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment ... Expand

Abstract: External reference prices (ERPs) are recognized to influence consumers’ payment for physical goods. We examine the role of ERPs in a digital goods context, emphasizing the importance of disentangling the effects of two components of ERPs: the magnitude and the source. We first examine the impact of the price magnitude and then investigate how the impact of ERP magnitude is moderated by its source―the specific context in which the reference price is set—and by its perceived fairness. Using a laboratory experiment with 471 participants, we first establish that as an ERP increases, payment for digital songs also increases. Furthermore, the source of the ERP motivates payment differently. Indeed, consumers’ willingness to pay is more strongly influenced by a price recommended by the site than by information on the price paid by others. Last, we show that the perceived fairness of the ERP matters. Results indicate that when the ERP is perceived to be high, the marginal effect of an increase in ERP on payment is smaller than when it is perceived to be fair. We contribute to the understanding of the effect of ERPs in digital context, where the source of an ERP can be varied, and perception of fairness can be heterogenous across consumers. This has implications for the design of digital platforms seeking to sell digital goods using a flexible pricing scheme. History: Anandasivam Gopal, Senior Editor; Sunil Wattal, Associate Editor. Funding: This work was supported by the Social Science and Humanities Research Council of Canada [Insight Development Grant 430-2017-01055]. Supplemental Material: The online appendix is available at https://doi.org/10.1287/isre.2023.1206. Collapse

Topics: enterprise resource planning digital good website price management digital platform

Methods: experiment Student's t-test survey regression analysis method laboratory experiment

Theories: behavioral economics

Are Information Security Practices Driven by the Likelihood and potential Impact of Security Events?

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Batra, Gunjan; Saeed, Khawaja; Zafar, Humayun

Abstract: Organizations have opened up various digital interfaces through which customers ... Expand

Abstract: Organizations have opened up various digital interfaces through which customers gain access to online services. Digital interaction between the organization and its customers increases security risks. This study examines how the risk profile of customers defined by their perception of the likelihood and potential impact of a security incident is related to their information security behaviors. We collected data in the context of online banking services to empirically evaluate this research question. The results showed that individuals with low likelihood and high impact perceptions of security incidents had authentication and device security practices significantly higher than that of other groups. Surprisingly, there was no difference in security practices across groups with high likelihood/high impact and low likelihood/low impact perceptions of security incidents. Implications of these results are discussed along with ways we plan to extend this research study. Collapse

Topics: electronic authentication cybersecurity behavior password online banking information security practice

Methods: cluster analysis survey exploratory factor analysis data transformation descriptive statistic

Budget-Feasible Market Design for Biodiversity Conservation: Considering Incentives and Spatial Coordination

2023 | International Conference on Business Informatics | Citations: 0

Authors: Batziou, Eleni; Bichler, Martin

Abstract: How to best incentivize farmers to conserve biodiversity on private land is an ... Expand

Abstract: How to best incentivize farmers to conserve biodiversity on private land is an important policy question. Conservation auctions provide a mechanism to elicit farmers' opportunity costs, but their design is challenging and often suffer from low participation due to strategic complexity. Conservation auctions should ideally be incentive-compatible, address spatial synergies that maximize biodiversity gains, and respect the predefined budget of the government. Recent advances in mechanism design suggest budget-feasible auctions, but little is known about average-case efficiency. Based on this line of research, we introduce an incentivecompatible conservation auction mechanism that considers the bid taker's spatial synergies and respects budget. The results are compared against the celebrated Vickrey-Clarke-Groves mechanism. Our numerical results estimate the efficiency loss that can be expected for different assumptions on the synergistic values of the government. They provide evidence that budget-feasible mechanisms provide a new tool for policymakers in this domain. Collapse

Topics: manufacturing information system procurement management

Methods: experiment computational algorithm

ADAM - Towards a Software Model for the Automatic Detection of Data Attributes and Metadata in Business Processes

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Baumann, Nick; Schäffer, Thomas

Abstract: In the current era of digital transformation, organizations are faced with an u ... Expand

Abstract: In the current era of digital transformation, organizations are faced with an unprecedented volume of data that requires proper management. In order to effectively manage this data, organizations need to understand the data's requirements and usage. In addition, organizations want to leverage this data to improve their business processes and gain valuable insights. Unfortunately, many organizations lack visibility into which data attributes are being used within their processes and at what stage of the process they are being used. To address this problem, this paper presents a prototype called ADAM that uses process mining to identify data attributes and their associated metadata from processes. We provide a detailed description of the requirements gathered for the prototype and explain the design and implementation of ADAM. In particular, we show how ADAM can be utilized to identify data attributes and their specifications used in processes from an SAP ERP system. Collapse

Topics: process mining enterprise resource planning business process management electronic mail relational database

Methods: design artifact qualitative interview case study design science event log

CONFIDENCE MATTERS: A SIMULATION-BASED STABILITY ANALYSIS OF ALGORITHMIC STABLECOINS

2023 | European Conference On Information Systems | Citations: 0

Authors: Baumeister, Alexander; Hägele, Sascha

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Topics: stablecoin Ethereum cryptocurrency

Methods: simulation Monte Carlo simulation agent based simulation

How social media live streams affect online buyers: A uses and gratifications perspective

2023 | International Journal of Information Management | Citations: 2

Authors: Bawack, Ransome Epie; Bonhoure, Emilie; Kamdjoug, Jean-Robert Kala; Giannakis, Mihalis

Abstract: Social media live streams (SMLSs) are becoming mainstream e-commerce platforms, ... Expand

Abstract: Social media live streams (SMLSs) are becoming mainstream e-commerce platforms, especially for direct selling, offering online retailers (e-tailers) immense consumer interaction and engagement levels. Despite their growing prevalence, e-tailers face difficulties capitalising on this platform to enhance retail operations. This paper ex­ plores how SMLSs affect consumers’ purchase intentions by exploring their motivations for participating in ecommerce SMLSs. To this end, we used the uses and gratifications (U&G) theory to explain how using SMLSs to satisfy consumers’ needs could lead to high or low purchase intentions. It was done by collecting cross-sectional data from 795 consumers who have participated in e-commerce SMLSs. The data were analysed using partial least squares-structural equation modelling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA). Our findings revealed that people use SMLSs to satisfy their need for value, social identification, and the me­ dium’s attributes. Based on these findings, we show six configurations that lead to high or low purchase in­ tentions and make corresponding theoretical propositions. Thus, our study contributes to the research and practice of using SMLSs for online shopping. Collapse

Topics: electronic commerce price management social media social network information exchange

Methods: survey partial least squares path modeling structural equation modeling partial least squares regression cross sectional research