I am delighted to present the latest accomplishments of the faculty of the David D. Reh School of Business.
The faculty of the Reh School of Business continues to produce cutting-edge scholarship that unearths essential discoveries in the business world. Our professors are recognized as thought leaders in their fields; publish and review articles for top academic and professional journals; participate in and present their research at academic conferences around the world; share their expertise in the media; and translate their knowledge into the classroom to enhance our students’ learning experiences.
Here are highlights of the accomplishments the faculty made during the Spring 2022 semester.
I invite you to visit the Reh School of Business faculty website to learn more about our faculty, their research and teaching interests, and their extraordinary commitments to improving lives.
Brown, A., Lin, G. (2022). “Theoretical survey on the optimal contractualisation for administrators accumulating several mandates.” Journal of Risk and Financial Management, 15: 2-16.
Abstract: This article is the first (to our knowledge) to analytically model the optimal contractualization for a member of the board of directors who holds several mandates. Previous literature has found conflicting evidence on the overall effect of multiple directors on shareholder welfare: busy board members are generally detrimental to firm operational performance due to time and effort limited they can devote to each board; however, multiple directorships can be beneficial to companies if board members gain knowledge and expertise through their multiple appointments. The aim of our study is to extend research on the effects of multiple tenures on shareholder welfare by modeling the relationship between optimal incentives and the number of tenures. Modeling in the linear-exponential-normal framework and solving using the subgame perfect Nash equilibrium, we find that this relationship is positive when the efforts between the directions are either substitutive or complementary, which which highlights another significant potential downside of multiple managements: companies must offer high incentive compensation to compete with directors’ efforts, leading to high risk premiums and loss of shareholder welfare. Our results may be of interest to policymakers considering setting limits on the number of board seats that can be held by directors of public companies, as well as shareholders considering appointing multi-appointed directors.
Jones S.L., Cheon, O., Manzano, J.M., Park A.K., Lin, H.Y., Halm, J.K., Baek, J., Graviss, E.A., Nguyen, D.T., Kash, B.A., Phillips, R.A. (2022). “Comparison of LACE and HOSPITAL readmission risk scores for target and non-target CMS conditions.” American Journal of Medical Grade, 37(4): 299-306.
Abstract: This study evaluated the utility and performance of the LACE index and HOSPITAL score considering the type of diagnoses and assessed the accuracy of these models for predicting readmission risk in 2 patient cohorts large academic medical centers. Admissions to 2 hospitals from 2011 to 2015, derived from the Vizient Clinical Database and Regional Health Information Exchange, were included in this study (291,886 encounters). The models were evaluated using the Bayesian information criterion and the area under the receiver operating characteristic curve. They were compared in cohorts based on CMS diagnosis and in 2 cohorts based on non-CMS cancer diagnosis. Overall, both readmission risk models performed well, with LACE being slightly better (area under the receiver operating characteristic curve 0.73 vs. 0.69; P ≤ 0.001). HOSPITAL has consistently outranked LACE among the CMS’s 4 target diagnostics, lung cancer and colon cancer. LACE and HOSPITAL predict readmission risks well in the general population, but performance varies across major diagnosis-based risk factors.
Lin, G. (2022). “The School of Information versus Measurement in the History of Accounting Thoughts.” International Journal of Business and Economics, 7(1): 145-152.
Summary: What is the economic substance (or core) of accounting? What is the function and value of accounting and accountants in our society? With the development of accounting and scholarly accounting research, two schools of thought emerge and play a vital role in understanding the effective functioning of accounting, namely the information school and the measurement school. This article reviews the school of information and measurement in the history of accounting thought. We propose a third integrated methodology. It might be helpful to paint a more comprehensive picture of accounting topics. Finally, some potential research directions are also proposed.
Lin, G. (2022). “Macroeconomic News and Management Forecasts.” International Journal of Accounting & Financial Review, 10(1): 76-82.
Summary: Are companies whose earnings move more with macroeconomics more or less likely to offer management forecasts? This paper documents the following findings: (1) there is a significantly positive relationship between the extent to which a company’s earnings move in concert with GDP and the likelihood of issuing management forecasts. The explanation is that, if a company’s earnings move in concert with GDP, the cost of lack of management guidance is lower, as executives could blame it on poor macro news forecasts, at the instead of company-specific forecasts. It contributes to the emerging literature on macro accounting by first documenting this channel. Moreover, in addition to the R-squared, which has been used in the macro accounting literature, this paper suggests that the coefficient and p-value of regressions of corporate profits on GDP, are useful to help identify flagship companies (companies with a high content of macroeconomic information or companies connected to many other companies in the economy).
Madraki, G., Mousavian, S. (2022). “Simultaneously update multiple performance metrics for manufacturing systems after scheduling disruptions.” IFAC-PapersOnLine, forthcoming.
Abstract: We simultaneously update multiple performance metrics of manufacturing systems after multiple planning disturbances in a single pass without performing computation from scratch. Our approach reuses the planning information before the disruptions. It uses Max-Plus algebra and the system matrix to calculate propagated changes from initially perturbed operations to their affected successors. Then, using those changes, it evaluates new metrics for the affected operations. Previous algorithms must either calculate multiple performance metrics from scratch ignoring information before disturbances; or calculate only one performance metric at a time while reusing system information before disruptions. Our approach addresses both of these issues.
Mette, J. and Lin, G. (2022) “Wind Energy Use and Consumer Food Prices: Evidence of Energy Policy Change in the United States and China”. Oil, Gas and Energy Quarterly, forthcoming.
Abstract: The Energy Act of 2005 and the Energy Independence Act of 2007 solidified the United States’ focus on renewable energy sources. During the 15-fold increase in the use of wind energy in less than 20 years, the prices of several foodstuffs also increased significantly. Despite much research on the link between food prices and other expanding renewable energy sources, particularly biofuels, the impact of wind energy use has remained largely unexplored. This paper provides evidence that wind energy consumption shocks may have played a significant role in actual food price spikes since 2005. Consumers and policy makers may be impacted by increased energy use wind turbine in the years to come.
Salari, M., Milne, R.J., Delcea, C., Cotfas, L. (2022). “Social distancing in airplane seat assignment for groups of passengers.” Transportmetrica B: Transport Dynamics, 10 (1): 1070-1098.
Abstract: We propose a Mixed Integer Programming (MIP) model for assigning aircraft passengers to seats while preserving two types of social distancing: distance between passenger seats and aisle and distance between groups of passengers who do not travel together. The method assigns passengers traveling within a family group seats close to others of the same group. We present a heuristic algorithm to solve the proposed MIP. This algorithm is hot started with an initial seat assignment. Stochastic simulation experiments using the new method confirm that more passengers can be safely assigned to seats when family groups are taken into account. For a number of passengers, as the percentage of family groups to single passengers increases, the model can practice social distancing between more passengers of different groups. The proposed model offers better seat allocation compared to an airline policy of blocking all middle seats.
Milne, R.J., Cotfas, L.A., Delcea, C. (2022). “Minimizing health risks based on the number of aircraft boarding groups” Transportmetrica B: Transport Dynamics, 10(1): 901-922.
Summary: Airlines and researchers have worked to reduce the health risk to passengers from the novel coronavirus SARS-CoV2. Recent literature indicates that the inverted pyramid boarding method poses a lower health risk than other boarding methods that use a limited number of boarding groups, while keeping the middle seats empty. With the primary aim of minimizing health risks, we determine the number of passengers to include in each boarding party when using the inverted pyramid method. We examine how optimal performance varies with carry-on volume, social distancing maintained between passengers walking down the aisle, and number of boarding groups. An increased amount of luggage increases the health risk, while changing the social distance in the aisle from 1m to 2m brings negligible value to the health of seated passengers. Increasing the number of boarding groups decreases the health risk to passengers while increasing the time required to complete boarding.
Alharbi, E.A., Abdel-Malek, L.L., Milne, R.J., Wali, A.M., (2022). “Analytical model to improve the adoptability of continuous descent approach at airports.” Applied Sciences 12(3): 1506.
Abstract: Continuous Descent Approach (CDA) is the flight technique that allows aircraft to continuously descend from cruise altitude with a throttle setting at idle and without leveling off, unlike Soft Descent Approach (SDA) in stairs. Important for the sustainability of air transport, the use of CDA reduces noise, fuel consumption and pollution. Nevertheless, CDA has been limited to low traffic levels at airports, often at night, as it requires a greater separation distance between arriving aircraft and, therefore, could reduce throughput. Insufficient attention has been paid to helping air traffic controllers decide when to use CDA. In this paper, we calculate the probability that an aircraft arriving during a particular short period of time (eg, 15 min) will have to return to SDA when the controller tentatively plans to allow CDA for all aircraft arriving during that period. If this probability is low enough, the controller can plan to authorize the CDA during this period. We use an analytical approach and a queuing theory framework that considers factors such as traffic and weather conditions to estimate likelihood. We also provide the number of aircraft that can be accommodated in airport storage using CDA. This number lets you know if a particular aircraft can use CDA.
Delcea, C., Cotfas, L.A., Milne, R.J., Xie, N., Mierzwiak, R. (2022). “Grey Clustering of the Variations in the Back-to-front Airplane Boarding Method Considering COVID-19 Flight Restrictions.” Gray systems: theory and application 12(1): 25-59.
Objective: The airline industry has been significantly affected by the outbreak of the novel coronavirus SARS-CoV-2, facing one of its worst crises in history. In this context, this article analyzes one of the well-known boarding methods used in practice by airlines before and during the coronavirus epidemic, namely back-to-front and suggests which variants of this method for use when three passenger boarding groups are considered and a jet bridge connects the airport terminal to the aircraft.
Design/Methodology/Approach: Based on airlines’ emphasis on operational performance, health risks, and passenger comfort, the variations of three groups of passengers at upstream boarding are divided into three clusters into using the gray clustering approach proposed by gray systems theory.
Findings: By having the clusters based on the selected metrics and considering social distancing between passengers, airlines can better understand how back-to-front variations behave under the new conditions imposed by the novel coronavirus and choose the onboarding approach that best suits its policy and objectives.
Originality/value: The article combines the advantages offered by gray clustering and agent-based modeling to propose to determine which are the best configurations that offer reduced onboarding time, while taking into account the reduction of risk for passenger health, measured through three metrics: Aisle Risk, Seat Risk and Type 3 Seat Interference and for increased passenger comfort manifested by continuous walking flow when boarding.
Paul, I., Parker, J., Dommer, S. (2022). “Role integration increases the fungibility of mentally accounted funds.” Journal of Marketing Research, forthcoming.
Abstract: Bridging the gap between mental accounting and the identity/role literature, this research examines the extent to which an individual’s personal roles (e.g., “employee” and “spouse”) are integrated (i.e. that is, have more flexible and permeable psychological roles). boundaries between them) moderates the fungibility of mentally accounted funds. Specifically, people with more integrated roles are better able to work around the constraints typically imposed by mental budgeting and assignment and are therefore more likely to use funds allocated or budgeted for a role to meet needs/wants of another role. This applies regardless of whether the funds have been (i) allocated to a larger, role-specific mental account for future spending or (ii) earmarked for a specific purchase. There is evidence that the role integration effect arises because those with more integrated roles feel that making purchases for one role using funds allocated or budgeted for the other role is more justifiable.
Diehl, A., Stephenson, A., Dzubinski, L. (2022). “Research: How Bias Against Women Persists in Female-Dominated Workplaces” Harvard Business Review Digital Articles, forthcoming.
Summary: New research examines gender bias in four sectors with more women than men: law, higher education, faith-based nonprofits, and health care. Having a balanced or even greater number of women in an organization does not, in itself, change women’s experience of bias. Bias is built into the system and continues to operate even when more women than men are present. Leaders can use these findings to create gender-equitable practices and environments that reduce bias. First, replace competition with cooperation. Second, measure success by goals, not time spent in the office or online. Third, implement fair compensation structures and provide flexible, remote work with autonomy. Finally, increase transparency in decision-making.
Stephenson, A., Sullivan, E., Hoffman, A. (2022). “Primary Care Physician Leaders’ Perspectives on Opportunities and Challenges in Health Care Leadership: A Qualitative Study” BMJ Leader, forthcoming.
Context: There is a growing demand for physicians to take on leadership roles in hospitals, health systems, clinics, and community settings, given the documented positive outcomes of physician leadership and systemic changes toward care value-based. The purpose of this study is to examine how primary care physicians (PCPs) perceive and experience leadership roles. A better understanding of how general practitioners view leadership offers the opportunity to influence changes in primary care training to better prepare and support physicians for current and future leadership roles.
Methods: This study used qualitative interviews, conducted from January to May 2020. Participants included 27 PCPs, recruited through Harvard Medical School Center for Primary Care newsletters and through snowball sampling techniques. Participants worked in 22 different organizations, including major city health systems, corporate pharmacies, public health departments, and academic medical centers.
Results: Using content analysis and qualitative comparative analysis methodologies, three major themes and seven sub-themes emerged from the interviews. Key themes included the importance of PCPs in leadership positions, lack of leadership training and development, and disincentives to lead.
Conclusions: While PCPs perceive primary care as uniquely positioned that would incline them towards leadership, lack of training and other noted disincentives are barriers to leadership. Therefore, healthcare organizations should seek to invest in, better train and promote PCPs in leadership.
Wang, W., Wang, Q., Wu, W. (2022). “Data Breach Announcements Surrounding Short Sale. Finance Research Letters, 47, 102690.
Abstract: This study examines whether short sellers detect enterprise-level data breaches. Using proprietary daily loan data and unique data breach announcements, we examine whether short selling anticipates corporate data breaches and how it performs over time before announcements. Using a unique experimental data breach framework, an abnormal level of short selling costs around data breach announcements indicates that short sellers are exploiting prior knowledge of data breaches. On a cross-sectional basis, we find that short selling activity is strongly correlated with negative cumulative abnormal returns (CARs). Furthermore, we provide evidence that short selling activities play a positive role in the capital market.
OnlineAtems, B. (2022). “The Impact of Technology Shocks on Entrepreneurial Job Creation: US and International Evidence.” 2021-2022 Reh Family Endowed Chair in Entrepreneurial Leadership Research Grant. The David D. Reh School of Business, Clarkson University.
Project Summary: What impact does the introduction of new technologies have on existing jobs and establishments that use older, possibly obsolete technologies? Workers’ hesitation and resistance to new technologies can sometimes stem from fear that a new technology will replace or eliminate jobs. However, technological innovations can create new jobs and establishments through creative destruction and promote job reallocation. Creative destruction posits that newly created highly productive jobs replace old, technologically obsolete jobs and ultimately lead to productivity growth. This project aims to study the impact of an unforeseen technology shock on macroeconomic variables and on job gains, losses, and reallocation between the private, goods, and services sectors in the United States and globally.
Crichton, R. (2022). “Discovering the Responsible Leader in the New Green Hydrogen Economy: An African Context.” Reh School of Business Sustainability Research Grant. The David D. Reh School of Business, Clarkson University.
Project summary: How responsible leadership can develop a stronger sustainable organizational culture and develop the organizational best practices needed to accelerate the transition to the new green hydrogen economy in Africa. I use a case study methodology to answer this question. More specifically, I aim to identify the best components of responsible leadership – skills, actions, practices, policies, culture, etc. which are already evident in the green hydrogen economy in every illustrated organization in Africa. It will include analysis of interviews with executives (semi-structured), review of internal documentation, press releases, CSR reports, gray books and a range of reports written by and about companies respective. I intend to use the “constant comparison” technique throughout the analysis, thus supporting the “grounded theory” approach. The results generated by this study will add new knowledge in the field of responsible leadership in a country-specific African context. Although the literature on the topic of leadership in an African context is abundant, multiple gaps exist in the literature when it comes to corporate social responsibility. As such, the corporate social responsibility literature will be increased and a much needed article on diversity will be added, including related misconceptions in the field.
Felzensztein, C. (2022) “The Path to Entrepreneurship and Economic Growth in Cuba.” Reh School of Business Sustainability Research Grant. The David D. Reh School of Business, Clarkson University.
Project summary: How does the family as a unit contribute to eco-sustainable rural tourism in Cuba? Can this be successfully implemented in a country facing external constraints? Do individual eco-sustainable rural tourism initiatives collaborate with each other to create an eco-cultural rural tourism cluster?
The research aims to answer the above questions. We focus on the geographical area of the province of Pinar del Rio (Viñales) in Cuba. The Viñales Valley is a UNESCO World Heritage site for ecotourism. The province depends on tobacco growing, with Pinar Del Río producing 70% of the Cuban crop used to make the cigars so prized abroad, making it the only source of income for many rural families. I will conduct semi-structured interviews with at least 10 family micro-enterprises, including casas particulares. It is also planned to have another 5 to 10 additional interviews with other participants in rural ecotourism activities. The excerpts from interviews and the topics covered will be presented in the form of qualitative results. The use of this approach is fundamental to obtain reliable, credible and in-depth information in the Cuban rural context. The interviews will then be subject to content analysis. This will help to understand how and in what ways these family micro-entrepreneurs started their business, how they survived in this difficult economic context and the role played by family support in this particular context of regional ecotourism-rural for sustainable development. , with many of them operating in informal settings.
Li, Q., Bird, S., Powers, S., Ortmeyer, T., Jiang, L. (2022) “The Transition to a Sustainable and Reliable Electricity Transmission Grid System.” Team Science Project Planning Grant Initiative, Clarkson University.
Project Summary: This project addresses multiple technological and socio-economic challenges for the transition to a sustainable and reliable electric transmission grid system with affordable economic costs and environmental benefits. The project will examine the dynamic interactions between these challenges, develop power grid algorithms, and assess socio-economic policies within the changing scientific and institutional realities of the future transmission grid system.
Lin, G. (2022) “Blockchain Application in Smart Car System.” Commercialization of Clarkson Technology Micro research Grant. Shipley Center for Innovation, Clarkson University.
Project summary: With the development of the automotive industry and the popularization of 5G networks, the Internet of Vehicles has undergone rapid development, and the data privacy and reliability issues in the Internet of Vehicles have been exposed. After the vehicle is connected to the Internet, it is easy to track the user’s private data sent by the vehicle, such as name, location, location, etc. Once this data is leaked, it will cause great harm to car owners. However, once the user’s privacy is protected or anonymous, they can post fake news without revealing their identity. Blockchain technology has developed rapidly in recent years and has been applied in many fields. In order to solve the current problems of data privacy and reliability in the Internet of Vehicles, this project introduces blockchain technology into the Internet of Vehicles and uses the characteristics of blockchain decentralization and anonymity to solve the data privacy issues in the Internet of Vehicles. Vehicles. By designing a reasonable mechanism, problems such as data reliability in the Internet of Vehicles can be solved. However, due to the large number of vehicular internet terminals and high mobility, the application of blockchain technology to vehicular internet faces problems such as low blockchain scalability and lack of incentives. for users to share information, which makes the system difficult to operate continuously. For this reason, this project first presents the background of the subject and the state of research on the introduction of blockchain technology in the Internet of Vehicles. Based on the year analyzes current issues of data privacy and data reliability in the Internet of Vehicles, the project summarizes the state of the art of blockchain technology, analyzes the benefits and existing problems of using blockchain to address data confidentiality and reliability issues. of Vehicles, and summarizes the current existing solutions and problems that use blockchain technology to solve data security and data reliability problems of the Internet of Vehicles.
Madraki, G. (2022) “Mitigate social media vaccine hesitancy among US users in communities facing health disparities.” Reh School of Business Sustainability Research Grant. The David D. Reh School of Business, Clarkson University.
Project summary: The third Sustainable Development Goal defined by the United Nations is to ensure “good health and well-being”. Achieving this goal has become even more difficult since the start of the global pandemic. One of the main challenges to achieving this goal relates to vaccine hesitancy and anti-vax mentalities that threaten healthy living around the world. This project seeks to answer the question “What is the optimal way to mitigate vaccine polarization on social media with minimal manipulation”.
Mahapatra, S. and Lin, G. (2022) “Factors Contributing to Carbon Footprint Reduction in Supply Chains.” 2021-2022 Joel Goldschein ’57 Chair Fellowship in Supply Chain Management. The David D. Reh School of Business, Clarkson University.
Project summary: This research aims to investigate the motivations, processes and approaches of carbon footprint reduction efforts and their economic consequences based on the analysis of the finances and supply chains of S&P listed companies. 500.
More specifically, the project has the following objectives:
The research will involve empirical, theory-driven analysis of the links between contingencies, supply chain operations, management and control systems, and the environmental and financial performance of S&P 500 companies. We will use secondary data from the Carbon Disclosure Project (CDP) to answer this question. CDP data collection follows the World Resource Institute GHG Emissions Calculation Protocol (Lee, 2011). We will complement environmental data from CDP reports with financial data from the Compustat database. Given the legitimacy and authenticity of the CDP and Compustat databases, our data set will have a high degree of reliability.
Mette, J. and Lin, G. (2022) “Wind Energy Use and Consumer Food Prices: Evidence for Energy Policy Change in the United States and China.” Reh School of Business Sustainability Research Grant. The David D. Reh School of Business, Clarkson University.
Project Summary: The Energy Act of 2005 and the Energy Independence Act of 2007 solidified the United States’ focus on renewable energy sources. At the time, the use of wind energy increased 15 times in less than 20 years, and food prices also increased. Similarly, China passed the Renewable Energy Law in February 2005 to promote the transition from non-renewable to renewable energy. The law entered into force on January 1, 2006. This law obliges electricity grid operators to purchase all wind energy produced by registered generators. Financial incentives include a national fund to promote renewable energy development and reduced loans and tax benefits for renewable energy projects. Since then, electricity generation from wind power has increased from around 2500 MW to 6000 MW in 2007.
Although the link between these food price increases and other renewable energy sources has been extensively treated, the literature has said little about the contribution of the use of wind energy. First, this article hopes to provide evidence that wind energy consumption shocks explain an increasing share of food price variation since 2005 in the United States and China. The decisions of consumers and decision-makers may be impacted by this discovery, as wind represents an increasing share of national primary energy consumption. Second, we also try to explore the relationship between wind energy consumption and consumer food prices. We will perform statistical analysis of time series using Granger causality tests. Finally, we will compare the two countries and see if Chinese policymakers can learn from wind policy in the United States to help promote China’s renewable energy.
Mousavian, A. (2022) “Electricity Supply Chain – From Cyber-Physical System Security to Integrated Energy Markets.” 2021-2022 Joel Goldschein ’57 Research Fellowship in Supply Chain Management. The David D. Reh School of Business, Clarkson University.
Project Summary: In this research, we investigate the charging frequency control of a linearized two-zone power system in the presence of electric vehicle fleets. Each area of the electrical system includes fleets of electric vehicles, thermal, gas and hydroelectric units. Decentralized controllers are considered for each of these units, and Kharitonov’s theorem is used to identify the PI controller parameters of each unit. We investigate a hypothesis to design a controller based on a linear system but use it for load frequency control of the nonlinear system, including physical constraints such as delay and generation rate, and evaluate the trade-off between controller performance and reducing the complexity of the design process. Then, the performances of the proposed method are studied according to the variation of load, the attacks on the communication of the fleets of electric vehicles and the variations of the parameters of the system.
Yu, D. (2022) “Optimal Pricing and Sourcing Strategies for an Online Platform with Access to Vendor Managed Inventory.” 2021-2022 Joel Goldschein ’57 Chair Fellowship in Supply Chain Management. The David D. Reh School of Business, Clarkson University.
Project Summary: The proposed research project will investigate the optimal pricing and sourcing decisions of an online platform when platform1 can purchase inventory from a manufacturer (p. We consider two distribution channels competitors through the online platform. One is the platform’s own online sales channel using its own inventory or the manufacturer’s VMI. The manufacturer can use the platform’s online retail services to sell its own inventory through an OEM direct channel Both the platform and the manufacturer must determine retail prices to compete with market demand with customers who have a diverse preference in retail channels. of customers is captured by a demand function of the prices of the two substitutable distribution channels: the retail channel of the online platform and the direct sales channel of the manufacturer. We will investigate the optimal manufacturer platform and pricing decisions under two different scenarios with a cooperative dual-channel competition framework. Our study will take the perspective of the online platform to assess the impact and effectiveness of consignment and wholesale price contracts when the platform can purchase its inventory or use the manufacturer’s VMI.
Mahmoodi, F. 2022 Clarkson University Lifetime Achievement in Research and Scholarship Award.
Milne, F. 2022 Reh School of Business Research Award.
Xiang, C. Reh School of Business Teaching Award 2022
Zebedee, A. 2022 Reh School of Business Service Award.
