Gong

Accounting Faculty Research


Featured Article from Contemporary Accounting Research


Gong, J., Van der Stede, W., Young, M. (2011). Real Options in the Motion Picture Industry: Evidence from Film Marketing and Sequels. Contemporary Accounting Research, 28(5), 1438-1466.

 

Abstract: Analyzing decisions using the real options framework has been attracting increasing interest. Real options create an opportunity for firms to postpone a business decision and provide executives with flexibility to react to outcomes that arise under conditions of uncertainty. Real options reasoning recognizes that executives incur costs and invest in stages based on new information and are faced regularly with the alternative of continuing to invest in, or abandoning, projects. In this paper, we use project-level data from the U.S. motion picture industry – an industry filled with uncertainty – to test predictions from the real options framework. Specifically, we focus on two real options facing a film studio: the abandonment option of whether to halt marketing after a film’s opening weekend, and the growth option of whether to invest in a sequel. We also test, and find support for, the prediction that studios incur higher production costs for sequels than for nonsequels. In summary, our findings suggest that cost incurrence in settings characterized by highly uncertain investment payoffs that involve staggered resource commitments is consistent with conjectures based on real options reasoning.


Articles in top-tier refereed academic journals


Alali, F., Foote, P. S. (2012). The value relevance of international financial reporting standards: Empirical evidence in an emerging market. International Journal of Accounting, 47(1), 85-108.

 

Deboskey, D., Jiang, W. (2012). Earnings management and auditor specialization in the post-SOX ear: An examination of the banking industry. Journal of Banking and Finance, 36, 613-623.

 

Gong, J. (2011). Examining Shareholder Value Creation over CEO Tenure: A New Approach to Testing Effectiveness of Executive Compensation. Journal of Management Accounting Research, 23(1), 1-28.

 

Gong, J., Van der Stede, W., Young, M. (2011). Real Options in the Motion Picture Industry: Evidence from Film Marketing and Sequels. Contemporary Accounting Research, 28(5), 1438-1466.

 

Son, M., Crabtree, A. (2011). Earnings announcement timing and analyst following. Journal of Accounting, Auditing and Finance, 26, 443-468.

 

Cram, D. P., Karan, V., Iris, S. (2009). Three threats to validity of choice-based and matched sample studies in accounting research. Contemporary Accounting Research, 26(2), 477-516.

 

Bryan-Kutcher, L., Eiler, L., Guenther, D. A. (2008). Taxes and Financial Assets: Valuing Permanently Reinvested Foreign Earnings. National Tax Journal, 61(4), 699-720.



Articles in refereed journals


Alali, F. (2011). Audit Fees and Discretionary Accruals: Compensation Structure Effect. Managerial Auditing Journal,
26(2),
90-113.

 

Alali, F., Pan, F. (2011). The use of Audit Software: Review and Survey. Internal Auditing, September/October, 29-36.

 

Alali, F., Jaggi, B. (2011). Earnings versus Capital Ratios Management: Role of Bank Types and SFAS 114. Review of
Quantitative Finance and Accounting, 36(1),
105-132.

 

Alali, F., Anandarajan, A., Jiang, W. (2011). The effect of corporate governance on firm’s credit ratings: further evidence using governance score in the United States. Accounting and Finance, DOI: 10.1111/j.1467-629X.2010.00396.x, 1-20.

 

Badua, F. A., Sharifi, M., Watkins, A. L. (2011). The Topics, They Are A-Changing: The State of the Accounting Information Systems Curriculum and the Case for a Second Course. Accounting Educators' Journal, XXI(2.011),89-106.

 

Chavis, B., Sharifi, M. (2011). Internal Auditing Education Partnership (IAEP): An essential response to IA's role in corporate governance. Internal Auditing, 26(4), 17-24.

 

Grant, G. H., McDonald, P., Sharifi, M. (2011). The Strategy Audit. Internal Auditor, LXVIII(VI), 37-40.

 

Grant, G. H., Moffett, R. (2011). Internal Controls and Fraud Prevention. Internal Auditing, 26(2), 3-12.

 

Mande, V., Son, M. (2011). Do audit delays affect client retention? Managerial Auditing Journal, 26, 32-50.

 

Petruzzi, C. R. (2011). From minutes to microseconds. Investments & Wealth Monitor, 25(6),8-10, 32.

 

Wright, K. (2011). The Aftermath of California's Proposition 26. State Tax Notes, 62,471-481.

 

Wright, K. (2011). The Elusive Source of Royalty Income. State Tax Notes, 61,857-867.

 

Wright, K. (2011). Cracks in the California Budget. State Tax Notes, 61,497-510.

 

Wright, K. (2011). The Unintended Consequences of Gross Receipts "Taxes". The Tax Lawyer [ABA], 64(4),250-287.

 

Wright, K., Small, J. (2011). Uncertain Tax Positions for Flow through Entities: What is an Income Tax?. The Tax Adviser,
42,
410-424.

 

Wright, K. (2011). Solutions for the Mobile Work Force Withholding/Reporting Dilemma. State Tax Notes, 60,949-959.

 

Wright, K. (2011). States versus Obama's Healthcare Law. State Tax Notes, 60,659-669.

 

Wright, K. (2011). New Dimensions of California Nexus for 2011. State Tax Notes, 60,43-53.

 

Wright, K. (2011). Licensing the Use of Software: Microsoft v. FTB. State Tax Notes, 59,627-637.

 



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