John B. Mitchell

Attractiveness, easiness and other issues: student evaluations of professors on Ratemyprofessors.com

Felton, Mitchell and Stinson (2004) reported that web-based student evaluations of teaching (SET) demonstrated a student preference for course easiness and instructor sexiness. This study explores these same relationships with a larger and improved database. Results indicate even stronger relationships than previously reported. In addition, this study demonstrates significant cultural differences by institution and discipline in the relationships between quality, easiness, and hotness in web-based SET.

Financial implications of accounting for human resources using a liability model

Purpose – The purpose of this paper is to: discuss how reporting under a human resource liability paradigm fits into the traditional accounting framework of contingent liabilities; examine the financial effects of such reporting on market valuation and internal planning; and explore measurement of human resource liabilities. Design/methodology/approach – From reviews of financial effects of human resource liability reporting the paper logically extends those results to support the proposed paradigm. Findings – Accountants already recognize some liabilities resulting from future expenses for past labor. A fuller treatment of expected costs from human resource polices would provide external and internal financial analyst with different and useful information. Recognizing these future expenses will depress asset turnover and return on asset calculations, while increasing estimates of risk such as higher debt ratio, lower cash flow coverage and higher degrees of operating leverage. Originality/value – The paper provides support for the feasibility and need to adopt a human resource liability paradigm for valuing, reporting and managing human resources.

Real GPA and Real SET: Two Antidotes to Greed, Sloth, and Cowardice in the College Classroom

Recently published evidence of limited learning among American college students confirms the damage done when students, faculty and institutions pursue interests that conflict with the educational process. The ‘disengagement compact’ in which faculty tacitly trade lenient workloads and grading for higher student evaluation of teaching (SET) scores and fewer complaints from students does damage wherever it operates. The work of Johnson confirms the link between SET and grade inflation. We propose a modification of an earlier grade index, the Real Grade Point Average (GPA), and propose as well an index for SET scores, the Real SET, to make inflated grades and inflated SET scores more visible. Used by institutions, parts of institutions or individual faculty, Real GPA and Real SET would encourage and protect faculty and students who offer or seek out educational experiences that have not been deflected by greed, sloth or cowardice.

Sequence Risk: Managing Retiree Exposure to Sequence Risk Through Probability of Failure Based Decision Rules

• This paper broadens the perspective on sustainable distributions by expanding into three dimensions, introducing transitory states as well as all those states existing simultaneously.• Withdrawal rates alone do not tell a complete sustainable distribution story; withdrawal rates are time dependent. • The Probability of Failure (POF), a time independent variable, is more useful for true comparison of withdrawal rates over any time period or asset allocation.• Comparison of POF surfaces, and their shift between strategies, illustrates how effective one strategy is as compared to another. • The methodology presented provides an ability to evaluate sustainable withdrawal rates and exposure to sequence risk together.

An Age-Based, Three Dimensional, Universal Distribution Model Incorporating Sequence Risk

The authors develop an Age-Based Three Dimensional Distribution Model that illustrates a retiree transition from early retirement into later retirement, including superannuated years for the long-lived who continue to survive. The model for this concept development simultaneously: 1) Establishes an age-based distribution model; 2) Incorporates current age life expectancy directly into the model; 3) Addresses survivorship into superannuated ages; 4) Addresses sequence risk to incorporate decisions due to market changes as the retiree ages.

A Modified Life Expectancy Approach to Withdrawal Rate Management

This research explores the costs and benefits of modifying life expectancy (planning horizon) within a multiple-factor withdrawal management strategy. Stochastic optimization of Monte Carlo simulation analysis using data from 1926-2009 is employed within a seven-factor control limit model. This research contributes to the literature by modifying the planning horizon to avoid excessive withdrawals by those retirees most vulnerable to ruin. Previous research has found that many of the portfolio failures occur in the final years of life. A more conservative approach to the final years potentially protects those retirees with the worst portfolio performance. This modification of the retirement planning model allows the majority of retirees to adopt more aggressive withdrawal rate strategies earlier in their retirement. This model improves upon previous research by enhancing the median lifetime average withdrawal rate while maintaining less than a .1% probability of ruin. The efficacy of expected longevity modification is demonstrated for new retirees aged 55 to 75.

The Stock Market Reaction to Plant Closings

This paper is an event time study of the valuation effects of a sample of eighty-two permanent closings. The traditional approach to project termination decisions suggests that common stock prices should increase around the date on which firms publicly announce the termination of a projects. However, the empirical results of this study indicate that, on average, no significant changes in shareholder wealth are associated with the closing down of capital assets.

Nudge: An Application in Retirement Planning

This paper reviews principles of behavioral finance as applicable to retirement withdrawal planning, discusses common retirement planning problems, reviews relevant law, and proposes an application of Thaler and Sunstein’s NUDGE (2008). The paper includes a proposal for modification of federal retirement plan law to encourage behavior which will lead to reduced risk of ruin for retirees and concludes with the implications for retirees, the federal government, and financial institutions.

Soybean Crush Spread Arbitrage: Trading Strategies and Market Efficiency

This paper revisits the soybean crush spread arbitrage work of Simon (JFM, 1999). Major findings are that contrary to the results reported by Simon, the length of winning and losing trades differ systematically. Winning trades are significantly shorter on average than losing trades. This result leads to trading rules designed to prevent lengthy trades. Secondly, the work by Simon employs symmetric entry and exit limits. That approach assumes that the market overshoots equilibrium. This research studies a wide variety of entry and exit limits and the risk-return relationship between the entry and exit limits.