Mahendra R. Gujarathi

Service-Learning in Business Schools: A Case Study in an Intermediate Accounting Course.

Abstract Universities cannot afford to remain shores of affluence, self-importance and horticultural beauty at the edge of island seas of squalor, violence and despair. Emphasizing service has the potential to enrich learning and renew communities, but will also give new dignity to the scholarship of service. Ernest Boyer(1994) In this article, the authors provide guidance regarding implementation of service-learning projects as an active learning strategy in business courses. Their experience in the use of service-learning assignments in an intermediate accounting course revealed 5 steps necessary for a successful service-learning platform: developing institutional and individual conviction for the value of community service, developing alliances with the community agencies, establishing the pedagogical legitimacy of service-learning, motivating the faculty and students about the benefits of service-learning, and selecting appropriate assignments. Their results indicate that service-learning assignments fit the scope of business courses while helping to promote the goals of relevant management education.

Dividend Imputation Systems in Industrialized Countries: An Examination of Relative Tax Burdens

Abstract Dividend taxation has been a controversial issue especially since the enactment of the 2003 U.S. legislation entitled “Jobs and Growth Tax Relief Reconciliation Act” (JGTRRA). This paper presents taxonomy of dividend tax systems and illustrates dividend relief practices in the OECD (Organization for Economic Cooperation and Development) countries. None of the OECD countries follow the conduit (i.e., full imputation) system, and the classical system (where double taxation of dividends occurs) prevailed only in one country (Ireland) other than U.S. in 2003. Dividend imputation in most of the OECD countries is only partial and takes place at the shareholder level in the form of tax credit or split rate. The paper also demonstrates a method to compute the effective tax rates (corporate plus individual taxes) on dividends, and presents such rates for the OECD countries. In comparison with the average dividends tax rate of 39.6% in other OECD countries, the U.S. had a rate of 60.7%, which JGTRRA has brought down to 44.8%.

Using Design Thinking to Write and Publish Novel Teaching Cases: Tips from Experienced Case Authors.

With increasing calls for a greater connection between management education and practice, teaching cases play a vital role in the business curriculum. Cases not only allow instructors to expose students to practical problems but also let educators contribute to the scholarship of teaching and learning. An important reason why faculty members may refrain from writing cases is they perceive it is difficult to develop publishable cases that are also novel. Reviewers of the journals that publish teaching cases are increasingly asking authors to place the case in the extant literature and explain what makes their case unique. To overcome some of the challenges encountered when attempting to write and publish novel teaching cases, this article presents a useful framework—Design Thinking—for tackling the “wicked problem” of developing novel cases and provides experience-based tips to implement the framework. By introducing the concepts and language of design thinking, we provide case writers with an iterative approach that leads to the development of novel cases by identifying and innovatively addressing instructors’, students’, and editors’ demands. We argue that by applying a design-thinking approach, case writers can produce novel and publishable instructional cases.

Do New Equity Issues Fetch Extranormal Returns

Do new equity issues earn attractive returns after adjusting their risk? To answer this question, Gujarathi analyses empirical data on 98 randomly selected new security issues made between 1970 and 1978. He considers the returns from the date of the closure of the subscription list to the date of its first market quotation. Gujarathis analysis shows that an average investor earned an attractive extranormal return of 2.44 per cent per month after adjusting for the risk and the time value of money. He has also tested many of the popular beliefs of investors.

Global Economic Meltdown: Greenspans Legacy

In the event of statedly the deepest global crisis ever since the Great Depression, with the world economy mired in a severe economic meltdown, Samir K Barua and Mahendra R Gujarathi identify the factors and the players that incubated and nurtured the meltdown. The policies of deregulation, monetary expansion, and fair value accounting are specifically addressed in a historical perspective. The authors offer an insight into how sequentially the lawmakers first created the potent environment for risk-taking through unrestrained deregulation, the Federal Reserve then set the stage for the crisis with a policy of unbridled monetary expansion, and the accounting standardsetter finally relaxed norms to provide support for hiding the losses incurred� thus together fuelling the crisis. Although several trillions of dollars have been pumped into the market to maintain the credit flow, it is yet uncertain as to how the crisis will impact in the long run, the authors conclude on a cautionary note.

Effectiveness of minimum tax legislation and its effect on corporate financial reporting: A comparative analysis between the United States and India

Abstract This paper reports a comparative analysis of the experience of introducing minimum tax legislation in the US and India. Given the differences in the economic and market settings in the two countries, one would expect the impact of the regulation and the corporate response to its introduction to be different. Our empirical analysis, however, indicates that the response to the minimum tax legislation in India is very similar to that in the US. The evidence indicates that the minimum tax legislation is not the best means of achieving horizontal equity among taxpayers, given its significant administrative and compliance costs and the manipulative reporting response it generates from the corporate sector.