Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.Evaluate the quality of the problem statement. What elements meet quality requirements? Why? What elements require quality improvement? Why? 2.For the elements requiring quality improvement,

1.Evaluate the quality of the problem statement. What elements meet quality requirements? Why? What elements require quality improvement? Why?

2.For the elements requiring quality improvement, what specific corrective steps in formulating a researchable problem would you recommend to each author?

3.Based upon THE review of the sample problem statement, what are the criteria should be use to evaluate the problem statement?

Problem Statement

Earnings surprises can result in declines in firm market value, create questions regarding management competence, and lead to executive termination (Feng & Koch, 2016; Habib & Hossain, 2018).As a means to reduce earnings surprises, managers voluntarily issue earnings guidance to establish earnings expectations and to communicate news to reduce the extent of asymmetric information between management and investors (Hirst, Koonce, & Venkataraman, 2017; Kim & Park, 2019).Development of earnings guidance requires management decisions, and decision-making occurs in an environment of uncertainty (Artinger, Petersen, Gigerenzer, & Weibler, 2015).Decision-making uses both rational cognitive thought processes and intuition (Akinci & Sadler-Smith, 2016; Kahneman, 2017).

The social problem is that earnings surprises may result in a drop of firm market value of up to 7 percent, increase a firm's cost of capital, and create a perception that management is incapable of running the company (Feng & Koch, 2018; Goodman, Neamtiu, Shroff, & White, 2017). The specific management problem is that bad decisions regarding management earnings guidance may cause earnings surprises for public companies headquartered in the United States, and the bad decisions may or may not result from a decision-making process that balances rational cognition, intuition, and the influence of psychological factors such as hubris and power (Fast, Sivanathan, Mayer, & Galinsky, 2018).This study extends prior research regarding the role of evidence and intuition in management decision-making and the influence of psychological factors such as hubris and power to the topic of management decision-making (Francis-Smythe et al., 2017; Garcia 2016).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Restaurant From Concept To Operation

Authors: John R Walker

5th Edition

0471740578, 9780471740575

More Books

Students also viewed these General Management questions

Question

What functions might this behavior be serving?

Answered: 1 week ago

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago