We propose and empirically test a new hypothesis that managers rationally choose between specific channels of earnings management to meet earnings benchmarks. Prior research documents that managers are ready to interfere with the neutrality of financial reporting process to report earnings above zero, earnings above last year's earnings, and earnings above analysts' forecast. However, there is a controversy over whether this earnings management to meet or beat earnings benchmarks is intended to distort investors' view by delaying the disclosure of bad news or whether it is intended to communicate managers' private information about the firm's strong future performance. We argue that the credibility of the earnings management signal crucially depends on the cost of its imitation. As revenue management is more costly to imitate than cost management, we argue that managers who intend to send a credible signal about their firm's future performance likely boost revenues rather than depress costs. To test this prediction, we use a recently developed model of discretionary revenues that is arguably more powerful in detecting earnings management than traditional techniques. The empirical results are consistent with our predictions for the most important earnings benchmark - the consensus of analysts'...

Since its foundation, revenue management techniques on aggregate have added billions of dollars to many firms' bottom lines, while using existing products or services and existing sets of consumers (Cross, Higbie, and Cross, 2010). The recent rapid changes in the business environment have forced firms to adopt strategies that will fit their overall strategies to aid in their survival and success (Pechlaner and Sauerwein, 2002). As a result of the modern reality of business, academic literature has not yet been able to address many important considerations. An example is RM implementation strategies and the performance outcomes as a result of these decisions. This study investigated the advantages and disadvantages of implementation of RM strategies; in-house, centralized, and outsourced. This was followed by the make or buy decision, specifically focusing on Transaction Cost Economics and the Resource Based View to investigate antecedents of outsourcing intention, and if and how these different strategies affect hotel properties' performance. Data were collected using an online survey of lodging properties located in the U.S. in October 2014. A total of 374 usable responses for outsourcing intention study and 591 usable responses for the performance study were collected. Factor analysis, hierarchical multiple regression, repeated measures ANOVA, regression analysis, and pairwise comparison analysis were the statistical analyses used in the study. The results found that specificity is significant and negatively associated with outsourcing intention. In addition, uncertainty is significant and positively associated with outsourcing intention as proposed. The moderating effect of organizational capability is significant and changes from base model to final model with the moderator being statistically significant. The findings of regression and a pairwise comparison test confirmed the difference in strategy choice on performance for US hotels, giving us insights into the importance of selecting the strategy that is optimal for a given property. / Ph. D.

Esta investigación se centró en el análisis de los modelos y metodologías para la fijación de precios en habitaciones de hoteles con la finalidad de establecer la metodología adecuada dependiendo si el hotel es de cadena o independiente.  Se desarrolla con la finalidad de presentar las metodologías para establecer precios de habitaciones que puedan ser usadas, tanto para fines académicos como en el ejercicio profesional de los hoteleros. Se utilizó la metodología de revisión bibliográfica, partiendo del análisis de publicaciones académicas acerca de metodologías/modelos utilizados en hoteles para la fijación de precios de habitaciones, preferentemente generadas dentro del periodo 2013 hasta el 2020. Se usó como base investigaciones previas sobre la aplicación del revenue management en hoteles, los cuales tienen en cuenta que el precio es uno de los factores más importantes en la decisión de compra de los consumidores. Como resultado se obtuvo que el revenue management se dirige a hoteles de cadena, mientras que el modelo de Hubbart es preferible en hoteles de una categoría menor enfocados en la competencia por costos. Por último, el modelo hedónico puede ir dirigido a cualquiera de los establecimientos, ya sean estos independientes que no tienen acceso a un software más sofisticado, u hoteles parte de una cadena. / This research focused on the analysis of models and methodologies for price setting in hotel rooms in order to establish the appropriate methodology depending if the hotel is part of a chain or independent. It is developed with the purpose of presenting methodologies to establish room prices that can be used for academic and professional purposes of hoteliers. The methodology for the bibliographic review was based on the analysis of academic papers about methodologies and models used in hotels for setting room prices, preferably within the period 2013 to 2020. Previous research on the application of revenue management in hotels was used as a basis, which establish that price is one of the most important factors in the purchase decision of consumers. As a result, it was found that revenue management is aimed at chain hotels, while the Hubbart model is more suitable for hotels of a lower category focused on price competition. Finally, the hedonic model can be used by all the establishments, these being independent with no access to sophisticated software, or even hotel chains. / Trabajo de investigación

The purpose of this study is to analyze the impact of rapid growth on the various revenue and expenditure categories at the local level. A model is presented to project local revenues and expenditures based upon projected per capita income, population, and average daily attendance. The model is based upon previous models from a review of the literature with modification and additions by the author. Revenues and expenditures are estimated simultaneously reflecting the budgetary process at the local level. Coefficients in the model are estimated using sample data from Duchesne and Uintah counties. These coefficients are then used to project the effects of oil shale development in the region. Different policies and changes in current policies are presented to lessen or alleviate the adverse impacts of rapid growht on local cities and school districts.

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Crop revenue insurance is an exception in the insurance industry offering a guarantee subsuming a highly systematic risk- price variability. This study examines whether crop insurance companies could use put and call options to hedge the price risk present in corn revenue insurance. The behavioral model used to examine hedging optimization behavior of a crop producer with crop insurance by Coble, Heifner, and Zuniga (2002) is modified to examine optimal hedge ratio of a company selling revenue insurance. The crop insurance summary of business from 1985-2015 for corn revenue policies was simulated. Corn futures prices were collected from the Commodity Research Bureau databases. Results show that net return from call and put options can hedge indemnities paid by corn RP and RP-HPE resulting from the price variability in some scenario. This suggests hedging the price risk of corn revenue insurance through options could be a viable practice for crop insurers.

The collective body of U.S. legislation, colloquially known as the Farm Bill, authorizes a suite of practices and programs under its Conservation Title. This includes the Conservation Reserve Program (CRP), which incentivizes agricultural producers to remove arable land from production to enhance soil retention, improve water quality, and restore wildlife habitat. Conservation Practice 33: Habitat Buffers for Upland Birds (CP-33) was the first CRP practice to target wildlife habitat restoration. CP-33 incentivizes producers to reestablish native herbaceous vegetation along crop field margins. Producers are often concerned with the economic opportunity costs of CP-33 enrollment. I used yield data derived from 44 agricultural fields in the Mississippi Alluvial Valley, USA to compare the environmental and economic opportunities associated with CP-33 establishment. I used yield data to develop a revenue distribution function to illustrate CP-33 revenue as commodity prices fluctuate. I found that as commodity prices increase, CP-33 implementation becomes less profitable.

This study examined the implementation and assessment of revenue-based budgeting at a medium-size, private, mission-based graduate school of education (SOE), under the pseudonym Peter Claver University (PCU). Additionally, two other similar schools were included in the study because they used revenue-based budgeting for a period of 10 years or longer and their missions were comparable to that of PCU’s SOE. A survey and three interviews were conducted with the deans of the three schools and responses were subjected to content analysis and triangulation. Points of consensus between the deans were the following: a strong favor for the revenue-based budgeting model; the desire for regular assessment to determine the success of the revenue-based budget and to update the model based on new economies and forecasting; the belief that revenue-based budgeting would give the deans more control over their schools’ futures; and the conviction that revenue-based budgeting provided the deans with the flexibility to accomplish the strategic goals of the school. The major findings included that budget models need to be tailored to the institution’s goals and academic objectives; no specific revenue-budget formula fits all institutions; SOEs will be successful by having an interdependent financial model; deans are expected to be financially savvy; there are no service level agreements between SOEs and the service departments; SOEs with higher percentage of faculty receiving grants can be more innovative; assessment of the revenue-based model on an as-need-basis and rarely happens; and deans are supportive of a revenue-based budget model.

States are facing tough economic times as a result of the housing market bubble exploding. States have been declaring budget deficits and major program cuts, since revenues have not kept up with expenditures and rainy day funds have been practically exhausted. State tax revenues have decreased, resulting from a decline in income tax revenues, one of the major sources of revenues for a large number of states (41 in total). A majority of these states have come to depend heavily on the revenue they collect from income taxes, which can represent as much as 40% of state tax revenue. This thesis focuses on the impact that income tax revenue has on state budgets and how it affects certain expenditures. To provide a more complete understanding on how fiscal policy affects the citizen directly, this thesis compares the changes in state's total tax revenue and spending on education and health programs between states that levy income tax and states that do not. Data from the United States Census Bureau and the National Association of State Budget Officials was analyzed by calculating the growth rate and relevant elasticities during 2006-2010, the years before, during, and after the last recession. Results will show a difference in changes in revenue and expenditure between the two types of states and a more sensitive elasticity for non-income tax states for both revenue and expenditure. With a better understanding of how the tax base behaves and how revenue affects programs, an improved tax policy that could produce more efficient services for citizens might be created.

The Strategy Simulator project, funded by the Federal Aviation Administration (FAA), strives to find a tax structure that will support the National Airspace System (NAS) and maintain revenue neutrality, where taxes can be adjusted and the FAA can still attain the same revenue amount if taxes had not changed. Virginia Tech's role in the project is to analyze the effects of different tax structures on passenger demand. Virginia Tech focuses on ticket and segment taxes and runs different tax scenarios through the Transportation Systems Analysis Model (TSAM) and the TSAM Aggregation for the Strategy Simulator (TASS) model. TSAM provides a more microscopic analysis of demand by including spatial representation and mode choice in the model. TASS is a work in progress that aggregates the TSAM analysis in order to reduce computation time so that scenarios can be tested quickly. Based on data from literature review, TSAM results provides the smallest combined percent error for demand and revenue, followed by TASS, then the Strategy Simulator. TSAM and TASS also provide a detailed analysis of demand behavior in response to tax changes. In general, demand decreases as taxes increase, and demand increases over the years due to a fare scaling factor applied to reduce fares over the years. Revenue increases both over increasing taxes and over the years, indicating that increases in taxes does not harm revenue collection and actually increases revenues for the ticket and segment taxes tested. Revenue increases over the years because demand increases over the years, and the revenue generated from this increased demand more than makes up for decreased fares. / Master of Science