Journal of Applied Business Research (JABR) https://www.clutejournals.com/index.php/JABR <p><strong>Published since 1985</strong><br>ISSN 0892-7626 (print), ISSN 2157-8834 (online)<br>The Journal of Applied Business Research (JABR) welcomes articles in all areas of applied business and economics research.</p> Clute Institute en-US Journal of Applied Business Research (JABR) 0892-7626 Meeting Or Beating Analysts’ Revenue Forecasts Using Advertising Activities https://www.clutejournals.com/index.php/JABR/article/view/10320 <p>This paper investigates the relationship between the likelihood of accomplishing the revenue expectations and the use of firms’ advertising expenditures depending on firms’ growth properties. First, using the analysts’ revenue forecasts as a proxy of revenues expected by market participants, the test shows that growth firms spend more resources in their advertising activities to boost up their reported revenues than non-growth firms do. The paper also examines whether the effect of the interaction between the growth properties of firms and the use of advertising expenses on the probability of achieving analysts’ revenue forecasts can vary conditionally on firms’ business strategies. Empirical results display that the positive relation between growth firms and the probability of meeting or exceeding analysts’ revenue forecasts are statistically significant for cost leadership firms but not for differentiation firms. These findings suggest that unlike differentiators, cost leaders with growth properties are more likely to achieve favorable revenue surprises through advertising activities.</p> Dong Hyun Son Copyright (c) 2020 Clute Institute https://creativecommons.org/licenses/by/3.0/ 2020-01-01 2020-01-01 36 1 1 14 10.19030/jabr.v36i1.10320 Auditor-Client Disagreements, Auditor Resignations, And Audit Fees Charged By Successor Auditors https://www.clutejournals.com/index.php/JABR/article/view/10321 <p>This paper investigates the effects of auditor-client disagreement disclosure on auditor resignations and audit fee charged by successor auditors. Using a matched sample of auditor changes over the period 2003-2016, we find that auditor resignations are more often accompanied by auditor-client disagreements. We also find that Big 4 auditors are more likely to resign from their engagements when they disagree with their clients. Further, we document that successor auditors charge higher audit fees for firms that have disagreements with their predecessor auditors. Relative to non-Big 4 auditors, Big 4 successor auditors charge even higher audit fee for disagreement firms.</p> Dongliang Lei Yu Zhou Yakun Wang Copyright (c) 2020 Clute Institute https://creativecommons.org/licenses/by/3.0/ 2020-01-01 2020-01-01 36 1 15 28 10.19030/jabr.v36i1.10321 Analysis Of Family Business Group Succession: Comparative Case Study On Six Korean Chaebols https://www.clutejournals.com/index.php/JABR/article/view/10328 <p>A chaebol is a Korean business group with a unique organizational structure in which both ownership and control rights held by a family. As their production accounts for nearly fifty percent of Korea’s GDP and their power in the labor market, it is important to analyze the succession of chaebols, which is closely related to the sustainability of the business. This paper analyzes the six Korean chaebols’ successions to increase our understanding of the processes and outcomes of the family succession. Specifically, we employ the three-circle model, i.e., the ownership, family, and business system, to conduct a comparative case study. Our analysis suggests that succession that involves a large size of succession concentrated to only one successor and restructuring of business portfolio experiences higher post- performance. Also, the level of conflicts in the succession process was not found to have an effect on performance. Overall, our findings imply that the succession is a period available to the company to set a right course of actions for improving competitiveness.</p> Choong Ho Shin Hyejin Cho Myeong Hyeon Cho Copyright (c) 2020 Clue Institute https://creativecommons.org/licenses/by/3.0/ 2020-01-01 2020-01-01 36 1 29 50 10.19030/jabr.v36i1.10328