Journal of Applied Business and Economics
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Journal of Applied Business and Economics North American Business Press Atlanta - Seattle – South Florida - Toronto Journal of Applied Business and Economics Editors Dr. Adam Davidson Dr. William Johnson Editor-In-Chief Dr. David Smith NABP EDITORIAL ADVISORY BOARD Dr. Nusrate Aziz - MULTIMEDIA UNIVERSITY, MALAYSIA Dr. Andy Bertsch - MINOT STATE UNIVERSITY Dr. Jacob Bikker - UTRECHT UNIVERSITY, NETHERLANDS Dr. Bill Bommer - CALIFORNIA STATE UNIVERSITY, FRESNO Dr. Michael Bond - UNIVERSITY OF ARIZONA Dr. Charles Butler - COLORADO STATE UNIVERSITY Dr. Jon Carrick - STETSON UNIVERSITY Dr. Min Carter – TROY UNIVERSITY Dr. Mondher Cherif - REIMS, FRANCE Dr. Daniel Condon - DOMINICAN UNIVERSITY, CHICAGO Dr. Bahram Dadgostar - LAKEHEAD UNIVERSITY, CANADA Dr. Deborah Erdos-Knapp - KENT STATE UNIVERSITY Dr. Bruce Forster - UNIVERSITY OF NEBRASKA, KEARNEY Dr. Nancy Furlow - MARYMOUNT UNIVERSITY Dr. Mark Gershon - TEMPLE UNIVERSITY Dr. Philippe Gregoire - UNIVERSITY OF LAVAL, CANADA Dr. Donald Grunewald - IONA COLLEGE Dr. Samanthala Hettihewa - UNIVERSITY OF BALLARAT, AUSTRALIA Dr. Russell Kashian - UNIVERSITY OF WISCONSIN, WHITEWATER Dr. Jeffrey Kennedy - PALM BEACH ATLANTIC UNIVERSITY Dr. Dean Koutramanis - UNIVERSITY OF TAMPA Dr. Malek Lashgari - UNIVERSITY OF HARTFORD Dr. Priscilla Liang - CALIFORNIA STATE UNIVERSITY, CHANNEL ISLANDS Dr. Tony Matias - MATIAS AND ASSOCIATES Dr. Patti Meglich - UNIVERSITY OF NEBRASKA, OMAHA Dr. Robert Metts - UNIVERSITY OF NEVADA, RENO Dr. Adil Mouhammed - UNIVERSITY OF ILLINOIS, SPRINGFIELD Dr. Shiva Nadavulakere – SAGINAW VALLEY STATE UNIVERSITY Dr. Roy Pearson - COLLEGE OF WILLIAM AND MARY Dr. Veena Prabhu - CALIFORNIA STATE UNIVERSITY, LOS ANGELES Dr. Sergiy Rakhmayil - RYERSON UNIVERSITY, CANADA Dr. Fabrizio Rossi - UNIVERSITY OF CASSINO, ITALY Dr. Robert Scherer – UNIVERSITY OF DALLAS Dr. Ira Sohn - MONTCLAIR STATE UNIVERSITY Dr. Reginal Sheppard - UNIVERSITY OF NEW BRUNSWICK, CANADA Dr. Carlos Spaht - LOUISIANA STATE UNIVERSITY, SHREVEPORT Dr. Ken Thorpe - EMORY UNIVERSITY Dr. Robert Tian – SHANTOU UNIVERSITY, CHINA Dr. Calin Valsan - BISHOP'S UNIVERSITY, CANADA Dr. Anne Walsh - LA SALLE UNIVERSITY Dr. Thomas Verney - SHIPPENSBURG STATE UNIVERSITY Dr. Christopher Wright - UNIVERSITY OF ADELAIDE, AUSTRALIA Volume 16(6) ISSN 1499-691X Authors have granted copyright consent to allow that copies of their article may be made for personal or internal use. This does not extend to other kinds of copying, such as copying for general distribution, for advertising or promotional purposes, for creating new collective works, or for resale. Any consent for republication, other than noted, must be granted through the publisher: North American Business Press, Inc. Atlanta - Seattle – South Florida - Toronto ©Journal of Applied Business and Economics 2014 For submission, subscription or copyright information, contact the editor at: [email protected] Subscription Price: US$ 360/yr Our journals are indexed by UMI-Proquest-ABI Inform, EBSCOHost, GoogleScholar, and listed with Cabell's Directory of Periodicals, Ulrich's Listing of Periodicals, Bowkers Publishing Resources, the Library of Congress, the National Library of Canada. Our journals have been used to support the Academically Qualified (AQ) faculty classification by all recognized business school accrediting bodies. This Issue Florida’s Market-based Medicaid Reform Demonstration: Cost and Quality Issues ........................ 11 Michael Bond, Emily Patch From 1975 to 2010, Medicaid costs grew 1.8 percent faster than GDP. At this pace, over the next 75 years, federal Medicaid expenditures will rise to almost 6 percent of GDP. In 2005, a reform was approved for Florida which was designed to increase beneficiaries’ access and quality of care at no greater cost than traditional Medicaid. The federal waiver allowed the state to move about 413,000 Medicaid beneficiaries in five demonstration counties into health plans run by private providers and insurers. This article details the reform area’s progress. Massive Strategic Failures in the Financial Services Industry ............................................................. 26 Joseph Gilbert Strategic management theory concentrates mostly on business success. However, much can be learned from studying business failure as well. During the Great Recession, an unusually large number of major financial institutions failed. Many books and government reports document the details of these failures and present various causal analyses. Much remains to be learned, and academic studies using the tools of strategy and other business disciplines should lead to increased understanding of these failures. If we could attain a better understanding of the failures, steps might be taken by executives and regulators to reduce the risk of their repetition. Learning Curve Setbacks: You Don’t Always Move DOWN a Learning Curve ................................ 32 Charles J Teplitz There are a number of reasons why production, continually moving down a known learning curve will suddenly retrace its steps by moving up the learning curve. The cause of such a reversal needs to be recognized and the impact determined. Knowing how to compute the degree of “forgetting” is crucial in properly estimating future production times and costs. This paper will address how to effectively determine the impact of such events on the learning curve and how to make changes to future estimates. Comparison of Three Investment Strategies for Financial Independence .......................................... 44 Carlos Spaht, Harvey Rubin This paper discusses how investors can achieve financial independence regardless of timing in the market. To do this, we study three investors referred to as the luckiest, average, and unluckiest investors in the market. Using the S&P Dividend Aristocrats Index, each selects the same stocks and then continues, each quarter for fifteen years, to invest the same amount and reinvest the dividends in each stock. But their timing is different; the lucky investor invests at the low point of the market whereas the average and unlucky investors invest at the average and high points. Amazingly, each investor achieves financial independence. Startup Marketing: Leveraging Leverage .............................................................................................. 56 Michael J. Swenson, Gary K. Rhoads, David B. Whitlark The resource allocation task of top management has received significant attention from researchers and practitioners alike. Managers are advised to increase allocation efficiency--assign the right resources to the most promising opportunities. Much less attention has been given to the task of resource leverage (Hamel and Prahalad, 1994). Entrepreneurs quickly discover that they cannot match the resources of larger competitors. Because they must do more with less, they seek to leverage their own resources and the resources of others. We use the term "leveraging leverage" to identify entrepreneurial practices that leverage the resources of others. On the State of the American Health Care: A Discussion of the Health Care System and the Affordable Care Act ............................................................................................. 63 Yvonne Chen This research intends to identify the priorities for healthcare reform thru understanding the current challenges of the health care sector in the United States. The study identifies cost, accessibility, and sustainability as the major concerns. Next, the paper proceeds to detail the highlights from the Affordable Care Act and assess its effectiveness in managing these priorities. The research then concludes with a discussion of the variables that would continue to shape the future of the American health care. Workplace Violence: The Role of Fear in Paralyzing Modern Business/Corporate Security ..................................................................................................... 69 Nick Nykodym, Brian Anse Patrick, Sonny Ariss Workplace violence is a sad reality of the modern age. Many options exist in helping deal with workplace violence, yet fear of these options place businesses and organizations at great risk. All too often security training consists of “RUN, HIDE and CALL 911” rather than a real defense that could save a life. Currently fifty (50) out of fifty (50) states have some form of CCW (Concealed Carry) permit training, and certification. Trained organizational members / university professors are currently discouraged from protecting themselves and others by those who have Hoplophobia (Fear of Firearms). The Performance of Russian Global Depository Receipts on the London Stock Exchange .............. 75 Irina Khindanova, Innokentiy Khindanov This paper analyzes the performance of Russian Global Depository Receipts listed on the London Stock Exchange. The performance is evaluated assuming two investment strategies: daily portfolio rebalancing and buy-and-hold. Russian GDRs marginally outperform in the short-run and underperform in the long run the UK market, the US market, the Emerging Markets, and the Emerging Markets ADRs. These results resemble the performance of Initial Public Offerings. Russian GDRs outperform to some extent the Russian stock market over the first two trading years. The performance of Russian GDRs varies across industries, depends on raising capital, and is affected by issue timing. “Trapped Cash” in the Technology Sector: Accounting Disclosures of Permanently Reinvested Foreign Earnings