Why Can't Michael Jackson Do Heart Surgery?
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The document summarizes and explains the findings of a study by Mary F. Mobley and Harry Kuniansky. The study investigated finance executives' views of academicians and their self-perceptions. It found that practitioners believed they had better knowledge of business problems and solutions, while academicians had better knowledge of research methods and theory development. The author explains the findings in terms of specialization creating competitive advantages for both groups. New ideas developed by academicians filter down over time to practitioners through education and exposure to lower-tier academic journals and business periodicals. Both groups could improve knowledge transfer through platforms like business schools where practitioners learn new strategies and tools.
Why Can't Michael Jackson Do Heart Surgery?
- 1. COURSE TITLE: SEMINOR IN FINANCE COURSE CODE: MPH 622 Presentation on Why Can’t Michael Jackson Do Heart Surgery? Article written by: Lawrence J. Gitman, Professor of Finance, San Diego State University, San Diego, CA Article published in: Financial Practice and Education, (Spring/Summer 1992), pp. 73-75. 14 February, 2011
- 2. Objective of the study To explain the findings of Mary F. Mobley and Harry Kuniansky (M&K)’s study “Chief Financial Officers’Views of AcademiciansVersus Practitioners in the Field of Finance” Methodology used for the study Article (literature) review Approach: Qualitative approach Research Design: Descriptive research design (issue analysis)
- 3. Overview of M&K’s article Research problems o The educational institution are confronting serious challenges posed by the unprecedented environmental and global changes. o Many of the business area personality perceived that academia is unresponsive to the number of complex problems faced in the business areas. Objectives o To investigate finance executives’ views of academicians and their self- perceptions on various professional dimensions. o To access which academic journals are being read by the practitioners. Methodology o Mail survey (distributed to 500 CFOs), Response rate (22%) Tools o For objective one (5 point likert scale, t-test for comparison, average and mean) o For objective two (7 point likert scale, percentage and mean)
- 4. Overview…..… Findings of the study o 7 items out of 8 asked to the 110 CFOs were significantly different at 0.01 level which shows – practitioners believed that they have better knowledge on general business, business problem solving, ability to generate creative ideas and ability to solve practical financial problems and academicians have better knowledge on research methodologies, research findings and ability to develop applicable finance theories. But, there is no significant difference in ethical standard of both categories. o Finance practitioners in US corporations do not appear to avail themselves of available academic publications but they prefer to read the most popular business periodicals namelyWall Street Journal, Forbes and Fortune. Conclusion o The findings of the study confirm the obvious expectations and previous research findings that practitioners view research methodology and journal publication as basically academic domains. In other words, the findings provide an indication of their own strength relative to those of their academic counter parts.
- 5. Why can’t Michael Jackson…… To explain the findings of M&K’s article, the author comments that ignoring any methodological problems the study confirm the obvious that CFOs know more about their field issues and academicians know more about their concern dimensions. To fulfill the purpose of the study Gitman explain M&K’s findings with following five points I) Specialization creates competitive advantage II) Educational choice and filtering down of new ideas III) Professional readings and career choice are highly correlated IV) How can we improve knowledge transfer? V) Even specialist can do a better job
- 6. Continue…. Specialization creates competitive advantage o Market environment is competitive and specialization create competitive advantage to succeed. For example: CFOs and Finance Academicians specialized in their concern field so that they get better payoff. o The competitive advantage of CFOs are the management of financial affairs of a firm in a cost effective way that positively contribute to its value. On the other hands, finance academicians have their competitive advantage on teaching, advance and communication on the frontier of financial understanding.The market reward system for the academics are based on their publish articles. o Broadly, researches are classified into four types – theoretical, empirical, applied and interpretive. Academic journals generally divided into top journals which focus on theoretical and empirical research while lower tier journals publish more applied and interpretive.The market reward system tends to favor publication in top journals. o Mostly, the sources of new ideas, techniques, tools and strategies come form the top journal articles.
- 7. Educational choice and filtering down of new ideas o People who want to be a CFO tend to focus their formal education on accounting and finance to obtain the solid ground in finance. “A Study of the Fortune 1000 CFO’s on Business School Education” by Ben Collier and MikeWilson support the statement. o The study result shows as; Continue…. Educational Choice UGD (more than 75% of 233) GD (about 60% of 233) Accounting or Finance major 123 (70% of ttl UGD) 47 (42% of Business) Other subjects major 52 (30% of UGD) 93 (58% of Business +20% of 233) Total 175 140 Note: UGD = Under Graduate Degree, GD = Graduate Degree, Business Students = 80% of GD, Total respondent = 233 CFOs
- 8. o On the other hand, finance academicians who want to hold Ph. D. or DBA have solid skills and understand the important literature in the field. o Filter down is a learning life-cycle – a logical progression of acceptance. Overtime theories filter down to practice. It takes generally 20 years of time lags. During this period new ideas creates a broad base of understanding at the practitioners level. Because understanding is a key to implement new ideas, knowledge and tools into practice. Unless decision makers understand and feel comfort about the implementation of new knowledge.They will not implement it, regardless of how financially attractive it may appear. For example, CAPM, beta, etc. Continue….
- 9. Professional Reading and Career Choice are Highly Correlated o M&K’s finding concerning the practitioner readership of academic journals validate the previous research findings that very little readership of academic literature devoted financial research issues. Mostly, practitioners read the popular business periodicals namely Wall Street Journal, Forbes and Fortune.This finding is also very much expected because they want to learn about practical matters, the economy and what competitors in other companies are doing. But, does not fully bypass the academic literature they also prefer to read lower tier academic journals such as Harvard Business Review and Financial Analyst Journal. o Why many academicians read practitioner journals and probably fewer practitioners read academic journals? This is because of the availability of journals and interest of the practitioners. Continue….
- 10. How CanWe Improve Know Transfer? o The valid finding of M&K’s article is that both academicians and practitioners are doing well in their job because they are specialized in their concern areas.The most deserving way of improving knowledge transfer is through those platforms where the future and the present practitioners come to learn new knowledge, strategies, tools and ideas and particularly, that could be the MBA classroom, executive training, seminars and consultation. Continue….
- 11. Even Specialist Can Do a Better Job o CFOs and financial academicians have different jobs and although each may be capable of performing the other’s jobs but their voluntary career choice indicate that they do not want to do so. Even though they are specialized in their respective fields, they can also do better in their own jobs which results greater application of financial management tools in practice and shortening of the time lag for implementing new ideas in to practice. Continue….
- 12. Critical appraisal o Strengths: The author present the contains in a simple and illustrative way so that I found this is a supportive to know better and in detail about the findings of M&K’s article.And, it raised the numbers of questions and its solutions which help to broaden the reader’s knowledge. o Weaknesses: The author only relates the findings of M&K’s work despite clarifying its weaknesses in terms of sample characteristics (only CFOs as respondents), selection of limited dimensions of study (only 7 or 8 items), judgmental errors, procedures (lack of internal consistency test – Alfa coefficient), etc. Continue….
- 13. Thank you.