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Showing papers by "Thomas R. Sexton published in 2003"


Journal ArticleDOI
TL;DR: In this article, the authors use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage, and apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model.
Abstract: We show how to use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage. Our model allows for any orientation or scale assumption. We apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model. Our model detects inefficiencies that standard DEA models miss, and it can allow for resource consumption that the standard DEA model counts towards inefficiency. Additionally, our model distinguishes inefficiency in the first stage from that in the second stage, allowing managers to target inefficient stages of the production process.

323 citations


Journal ArticleDOI
TL;DR: In this article, the authors compared the observed post-scandal shifts in market share with those estimated by a Markov model and then estimated the year-by-year and long-term market shares that the Big 4 firms would have achieved had they remained untouched by these investigations.
Abstract: Arthur Andersen’s conviction and its decision not to audit public firms will transform the Big 5 into the Big 4 Meanwhile, other Big 4 firms face investigations that threaten their future market shares The article compares the observed post‐scandal shifts in market share with those estimated by a Markov model It then estimates the year‐by‐year and long‐term market shares that the Big 4 firms would have achieved had they remained untouched by these investigations The study finds that the absence of Arthur Andersen alone would not have led to excessive market share concentration It demonstrates how the post‐scandal shifts reveal the impacts of the investigations on the Big 4 firms and provides market share benchmarks against which the firms can evaluate the long‐term effects of the investigations Finally, the article concludes that a firm’s long‐term gain in market share depends on its ability to retain audit clients

16 citations


Journal ArticleDOI
TL;DR: A model is presented that helps auditors to understand the stages of the client inquiry process and the factors that influence its reliability and thereby assist auditors in evaluating the evidence thus obtained.
Abstract: The efficiency and the effectiveness of the audit depend in part on the efficiency and the effectiveness of the client inquiry process. This paper presents a model that helps auditors to understand the stages of the client inquiry process and the factors that influence its reliability. The model serves to illuminate the client inquiry process and thereby assist auditors in evaluating the evidence thus obtained. Our model is a multistage communication channel that connects reality, the client’s perception of reality, the client’s representation of reality, the auditor’s perception of reality, and the auditor’s representation of reality. Distortions of reality occur between adjacent stages as the result of the subjectivity, technical incompetence, untrustworthiness, and poor presentation skills of either the client or the auditor. We discuss our model in the context of the analytical review task.

9 citations