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Tag: Texas McCombs Research

Accounting Faculty Research: More Direct Flights, Improved Organ Donations

In a first-of-its-kind study, researchers looked at the impact of direct airline flights on kidney sharing and transplantation. Based on the research of Texas McCombs Accounting Assistant Professor Ronghuo Zheng.

Transplant Airlines Research

Two years ago, a donated kidney shipped from Florida to a recipient in North Carolina missed a flight connection in Atlanta. When the kidney finally arrived at the transplant center, surgeons had just 46 minutes to spare, almost rendering the organ unusable.

Ronghuo ZhengEach year in the U.S., nearly 5,000 people die waiting for a kidney transplant, with wait time heavily dependent on where a person lives. At the same time, an estimated 3,500 donated kidneys are discarded because they’re no longer viable. This troubling imbalance of organ scarcity and massive wastefulness is tied in part to limited organ sharing across the country. Current policies prioritize local matching, and surgeons are often reluctant to accept donated kidneys that require multiple flight connections.

Inefficient organ sharing can also have a ripple effect. Surgeons waiting for a kidney that misses a flight connection and becomes unviable could have been operating on another patient. In this case, patients, the surgeon, and the transplant center all lose.

Policymakers have tried to address these complex problems by eliminating the current system’s regional boundaries, allowing organs to travel further. “But geographical distance isn’t the only thing that matters,” says Ronghuo Zheng, a Texas McCombs assistant professor of accounting.

Read the full article on Texas McCombs Big Ideas.

 

 

Three Steps to Better Investing

Advice on selecting mutual funds, listening to CEOs, and considering climate change, courtesy of Texas McCombs research, including our very own accounting professor Jeff Hales.

Better Investing
If you’re looking to make better investment decisions, it’s a good idea to listen to the experts. And who’s more of an expert than a business researcher who studies investing and the stock market.

With that in mind, consider applying these practical research findings from Texas McCombs to your investments:

Seek low taxes on mutual funds. A study by finance professor Clemens Sialm showed that funds with lower tax burdens had higher-than-average returns. That’s why Sialm urges fund shoppers to look beyond past performance and check out taxes as well. “You have to dig deeper in the prospectus, but the information is there,” he says. Research websites such as Morningstar can help. They list the taxable distributions along with the performance of a fund.

Bet on big-talking CEOs. When executives use extreme language on quarterly earnings calls — words such as “astonishing,” “incredible,” and “exceptional” — it can benefit capital markets, according to research from accounting professor Jeff Hales. For executives who speak in superlatives, their words can produce a stronger reaction in stock prices, increased trading volume, and adjusted analyst forecasts. CEO language can even foreshadow a company’s future earnings.

Read the entire article on Big Ideas.

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