MSM Faculty and Alumnae Publish in Applied Artificial Intelligence Journal

April 15, 2022

American University of Armenia (AUA) Master of Science in Management (MSM) Program Chair Dr. Vardan Baghdasaryan and former Manoogian Simone College of Business and Economics (CBE) Assistant Professor Hrant Davtyan, together with alumnae Zaruhi Navasardyan (MSM ‘20) and Arsine Sarikyan (MSM ‘20), and support from the Manoogian Simone Research Fund (MSRF), have developed a fraud prediction model based on machine learning tools, with gradient boosting as the primary choice for the State Revenue Committee of Armenia. The team has also authored a research article, Improving Tax Audit Efficiency Using Machine Learning: The Role of Taxpayer’s Network Data in Fraud Detection, recently published in the Applied Artificial Intelligence peer-reviewed journal.

Using a broadly defined perception of fraud, diverse classifications of taxpayers, and a relatively small sample, the research team successfully derive important features from tax returns with minimal additional information. Among the key fraud predictors are the historical record of fraud and audit, the relative share of administrative costs, and external economic activity. The researchers see two primary contributions with generalizable practical implications for tax audit authorities. Firstly, by focusing on the lift score of the top decile, they demonstrate that even moderately accurate models can improve upon the existing level of accuracy of rule-based approaches. Secondly, and more importantly, they show that the information contained in the supplier and buyer network of a taxpayer can be used whenever significant predictors of fraud, such as a history of prior audit and fraud, are not available. This is particularly useful for use with newly established companies, which would otherwise be undetected of probable fraud.

“There were a number of factors that contributed to the success of this project,” notes Dr. Baghdasaryan, the Principal Investigator for the project. “First of all, the leadership of the IT directorate of the State Revenue Committee (SRC) was genuinely interested in not only the potential results of our work, but also  closely collaborated with us in the process. This ensured the overall positive engagement by SRC staff. Second, by engaging new MSM graduates, we were able to infuse the project with fresh ideas and energy. Students and more recent alumni are always motivated to experiment with innovative approaches and discover new tools. Finally, we saw a clear link between the theoretical contribution and practical application of our model, which was important considering the dual objective of the MSRF to promote scientific research and evidence-based decision making in the public sector.’’

MSRF-Funded Research Published in a Peer-Reviewed Journal

February 1, 2022

The American University of Armenia is pleased to share that the Central European Business Review, an online peer-reviewed journal focusing on business issues with a Central European perspective, has accepted for publication a paper authored by Gayane Shakhmuradyan (MPSIA ’19) an AUA alumna and one of the first recipients of a research grant awarded by the Manoogian Simone Research Fund.

The article, titled “Does Fiscal Policy Matter for Business R&D Investment? Panel Data Evidence from Central and Eastern Europe,” is based on the research Shakhmuradyan conducted from September 2019 to February 2020 at AUA. The article was developed in the last two months of her employment as a research assistant at the AUA Manoogian Simone College of Business and Economics (CBE), May-June 2021. Submitted for evaluation in August 2021, the paper will appear in the regular issue of the Central European Business Review in July 2022.

The findings of the article suggest that fiscal policy, as captured by variables for total tax and contribution rate, government appropriations and outlays for business research and development (R&D), and R&D tax subsidy rate, does not have a significant impact on business R&D when controlled for other factors. Instead, full-time research engagement, attainment of tertiary education, and trade openness are found to be strong determinants of business R&D. These findings are consistent with prior theoretical and empirical literature in the field and call for greater allocation of public, as well as private funds to the professional development and training programs of R&D personnel.

“I would like to thank the government of Armenia and the American University of Armenia for the opportunity to conduct this research. I am especially thankful to Dr. Vache Gabrielyan, the dean of the Manoogian Simone College of Business and Economics and member of the MSRF Panel, for providing guidance during the research process and reviewing an early draft of the paper,” remarks Shakhmuradyan.

Sustainable Waste Management in Armenia

September 6, 2019

About the Event: 

Focus Group Discussion: Hazardous Waste Management in Armenia

Panel Formed for Manoogian Simone Research Fund

December 24, 2018 

YEREVAN, Armenia ‒ The American University of Armenia (AUA) is pleased to report that the activities of the Manoogian Simone Research Fund (MSRF) are in full swing. MSRF was established earlier this year with the generous initial funding of $200,000 from the Manoogian Simone Foundation (MSF) and in cooperation with AUA and the Armenian Government. The Fund is designed to sponsor research in higher educational institutions in Armenia, also engaging international experts.

Currently the MSRF Panel, composed of representatives of the Government and AUA, is actively engaged in the review and selection of research topics that have been proposed as priority by the office of the Acting Deputy Prime Minister Tigran Avinyan. The Panel representatives appointed by the Armenian Government include Dr. Vache Gabrielyan and Varak Sisserian, Head of the office of the Acting Deputy PM Avinyan. Within eighteen topics proposed, the Government has highlighted four priority areas. Once the topics are selected, the Panel will issue an open call for proposals by students and researchers.

“I am thankful to the Dean of the Zaven and Sonia Akian College of Science & Engineering (CSE) Dr. Aram Hajian, who agreed to serve on the Panel, representing AUA. We are also very pleased that the Government appointed Dr. Gabrielyan, who has taught at AUA for many years, and Sisserian, who is an AUA alumnus. I think we have a powerful Panel to objectively review and select awardees,” remarked AUA President Dr. Armen Der Kiureghian.

Sisserian highlighted two crucial aspects of MSRF: “First, this initiative illustrates how Diasporan Armenians can contribute to the advancement of our country, by investing in people and accelerating human capital development. Second, the Government prioritizes evidence-based policy making, which is possible through direct cooperation of the government and academia.”

Dr. Hajian mentioned: “We welcome this synergistic initiative which brings together academia, government, and innovation through applied research projects, which will build long term capacity in Armenia.”

The Fund is aimed at enhancing capacity among Armenian researchers and students, as well as providing international experts with the opportunity to conduct research on topics that are of great interest to the Armenian Government and will be used in developing national policies. (https://newsroom.aua.am/2018/12/24/panel-formed-for-manoogian-simone-research-fund/ )

Manoogian Simone Foundation Establishes Fund to Support Research on Topics of Interest to the Armenian Government

YEREVAN, Armenia ‒ On October 10, the American University of Armenia (AUA) signed an agreement with the Manoogian Simone Foundation (MSF) to establish the Manoogian Simone Research Fund (MSRF) with the generous initial funding of $200,000. The MSRF will be used to conduct research in Armenian universities and by international experts, where appropriate, on topics of interest to the Armenian Government. The research Fund adds a new dimension to the MSF’s steadfast support of Armenia and the AUA. Acting Deputy Prime Minister Tigran Avinyan and Christine Simone of MSF were instrumental in launching the idea.

“As a research University, we are thrilled with this new program that the Manoogian Simone Foundation has funded. The Fund will serve as a timely platform for in-depth studies of topics that are crucial for sound policy making by the new Armenian Government. It will also build research capacity in Armenian universities,” commented AUA President Dr. Armen Der Kiureghian.

The topics for research will be prioritized by the office of the Acting Deputy PM Avinyan. A Panel of experts appointed by the Government, the MSF and the AUA will review the topics and solicit proposals from researchers in Armenian universities and make recommendations. The AUA will administer the research Fund for projects within AUA as well as those awarded to researchers in other universities. This program will build a much-needed bridge between the academia and the Government.

In addition to the solicited research projects, the MSRF will award fellowships to selected bachelor’s, master’s or doctoral university students to conduct research. The Panel will announce the topics and seek applications from interested students. Aside from supporting talented students, this program aims to develop research capacity among university students.

Detailed instructions for preparing and submitting proposals and fellowship applications will be issued by the MSRF Panel in the near future. – https://newsroom.aua.am/2018/10/22/manoogian-simone-foundation-establishes-fund-to-support-research-on-topics-of-interest-to-the-armenian-government/