bluuebunny/crossref_metadata_2025 huggingface dataset:
The need for adaptive processes of benchmarking in small business‐to‐business services
Authors: Broderick Anne , Garry Tony , Beasley Mark
Published: June 2010

Purpose

This paper aims to explore current management attitudes towards benchmarking and its implementation within small business‐to‐business service firms in order to enhance a deeper understanding of benchmarking within such contexts.

Design/methodology/approach

The paper uses in‐depth case analysis of small architectural services to collect empirical data on benchmarking initiatives, attitudes, key characteristics and constraints on benchmarking.

Findings

Findings suggest that there are significant variations in the receptiveness of small business‐to‐business firms towards the adoption of benchmarking. There may be an inherent distrust of benchmarking, as it is primarily perceived as being a tool for larger organizations, where productivity improvements are the main driver. Evidence of perceived constraints in both the implementation of benchmarking and in the definition of what constitutes best practice highlighted a cultural difficulty for small architectural firms when adopting a business process orientation. Traditionally, when evaluating their services, architectural practices are oriented towards professional design criteria, often with creative rather than business process priorities. Results suggest less cumbersome measurement models than key performance indicators (KPI) are needed to allow organically developing firms, such as architectural services, to apply benchmarking and quality ideas flexibly.

Originality/value

Research on current management attitudes towards benchmarking or actual implementation of benchmarking techniques in small business‐to‐business service firms is scarce. This paper addresses this by developing a deeper and richer contextual understanding of benchmarking within such contexts.
Evolution of strategic sales organizations in business‐to‐business marketing
Authors: Piercy Nigel F.
Published: June 2010

Purpose

This paper aims to focus on changes in the way in which business‐to‐business companies are responding to customer and market pressures for higher service and relational investments, and the need for new capabilities in managing the business risk in the company's customer portfolio. The paper seeks to propose a model of the strategic sales organization as a basis for management review of how to realign sales, account management, and marketing processes around customers to achieve and sustain superior customer value.

Design/methodology/approach

The study traces the emergence of new pressures and mandates which are changing management thinking about the “front‐end” of organizations and edging companies towards a revolution in the role of sales, account management and marketing comparable to earlier reinventions in operations and supply chain strategy.

Findings

The outcome of the review is a model of the imperatives for the strategic sales organization.

Practical implications

The model produced in the review provides a tool or framework for executive consideration of the strategic sales issue, both in evaluating the strategic role and performance of the existing sales and account management structures and in designing new roles for delivering competitive strength in the future.

Originality/value

While the strategic role of the sales organization has been discussed in the literature, this paper provides a practical framework for executives to use in addressing the potential role of the strategic sales organization. The framework also highlights promising research directions for marketing and sales scholars.
The archaeology of habit: excavating past practices in technical services
Authors: Heinrich Helen , LaFollette Donna
Published: June 2010

Purpose

While laying the foundations of any libraries' collections, technical services (TS) play an important role in the expenditure of a library's materials and personnel budgets. Budgetary crises, increased user expectations, and growing workloads create challenges for TS to continually do more with less. When old practices cannot survive weakening budgets, it is time to dig into the layers of established procedures and see how they stand the test of relevance. This paper aims to address the issues regarding TS workflows.

Design/methodologyapproach

The paper describes a study into TS at California State University Northridge (CSUN) Oviatt Library.

Findings

Examination of long‐established procedures and workflows reveals a treasure trove of superfluous traditions, outdated mechanisms, and a visible failure to adopt the progress of the past decade. The discovery led to the reorganization of the department, the redesign of existing workflows, and the introduction of innovative technologies. Consequently, TS reduced processing time throughout the supply chain of information, improved service, and saved money. In addition, the reliance on vendors to assist in data management can greatly increase the efficiency of technical services.

Originality/value

The paper highlights how continued revision should keep technical services' workflows and procedures fresh and relevant.
Exceptional service during and after deep serial cuts
Authors: Throumoulos Mary K.
Published: June 2010

Purpose

The purpose of this paper is to show how Olin Library has maintained exceptional service to its users before, during and after a periodicals review resulting in deep subscription cuts.

Design/methodology/approach

The paper takes the form of a review of activities at the Library during a time of financial restraints.

Findings

Although Olin's cancellation project is not entirely completed, there is sufficient anecdotal evidence that the exceptional service has not deteriorated. At some point, soon after the cancellations are in place, a survey should be initiated to confirm this assumption about exceptional service.

Practical implications

Several guidelines are presented and discussed that may be useful for other libraries faced with having to make tough periodicals decisions after being directed to cut budgets by their administrations.

Originality/value

The paper provides guidelines that should greatly benefit librarians in facilitating a periodicals review and the resulting cuts during difficult economic times while still providing the service to which users are accustomed.
Managing library image as a resource
Authors: Fitsimmons Gary
Published: June 2010

Purpose

The purpose of this article is to discuss the importance of managing the library's and the director's images.

Design/methodology/approach

The approach is to introduce the idea of image as a resource and then discuss how it should be properly managed.

Findings

The findings are that the library's image is closely related to that of its director and an image of great service is a key to the library's general health.

Originality/value

The value of this article is in learning how to cultivate the proper image as a director and for the library in order to reap the benefits of better funding and other types of support.
Fighting back through talent innovation
Authors: McCartney Claire
Published: June 2010

Purpose

Early last year, the CIPD released survey findings exploring how talent management strategies are being affected by the current uncertain economic backdrop and how important talent management is to organizations when things get tough. The reason for surveying on this topic was not to further contribute to the negativity awash in the media, but rather to focus on some of the positive measures that organizations can take in response to the economic challenges.

Design/methodology/approach

This research pulls together the experiences of ten diverse organizations (including International Personal Finance, BT, Tesco, the National Leadership and Innovation Agency for Healthcare, Gala Coral Group, Stanza, NPIA, National Express, Standard Chartered and the Borough of Tower Hamlets).

Findings

Although the current economic climate has heightened the focus on short‐term business critical needs there is a strong recognition by all of the organizations featured, that short and longer term perspectives need to be carefully balanced. What's more organizations need to develop a sustainable approach to talent management which by its very nature, should be focused on developing the current but also the future talent and capability of the organization.

Originality/value

This second phase of research once again validates the messages from the “War on Talent”, namely that talent management becomes more not less important in a downturn. All of the organizations included in this research recognise the importance of talent management at this time more than ever in enabling them to meet both their immediate and longer‐term business critical needs.
Workplace spirituality versus workplace politics: what's wrong with becoming a “NON”?
Authors: Marques Joan
Published: June 2010

Purpose

Examines ways to rise above organizational politics by redefining success and progress.

Design/methodology/approach

Draws out the differences between workplace spirituality and workplace politics, demonstrating why the former is generally more positive than the latter.

Findings

Contends that success should be synonymous with happiness rather than with affluence, while the real definition of human progress entails something that our civilization radically defies: acceptance of our legitimate place as members of a community that consists of human beings, as well as species different from – yet not inferior to – the human.

Practical implications

Advances the view that many workers choose to leave highly political workplaces, and become NONs (no fiefdom, outsider, no fit).

Social implications

Suggests that the NONs, once courageous enough to step outside the organizational box, move on in different settings, often entrepreneurial or smaller organizations, and are able to display greater performance excellence, success in the form of greater contentment, and progress in the form of acceptance of the self and others.

Originality/value

Adds to the growing literature on workplace spirituality.
The key role of employees in making customers more loyal
Authors: Herstein Ram , Zvilling Moti
Published: June 2010

Purpose

Details the key role of employees in improving customer loyalty at Discount Bank, Israel.

Design/methodology/approach

Explains why strategic change was needed at the bank and how its management settled on the concept of direct banking relationships as the foundation for the reforms.

Findings

Describes the three levels of loyalty that managers identified – first creating good feelings toward the bank, then moving towards satisfied and finally appreciative clients – and explains the steps that managers took to achieve these levels of loyalty in practice.

Practical implications

Reveals that the strategy helped the bank to recruit more than 300,000 new customers in three years.

Social implications

Highlights how service organizations can benefit from drawing customers into a close relationship with their employees.

Originality/value

Claims that direct banking relationships are new in the financial‐services sector.
Creating the right environment for improvement
Authors: Eaton Mark
Published: June 2010

Purpose

Explains the importance of organizational environment and reveals how to align it with organizational success.

Design/methodology/approach

Defines organizational environment, explains how it can fail to match the environment the organization actually needs, provides examples of what happens when the two are not synchronized, and shows how to align them.

Findings

Highlights the importance of: linking actions and improvements to what really matters; making quality improvement everyone's responsibility; being responsive and flexible; communicating well, and adapting to changing circumstances.

Practical implications

Argues that creating the right organizational environment can be a long process.

Social implications

Reveals a way in which most organizations can be made to perform better.

Originality/value

Contains interesting examples of what happens when the organizational environment is not aligned with organizational success.
Improving performance appraisals using a real‐time talent management system
Authors: Samarakone Peter
Published: June 2010

Purpose

Reveals how a real‐time talent‐management system (RTTMS) can improve the performance‐appraisal process using existing technologies and current HR best practices.

Design/methodology/approach

Describes how a RTTMS works and highlights the factors needed for proper implementation.

Findings

Explains that a RTTMS enables management continuously to document an employee's actual performance results and any other job‐related actions or behaviors that would affect the achievement of goals set for the employee or for those around him or her, all the while providing employees with the specific feedback they need. The culmination is that management can make historically accurate data‐driven decisions.

Practical implications

Suggests that a RTTMS can lead to better business decisions, increased communication, higher profitability and reduced legal exposure.

Social implications

Reveals if that different organizations used the same system, and opted anonymously to share their job descriptions, objectives and corresponding job codes, they would be better able to cross‐validate job responsibilities and work history.

Originality/value

Argues that a RTTMS is a true system improvement because it enables employees equipped with a smartphone to communicate any changes in their job responsibilities, priorities or needs to management in real time, which allows not only for the increased validity of performance appraisals, but also for an up‐to‐date database of all job descriptions, resulting in a better quality of hire.
Plato as personnel manager
Authors: Short Tom
Published: June 2010

Purpose

Describes how Plato's philosophy has influenced, and may continue to affect, modern human‐resource management.

Design/methodology/approach

Outlines some of Plato's main ideas – including the role of the philosopher king in striving for the ideal – and draws out their relevance for current HR thinking and practice.

Findings

Contends that the platonic HR manager would oppose the notion of flatter structures. Policy would encourage progression through education, recognizing that not everyone had the qualities or wisdom to become a top executive. Men would rise faster than women, and emphasis would be placed on age, experience and service. Training and development would be more segmented and orientated towards efficiency.

Practical implications

Argues that, on the basis of Plato's philosophy, educated and enlightened leaders would go the extra mile for the good of the enterprise and senior executives would set an example.

Social implications

Highlights an anti‐democratic notion at the heart of Plato's philosophy: that truth and reality reside in a universal series of ideals, or forms, that transcend the material world and are understood only by a few members of a privileged class.

Originality/value

Applies 2,500‐year‐old ideas to the modern HR world.
A personalized rhythm click‐based authentication system
Authors: Chang Ting‐Yi , Yang Yu‐Ju , Peng Chun‐Cheng
Published: June 2010

Purpose

In keystroke‐based authentication systems, an input device to enter a password is needed. Users are verified by checking the validity of the password and typing characteristics. However, some devices have no standard desktop keyboard such as personal digital assistants and mobile phones. With these types of electronics, the system cannot successfully work in the authentication phase while the registration process is implemented based on a computer keyboard. This results in a reduction of system portability. The purpose of this paper is to employ the rhythm clicked by a mouse as another identifiable factor to authenticate a user's identity.

Design/methodology/approach

Mouse click can be replaced by a stylus and fingers on touch screens or numeral buttons on mobile phones. A total of 25 users participated and the click data are based on time instances of pressing and releasing the mouse button, which are captured while the user clicks a rhythm. Three features are calculated using these click data, and a reasonable amount of results with neural networks and other classifiers shows the click characteristics are able to function as another identifiable factor.

Findings

A reasonable amount of results with neural networks and other classifiers shows the click characteristics are able to function as another identifiable factor.

Originality/value

The paper presents a personalized rhythm click‐based authentication system.
Vulnerability analysis and the practical implications of a server‐challenge‐based one‐time password system
Authors: Yang Seung S. , Choi Hongsik
Published: June 2010

Purpose

One‐time password systems provide great strengths over conventional password systems: protection against over‐the‐shoulder, eavesdropping, replay, etc. The Grid Data Security authentication system is a server‐challenge‐based system. It has advantages over other one‐time password systems since it does not require pre‐installed software nor special devices to carry on. However, there are some weaknesses. The purpose of this paper is to analyze the weaknesses of the one‐time password system and provide practical guidelines for using the one‐time password system.

Design/methodology/approach

This paper statistically analyzes the weakness of the Grid Data Security authentication system and simulates attacks to the system to confirm the discovered weakness. The paper also suggests ways to reduce the discovered vulnerability using mathematical formula and offers practical guideline for using the system. It also identifies the system's strength on access authentication on mobile communication.

Findings

The Grid Data Security authentication system which is a server‐challenge‐based one‐time password system has a great weakness when an attacker gains its user‐interface screen and its GridCode. The discovered vulnerability can be improved by changing cardinality of the GridCode. This paper creates a formula that can help a system manager to decide the security level and its required cardinality of GridCode and length of password. It also identifies the system's strengths on mobile communication.

Originality/value

The paper provides a practical tool for security managers to identify requirements of cardinality of GridCode and password length for certain levels of security.
Security guideline tool for home users based on international standards
Authors: Horacio Ramirez Caceres Guillermo , Teshigawara Yoshimi
Published: June 2010

Purpose

The level of security of home information systems can be described as their capacity to resist all the accidental or deliberate malicious activities based on the evaluation assurance levels (EAL) as defined in international standards. The purpose of this paper is to propose a security guideline tool for home users based on the implementation of a protection profile (PP) for home user systems.

Design/methodology/approach

The application was developed in three basic steps. First, a PP for home user systems was created on the basis of the international standard ISO/IEC 15408. Then, the paper created a knowledge base including the PP information, as well as a security policy including other international standards, as mentioned above. Finally, the paper created a web application tool to be used as a security guideline for home users.

Findings

This tool is developed in order to support users to understand the threats which affect their environment and select the appropriate security policy. By using this tool, users can access information about international standards in accordance to their level of knowledge.

Research limitations/implications

The authors created a tool based on EAL4. In the future, tools based on EAL1, EAL2, and EAL3 can be created easily on the basis of the present model.

Originality/value

This PP specifies the security requirements for home user information technology (IT) environments, and makes use of the Department of Defense information assurance guidelines and policies as a basis for establishing the requirements necessary for meeting the security objectives. This PP is constructed for use as a reference for home users to create safe home IT environments. Operating systems evaluated against this PP can operate at EAL4.
Assessing and improving authentication confidence management
Authors: Pearce Michael , Zeadally Sherali , Hunt Ray
Published: June 2010

Purpose

The purpose of this paper is to address some weaknesses in the handling of current multi‐factor authentication, suggests some criteria for overcoming these weaknesses and presents a simple proof of concept authentication system.

Design/methodology/approach

First, this paper evaluates some of the underlying practices and assumptions in multi‐factor authentication systems. Next, the paper assesses the implications of these when compared to a quantitative authentication risk management approach. Based upon these implications this paper next note the requirements for an improved system and detail some related research areas that meet these requirements. Finally, this paper discussed how a system that meets these requirements through the application of that research could provide benefits and outlined a simple points‐based authentication system.

Findings

The paper proposes that many of the weaknesses in authentication confidence management could be effectively mitigated through the deployment of a factor independent multi‐modal fusion quantitative authentication‐based system. This paper details a simple point‐based approach that does this and discuss how addressing the problems in handling authentication confidence could further optimise risk management in multi‐factor authentication systems.

Practical implications

This paper's suggestions for optimising multi‐factor authentication have many implications within medium to high‐security commercial and government applications. Correct authentication risk handling enables decisions regarding risk and authentication to be made more accurately.

Originality/value

This implications of the issues discussed in this paper have relevance to anyone who deploys or uses any medium to high‐security authentication system. As the bottom end of the medium to high‐security range includes online banking, there are implications for a wide range of stakeholders.
Earnings Prediction and the Role of Accural‐Related Disclosure: International Evidence
Authors: Kang Tony
Published: June 2010

Accounting accruals are at the heart of most accounting systems. A basic premise of accrual accounting is that it provides a more timely and relevant performance measure than cash flows through a better matching of revenues and expenses. While some prior studies suggest that managers use individual accrual‐related disclosure items in an opportunistic manner, hindering market participants’ ability to predict future firm performance, the market’s expectation about future firm performance will become more accurate and consistent under accrual accounting if the market properly uses such information to set expectations about future firm performance. Consistent with this idea, our evidence shows that the frequency of accrual‐related disclosure is positively (negatively) associated with analysts’ forecast accuracy (dispersion). We interpret this finding as the presence of more detailed accrual‐related disclosure requirements enhancing the market participants’ ability to predict earnings.
Putting Their Money Where Their Mouth Is: The Importance of Shareholder Directors Post Listing
Authors: Dimovski William , Brooks Robert
Published: June 2010

While Luoma and Goodstein (1999) find increased stakeholder representation on the boards of American companies, Dimovski and Brooks (2004) provide evidence that the Australian initial public offering (IPO) market does not require non equity stakeholder representation on their boards. This paper analyses the change in composition of the boards of large Australian companies post listing. We find a substantial increase in the number of directors holding equity capital in the firms in which they hold their directorships. We also find a decrease in the number of non equity stakeholder directors post listing. This suggests that directors putting their money into the firms in which they have a stewardship function is an important element in the Australian capital market.
A Critique of Minimum Variance Hedging
Authors: Dark Jonathan
Published: June 2010

This paper provides a critique of minimum variance hedging using futures. The paper develops the conventional minimum variance hedge ratio (MVHR) and discusses its estimation. A review of the wide variety of alternative methods used to construct MVHRs is then performed. These methods highlight many of the potential limitations in the conventional framework. The paper argues that the literature should focus more on the assumptions underlying the conventional MVHR, rather than improving the techniques used to estimate the conventional MVHR.
Profitability of Trading Rules in Futures Markets
Authors: Anderson John , Faff Robert
Published: June 2010

In this paper we conduct tests for two different trading rules, namely, the Dual Moving Average (DMA) model and the Channel Breakout (CHB) rule. These rules are tested across five futures contracts – the S&P 500, British Pound, US T‐Bonds, COMEX Gold and Corn using daily data over the period 1990 to 1998. Overwhelmingly, we find that the trading rules are unable to produce (gross or net) profits at any statistical level. While positive gross and net profits were available in four of the five markets, the profits were neither economically or statistically significant.
The Impact of Thin Trading Adjustments on Australian Beta Estimates
Authors: Davidson Sinclair , Josev Thomas
Published: June 2010

We investigate the effect standard time series β‐adjustments have on the OLS‐β. We report that most changes are not statistically significant and the β‐adjustments appear to have no relationship to the extent of thin trading. Researchers using β face the difficult choice of using an estimate known to be biased by thin trading, or making an adjustment that may not be statistically significant.
The Effects of Board Characteristics on Earnings Management around Australian CEO Changes
Authors: Mather Paul , Ramsay Alan
Published: June 2010

Prior research has shown evidence of earnings management in financial reports of US and Australian firms changing chief executive officer (CEO). This paper examines whether corporate boards, with certain characteristics associated with strong corporate governance, are effective in controlling any earnings management in the financial reports of Australian firms that change CEOs. Since hiring, monitoring and replacing the CEO are key roles of the board of directors, research in this specific context is considered particularly appropriate. After controlling for contemporaneous and lagged profitability in the year of CEO change, we find evidence of negative unexpected accruals in our sub‐sample of firms where the CEO resigned. For this group, larger boards and a higher proportion of independent directors appear to limit observed negative earnings management. In the case of CEO retirements there is evidence of positive unexpected accruals in the period of CEO change. However, none of the board characteristics show any significant relationship with unexpected accruals. In the period after CEO change, we find no evidence of positive unexpected accruals for CEO resignations and none of the board characteristics show any significant relationship with unexpected accruals. For CEO retirements, our analysis indicates that a higher proportion of executive and affiliated director shareholding goes some way towards counteracting the observed positive unexpected accruals. When lagged unexpected accruals are included in the regression equation to control for accrual reversals, CEO duality significantly increases the already positive earnings management found in CEO retirements in the period following CEO change.
FASB’s Statement No. 133 on Derivatives and Barings Bank: The Case for Value at Risk (VAR)
Authors: Alkafaji Yass A. , Balsara Nauzer , Aburmishan Judith N.
Published: June 2010

Spectacular bankruptcies of the Orange County Investment Pool in December 1994 and Barings Bank in February 1995 mounted a pressure on the U.S. Financial Accounting Standards Board (FASB) to issue Statement No. 133, Accounting for Derivatives Instruments and Hedging Activities (FAS 133). Although measuring derivatives at fair value is a major improvement in accounting for derivatives, such type of accounting falls short of quantifying and reporting the risk of losses associated with derivative instruments. The purpose of this paper is to suggest an alternative approach to market valuation by integrating quantitative market risk estimation into the valuation method. The paper will use the Barings Bank experience to demonstrate how FAS no. 133 disclosure falls short of disclosing the magnitude of the market risk held by the bank at the end of 1994. It will also demonstrate how using a risk‐impacted value would have improved the disclosure of how much the bank stood to lose from their open positions.
Persistence in Mutual Fund Returns: New Zealand Evidence
Authors: Hooper Keith , Davey Howard , Su Roger , Foo Dani A.C.
Published: June 2010

Many studies have discussed mutual funds performance, especially about the persistence of excess returns. Regression is the most common method to be used to research the fund persistence. Dutta (2002) proposes a simpler approach – a direct annual examination of whether a fund beats a market proxy or not, to research the persistence in American mutual fund returns. In this study, authors use a similar methodology to analyse New Zealand growth mutual funds. In addition, a statistically robust method is juxtaposed as a comparison. The study finds that the most of the funds sampled during the period 1996‐2003 are unable to better the benchmark of the world index.
Measuring Contagion in the South‐East Asian Economic Crisis: An Exploration Using Artificial Neural Networks
Authors: Scott Callum
Published: June 2010

An artificial neural network methodology is used to develop a new measure of contagion using exchange rate data from the Asian Crisis of 1997 and beyond. Connection weight changes during retraining of networks used to forecast exchange rates form the basis of this measure. These weight changes are used in obtaining a contribution factor for independent variables used in a forecasting process. Volatilities of contribution factors form the basis of the measure of contagion obtained. These volatilities are statistically validated through a series of simulations where critical values for them are derived. The measures of contagion obtained are then matched to concurrent economic and financial shocks that occurred during the crisis. It is found that there is good correlation between these events and the contagion measures obtained.
A Commentary on Sample Design Issues in Behavioral Accounting Experiments
Authors: Choo Freddie , Tan Kim
Published: June 2010

Behavioral research in accounting deals with the behavior of accountants. As such, it uses accounting subjects. Accounting subjects are very difficult to come by because of the nature of the accounting environment. First, professional accountants operate in a pressured environment in which they have little or no time to participate in behavioral research. Second, professional accountants operate in an environment of high service charges and have little or no interest in participating in behavioral experiments free or for a token remuneration. Third, professional accountants are usually inaccessible because behavioral researchers have few or no opportunities for contacts within a CPA firm. Finally, professional accountants operate in the real world in which they perceive behavioral research as too abstract to have practical value for them to participate in. Given the difficulties in getting accounting subjects, behavioral researchers often lament that the pool of available accounting subjects is very small. As such, they cannot rely on conventional research strategies that assume, among other things, normal distribution and homogeneity of variances. In this paper, we suggest a broad range of research strategies including sampling, design, measurement, and analysis to deal specifically with a very small pool of available accounting subjects. We cite some prior behavioral accounting studies and refer to some statistic textbooks deemed best for the application of these research strategies. Our suggestions should benefit anyone doing behavioral research in accounting.
Accrual or Cash Flow Anomaly? Evidence from New Zealand
Authors: Koerniadi Hardjo , Tourani‐Rad Alireza
Published: June 2010

This paper investigates the presence of the accrual and the cash flow anomalies in the New Zealand stock market for the period of 1987 to 2003. We observe insignificant evidence of the accrual anomaly but find strong evidence of the presence of the cash flow anomaly. However, from 1987 to 1992 – a period before the introduction of the Companies and the Financial Reporting Acts 1993 – the presence of the accrual anomaly was statistically significant suggesting that the introduction of the FRA had a significant impact on the occurrence of the anomaly. We observe further that firms with high discretionary accruals experience significant negative future stock returns. This evidence is consistent with the notion that managers of these firms engage in earnings management.
Visual Portfolio Statistics
Authors: Arnold Tom , Buchanan Bonnie
Published: June 2010

This paper develops visual aids for the understanding of two asset portfolio mathematics. Specifically, visual aids are utilized in teaching portfolio variance and correlation coefficient concepts. The presentation is simple, yet powerful, and is useful for an audience with varying levels of statistical sophistication. Consequently, the visual aids can replace or complement standard presentations of basic portfolio theory.
Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt
Authors: Lally Martin
Published: June 2010

This paper examines the appropriate term of the risk free rate to be used by a regulator in price control situations, most particularly in the presence of corporate debt. If the regulator seeks to ensure that the present value of the future cash flows to equity holders equals their initial investment then the only choice of term for the risk free rate that can achieve this is that matching the regulatory cycle, but it also requires that the firm match its debt duration to the regulatory cycle. Failure of the firm to do so leads to cash flows to equity holders whose net present value will tend to be negative, and will also inflict interest rate risk upon equity holders. This provides the firm with strong incentives to match its debt duration to the regulatory cycle.
Comment on Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt
Authors: Hall Jason
Published: June 2010

Lally (2007) concludes that regulators must estimate the risk‐free rate as the yield‐tomaturity on Government debt with a term‐tomaturity equal to the regulatory period, to ensure that the present value of expected cash flows equals the investment base. The analytics behind this conclusion assume that forward rates are an unbiased estimate of future spot rates, an assumption which is inconsistent with empirical evidence. This has an important economic implication. With the typical case being that the yield curve is upward‐sloping, adopting a short‐term risk‐free rate would result in equityholders being systematically undercompensated for the actual risk involved in a long‐lived project. If we adopt an alternative assumption that current rates are an unbiased estimate of future rates, the regulated rate of return is a function of the entire forward curve of interest rates and the accounting depreciation schedule. For long‐lived assets, benchmarking against the yield‐to‐maturity on long‐dated Government securities results in a far closer approximation of the appropriate return than the use of short‐term rates.
Rejoinder: Regulation and the Term of the Risk Free Rate: Implications of Corporate Debt
Authors: Lally Martin
Published: June 2010

Hall (2007) challenges a fundamental point in the analysis of Lally (2007) and earlier papers: if the risk free rate within the allowed rate of return matches the regulatory term, then the present value of future cash flows PV0 equals equityholders initial investment C(1−L). Hall argues that this result implicitly assumes that forward rates equal expected spot rates. If this were true, it would undercut Lally’s analysis because the empirical evidence does not support the alleged assumption.
Earnings Decomposition and the Persistence of Earnings
Authors: Kean Stephen , Wells Peter
Published: June 2010

Forecasting future period profitability is widely identified as an aim of financial statement analysis, and these forecasts are typically relied upon for the estimation of firm value. To facilitate this, the decomposition of earnings into its components or drivers, is typically advocated. This paper investigates the existence of systematic differences in persistence across the components of earnings. If components of earnings experience differences in persistence, this may provide insights into the determinants of aggregate earnings level and persistence. This paper provides evidence of differences in persistence between components of earnings. Differences are found between components formed on the basis of: financial ratios; operating and financing activities; and cash and accruals. Furthermore, there is evidence that earnings components improve the explanatory power of models evaluating aggregate earnings persistence, with this result being strongest for firms with extreme income decreasing accruals. Due to the pivotal role of earnings in firm valuation, the results from this paper have direct implications for valuation.
Attitudes towards direct marketing, privacy, environment, and trust: Taiwan vs. U.S.
Authors: Lee Monle
Published: June 2010

In recent years, many U.S. direct marketers have expanded their efforts into Asia. A few studies of consumers’ attitudes towards direct marketing were conducted outside of the United States in order to ascertain their attitudes towards direct marketing, privacy, environmental concerns, and trust issues. International direct marketers must take care to respect these issues before entering new countries, such as Taiwan and other emerging markets. The following article reports the results of a survey done in both the U.S. and Taiwan.
Environment disclosure in Malaysia annual reports: A legitimacy theory perspective
Authors: Nazli Nik Ahmad Nik , Sulaiman Maliah
Published: June 2010

This study attempts to apply legitimacy theory to determine if it explains the extent and nature of environmental disclosures made, and the reasons for the disclosure in the context of Malaysian industrial products and construction companies. The study adopts a dual methodology of content analyses of annual reports and a questionnaire survey. Findings show some limited support for legitimacy theory in explaining the nature of disclosure, as well as the reasons for the disclosure. Extent of environmental disclosures is, however, very low. Further research is suggested in other industry sectors to examine if the results are consistent across industry sectors.
Correlates of bribe giving in international business
Authors: Sanyal Rajib , Samanta Subarna
Published: June 2010

Using indices of bribe for 19 countries, this study examines the determinants of bribe paying in international business. There is a strong positive correlation between countries where bribe taking is highly prevalent and those countries that are most likely to offer bribes. The propensity to give
bribes is determined by economic factors such as per capita income and degree of economic freedom in the country, cultural factors such as power distance and masculinity; and legal regulatory factors such as accounting and tax treatment of bribes. It appears that, to eliminate international bribery, the supply side needs to be addressed in addition to the demand for bribes.
Choice of allocation norms and perceived fairness of malaysia corporate management
Authors: Ahmad Khaliq
Published: June 2010

This empirical study based on a survey in Malaysian organizations was conducted to investigate perceived justice in distribution of organizational resources. It was designed to study the issues such as recruitment, promotion, performance appraisal and distribution of other perks and benefits to the workforce. Assuming value differences in the major ethnic groups in the country, namely Malays, Chinese, Indians, and others, the study however, expected differences in allocation decisions made only in Malay and Chinese majority organizations. The findings indicated that, in general, merit was the most important norm of distribution of organizational resources. This was followed by need of the recipient and equality in terms of merit and need. Contrary to expectations, Malay‐dominated organizations had lower preference for relationship, political connection, power and status, race and gender, factors compared to the Chinese. However, perception of minority ethnic groups differed from the majority on several factors including fairness of the allocation decisions. The implications of the findings are discussed in the light of management practices and organizational culture in Malaysian organization.
Sino‐American labor law comparisons: Where do east and west meet?
Authors: Chu Yun , Ma Jianyu , Greene Walter E.
Published: June 2010

Recognizing the difference of labor laws between the U.S. and China, the U.S. parties need to recognize the differences when negotiating and investing in China, because some of the clauses can be settled when signing contracts or agreements. For China’s part, minimum wages are crucial for them to remember when they do business in the U.S.; the good thing is that they do not have to pay holidays that are different from China. Overall, the benefits are tremendous when the differences are recognized in advance of investments, contracts or agreement negotiations. Recognizing the differences between the two labor acts will avoid unnecessary cost and conflicts.
The characterestics of the equally weighted market index and the value weighted market index and their implications for market based accounting research: The case of ase
Authors: Al‐khalialeh Mahmoud A. , Al‐Omari Ahmad M.
Published: June 2010

This study examines empirically the characteristics of the two market indices developed by Amman Stock Exchange (ASE) and their related returns: the equally weighted index (EWI) and the value weighted index (VWI). The monthly‐prices for each index are obtained from ASE for the entire nine‐year period (1992‐2000) to compute market returns for both indices. The study period
is divided into seven intervals of different lengths. The results of the test and the nonparametric (Wilcoxon) test indicate that the value weighted market return (VWR) tends to be significantly higher than the equally‐weighted market return (EWR). The variances of the two market returns tend to decrease as the length of the time intervals increases. Inconsistent with prior research findings, the differences between the two market returns variances failed to be significant at the 0.05 level. The study findings may have implications for capital market research that apply the
market model in emerging markets, in general, and in ASE in particular.
Pricing online: The case of consumer
Authors: Xing Xiaolin , Tang Fang‐Fang
Published: June 2010

In this study, we compare the pricing behavior between online branches of traditional retailers (OBTRs) and online‐only retailers (ORs). Focusing on branded electronics sold online, we find that no significant pricing differences between ORs and OBTRs, but ORs seem to price slightly higher than OBTRs both in terms of posted‐ and full‐prices online. This result seems unique in online retail markets, contrary to the observations in the online markets of books, CDs and DVDs. The evidence also shows that both types of online retailers do not change their prices frequently,
but adjustment magnitudes are large.
Japanese production theory and small business
Authors: Rustagi Narendra
Published: June 2010

The ability of small businesses to make and adjust to the paradigm shift needed to benefit from the Japanese production theory has been questioned in the literature. Zangwill (1992) questioned the limits of the Japanese Production Theory (JPT) and in a subsequent paper (Zangwill, 1994) held on to his argument about the limits of the Japanese Production Theory. In this paper, the Japanese Production Theory is first discussed, followed by a discussion of the consistency between the traditional EOQ theory and the Japanese production theory, critique of the Zangwill’s argument,
and issues related to the relevance of the Japanese production theory to small businesses.
International business negotiations: The case of Pakistan
Authors: Rammal Hussain G.
Published: June 2010

This exploratory study focuses on identifying the key cultural and other contextual influences that affect the process and outcome of commercial negotiations between Pakistanis and Non‐Pakistanis. A survey of negotiators was conducted asking for information, based on their experience, about the business negotiation process involving Pakistanis and Non‐Pakistanis. Utilizing the studies of Hofstede, and Salacuse, the responses of Pakistani and Non‐Pakistani negotiators are analyzed and cultural traits displayed by Pakistani negotiators in international business negotiations are identified.
Factors influencing corporate compliance with financial reporting requirements in New Zealand
Authors: Owusu‐Ansah Stephen
Published: June 2010

This paper investigates factors that influence the extent of corporate mandatory disclosure practices in New Zealand over a three‐year period. Researcher‐created disclosure‐scoring templates consisting of mandated information items from three regulatory sources were used to derive indexes of disclosure in financial annual reports of the sample companies. Regression analysis suggests that company age is the most critical factor in explaining the extent of mandatory disclosure practices of the companies. The results also indicate that company size, liquidity, profitability, existence of audit committee, and auditor‐type are consistently positively related to the extent of corporate mandatory disclosure. Further research opportunities are suggested.
An intergrated social science perspective on global business ethics
Authors: Paulson Steven K.
Published: June 2010

A social science classification model is described which identifies three traditional global business ethics perspectives and a fourth perspective which presents a more useful integration of elements of the others. The perspectives are identified as personal, social, cultural and integrated. The literature on business ethics is discussed and categorized according to these perspectives. The integrated perspective points to collaboration and ethical displacement as
offering the most promise for the solving of international ethical dilemmas faced by business managers.