bluuebunny/crossref_metadata_2025 huggingface dataset:
Market Reaction To Changes In Dividend Payments Policy In Jordan
Authors: Al-Shattarat Wasim K. , Al-Khasawneh Jamal A. , Al-Shattarat Husni K.
Published: February 2016

The purpose of this paper is to examine empirically the signalling theory for a sample of firms listed at Amman Stock Exchange (ASE) during the period 2001 to 2006. The sample consists of 215 observations. The Event Study Methodology (ESM) is employed to examine the market reaction to dividend change announcements. The nave model is used to classify the sample under four sub samples; Dividend Increase, Dividend Decrease, Dividend No Change and No Dividend No Change. The market model, mean adjusted model, market adjusted model, market model adjusted with Scholes and Williams and market model adjusted with Fowler and Rorke models are used to generate the expected returns. Also, the t-test, ZD test and Corrados non-parametric test are used to examine the significance of the mean and cumulative abnormal returns. Overall, the results show that the market reacts positively to dividend increase, dividend decrease and dividend no change announcements. In addition, the results indicate that there is no significant market reaction to dividend no change sample with zero distributions. This result indicated that there is little value-relevance to dividend change announcements. The interpretation of the positive market reaction is related to dividend release announcements rather than dividend changes. Therefore, there is some support to the signalling hypothesis to dividend release. Furthermore, applying thin trading models and non-parametric tests leads to the same conclusion.
Financial Crisis During 2007 And 2008: Efficient Markets Or Human Behavior?
Authors: McCarthy Mary , Solomon Paul , Mihalek Paul
Published: February 2016

The recent U.S. financial crisis, the U.S. stock market crash of 1987, and other recent anomalies have seriously challenged Famas classic efficient capital markets hypothesis. These events have made it likely that future capital markets research will be enriched by the important role that human behavior plays in the success or failure of the financial markets. This paper examines the factors causing the recent crisis within the United States financial services sector, the degree to which it may be explained by efficient capital markets theory and the degree to which such behavioral finance concepts as noise, excessive volatility, fashion and fads, and irrational behavior compromise that theory.
Predicting Auditor Changes With Financial Distress Variables: Discriminant Analysis And Problems With Data Mining Approaches
Authors: Eldridge Susan , Kwak Wikil , Venkatesh Roopa , Shi Yong , Kou Gang
Published: February 2016

Our study extends previous research that uses financial distress factors in predicting auditor changes by evaluating the effectiveness of the traditional discriminant analysis model, not used in previous auditor change studies, and by highlighting the importance of evaluating the likelihood that data mining approach classification results occurred by chance. Significance of individual predictor variables, as well as of the full set of 13 financial variables, can be tested using discriminant analysis. Kwak et al. (2011) document overall classification accuracy rates ranging from 61 to 63.5 percent for the four data mining models they compared but did not address whether these rates occurred by chance. Using Kwak et al.s (2011) data set of firms changing auditors in 2007 or 2008 and matching non-auditor change firms, our discriminant analysis test results show overall accuracy rates of less than 56 percent and true positive rates over 85 percent, but these rates are influenced by a disproportionate number of non-auditor change firms being classified as auditor change firms. Individual predictor variables that are important in the discriminant equation based on standardized canonical coefficients include losses (LOSS) and no payment of dividends (DIV) in the year prior to the auditor change, retained earnings as a percent of total assets (RE/TA), and earnings before interest and taxes as a percent of total assets (EBIT/TA). The Kappa statistic and AUC metrics for all 13 data mining algorithms we used indicate that classifications using these algorithms are no better than random classifications.
Implications Of Basel III For Capital, Liquidity, Profitability, And Solvency Of Global Systematically Important Banks
Authors: Prefontaine Jacques
Published: February 2016

The objective of this paper is to study the profitability and solvency implications of the proposed Basel III capital and liquidity requirements in the global banking context. The intent is to improve our understanding on how the Basel III capital and liquidity requirements impact upon the functioning of global systematically important banks (GSIBs), and how this knowledge could prove to be useful in answering questions of policy relevance like financial stability in economics. A longer-term perspective is taken in order to link capital and liquidity requirements with the notion of systemic risk within the evolution of the international financial and monetary system. Of special interest is the interaction between macroeconomic policy - including monetary, exchange rate and combined micro-macro-prudential policy within the setting of present-day Basel III regulatory and supervisory reforms. More specifically, the paper addresses two related issues: first, it studies and presents several financial indicators that GSIBs disclose; second, it examines how these same indicators could be related to GSIBs profitability and solvency.
Is There A Periodically Collapsing Bubble In The Indian Real Estate Market?
Authors: Vishwakarma Vijay Kumar
Published: February 2016

The study finds evidence in favor of Evans (1991) definition of periodically collapsing speculative bubbles in the Indian real estate market when the market is tested for a bubble by examining data from May 1, 2009, to May 30, 2012. Using consistent momentum threshold auto regressive (MTAR) model developed by Enders and Siklos (2001) with Chans (1993) methodology, this study finds evidence of co-integration as well as asymmetric adjustment toward long-run equilibrium, which is evidence of a periodically collapsing positive speculative bubble. However, except for the residuals-augmented DickeyFuller (RADF) test, none of the conventional tests such as the augmented DickeyFuller and the PhillipsPerron tests find evidence of a bubble.
The Long-Term Performance Consequences Of Strategic Partnerships In High Tech Industries
Authors: Callahan Carolyn M. , Smith Rod E. , Spencer Angela Wheeler
Published: February 2016

In this paper, we examine how inter-firm partnerships impact long-term operating performance. With a global economy, rapid product cycles, capital constraints and advances in technology, firms seldom possess all the capabilities necessary to maintain and grow market share. Consequently, firms rely on a variety of partnerships. Theory suggests that firms enter such relationships to improve performance through access to new products, new markets, or new capabilities. Yet, relatively little is known about the long-term impact of collaborative arrangements such as alliances and established major customer relationships, although such dual partnership arrangements can have a major impact on the firms performance success. Our empirical results indicate that inter-firm partnerships affect operating performance, but the impact often depends on the industry, the nature of the firm, and the type of partnership.
Empirical Examination Of Effects Of Web Assurance Seals On Perceived Level Of Assurance And Price Tolerance With A Focus Being Placed On CPA-Associated Seals
Authors: Kim Seung Hwan
Published: February 2016

Since the emergence of electronic commerce (e-commerce), the trustworthiness of commercial web sites has been one of the most important, persistent, and interesting issues both in industry and academia. Not surprisingly, web assurance seals have attracted considerable attention among e-commerce vendors due to its potential role as a key factor in the formation of initial trust. However, recent evidence indicates that web assurance seals fail to enhance online purchasing behavior in spite of rosy promises from seal providers. This research examines the mechanism of perceived assurance level formulation through the use of web assurance seal, seeking possible answers to whether Certified Public Accountant (CPA)-associated seals have more effect on the perceived assurance levels than non-CPA-associated seals. As such, the success of web assurance seal is contingent on multiple factors including the attributes of the assurance seal providers, the perceived value of the seal, and the familiarity of the web assurance seal. Overall, this article contributes to both practice and research by shedding light on the largely ignored phenomenon, namely, of web assurance seal failure and by exploring fundamental factors affecting web assurance seal initiatives success.
Dividend Signalling Hypothesis In Emerging Markets: More Empirical Evidence
Authors: Al-Shattarat Wasim K. , Atmeh Muhannad A. , Al-Shattarat Basiem K.
Published: February 2016

The main objective of this study is to examine empirically the signalling theory for a sample of firms listed at Amman Stock Exchange (ASE) during the period 2005 to 2010. The sample consists of 183 observations and 132 observations for dividend release sample and no-dividend release sample, respectively. Event Study Methodology (ESM) is applied to examine the market reaction to dividend release announcements. The market model is used to generate the expected returns. Also, the t-test is used to examine the significance of the mean and cumulative abnormal returns. Results from the dividend release sample shows that there is a significant positive abnormal return on the announcement days. Also, it shows that there is an overreaction straight after the announcement day, then a correcting attempt in the post event and then it goes back to normal, which is consistent with the signalling hypothesis. For the no-dividend release sample, the results show no significant abnormal return on and around the announcement days which is again consistent with the signalling hypothesis. Our results are consistent with Al-Shattarat et al. (2012) suggestions that there could be value relevance for dividends rather than dividends change. Our findings show that there is value relevance for dividends and thus supporting the signalling hypothesis.
Impact Of SCM Practices Of A Firm On Supply Chain Responsiveness And Competitive Advantage Of A Firm
Authors: Thatte Ashish A. , Rao Subba S. , Ragu-Nathan T. S.
Published: February 2016

Todays supply chains are expected to respond rapidly, effectively, and efficiently to changes in the marketplace to sustain, succeed and create competitive advantage in this increasingly global marketplace by focusing on time, flexibility, and speed of response. The focus of this study is the supply chain responsiveness construct and a firms practices to respond to customers demands and constantly changing market conditions to create competitive advantage. This research conceptualizes three dimensions of supply chain responsiveness and develops a reliable and valid instrument for measuring this construct. The study further tests the relationships between supply chain management (SCM) practices, supply chain responsiveness, and competitive advantage using structural equation modeling based on 294 responses from industry professionals in the manufacturing and supply chain area. Research findings point out that higher level of SCM practices can lead to improved supply chain responsiveness and enhanced competitive advantage of a firm. Also supply chain responsiveness can have a direct positive impact on competitive advantage of a firm.
The Relationship Between Compensation, Motivation, And Earnings Management
Authors: Achilles Wendy W. , Blaskovich Jennifer , Pitre Terence J.
Published: February 2016

Regulators and investors remain concerned with earnings management and its effect on the reliability of accounting information. Agency literature suggests that a lack of compensation incentives (i.e., bonus payments) can decreasebut not completely eliminate--earnings management behavior, while theory from psychology suggests that individuals may be motivated to manage earnings, regardless of compensation. Consequently, we examine how compensation incentives and motivation (intrinsic versus extrinsic) affect earnings management behavior. We hypothesize and find that when compensation is linked to firm performance, managers make income increasing (decreasing) decisions when current earnings are below (above) analysts forecasts. We find that in the absence of compensation incentives, managers make earnings increasing decisions when current earnings are below analysts forecasts, but they do not make earnings decreasing decisions when current earnings are above analysts forecasts. Finally and most importantly we show that managers who possess strong extrinsic motivation are more likely to manage earnings upwards to reach targets in the absence of compensation possibly because it helps satisfy their competitive spirit and need for recognition. However when current earnings are above the target (analysts forecasts), managers are not compelled to manage earnings as this drive has already been satisfied.
An Evaluation Of Workplace Wellness Programs: A Perspective From Rural Organizations
Authors: Zula Ken , Yarrish Karen K. , Lee Sonji
Published: February 2016

This paper describes a study to determine the prevalence and characteristics of employee wellness programming amongst rural organizations and/or employers. A sample of convenience (n = 200) from a local human resource management association was surveyed via e-mail with an internet based questionnaire containing 20 items regarding employee wellness programming, activities, effectiveness, and measurement. The results indicated that the primary responsibility for employee wellness programming rests with the human resource department (63.6%). Most rural organizations employee wellness program are implemented to improve employee health, improve employee productivity, and to reduce absenteeism. The findings indicate human resource professionals in rural organizations are struggling to determine effective measures for employee wellness programs despite significant investments of money. Rural, unlike urban or metropolitan, based organizations are not offering substantial incentives to employees in order to increase participation, and are continuing to offer traditional employee wellness activities such as smoking cessation, and vaccinations. These employers are not measuring effectiveness (53%) and not realizing substantial cost savings (63.2%) for the return on investment.
Perceptions Of Unemployed Workers: Unemployment Duration, Volunteerism, And Age
Authors: Shore Ted H. , Tashchian Armen
Published: February 2016

This study investigated the effects of unemploymentduration, volunteerism and age on perceptions of unemployed job candidates. Anexperimental design was employed in which participants judged fictitiousresumes of unemployed candidates. Wefound that candidates unemployed for 18 months were viewed as less qualifiedand would be less likely to be interviewed and hired than those unemployed for6 or 12 months at all age levels (30, 40, 50) studied. Candidates who hadperformed volunteer work (career- or non-career-related) would be more likelyto be interviewed and hired than those who had not volunteered. Implications of the findings were discussed.
Inflation Risk, Exchange Rate Risk, And Asset Returns: Evidence From Korea, Malaysia, And Taiwan
Authors: Saleem Kashif
Published: February 2016

In this paper we investigate whether inflationand currency risks are priced in the Korean, Malaysian and Taiwan stock marketusing conditional international asset pricing models. We take the view of a USinvestor. The estimation is conducted using a modified version of themultivariate GARCH framework of De Santis and Grard (1998). We use a sampleperiod from 1988 to 2009. The results show that the world market risk is pricedon Korean, Malaysian, Taiwan and US stock markets. We find the currency and inflationrisk to be also priced on Korean, Malaysian and Taiwan market.
The Evolution Of Strategies: Multinational Subsidiaries Operating In China
Authors: Salazar Ronald J. , Wang Jifu
Published: February 2016

This is a study of the evolution of strategies of large multinational (MNC) firms doing business in China. Using the TOWS approach (Weirich, 1982) we classified the strategic posture of MNC subsidiaries in China into four discrete frames based on a survey of large firms. The results of our study applying the TOWS approach have allowed us to expose the trend of strategic evolution. We find that the primary investment motivation of MNS in China has changed from low labor cost to exploiting Chinese market. We report the motivations, actions, and aspirations of the managers of largest multinational subsidiaries operating there.
Web Traffic And Firm Performance: Evidence From The MENA Region
Authors: Farooq Omar , Aguenaou Samir
Published: February 2016

Does the traffic generated by websites of firms signal anything to stock market participants? Does higher web-traffic translate into availability of more information and therefore lower agency problems? And if answers to above questions are in affirmative, does higher web-traffic traffic translate into better firm performance? This paper aims to answer these questions by documenting a positive relationship between the extent of web-traffic and firm performance in the MENA region during the 2010. We argue that higher web-traffic lowers the agency problems in firms by disseminating more information to stock market participants. Consequently, lower agency problems translate into better performance. Furthermore, we also show that agency reducing role of web-traffic is more pronounced in regimes where information environment is already bad. For example, our results show stronger impact of web-traffic on firm performance in civil law countries, firms with concentrated ownership, and firms with more intangible assets. All of these groups are characterized by higher agency problems. Our results, therefore, indicate that web-traffic can play a substitute for traditional governance mechanisms in the MENA region.
Social Responsibility And Globalization
Authors: Candy Val
Published: February 2016

Ethics is an evaluation of moral decisions and the processes involved in making them. The term also encompasses the study of moral standards and how they apply to the social systems and organizations through which modern societies produce and distribute goods. This paper argues that moral judgments do not always transfer readily onto ethical conduct in geographically and culturally diverse nations. The existing literature tends to reject relativism in addressing how multinational organizations are guided by a core set of ethical principles regardless of the culture within which they operate. The dilemma arises when multinationals need to avoid imposing American ethical ideology and formality in localized subsidiaries. This paper extends this dilemma to government intervention in foreign affairs and discusses how ideological positions can conflict within the same culture. This is apparent in the challenge government and private sector meet when balancing issues such as climate change with human rights. This paper supports an integrated approach toward bringing stability to influential oil-producing nations.
Management Of Accrual Components In Response To Corporate Income Tax Rate Changes: Evidence From Korea
Authors: Choi Won-Wook , Lee Hyun-Ah
Published: February 2016

Changes in the statutory corporate income tax rate provide firms with an opportunity to reduce their tax burden by shifting their taxable income from higher to lower tax rate years. One negative consequence of shifting taxable income across years is higher variation in book income for financial reporting purposes. Taxable income and book income are closely related in most countries, and, in general, reporting volatile book income across years is not a favorable signal to investors. This study investigates how firms shift taxable income and concurrently mitigate book income fluctuation by managing accrual components separately when the statutory income tax rate changes. Unlike prior studies, we decompose discretionary accruals into two components and examine distinctive patterns of accrual management in Korea, where book-tax conformity is high and aggressive tax avoidance is restricted. We find that firms manage book-tax accruals for taxable income shifting and manage book-only accruals to mitigate book income fluctuation. Furthermore, we find the extent of book-tax and book-only accruals management varies depending on the firms tax and financial reporting costs. The results of this study provide clear and compelling evidence of firms opportunistic accrual management behavior in response to statutory tax rate reduction.
Transmission Of The Subprime Crisis: Evidence From Industrial And Financial Sectors Of BRIC Countries
Authors: Nikkinen Jussi , Saleem Kashif , Martikainen Minna
Published: February 2016

Although, there is an apparent consensus about the contagion effects of the current US subprime crisis. However, the transmission and repercussions of US subprime crisis, as well as the nature of the transformation suffered by different economic sectors between the US and other markets are such empirical questions that have not been dealt with comprehensively, yet. In this paper, by utilizing the multivariate GARCH analysis of Engle and Kroner (1995) for which a BEKK representation is adopted, we examine the transmission of the US subprime crisis across BRIC financial markets. Moreover, to identify the extent of contagion, we also inspect the diffusion of US subprime crisis to BRIC equity markets financial and industrial sectors. We found interesting evidence of volatility spillovers from US financial sector to all the BRIC markets financial sectors both in the full sample and crisis period. Similarly, except Chinese industrial sector, we observe contagion effects from US to Brazilian, Russian and Indian equity markets industrial sectors. Our results exhibit direct linkage for both returns and volatility between the US equity market and the BRIC markets. Equity markets of Russia and India, however, were found hardly hit during the crisis period among the BRIC countries. Finally, we found no support for the decoupling view while investigating the fastest growing emerging markets, the BRIC countries.
A Comparison Of Private And Public Sector Performance
Authors: Caemmerer Barbara , Dewar Alistair
Published: February 2016

In the past, public sector organizations have been used as examples of service atrocities but in light of unstable overall customer satisfaction levels across countries and industries the purpose of this research note is to investigate whether their private counterparts fare much better in terms of service performance. A quantitative, quasi-experimental study was carried out with 200 respondents. The survey tool was based on the SERVQUAL framework to compare recipients service expectations and perceptions in private and public service settings. The results reveal no significant differences between expectations towards and perceptions of private and public services. The traditional SERVQUAL dimensions explain 74% of overall satisfaction in the public, and 87% in the private sector. As this is a cross-sectional study more research is necessary to understand whether the results are due to an amelioration in the public and a deterioration in the private sector, or vice versa, or neither. The study stimulates debate and further research into the underlying reasons for customers similar expectations and perceptions across sectors. Is actual service performance across sectors assimilating? Or do perceptions in one sector setting impact on expectations and perceptions in another?
Environmental Reporting Practices In Malaysia And Australia
Authors: Yusoff Haslinda , Othman Radiah , Yatim Normahiran
Published: February 2016

The purpose of this paper is to investigate the state of environmental reporting by Malaysian and Australian companies on other reports, i.e. other than annual reports. The paper employs content analysis to study the environmental disclosures made by the selected 100 companies in the two countries. Regression analysis is performed on potential influencing factors for environmental reporting. The findings are also compared to previous studies on environmental reporting in corporate annual reports by Yusoff and Lehman (2008). The paper finds that environmental reporting in other reports (Malaysia and Australia) are largely descriptive and in qualitative form. In addition, the influencing factors for environmental reporting are of similar quality to those made in annual reports, in both countries. These findings imply that this type of communicating environmental information does not contribute greater corporate accountability among companies in fulfilling stakeholders needs and demands for environmental information. Hence, more efforts are needed to promote better and greener environmental reporting practice. This study comparatively explores the environmental practices and interprets the possible link between influencing factors for environmental reporting and actual environmental reporting practices on a two-country basis, between Malaysia and Australia.
The Labor Force Participation Rate: An Examination Of The Determinants Of Its Recent Precipitous Decline
Authors: Litzinger Patrick J. , Dunn, Jr. John H.
Published: February 2016

The Labor Force Participation Rate (LFPR) is defined as those Americans in the labor force, i.e. above the age of sixteen, below retirement age, who are either actively employed or actively seeking employment. From 1950 until 1998 it rose from 59.2% to 67.2%. Given the near doubling of the U.S. population, its impact on our economy was enormous. However, since 1998 the LFPR has declined steadily to 63.3%. Parallel to this decline, we have seen a polarization of both wealth and income in the U.S. Many economists have examined both trends the decline of LFPR and inequality and have put forth a variety of determinants. These include technology and globalization a decline or hollowing out of the middle class, if you will. Also included are the demographics of an ageing society, and the increased racial and gender participation, but also a workforce that has become only marginally prepared by todays educational institutions. Another class of determinants is the welfare safety net at both the Federal and state levels, including extended unemployment benefits, disability payments and other subsidies. The authors examine each class of determinants, including whether their aspects are cyclical, structural or even part of an ominous trend for our economy.
Computer Education And Computer Related Professions Of The Future
Authors: Emerson Glen D. , Malliaris Mary E.
Published: February 2016

The purpose of this paper is to examine current positions in literature with regards to computer education and future jobs related to computer usage.The expansion of the use of computers has made computer literacy as essential as the basic skills of reading, writing, and arithmetic. Morf related the rapid expansion in the use of computers as follows: Among the more widely accepted scenarios of the future at work are those based on the assumption that technology will continue to grow exponentially (1983, p. 24). Therefore, as technology grows, our educational programs must incorporate the new knowledge necessary to function in the world of the information age. As Hart stated: We must prepare now to respond to the new technologies that will shape our future (1983, p. 11).
Projected Federal Government Computer Personnel Needs: Results Of An Oklahoma Survey
Authors: Emerson Glen D. , Malliaris Mary E.
Published: February 2016

The purpose of this paper is to report the results of a study made to determine the projected performance requirements and skills (training needed) by personnel entering governmental information processing jobs during the next several years as viewed by supervisors in governmental agencies. The specific problems addressed are as follows:1. The identification of the performance requirements for computer programmers and systems analysts which government employers expect to be needed for employment in the field of information processing during the last have of the 1980s;2. The effectiveness of currently employed computer programmers and systems analysis as determined by supervisor assessment;3. Identification of the areas in which colleges and universities will need to make curricular changes in order to provide the government as well as the business community with properly trained professionals in information processing.
An Empirical Investigation Of The Use Of Local Area Network In The Midwest
Authors: Beheshtain Mehdi
Published: February 2016

The development of relatively inexpensive hardware has enabled an organization to install multiple computing elements at the same location (e.g. microcomputers). Local area networks provide a method to economically interconnect the computing elements and allow information sharing on a local basis as already popularly found in long-distance networks. This paper presents the results of a survey of several organizations in the Midwest to determine the extent of their involvement with local area networks.
A Practical Approach To Selecting Computer Software
Authors: Jones Daniel J. , McHugh James E.
Published: February 2016

The selection of computer software can be, and often is, a long and arduous task for businesses. This process can be made much easier by using a phased step-by-step approach such as the one outlined in this article. Two commonly made mistakes during the selection process are (1) assuming that the problem is a computer problem and (2) believing the best solution will become magically apparent after discussions with several vendors of computer software. Our success in helping clients select software that is most appropriate for their organization is based upon not narrowly defining a computer problem. We define, and then solve, business problems. The focus should be primarily on the management information needs of the organization.
Survey Of Business Graduates: The Where And Why Of Job Selection
Authors: Malone Charles F. , Robinson Ida B.
Published: February 2016

What are business school graduates looking for in their first job? Are there differences between men and women in the relative importance of factors affecting the choice of an initial position? These questions should be of considerable importance to employers seeking to recruit recent business graduates.To assess the relative importance of various factors on the selection of an initial job, questionnaires were mailed to all 1982 through 1984 accounting graduates of an AACSB accredited undergraduate business program. Sixteen factors were listed on the survey instrument and participants rated these factors on a scale ranging from not important to very important. Respondents were also requested to rank their top three factors.
Estimating A Residence-Employment Distribution: An Application Of The Double-Constrained Gravity Model
Authors: Venta Enrique R.
Published: February 2016

A complex problem in socio-economic planning deals with the measurement of the interaction between zones or activity regions. This problem has received considerable attention in transportation, planning, economics and geography, and several types of analytical models have been developed. Several models are inspired by the assumption that the socio-economic forces governing the urban spatial location process behave in analogous ways to the physical interaction of bodies as described by Newtons gravitational law.In this work, a double constrained gravity model was used to estimate the interaction between geo-political zones due to resident labor population and employment opportunities. The work is part of a larger project which attempts to evaluate different industrial development strategies for the southwestern part of Puerto Rico.
Prospective Payments: Will DRG Compensation Reduce Medical Costs?
Authors: Keating Barry , Addis Howard
Published: February 2016

The buzzword in the health care field today is prospective payment. Hospitals are phasing in a new system of Medicare reimbursement which covers some 26 million Americans; the system embodies the concept of the hospital knowing in advance exactly what the government will pay for a given patient (hence the term prospective).Hospitals which provide treatment under the fixed prospective rate may keep the change; those hospitals exceeding the prospective rate must absorb the costs themselves. Because many administrators believe such a prospective payment plan will not only cover Medicare patients (as it does now) but most hospital patients in the not-too-distant future, hospitals are beginning to use sophisticate systems to monitor individual physician resource consumption, payor activity and diagnostic trends. In short, the hospitals feel they are coming under new pressure to be cost-conscious.
On The Separability Of The Real And The Financial Decisions Of A Firm: A Review
Authors: Prezas Alexandros P.
Published: February 2016

This paper demonstrates the necessity for the simultaneous determination of a firms investment, production and capital structure decisions in imperfect capital markets. The non-separability of the three corporate decisions arises from the fact that the savings and/or costs due to the market imperfections for different financial packages can be imputed to the effective cost of the firms real variables. Thus, shifts in the firms capital structure lead to adjustments of the firms investment and production decisions, which in turn cause a change in the firms value. Given the necessity for an integrated approach, the paper examines the extent to which the literature has taken into account the interactions between the three corporate decisions when addressing the optimal capital structure question.
Corporate Motives In Bond Refunding And Calling: A Survey
Authors: Vu Joseph D.
Published: February 2016

This paper provides the results of a survey of corporations which called nonconvertible bonds in the period from 1962 to 1978. The survey shows that interest saving is the most important motive for calls and refunding. Moreover, the evidence indicates that there are profitable opportunities to call bonds trading at a discount. The survey may help resolve conflicting results in evaluating the bond refunding process.
Bank Efficiency And Financial Ratios: Rating The Performance Of The Four Largest South African Banks
Authors: Van der Westhuizen Gerhardus
Published: February 2016

Data Envelopment Analysis (DEA) in conjunction with financial ratios is used to estimate and compare the performance of the four largest South African banks over the period 2001 to 2011. DEA is used to estimate the relative technical, allocative, cost and scale efficiencies and compare these estimates to certain financial ratios published by the banks in their financial statements. These ratios include return on equity (ROE), return on assets (ROA), net interest margin (NIM), impairment losses, etc. The results obtained from the efficiency estimates and the financial ratios are used to rate the banks according to these performances. The rating differs depending on which performance measure is applied. A combination of these measures was necessary to determine the best and the worst performing bank. From the results obtained it appears that profitability and efficiency are two sides of the same coin.
The Effect Of Higher Wages On Production Cost And Mechanization: A South African Maize Sector Study
Authors: Saayman Lehanri , Middelberg Sanlie L.
Published: February 2016

The South African labor market was recently characterized by violent and hostile labor strikes by workers demanding exorbitant wage increases. These demands and violent protests overflowed to the agricultural sector, followed by an announcement of a 51% increase in the agricultural minimum wage. Labor costs form an integral part of a producers production costs and labor increases will therefore directly affect the profitability of producers. The purpose of this study is to investigate the effect higher wages have on the South African maize sector. Furthermore, to determine whether there is a relationship between higher labor cost and increased mechanization in the maize sector. Quantitative and qualitative research techniques were utilized to address the research problem. The findings of the study include that the higher wages do not have a significant effect on the maize sector as it is less dependent on manual labor and therefore more tolerant to wage increases. Furthermore, it was determined that there is a relationship between the maize sectors level of mechanization and the impact of higher wages. It was found that the maize sector is more developed and mechanized than other agricultural sectors. Notwithstanding, it is recommended that the sector should maintain the investment in mechanization to increase global competitiveness.
Workplace Wellness Programs: A Comparison Between Best Practice Guidelines And Implementation
Authors: Zula Ken
Published: February 2016

This paper describes a study to determine best practice guidelines for employee wellness programming amongst organizations and/or employers. A sample of convenience (n = 200) from a local human resource management association was surveyed via e-mail with an internet based questionnaire containing 19 items regarding employee wellness programming, activities, effectiveness, and measurement. The results indicated that Best Practice Guidelines can be established from empirical literature. In addition, the findings indicate employers are implementing best practice guidelines in their existing workplace wellness activities. Most employers are participating in and engaged in workplace wellness activities which utilize effective communication, continuous improvement, accessible and involve employees, and partner with existing and established business relationships to create wellness activities. One area which requires further evaluation and development is the engagement of leadership within organizations.
Stock Market Reactions To Sovereign Credit Rating Changes: Evidence From Four European Countries
Authors: Fatnassi Ibrahim , Ftiti Zied , Hasnaoui Habib
Published: February 2016

We analyze the reactions of the returns of four European stock markets to sovereign credit rating changes by Fitch, Moodys, and Standard and Poors (S&P) during the period from June 2008 to June 2012 using panel regression equations. We find that (i) upgrades and downgrades affect both own country returns and other countries returns, (ii) market reactions to foreign downgrades are stronger during the sovereign debt crisis period, and (iii) negative news from rating agencies are more informative than positive news.
Does More Corporate Governance Enhance Managerial Performance? CFO Perceptions And The Role Of Mindfulness
Authors: Williams John J. , Seaman Alfred E.
Published: February 2016

The results of studies into the effects of enhanced governance structures have been equivocal and there is virtually no literature on the performance effects of individual managers, such as the professional accountant in practice. This paper reports the results of an empirical study designed to assess the relationship of governance structures, specifically the conformance and performance dimensions defined by the International Federation of Accountants (2009), to mindfulness and managerial performance among CFOs in Canadian firms. Organizational theory describing high reliability organizations provides the theoretical framework for specifying and appraising capacity for mindfulness. As predicted, there is no significant direct relationship between governance and managerial performance for the conformance dimension; instead, this relationship is explained by the path through capacity for mindfulness and on to managerial performance, both of which are positively significant. Likewise, there is no significant relationship between governance and managerial performance for the conformance dimension; however, although there is a significant path between the performance dimension and capacity for mindfulness, the path from the latter to managerial performance is insignificant. Implicating the powerful role of the controllability principle in accounting may explain this unexpected finding.
Introducing Foreign Strategic Investors And Net Interest Margins In Chinese Banks
Authors: Zhao Hong , Ou Peiyu , Lin Jerry W. , Zhang Junrui
Published: February 2016

Introducing foreign strategic investors is a vital step in Chinas ownership reform of commercial banks. Using data from 81 commercial banks in China between 1995 and 2010, we investigate the effects of introducing foreign strategic investors and ownership structure on net interest margins. Three primary results emerge. First, introducing foreign strategic investors reduces net interest margins. Second, state-owned commercial banks have lower net interest margins than non-state-owned commercial banks. Third, we also find the effects of introducing foreign strategic investors on net interest margins in state-owned commercial banks are weaker than those in non-state-owned commercial banks. These results passed robustness tests.
A Comparative Study On The Effects Of Market Crisis And Recessions On The Performance Of Defensive Sectors
Authors: Ole-Meiludie Elikanami , Mashinini Sizwe , Huang Chun-Sung , Rajaratnam Kanshukan
Published: February 2016

Research has shown that the performance of defensive sectors is consistent during a recession. However, whether such consistency still holds during periods of market crisis, which is considered an economic anomaly, is not immediately obvious. This paper proposes a further investigation into the performance of defensive sectors during a market crisis, particularly on the Johannesburg Stock Exchange (JSE). It will investigate whether these defensive sectors retained their non-cyclical nature during the recent market crisis (01/12/2007 31/08/2009) by comparing their performance during the crisis to their performance in South Africas most recent recession (1/12/1996 31/08/1999). Our investigation is carried out by assessing the betas of these sectors across both periods of focus. It then adds to the assessment of the betas by comparing the variances of the defensive sectors in both periods to determine whether there is a statistically significant difference. Our study is unique in that it proposes to investigate with the different market capitalisations (large, medium, and small) across the defensive sectors. The results of this study give conclusive evidence that defensive sectors do indeed remain non-cyclical during a market crisis. We can therefore give recommendations on switching to defensive strategies with greater certainty of the performance of defensive sectors during this economic anomaly.
Examining The Effect Of Change In CEO Gender, Functional And Educational Background On Firm Performance And Risk
Authors: Elsaid Eahab
Published: February 2016

The purpose of this paper is to examine, within a succession framework, the impact of the change in CEO gender from female to male on firm performance and probability of bankruptcy. We also examine the impact of change in CEO functional and educational background on firm performance and probability of bankruptcy. We use paired sample t-tests and ordinary least squares regression analysis on 46 CEO successions where the outgoing CEO is a female and the incoming CEO is a male. The results show that a change in CEO gender from female to male is associated with an increase in firm performance and a decrease in the firm probability of bankruptcy. Furthermore, the percentage change in firm performance is negatively related to the change in CEO functional and educational background. The percentage change in firm probability of bankruptcy is positively related to the change in CEO functional and educational background. Firm management and board of directors should be aware that there is such a thing as too much change around a succession event and that it has an adverse effect on firm performance and probability of bankruptcy
A CGE Simulation Of A Flat Tax As A Possibility For Tax Reform In South Africa
Authors: Bonga-Bonga Lumengo , Perold Martin
Published: February 2016

During recent years, there has been widespread interest in South Africa for the so-called flat tax systems that appear to have been implemented successfully in Eastern Europe. This paper applied a CGE modelling technique to compare the performance of the South African economy in case alternative tax systems, namely the progressive and the flat tax systems, are applied. The counterfactual situation whose effects are tested in this paper is a 10% decrease in the VAT rate consistent with some popular call for the reduction of the degree of the regressiveness of VAT. The key performances of the South African economy are assessed in terms of economic growth, the welfare of households, equity and employment. On the basis of this empirical investigation the flat tax has a slight edge over the current progressive system.
Sales Bottlenecks And Their Effect On Profit
Authors: Veltman Mark , Kooij Robert , Marban Sebastian
Published: February 2016

This study introduces the term sales bottleneck, defined as a stage in a total production or service delivery process that limits sales. After analyzing the suitability of traditional methods to find sales bottlenecks, the study proposes the bottleneck accounting model as a method to determine sales bottlenecks and calculate the effect of each of these bottlenecks on profit. Analytical verification shows that this method finds all sales bottlenecks and determines the exact effect on profit. Finally, the methods effectiveness is tested in practice by means of a case study performed within the Rabobank.
Practice Of Accounting Conservatism In MBE Firms
Authors: Park Sang Hyun , Lee Jaywon
Published: February 2016

Managers sometimes manage earnings upward (i.e., engage in earnings management) or guide analyst forecasts downward (i.e., engage in expectation management) to meet or beat analysts earnings forecasts (MBE). Our results suggest that certain management behavior to achieve MBE is highly associated with firms level of accounting conservatism. In detail, we find that (1) the level of accounting conservatism decreases as firms achieve MBE in consecutive years, (2) engaging in earnings management to achieve MBE lowers firms level of conservatism, and (3) firms that achieve MBE in consecutive years (CMBE firms) whose credit rating had been elevated practice less conservative accounting implying that the MBE string itself might act as a substitute for conservative accounting in lowering firms cost of debt.
Corruption Begets Corruption In Developing Countries - How The Use Of Technology Could Change The Landscape
Authors: Igbonagwam Okey , Rose V. Joy
Published: February 2016

This paper investigates the role technology can play in fostering good business practices that would deter economic corruption and extortion in developing countries. This paper first provides a problem statement with a brief description of corruption in form of bribery and extortion based on Foreign Corrupt Practices Act (FCPA) and its provisions. Second, we propose a definition of bribery and extortion. Our definitions indicate that, contrary to what is often claimed, many of the kinds of payments forbidden by the Foreign Corrupt Practices Act are not instances of bribery, but rather extortion. Third, we present an economic analysis of bribery and extortion and explain why they are thought to be undesirable practices from an economic point of view. Fourth, we present two case studies to support the use of technology to mitigate and facilitate business in developing countries that should improve economic and business practices.