bluuebunny/crossref_metadata_2025 huggingface dataset:
Progressing corporate governance disclosure in Egypt: Current status and action plan
Authors: Samaha Khaled
Published: February 2017

This study examines the level of corporate governance disclosure in Egypt and explores the attitudes of Egyptian regulators, auditors, accountants, academics and company directors about the strategies needed to enhance CG disclosure. The measurement of disclosure is based on a checklist developed by the United Nations, which was gathered using a content analysis of financial statements and websites of a sample of Egyptian companies listed on Egyptian Stock Exchange (EGX). Levels of CG disclosure are found to be very low, however, disclosure is high for items that are mandatory under the Egyptian Accounting Standards (EASs) that are based on International Financial Reporting Standards (IFRS). The failure of companies to disclose such information clearly shows some ineffectiveness and inadequacy in the regulatory framework in Egypt. Moreover, the phenomenon of non-compliance may also be attributed to the socio-economic factors in Egypt. Therefore, it is expected that Egyptian firms will take a long time to appraise the benefits of increased CG disclosure. Therefore, awareness building, education and training, incentives or disincentives to disclose including the nature of enforcement regimes are among possible policy recommendations based on interviews with Egyptian experts, but all carry costs as well as benefits. The findings provide a benchmark of performance against which future research can measure longitudinal changes after a further learning period.
Do market participants perceive blockholders’ power and preferences? Locus of control, preference heterogeneity, and firm valuation in the Swiss context
Authors: Sikavica Katarina , Kessler Esther
Published: February 2017

This study relies on preference heterogeneity and locus of control research to hypothesize about the impact of control types on firm valuation. We investigate whether market participants discriminate between control types when making investment decisions. Our empirical results of Swiss data suggest that control types represent discrete governance contexts with a unique set of conditions each related to a different level of principal-principal agency costs. Specifically, we find that firms with family ownership and professional management are valued more highly relative to other control configurations and that owners can use board and share structures to signal good governance. Our study thus provides support for a psychological and socio-political perspective of principal-principal conflicts of interests and expropriation of minority investors.
Stakeholder ratings and corporate financial performance: Socially responsible for what?
Authors: Venanzi Daniela
Published: February 2017

This paper aims at empirically supporting, in a cross-country and cross-industry analysis, the instrumental role of stakeholder management by adopting a disaggregated approach to the corporate social performance measurement. By using a sample of 250 European industrial listed firms, from 10 European countries, in the period 2001-2003, we find the following evidence: i) the firm is not socially responsible towards all stakeholders, but invests more in key-stakeholders, those who are (perceived as) more influential on its business and have a more valuable impact on its financial performance; ii) a null or weak significance of the relationship between corporate social performance (CSP) and corporate financial performance (CFP) in the whole sample hides highly significant opposite relationships in two separate sub-samples (i.e. firms with positive and negative relationship, respectively): the sign of the CSP-CFP link cannot be expected to be univocal, since the marginal reward-cost equilibrium of social investment is firm-specific.
Mapping the changing governance control paradigms of public universities
Authors: Christopher Joe
Published: February 2017

Drawing on a multi-theoretical approach to governance, interviews with chief audit executives of seven universities worldwide, and published literature, this study maps and demonstrates that as public universities shift from state controlled, public sector and collegial managerialism to corporate managerialism, they experience different range of controls to be monitored at the board, operational and assurance levels of governance. These differences suggest there is no one fit for governance policies of public universities. Instead, there is an onus on the board and management of each public university to identify their own particular multi-theoretical governance control paradigm. These findings have accountability implications for council members, senior management and control mechanisms such as external and internal audit
Anticompetitive behaviour in the audit services market by the big audit firms: Evidence over time
Authors: Singh Harjinder
Published: February 2017

This study investigates the existence of anticompetitive behaviour and cartel pricing by the Big4 international providers of auditing services (resulting from the halving in the number of such providers from the Big8 to Big4).This study uses both a composite and dis-aggregated measure for auditor attributes (namely, auditor reputation, industry specialisation, provision of non-audit services and auditor tenure) and regresses the derived measure against changes in audit fees for the periods 2001 to 2003, 2003 to 2005 and 2001 to 2005 for a total sample of 600 firm-year observations.Main results from longitudinal multivariate analysis indicate that there is no significant association between the four auditor attributes utilised in this study with changes in audit fees over the observation window. This study finds no evidence of anti-competitive behaviour and cartel pricing by Big4 auditors resulting from increased audit market concentration. This has implications in relation to the need to consider legislation to reduce the power and influence of the Big4 audit firms and this subsequently has flow-on implications for the management of firms.
Small business owners’ perceptions of business ethics and employee theft in the small business sector of South Africa
Authors: Cant Michael Colin , Wiid Johannes Arnoldus , Hung Yu-ting
Published: February 2017

Cant and Ligthelm (2003:1) estimate that 70-80% of SMEs fail. One of the challenges that have been identified as contributing to the high failure rate of SMEs in South Africa is employee theft, which constitutes as a ‘crime’. The research study investigates small business owners’ perception of business ethics and employee theft in the small business sector of South Africa. The objective of this paper is to determine the ethical behaviour of business owners, explore the ethical dilemmas that small businesses are facing, establish the concern and impact of theft in the workplace, and the influence of loyalty on the matter. A questionnaire was constructed and random sampling was used to gather the responses of 38 small business owners. The research identified a strong positive linear relationship between the concern for ethical dilemmas/misconduct and employee theft in the workplace. The challenge now is to further the decrease of employee theft in small businesses in South Africa to ensure their success, as they play a vital role in the South African economy
Is there a relationship between electricity consumption and economic growth in Zimbabwe?
Authors: Tsaurai Kunofiwa
Published: February 2017

This paper investigated the causality relationship between electricity consumption and economic growth in Zimbabwe using a bi-variate time series framework for the period 1980 to 2011. The causality relationship between the two variables has been a subject of extensive debate for decades among economists and academics. There are four dominant perspectives with regard to the causality relationship between electricity consumption and economic growth. The first perspective maintains electricity consumption spur economic growth whilst the second perspective argues that it is economic growth that drives electricity consumption. The third perspective suggests that both electricity consumption and economic growth promotes each other whilst the fourth perspective argues that there is no causality relationship at all between the two variables both in the short and long run. Using the bi-variate causality test framework, this study failed to establish any direct causality relationship between energy consumption and economic growth. The results imply the existence of an indirect bi-directional causality relationship between the two variables. The study therefore recommends Zimbabwe authorities to address indirect factors that have a bearing on economic growth over and above scaling up investment efforts into electricity production capacity improvement infrastructure
Measuring corporate culture
Authors: Franzoni Simona
Published: February 2017

The ability to assert the ethical and entrepreneurial values in a strong and shared manner, on the level of corporate governance and organisation, is therefore a critical element for the purpose of obtaining consensus and the optimisation of enterprise performance. For these reason, monitoring the corporate culture through the identification of indicators enables us to measure the processes of change underway in an organisation and may enable us to prevent the persistence of bad management. The introduction of a model to measure corporate culture has therefore become necessary, both in terms of defining and representing the intangible asset, with a view to controlling management to ensure the effective orientation of behaviour, to achieve the enterprise purposes and stakeholders’ consensus.
Towards the construct of paternalism to investigate control in family business governance
Authors: Cicellin Mariavittoria , Mussolino Donata , Martinez Marcello , Iacono Mario Pezzillo
Published: February 2017

The aim of this study is to adopt the construct of paternalism to understand control in family business governance. In particular, we want to investigate the concept of paternalism as mechanism of control in family firms. The theoretical reflections we here present first try to challenge the main theories used in family business literature, with a discussion about their limitations and boundaries of validity. Then, we present the construct of paternalism as a mechanism of governance and control that influences the decision making process, and in particular the succession processes. The construct of paternalism still needs sound methodological as well conceptual work, but we argue that it may be a starting point for building a rigorous and relevant research stream. This endeavour may help the family business research field to gain legitimacy in the broader academic arena.
The relationship between electricity consumption and economic growth in Botswana
Authors: Amusa Kafayat , Leshoro Temitope L.A.
Published: February 2017

Concerted effort to diversify Botswana economy, in recent years, has seen increased activity of major sectors, which includes higher reliance on electricity. The demand and consumption of electricity within the Botswana economy increased substantially from the 1980’s. However there have been shortfalls in the country’s electricity generation capacity causing increased reliance on imports from neighbouring countries especially South Africa. Given the importance of electricity in Botswana, this study examined the relationship between electricity and economic growth, employing bounds testing approach to co-integration. Results obtained confirmed the importance of electricity for Botswana’s economic growth. The result also passed a battery of diagnostic tests. This study recommends the need for energy policy reforms that will enable increased electricity production capacity.
Developing financial management skills in a community organisation using scaffolding: A pilot study
Authors: Kluvers Ron
Published: February 2017

The third sector literature argues that organizational capacity is important for community organizations to achieve their missions. Financial Management Skills (FMS) are important for the enhancement of capacity that supports the effective operations, accountability viability and governance of community organizations. However, many community organisations lack the necessary understanding of financial management. This paper examines the use of scaffolding to develop financial management skills in a community organisation. Participants completed a pre-test to determine the level of FMS and a post-test after the scaffolding sessions. The results indicate that scaffolding was effective in developing the participant’s FMS. However, the time spent on each phase of the scaffolding learning cycle may influence the effectiveness of the method.
Asymmetric information, trading volume, and portfolio performance
Authors: Jackson Antony
Published: February 2017

In dealership markets, asymmetric information feeds through to higher transaction costs as dealers adjust their bid-ask spreads to compensate for anticipated losses. In this paper, we show that the presence of asymmetric information can also provide a positive externality to those market participants who operate in multiple markets-portfolio managers. Specifically, insiders lower the estimation errors of portfolio selection methods, thus improving asset allocation. We develop multiple artificial markets, in which portfolio managers trade alongside informed and uniformed speculators, and we contrast the performance of ‘volatility timing’—a method that relies on efficient price discovery - with that of ‘naive diversification’. Volatility timing is shown to consistently outperform naive diversification on a risk-adjusted basis.
Economic crisis impact on corporate governance & internal audit: the case of Greece
Authors: Bekiaris Michalis , Efthymiou Thanasis , Koutoupis Andreas G.
Published: February 2017

The purpose of this paper, is to record the current situation regarding the mode of interaction of the economic crisis in corporate governance and risk management. This is achieved by conducting research which underpins the distribution of structured questionnaires in Greeks professionals. In this way, it is presented a substantial imprinting of Greek views on a number of issues arising from the investigation of the above relation. In order to gather as much as possible essential information, it is performed a comparison of these global positions, by surveys carried out by the IIA, which had almost the same content. The conclusion is that the current economic conditions require a more effective form of corporate governance, while the three main weaknesses mentioned above are the areas that more focus should be given. Additionally, the most important factor that could highlight all risks in time is to perform audits on liquidity, capital and balance sheet consolidation. Still, there is a view that the ERM failed to recognize timely the danger of imminent economic crisis. Finally, budgets on internal audit have increased significantly, both in national and international level, while in the future the internal audit itself should have as a priority to consult the board, in order to identify, manage and monitor the key risks.
Family business, director compensation and board efficacy: the case of Taiwan
Authors: Hsieh Tsun-Jui , Chen Yu-Ju
Published: February 2017

This paper investigates the impact of outside directors on firm performance during legal transitions and examines how the roles of family business and director compensation influence board efficacy. By using Taiwanese listed companies as our sample, the empirical results show that outside directors who are appointed by legal mandate have less positive impacts on firm performance than outside directors appointed voluntarily. Family business weakens the positive impact of outside director on firm performance. The evidence further suggests that director compensation contributes to firm performance, particularly when outside directors are voluntarily appointed. The findings provide western managers with an understanding of how the typical Chinese family business affects board independence. We also demonstrate and incorporate the cultural and the ownership characteristics into the analysis to present a country-specific pattern that should be informative for foreign investors who are concerned about the quality of corporate governance in East Asia.
High volume trades and stock price changes in Brazil
Authors: Carvalhal Andre , Martins Cesar , Figueiredo Otavio
Published: February 2017

This work analyzes the relation between stock price changes and high volume trades in Brazil. Using a unique intra-day database, we evaluate 10 of the most liquid shares from 2001 to 2006. Unlike most international studies, which are based on data from funds or institutional investors, this article breaks new ground by working with publicly available information. Our results indicate a positive and significant relation between stock price changes and high volume trades. In line with existing literature, we show there are both temporary and partially permanent on stock prices after high volume trades. Our study also indicates the existence of asymmetry between purchases and sales.
A critical evaluation of the sensitivity of a bank’s balance sheet to change when optimizing for capital requirements under Basel
Authors: Cronje Franci , van Rooyen J.H.
Published: February 2017

The management of a modern bank is a complex task that is becoming increasingly more so due to the inherent complexities of its business and of an ever changing modern financial environment. Recent turmoil in the global financial environment necessitated new regulation, some of which may have a material impact on the structure and management of a bank. The establishment of higher minimum capital buffers for banks to counter the possibility of failing will have a material influence on profitability. Apart from making investment in banks shares less attractive, the regulation may turn out to be bad for global economic growth. In view of the above, the objective of this research was to single out and demonstrate the effect of the minimum capital requirements on the profitability, composition and size of a bank balance sheet. The Simplex algorithm was used to set up a goal programming problem formulation in Excel. Different capital minima was entered in the model and then optimised to observe the effect on the bank balance sheet size, composition and profitability. The research clearly demonstrated that at a capital reserve requirements of 5%, the resulting balance sheet is 190% of the original balance sheet size and at the 25% capital reserve requirement the new balance sheet is merely 57% of the original size. Increasing the reserve requirement from say 5% to 9,5% gives rise to approximately 40% change in balance sheet size, all other things being constant. As the capital reserve requirement is increased from 5% of RWA to 14%, the profit falls from over R60 billion to just over R10 billion. It is clear from the research that banks are very sensitive to the new regulation. It also underlines how difficult it may be for banks to maintain profitability. The changes needed to maintain the profitability, may not be possible/feasible in the South African financial environment. The time is possibly right now for banks to start improving efficiency and developing new innovative low risk high return services and product lines.
Accounting conservatism, environmental uncertainty and the capital structure
Authors: Habib Ahsan , Hossain Mahmud
Published: February 2017

The purpose of this paper is to examine the effect of reporting conservatism on firm’s capital structure decisions and the role of environmental uncertainty as a moderating variable. While the role of conservatism has been investigated in certain debt-contracting setting, evidence is sparse about the effect of conservatism on the degree of financial leverage. We examine this issue using a sample of Australian firms from 1992 to 2005. We find that accounting conservatism positively affect a firm’s leverage structure. Further, we find that the relation between accounting conservatism and firm leverage is moderated by environmental uncertainty context; however this finding is not robust to all three proxies that we used to measure conservatism.
Opportunities for the achievement of economies of scale in freight transport.
Authors: Pienaar Wessel
Published: February 2017

In the interest of both the national economy and the commercial freight industry, government freight transport policy formulators and freight transport industry decision makers should take cognisance of (a) the opportunities that exist for the achievement of economies in freight transport; (b) the subgroups of economies that can enhance efficiency attainment in the freight transport industry; (c) prevailing cost levels and structures within the five modes of freight transport; and (d) the salient economic features of the freight transport market. This paper presents an overview of these four aspects. The research approach and methodology combine (a) a literature survey; (b) an analysis of the cost structures of freight transport modes; and (c) interviews conducted with specialists in the freight transport industry.
Board composition and interlocking directorate evolution as a consequence of the recent financial crisis: evidence from Italian listed companies
Authors: Romano Mauro , Favino Christian
Published: February 2017

The recent systemic crisis that has affected the financial markets and real economies of major industrialized countries has had significant effects on the corporate governance and key organizational choices of large firms. In this context, the present study aims to verify whether the international crisis has significantly changed the structure of the interlocking directorate network that links large firms in the regulated Italian market. To this end, the first part of the paper presents an analysis of the evolution of corporate governance in the main European regulated markets through a comparative analysis of some synthetic statistical data observed at the end of the years 2006, 2008 and 2010. In the second part, after framing the concept of interlocking directorate in a theoretical perspective, we examine the evolution of the network of personal ties between large Italian listed companies in the period of observation (2006-2010) using Social Network Analysis
Revolutionising agricultural finance in Africa: opportunities and challenges
Authors: Moyo Busani
Published: February 2017

Africa needs business models that are capable of bringing affordable, life-changing products and services in order to reduce or even eliminate poverty. These business models through appropriate and responsible funding must, as a matter of necessity, create jobs and lead directly to economic growth in Sub-Saharan Africa (SSA). This study therefore provides a detailed analysis of the different types of major agricultural financial initiatives in Africa relating them to the problems faced by small farmers in the region. We also look at innovative finance schemes that are also making inroads in the continent like patient capital, agriculture pull mechanisms, value chain financing as well as Sovereign wealth funds. We argue that these innovative schemes can make a difference in helping innovative business models that address poverty see the light of day. Thus policies that protects farmers from natural risks like drought and floods, encourage the proliferation of donors, philanthropic organizations as well as the creation of strong linkages and cooperation among all those involved in agricultural value chains are important for the development of Africa’s agriculture.
Corporate social responsibility motives of Australia and South Africa: a socio-economic perspective
Authors: Kabir Humayun , Mukuddem-Petersen Janine , Petersen Mark A.
Published: February 2017

This study analyses the socio-economic similarities and differences between Australia and South Africa, a developed and developing country, respectively. In particular, we consider the corporate social responsibility motives and mechanisms in lieu of social, economical, cultural and environmental influences in these two countries. The study reveals that, despite some significant similarities, corporate social responsibility values have been constructed with different social, economic and cultural interactions in the aforementioned countries. This is owing to the different socio-economic infrastructure that exists in each country. The study pointed out that it is important for multinational companies and policy makers to understand corporate social responsibility motives of different countries in order to fulfil stakeholders’ demands. Also, taking cognizance of the fact that the stakeholders’ expectations can vary across nations
The need for transparency, responsibility and accountability: the case of facebook IPO
Authors: Cervellati Enrico Maria , Di Sandro Adriano , Piras Luca
Published: February 2017

This paper aims to describe and critically analyse the Facebook Initial Public Offering (IPO), initially focusing on the pre-IPO assessments made by underwriters, and then comparing them with the market evidence. The initial weak performance disappointed all those investors believing in a fast stock increase, causing in turn the rise of bad expectations about the company’s projects. As a matter of fact, the stock trend did not reflect the enthusiasm that the financial community showed during the IPO’s marketing activity or during the road show. The stock demand was far superior than the supply during all the pre-IPO activities, and even after the upward revisions of the price range. Thus, the assessment of the valuation methods used to set the offer price plays a key role to explain the reasons of the stock performance. We analyse analysts’ reports to investigate the reasons of their distorted valuations. The case of the Facebook IPO stresses the importance of supervision to ensure transparent financial statements and protect investors. Lack of transparency, wrong corporate culture and conflicts of interest may provoke stock crashes and damage investors and the financial system overall. Ensuring integrity of financial reporting and monitoring systems is thus essential to ensure responsibility, as well as accountability.
Hierarchical position in local government and perceptions of accountability
Authors: Kluvers Ron
Published: February 2017

This study explores the understanding of the concept of accountability held by Victorian local government managers and elected councillors in a New Public Management (NPM) environment. Accountability involves relationships between superiors and subordinates and in the case of local government between councillors, management and members of the community. Accountability relationships exist between councillors and management and between the different levels of management. The position that a person holds within local government is subject to the organization’s culture, in particular the values held by councillors and staff, the use of power and how the superior / subordinate relationships are understood.
A survey instrument was sent to all councillors and managers in Victorian local government. There was a 21% response rate. Anova analysis was applied to determine if there were significant differences between councillors and tier 1 and tier 2 managers. The anova analysis found that there were differences between the groups depending upon where the municipality was located and whether a person was a councillor or a tier 1 or tier 2 managers.
Neglected stakeholder groups: conceptualising a dynamic model for neglected stakeholder analysis and engagement
Authors: Hardy Anne , Wickham Mark , Gretzel Ulrike
Published: February 2017

Stakeholder analysis is well-established as a means by which policy makers and organisations gauge the interests of their salient stakeholders. This paper explores the application of stakeholder theory to ‘neglected stakeholders’ and explores the risks involved in assuming that disparate stakeholder groups lack power. This paper uses two case studies of Recreational Vehicle users whose interests and power were underestimated during a strategy development process. The rapid responses and formation of power of this neglected group via social media highlights the changes in stakeholder interactions that have emerged with the use of the Internet. They also demonstrate that managers and policy makers must now utilise iterative stakeholder analysis techniques that are reactive, and which respond to previously neglected stakeholder groups.
The ethical conundrum of entrepreneurs: is there a difference between personal and business values?
Authors: Wiid Johannes Arnoldus , Cant Michael Colin , Rooyen Nadine van
Published: February 2017

It is a known fact that the role of small businesses in the world economy is becoming more and more important – and especially now that the worldwide recession has been going on for more than five years. During this period many large corporations have been found striving for ethical behaviour and moral values, resulting in a backlash from various stakeholders. Unfortunately, the example set by large corporations and their perceptions, or even justifications, of correct or acceptable “twisted” ethical behaviour always rubs off on small businesses. The main purpose of this study was to determine whether moral behaviour will have an effect on the concern for ethical misconduct among South African entrepreneurs. Ethics and morality are two terms that are very closely related and often used interchangeably in the South African context. While ethics refers to the rules and conduct that are prescribed by society, morality is the internally accepted standards of individual behaviour in a society. Therefore, business ethics are the principles that are prescribed by businesses and accepted within a business environment. The study shown that various constructs, regarding behavioural aspects, can be grouped to indicate the theme of moral behaviour. The study convincingly showed that there does, in fact, exist a medium to strong relationship correlation between concern for ethical misconduct and moral behaviour among South African entrepreneurs. The results also indicate that gender, age and race do not have an effect on South African entrepreneurs’ view of concern for ethical misconduct or moral behaviour.
Rethinking the erosional effect of indirect taxes on individual income
Authors: Netswera Fulufhelo G , Ngwakwe Collins C.
Published: February 2017

This paper examines the erosional effect of indirect taxes on individual incomes of South African citizens. A focus on taxation and the pervasion of indirect taxation in particular has become important given growing income inequality, unemployment and poverty amongst South Africans. The methodological approach utilised in this paper is rooted in reviews and use of hypothetical salaries to assess the erosional effect of indirect taxation on such salaries. The paper finds that although richer individuals may pay greater indirect taxes than poorer individuals; as a proportion of income however, poorer individuals spend higher proportion of their income on indirect taxes than richer individuals. This connotes therefore the lack of desired progressivity that should be implicit in South African indirect tax system. South Africa is among countries with the highest income inequality in the world. The implication of this research finding is that indirect taxes may exacerbate income inequality and work against the government vision of “better life for all” and in particular worsen the state of the poor class. The paper concludes that achieving effective reduction of income inequality and economic transformation in South Africa would require exempting individuals below certain threshold of income from paying some indirect taxes.
Corporate governance communication and value creation.
Authors: Machold Silke , Price Mark
Published: February 2017

Corporate scandals and the ongoing economic crisis have heightened academic and practitioner interest into corporate governance. Resulting corporate governance codes and related legislative developments place increasing emphasis on what companies should communicate on their governance arrangements. But whether and how corporate governance communications add value to companies remains a subject of debate. To shed light on these questions, we review two hitherto unconnected and parallel literatures from accounting and finance, and corporate communications research respectively. We develop a multi-dimensional model of corporate governance communications to explain the contingent conditions that can lead to value creation.
The effect of equity ownership structure, financial leverage and proprietary costs on share price anticipation of future earnings: evidence from MENA emerging markets
Authors: Moumen Nejia , Othman Hakim Ben , Hussainey Khaled
Published: February 2017

The paper aims at examining whether the return-future earnings relationship vary with corporate financial leverage, ownership structure and proprietary costs for a sample of 240 firms in the context of Middle Eastern and North African emerging markets. Our results emphasized first a negative association between share price anticipation of future earnings and financial leverage level. We showed also that the return-future earnings relationship is positively related to the level of institutional ownership. Findings revealed in addition and inconsistent with our assumption that insider ownership influences positively the ability of stock return to predict future earnings. Finally, proprietary costs didn’t seem to impact the return future earnings relationship in that only a positive effect on current earnings informativeness was observed.
Fair value accounting and procyclicality: accounting for securitization
Authors: Kusano Masaki
Published: February 2017

The purpose of this study is to examine whether fair value accounting promotes procyclicality by focusing on securitization transactions before the financial crisis. This study demonstrates the relationship between securitization accounting and procyclicality using a parsimonious model. The findings are as follows. Sale accounting increases the capital ratio compared with that before a securitization transaction. Banks’ executives have incentives to increase both assets and debt within the limits of their target capital ratio (leverage ratio) for executive compensation and market reputation; assets (lending) will be increased. When banks conduct securitization transactions and adopt sale accounting to enhance short-term profits, the capital ratio increases under the certain condition. Thus, banks will increase assets (lending) within the limit of their target capital ratio (leverage ratio). As banks increase and expand their lending during economic booms, the economic booms are accelerated. It is expected that both sale accounting and fair value accounting promote procyclicality during economic booms.
ODL students and the use of social media networking systems as an educational tool: can lecturers stay connected
Authors: Wiid Johannes Arnoldus , Cant Michael Colin
Published: February 2017

The use of technology in education is not a fad anymore- it is real and happening at a fast pace. Students are expecting lecturers to become more and more adept at using technology and to make use of the media available to transfer knowledge. Therefore, lecturers in all tertiary institutions have tobecome more and more adapted in the use of technology. In many instances there is a disconnection between the expectations of these two groups and the main aim of this study was to investigate lecturers’ perceptions on the use of social media networking systems in the transfer of knowledge, at an open distance learning (ODL) tertiary institution. The study also investigated whether lecturers feel at ease when using social media networking systems, whether they will be able to find information on these social media networking systems and whether they believe it will be an effective and easy way to present course content. These aspects were tested by making use of the Technology Acceptance Model (TAM) constructs namely; ‘Perceived ease of use’, ‘Perceived usefulness’, ‘Attitude towards using’, and ‘System accessibility’. A survey was distributed to lecturers, and it was found that lecturers regarded ‘Perceived ease of use’ as being the most important factor to consider when they are using social media networking systems.
The impact of HRIS on organizational efficiency: random or integrated and holistic?
Authors: Kumar Nikhal Aswanth , Parumasur Sanjana Brijball
Published: February 2017

This study assesses the extent to which the HRIS enhances organizational efficiency in an interrelated and holistic manner (as determined by its impact on areas of HR, time management, cost management and managerial satisfaction with the system). A sample of 101 managers was drawn from a Municipality in South Africa using cluster sampling. Data was collected using a self-developed, closed-ended questionnaire comprising of 28 items, the psychometric properties (validity, reliability) of which was statistically assessed using Factor Analysis and Cronbach’s Coefficient Alpha respectively. Data was analyzed using inferential statistics. The results indicate that HRIS significantly enhances overall organizational efficiency and its sub-dimensions (HR functions, time management, cost management and managerial satisfaction with the system) in an inter-related and holistic manner, though in varying degrees. Hence, the implementation of a proper HRIS has the potential to bring about operational effectiveness and enhance the realisation of the HR and corporate strategy, thereby ensuring organizational effectiveness.
Voluntary disclosure reduces agency conflicts: an empirical analysis of Italian listed companies with substantial intangible assets
Authors: Napoli Francesco
Published: February 2017

R&D assets cause information asymmetries between shareholders and managers. In order to reduce such information asymmetries, our aim is to learn what typologies of additional information managers find it opportune to disclosure voluntarily in annual reports. We consider voluntary information which can be disclosed about strategy as well as that about R&D assets. Our analysis, which is conducted on a panel of 195 observations, shows that information about R&D is more useful to investors than information about strategy, but companies obtain greater benefits from providing information about strategy because they are more useful to other important stakeholders, such as lenders, bondholders, suppliers and others. For firms whose value is largely composed of assets such as R&D, management faces higher future uncertainty in transforming firm assets into revenues. This increases the utility for investors and other stakeholders of knowing the strategy management intends to anticipate and deal with eventual changes in the environment.
Governance and voluntary disclosure of intangibles
Authors: Ariff Akmalia M.
Published: February 2017

This paper examines the effect of governance on the quality of firms’ voluntary disclosure of intangibles. While disclosure of intangibles reduces information asymmetry, company-level managerial ownership and country-level institutional environment provide incentives that can affect the quality of disclosure. I use a comprehensive set of information about intangibles for disclosure, the aggregate percentage of ownership by directors for managerial ownership, and an index of legal institutions for institutional environments. Based on data from 430 East Asian firms, lower quality disclosure is evident for firms in stronger institutional environment regime. However, the quality of disclosure is not affected by managerial ownership or its joint-effect with institutional environment. The findings highlight the importance of voluntary disclosure about intangibles regardless of the influencing effect of governance mechanisms.
The corporate use of derivatives by listed non-financial firms in Africa
Authors: Holman Glen , Correia Carlos , Pitt Lucian , Majoni Akios
Published: February 2017

This paper presents the results of an extensive analysis of derivative use by 692 companies in 20 countries across the African continent. The results show that 29% of non-financial companies in Africa use derivatives but that derivative use is dominated by firms within South Africa. The study finds that 54% of firms in South Africa use derivatives but only 5% of non-financial firms in Africa (excluding South Africa) use derivatives for hedging purposes. The majority of derivative use is directed toward the management of currency risks and the derivative instrument of choice is OTC forwards. Swaps are used to hedge interest rate risk and minimal use is made of OTC or exchange traded options and futures
Governance of stakeholder’s financial relationships: evidence from Ukrainian banking
Authors: Brychko Maryna
Published: February 2017

This paper makes two related contributions to corporate finance theory and stakeholder theory. First, the author intend to examine relationship between sustainability of stakeholders’ financial relations and efficiency of corporate governance, taking into account lagging of decision-making corporate governance in banks to it financial performance. Second, the author seeks to prioritize stakeholders’ financial relations of the emerging stakeholder model of corporate governance at banks by analyzing two relevant dimensions of this model: contribution valued resources to the bank and power that the stakeholders have within the bank. The findings confirm that efficiency of bank management in the system of stakeholder’s financial relationships in absolute efficiency of corporate governance achieved solely through sustainable financial relations of “principal-agent” (where principals are individuals and agent is apparatus of corporate governance). The results show that the role of individuals as sub-agents, enterprises as principals and sub-agents, shareholders as principals formed negative effect.
National oil companies: business models, challenges, and emerging trends
Authors: Al-Fattah Saud M.
Published: February 2017

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets
Corporate sustainability reporting by pharmaceutical companies: Is it what it seems to be?
Authors: Azim Mohammad Istiaq , Azam Saiful
Published: February 2017

A well-functioning pharmaceutical industry can contribute directly to social wellbeing. Corporate sustainability is an important precondition for the further development and growth of the industry. In this research multi methods are used to provide a complete, holistic and contextual portrait of the level of CSR by pharmaceutical companies in a developing country - Bangladesh. Firstly, we used content analysis to investigate corporate social reporting by listed pharmaceutical companies. Secondly, we conducted surveys to document management responses. Thirdly, we sought stakeholders’ views on the extent to which they believe CSR is being implemented in the industry. Analysis of annual reports published in 2009- 2010 shows that only 26.67% of listed pharmaceutical companies made some CSR disclosure. However, more than seventy-five per cent of these disclosures are sweeping qualitative statements without any attempt at quantification. Most managers believe social reporting should strike a balance between meeting stakeholders’ reasonable expectations and running a successful business. The majority of stakeholders appear to favour mandatory requirements for CSR disclosure.
Changes in bank resolution mechanism: opportunity for change in bank governance towards stakeholder approach
Authors: Jezernik Živa Skok
Published: February 2017

The current financial crisis has vividly demonstrated that due to the incentives of bank shareholders to take excessive risks on behalf of other stakeholders and society, banking governance based exclusively on shareholder interests results in systemically fragile banks and financial instability. The key challenge is to establish a bank governance framework in which financial institutions begin to perform their central function of serving and supporting long-term economic development. The recent change in the bank resolution mechanism legislation for banks in the EU from a bail-out to a bail-in approach that creates a new group of bank stakeholders with strong incentives to oppose excessive risk-taking – uninsured debtholders – can be seen as an opportunity to enact substantial change in bank governance.
The view on corporate governance in transition economies: executive compensation in Croatia. Corporate governance in Macedonia and Romania
Authors: Dibra Rezart
Published: February 2017

Corporate governance issues are especially important in transition economies, since these countries do not have the long-established financial institution infrastructure to deal with corporate governance issues. Before the fall of the Berlin Wall and the collapse of the Soviet Union, there was no need to discuss corporate governance issues because all enterprises were owned by the state and there were no shareholders. All that has changed since 1989. This paper discusses the view on corporate governance in some transition economies. Highly limited knowledge on executive pay in (post)transition economies creates demand for research in this filed; this paper explores executive compensation structure in Croatia. The research was conducted among Croatian public limited companies during December 2010 through February 2011 at a response rate of 18,44%. Paper also covers specificities of the development of the corporate governance structures and practices in the Republic of Macedonia.
Planned change and service quality in a health care environment: assessing outcomes
Authors: Ntsatsi Lisebo , Parumasur Sanjana Brijball
Published: February 2017

This study assesses the outcomes of a process of planned change undertaken in a health care hospital environment in Lesotho in terms of service quality. A sample of 143 clinical and non-clinical employees from three of the largest regional hospitals within the Ministry of Health in Lesotho was drawn using cluster sampling. Data was collected using an adapted version of SERVQUAL whose psychometric properties were statistically determined. Data was analyzed using descriptive and inferential statistics. The results indicate that the process of transformation significantly contributed to all the sub-dimensions of service quality (tangibles, reliability, responsiveness, assurance, empathy) except the process before restructuring which did not contribute to responsiveness, assurance and empathy respectively. Furthermore, all the sub-dimensions of the process of transformation significantly impact on the different sub-dimensions of service quality, although not optimally.