bluuebunny/crossref_metadata_2025 huggingface dataset:
Developing financial intelligence: an assessment of the FIUs in Australia and India
Authors: Sathye Milind , Patel Chris
Published: October 2007

Purpose

The purpose of this paper is to present a comparative position of the extent of commonality or diversity in the rationale, objectives, processes used and outcomes achieved by financial intelligence agencies in India and Australia. An effective financial‐intelligence unit (FIU) can make a significant contribution to combating serious financial crimes nationally and internationally.

Design/methodology/approach

The agencies in these two countries are compared using the framework for assessment of financial regulatory agencies – suitably modified to capture the specialist role of such agencies. Information available at the web site of the two agencies has been used.

Findings

The study shows several commonalities and differences in the financial intelligence agencies in the two countries and points to operational and policy changes required in making the units more effective.

Originality/value

It is hoped that the study would encourage similar studies in respect of other FIUs and help in contributing to making the global financial‐intelligence regime more robust.
Money laundering from Islamic perspective
Authors: Al Agha Samah
Published: October 2007

Purpose

The focal point of this paper is money laundering from the Islamic perspective. As money laundering has become a world‐wide phenomenon, studying it from an Islamic viewpoint is of significance. The purpose of this paper is to examine: the conception of money laundering in Islam; the criteria by which Islamic law distinguishes between lawfulness (al‐halal) and unlawfulness (al‐haram); what the stipulations (conditions) are for having money or owning property in Islam; and what the attitude of Islamic law is towards the laundered money.

Design/methodology/approach

The research depended on secondary data. The data were taken from Quran and Sunna.

Findings

In responding to the first question, it has been found that, although money laundering is a contemporary crime, the conception of money laundering has been addressed through many provisions in Quran and Sunna (going back 1,400 years). From many examples in Quran and Sunna, it has been recognised that the scale of prohibition in Islam is much wider than the scale of prohibition in any secular law. Qimar (gambling) is prohibited by Sharia law but not in secular laws.

Originality/value

The paper is of value in identifying the criteria by which Islamic law distinguishes between lawfulness and unlawfulness. It also identifies four stipulations for having money or owning property in Islam. Finally, the paper reviews the attitude of Islamic law towards the laundered money.
International trade‐based money laundering: the Malaysian perspective
Authors: Thanasegaran Haemala , Shanmugam Bala
Published: October 2007

Purpose

The purpose of this paper is to highlight the dangers posed by money‐laundering activities undertaken by criminals through the international trade mechanism, from the Malaysian perspective.

Design/methodology/approach

This is to be achieved by providing a description of the money‐laundering process in general and, more specifically, the international trade‐based money‐laundering mechanism. This is followed by an account of the development of international trade in Malaysia and related control mechanisms undertaken, so as to highlight the scope available to curb money laundering via the international trade mechanism in Malaysia.

Findings

The research showed two things: first, that the common techniques of laundering money via international trade involve over‐ and under‐invoicing of goods, multiple invoicing of goods, over‐ and under‐shipment of goods, falsely described goods and complex trade approaches; and second, the unfortunate state of affairs pertaining to the lack of data/information available on the existence and workings of such activity in the Malaysian context (which has in part hampered the aims of this paper).

Practical implications

Nevertheless, this paper has the practical implication of being something of a wake‐up call to the Malaysian policymakers (and the policymakers of developing countries), in that awareness of the impending challenges brought about by money laundering to international trade is crucial in tackling the menace.

Originality/value

This paper's call for increasing awareness and identification of international trade‐based money laundering and improving international cooperation and interaction makes it a useful read for policymakers, academics and students alike.
Comments on the law of the People's Republic of China on anti‐money laundering
Authors: Ping He
Published: October 2007

Purpose

The purpose of this paper is to analyze the merits and disadvantages of the law of the People's Republic of China on anti‐money laundering.

Design/methodology/approach

The paper describes the main contents contained in the newly adopted law of the People's Republic of China on anti‐money laundering, celebrates the enactment of the law and points out the gap still remaining between Chinese legislation and international standards.

Findings

The enactment of the law of the People's Republic of China on anti‐money laundering is of vital significance. Based on the international experience in the fight against money laundering, Chinese anti‐money‐laundering legislation has made considerable progress. Its shortcomings, however, are also evident.

Originality/value

This paper presents a comprehensive description of, and comments on, the law of the People's Republic of China, which would be beneficial to the legislature.
Regulation of money laundering in Africa: the Nigerian and Zambian approaches
Authors: Okogbule Nlerum S.
Published: October 2007

Purpose

The purpose of this paper is to examine the regulatory mechanisms adopted by two African countries, Nigeria and Zambia, in dealing with money laundering in their countries and to suggest ways of enhancing the effectiveness of these mechanisms to serve as veritable models for other African states.

Design/methodology/approach

The relevant laws enacted by these states in their efforts to tackle this crime were examined to assess their adequacy or otherwise in this direction. The key provisions of these enactments, namely, the Nigerian Money Laundering Prohibition Act, 2004 and the Zambian Prohibition and Prevention of Money Laundering Act, 2001, were discussed and the similarities and dissimilarities in both enactments highlighted.

Findings

It was found that these enactments have provided the requisite regulatory framework for dealing with this crime in these countries. In particular, both enactments contain novel provisions such as prohibition on cash transactions involving large sums of money, forfeiture of assets obtained from money‐laundering transactions, etc. It was also found that, although enacted three years earlier, in 2001, the Zambian enactment is more comprehensive and forward‐looking than the Nigerian Act, which was enacted in 2004, as the former provides for the establishment of an investigation unit within the Anti‐Money Laundering Authority, provisions that are absent in the Nigerian enactment.

Practical implications

The implication of this finding is that African states must adopt strict and stringent measures to enhance the enforcement of Money Laundering Laws, with the regulatory mechanisms, which were put in place by these countries in tackling the menace, serving as veritable guideposts.

Originality/value

The paper demonstrates, in a special way, the steps taken by two African states, Nigeria and Zambia, in dealing with money laundering and suggests that, if other states utilize these measures, it will go a long way in improving their capability in the fight against money laundering. It finally suggests proper co‐operation and collaboration between African states to make the fight more meaningful.
Implications for the financing and sustainability of enterprises based on a ranking methodology for categorical financial data
Authors: Aggelopoulos Stamatis , Menexes G. , Kamenidou I.
Published: October 2007

Purpose

The aim of the study is to present the implications for the financing and sustainability of enterprises based on a ranking methodology for categorical financial data.

Design/methodology/approach

Taking advantage of the optimal scaling properties of correspondence analysis (CA), a ranking‐clustering procedure is proposed. The proposed method was applied to categorical financial variables (i.e family farm income, gross profit, gross income, labour income and profitability) collected from a stratified random sampling of 80 Greek pig farms using a structured questionnaire.

Findings

The cluster analysis revealed three distinct groups of pig farms. Several recommendations for managerial practices and financial development resulted from this study. For the farms belonging to cluster C1, that present low rankings on both criteria, a development planning process must be applied that will focus on organizational and management issues. For the farms belonging to cluster C2, that present low rankings on the “composite income” criterion, policy measures have to be undertaken, aiming at exploiting their own production coefficients, reducing fixed costs and increasing productivity. Finally, for the farms in cluster C3, that present high scores on both ranking criteria, it is recommended to take actions that will improve their competitiveness.

Research limitations/implications

The findings are limited to five selected financial variables. Therefore, future studies in the same or other business fields would benefit from incorporating a greater number of variables.

Originality/value

The proposed methodological scheme could be useful to practitioners and academics, due to the fact that limited studies have dealt with this ranking problem, particularly in relation to the Greek agricultural business environment.
Human resource challenges confronting the Cyprus hospitality industry
Authors: Zopiatis Anastasios , Constanti Panikkos
Published: October 2007

Purpose

The primary purpose is to investigate specific human resources issues that challenge managerial level employees of the Cypriot hospitality industry. In particular the study, aims to examine: the motivational factors that directly impact on hospitality managers; burnout among hospitality managers; and the factors most likely to cause managers to either change employers or change industry segments entirely.

Design/methodology/approach

The research design included both an extensive literature review of secondary data sources relevant with the topics under investigation and a quantitative primary data collection tool; a survey questionnaire. The sample consisted of 200 randomly selected individuals currently holding managerial level positions in 5‐, 4‐ and 3‐star hotels operating in Cyprus, in order to address our research questions. The data was analyzed utilizing both descriptive and inferential statistics.

Findings

The findings on motivation tend to echo those which relate to the content motivation theories whose focus is on what it is about the individual. Furthermore, the findings affirm earlier research which suggests that motivational factors are likely to change as demographics change. In addition, the findings indicate that hospitality managers experience low levels of accomplishment, irrespective of age, while those with high levels of customer contact are at greater risk of experiencing burnout.

Practical implications

As far as turnover and leakage issues are concerned, the local hospitality industry could do well by reviewing its manager retention practices.

Originality/value

An investigation of this type has not been undertaken in Cyprus before. Consequently it is creating new knowledge in the Cypriot hospitality industry, and which could be utilized by the stakeholders in their future human resource strategies.
The impact of online SERVQUAL dimensions on certified accountant satisfaction
Authors: Carlos Pinho José , Macedo Isabel Maria , Monteiro Albertina Paula
Published: October 2007

Purpose

The purpose of this paper is to test the adequacy of SERVQUAL within the context of public online services, more specifically those provided by the Department of Taxation through its web‐based electronic declaration system.

Design/methodology/approach

Following a quantitative methodological approach, a survey was applied to a sample of 351 certified accountants to empirically test the conceptual model. A first order confirmatory factor analysis was used to test the validity of different SERVQUAL online dimensions while multiple regression analysis was used to test the proposed hypotheses.

Findings

Overall, the study finds that Certified Accountants revealed a low perceived quality with regard to empathy and responsiveness. Instead, tangibility, reliability and security were the SERVQUAL dimensions which were favourably evaluated by Certified Accountants. The study also revealed that empathy, tangibility and convenience were those dimensions that better contributed towards satisfaction.

Practical implications

This study offers the opportunity to rethink how the Portuguese Department of taxation website provides online services and how it conforms to rigorous quality standards in order to assist users in complying with fiscal obligations.

Originality/value

This study provides an empirical test regarding the adequacy of the SERVQUAL instrument for assessing service quality of online taxation services as perceived by Certified Accountants. It also validates this instrument in the specific context of taxation services of the Portuguese public sector.
Beef traceability: are Greek consumers willing to pay?
Authors: Kehagia Olga , Linardakis Michalis , Chryssochoidis George
Published: October 2007

Purpose

This paper seeks to explore two issues, namely: whether Greek consumers are interested in information provided to them for beef meat through systems of traceability, and whether they are willing to pay in order to acquire specific information for beef meat.

Design/methodology/approach

The approach is taken is discrete choice modeling with a multinomial logit approach treating 11 different types of information.

Findings

Consumers are generally willing to pay higher for traceable beef, but not all variables have equal and/or positive importance for consumers. For instance, brand is an important distinguishing factor only for higher educated respondents, but information on animal health provides negative utility for all respondents.

Practical implications

Marketing strategy issues are raised, as the importance and utility consumers attach to traceability systems'‐based information varies.

Originality/value

This paper provides further evidence on what information traceability systems should contain.
Capturing knowledge management in the supply chain
Authors: Fletcher Louise , Polychronakis Yiannis E.
Published: October 2007

Purpose

The purpose of this paper is to propose a framework to capture and potentially disseminate knowledge in the supply chain. It is theoretically developed primarily from previous published work and empirically improved by further fieldwork within a sample of SMEs.

Design/methodology/approach

The methodological approach is inductive in nature with no predetermined hypothesis. The literature review addresses a number of influential scholars in the area and focuses in particular to the work of specific authors. The relevant field work is based essentially on the administration by interview of a questionnaire with a series of open and closed questions.

Findings

Conflict exists over how knowledge should be captured, managed and disseminated by small to medium enterprises (SMEs) within any given supply chain. The literature review indicates the gap in knowledge management that exists generally in the industry and specifically within the SME sector in novel contexts of application. The field work further reinforced the literature findings within a sample of 40 SMEs from a number of industries.

Research limitations/implications

The newly proposed model will have to be further tested to ensure validity and applicability in industry. The first author only is currently in the process of undertaking that testing.

Originality/value

The work looks specifically at developing a knowledge management framework to complement previous research reported in the literature. The framework will enable partners in the supply chain to harness and potentially disseminate skills and knowledge.
Job satisfaction of managers in Cyprus
Authors: Droussiotis Annabel , Austin Jill
Published: October 2007

Purpose

The purpose of this paper is to identify job satisfaction issues for managers from large organizations in Cyprus. It aims at identifying Cypriot managers' areas and levels of job satisfaction and developing recommendations for ways Cypriot managers can improve job satisfaction.

Design/methodology/approach

Primary data are collected from a questionnaire using closed ended questions. Data analysis methods used include frequency distributions, factor analysis and regression analysis.

Findings

Results indicate that there are three areas that influence the job satisfaction levels for managers in Cyprus: self‐fulfillment, independence, and job environment. It appears that managers in the private sector experience higher levels of job satisfaction in issues regarding their self‐fulfillment. In addition, managers supervising large numbers of employees have higher job satisfaction levels for elements in their job environment than managers with smaller numbers of subordinates.

Research limitations/implications

This study is limited to Cypriot managers in large organizations in Cyprus.

Originality/value

This is believed to be the first study to look at job satisfaction levels in Cyprus. These results provide some information that may be useful to employers in Cyprus as they work to ensure their managers experience high levels of satisfaction with their jobs.
Fostering corporate entrepreneurship through internal marketing
Authors: Zampetakis Leonidas A. , Moustakis Vassilis
Published: October 2007

Purpose

The purpose of this article is to look at how internal marketing can be coupled with corporate entrepreneurship. The paper then suggests explicit practices that enhance potential for innovation at the organizational level.

Design/methodology/approach

The article presents the results of a survey based on a random sample of 223 public servants working at regional Greek governmental organizations (prefectures). It makes use of full profile conjoint analysis and cluster analysis using an appropriate survey instrument. Drawing from earlier research, different attributes that foster corporate entrepreneurship and their corresponding levels were used to form specific scenarios. The applied methodology captures and formalizes scenario preference by the public servants who participated in the survey.

Findings

The results indicated four distinct clusters of respondents, whose classification formed a pattern, which is consistent with Rogers' model of diffusion of technological innovations.

Research limitations/implications

Research relied on a sample of public servants from the Greek public sector and data is cross‐sectional in nature. Future research should be multinational and longitudinal to test the results and assumptions reported herein.

Originality/value

The findings of this paper are original and unique and provide a well‐documented framework in addressing corporate entrepreneurship in the public sector. Furthermore, the results of the study are useful to policy makers interested in formulating a strategy that fosters corporate entrepreneurship in the public sector setting.
The economic value of patent protection and rivalry in the Spanish electrical sector
Authors: Sellers‐Rubio Ricardo , Nicolau‐Gonzálbez Juan L. , Mas‐Ruiz Francisco
Published: October 2007

Purpose

The purpose of this paper is to estimate the economic value of patent protection and the resulting rivalry.

Design/methodology/approach

An event‐study is applied which uses the daily returns of shares on the stock market as an output; and a model is estimated which bases its output on Tobin's q with annual observations.

Findings

The results are determined by the methodology used and the measurement of the output dimensions of company performance. Both methodologies conclude that the patent application date is the determiner of the value of an innovation. The event study methodology reflects the positive value of patent protection.

Research limitations/implications

The generalisation of the conclusions of the study to other economic sectors should be made with caution, given the fact that only the electrical sector was analysed.

Originality/value

The literature available on this subject suggests that empirical evidence can be affected by operational problems related to the measurement of inventive input and output. As a new contribution to the field, the paper discovers the date of input (application or grant of the patent or both) on which the company manifests innovation.
Is the screening of product ideas supported by the NPD process design?
Authors: Risom Jespersen Kristina
Published: October 2007

Purpose

The purpose of this paper is to investigate whether the screening of product ideas is supported by the NPD (new product development) process design throughout the NPD phases.

Design/methodology/approach

Data were collected with an internet survey questionnaire from 43 large companies producing high and low‐technology consumer products.

Findings

Results reveal that the screening of product ideas is detached from the NPD process design, but significantly influenced by the market conditions facing companies.

Research limitations/implications

To understand NPD in companies, NPD literature will benefit from knowledge of the process of implementing “best practices” of NPD. Companies follow guidelines, but how is the NPD process followed through? This paper supports the need for improved insight into the complexity of screening decisions as well as knowledge of the screening determinants.

Practical implications

The implementation of cross‐functional teams and interacting phases demands more attention by management in order to reduce costs of NPD relative to the ROI of new products.

Originality/value

By showing that the screening is detached from the NPD process design, the paper gives valuable insight into the need for theory to investigate the complexity of implementing “best practices” of NPD.
Searching for factors influencing technological asset value
Authors: Chiesa Vittorio , Frattini Federico , Gilardoni Elena , Manzini Raffaella , Pizzurno Emanuele
Published: October 2007

Purpose

The purpose of this paper is twofold: firstly, to identify the factors that are capable of influencing the value of a technological asset that is exchanged in the context of a business transaction and, secondly, to identify the direction of the relationship between each factor and the technological asset value.

Design/methodology/approach

First of all, an in‐depth analysis of the available literature about the assessment of technological asset value was conducted. Then a panel study was organised, involving several intellectual property managers and consultants and senior practitioners working in the field of IP assessment. Finally, an illustrative case study was conducted.

Findings

The paper proposes a framework that encompasses the following classes of factors: asset related; firm related; context related; risk related; and transaction related. It is shown that these factors are capable of influencing the value of a technological asset that is exchanged in the context of a business transaction and the direction of their impact is indicated.

Practical implications

The paper is believed to be a useful instrument capable of supporting managers and appraisers who, in the context of a specific business transaction involving the exchange of a technological asset between the counterparts, are called to assess its value.

Originality/value

The value of a technological asset is typically estimated through monetary techniques (cost, income and market methods) that often turn out to be disappointing in practice. This is mainly due to their quantitative nature, that impedes them to appropriately take into account qualitative variables capable of affecting the value of the asset. This paper is the first attempt, to the best knowledge of the authors, that draws together these variables in a comprehensive form and suggests the direction of their impact on the asset value.
User involvement in radical innovation: are consumers conservative?
Authors: Heiskanen Eva , Hyvönen Kaarina , Niva Mari , Pantzar Mika , Timonen Päivi , Varjonen Johanna
Published: October 2007

Purpose

Consumers are sometimes unexpectedly resistant toward radically innovative product concepts, and it is often argued that this is due to their difficulties in understanding the novel products. Thus, marketing research has focused on new ways to make consumers familiar with new product concepts. The purpose of this study is to present the argument that educating consumers may not solve all problems, and may sometimes even address the wrong question.

Design/methodology/approach

The authors' previous research on consumer responses to new product concepts for the purchasing and consumption of food is drawn upon to explore the reasons for consumers' acceptance of and resistance to radical product innovations.

Findings

Ignorance about radical product concepts is not the sole reason for consumers' resistance to novelties. In many cases, consumers understand the product concepts fairly well. Their lack of enthusiasm stems from other reasons, including the innovation's instrumentalism, its impact on consumers' autonomy, as well as its organizational complexity and systemic effects.

Practical implications

The findings suggest that companies introducing new product innovations may need to take consumers' resistance more seriously. They might need to reconsider the acceptability of new product innovations, and integrate these considerations at earlier stages of the innovation cycle. A more open‐ended approach to concept testing is suggested, encouraging users to evaluate concepts more critically. Concept testing should not be used as a pass/fail screen, but as an opportunity to learn more about potential impacts of the innovation on everyday life and society.

Originality/value

The paper reconsiders resistance to innovations, and demonstrates the value of consumer research for product development.
How to sell technology services to innovators: evidence from nanotech Italian companies
Authors: Chiesa Vittorio , De Massis Alfredo , Frattini Federico , Manzini Raffaella
Published: October 2007

Purpose

The purpose of this paper is to study nanotech technical and scientific seminars (TSS) companies from a managerial perspective. Specifically, it means to: firstly, understand how TSS firms manage the sale of their services; and secondly, to identify the implications that different approaches in the TSS sale management have on the client firm's innovation process.

Design/methodology/approach

First, a literature analysis identifies the critical variables of a service sale management model for nanotech TSS firms. Then, an empirical investigation involving ten nanotech Italian companies was conducted. The empirical results were analytically generalised and integrated with suggestions from the literature to provide general insights into the research topic.

Findings

The paper shows that nanotech TSS companies adopt two alternative models for managing their service sale: a customised approach and a standardised one. They differ in terms of: management of the commercial relationship; phases of interaction with the client firm; and degree of standardisation of the provided service.

Research limitations/implications

Because of the applied research methodology, the findings can be generalised to TSS companies offering services in the field of nanotechnology, although implications for similar technology‐intensive sectors are discussed.

Practical implications

The two TSS sale management models have different implications on the client's innovation process, in terms of: firstly, structure of the process itself and, secondly, applied managerial and organisational practices. These effects should be considered by the innovator that wants to fully exploit the potentiality of the acquired service.

Originality/value

So far, TSS have been analysed in the literature from the client firm's point of view. The paper widens this perspective, since it considers the two opposite viewpoints in the TSS sale: the service supplier's and the service buyer's.
Evaluating an Australian public policy organization's innovation capacity
Authors: O'Connor Allan , Roos Göran , Vickers‐Willis Tony
Published: October 2007

Purpose

The purpose of this paper is to provide explicit thinking about the organizational elements that support or hinder innovation in the government sector as it increasingly faces demand for innovative solutions to policy areas. The paper aims to present the development and findings of an evaluative case method conducted for an Australian state government department's organizational innovation program.

Design/methodology/approach

The evaluative case study was developed and conducted in two phases. First, an intellectual capital conceptual framework was applied to four independently sourced and discreet case organizations to represent multiple exemplars of innovation capacity building. These exemplars were suspended from their context in order to identify essential elements of the innovation capacity development process which in turn were then applied in phase two to the Department of Treasury and Finance (DTF), a Victorian (Australia) public policy organization.

Findings

The case raises critical distinctions between “innovation capability” and “innovation capacity”. The discussion offers insight into the process of developing innovation capacity for government policy organizations.

Research limitations/implications

The evaluation method incorporated a novel technique and trialed a phase development instrument for testing the embeddedness of organizational innovation. Both the technique and the instrument would benefit from further refinement, testing and development.

Originality/value

This paper develops work previously presented in O'Connor and Roos that considered the conceptual framework for using intellectual capital as an evaluation framework for organizational innovative capacity. It extends this work by piloting its application in a specific context and offers new insight into the organizational design issues of government organizations facing the challenge of producing innovative policy solutions.
The mortgage lending value: prospects for development within Europe
Authors: Bienert Sven , Brunauer Wolfgang
Published: October 2007

Purpose

The purpose of this paper is to critically review the German mortgage lending value (MLV) and to adapt it in order to find a new concept that could serve as the basis for an internationally accepted standard for valuations for lending purposes.

Design/methodology/approach

The research is based on a critical review of existing practices and literature and applies developments in the area of risk management tools, modern valuation techniques as well as the results of the consultation for Basel II in order to find an improved method.

Findings

It was found that a value‐at‐risk approach and the implementation of simulation helps to understand the concept of MLV. The results also indicate that the German system of calculating the MLV has to be improved.

Practical implications

Banks are in need of tools, reliable instruments and a strong theoretical basis when evaluating their collateral. The valuation of real estate for long‐term loans has always been a problem. This paper indicates a strong basis for the implementation of tools in every day business.

Originality/value

Value‐at‐risk concepts and the concepts of maximum/maximum potential loss within a (future) time period have until today not been integrated in the valuation of real estate serving as collateral.
Gearing and the Australian real estate investment market
Authors: De Francesco Anthony J.
Published: October 2007

Purpose

The aim of the paper is threefold: to provide an overview of gearing in the Australian real estate investment market; formally examine the relationship between property returns, risk and gearing; and provide some guidance in evaluating “optimal” gearing levels for real estate investment.

Design/methodology/approach

A mathematical modelling framework is presented for evaluating the relationship between investment returns, risk and gearing levels.

Findings

The study highlights that risk rises with rising gearing levels and that risk‐adjusted returns fall with rising gearing. Furthermore, it is shown that the gearing‐risk relationship is influenced not only by the cost of debt structure but also the interdependency between ungeared returns and interest rates.

Research limitations/implications

The study suggests that current gearing levels from Australian listed property trusts and unlisted wholesale property funds are relatively conservative. This implies that current gearing could be increased, in particular for wholesale funds, without taking on substantially more risk whilst enhancing returns.

Practical implications

The paper is of value to industry and academia as it offers an extended framework for evaluating the relationship between risk and gearing. In particular, the framework provides insight for gauging gearing levels when constructing real estate investment strategies.

Originality/value

Importantly, the paper shows that the interdependency between ungeared returns and interest rates significantly impacts the relationship between risk and gearing.
Optimal holding period for a real estate portfolio
Authors: Baroni Michel , Barthélémy Fabrice , Mokrane Mahdi
Published: October 2007

Purpose

The purpose of this paper is to offer a framework for computing optimal investment holding periods for real estate portfolios.

Design/methodology/approach

The analysis is set within a standard DCF modelling framework and it is shown that it is not adapted to offer sufficient insight into the mechanics leading to optimal holding periods. A richer framework is offered that enables the portfolios terminal value to behave according to a simple diffusion process.

Findings

The findings show that optimal holding periods for real estate investment portfolios exist within very precise conditions. The key parameters are the investor's weighted average cost of capital (WACC), the cash flow growth rate during the investment period, and the investment's net initial yield. The key finding is (loosely speaking) that, if the investor's cost of capital is outpaced by (the sum of) the portfolio's net initial yield and the cash flow growth rate, then an optimal holding period exists and can be precisely computed. Numerical examples are provided to illustrate these findings.

Originality/value

Standard financial theory does not specify a consistent methodology for choosing the optimal investment horizon in investment analysis and in particular in discounted cash flow (DCF) modelling. This problem may be particularly acute in real estate investment analysis and valuation, as investment horizons are often arbitrarily chosen. The paper proves that investment horizon may strongly influence net present value.
Property stigma: wind farms are just the latest fashion
Authors: Sims Sally , Dent Peter
Published: October 2007

Purpose

The Government's aim to curb CO2 emissions from energy production has resulted in the growth of a new environmental feature; the wind turbine. Whilst this may help tackle climate change, there is concern that the visual and aural presence of these turbines could have a negative impact on house prices. Opinion studies undertaken within the UK appear to show significant variations in attitudes towards wind farms in different locations (in particular between Scotland and southern England) and at different stages during the development process. However, to date, no research has established the actual impact on proximate house values. Therefore, the purpose of this study, sponsored by the RICS, is to develop a methodology to measure the likely impact of onshore wind farms on house prices in the UK.

Design/methodology/approach

This study focused on residential property surrounding two wind farms in Cornwall. Transaction data for 1,052 house sales completed between 2000 and 2004 were obtained and analysed using regression modelling and comparative sales analysis. A second study undertook an analysis of the planning objections to wind farms in this location.

Findings

The analysis of transaction data found some correlation between distance from a wind farm, and value. However, the data were insufficiently detailed to draw any sound conclusions. The analysis of planning objections revealed that 95 percent of objections came from people living outside Cornwall.

Research limitations/implications

Whilst the methodology is sound, the available data were limited to house type and selling price, and therefore not sufficiently detailed to highlight any small changes in value.

Originality/value

The paper establishes general criteria which could be used to evaluate the potential impact of onshore wind farms on property values.
Who am I, and where's my money? Issues in online security
Authors: Gorman G.E.
Published: October 2007

Purpose

The purpose of this paper is to address the issue of online security.

Design/methodology/approach

Discusses the problem of breaches in online information sharing and security.

Findings

There are many issues to be considered in addressing the matter of online information security that is so important for the future stability of the online world.

Originality/value

Provides a discussion on policy formulation at international and national level, to trust building as a key to online security, to specific technical processes that might help thwart breaches of this security.
Towards an international road‐map for cybersecurity
Authors: Sund Christine
Published: October 2007

Purpose

The purpose of this paper is to show that the full potential of the internet has not yet been realised. One of the key reasons for this is users' declining trust in the internet. Over the past two decades, the internet has transformed many aspects of modern life. With an estimated four million users worldwide at the end of 2006, the use of the internet continues to grow. Building trust and confidence is one of the main enablers for the future growth and use of the internet. The paper aims to review some of the reasons behind the declining trust, the changing nature of cyber‐threats, and aims to look at cybersecurity in the context of developing countries and the specific problems these countries are facing when dealing with growing number of cyber‐threats.

Design/methodology/approach

This contribution gives an overview of some of the evolving cyber‐threats and their potential impact in order to determine whether the growth of the information society is really at risk. It further considers what the different stakeholders can do to build a safer and more secure information society. The paper poses questions, outlines possible options for a way forward and based on this gives the readers a better understanding of the issues and challenges involved in building confidence and security in the use of ICTs. The paper proposes a framework with increased co‐operation, collaboration, and information sharing, to connect the individual cybersecurity communities and single initiatives, in order to allow stakeholders to build together a roadmap for cybersecurity.

Findings

During the discussions leading up to and during the two phases of the World Summit on the information society, country representative participants re‐affirmed their commitment to deal effectively with the significant and growing problems posed by spam and other cyber‐threats. As no single country or entity can alone create trust, confidence and security in the use of ICTs, it is clear that increased international action is needed to address the issues involved.

Practical implications

This paper tries to provide readers with a simple overview of the state of cybersecurity, and with a framework for further considering how new technologies and the growing use of the internet will impact upon stakeholders' trust in the use of ICTs.

Originality/value

Along with increasing dependency on ICTs, new threats to network and information security have emerged. These include growing misuse of electronic networks for criminal purposes or for objectives that can furthermore adversely affect the integrity of critical infrastructures within states. This paper puts forward some concrete suggestions on how countries could look at the issues related to cybersecurity.
The role of security, privacy, usability and reputation in the development of online banking
Authors: Casaló Luis V. , Flavián Carlos , Guinalíu Miguel
Published: October 2007

Purpose

The purpose of this research is to analyse the influence of perceived web site security and privacy, usability and reputation on consumer trust in the context of online banking. Moreover, the paper also aims to analyse the trust‐commitment relationship since commitment is a key variable for establishing successful long‐term relationships with customers.

Design/methodology/approach

The paper describes the positive effects of security and privacy, usability and reputation on consumer trust in a web site in the online banking context. Besides this, it also suggests that trust has a positive effect on consumer commitment. After the validation of measurement scales, the hypotheses are contrasted through structural modelling. Finally, the paper compares the hypothesised model with a rival one in order to test the mediating role of trust.

Findings

The data showed that web site security and privacy, usability and reputation have a direct and significant effect on consumer trust in a financial services web site. Besides this, consumer trust is positively related to relationship commitment. Finally, it is observed that trust is a key mediating factor in the development of relationship commitment in the online banking context.

Research implications/limitations

The high costs every company has to face in order to attract new customers make it increasingly necessary to reinforce the ties established with customers. In this respect, this research offers several alternatives for improving the levels of consumer trust and commitment in the context of online banking. The limitation is that data were collected to a web survey only of Spanish‐speaking subjects.

Originality/value

This study proposes a model for analysing empirically the link between security, privacy and trust, amongst others, in the online banking context.
A conceptual model of trust in the online environment
Authors: Salo Jari , Karjaluoto Heikki
Published: October 2007

Purpose

The purpose of this paper is to show that trust is an important factor for successful online transactions. Although the importance of trust has been examined from various perspectives, the studies on online trust have been fragmented in nature and are still in their infancy.

Design/methodology/approach

This paper explores factors that affect the formation of end‐user trust in online environments. The study proposes a conceptual framework, which categorises the affecting elements under internal and external factors affecting end‐user trust formation.

Findings

The results suggest that the actual outcome of trust‐enhancing methods in online environments should be the development of long‐term trusted customer relationships.

Research limitations/implications

More empirical research efforts need to be directed to study trust in online environments. This study is conceptual and qualitative in nature, which is its main limitation.

Practical implications

Companies operating in the online environment should focus their attention on the trust formation process and its management as well as creating and managing their relationships with important third parties.

Originality/value

The study is significant for two reasons. First, it synthesises online trust literature and, second, it presents an integrative trust model.
Perception of risk and the strategic impact of existing IT on information security strategy at board level
Authors: McFadzean Elspeth , Ezingeard Jean‐Noel , Birchall David
Published: October 2007

Purpose

Information security is becoming increasingly more important as organisations are endangered by a variety of threats from both its internal and external environments. Many theorists now advocate that effective security policies should be created at senior management level. This is because executives are able to evaluate the organisation using a holistic approach as well as having the power to ensure that new systems and procedures are implemented in a timely manner. There is, however, a continuing lack of understanding regarding the strategic importance of managing information security. In addition, there is a gap in the literature on the relationship between directors and information security strategy. This paper attempts to close this gap by exploring how directors perceive their organisation's security and what factors influence their decisions on the development and implementation of information security strategy.

Design/methodology/approach

The research is based on constructivist grounded theory. Forty‐three interviews were conducted at executive level in 29 organisations. These interviews were then coded and analysed in order to develop new theory on directors' perception of risk and its effect on the development and implementation of information security strategy.

Findings

The analysis shows that senior managers' engagement with information security is dependent on two key variables: the strategic importance of information systems to their organisation and their perception of risk. Additionally, this research found that these two variables are affected by both organisational contextual factors and the strategic and operational actions undertaken within the business. Furthermore, the results demonstrated that the two board variables also have an impact on the organisation's environment as well as its strategic and operational actions. This paper uses the data gathered from the interviews to develop a model of these factors. In addition, a perception grid is constructed which illustrates the potential concerns that can drive board engagement.

Practical implications

The paper illustrates the advantages of using the perception grid to understand and develop current and future information security issues.

Originality/value

The paper investigates how organisational directors perceive information security and how this perception influences the development of their information security strategy.