bluuebunny/crossref_metadata_2025 huggingface dataset:
The Multi-Dimensional Impact Of International Tourism
Authors: Makhlouf Hany H.
Published: March 2016

Most countries be they developed or developing, rich or poor, and large or small compete for a larger share of the international tourism dollars. They capitalize on their cultural heritage, historic landmarks, rich wildlife, ancient monuments, scenic beauty, and other distinctive attractions and invest in world class resorts, hotels, and entertainment facilities to increase their appeal to the greatest numbers and different types of international travelers. However, success in international tourism is not without a cost. Aside from the investment needed for developing, upgrading, and maintaining the tourism infrastructure, there are environmental and social costs that need to be measured and carefully managed. Although many economists point to the revenues that are earned by destination countries from international tourism, some observers in developing countries show concern about the creation of a state of economic, political and cultural dependency that may have long-term negative consequences. This article explores the history, present importance, trends, and growth patterns of international tourism. It addresses a number of questions: 1) Has international tourism been a curse or a blessing for countries that have become economically dependent on it?, 2) Have recent trends been more or less favorable to the poorest countries?, 3) What are the forces that bring about shifts and changes in international tourism?, and 4) What are the future prospects for this industry?
Cross-Sector Style Analysis Of Global Equities Based On The Fama And French Three-Factor Model
Authors: Hsieh Heng-Hsing , Hodnett Kathleen
Published: March 2016

Although the ability of the Fama and French (1993) 3-factor model in explaining style-based portfolio returns have been widely tested, no such test has been conducted on sector-based portfolios. The study conducted by Hsieh and Hodnett (2011) indicate that the resource sector yields significant abnormal returns under the capital asset pricing model (CAPM) over the period from 1999 to 2009. In addition, the book value-to-market ratio and market capitalization are found to have pervasive effects on the pricing of sector returns for global equities. Motivated by this insight, we undertake to test the ability of the Fama and French (1993) 3-factor model in explaining the variations in the global sector returns. Our test results indicate that the market risk premium is the most significant factor that drives the returns in all sectors under review. Although the positive abnormal returns of the resource sector dissipates under the 3-factor model, the industrial sector and the information technology (I.T.) sector yield abnormal returns under the 3-factor model. Unlike the empirical findings on the style portfolios, the signs and statistical significance of the exposures to the value and size risk premiums are not consistent across all sectors. This finding suggests that sector exposures are more unique and distinctive compared to the style portfolios. It could be argued that since most of the style portfolios are directly related to the value and size anomalies, any factor model that incorporates risk premiums on these anomalies would significantly explain the style portfolio returns. However, the ability of such factor model in explaining returns on portfolios formed using methodologies other than style anomalies, such as sector portfolio returns, would be questionable. Taking into account the rising global integration, sector allocation might be more effective in terms of global active portfolio management or international diversification than style allocation and country allocation.
On The Determinants Of Relative Prices: Some Evidence From The Euro Area
Authors: Kienle Stephan
Published: March 2016

Within the Balassa-Samuelson framework relative prices are exclusively driven by productivity gaps. The paper at hand suggests that sectoral taxation effects should additionally be taken into account. Such an enlargement of the classical approach is motivated by theory and confronted with real data for nine members of the Euro Area. We find empirical evidence for this extension indicating that both productivity and taxation should be regarded when changes in prices are analyzed.
Influence Of Australian Coal Export On A$/US$ Exchange Rate: A Longitudinal Study
Authors: Ali Md. Liakat , Rahman Sheikh F.
Published: March 2016

This paper investigates the contribution of Australian coal export to determine the exchange rate of Australian dollar with the US dollar. The quarterly data of Australian coal export and the Australian dollar exchange rate from 1992-2009 are employed to measure the influence of Australian coal export on A$/US$ exchange rate. This study finds that the Australian coal export has a positive relationship with the exchange rate of A$/US$ and their relationship is becoming stronger. The findings of this research suggest that the volume of Australian coal export contributes about 8% to determine the exchange rate of A$/US$ between the period of 1992-2009. The results of this analysis confirm that for each one million tonnes export increase of Australian coal, the Australian dollar value against the US$ increases by 0.002450 USD.
The Changing Landscape Of The Indian Banking Industry: An Empirical Study
Authors: Venkataramany Sivakumar , Bhasin Balbir B.
Published: March 2016

While global financial deregulation has led to liberalization of financial services and thus to modernization of commercial banking, industrialized economies are facing a financial meltdown. The health of the major global banking industry is under severe stress, but India continues to be strong. Despite cost prohibitive efforts in the introduction of a range of new products and services, banks in India are striving to emerge from an era of development banking into consumer-oriented supermarkets. This paper studies the Indian banking industry with regard to its readiness to move on to the next generation.
The Effect Of Market Structure On Mutual Fund Performance In Taiwan
Authors: Wang Ching-Chang , Venezia Chiulien C.
Published: March 2016

This paper illustrates the relationship between industry concentration and performance in Taiwans mutual fund industry. Our research mainly focuses on the relation between a funds average performance and market structure. Typically, a funds manager who faces price uncertainty will dedicate his efforts to determine the scale and compositions of portfolio to achieve a better performance in the near future. Since mutual funds are price takers, the empirical results for this industry may go beyond the scope of the SCP paradigm. This study focuses on the open-end equity mutual fund in the Taiwan market, which can be viewed as one representative of emerging markets. Employing three measures of market structure, we find that the higher degree of market concentration always associates with poor performance, which contradicts the structure-conduct-performance (SCP) hypothesis. More interestingly, when market shares of mutual funds have been considered, our empirical results show a U-shape structure-performance relation for mutual funds. When a funds market share becomes larger, the negative influence on fund performance of market concentration will get stronger. Similarly, the smaller a funds market share the stronger negative impact on fund performance of market concentration, suggesting that mutual funds endowed with too weak or too strong market power can erode their performance. More importantly, these results offer a new thinking toward the mutual fund industrys organization policy for authorities; that is, maintaining a high competitive environment and encouraging mutual funds to keep moderate and efficient scale is a better way to achieve superior fund performance.
The Participation Of Community And Stakeholders In Environmental Issue Management For Green Tourism In Thailand
Authors: Mechinda Panisa , Serirat Sirivan , Serirat Sirivan , Popichit Nongluck , Popichit Nongluck
Published: March 2016

The objective of this research is to study the environmental issues for green tourism development of Khao Yai Forest Complex by analyzing opportunities, threats, strengths, and weaknesses from the stakeholders perspectives. According to weighted average score of strengths, weaknesses, opportunities, and threats, Khao Yai National Park is in the quadrant of SO (strengths and opportunities), indicating that they have strengths and opportunities and should therefore use aggressive strategy. Thap Lan National Park is in the quadrant of ST (strengths and threats), indicating that they have strengths and threats and should therefore use competitive strategy. In contrast, Pang Sida National Park, Ta Phraya National Park, and Dongyai Wildlife Sanctuary are in the quadrant of WT (weaknesses and threats), indicating that they have weaknesses and threats and should therefore use defensive strategy.
Patterns Of Consumer Interest Across Developed And Emerging Markets
Authors: Kulkarni Gauri
Published: March 2016

In this study, we consider online search term volume as a measure of consumer interest and investigate the patterns of consumer interest across various international markets. Prior research has suggested that online search term volume, or the number of times a particular term is submitted to a search engine, can indicate aggregate or market-level interest in that term. As such, we consider the top terms in the US (most searched for) for one calendar year and look at the patterns of interest in those terms over time in the US, as well as in foreign developed and emerging markets. As globalization continues, consumers are likely to become more culturally integrated, particularly with the rapid spread of information. We explore one approach in measuring this phenomenon. We consider five dimensions of culture for eight foreign markets four developed and four emerging. We find high levels of cultural integration for terms related to technology products and social networks. Our results suggest implications for international marketing strategy.
Application Of Resilient Long-Short Strategies For Taiwanese Hedge Funds
Authors: Hsieh Heng-Hsing , Hodnett Kathleen
Published: March 2016

This paper proposes a 4-step approach in developing resilient long-short hedge fund strategies for stocks traded on the Taiwan Stock Exchange. The two hedge fund strategies developed in this research, namely the Hybrid Neutral Fund and the Defense Fund, outperform their respective benchmarks on a risk-adjusted basis over the examination period from 01 January 2000 to 31 December 2011. In addition, both hedge fund strategies efficiently mitigate the drawdowns during turbulent times. The total returns on the TAIEX Index (the market proxy) is found to be a mean-variance inefficient portfolio over the examination period. The Hybrid Neutral Fund that takes the advantage from both the traditional market neutral fund and the Defense Fund is found to achieve the highest risk-adjusted performance over the examination period.
Large Scale Land Acquisitions In Sub-Saharan Africa: The New Scramble?
Authors: Sparks Donald L
Published: March 2016

Almost three-fourths of the worlds recent land grabs have occurred in sub-Saharan Africa, estimated at some 50 million hectares, which is almost equal to the size of Spain. As most of the recent land acquisitions involve farmland, and since agriculture is so vital to Africas ability to reduce poverty and hunger, this is a particularly important topic. These large acquisitions raise concerns about the dangers of neglecting local needs and exacerbating social tensions in already fragile states.
Do South African Small Businesses Prefer Conservative Tax Advice To Aggressive Tax Advice?
Authors: Lubbe Melissa , Nienaber Gerhard
Published: March 2016

Taxpayers relationship with tax practitioners may influence tax compliance behaviour. International research has been inconclusive on whether taxpayers prefer conservative tax approaches or more aggressive approaches. There has been only limited research on taxpayers preferences in South Africa. Several tax relief measures are available to South African small businesses as growing enterprises, but such entities may lack skilled tax staff and they therefore rely on tax practitioners. The first objective of this study is to determine whether such taxpayers prefer conservative or aggressive tax advice from practitioners. The second objective is to determine whether small business taxpayers would continue to use their tax practitioners services if they disagree with a suggested tax approach. Questionnaires were sent to 50 small businesses in a rural South African town. The data showed that most participating small business taxpayers prefer conservative advice but will agree with the tax practitioner, irrespective of the type of tax advice offered. As long as the advice does not involve tax evasion, they prefer to retain a tax practitioners services irrespective of the type of advice and their (dis)agreeing with it.
Trends In Credit To Smallholder Farmers In South Africa
Authors: Chisasa Joseph , Makina Daniel
Published: March 2016

Access to credit for smallholder farmers remains a challenge in most developing countries. This paper examines the trend and pattern of bank credit to smallholder farmers in South Africa, both before and after the attainment of democratic government. The analysis of the trend and pattern of bank credit to smallholder farmers was conducted within the confines of the same agricultural sector, across all economy sectors and in relation to GDP. Our analyses show that bank credit to smallholder farmers is (and continues to be) a small fraction of total credit to the private sector and is a very small proportion of GDP. The smallholder farmer sector is observed to face the same constraints to credit as SMEs, a category of enterprises to which they also belong. In light of the importance of agriculture, in general, and smallholder farmers, in particular, to South Africas poverty alleviation and food security drive, our results have important policy implications.
Stock Market Development And Economic Growth In Hong Kong: An Empirical Investigation
Authors: Ho SY , Odhiambo NM
Published: March 2016

This paper examines the relationship between stock market development and economic growth using time-series data from Hong Kong. The study uses three proxies of stock market development, namely: stock market capitalisation, stock market traded value, and stock market turnover. Given the weaknesses associated with the traditional co-integration techniques, the current study uses the recently introduced ARDL-bounds testing approach to examine the nexus between stock market development and economic growth in a dynamic setting. The empirical results show that the direction of causality between stock market development and economic growth depends on the proxy used to measure the level of stock market development. When stock market capitalisation is used as a proxy for stock market development, a distinct unidirectional causal flow from stock market development to economic growth is found to prevail, without any feedback. However, when stock market turnover is used, a causal flow from economic growth to stock market development is found to prevail in the short run and in the long run, while a causal flow from stock market development to economic growth is only found in the short run. The causality between stock market traded value and economic growth, however, failed to yield any long-run causal relationship from either direction. Only a short-run causality flow from economic growth to stock market traded value could be detected in this case.
Tax Education: Current Views And Preferences Of South African Employers
Authors: Doman Sanet , Nienaber Gerhard
Published: March 2016

Various reasons caused the demand for tax practitioners to increase, creating a need for specialised tax education and training. Since the tax profession is not currently regulated in South Africa, educators receive little input from employers on their expectations regarding formal tax qualifications. This causes uncertainty as to whether or not employers are satisfied with tax education in South Africa. This article reports on the current and preferred composition of tax departments, considering South African employees qualifications. The article also highlights employers current views and preferences regarding theoretical knowledge and practical skills included in these qualifications. Any agreements between the employees current views and preferences are indicated. Data was gathered by using questionnaires and the population on which it was tested comprised partners of the tax departments of certain financial consulting firms. The results show that there is not a fundamental difference between the current and preferred composition of tax departments. There is also evidence that employers preferences regarding theoretical knowledge and practical skills differ from their current views. It is therefore recommended that tax education in South Africa is regulated to ensure that employers can provide input on the curricula included in tax qualifications.
Persistence And Asymmetry In Exchange Rate Volatility
Authors: Hassan S. Aun
Published: March 2016

Recent economic downturn in the United States and Europe has affected major currencies around the world. This paper focuses on the behavior of exchange rates over the past decade to study how volatility pattern of these exchange rates responds to any exogenous shocks. The paper focuses on persistence and asymmetry in volatility of major exchange rates due to exogenous shocks. The paper employs a univariate GARCH and an EGRACH model to test the persistence and asymmetry of exchange rate volatility using data from the past decade plus. The results show high persistence and asymmetric behavior in volatility implying that the effect of good news on exchange rates is different from the effect of bad news. The results of this paper have important implications for foreign exchange investors and will provide a better understanding of the foreign exchange market to interested observers.
A Study Of A Feebate Policy Aimed At Vehicle Manufacturers To Reduce CO2 Emissions
Authors: Du Plooy Johann , Nel Rudie
Published: March 2016

As part of environmental fiscal reform, the South African government introduced a vehicle emission tax during 2010. However, the design of this tax focuses on consumers and might not be as effective in reducing CO2 emissions. A feebate policy is considered as a possible alternative to reduce CO2 emissions. A literature review was performed on the topic of feebate policies that could encourage vehicle manufacturers to invest in energy-efficient technology aimed at reducing CO2 emissions. Based on the literature review a questionnaire was developed and distributed to nine vehicle manufacturers in South Africa. The study specifically focused on vehicle manufacturers as they have the opportunity to design, develop and introduce energy-efficient technology that could reduce CO2 emissions. Results suggest that a feebate policy (that leads to cost savings) is an alternative that could be considered to encourage vehicle manufacturers to invest in energy-efficient technology in order to reduce CO2 emissions.
Non-linear Causality Between Stock Returns And Inflation Uncertainty: Evidence From The US And The UK
Authors: Cakan Esin
Published: March 2016

This study analyzes the dynamic relationships between inflation uncertainty and stock returns by employing the linear and non-linear Granger causality tests for the US and the UK. Using GARCH model to generate a measure of inflation uncertainty, it does not have a predictive power for stock returns, as predicted by Friedman, and it does not support the opportunistic central bank hypothesis suggested by Cukierman-Meltzer. However, the findings from non-linear Granger causality put forth that there is a bi-directional non-linear predictive power between these variables. Stock market is used as a hedge against inflation uncertainty.
The GDP Growth-Rates Of Countries With The Highest Production Of Patents
Authors: Pena-Sanchez Rolando
Published: March 2016

The generation of patents reflects a significant part of the economical development of a country, and is an activity that is intrinsically related to the intellectual capital of an organization. This article focuses on the relationship between the growth rate of the gross domestic product (GDP) and the production of patents, based on annual data during the period 2005-2010 for the three countries around the world with the highest level in production of patents: USA, China, and Japan. A nonparametric correlation method (named Spearman's rank correlation) was selected (whose justification is explained) to estimate the correlation coefficient (p-value<0.01); an economical variable: the external debt measured in US$ billions was incorporated in the analysis, due to its significant correlation (p-value<0.01), which since 2004 has been growing and reaching an unsuspected upper extreme margin.
E-Service Quality Framework In A Revenue Authority Setting For South Africa
Authors: Stiglingh Madeleine
Published: March 2016

Tax revenue forms the backbone of any economy. The quality of the e-services provided by a revenue authority is therefore crucial, as e-service quality directly influences the burden of complying with tax obligations, and hence directly affects the tax compliance climate in a country. The aim of the study is the development of a conceptual e-service quality framework for South Africa that encapsulates the lens of a tax practitioner in a revenue authority setting. In order to develop the conceptual lens of the tax practitioner, an in-depth, qualitative approach was used to identify a comprehensive range of attributes and determinants that potentially drive service quality in the revenue service setting. One such qualitative method is the critical incident technique, which relies on a set of procedures to collect comments on service experiences, to perform a content analysis and to classify the observations of the reported service experiences. This study proposes a theoretical e-service quality framework that encapsulates the lens of the tax practitioner in a revenue authority setting. Findings from this study may advance the understanding and the management of the service quality of the electronic services in a revenue authority setting.
Analysis Of The Factors Influencing Household Expenditure In A South African Township
Authors: Sekhampu T.J. , Niyimbanira F.
Published: March 2016

The study reported in this article examined the socio-economic determinants of household expenditure patterns in a South African township of Bophelong. The results are based on a household survey using questionnaires. A multiple regression model was used to explain responses in monthly expenditures to socio-economic factors. Household income, household size, the number of people who are employed, employment status, and the educational attainment of the household head were found to exert a strong positive impact on household expenditure. The marital status of the household head was associated with a negative impact on household expenditure. The gender and age of the household head had no impact on the variations in household expenditure. The results of this study contribute to the understanding of township residents by analysing the socio-economic factors associated with household expenditure.
Corporate Governance Of Family Firms In Subsequent Generations
Authors: Duller Christine
Published: March 2016

This paper addresses the differences in corporate governance regarding generations of Austrian and German family businesses. Generations differ from each other significantly with respect to the percentage of non-family executives in management boards. The existence of a supervisory board differs between founder and subsequent generations, but it turns out that with transfer of ownership to subsequent generations, there is no noticeable trend concerning the percentage of non-family members in supervisory boards. Thus, this study demonstrates the importance of a comprehensive and profound analysis of generation-specific characteristics.
Why Political Contributions Are A Business Issue: State Campaign Finance Reform And The Bottom Line
Authors: Handlin Amy
Published: March 2016

While electoral finance reform has finally taken hold at the national level -- due partly to pressure from the corporate community -- this paper argues that reform at the state level is equally critical to business. The current system is costly both in dollars and in the perception of corruption, but is amenable to change.
Bank Credit And Agricultural Output In South Africa: A Cobb-Douglas Empirical Analysis
Authors: Chisasa Joseph , Makina Daniel
Published: March 2016

We empirically examine the impact of bank credit on agricultural output in South Africa using the Cobb-Douglas production function. We utilize time series data of agricultural output, bank credit, capital accumulation, labour and rainfall from 1970 2009. With agricultural output as the dependent variable, we determine OLS estimates of the Cobb-Douglas production function. We observe that bank credit has a positive and significant impact on agricultural output in South Africa. With other factors of production kept constant, a 1% increase in credit results in 0.6% increase in agricultural output. Capital accumulation is also observed to have a positive and significant impact on agricultural output, albeit lower than that of credit, as a 1% increase in capital accumulation results in 0.4% increase in output, other factors kept constant. In terms the Cobb-Douglas elasticities, the combined effect of credit (0.6%) and capital accumulation (0.4%) gives constant returns to scale, meaning that doubling the two inputs will double agricultural output.
Life Satisfaction Of The Internet And Non-Internet Users In Thailand
Authors: Leelakulthanit Orose
Published: March 2016

Life satisfaction is conceptualized in this study according to the psychological and spiritual characteristics, satisfaction with various domains of life, and the demographic characteristics of individuals living in Thailand. Adult Internet users and non-Internet users in Thailand were interviewed. The Internet users were found to be more satisfied with their lives than the non-Internet users. Multiple regression analyses were conducted and the results showed that the Internet users value optimism, personal health, and self positively, whereas consumption of goods was valued negatively. The non-Internet users value optimism, internal locus of control, and family positively, whereas being moderate and social life were valued negatively. Furthermore, it was found that the Internet users felt they could live their lives in the way they valued, except for the aspect of the consumption of goods. Non-Internet users, on the other hand, felt that they were not able to live their lives in the way they valued, except for the aspect of family and social life.
Financial Literacy Needs Of South African Third-Year University Students
Authors: Louw Jurgens , Fouche Jaco , Oberholzer Merwe
Published: March 2016

It is evident from the literature that financial education and financial training fail in South Africa, which results in tertiary institutions sending their students into the world with a lack of preparedness for the financial challenges that await them. The problem with this study is that before interventions can be designed, a thorough understanding of the needs of students is important. Therefore, the purpose of this case study is to evaluate the financial literacy needs of third-year students at a South African university. The research fulfills the purpose by means of a survey, where a questionnaire was developed to first evaluate the socio-economic environment and exposure to the world of finance and then the financial literacy of 424 students who participated in this study. The contribution of this study is, first, that with the existing literature as a basis and a cluster analysis of the results, a new suitable questionnaire to evaluate financial literacy was developed for the South African context. Furthermore, the study uncovered the areas where the respondents, who are mainly financially supported by their parents, have a high level of literacy, as well as the areas of illiteracy that need to be addressed.
Does Australia Have A Good Income Tax System?
Authors: Stokes Anthony , Wright Sarah
Published: March 2016

Australia is considered to have relatively low rates of tax in comparison to other members of the OECD. This paper explores Australias tax system to see if it is a fair, efficient and simple system for income earners. The paper finds that there are major inequities in the current income tax system, which tend to favour the higher income earners and owners of wealth.
Determination Of The Factors Affecting The Food Security Status Of Households In Bophelong, South Africa
Authors: Sekhampu TJ
Published: March 2016

This study investigates the food security status of households in the township of Bophelong, South Africa. The results are based on a household survey using questionnaires. A Logistic regression model was estimated based on this data with the household food security status (that is food secure and insecure) as the dependent variable and a set of demographic variables as explanatory variables. It was found that about 26 percent of the sampled households are food secure. Further analysis identified household income, household size, marital status, employment status, age and gender of the household head as important determinants of food security. While other variables of importance positively influenced food security, household size and the marital status of the household head were negatively associated with household food security. The educational attainment of the household head was not important in explaining the variation in household food security status. Information provided by this study can be used as a reference source for policy decisions regarding household food security in South Africa.
Stability Of Money Demand In A Developing Economy: Empirical Evidence From South Africa
Authors: Niyimbanira Ferdinand
Published: March 2016

A stable money demand function plays a vital role in the analysis of macroeconomics, especially in the planning and implementation of monetary policy. When investigating the theory of money demand, there are some important issues that need to be considered, such as the choice of the appropriate measure of money, the scale variable (income or wealth) and the opportunity cost variable (short- or long-term interest rates). This paper estimates a stable long-run equilibrium relationship between real money demand (RM2) and its explanatory variables in South Africa, using cointegration and error correction methods. The results obtained confirm the existence of such stable equilibrium relationships. The crucial results from the Error Correction model (ECM) indicate that monetary policy in South Africa is effective. However, in spite of its efficiency, monetary policy does not have a quick effect, needing at least four quarters (one year) from its inception to make a real difference. In other words, there might be difficulties in implementing monetary policy in an emergency situation. Policy implications and suggestions for future research are made in the paper.
Happy In The Informal Economy? A Case Study Of Well-Being Among Day Labourers In South Africa
Authors: Blaauw Phillip , Botha Ilse , Schenck Rinie , Schoeman Christie
Published: March 2016

Past research provided evidence of thenegative effect that individual unemployment can have on subjective well-being.The persistent high levels of unemployment and poverty in South Africa havebeen well documented. Many people are forced into the informal economy, wherethey engage in a variety of survivalist activities such as day labouring. As noprevious study has been conducted on the well-being of day labourers, the aimof this paper is to investigate the determinants of the well-being of South Africanday labourers. Objective and subjective functions are compared to determine therole of income and other variables in the well-being of day labourers. Thedeterminants are categorised according to economic, comparison and attitudinalvariables. The objective function uses income and the subjective function usesthe binary measure of experiencing a good week in terms of wages as dependentvariables. The results showed that comparison variables are importantdeterminants for the subjective measure of well-being, and attitudinalvariables are important for the objective measure of well-being. The economicvariables were important in both functions. The findings of this paper confirmother research findings showing that personal income is important for well-beingin a poor community. The difference between these functions indicates that thesubjective and objective measures of well-being both capture valuablecharacteristics of subjective well-being (SWB) in a poor community.
Determining The Impact Of Capitalising Long-Term Operating Leases On The Financial Ratios Of The Top 40 JSE-Listed Companies
Authors: De Villiers Rikus R , Middelberg Sanlie L
Published: March 2016

Operating leases forma great part of companies financing structures in todays economicenvironment. Some accounting standard-setters and other users of financialstatements are of the opinion that the current standard on accounting foroperating leases, IAS 17, does not provide sufficient guidelines on the disclosureof a companys leasing activities. The current accounting standard on leasesprovides companies with the opportunity to classify lease contracts intodifferent classes which leads to off-balance-sheet financing. This problem iscurrently being addressed by the IASB as they are in the process of developingan improved standard on leases.The main focus ofthis paper is to determine the impact of the improved accounting standard onthe financial statements and the resulting financial ratios of theJSETop40 companies when operating leases are accounted for ason-balance-sheet debt. The differences between the current IAS 17 and theExposure draft (ED/2010/9) are identified and the comparison indicatessignificant differences between these two approaches on accounting foroperating lease activities.The focus of the IASBin developing this exposure draft was to provide the users of financialstatements with a universal picture of the leasing activities that the companyis engaged in. The findings include that this objective is achieved as usersare not left uninformed about any of the financing activities that stakeholdersare exposed to if indeed a company is engaged in operating lease activities.The study also revealed that the capitalising of long-term operating leaseswill have a significant effect on the key financial ratios that stakeholdersuse to interpret a companys financial performance.
Employee Stock Options Or Tax Nightmares
Authors: Kiani Raj , Call Dwight , Sangeladji M.
Published: March 2016

In the past several years, many companies, especially in the high-tech, have used incentive stock options as effective means of attracting and maintaining highly qualified employees. With properly designed employees stock options, companies have been able to compensate highly paid executives with a little or no cash out flow. Accepting stock options in lieu of cash compensation has allowed employees to postpone tax on their compensations and to convert the ordinary income to the capital gain income through a later exercise and the sales of their stock options. These benefits can be achieved, if companies set up the stock options properly and employees apply them correctly. Otherwise, employees may get stuck in incentive stock option tax traps depending on the type of stock options. One tax trap related to the Incentive Stock Option (ISO) is a danger of an Alternative Minimum Tax (AMT). The tax trap related to Nonqualified Stock Option (NQSO) is the possibility of a phantom profit. This profit, even though the stock may not have been sold yet by the employees, must be reported by employer to the Internal Revenue Service through employees W-2 form in the year the options are granted or exercised, depending on the prevailing situation. Employees, who exercise this type of options and keep the purchased stocks, may risk watching the stock price decline but still having to pay taxes based on their paper profit.
Impact Of Stock Options On Quarterly EPS: A Proposal For Change
Authors: Best Ron , Rue Joseph C. , Volkan Ara
Published: March 2016

The purpose of this paper is to: 1) explore the annual and quarterly economic impact of FAS 123 on a group of S&P 100 firms; 2) propose changes in the measurement and disclosure rules of FAS 123; and 3) determine the annual and quarterly economic impact of these proposed changes on the same group of S&P 100 firms. While both FAS 123 and dynamic option expense measurement approaches have material economic impact and reduce the EPS amounts reported under APBO 25 rules approximately 16 percent or more, no statistically significant differences are found between the results of these two approaches in any year 2000 quarters. However, when the sample is split into two groups based on negative and positive quarterly returns, the differences between the results of the two methods are statistically significant for seven of eight quarterly observations. Compared to the static (FAS 123) measurement approach, the dynamic (quarterly recalculated) approach results in lower option expenses and higher EPS values for firms with declining stock prices and higher option expenses and lower EPS values for firms with increasing stock prices. Thus, the dynamic measurement approach proposed in this paper more faithfully represents the economic reality of individual firms.
Clark Kokich And Stone Beach: An Entrepreneurial Venture
Authors: Kierulff Herbert E.
Published: March 2016

Clark Kokich is an entrepreneur who raised over $2 million from angel investors to launch a company that manufactured and retailed custom womens swimsuits. The Stone Beach Case is the story of the venture, including an introduction and the business plan. An instructors guide developed by the case writer is also available. This article reviews the case and the instructors guide, and explains how to obtain a copy that may be used in the classroom.The case has two major aspects that make it a useful teaching vehicle. First, the complete business plan (except for some lengthy details of a telephone survey) is included and can be critiqued by students for completeness, clarity, extent and type of risks, and feasibility. Second, after Clark quit his job to pursue the venture and was unable to raise sufficient start-up funds over a three month period, he was presented with an offer to return to work for his former manager, who was a division president of AT&T at that time. But the offer had a deadline: just a few days. Clark had three options: (1) keep going; (2) take the job; or (3) pursue another venture. Examination of these options provokes lively class discussions.
A Comparative Survey Of Capital Investment Decision Practices In The United States And The United Kingdom
Authors: Klammer Thomas , Wilner Neil , Smolarski Jan
Published: March 2016

Capital expenditures can be crucial to firms long-term success, especially in a complex global environment. As companies increasingly compete in the global market place, it is important to study project evaluation processes from an international perspective. Capital investments involve substantial monetary commitments and risks that affect long-term firm profitability and influence capital allocation decisions in the future. Survey research in the area of capital expenditure analysis has been extensively done in both the United States [US] and the United Kingdom [UK]. This research is the first comparative survey of practices in both countries that we are aware of. A direct comparison of the use of project evaluation, management science, and risk management techniques in the two countries is made. The survey instrument used is an adaptation of the Klammer [1970] instrument that has been used repeatedly in surveys of American firms. This is the first time that it has been applied to British firms. The use of a common instrument allows for more meaningful comparisons. The samples consisted of 127 American and 59 British firms with sales of at least $100 million and capital expenditures of at least $10 million. Preliminary results indicate a continued extensive use of discounted cash flow techniques by US firms. Techniques such as payback or urgency continue to be used, but to a lesser degree than discounting. Firms in the UK also make extensive use of discounting but do so to a lesser degree than their American counterparts. Payback is widely used in the UK. Risk management techniques are widely used in both countries, with sensitivity analysis being the most popular technique in both countries. Extensive use of technical and administrative procedures, such as detailed budgets, standardized forms and post-audits, are evidenced in both countries. The paper offers reasons that have to do with organizational structure and form, as well as market differences, to explain our results.
Retail Consolidation And The Price Elasticity Of Demand For Books
Authors: Webster Thomas J.
Published: March 2016

This paper estimates a translogarithmic utility function to derive price elasticities of demand for nine categories of books published for the period 1975 to 1996. In general, more popular categories of books, such as adult fiction and non-fiction hardcover and paperbound publications, tended on average to have higher price elasticities of demand, suggesting lower retail margins than more specialized categories, such as professional books and mail order specialty items. This study also briefly examines increased consolidation and concentration in the retail book industry. While increases in oligopsony power suggests larger publisher to retailer discounts, price elasticity estimates indicate that retail margins were generally virtually unaffected during the period considered. One possible explanation is that increases in retailer profits were at the expense of publishers, which augur further concentration in the retail book industry.
The International Regulation Of Maternity Leave: Leave Duration, Predictability, And Employer-Co-financed Maternity Pay
Authors: Alewell Dorothea , Pull Kerstin
Published: March 2016

Provisions for maternity leave are common among industrialized countries, but their institutional design varies distinctly from country to country. In this paper we analyze the costs of maternity leave legislation in the US, Germany, Denmark and the UK by comparing the legal provisions on leave durations and on employer-co-financed maternity pay. We argue that the costs of re-organization in response to maternity leave will not simply increase with its duration, but will instead be hump-shaped displaying a maximum at medium-leave durations. More than its expected duration, however, the predictability of leave duration will influence the costs of re-organization. Employer co-financed maternity pay further adds to these costs. Following our theoretical analysis, we review the existing empirical literature on maternity leave: While existing surveys among employers and working mothers are in line with our theoretical considerations, the mixed evidence presented in the existing econometric studies concerning the effect of leave duration on female wages and labor force participation may result from having excluded the issue of predictability of leave duration as well as the question of co-financed maternity pay. We close with (tentative) conclusions for the design of maternity leave provisions, which are currently being discussed and revised in many countries around the world.
Four Platforms For Teaching Online Discussed: NOVA Southeastern University, University Of Maryland University College, Strayer University, And The University Of Phoenix
Authors: Ehoff Clem , Helmi Dahli Gray , Duangploy Orapin
Published: March 2016

Teaching online is a growing phenomenon with challenges and differences that need to be discussed. This paper addresses selected challenges and differences. The paper is based on selected literature and the authors experience and expertise in teaching online. The four platforms compared are those used by the University of Phoenix, the University of Maryland University College, Strayer University, and NOVA Southeastern University. Comparing the programs revealed definite differences. Areas compared include the following: application process, interview process, technology training, mentoring, course length, class size, teaching location, teaching styles, exam process, team teaching and learning, syllabi, and other issues.
Corporate Social Responsibility, Corporate Social Performance & Sustainable Stakeholder Accounting
Authors: Sherman W. Richard
Published: March 2016

Disclosures of a corporations socially responsible (CSR) activities and measurement of its per-formance in those activities are uneven, inconsistent, and incomparable. Given the absence of re-porting standards, this is not surprising. This paper explores ways to "account for" CSR and presents an example of sustainable stakeholder accounting that can be used to integrate corpo-rate social performance (CSP) into the financial statements which provide information for so many economic decisions. It suggests how the development of indices of social responsibility may facilitate analysis of a company's performance by quantifying and objectifying what is clearly a value-laden area. However, this will only be possible if current accounting standards are modified. Indeed, one of the primary objectives of this paper is to advocate changes in current accounting reporting practices so that a various aspects of CSR/CSP are made more transparent and can be more objectively assessed by the stakeholders who are impacted. To accomplish this, the form and substance of these disclosures must have bottom line meaning and these disclosures should be mandated by accounting and securities regulations, not left to the discretion of individual companies.
Conditions Of Polish Industry Innovativeness
Authors: Mazurkiewicz Adam , Sitkowska Rozalia , Trzos Magdalena
Published: March 2016

One of the measures of Polish economy development, including its innovativeness and competitiveness is the level of gross domestic expenditures on research and development activity, so called GERD in relation to gross domestic product, i.e. GDP. Poland assigns for R&D one tenth of expenditures, which are assigned by countries with the highest index GERD/GDP: USA and Japan. Scientific and research-development units in our country are characterised by a relatively low level of investment expenditures. As a result, small rebuild scientific-research apparatus and high level of its wear occur. The level of expenditures on R&D per capita in Poland and small share of industry in financing research are reasons of still unsatisfactory pace of decreasing the distance between Poland and well - developed countries (including the EU countries). Lack of mechanisms encouraging industry to greater participation in expenditures on R&D destimulates innovativeness and competitiveness of economy. The paper presents indexes characterising the innovative potential of Polish economy against the background of selected countries. It analyses positive aspects and barriers of innovativeness growth. These problems make a subject of many years research and analyses carried out by authors presented among others in works [1], [2]. The paper described some trends and conditions occurring in Polish economy undergoing transformation. It presents an example of using a method of artificial neural networks in modelling innovativeness in industry on an example of the innovation intensity index. Research method proposed by authors, carried out with the use of a method of artificial neural networks confirm that positive trends concerning Polish industry innovativeness in the first years of the XXI century are maintained.