bluuebunny/crossref_metadata_2025 huggingface dataset:
The Moderating Effect Of Product Market Competition In The Relationship Between Advertising Expenditures And Sales
Authors: Kim Yura , Joo Jaewoo
Published: February 2016

While the relationship between advertising expenditures and sales has been much discussed, whether product market competition affects their relationship has been little examined. We address this question by analyzing the financial performance data of 6,018 companies for 14 years (1997-2011). Our data analysis supports two hypotheses that (1) increasing advertising expenditures increase sales in the subsequent year and that (2) this effect is stronger when the product market competition is high than when it is low. Our findings advance the academic understanding of advertising effect as well as provide practical implications to advertising managers.
Financial Reporting Quality And Acquisition Profitability: Evidence From Korea
Authors: Yoo Youngtae , Lim Joohyun , Chang Jinho
Published: February 2016

In this paper, we examine the association between financial reporting quality and acquisition profitability in a sample of 282 acquisitions in South Korea between 2001 and 2011. Using the accruals quality measure developed by Dechow and Dichev (2002) and McNichols (2002), we find that firms with high-quality financial reporting make more profitable acquisitions, as measured by the bidder's announcement returns. In addition, we find that the importance of financial reporting quality increases in firms with poor information environments.
The Relationship Between Individual Stock Trading And Returns: The Case Of An Emerging Market
Authors: Khani Abdollah , Saeedi Ali , Khorasani Asieh Khadem
Published: February 2016

This research investigates the relationship between stock trading of individual investors and returns in short horizon in an emerging market. The results indicate that the individuals would like to invest in stocks after declining in the preceding month prices and they would like to sell after increasing in prices. Moreover, we find that there are positive abnormal returns in the month after high buying by individuals and there are negative abnormal returns following high individuals selling. The result is consistent with the literature that the individuals play roles of liquidity providers because they can meet the institutional need of immediacy.
The Impact Of Index Migrations On Share Prices: Evidence From The Johannesburg Stock Exchange
Authors: Kruger Ryan , Toerien Francois
Published: February 2016

This article examines the quantum and persistence of abnormal returns (positive and negative) for shares that entered or left the JSE Top 40 Index during quarterly index rebalancing between 2002 and 2013. Using an event study methodology based on the market model, we find evidence of anticipatory trading for both deletions and additions, which is, however, significant only for the former. These abnormal returns are reversed over our window period, which supports international studies indicating downward sloping share demand curves. Our findings imply informational inefficiencies that investors could use to trade profitably in anticipation of index additions or deletions.
Equity-Based Compensation For Outside Directors And Cost Of Equity Capital
Authors: Hwang Induck , Kim Hyungtae , Pae Sangshin
Published: February 2016

This study provides evidence on the association between equity-based compensation for outside directors and the implied cost of equity capital. Based on the premise that equity-based compensation for outside directors better aligns the interests of the directors with those of shareholders, we investigate whether the more equity-based compensation is granted to outside directors, the lower cost of equity capital firms enjoy. We find a negative relationship between the proportion of equity-based compensation to total compensation for outside directors and the cost of equity capital. Our findings suggest that equity-based compensation for outside directors, by motivating the directors to play their monitoring role more faithfully, reduces agency risks resulting in the lower cost of equity capital.
An Alternative Method Of Accounting For Stock Options
Authors: Smith Thomas , Valencia Adrian , Volkan Ara
Published: February 2016

Currently, the grant date fair value of employee stock options is expensed over the vesting period. Our study introduces a new valuation approach for stock options and examines the impact of this change on earning per share (EPS) for a sample of firms over the period 2002-2011. The new valuation approach provides data useful to the Financial Accounting Standards Board (FASB) as it determines whether to revise the current option accounting rules. Under the proposed approach, options are valued at their intrinsic value on the grant date (i.e., the opportunity cost or the economic promise associated with the difference between the exercise price of the option and the market price of the stock at each measurement date) and further revalued each reporting date until the options are exercised.
Accounting Compensation Modeling Using The Analytic Hierarchy Process Supporting The Sarbanes-Oxley Act
Authors: Knott Cynthia L. , Steube G.
Published: February 2016

The Sarbanes-Oxley Act (SOA) of 2002 included a wide range of reforms for issuers of publicly traded securities, auditors, corporate board members, and lawyers. It was aimed at deterring and punishing corporate and accounting fraud with severe penalties for wrongdoers, and protecting the interests of workers and shareholders. The SOA along with the economic downturn of 2008 and the subsequent passing of the Dodd-Frank Act has focused additional attention to executive compensation especially for CEOs. This paper proposes that the Analytic Hierarchy Process (AHP) may be useful in developing input to compensation contracts in ways that support regulations and the interests of investors and stockholders. AHP is suggested as a framework to explore when considering the factors that can be used to measure the performance of a CEO. Seven reasons for using AHP for this purpose are presented in this report: (1) emphasizes objectivity and consistency, (2) creates an audit trail for compensation agreements, (3) improves understanding between CEOs and compensation committees, (4) supports review and updating CEO compensation contracts, (5) augments CEO selection, (6) supports SOA and Dodd-Frank Act, and (7) may attract investors.
Testing Weak-Form Market Efficiency On The TSX
Authors: Shiller Ilona , Radikoko Ishmael
Published: February 2016

This study tests the validity of the weak-form EMH on the Canadian TSX equity market using seven TSX daily index returns. Quantitatively, a variety of statistical tests is used to test for the randomness of return series. Results of the common statistical (i.e., the autocorrelation, the BG, the runs) tests all suggest that returns are serially correlated, except returns on the TSX 60 capped index. After rejecting the RWM of TSX indices using univariate unit root (i.e., ADF, PP, KPSS), we proceed to test for the possibility of nonlinear dynamic patterns present in return series. BDS results reject an IID underlying residual series after fitting AR(2) to TSX daily index returns, indicating that a deterministic chaotic process describes the data well. This finding of a temporal dependency is supported also by results of the R/S analysis, which indicates that all TSX index returns possess long-memory properties of an anti-persistent trend-reversing behaviour with two indices showing stronger degree of anti-correlation and five indices showing weaker degree of anti-correlation. Overall, results uniformly reject the RWM governing TSX equity index returns, implying that the Canadian equity market is weak-form inefficient.
Family Businesses And Corporate Social Responsibility (CSR) Orientation: A Study Of Moroccan Family Firms
Authors: Elbaz Jamal , Laguir Issam
Published: February 2016

Several researchers have reported that family firms tend to show a CSR orientation in their activities which might increase their performance (Chrisman et al., 2005; O'Boyle et al., 2010).

In Morocco, many studies have focused on the integration of CSR principles into businesses without highlighting the impact of family structure on the adoption of CSR. Therefore, the objective of this study was to determine whether the family structure of Moroccan companies influences CSR adoption and how it affects financial performance. We used a framework combining stakeholder theory, legitimacy theory and stewardship theory and investigated the linkage between family structure, CSR orientation and financial performance. Our results show that family structure positively influences the CSR orientation of Moroccan family firms and thus enhances their financial performance. Although this trend is recent in Morocco, our exploratory research on CSR in Moroccan family firms is a first step toward establishing a model to explain this phenomenon in developing countries.
Firm Performance And Emerging Economies
Authors: Rehman Ramiz Ur , Zhang Junrui , Ali Rizwan
Published: February 2016

The study explores the relationship between firm performance, macro-economic variables, and firm size. The analysis was conducted over a period of 12 years, for seven non-financial sectors of Pakistan economy, considering an emerging economy. The analysis was conducted stepwise. First estimation of models considering all co-efficient constant across time and individuals (Sector) was conducted. Secondly, to know the significant difference among the sectors with respect to firm size, return on assets, and earnings per share, we applied LSDV model and kept sectors constant. Lastly, we analyzed the time influence. The results of the study indicate that the size and performance of firms both depend upon financial ratios and macroeconomic variables included in the study. There is significant difference in terms of size and performance between all sectors. There is significant difference in terms of size and performance when measured between 2008 to 2010 and before.
The Effect Of South African Dividend And Capital Gains Taxes On Share Prices And Investor Expected Returns
Authors: Toerien Francois , Marcus Matthew
Published: February 2016

We examine the effect of South African taxes, specifically the secondary tax on companies (STC) and the dividends tax (DT) that replaced it, as well as capital gains tax (CGT), on investor measures of expected return and firm value. The discussion, findings, and models presented in this study are entirely original in the field of South African corporate finance research. We model the relationship between STC, CGT, and expected return and use this relationship to formulate an hypothesis of the expected behaviour of ex-ante measures of implied cost of capital for a sample of listed South African companies. We calculate these measures by formulating a unique South African version of the residual income valuation model (RIVM) and then regress derived measures of the implied equity premium on historical measures of dividend yield, ultimately concluding that investors appear to recognise the net tax benefit of dividends and capitalise this benefit into stock prices. Finally, we examine the expected position of each of these areas in light of the proposed shareholder dividend tax regime.
Commodity Price Correlation And Time Varying Hedge Ratios
Authors: Lahiani Amine , Guesmi Khaled
Published: February 2016

This paper examines the price volatility and hedging behavior of commodity futures indices and stock market indices. We investigate the weekly hedging strategies generated by return-based and range-based asymmetric dynamic conditional correlation (DCC) processes. The hedging performances of short and long hedgers are estimated with a semi-variance, low partial moment and conditional value-at-risk. The empirical results show that range-based DCC model outperforms return-based DCC model for most cases.
The Effect Of Probability And Uncertainty Models On Hedge Fund Performance Analysis
Authors: Mwamba John Muteba
Published: February 2016

This paper implements two types of framework to investigate the outperformance, selectivity, and market timing skills in hedge funds: uncertainty and probability. Using the uncertainty framework, the paper develops an uncertain fuzzy credibility regression model in the form of a linear and quadratic CAPM in order to estimate these performance skills. Using the probability framework the paper implements frequentist and Bayesian CAPMs (linear and quadratic) to estimate the same performance skills. We consider a data set of monthly investment style indices published by Hedge Fund Research group. The data set extends from January 1995 to June 2010. We divide this sample period into four overlapping sub-sample periods that contain different market trends. Using the probability framework, our results show that bounded rationality triggers inefficiencies in the market that fund managers can utilise to outperform the market. This market outperformance is due to selectivity and market timing skill during periods of economic recovery only. We admit that these results contradict the rational expectations model. However, with the uncertainty framework this effect disappears on behalf of the rational expectations model and the efficient market hypothesis. This disappearance may be a result of the increased amount of high frequency trading witnessed recently that has made market inefficiencies, which are the main source of hedge fund performance, rarer.
Employee Ownership And Corporate Governance: Evidence From The French Market
Authors: Noamene Tarek Ben
Published: February 2016

This paper's objective is to study the issue of employee ownership in the context of corporate governance. We show first that the literature is controversial on the role that employees-shareholders may play in the corporate governance system and consequently in value creation. In a second step, we empirically analyse the performance of a sample of companies from the index SBF 250. Our results show a negative relationship between the presence of employee shareholders in the control bodies (board of director or board of trustees) and financial performance indicators.
The Future Of Master Limited Partnerships
Authors: Beauchamp Charles F.
Published: February 2016

Master limited partnerships have grown in size, number, and economic importance over the past fifteen years. They now represent a stable and healthy component of many investment portfolios. MLPs have generated impressive risk-adjusted performance compared to that of other equity investments. This performance is the result of their fee-based, low risk business structure that produces a steady cash distribution to investors. The future to these traditional MLPs and similar new entrants is quite positive. However, new entrants that potentially deviate from this successful operating structure are entering the MLP market. This raises major questions regarding the sustainability of these firms as MLPs. This study examines the future of MLP markets within the context of traditional and non-traditional new entrants. Furthermore, the emergence of institutional investors on MLP markets is discussed.
The Effects Of Technology Readiness And Technology Acceptance On Nfc Mobile Payment Services In Korea
Authors: Shin Seungjae , Lee Won-jun
Published: February 2016

The Near Field Communication (NFC) mobile payment is the integration of NFC enabled smartphones and credit/debit/prepaid cards. Korea is a pioneer in rolling out the NFC mobile payment. Global mobile industries pay attention to whether Korean mobile users accept the new payment service. This study investigates the factors for technology acceptance using an integrated model of technology readiness and technology acceptance. Structured equation modeling is used to analyze the collected data. The four constructs of technology readiness (innovativeness, optimism, discomfort, and insecurity) have significant impact on the perceived ease of use and the two technological characteristics of NFC mobile payment (responsiveness and smartness) also have significant impacts on the perceived usefulness. However, only the perceived usefulness affects significantly on the intention to use. The perceived ease of use affects indirectly on the intention to use through the perceived usefulness. The result of this study suggests that to be a successful payment service, the NFC mobile payment service has to be much more focused on the usefulness against other alternative payment methods.
State Control, Marketization, And Firm Value: Evidence From China
Authors: Su Kun , Wan Rui
Published: February 2016

Using a firm-level panel data of Chinese listed firms, this paper examines the effects of state control on firm value and the different impacts that have under different degree of marketization deeply. The results show: compared with non-state controlled firms, state controlled firms are imposed by much policy burden and have more serious tunneling or expropriation behaviors. Therefore, firm values in state controlled firms are lower than in non-state controlled firms. For state controlled firms, the lower the government administrative ranks, the more serious the intervention or expropriation behaviors imposed by government, and thus the lower the firm value. Compared with low marketization regions, the negative effects of state control and low government administrative rank control on firm value is relatively smaller in regions with high degree of marketization.
Inventory Changes With Information Asymmetry And Informed Trading Patterns In The Korean Stock Market
Authors: Pyo Gyungmin , Chung Yerim
Published: February 2016

In this paper, we examine how inventory changes are related to the trading patterns of foreign and institutional investors, especially in firms with information asymmetry. Prior researchers report that inventory changes could be associated with firm performance, earnings management, stock returns, and incentive contracts. In this study, we focus on the relationship between trading patterns of informed traders and changes in inventory, testing how inventory changes are associated with the investment decision-making of informed traders. After controlling for firm-specific factors, we find a significant relationship between changes in inventory and trading patterns of institutional and foreign investors. Under conditions of high information asymmetry, the negative relation between institutional trading and inventory changes is enhanced. However, the amounts invested by foreign traders are negatively associated with increases in inventory even in firms with low information asymmetry. We infer that foreign traders exhibit more conservative trading patterns than institutional investors.
Understanding The Organisational Buyer Behaviour Of Craft Retailers In South Africa
Authors: Makhitha K.M
Published: February 2016

The purpose of the study was to investigate the buyer behaviour of craft retailers in South Africa (SA). Specifically, the study investigated the stages in the buying process craft retailers go through when buying crafts from the craft producers. Craft retailers play a dominant role in the craft industry value chain yet craft producers face difficulties selling to this market. Instead, they resort to selling directly to end consumers and not through craft retailers. An understanding of craft retailer and buyer behaviour is a necessity for craft producers who want to sell their products successfully through the craft retailers. A survey was conducted among 233 craft retailers in SA. A convenience sampling method was adopted for the study. The findings revealed that craft retailers go through homogenous buying stages. The stages in the buying process did not differ across different types of craft retailers. The stages also did not differ according to the years of buying experience of craft retailers. An understanding of buyer behaviour of craft retailers would be necessary for craft producers who want to target craft retailers, since they (craft producers) will be able to formulate appropriate and effective marketing strategies targeted at craft retailers. Craft retailers go through a lengthy process when buying crafts. Craft producers, therefore, need to understand the stages that craft retailers go through to ensure that the understanding is incorporated into their marketing strategy.
Establishing The Relative Competitiveness Of South African Banking Shares: A Kalman Filter Approach
Authors: Van Heerden Chris , Van Vuuren Gary
Published: February 2016

It is argued that the Basel III Accord will undermine the ROE of South African banks, and with the downgrading of South African banks during August 2014, will force investors to revaluate South African banking shares as attractive investment options. However, results from the Sharpe and Omega ratios, based on returns forecast using the Kalman filter, accentuate the likelihood that the South African industry can still be expected to be a competitive and feasible investment option after the downgrade. Evidence suggests that Capitec Bank Holdings Limited and Standard Bank Group Limited will perform the worst of all the South African banks, whereas FirstRand Limited, Investec Limited, and Barclays African Group will exhibit more promise in the future, outperforming world indices, such as the DAX, FTSE 100 and the S&P 500.
Comparing Outgoing Female CEOs With Prior CEO Experience To Outgoing Female CEOs With No Prior CEO Experience
Authors: Elsaid Eahab
Published: February 2016

It is difficult for females to climb the corporate ladder to the CEO position. Most of the previous research examines the obstacles that prevent females from reaching top management positions and ultimately the top position of CEO. In this study we examine this issue from the opposite side, i.e., we examine CEO successions were the outgoing CEO is female and the incoming CEO is male. We distinguish between outgoing female CEO successors who have prior CEO experience and those who do not have prior CEO experience. We find that prior CEO experience is positively related to the outgoing female CEO total compensation in the year preceding the succession, positively related to firm performance and negatively related to the probability of firm bankruptcy in the three years preceding the succession. Prior CEO experience is also positively related to the percentage of female and ethnic minority directors on the board in the two years preceding the succession.
On The Longevity Risk Assessment Under Solvency II
Authors: Ben Salah Sana , Belkacem Lotfi
Published: February 2016

This paper deals with the longevity risk assessment within the Solvency II framework. We propose a methodology allowing obtaining longevity shocks specified by gender, age and maturity. These shocks, which are calibrated on experience mortality data relative to a French insurance company, are proved to be far away from that assumed in the standard formula and the resulting solvency capital requirement (SCR) leads to significant capital savings as compared to the standard approach.
The Impact of Media Independence On Firm Performance: A Panel Data Analysis From Emerging Markets
Authors: Farooq Omar , Rbiha Mounia , Aguenaou Samir
Published: February 2016

Can media have any influence on firm performance? Do firms in countries with more independent media perform better than firms with less independent media? This paper seeks to answer these questions by documenting the relationship between media independence and firm performance in emerging markets. Using a dataset from twenty seven emerging markets, we show significantly better performance of firms headquartered in countries with relatively more independent media than firms headquartered in countries with relatively less independent media during the period between 2007 and 2011. We argue that independent media reduces information asymmetries for stock market participants. Consequently, it is more difficult for managers to expropriate, thereby improving performance of firms. Our results indicate that media can play a substitute role for traditional governance mechanisms in emerging markets.
The Mediating Role of Popularity Rank on the Relationship between Advertising and In-app Purchase Sales in Mobile Application Market
Authors: Oh Yun Kyung , Min Jihong
Published: February 2016

In the booming industry of mobile application, a new business model has arisen as a lucrative way of monetization, which is characterized by scaling up user base via free distribution and following partial monetization. As a result, popularity rank and in-app purchase revenue are increasingly emphasized. In this context, understanding the relation among popularity rank, in-app purchase sales, and advertising is essential to optimal marketing decisions. For this purpose, this research investigates how advertising influences in-app purchase sales via popularity rank. Through our empirical analysis of a mobile game data collected on a daily basis, we show advertising expenditure not only improves popularity rank, but also increases in-app purchase sales. In addition, we demonstrate that mobile advertising effect on in-app purchase sales is fully mediated by popularity rank.
The Investment Efficiency Of Private And Public Firms: Evidence From Korea
Authors: Kim Keehwan , Kwon Ohjin
Published: February 2016

This study examines the investment efficiency of private and public firms in Korea. Prior studies suggest that the investment efficiency of firms can change according to the companies' agency problem caused by the existence of information asymmetry. Moreover, they argue that there is less information asymmetry in private firms than in public firms, because the major investors of private firms have access to the internal information of the companies. We extend these studies by comparing the investment efficiency of private and public firms using an extended audited financial dataset of Korean firms. Our results show that the investment efficiency of private firms is higher than that of public firms, because the agency problem of the former is lower than that of the latter. Additionally, private firms invest more efficiently in R&D and capital expenditures than public firms. Further, when we use alternative exogenous firm-specific proxies to measure the likelihood of over or under-investment, the results are substantially consistent with the main results. Finally, we re-test our hypotheses by including financial reporting quality proxies as control variables in the main regression model. These investigations further support our main results. Our study contributes to emerging literature on the difference between private and public firms by showing that the investment efficiency of the former is different from that of the latter. In addition, this study provides additional evidence on the agency problem that affects firms' investment decisions.
Focusing The Mediating Role Of Knowledge Management Practices: How Does Institutional And Interpersonal Trust Support Exploitative And Exploratory Innovation?
Authors: Berraies Sarra , Achour Maha , Chaher Mehrez
Published: February 2016

The purpose of this paper is to investigate the influence of both institutional and interpersonal trust on innovation and deepens the analysis by exploring the mediating role of knowledge management (KM) practices in this relationship. Conceptually, this reflection leads to the proposal of a conceptual model summarizing the relationships between the research variables. This model was tested with 226 senior officials in companies operating in the information and communication technologies (ICT) Tunisian sector on the basis of a structured questionnaire. The collected data were treated by structural equation analysis using AMOS software. The results of the empirical study highlighted the significant relationship between interpersonal trust and innovation and confirmed that KM practices act as partial mediators in this relationship. Findings show also that institutional trust is not correlated to KM practices and to innovation.
Virtual R&D Project Teams: From E-Leadership To Performance
Authors: Bonet Fernandez Dominique Bonet , Jawadi Nabila
Published: February 2016

Recent research on virtual teams highlights the importance of high quality relationships to achieve high team performance. For research and development (R&D) virtual project teams, relationships characterized by cooperation and trust are expected to enhance creativity and innovation among team members. The purpose of this paper is to identify variables enabling high quality relationship building in virtual R&D teams and to analyze their influence on team performance. To this end, this study examines the effects of leadership, work organization and communication practices on the quality of the relationship between team members. The theoretical developments are illustrated through a case study of a car development project in a leading French car-making firm, PSA. Our findings show that dynamic and positive leadership plays an important role in enhancing relationships between team members. The results also highlight the importance of synchronous meetings and frequent and regular interaction to build cooperative and trusty relationships leading to high performance.
Credit Spreads And Systematic RiskIn The U.S. Banking Industry - A Neural Network Model Approach
Authors: Anderson Mark A. , Maurer Frantz
Published: February 2016

This paper shows that systematic risk in the U.S. banking industry displayed historical responsiveness to variations in the AAA-Baa credit spread. Critically, through the development of a series of single hidden layer perceptron neural network models, the principal credit spreads in the fixed income market catalyzed a defined regime shift in systematic risk proximate the financial crisis, and was more influential to the quantification of realized systematic risk than the statistical specifications of beta. As an intriguing result of the learned model simulations, the beta slope coefficients for the largest banks in the study exhibited significant acceleration in the statistical dependence on credit spread variations.
Commonality In Liquidity: Lessons From An Emerging Stock Market
Authors: Tissaoui Kais , Ftiti Zied , Aloui Chaker
Published: February 2016

This study investigates commonality in liquidity in Tunisia, an order-driven, emerging stock market. We analyze the impact of information flow on the relationship between market liquidity and liquidity of securities, in addition to firm size and industry determinants. The effect of liquidity commonality on the liquidity of securities depends on firm size. The effect of market-wide commonality on liquidity is found to be stronger than that of industry-wide commonality. Our results show that public and private information flows improve liquidity. Systematic trading volume dominates systematic order imbalance in explaining liquidity; however, this effect is lesser compared to that of market liquidity.
Earnings Persistence Over The Macroeconomic Cycle: Evidence From Korea
Authors: Park Sorah , Shin Heejeong
Published: February 2016

This paper examines whether the persistence of earnings components is affected by the macroeconomic cycle in Korea. To measure the macroeconomic cycle, we use the cycle variation value of Coincident Composite Index (CCI) data obtained from the Korea National Statistics Office. Results from a sample of 21,232 firm-quarter observations over the period 2002-2013 indicate that accruals (cash flows) are more persistent than cash flows (accruals) during expansions (recessions). Also, when going from an expansion to a recession, a decline in accruals persistence is greater than that in cash flows persistence. When total accruals are decomposed into non-discretionary and discretionary portions using the modified Jones model (Dechow et al., 1995), we find that non-discretionary accruals are most persistent than the other components during both expansions and recessions, and a decline in persistence is largest (smallest) for discretionary accruals (cash flows) when going from an expansion to a recession. Most of these results hold when we split the macroeconomic cycle into four phases including transitory periods. Taken together, we provide evidence on the differential effects of macroeconomic cycle on the persistence of individual earnings components in Korea. Our findings suggest that macroeconomic variables are needed to be considered in studies on earnings persistence.
Is CSR Really Profitable? Evidence From Korea
Authors: Cho Eunho , Park Hayeon
Published: February 2016

We empirically investigate whether corporate social responsibility (CSR) is really profitable in Korea. Specifically, we examine whether a potential measurement problem of CSR score measured by KEJI (Korea Economic Justice Institute) index affects the relationship between CSR and corporate financial performance (CFP). The empirical results regarding the relationship between CSR and CFP in prior studies have been inconsistent. Although some studies (e.g. Waddock & Graves, 1997) point out that the potential measurement problem of CSR score is likely to be an important factor to resolve the issue of mixed results, CSR measurement problem to date draws little attention from researchers particularly in Korea setting. We suspect that prior studies that report positive relationship between CSR and CFP using KEJI index is biased upward due to potential measurement problem of KEJI index that includes operating performance component. To examine this issue, we employ an adjusted CSR score which excludes operating performance component included in the unadjusted CSR score to mitigate measurement problem that can show a positive upward bias in the relationship between CSR and CFP in the prior studies.We employ the sample data of 1,301 firm-year observations of manufacturing firms listed in Korea Stock Price Index (KOSPI) market during 2005-2010. Using adjusted CSR score, we find that the positive CSR-CFP relationship significantly weakens compared to unadjusted CSR score. This result remains robust after we perform various sensitivity tests. This study suggests that CSR measurements problem is likely to distort the relationship between CSR and CFP in Korea setting. This study’s main contribution is to provide evidence on the measurement problem of KEJI CSR score in the study on the relationship between CSR and CFP.
Does Zero-leverage Policy Increase Inefficient Investment? - From The Perspective Of Lack Of Bank Creditors
Authors: Huang Zhen , Li Wanli , Gao Weiwei
Published: February 2016

Using a sample of up to 12023 firm-year observations across 2358 individual firms from 2007 to 2013, this paper examines whether zero-leverage policy increases firms’ inefficient investment from the perspective of lack of bank creditors. Due to the lack of bank creditor monitoring, zero-leverage policy leads to more serious information asymmetry and agency problems, which are the two types of frictions that affect investment efficiency. The empirical results show that zero-leverage policy indeed increases inefficient investment. Furthermore, we test whether external monitoring helps to mitigate the effects of zero-leverage policy on inefficient investment. Our findings suggest that the sensitivity between zero-leverage policy and inefficient investment will be lower in firms with strong external monitoring. Overall, the zero-leverage policy seems to be a key determinant of inefficient investment.
Do Multinational And Local Corporations Differ In Their Leverage Policies? Evidence From The MENA Region
Authors: Farooq Omar Farooq
Published: February 2016

This paper examines the leverage policies of multinational corporations (MNCs) in comparison to those of local corporations in the MENA region during the period between 2006 and 2012. Our results show that MNCs have lower leverage levels than local firms. We argue that MNCs have higher information asymmetries than other firms. As a result, managerial opportunism may be higher in these firms, thereby minimizing their ability to raise debt. In case of local firms, we show that their debt ratios are not different from other firms. Furthermore, we also show that our results do not hold for those multinational firms that have lower agency problems. We show that, for a given level of information asymmetries (operational and informational complexity), debt ratios of multinational firms are more than other firms. Our results show no impact of the extent of information asymmetries on debt ratios of local firms. 
Unveiling Special Policy Regime, Judgment And Taylor Rules In Tunisia
Authors: Baaziz Yosra , Labidi Moez Labidi , Atil Ahmed
Published: February 2016

Given limited research on monetary policy rules in revolutionary countries, this paper challenges the suitability of the Taylor rule in characterizing the monetary policy behavior of the Tunisian Central Bank (BCT), especially in turbulent times.

 

More specifically, we investigate the possibility that the Taylor rule should be formulated as a threshold process and examine the validity of such nonlinear Taylor rule as a robust rule for conducting monetary policy in Tunisia.

 

Using quarterly data from 1998:Q4 to 2013:Q4 to analyze the movement of nominal short-term interest rate of the BCT, we find that the nonlinear Taylor rule improves its performance with the advent of special events providing thus a better description of the Tunisian interest rate setting.  In particular, our results show that the adoption of an appropriate nonlinear approach leads to a reduction in the errors of 150 basis points in 1999 and 2009, and 60 basis points in 2011, relative to the linear approach.
InformationTechnology Strategies For Small Businesses
Authors: Lin Binshan , Vassar John A. , Clark Lawrence S.
Published: February 2016

The increasing emphasis on competitiveness in small business has lead to new emphasis on the competitive promise of information technology (IT). This paper discusses the unique characteristics of IT for small business and presents a strategic approach that will effectively integrate all the IT functions into the small business.
Evidence Of Value-Expressive Participation Effects In Budgeting
Authors: Magner Nace , Welker Robert B. , Johnson Gary G.
Published: February 2016

Accounting researchers have defined budgetary participation to encompass employee influence, or control, over budget targets. This view implies that control is a necessary condition for favorable participation effects to occur. This paper presents the results of two field studies that indicate participation can lead to improved employee attitudes even when it does not afford the employees budgetary control.
A Keynes-Robinson Controversy: A Methodological Matter
Authors: Mini Peter V.
Published: February 2016

This paper examines a minor methodological foray by Keynes:  his 1941 reaction to what is now a well-known conclusion of price theory, the so-called “below-capacity theorem” first advanced by Joan Robinson’s 1933 Economics of Imperfect Competition.  By the graphical analysis that has now become universal, the theorem “proves” that any profit-maximizing firm faced with a downward-sloping demand curve will produce to the left of the average cost curve’s lowest point, the difference between this lowest-cost output and the output determined by MC=MR being a measure of excess capacity.  The paper will conclude that Keynes’ denigration of the theorem is wholly due to his different cast of mind, to a methodology that preferred observation and history over deductive methods. 
Family Owned Business Fraud: The Silent Thief
Authors: Bledsoe M. Tony , Wessels Susan B.
Published: February 2016

The ACFE 2002 Report to the Nation on Occupational Fraud and Abuse shows “The per-employee losses from fraud in the smallest businesses are 100 times the amount of their largest counterparts.” Further, major factors contributing to small business fraud include: inadequate employee prescreening; limited controls and too much trust. The focus of the paper is on issues raised by questions such as should family businesses be concerned about fraud and to what extent can control measures be adopted to help reduce losses caused by this condition?  It is an examination of a survey sent to 167 female business owners and their responses to questions about fraud.
Upward Revaluation of Fixed Assets
Authors: Wang Zhemin
Published: February 2016

Under the U.S. GAAP, fixed assets are reported at their book values which are derived by deducting accumulated depreciation from the original cost.  Companies are allowed to write down their fixed assets if the value of the fixed assets is impaired.  Under no circumstances can a company write up its fixed assets even if the market value of these assets exceeds their book value.  However, such upward revaluation is allowed under the International Accounting Standards (IAS).  Specifically, as an allowed alternative, IAS No.16, “Property, Plant & Equipment,” permits fixed assets to be revalued periodically and carried at fair value. Significant controversies currently exist regarding the revaluation provision under IAS No.16.  Critics of IAS No.16 have expressed concerns that revaluation of fixed assets is arbitrary and may be used by management to manipulate reported accounting numbers. To address such concerns, this study empirically assesses the reported fixed assets under IAS No.16.  Based on the data of 113 companies whose consolidated financial statements were prepared using IAS, this study documented significant empirical evidence suggesting that fixed assets reported by sample firms under IAS No. 16 reflect their economic value as perceived by investors.  The findings seem to support the use of IAS in preparation of financial statements for cross-border listing of securities.
Anti-Competitive Practices In The Tourism Industry: The Case Of Small Economies
Authors: Rodriguez A.E. , Murdy James
Published: February 2016

Who benefits from the proliferation of ecolodges, beachfront resorts, safari parks, river cruises, forest forays and other similar and increasingly popular ventures popping up in developing economies across the world? Critics hold that multinational hotel chains, influential tour operators and foreign interests sometimes in association with powerful domestic groups often engage in anticompetitive practices at the expense of local communities, domestic workers and other stakeholders where the tourism activities take place. In this paper, we examine the possibility of market power abuses in the tourism industry in small economies or small national economies.  Many of these small economies have recently inaugurated antitrust enforcement agencies charged with curtailing market power abuses and other anticompetitive practices.  We also examine how effective these agencies are likely to be in challenging the powerful tourism industry. Succinctly, we conclude that monopsonistic practices may arise in the tourism sector of small economies. But we argue that domestic competition agencies are not suited to challenge monopsony for various reasons including a lack of political will.  We also analyze the plausible cartelization role of regional marketing boards.  Regional marketing boards are collaborative efforts by groups of countries.  Because it is entrusted with cross jurisdictional enforcement of competition laws, a “regional” agency with jurisdiction in several countries across a region may be more likely to successfully confront monopsony problems.  However, we conclude that a regional enforcement agency is equally unlikely to successfully challenged cross-border anticompetitive practices because it is not likely to challenge the impairment of consumer welfare of foreign nationals.
To Delegate Or Not To Delegate? That Is The Question Of Pricing Authority
Authors: Yuksel Ulku , Sutton-Brady Catherine
Published: February 2016

The burning issue of delegating pricing authority to the sales force is of interest to marketing academics as well as practitioners in a wide variety of consumer, industrial and institutional marketing situations. There are many studies which examine the decision to delegate ultimate pricing authority (PA) to the sales force. Additionally the marketing literature encompasses many theoretical rationales for giving sales personnel authority to set prices. Conversely there are also empirical research outcomes that debate the opposite scenario, asserting that giving salespeople the highest degree of pricing authority engendered the lowest sales and profit results. It is difficult to find any study which has investigated or explored this issue from the salesperson’s point of view. In this study, we examine the perception of the sales force on the price authority they have been given. Supported by the sales motivation theory, we, specifically, examine the sales force perception of the decentralized (delegated) price authority to them and perceived firm performance.
Teaching Ethics In The Financial Planning Curriculum: A Case Study
Authors: Overton Rosilyn H.
Published: February 2016

A financial planning program should inform about ethical regulations and inspire students to internalize ethical standards so they become trustworthy. This case study discusses one teaching method for engaging student interest.
An Organizational Objective To Incorporate Social Responsibility
Authors: Kennedy Joseph W.
Published: February 2016

Organizational leaders are continuously making decisions and plans that will affect the long-term value of their firms.  Organizational strategic plans without corporate social responsible determinants, such as Enron’s and MCI Worldcom’s accounting policies, affected thousands of employees, stakeholders, and the firm’s overall reputation throughout the world.  I proclaim that corporate social responsibility enhances organizations’ overall competitive strength in their markets.  Thus, a firm who adopts, teaches and creates ethical business practices within the organization’s internal environment and promotes those strategies in their remote environment, through their value chains, will create profitable long-term value for the organization.  Michael Porter’s work of the 1980’s, “Competitive Strategies,” is a method that should be utilized to enhance ethical practices for an organization, through strategic development; however, a research question has emerged.
Strategic Capacity Management With Modular Manufacturing And Outsourcing: A Case Study
Authors: Garcia Ignacio , Venkataraman Ray
Published: February 2016

This paper proposes that downsizing an industrial manufacturer’s capacity is a cost-effective strategy to reduce the cost of conversion while ensuring that adequate capacity is available to meet its business strategy requirements. A case study of a U.S. manufacturer of motors and other mechanical drive systems illustrates a proposed reduction in capacity that utilizes the development and implementation of a cost model to determine the best alternatives for a company whose capacity is not synchronized with its business strategy. The cost model for each alternative is investigated and compared against the ‘Do nothing’ alternative, using net present value and cash flow analysis to build a case for the most effective course of action. The findings show the benefits of merging manufacturing by separating people, non-people, and fixed costs by facility, product line and product. In addition, the paper also illustrates the benefits of modular manufacturing and outsourcing as a way to further improve costs after the reduction of capacity. 