bluuebunny/crossref_metadata_2025 huggingface dataset:
Drivers Creating Shareholder Value In South African Manufacturing Firms
Authors: Hall John H.
Published: February 2016

The objective of this study was to determine shareholder value drivers for South African manufacturing firms listed on the Johannesburg Securities Exchange (JSE) from 2006 to 2010. In order to optimise shareholder value creation, management must be able to recognise value drivers that it can control. A multiple regression analysis was used to identify the value drivers of manufacturing firms in South Africa. The value drivers found to be significant in explaining shareholder value are the cost of goods to sales percentage, the degree of manufacturing leverage, and the capital investment in plant and equipment. Value-based management incorporating these value drivers can guide manufacturing managers toward optimal shareholder value creation.
Do Reconciliations Of Segment Earnings Affect Stock Prices?
Authors: Hollie Dana , Yu Shaokun Carol
Published: February 2016

While SFAS No. 131 is intended to increase the transparency of financial reporting using a management approach, it may reduce shareholders ability to interpret segment disclosures relative to the industry approach employed under SFAS No.14. This study investigates whether segment reconciliation differences affect stock prices and whether abnormal returns can be earned using information about two components of earnings: aggregated segment earnings and segment earnings reconciliations. We compute reconciliations as the difference between firm-level consolidated earnings and aggregated segment-level earnings. Firms that report negative SERs have greater sales and profitability, greater return on equity, as well as more operating cash flows and firm growth. This suggests that firms that report aggregated segment earnings greater than firm-level consolidated earnings may be better off financially. Our findings show that mispricing does occur when firms report positive SERs by the market, underestimating the segment earnings reconciliation component of earnings persistence. Investors can also earn positive abnormal returns when investors take a long (short) position with the portfolio with the highest (lowest) absolute SERs. On the contrary, we find investors earn negative abnormal returns when firms report negative SERs. Collectively, this study provides evidence that mispricing occurs and that investors over/underestimate the importance and/or persistence of segment earnings reconciliations.
IT Impacts On Performance Of Service Firms Through Operation-Level Dynamic Capability
Authors: Lee One-Ki (Daniel) , Xu Peng , Kuilboer Jean-Pierre , Ashrafi Noushin
Published: February 2016

This study focuses on the strategic value of information technologies in the service industry and examines the relationship between information technology (IT) service competence and firm performance. The proposed relationship is further augmented by investigating the mediating role of operation-level dynamic capability particularly for the service setting. Survey data of medium to large-size enterprises in service industries in the United States were used to validate the proposed model. The results indicate that operational reconfigurability as an operation-level dynamic capability is a significant IT-enabled mediating driving force of firm performance in the service setting. This study is an early attempt to examine the strategic value of information technologies to lead to service firms business performance, particularly through the dynamic capability at the operation level.
When Do Organizations Behave Opportunistically? The Effects Of Collectivistic Organizational Culture
Authors: Ryu Sungmin , Jang Woojung , Lee Jukyung , Lee Jong Eun
Published: February 2016

Transaction cost theory posits that firms behave opportunistically if they are given the chance. In reality, however, some firms act opportunistically, whereas others do not. This raises the question of under what circumstances firms tend to behave opportunistically. Previous studies provided no clear explanation of when opportunism occurs and what its antecedents are. This study identifies the circumstances under which firms behave opportunistically by empirically testing the following two causal factors in opportunistic behaviors: transaction-specific investment (TSI) and collectivistic organizational culture. The survey results indicate that a firms TSI is an important factor influencing opportunistic behaviors and that collectivism moderates the relationship between TSI and opportunism.
The Impact Of Inflation On Financial Sector Development: Experience From Zambia
Authors: Odhiambo Nicholas M.
Published: February 2016

This study examines the impact of inflation on financial development in Zambia during the period between 1980 and 2011. The study attempts to answer two critical questions: 1) Is there a long-run relationship between inflation and financial sector development in Zambia? 2) Does inflation in Zambia have any negative effect on financial sector development? The study uses the recently developed ARDL-bounds testing approach to examine this linkage. In order to address the problem of omission of variable bias, the study incorporates other variables, such as government expenditure, trade volume and GDP per capita in the financial development model, alongside inflation thereby, creating a simple multivariate model. Using the domestic credit to the private sector as a proxy for financial development, the study finds that there is a long-run relationship between inflation and financial development in Zambia. The study also finds that there is a distinctively negative relationship between inflation and financial development. The results apply, irrespective of whether the model is estimated in the short run or in the long run.
Activity-Based Costing In Small Manufacturing Firms: South African Study
Authors: Rundora Rosebud , Ziemerink Toekie , Oberholzer Merwe
Published: February 2016

This is an empirical investigation by means of a survey of the experiences and perceptions of activity-based costing (ABC), as an alternative to traditional costing, in small manufacturing firms in the Southern Gauteng region of South Africa. The objectives of the study were to determine the: Extent to which ABC is adopted; Perceptions of the benefits and the barriers of ABC; Experiences regarding the practice of ABC; and Reasons why firms do not adopt ABC. An analysis of 48 questionnaires indicated that 16 firms implemented ABC whilst 32 did not adopt this approach. The study firstly found that the ABC users have been in business significantly longer than the non-users, ABC users firms are significantly larger than the non-users firms, there are some significant differences in the perceptions between the users and non-users regarding the benefits and the barriers of implementing ABC, that the ABC users are to a great extent neutral in respect of the practical issues of ABC and finally, that the non-users of ABC are of the opinion that ABC is too expensive to implement. The contribution of this study is that it fills the gap regarding to the lack of empirical research of ABC in small manufacturing firms and especially the lack of empirical research on ABC in South African firms.
The Association Between Corporate Social Responsibility Activities And Earnings Quality: Evidence From Donations And Voluntary Issuance Of CSR Reports
Authors: Pyo Gyungmin , Lee Ho-Young
Published: February 2016

This paper examines the association between the level of corporate social responsibility (CSR) activities and earnings quality with the level of donation expenses and the voluntary issuance of CSR reports filed with the Global Reporting Initiative (GRI) as proxies for CSR activities. Donation expenditures could be the most direct measure of managers willingness to conduct CSR activities, while the voluntary issuance of CSR reports filed with GRI captures a direct signal of managers willingness to conduct CSR activities. The results of this study provide evidence that firms active in CSR are likely to report earnings of a higher quality. More specifically, after controlling for firm-specific factors, we find that firms with more corporate donations have lower discretionary accruals and greater accounting conservatism. Furthermore, this negative relationship between donation and discretionary accruals is more pronounced when firms voluntarily issue CSR reports. Prior studies have focused on the association between financial performance and CSR activities of firms. However, managerial choices and signals on financial performance with voluntary CSR activities have not been specifically considered. This study adds to the existing literature on CSR by providing evidence of the role of CSR on earnings quality and helps academics and practitioners to understand the role of corporate donations and voluntary CSR disclosures in earnings quality.
The Implementation Of Brand Standards In Franchised Retailing: The Field Of Car Dealerships
Authors: Morisse Benjamin
Published: February 2016

The management of franchisedretailing networks often involves the implementation of brand standardsthroughout the dealership. However, these standards might not be met, whether becauseof the dealers management of its own assets or because of the customer contactstaffs behavior towards clients. This article analyses the dissonance betweenthe brands prescribed standards and staff behavior across retailers for thefield of car retailing. It offers management recommendations designed to bringstaff behavior closer in alignment with brands knowledge.
Financial Performance And Compliance With Basel III Capital Standards: Conventional vs. Islamic Banks
Authors: Al-Hares Osama M. , AbuGhazaleh Naser M. , El-Galfy Ahmed Mohamed
Published: February 2016

This study is a commentary on the financialperformance and quality capital of Islamic versus conventional banks currentlyoperating in the Gulf Cooperation Council (GCC) region. In addition toassessing the financial performance of the full set of banks across various GCCcountries, the study is the first toconsider the extent to which Islamic vs.conventional GCC banks comply with the new Basel III requirements of raising betterquality capital. The study uses bank-level data for 75 (55 conventionaland 20 Islamic) banks in Kuwait, United Arab Emirates, Kingdom of Saudi Arabia,Oman, Qatar, and Bahrain. Financial ratios are used tomeasure and compare Islamic vs. conventional banks performances, and weemploy a comprehensive and the most recent sample of data available in the region, consisting of cross-sections from 2003 to 2011.The results reveal that Islamic banks are, onaverage, less efficient but more profitable, more liquid, more solvent (lessrisky), and enjoyed higher internal growth rates than conventional banks during2003-2011. The results indicate that there are statistically significant differencesbetween the two types of banks, as far as profitability, solvency, and internalgrowth rate ratios are concerned; however, there are no statisticallysignificant differences in liquidity and efficiency. The results also indicatethat banks, as a whole, appear to be largely sufficiently capitalized for BaselIII. Gulf Cooperation Council banks are well positioned to absorb higherprovisions and impairment charges given the higher capital adequacy ratiosreported by most. The Common Equity Ratio, Tier 1 Capital Ratio, and Capital AdequacyRatios (CARs), for the majority of banks in 2011, comfortably satisfy theenhanced capital requirements of Basel III. The results show that Islamic bankshave, on average, noticeably higher (and significantly different) capitalratios compared to conventional institutions. With regard to theimpact of the global financial crisis on both types of the banks, the resultsindicate that Islamic banks performed better thanconventional banks during the period 2006-2009, as the former enjoys highercapitalization, higher liquidity reserves, and also maintained stronger growthcompared to conventional banks in almost countries.Findings of this study may be useful for capital-market participants, as the full set of banks across various Gulf Cooperation Councilcountries needs to be examined before any substantive conclusions can bereached about the relative performance of Islamic versus conventional banks.Further, as the full implementation of Basel III requirements will not takeplace until 2019, the results of this study will convey information that shouldencourage banks to consider the earlier implementation of Basel III capitalrequirements in order to provide themselves with a reputational boost, as wellas a competitive advantage.
S&P 500 Index Revisions And Analyst Coverage
Authors: Wang Qin , Lee Hei Wai , Singh Vivek
Published: February 2016

This paper examines theimpacts of revisions in the composition of the S&P 500 Index on theinformation environment of sample firms being added to or deleted from theIndex. We use the intensity (number of analysts and number of earningsestimates) and the quality (earnings forecast dispersion and accuracy) ofanalyst coverage to measure the information environment of sample firms. Wefind that firms that are added to the Index experienced significant increase inanalyst coverage while those deleted from the Index suffered reduction inanalyst coverage following the revision in the S&P 500 Index. The findingson the quality of analyst coverage also provide supportive evidence. There are increases in earnings forecastdispersion for both added and deleted firms, and improvements in forecastaccuracy for sample firms. In addition, further findings indicate a negativecorrelation between the impact of index revision on the information environmentand the intensity of pre-revision analyst coverage on the sample firms. Overall,our results suggest that index revisions have material impacts on the informationenvironment of sample firms that were added to, or deleted from, the S&P500 Index over the sample period of 1990 2007.
Further Evidence On The Ability Of FIFO And LIFO Earnings To Predict Operating Cash Flows: An Industry Specific Analysis
Authors: Murdoch Brock , Dehning Bruce , Krause Paul
Published: February 2016

The continuingconvergence of U.S. GAAP with International Accounting Standards has broughtinto question the future use of the LIFO inventory method in the U.S. Since theFinancial Accounting Standards Board (2010) has stipulated that earnings shouldaid investors and creditors in their quest to forecast future cash flows to theenterprise, this research examines whether FIFO earnings or LIFO earnings ispreferable, for this purpose, as an aid to ex ante operating cash flow itself,over a three-year forecast horizon. We conclude that ex ante operating cashflows are quite useful in forecasting operating cash flows across industries forup to three years-ahead.We find differingresults with respect to the incremental predictive content of LIFO versus FIFO earnings,depending on industry and the forecast horizon. For the Manufacturing industry andthe Services industry, LIFO earnings is superior to FIFO earnings forforecasting operating cash flows across the entire three year forecast horizon.In contrast, for the Retail Trade industry and the Finance, Insurance, and RealEstate industry, FIFO earnings is preferable for all three forecasts ofoperating cash flows.For firms in the Transportation,Communications, Electric, Gas, and Sanitary Services industry and in the WholesaleTrade industry, mixed results are observed. Insufficient LIFO data areavailable for evaluations of the Agriculture, Forestry, and Fishing industry,the Mining industry, the Construction industry, and the Public Administrationindustry.
Corporate Performance Of Privatized Firms In Vietnam
Authors: Vo Thi Quy , Swierczek Fredric William , Nguyen Duc Khuong
Published: February 2016

We investigate the impacts of state shareholding, corporate culture and employee commitment on corporate performance of privatized firms in the Vietnamese context. Using data collected from a structured questionnaire as well as companies annual reports, we show that only organizational integration significantly affects the performance of privatized firms. Furthermore, employee and customer satisfactions are among the most important drivers of corporate performance. Finally, there is evidence to suggest that privatized firms with less state ownership perform better than those with more state ownership.
Emotional Labor Strategies And Service Performance: The Mediating Role Of Employee Creativity
Authors: Liu Chao , Liu Xinmei , Geng Zizhen
Published: February 2016

This paper theoretically and empirically investigates the effects of different emotional labor strategies on frontline employee creativity in the context of service industry, and it also studies the mediating role of frontline employee creativity in the relationships between frontline employees emotional labor strategies and the two aspects of customer service performance. Based on the data of 424 employeesupervisor dyads in China, the empirical results indicate that surface acting decreases employee creativity and extra role performance, while deep acting increases employee creativity, role-prescribed performance and extra role performance; employee creativity mediates both the negative influence of surface acting on extra role performance and the positive influences of deep acting on role-prescribed and extra role performances. The results have some theoretical and practical implications on service creativity and emotion management in service industry.
Dimensions of Effective Political Performance In Organizational Information Generation
Authors: Martin Donald R.
Published: February 2016

This paper furnishes a theoretical description of what constitute effective political behavior while generating information within an organization. Organizational uncertainties are described as forces that politicize an organizational climate and motivate organizational members to behave politically. The self-monitoring construct is integrated as a way of delineating dimensions of effective political performance within organizations.
Taxpayer Effects Of A Change To A Consumption Tax Base
Authors: Brazelton Julia K.
Published: February 2016

The goal of this study is to determine whether changes in tax law enacted with the purpose of inducing investment/savings actually have an impact on individual taxpayer spending behavior. The Congressional records indicate that much recent tax reform has been designed to emulate a consumption tax; therefore, an analysis of the effects of tax law changes designed to stimulate savings on the individual taxpayer should allow generalization regarding the implications of a consumption tax base on the individual taxpayer, ignoring macroeconomic effects.
Fiscal Impact Models For Local Economies
Authors: Halstead John M. , Johnson Thomas G.
Published: February 2016

Fiscal impact analysis refers to the rather broad range of economics studies which consider the public sector effects of various economically related aberrations. Such analyses are typically conducted within broader impact analyses including economic, demographic, environmental, and sociological components. This reflects not only the fact that sound decision-making requires information on all of these dimensions, but also the fact that these dimensions are frequently interrelated and must be projected simultaneously.This paper develops a conceptual framework within which local fiscal impact models may be compared and contrasted. The purpose is to shed light on the strengths and weaknesses of the models and their appropriate range of applications. This information should be useful to all those who have a stake in and who influence the viability of their local economy.
The Export Behavior Of Domestic And Transnational Firms In Brazilian Manufacturing
Authors: Natke Paul A.
Published: February 2016

Some developing nations face mounting foreign debt and a need to generate greater export earnings. Reaction by individual firms to government solutions (e.g. export incentives) will determine whether such efforts will succeed. Transnational corporations are often viewed as superior to Brazilian firms as exporters and evidence here suggests they are. As foreign ownership rises so does export propensity. The influence of export subsidies is mixed suggesting that overall government policy is more important than one specific policy. Comparative advantage does not appear to exert a strong influence at the firm level.
The Influence Of Knowing Web 2.0 Risks And Controls On Web 2.0 Usage And Security Practices Of Online Users
Authors: Rudman Riaan J.
Published: February 2016

Significant changes have taken place on the internet in recent years. The most prominent is the introduction of Web 2.0 technologies (Web 2.0), which promotes sharing and collaboration. This study investigates the usage patterns, and awareness levels of the risks and controls associated with Web 2.0 by educated and uneducated users. Accounting students (as a proxy for educated users) are taught about the risks and controls of Web 2.0 as part of their studies, whereas Business Strategy students (as a proxy for uneducated users) exposure is limited to popular media and their own research. The results indicate that the use of Web 2.0 is popular among South African students irrespective of which course they major in. The Web 2.0 awareness levels of both populations were relatively high with no significant differences. Contrary to expectation, the level of usage; types of Web 2.0 technologies; types of risks; and the manner and frequency of sharing of information by the two populations were not found to differ significantly. The research highlights that although Accounting students are taught about the risks and controls in Web 2.0, they do not take these risks and controls into consideration in their personal life when interacting with Web 2.0. Contrary to expectation, it appears that being formally educated on Web 2.0 does not have a larger impact on user behaviour than awareness gained from popular media. It also indicates how user behaviour influences the effectiveness of online controls.
Earnings Management And Initial Public Offerings: An Empirical Analysis
Authors: Miloud Tarek
Published: February 2016

This paper studies the presence of earnings management in initial public offerings (IPOs) of French firms. When the aim of earnings management is to increase the attractiveness of the offered shares it needs to go undetected by market participants. This invisibility makes earnings management difficult to detect in the income statement and the balance sheet, thus investors would benefit from other information that reveals the probability of earnings management. Managers and owners incentives for managing earnings are used to assess the likelihood that earnings management is used before the IPO. Earnings management is tested by observing time-series profiles of accruals. The sample consists of French firms that went public in the years 1995 to 2008 on the Euronext Paris Exchange. The results suggest that IPO firms with the highest discretionary current accruals significantly underperformed, compared to equivalent companies in the third year following the IPOs.
The London Stock Exchange: Strategic Corporate Governance Restructuring After Demutualization
Authors: Padilla Angulo Laura , Slimane Faten Ben , Alidou Djaoudath
Published: February 2016

This study uses the London Stock Exchange (LSE), forced to demutualize due to major changes in its business environment, notably due to increased competition and technological advances, as field experiment to study corporate governance restructuring to adapt to new market conditions. The LSE improved its financial situation after demutualization and is an example of successful corporate governance restructuring. The LSE significantly restructured the composition of its board of directors following demutualization. The number of exchange members on the LSE board decreased after demutualization while the number of independent directors increased, pointing to a more monitoring board, in support of an agency theory approach. Interestingly, the large majority of these independent directors had experiences in diverse business. The LSE significantly reorganized its management team to adapt to the new strategies triggered by demutualization and modified its compensation by increasing performance-related payments. Results suggest that demutualization brings efficiencies if accompanied by changes in the governing bodies and in the incentive structures of the exchanges. Most of our results could be relevant also, for example, for firms going public, for smaller firms that are expanding their activities and searching for outside investors and for companies facing major changes in their business environments.
An Empirical Assist In Determining Reasonable Compensation In Closely Held Corporations
Authors: Englebrecht Ted D. , Holcombe Calee Jo , Murphy Kristie
Published: February 2016

Reasonable compensation is an often litigated issue in the Tax Court. This frequency of discord arises from the tax codes lack of definitive criteria for determining reasonableness. Moreover, classification of payments to shareholder-employees of closely held corporations can have a significant impact on their cash flows and tax burdens. According to 162 of the Internal Revenue Code, reasonable compensation can be deducted from taxable income of a corporation, but amounts paid to shareholders in excess of the reasonable amount should be classified as dividend payments. Dividend payments are not deductible from taxable income. The courts use a variety of factors in determining whether the compensation paid qualifies as reasonable. The main objective of this study is to determine which factors have the greatest influence on Tax Court decisions concerning the reasonable amount of compensation. Using logistic regression, the following factors are found to be significant in predicting the courts decision: comparison of salaries paid to net and gross income, the comparison of salaries with distributions to shareholders, the prevailing rates of compensation for comparable positions in comparable companies, and the employers salary policy as to all employees.
The Role Of Earnings Quality In Financial Analyst Forecast Accuracy
Authors: Salerno David
Published: February 2016

This study investigates the impact that the quality of reported earnings has on the accuracy of financial analysts earnings forecasts. Extant research indicates that earnings attributes are important considerations to users of accounting information. One such attribute is earnings quality; often measured as the magnitude of accruals that do not convert to cash in a timely manner, where a poor match of cash flows and accruals indicates low earnings quality. Such accruals could reduce the usefulness of financial reports. This study uses two measurements of forecast accuracy to assess the impact that earnings quality has on the forecast accuracy of financial analysts. Following prior research, one measurement considers the environment in which the analyst operates and compares their accuracy to that of their peers. The second compares the individual analyst forecast to the actual reported earnings. For both measurements of accuracy the results show that higher earnings quality is associated with improved forecast accuracy.
Corporate Social Responsibility And The Quality Of Executive Compensation Disclosures
Authors: Ben-Amar Walid , Smaili Nadia , Mandzila Eustache Ebondo Wa
Published: February 2016

This paper examines the relationship between corporate social responsibility and executive compensation disclosure quality. We test whether socially responsible firms disclose more transparent and detailed information about their executive compensation packages than firms that are less committed to social responsibility initiatives. Using a sample of 187 publicly listed Canadian firms, we find a positive relation between CSR and executive compensation disclosure quality. We also document a positive (negative) association between firm size (ownership concentration) and executive compensation disclosure. These findings support the conclusion that increased disclosure transparency reflects a companys social engagement towards its stakeholders.
An Assessment Of The Performance Of The Cameroon Water Corporation For The Period 1967 To 2013
Authors: Oumar Saidou Baba , Mbonigaba Josue
Published: February 2016

This paper assesses the performance of the Cameroon Water Corporation (CWC) in delivering services after four decades of existence (1967-2013) and relates that performance to organization theories. It uses secondary data on services provision and primary data on users perceptions of the CWCs performance. The assessment is conducted using descriptive as well as inferential methods of data analysis. The paper observes that despite political, technical, managerial, and financial constraints that impaired the efficient delivery of drinking water and sanitation services in the country over the years, the company registered modest successes that attracted the financial support of domestic and worldwide development partners. However, more than half of the population is sceptical about better future services delivery by the CWC. Classical organization theory (COT) explains most of the failure in the operating environment of the CWC, while the formulations in modern organization theory (MOT) are found to be relevant to the improvement of water services. As a policy recommendation, the CWC should focus on MOT, while maintaining some aspects of COT to improve performance.
Effects Of RFID Technology On Efficiency And Profitability In Retail Supply Chains
Authors: Shin Seungjae , Eksioglu Burak
Published: February 2016

Ten years have passed since Wal-Marts public announcement about its RFID technology adoption plan in 2003. Some large competitors of Wal-Mart in the U.S. retail industry jumped on the trend of RFID technology adoption. However, there has been a slowdown of RFID technology adoption since 2008. Many U.S. retailers do not consider adopting RFID technology because of the uncertainty of return on investment and the lack of business cases demonstrating its profitability or efficiency. This study investigates whether RFID companies have better financial performance ratios in the U.S. retail supply chains. RFID retailers have significantly lower days-in-inventory and lower per-employee costs. Compared with pre-RFID, the RFID retailers do not improve profit ratios after they adopted it, but their days-in-inventory ratio and sales efficiency improve significantly. Panel data regression analyses show that inventory management efficiency does impact gross margins, but the impact of cost efficiency is negligible. RFID retailers have a positive relationship with gross margin increases. In summary, it could be stated that introducing RFID improves inventory management efficiency but we do not know yet if RFID technology adoption also contributes to profitability in U.S. retail industry.
Short- And Long-Term Wealth Gains From UK Takeovers: The Case Of The Financial Industry
Authors: Boubaker Sabri , Hamza Taher
Published: February 2016

The present study analyzes the short- and long-term performance of UK financial acquiring firms by examining a sample of 40 takeovers over the period 19962007. In particular, it investigates i) the short- and long-term stock return performance of these acquiring firms and ii) the relation between their short-term abnormal return around the announcement date of takeovers and their long-term performance. The event study methodology shows that bidders experience significant short-term wealth destruction. In contrast, both the buy-and-hold abnormal returns and bidders portfolio return approaches indicate positive and significant wealth effects over the long run. Business cycle analysis shows that acquirers obtain significantly higher returns during downward financial market cycles. Furthermore, the results show that the market reaction to the bid announcement better predicts bidders long-term performance in the case of positive short-term abnormal returns.
Using Prospect Theory To Explain The Setting Of The Expected Rate Of Return On Pension Assets
Authors: Hsu Pei-Hui , Chiang Yao-Min
Published: February 2016

Studies often use earnings management to explain the setting of assumed expected rate of return (ERRs) on pension assets in the defined benefit plans. In this paper, we argue that a managers risk attitude toward investment may have an impact on setting ERRs on pension assets. Prospect theory is a theory of decision making under risk and is used to explain firms behavior with regard to earnings management. We believe that prospect theory also can be used to explain firms setting of ERRs, which critically depends on managers expectations regarding risky investment. Empirical evidence shows that prospect theory can explain how firms set their ERRs on pension assets. We find that firms in the high-ERR group are risk-averters; that is, there is a positive relationship between risk and return. On the other hand, firms in the low-ERR group are risk-lovers and have an inverse risk-return relationship. Our findings contribute to the literature by suggesting that managers risk attitudes also affect the choice of ERR.
Forecasting Models Evaluation Using A Slacks-Based Context-Dependent DEA Framework
Authors: Ouenniche Jamal , Xu Bing , Tone Kaoru
Published: February 2016

Xu and Ouenniche (2012a) proposed an input-oriented radial super-efficiency Data Envelopment Analysis (DEA) based model to address a common methodological issue in the evaluation of competing forecasting models; namely, ranking models based on a single performance measure at a time, which typically leads to conflicting ranks. However, their approach suffers from a number of issues. In this paper, we overcome these issues by proposing a slacks-based context-dependent DEA framework and use it to rank forecasting models of oil prices volatility.
The Development And Management Of Organizational Partner Satisfaction
Authors: Stan Valentina , Caemmerer Barbara
Published: February 2016

While the development of a partner orientation is critical for the achievement of strategic organizational objectives, little is known about the components of such an orientation and how they impact on partner satisfaction in service operations contexts. The objective of this study is to establish the antecedents of partner satisfaction in a complex service operations context. The achievement of partner satisfaction can be seen as being particularly important, as it forms the basis for partners willingness to remain in a partnership. This is crucial in public sector contexts in which partnership work is usually concerned with the achievement of long-term strategic objectives. This study contributes to the wider stakeholder literature and provides managerial implications for public administration.
An Econometric Analysis Of Bank Lending And Agricultural Output In South Africa: A Survey Approach
Authors: Chisasa Joseph
Published: February 2016

This paper analyses the role of credit on the performance of smallholder farmers in South Africa. Applying survey data involving 362 respondents from North West and Mpumalanga provinces the study utilises the Ordinary Least Squares to estimate the Cobb-Douglas production function with agricultural output as the endogenous variable and bank credit, land, labour and rainfall as the independent variables. Credit is observed to have a positive and significant influence on the agricultural output of smallholder farmers at the 1% level of significance. A 1% increase in the amount of credit yields a combined incremental effect of 0.375% on output. When disaggregated, short-term credit contributes 0.14% while long-term credit induces output growth of 0.231%. The coefficient for land was found to be positive and significant at 5%. Labour and rainfall, albeit positive were insignificant. The paper concludes that availability of both bank credit and land stimulate growth in the agricultural sector. Therefore policies directed at increasing the supply of credit to smallholder farmers are recommended.
A Conceptual Model of Linkage Between Innovation Management and Controlling in the Sustainable Environment
Authors: Vitezi? Neda , Vitezi? Vanja
Published: February 2016

The main objective of this research is to investigate the role of controlling in the innovation management process respecting sustainability. The question of interest is whether controlling is involved in the innovation management process and how to measure the effectiveness of innovation process using controlling as analytical and informative function and support to the management of the company. Today's approach to strategic management emphasized concept of sustainability and innovation. For that reason there is a need for a broader role of controlling in decision making process, especially for the purposes of efficient measurement system. In order to develop conceptual model of the relationship between innovation management and controlling research is done on Croatian enterprises that has controlling department. The involvement of controlling function in innovation process is analyzed using interview method and results confirmed insufficiently developed linkage between controlling and sustainable innovation management. The conceptual model which is proposed is developed with regard to sustainable innovation process and management performance within which controlling place coordinative and integrative role. A model suggests five stages of the innovation process in which controlling is included as analytical and informative function. Also, a model provides a framework for further elaboration of controlling effectiveness, when it is included in innovation management process.
CEO Pay For Long-Run Performance: A Dynamic View
Authors: Ahn Ji-Young
Published: February 2016

This study examines multi-year dynamic response of CEO compensation to firm performance. Multi-period agency theories posit that the CEO's current performance can be compensated both today and tomorrow. This study investigates the dynamic view of CEO pay and firm performance by using partial adjustment models of CEO pay. We find that target pay levels are set on long-run past firm performance and that the deviation of the actual pay level causes near-complete convergence to the target in one year. Overall, the findings here indicate that a pay-for-contemporaneous-only-performance relationship significantly understates the incentive effects of CEO pay.
An Investigation Of Perceived Service Quality In Online Shopping: A Hierarchical Approach
Authors: Mpinganjira Mercy
Published: February 2016

Online retailing is a new but fast growing phenomenon in many countries around the world. The fast pace at which it is growing is resulting in stiff competition on the online market space. Many firms now realise that they cannot only rely on low prices as a source of competitive advantage and are looking for other effective ways of differentiating themselves so as to attract more customers and enhance their satisfaction with their online stores. This paper investigates online store service quality as a source of competitive advantage for online stores. Data was collected from a total of 201 online shoppers from Gauteng South Africa using a structured questionnaire. The findings show that online store service quality as reflected by platform quality, interaction quality and outcome quality has significant influence on customers attitude towards online stores as well as their behavioural response in terms of engagement in positive word of mouth. The findings also show that attitude is not a significant mediator of the relationship between online store service quality and customers behavioural response of positive word of mouth. The findings have wide implications of management of online retail stores and these have been highlighted in the paper.
Product Strategy: Factors That Influence Product Strategy Decisions Of SMEs In South Africa
Authors: Cant Michael C. , Wiid Johannes A. , Kallier Safura Mohamed
Published: February 2016

Deciding on the right products to offer to the market is a demanding and crucial task that requires understanding and insight into the customers needs and wants. This task is even more important and crucial for SMEs who in many instances have to rely on the knowledge and feeling of the owner/manager only to make these decisions. It is therefore important for SMEs to have a well thought out strategy when deciding on what products to sell. This study aimed to identify aspects related to products that SMEs consider when selecting products to sell. Surveys were sent out to SMEs around South Africa. The results indicated that SMEs selected products based on the quality of the product and customer demand.
Implement Fama And French And Capital Asset Pricing Models In Saudi Arabia Stock Market
Authors: Aldaarmi Abdulaziz , Abbodb Maysam , Salameh Hussein
Published: February 2016

This paper applies two of the famous asset pricing models in finance (Capital Assent Pricing model and Fama and French 1993 three factor model) in an emerging market with an Islamic Culture: Saudi Arabia Market (Tadwal), Generalized Methods of Moments and t Test statistical techniques were used to find the coefficients and to compare between real and expected returns.The results show that Fama and French 1993 model has more explanatory power and do a better job in explaining the changes in stock returns than the CAPM, and those developed market models can be applicable in emerging markets like Saudi Arabia. CAPM model has a clear evidence for its applicability while Fama and French Model has a clear evidence for the market return but not a clear evidence for the size and book to market return. Finally the results show that we can predict the stock prices by using any of those two models which means that the Saudi Arabia Market is inefficient pricing Market.The modernity and low number of companies has a big effect on the results, in addition the strong purchasing power and strong cash availability.Finally we recommend to appply more modern pricing models at the micro and macro level and add variables consistent with the Islamic Culture of Saudi Arabia.
Collaborative Consumption And Sustainability: A Discursive Analysis Of Consumer Representations And Collaborative Website Narratives.
Authors: Binninger Anne-Sophie , Ourahmoune Nacima , Robert Isabelle
Published: February 2016

In this article, the authors analyze the collaborative consumption model and its contribution to sustainable consumption. Indeed, collaborative consumption is considered as an alternative, ecological consumption mode (Bostman & Rogers, 2011), but previous research has no yet deeply explored to what extent it contributes the sustainable scheme and values. The study therefore investigates both the producer side (collaborative websites) and consumer side (blog participants) to decipher how sustainable ideals are shaped in this context and how consumers attend to them. Six segments of consumers have been identified which can help marketing and sustainable levers better frame their offer.
Leaders Lacking Emotional Intelligence: Towards A Theory Of Tobephobic Leaders
Authors: Singh Prakash
Published: February 2016

Does a theory on tobephobic leaders (TLs) exist? In attempting to advance a theory on TLs, it is very pertinent to ask: Who are intelligent leaders? Research strongly suggests that intelligent leaders can mean numerous things because this conceptualization of intelligent leaders can be based exclusively on their intellectuality (cognitive abilities - IQ), or their emotionality (emotional intelligence EQ), or a combination of both. Expectedly, leaders who intellectualize and depend solely on their cognitive skills would tend to avoid the conscious recognition of the emotional basis of their decisions by substituting a superficially plausible, but questionable, explanation for their workers. On the other hand, leaders who base their decisions solely on their emotions can be accused of being irrational and not being task-oriented. The complexities of modern organizations in the twenty-first century require a new focus on leadership that extends well beyond possessing cognitive abilities alone. The focus of this paper is to advance a theory of TLs because no such attempt has yet been made globally. The primary objective of this article is to expand the notions of leadership that are currently in practice in organizations. Such a theory could make a major impact on how we view leadership practices in different organizations and could, therefore, make a significant contribution to our understanding of leadership activities. The theory of TLs will be embedded in two dimensions of leadership: intellectuality and emotionality. Hence, relevant research will be cited to evoke the prevalence and effects of TLs on human resources.
Long-Run Retail Interest Rate Pass-Through In The Euro Area: The Effect Of The Financial Crisis
Authors: Mansour Manel , Heller David , Labidi Moez , Lahiani Amine
Published: February 2016

This paper analyzes the long-run pass-through of money market rates to retail interest rates (both lending and deposit rates). We rely on fully harmonized data from MIR statistics (MFI Interest Rates) for 8 countries of the euro area. From January 2003 to February 2014, interest rates are observed on a monthly basis on new contracts related to the three largest segments of the banking market (consumer, mortgage, and Non-Financial Corporations - NFCs). The long-term pass-through is measured following the Phillips and Loretan (PL) approach which is proved to be more effective than the Engle-Granger OLS (EG-OLS) approach. We also investigate the effect of the financial crisis on the degree of the long-run pass-through. Results suggest that the financial crisis deepens the heterogeneity of the speed and degree of the bank rates adjustment mechanism. Moreover, within the same country, the characteristics of long-run pass-through differ both among banking products and time horizon.
Tax Planning To Maximize The Benefits Of Faculty Research Grants
Authors: Weber Richard P. , Outslay Edmund
Published: February 2016

This article discusses the tax planning possibilities for maximizing the after-tax benefits of research grants received by academic researchers. The maximum benefit is achieved if the grant qualifies as a fellowship as defined in Internal Revenue Code Section 117. The requirements to meet this status can be precarious, and both the grantor and the grantee must carefully structure the conditions of the grant to qualify for beneficial treatment. These conditions are analyzed in the paper.
Ownership Control And Small Firm Anomalities
Authors: Krause David S.
Published: February 2016

Tests using the Capital Asset Pricing Model show that during the 1981 through 1983 period, a portfolio of common stocks composed of owner-controlled firms significantly outperformed a group of manager-controlled firms, even after adjusting for systematic risk. Small capitalization stocks were also shown to have generated large abnormal returns compared to large firm stock during this period. Interestingly, the statistical significance of both the ownership control and small firm effects was not reduced when the other effect was controller. The implications of these results for investors are that large excess returns may be earned by tilting stock portfolios towards owner-controlled, small capitalization firms.