bluuebunny/crossref_metadata_2025 huggingface dataset:
What determines the capital structure of real estate companies?
Authors: Morri Giacomo , Cristanziani Fabio
Published: July 2009

Purpose

This paper aims to investigate the determinants affecting the choice of the capital structure of European property companies.

Design/methodology/approach

The analysis considers the set of companies belonging to the EPRA/NAREIT Europe Index (both REITs and non‐REITs) and is based on panel data to get greater reliability and to check the cross‐time path of explanatory variables. Seven independent variables (size, profitability, growth opportunities, cost of debt, ownership structure, risk, and category) are studied over a five‐year period.

Findings

Results clearly show that non‐REIT companies are significantly more leveraged than REITs, confirming the importance of the tax‐exempt status in affecting capital structure choices. The negative relationship between operating risk and leverage demonstrates that the managers of riskier firms tend to reduce the overall company's uncertainty by adopting a more careful capital structure. Moreover, more profitable firms have less recourse to leverage. Evidence also suggests that the company's asset size is able to directly influence the amount of debt issued, confirming the hypothesis that debt is cheaper for bigger firms and its issue is affected by economies of scale.

Originality/value

The paper represents a break point with past literature for the sample, based on European companies, and the methodology, that relies more on market rather than on balance‐sheet or income statement items (obtaining higher comparability and avoiding country‐specific bias mainly concerning law, fiscal and earning management issues).
Empirical examination of REITs in Turkey: an emerging market perspective
Authors: Aktan Bora , Ozturk Mustafa
Published: July 2009

Purpose

The aim of this paper is to investigate the risk‐return relationship of REITs listed on the Istanbul Stock Exchange (ISE) in order to assess the risk and to find some empirical results for investors within the framework of modern portfolio theory (MPT) using the standard version of the capital asset‐pricing model (CAPM) and the single index model (SIM) over the period January 2002‐June 2008.

Design/methodology/approach

Time series, cross‐sectional regression and structural literature review are employed.

Findings

Results indicate that linearity assumption for both the CAPM and the SIM are rejected. It should be emphasized that the econometrical specification exposed the weaknesses of t‐test methodology for testing coefficients of regression due to the non‐normality of residuals.

Originality/value

Understanding of risk and its resultant impact on the returns and evaluation of risk‐return relationship is extremely important for investors. In this regard, real estate investment trusts (REITs) as indirect investment instruments are increasingly becoming an important part of investors' diversified portfolios to lessen the risk. The study is the first attempt to explore the structure of REITs in Turkey as an emerging market.
Australian securitised property funds: an examination of their risk‐adjusted performance
Authors: Higgins David , Ng Boon
Published: July 2009

Purpose

This paper aims to gain exposure to Australian real estate investment trusts (A‐REITs). Many institutional investors make use of securitised property funds as they employ experienced property professionals with specialist knowledge of underlying property fundamentals, direct property markets and the 30‐plus A‐REITs. As securitised property funds operate in a competitive environment, investment performance benchmarks are important.

Design/methodology/approach

To add to the familiar risk and return benchmarks, the risk adjusted performance (RAP) measure first outlined by Modigliani and Modigliani provides an additional and valuable return measure to a definite level of risk. This research selected 16 wholesale securitised property funds each with seven years of continuous quarterly total return data.

Findings

Overall a large proportion of the selected funds (14 out of 16), on average, outperformed the market benchmark return (14.53 per cent) with the worst fund marginally under‐performing the index by 0.54 per cent. In contrast, the annualised RAP measure highlighted the differences in the securitised property fund returns for a given level of risk, with a wide 12.90‐16.66 per cent range. To achieve this uniform level of risk, five securities property funds had to replace up to 21 per cent of their property portfolio with a risk‐free asset (90 day bank bills). The RAP measure also decomposes the excess returns above the benchmark. In this instance, the securitised property funds outperformance was from a mixture of active portfolio selection and simply taking on additional risk exposure.

Originality/value

The research demonstrated the benefits of analysing securitised property funds beyond the standard return and risk measures. The RAP approach provides a measure of return for a definite level of risk with the benchmark excess attributed to portfolio selection and additional risk. This performance information can provide valuable additional information for an astute investor.
Developing the real estate derivative market for Singapore: issues and challenges
Authors: Eng Ong Seow , Hwa Ng Kah
Published: July 2009

Purpose

While the development of real estate derivative contracts has important implications for real estate as an asset class, it has not been widely accepted in Asia. This paper aims to examine the issues involved in developing the real estate derivative market for Singapore.

Design/methodology/approach

The concept of real estate derivatives is reviewed. The limitations to the extant real estate index are discussed. Different approaches to constructing real estate indices are discussed in particular reference to the features of the Singapore real estate market.

Findings

The Singapore residential market is dominated by public housing, heterogeneity and relatively low turnover. The applicability of repeat sales approach may not be well suited. Geostatistical models appear promising. The commercial real estate market suffers from even lower turnover. The most appropriate commercial real estate index could be similar to that offered by IPD. Several issues were also highlighted. First, the index must pass the stringent scrutiny of academia and experts. Second, the index must be well understood and accepted by the industry. Third, the index must be published in a timely fashion and without biases. Fourth, there must be a trustworthy producer of the index.

Research limitations/implications

For an index to be accepted, it must satisfy the issue of fungibility. International investors looking for exposure or hedging strategies are likely to be familiar with established methodologies such as the repeat sales and appraisal‐based approaches.

Practical implications

Market acceptability of RED. If the experience in Europe is anything to go by, this is not an insurmountable issue that cannot be addressed with education and knowledge dissemination.

Originality/value

While real estate derivatives have immense potential and a tremendous growth in its development in Europe has been witnessed, it is clear that the real estate derivative industry is in its infancy. The paper examines the issues peculiar to Singapore with regard to the establishment of real estate derivative contracts. The paper is of interest to policy makers and industry practitioners.
Sarbanes‐Oxley Act, perceived earnings quality and cost of capital
Authors: Chang Hsihui , Fernando Guy D. , Liao Woody
Published: July 2009

Purpose

The purpose of this paper is to investigate the impact of the Sarbanes‐Oxley Act (SOX) on market‐based measures of earnings quality and cost of capital.

Design/methodology/approach

The paper uses empirical data to determine measures for the market's perception of earnings quality and the ex‐ante cost of capital. The measures for 2001 (pre‐SOX) are compared to the measures for 2003 (post‐SOX).

Findings

The results indicate that in the post‐SOX period, the market's perception of earnings quality has improved, while the firms' cost of equity capital has decreased.

Research limitations/implications

At a time when debate is raging as to the overall impact of SOX on the US economy, this study provides some evidence as to its beneficial nature. A limitation is that the method of computing restricts the sample, potentially creating biases.

Originality/value

This is the first study to investigate the impact of SOX on the market's perception of earnings quality and the firms' cost of equity capital.
The association between audit fees and reported earnings quality in pre‐ and post‐Sarbanes‐Oxley regimes
Authors: Mitra Santanu , Deis Donald R. , Hossain Mahmud
Published: July 2009

Purpose

The purpose of this paper is to examine the empirical association between expected and unexpected audit fees and reported earnings quality for a sample of Big 4(5) client companies over a period from 2000 to 2005.

Design/methodology/approach

The paper employs a cross‐sectional multiple regression model for a sample of 1,142 firms (6,852 firm‐years) covering a time period of six years comprising 2000 to 2005 to evaluate the relationship between both expected and unexpected audit fees and performance‐adjusted discretionary accruals that are estimated from the extended version of the modified Jones model.

Findings

The paper finds that both expected and unexpected audit fees are associated with an increase in earnings quality, as indicated by the reduction of both absolute and signed discretionary accrual adjustments. Furthermore, in some analyses these associations are found to persist into the post‐Sarbanes‐Oxley Act (SOX) period. The main results hold in sensitivity tests that involve using both the absolute and signed unexpected audit fees as independent variables and in tests that use both the absolute and signed current accruals as dependent variables of interest.

Research limitations/implications

The results suggest that audit efforts consistent with client‐specific business attributes and reflected in expected audit fees mitigate financial reporting biases, the effect of which is incrementally observable to some extent in the post‐SOX period as well. Unexpected audit fees, a proxy for fee surprise arising out of auditor‐client‐specific contractual situations, are also associated with an increase in earnings quality. The association is, in some analyses, significant for the post‐SOX years. The test results do not exhibit any evidence of auditor independence problems associated with high expected and unexpected audit fees; a result that supports the “reputation protection” argument for auditors' reporting decisions.

Originality/value

In a time period surrounding the introduction of SOX when nonaudit consulting services have severely been restricted, and the audit fee growth for publicly traded companies have been dramatic, an analysis of this nature potentially produces valuable insights into the auditors' fee decision, audit efforts, and auditor independence issue. The study looks into a new perspective concerning the relationship between audit fees and financial reporting practice over the two regulatory regimes, pre‐ and post‐SOX.
Disclosure channel and cost of capital: evidence from open vs closed conference calls
Authors: Zhao Yijiang , Davis Michael , Berry Kevin T.
Published: July 2009

Purpose

The purpose of this paper is to examine the effect on the cost of capital of increased disclosure that reduces information asymmetry among market participants.

Design/methodology/approach

This study uses the decision to regularly hold open (closed) conference calls pre‐Reg FD as a proxy for a commitment to the policy of public (selective) disclosure and a cross‐sectional research design to examine the associations between open/closed conference calls and three proxies for firms' cost of capital (i.e. bid‐ask spreads, share turnover, and implied costs of capital).

Findings

The results show that firms that commit to open calls exhibit lower relative bid‐ask spreads, lower implied costs of capital, and higher share turnover than firms that commit to closed calls.

Practical implications

The findings suggest that increased disclosure that “levels the playing field” for small investors benefits investors as a whole by improving firms' market liquidity and reducing the cost of capital.

Originality/value

This study contributes to existing literature on the association between corporate disclosure and firms' cost of capital.
Systematic liquidity and excess returns: evidence from the London Stock Exchange
Authors: Galariotis Emilios C. , Giouvris Evangelos
Published: July 2009

Purpose

The purpose of this paper is to test whether the 2007 identification of commonality in liquidity by Galariotis and Giouvris for the UK is robust to different methodological approaches; to find whether commonality is priced; and to identify how changes in trading regimes, hence liquidity provision, affect the relationship between commonality and excess returns.

Design/methodology/approach

The paper builds on the 2001 methodology of Huberman and Halka. In addition it extracts common factors using principal component analysis to test the effect of commonality on excess returns.

Findings

The findings of this paper confirm the presence of a systematic time‐varying component in UK spreads (under a different approach) even after controlling for well‐known spread determining variables.

Originality/value

The paper provides original evidence on the presence and the effect of systematic liquidity on asset pricing in the UK, showing that it is sensitive to the nature of trading regimes. It is concluded that in order‐driven regimes the effect of commonality on asset pricing is reduced, hence policy makers should consider this when deciding on trading systems
Modelling a radiology department service using a VDL integrated approach
Authors: Gabriella Guglielmino Maria , Celano Giovanni , Costa Antonio , Fichera Sergio
Published: July 2009

Purpose

The healthcare industry is facing several challenges such as the reduction of costs and quality improvement of the provided services. Engineering studies could be very useful in supporting organizational and management processes. Healthcare service efficiency depends on a strong collaboration between clinical and engineering experts, especially when it comes to analyzing the system and its constraints in detail and subsequently, when it comes to deciding on the reengineering of some key activities. The purpose of this paper is to propose a case study showing how a mix of representation tools allow a Manager of a Radiology Department to solve some human and technological resource re‐organizational issues, which have to be faced due to the introduction of a new technology and a new portfolio of services.

Design/methodology/approach

In order to simulate the activities within the radiology department and examine the relationship between human and technological resources, different visual diagrammatic language (VDL) techniques have been implemented to get knowledge about the heterogeneous factors related to the healthcare service delivery. In particular, flow charts, IDEF0 diagrams and Petri nets have been integrated each other with success as a modelisation tools.

Findings

The simulation study performed through the application of the aforementioned VDL techniques suggests the opportunity of re‐organizing the nurse activities within the radiology department.

Originality/value

The re‐organization of a healthcare service and in particular of a radiology department by means of joint flow charts, IDEF0 diagrams and Petri nets is a poorly investigated topic in literature. This paper demonstrates how flow charts and IDEF0 can help people working within the department to understand the weak points of their organization and constitute an efficient base of knowledge for the implementation of a Petri net aimed at improving the departmental performance.
Contemporary leadership in healthcare organizations
Authors: Wikström Ewa , Dellve Lotta
Published: July 2009

Purpose

The purpose of this paper is to gain a deeper understanding of the main contemporary challenges for healthcare leaders in their everyday work practice, and the support they need to master their experienced dilemmas.

Design/methodology/approach

Qualitative in‐depth interviews (n=52), and focus‐group interviews (n=6) with 31 first‐line and 45 second‐line healthcare leaders are analysed in line with constructivist grounded theory.

Findings

In this paper, two leadership models are proposed for defining and differentiating ways of meeting different logics and demands made on leaders in the healthcare sector. The first model is leadership by separating different logics and fragmentation of time. Here, leaders express a desire for support in defining, structuring, dividing, and allocating tasks. The second model is leadership by integrating different logics and currentness of solutions. In this case, leaders want support in strengthening proactive leadership and shaping the basis for participative employeeship.

Research limitations/implications

This research is designed to describe what people experience rather than to assess the frequency of that experience in the studied settings. However, it would be interesting to elaborate on the findings of this study using other research methodologies.

Practical implications

The findings contribute to contextual knowledge that is of relevance in supporting healthcare leaders. This is helpful in identifying important conditions that support the establishment of leadership and employeeship, leading to improvements in healthcare practice.

Originality/value

The paper describes how contemporary leadership in the healthcare sector is constituted through different strategies for meeting multiple logics.
Measurement of social capital as an indicator of community‐based initiatives (CBI) in the Islamic Republic of Iran
Authors: Riaz Sheikh Mubashar , Zulfiqar Ali Syed , Hussain Abid , Shehzadi Romana , Mahmood Afzal Muhammad
Published: July 2009

Purpose

The purpose of this paper is to observe whether measurement of social capital is an effective tool or can be used as a standard tool for community‐based initiatives (CBI) evaluation. It also points at the significance of social capital in the health related grass root initiatives.

Design/methodology/approach

CBI is an integrated socio‐economic development approach implemented by the organized communities, supported by inter‐sectoral actions for improvement of quality of life and health of the people. Support by WHO's office of Eastern Mediterranean Region, Islamic Republic of Iran implement programmes like basic development needs, healthy cities, healthy villages and women in health and development, that are evaluated during 2005‐2006. Social capital, that includes the networking, sharing norms and cooperation amongst communities, is measured as one of the indicators during the evaluation, by surveying 240 households in three CBI and three control villages, using the World Bank's, Social Development Department's Social Capital Assessment Tool for data collection.

Findings

The evaluation results reveal that the social capital indicators like affiliation percentage; trust reciprocity; and collective action are better in CBI areas than their controls. CBI areas have a better access to public services, are more peaceful, people are more willing to help others and there is less segregation due to income and social status.

Originality/value

The evaluation findings support the use of social capital indicators for investigating the impact and affectivity of CBI for health and development, and underlines the need for their consideration during implementation processes and further investigation.
Sexual harassment – a touchy subject for nurses
Authors: Cogin Julie , Fish Alan
Published: July 2009

Purpose

The purpose of this paper is to examine prevalence of sexual harassment (SH) in nursing and the environmental factors that contribute to incidents of SH.

Design/methodology/approach

A mixed‐method research methodology is adopted. A total of 538 questionnaires are collected from nurses working in eight different hospitals across metropolitan and rural areas in Australia. A total of 23 in‐depth semi‐structured interviews are conducted.

Findings

Prevalence of SH in nursing is high with 60 percent of female nurses and 34 percent of male nurses reporting a SH incident in the two‐year period prior to this paper. The questionnaire data suggest that patients are the most likely perpetrator, however, the interviews name physicians as typical perpetrators. A model is tested via structural equation modelling and revealed that leadership behaviors, an unbalanced job gender ratio and no prior socialization are positively associated with SH.

Research limitations/implications

This paper closes gaps in theory by introducing a new framework explaining the contextual factors that heighten a nurses' probability of being harassed. Some variables such as organizational culture and specific nursing units have not been explored and can be considered a limitation of the paper.

Practical implications

The results of this paper assist health professionals to adopt proactive practices for managing SH and plan a workforce where SH is minimized.

Originality/value

This paper illustrates the prevalence of different types of SH and the causes for male and female nurses that have not been investigated previously. The results help health managers make informed decisions in regard to intervention strategies.
Constant‐sum sampling: an apology for statistics' “original sin”
Authors: Powers Michael R.
Published: July 2009

Purpose

The purpose of this editorial is to consider the importance of random samples subject to a constant‐sum constraint (that is, a succession of identically distributed random variables that add up to some predetermined constant) in human experience and intuition.

Design/methodology/approach

The importance of constant‐sum random samples is motivated by considering the intuition that successive random variables must be negatively correlated to provide the “balance” required by convergence results such as the law of large numbers. Given that the intuition of negatively correlated trials is valid in the context of constant‐sum sampling, we explore the roles of this model in both evolutionary and modern‐day contexts.

Findings

The connection between constant‐sum sampling and the intuition that convergence results require negatively correlated random variables suggests that the constant‐sum model played a significant role in the lives of our primitive human ancestors. Because of the continued prevalence of constant‐sum samples in the modern world, it is concluded that the intuition of negatively correlated random variables should not be so quickly and categorically dismissed.

Originality/value

The editorial studies the relationship between constant‐sum random sampling and the intuition of negatively correlated random variables, and reveals the important role that the constant‐sum model has played – and still plays – in human cognition.
Macroeconomic uncertainty and conditional stock‐price volatility in frontier African markets
Authors: Adjasi Charles K.D.
Published: July 2009

Purpose

The purpose of this paper is to analyse the impact of macroeconomic uncertainty on stock‐price volatility in Ghana.

Design/methodology/approach

The method of analysis is in two stages. The first stage estimates univariate volatility models for each macroeconomic variable; namely consumer price index (proxy for inflation), exchange rate, money supply, interest rates, oil price, gold price, and cocoa price using the exponential generalized autoregressive conditional heteroskedasticity (EGARCH) model. In the second stage volatility effect of macroeconomic variables on stock prices is estimated using the most recent squared residuals from the mean‐conditional variance of macroeconomic variables as exogenous variables in the conditional variance equation of the stock price.

Findings

The results show that higher volatility in cocoa prices and interest rates increases volatility of the stock prices, whilst higher volatility in gold prices, oil prices, and money supply reduces volatility of stock prices.

Originality/value

This paper departs from previous studies on African markets, by incorporating time‐varying volatility characteristics of stock returns and further examining the effect of conditional volatility of macroeconomic variables on the volatility of stock. It also incorporates the effect of external macroeconomic uncertainties from oil and commodity price shocks.
An econometric analysis of the lead‐lag relationship between India's NSE Nifty and its derivative contracts
Authors: Swaroop Debasish Sathya
Published: July 2009

Purpose

The purpose of this paper is to examine the lead‐lag relationships between the National Stock Exchange (NSE) Nifty stock market index (in India) and its related futures and options contracts, and also the interrelation between the derivatives markets.

Design/methodology/approach

The paper uses serial correlation of return series and autoregressive moving average (ARMA) model for studying the lead‐lag relationship between hourly returns on the NSE Nifty index and its derivatives contracts like futures, call and put options. Further, the lead‐lag relation between hourly returns of the derivatives contracts among themselves is also studied using ARMA models.

Findings

The ARMA analysis shows that the NSE Nifty derivatives markets tend to lead the underlying stock index. The futures market clearly leads the cash market although this lead appears to be eroding slightly over time. Although the options market leads the cash overall, there is some feedback between the two with the underlying index leading at times. Further, it is found that the index call options lead the index futures more strongly than futures lead calls, while the futures lead puts more strongly than the reverse.

Practical implications

The results imply that the derivative contracts on NSE Nifty lead the underlying cash market. Thus, the derivative markets are indicative of futures price movements and this will certainly be helpful to potential investors to design their risk‐return portfolio while investing in stocks and derivatives contracts.

Originality/value

This paper is an original piece of work towards exploring the lead‐lag relation between NSE Nifty and the derivative contracts. The issue of price discovery on futures and spot markets and the lead‐lag relationship are topics of interest to traders, financial economists, and analysts.
Detecting risk transmission from futures to spot markets without data stationarity
Authors: Ozun Alper , Erbaykal Erman
Published: July 2009

Purpose

The purpose of this paper is to analyze cointegration and causality relationships between spot and futures markets in Turkish foreign‐exchange markets.

Design/methodology/approach

The research employs Bounds cointegration test and Toda‐Yamamoto causality test to detect a possible risk transmission between spot and futures markets. Time series of Turkish spot and futures foreign‐exchange markets from January 2, 2006 to March 25, 2008 on a daily basis are used for empirical analysis.

Findings

The empirical tests suggest that there is unidirectional causality running from future exchange‐rate market to spot market implying that foreign‐exchange markets have informational efficiency in Turkey.

Originality/value

The paper has originality in both employing Bounds test and Toda‐Yamamoto test to examine the relationship between spots and derivative markets, and in being one of the first empirical papers examining Turkish futures markets. In addition, the paper presents a guide on how Bounds and Toda‐Yamamoto tests can be applied to detect interactions among markets without data stationarity.
Forecast of value at risk for equity indices: an analysis from developed and emerging markets
Authors: Yi‐Hou Huang Alex , Tseng Tsung‐Wei
Published: July 2009

Purpose

The purpose of this paper is to compare the performance of commonly used value at risk (VaR) estimation methods for equity indices from both developed countries and emerging markets.

Design/methodology/approach

In addition to traditional time‐series models, this paper examines the recently developed nonparametric kernel estimator (KE) approach to predicting VaR. KE methods model tail behaviors directly and independently of the overall return distribution, so are better able to take into account recent extreme shocks.

Findings

The paper compares the performance and reliability of five major VaR methodologies, using more than 26 years of return data on 37 equity indices. Through back‐testing of the resulting models on a moving window and likelihood ratio tests, it shows that KE models produce remarkably good VaR estimates and outperform the other common methods.

Practical implications

Financial assets are known to have irregular return patterns; not only the volatility but also the distributions themselves vary over time. This analysis demonstrates that a nonparametric approach (the KE method) can generate reliable VaR estimates and accurately capture the downside risk.

Originality/value

The paper evaluates the performance of several common VaR estimation approaches using a comprehensive sample of empirical data. The paper also reveals that kernel estimation methods can achieve remarkably reliable VaR forecasts. A detailed and complete investigation of nonparametric estimation methods will therefore significantly contribute to the understanding of the VaR estimation processes.
Market orientation, supplier perceived value and business performance of SMEs in a Sub‐Saharan African nation
Authors: Jekanyika Matanda Margaret , Oly Ndubisi Nelson
Published: July 2009

Purpose

In the current customer‐centred business environment, organisations are adopting market‐oriented behaviour in an effort to enhance their value creation and delivery capabilities. This study seeks to investigate whether supplier market orientation leads to the creation of superior supplier perceived value and organisational performance. It is contended that supplier perceived value creation mediates the relationship between market orientation and business performance.

Design/methodology/approach

A model was developed that places supplier perceived value creation as a mediator of the relationship between market orientation and business performance. The model was tested using structural equation modelling on 244 fresh produce suppliers interviewed in face‐to‐face interviews.

Findings

The results indicate that, whilst customer orientation enhances supplier perceived value creation, competitor orientation and interfunctional coordination were negatively associated with it. Supplier perceived value creation had a mediating effect on the link between market orientation and business performance. Additionally, supplier perceived value creation had a negative effect on financial performance, but was positively related to marketing performance.

Practical implications

The study indicates that not all market orientation components lead to positive effects on business performance. For some organisations market orientation can actually reduce business performance. Thus managers should specifically be careful to implement customer orientation as a way of enhancing business performance as the costs may outweigh the benefits.

Originality/value

Limited work has investigated the role of supplier perceived value creation and research has called for empirical work on mediators of the market orientation‐business performance link. The paper adds to existing knowledge by unveiling how supplier market orientation influences their ability to conceptualise supplier delivered value.
Impact of government export assistance on internationalization of SMEs from developing nations
Authors: Shamsuddoha A.K. , Yunus Ali M. , Oly Ndubisi Nelson
Published: July 2009

Purpose

The purpose of this paper is to examine the effects of government assistance programmes on internationalization of SMEs from an Asian developing nation.

Design/methodology/approach

Primary data from a sample of 203 SMEs in three export‐oriented industries in Bangladesh were analyzed using structural equations model to examine both direct and indirect causal effects of government assistance on their internationalization.

Findings

Results suggest that the usage of market development‐related government assistance significantly influence internationalization directly as well as indirectly via other determinants, whereas finance‐ and guarantee‐related assistance has only indirect effect.

Practical implications

Government export assistance programmes play an important role in the SMEs' internationalization process by contributing to a number of firm‐ and management‐related factors that determine international marketing performance of a firm. The study provides a guideline for SME managers as to how they can benefit from both categories of export assistance programmes in improving their positive attitudes towards the export market environment, building their knowledge and enhancing commitment to exporting for better success in their international operations.

Originality/value

The importance of export assistance programmes is well recognized in the literature but its causal effect on internationalization of small and medium‐sized enterprises (SMEs) is low. The paper tries to fill this gap by reporting the results of an empirical study examining effects of government assistance programmes on internationalization of SMEs from an Asian developing nation, where there is a gross dearth of research.
An empirical study of usage of external business services by Chinese SMEs
Authors: Xiao Jianzhong , Fu Hong
Published: July 2009

Purpose

Adopting an evidenced‐based approach, this paper seeks to examine the usage of external business services by small and medium‐sized enterprises (SMEs) in China.

Design/methodology/approach

The empirical data are based on the first large‐scale survey of small businesses (around 500 in each city) and service providers (90‐200 in each city) designed and organised by the authors in Chengdu, Lanzhou and Shenzhen between November 2005 and March 2006, as part of a DFID project. The three cities were selected to enable the market conditions to be assessed in cities that are at different levels of economic development.

Findings

There is a variety of business services market in China. Using logistic models it is found that firm size, sector, exporter and growth‐intention appear to be important factors influencing demand side of services. It is also indicated that professional staff, referral via local SME bureau and networking appear to be the main variables influencing supply‐side behaviour.

Research limitations/implications

In order to specify the nature of business service market, it is important to understand the needs of (small) firms and how these are currently being addressed. This will enable policy measures to be designed that meet the needs of businesses.

Originality/value

This is an empirical study that utilises the logistic model to examine the relationship of service usage with demand variables and supply variables. In this context, the value of the research is to assess the supply‐demand gap in a developing country.
Comparison of relationship perception in the international fresh produce business
Authors: Gyau Amos , Spiller Achim
Published: July 2009

Purpose

The suppliers of fresh fruit and vegetable complain that their buyers in the retail segment of the market used certain undesirable and questionable business practices which are not used by buyers in other segments. These undesirable practices may have negative effects on how the exporters perceive their relationship with the retailers compared with how they will perceive the non‐retail buyers. This paper aims to compare the perceived relationship quality of the retailer group of buyers with the buyers in the other categories of the fresh fruit and vegetable business between Ghana and Europe.

Design/methodology/approach

Using the literature on inter‐firm relationships as a basis, a structured questionnaire was designed and administered to 101 exporters in Ghana. Multivariate analysis of variance (MANOVA) procedure and post hoc test were used to determine the differences in the perceived relationship quality of the exporters classified according to their main European buyer type.

Findings

The empirical results from the study support the hypotheses that exporters have a lower perception of the quality of their relationship with retailers compared with the wholesalers and the food service firms. In addition, whereas differences in exporters' experience were observed depending on the type of European importer to whom they mainly sell, the size of the exporters does not differ. The paper concludes that, in the context of the fresh produce business, the level of perceived power exploitation may differ depending on the type of business organisation or the position of the firm in the supply chain.

Originality/value

It is recommended that export firms need to examine the category to which their main buyer belongs before they make relationship‐specific investments. The results also provide a guide for policy makers and antitrust bodies in the various European countries to be able to effectively target their policies to address unfair business practices.
Influence of inter‐organisational integration on business performance
Authors: Rajaguru Rajesh , Jekanyika Matanda Margaret
Published: July 2009

Purpose

The purpose of this paper is to investigate the mediating role of organisational level supply chain activities on the effect of inter‐organisational information systems (IOIS) and activity (IOA) integration on business performance of retailing organisations within Australia.

Design/methodology/approach

The study followed a causal research approach and survey methodology to collect data from the managers of food and hardware retailers. Multiple regression and MacKinnon et al.'s mediation analysis were used to investigate the hypothesised relationships.

Findings

The results suggest that inter‐organisational information systems (IOIS) and activity integration have positive effects on customer responsiveness and financial performance of organisations. Organisational‐level supply chain functions mediate the relationships between IOIS and activity integration and customer responsiveness, as well as financial performance.

Research limitations/implications

The research focused at the retailer level of the supply chain. Large‐scale cross‐sectional studies that include other levels of supply chain are required for generalisability.

Practical implications

The research suggests that organisations need to integrate their inter‐organisational information systems and activities with supply chain partners to enhance supply chain and business performance.

Originality/value

The results extend the body of knowledge on inter‐organisational information systems, inter‐organisational integration and supply chain management. The study also provides some empirical insights into management practices in the retailing sector.
Improving corporate governance of SMEs in emerging economies: a Malaysian experience
Authors: Rachagan Shanthy , Satkunasingam Elsa
Published: July 2009

Purpose

SMEs are essential to economic growth in Malaysia and many emerging economies as they are a major source of employment and contribute towards the gross domestic product. It is therefore imperative that the corporate governance practices of SMEs are enhanced by assurance that appropriate monitoring occurs and procedures are in place. This study aims to address this issue.

Design/methodology/approach

The concentration of ownership in Malaysian companies results in less protection for minority shareholders. This is because the laws protecting minority shareholders mainly focus on director/shareholder conflicts and are not suited to companies with concentrated shareholdings, especially where the conflict is commonly seen between the majority and minority shareholders. Furthermore, owing to the levels of power distance, collectivism and assertiveness in Malaysia, shareholders are unlikely to litigate. The research was carried out through case analysis and analysis of extant literature and existing laws in Malaysia, to illustrate that the minority shareholders in the concentrated shareholding SMEs are not well protected.

Findings

The paper finds that current prohibitive models of law are not desirable as they have promoted compliance with the letter but not the spirit of the law.

Research limitations/implications

The study focuses only on SMEs that have been incorporated.

Practical implications

The study enables minority shareholders to reduce fraud and self‐dealing by the majority through more direct participation in corporations, reliance on procedural protections to balance business flexibility and application of brightline rules which stand a better chance of compliance by those who understand them.

Originality/value

The self‐enforcing model is a non‐adjudicative mechanism of enforcement which requires substantial compliance with procedural requirements and aims for voluntary compliance. It proposes that minority shareholders and independent directors hold veto powers, thus reducing fraud and self‐dealing.
Behavioral factors influencing performance management systems' use
Authors: Elzinga Taco , Albronda Bé , Kluijtmans Frits
Published: July 2009

Purpose

The purpose of this paper is to substantiate conclusions from De Waal's case study research about the role of behavioral factors in the use of performance management systems.

Design/methodology/approach

De Waal's exploratory research is replicated in four more Dutch organizations. Data were collected through the use of questionnaires, interviews and document research. Data of the additional case studies were combined with De Waal's. Pattern matching was used to compare all case studies. De Waal's initial research design was extended through the inclusion of different levels of matches in the pattern matching exercise.

Findings

Analysis on different levels of matches showed that behavioral factors can be ranked according to their relative importance. The research has demonstrated that it is possible to identify which behavioral factors are the most important ones for the use of a performance management system.

Research limitations/implications

The results of the research are limited to the Dutch situation.

Practical implications

The research findings allow managers to focus their attention on what is most important to improve the use of their performance management systems, and hence to enhance the performance of their company.

Originality/value

This paper is useful for both researchers and practitioners in that it gives interesting new insights into the relative importance of behavioral factors in the use of performance management systems.
Assessing the effectiveness of business consulting in operations development projects
Authors: Ajmal Mian M. , Nordström Fredrik , Helo Petri
Published: July 2009

Purpose

The purpose of this paper is to address the question of the effectiveness of business consultants in operations development projects. It does this by analysing the results of collaboration between a multinational firm and business consultants who applied the theory of constraints to a series of development projects.

Design/methodology/approach

Following the presentation of an overview of business consultants and the need to measure the effectiveness of business consulting practices, the paper presents empirical data on the return on investment achieved from 20 development projects in the multinational company under study.

Findings

The findings indicate that the involvement of business consultants in development projects has a positive impact on outcomes and can be justified in financial terms.

Research limitations/implications

The generalise ability of the results in service sector companies remains to be tested. The data is limited to a set of internal operations development consulting projects within one multinational company. Management consultants and managers will benefit from the results of study.

Originality/value

The study provides important insights into the assessment of the effectiveness of business consultants in operations development.
The elusive employee stock option plan‐productivity link: evidence from India
Authors: Dhiman Ramesh Kumar
Published: July 2009

Purpose

The purpose of this paper is to delineate the effect of employee stock option plan (ESOP) on the corporate productivity in view of ever increasing competition among the firms to retain and attract qualified and competent manpower in India.

Design/methodology/approach

Based on productivity characteristics in pre‐ESOP adoption period (one year), the research paper studies the ESOP impact on corporate productivity in a three year post adoption period for a sample of 202 listed Indian companies. Nearly half of these companies (99 companies) were classified into control group (non‐ESOP companies) and the others (103 companies) were categorized as experimental group (ESOP companies). Asset turnover ratio (ATO), based on the exhaustive literature survey, was identified and considered exclusive productivity parameter in this research. The significance of productivity differentials among the control and experimental groups were tested using the Wilcoxon Signed Rank test.

Findings

The empirical evidence supports the hypothesis that ESOP does not improve the productivity performance of Indian corporate sector in short‐run. Furthermore, the variation of the two respective variables is not significant at any level of risk against the alternate hypothesis for 103 ESOP companies.

Research limitations/implications

The results reported in the study are based on the single productivity parameter (ATO) for three year post ESOP measurement period, which is also limiting factors for obvious reasons.

Practical implications

The outcomes of the study have wider implications for the HR professionals (designing a prudent ESOP plan), HR executives (ESOP implementations and its pitfalls) and the corporate‐employee combine for enriching mutual benefits for harmonious industrial relations.

Originality/value

The research paper under consideration is expected to be a valuable contribution to the existing literature and to different stakeholders identified above.