bluuebunny/crossref_metadata_2025 huggingface dataset:
Geography Of Stock Returns: Evidence From An Emerging Market
Authors: Farooq Omar , Hassani Molk Kadiri
Published: February 2016

Does location of corporate headquarters matter for stock returns? Do investors prefer to invest in firms located near them? This study aims to answer these questions by using a large dataset of stock returns for firms listed at the Bombay Stock Exchange during the period between 2003 and 2007. Our results show that stock returns of firms show a strong degree of co-movement with stock returns of other firms located in the same city as them. Interestingly, we also show that this degree of co-movement goes down with firms located in the neighboring cities. We also show that stock returns of firms exhibit the least degree of co-movement with firms that are located farther from the neighboring cities. Furthermore, our results show that this degree of co-movement in stock returns is increasing over the period of time. Our results are consistent with prior literature that considers location as an important determinant of stock returns.
 
Media Independence And Firm Performance: Evidence From Emerging Stock Markets
Authors: Farooq Omar
Published: February 2016

Can media have any influence on firm performance? Do firms incountries with more independent media perform better than firms with lessindependent media? This paper seeks to answer these questions and aims todocument the relationship between media independence and firm performance inemerging markets. Using a dataset fromtwenty-four emerging markets, we show a significantly positive relationshipbetween media independence and firm performance. We argue that independentmedia reduces information asymmetries for stock market participants.Consequently, it becomes hard for managers to expropriate, thereby improvingperformance of firms. We also show that the relationship between mediaindependence and firm performance is more pronounced in firms that have higheragency problem. For instance, our results show stronger impact of mediaindependence on firms with no dividend payouts, no analyst coverage,concentrated ownership, and higher level of operational complexity. It showsthat media can play a substitute for traditional governance mechanisms inemerging markets.
Board Composition And Accountability Of Non-Profit Organizations
Authors: Arshad Roshayani , Abu Bakar Noorbijan , Thani Nuraadhiah Yusoff , Omar Normah
Published: February 2016

Non-profitorganizations (NPOs) are generally subjected to less stringent regulatory requirementsthan for-profit organizations. As such, NPOs are generally reluctant to sharemore comprehensive information with the various stakeholders and may notrecognize the need for accountability. The purpose of this study is to examinethe influence of board composition on the level of accountability for NPOs inMalaysia. Board composition and the level of accountability are obtained fromthe content analysis of annual reports of 234 societies registered withRegistrar of Societies in Malaysia for the financial period 2010. The level ofaccountability (ADI) examined is based on two main components, transparency andcompliance while board composition examined in this study consists of boardsize, board professionalism and board members with political connections.Results of this study provide evidence that the overall level of accountabilityis low. This infers that more comprehensive regulatoryrequirements or at the very least, the existence of best practices with regardsto accountability can be a useful mechanism in enhancing the accountability ofNPOs. In addition, theresults also highlight that an optimum mix of board members mattersin ensuring efficient resource strategy and consequently enhance the level ofaccountability in NPOs. Overall,the findings in this study provide useful information to regulators in theircontinuous efforts to improve accountability in the non-profit sector. This inturn can enhance the credibility and sustainability of the NPOs.
The Short- And Long-Term Performance Of Privatization Initial Public Offerings In Europe
Authors: Hamdi Haykel , Nguyen Duc Khuong , Obeid Hassan
Published: February 2016

This article investigates the return behaviorof privatization initial public offerings (PIPOs) in Europe over both theshort- and long-run horizons. Using data from a sample of 162 PIPOs over theperiod 1986-2008, we show that European PIPOs outperform, in terms ofrisk-adjusted abnormal returns, a benchmark market index and a portfoliocomposed of 162 European private IPOs, regardless of the horizon of analysis.Our results are important for both investors and policymakers with respect totheir investment and privatization decisions, and also allow a betterunderstanding of the financial performance behavior of the privatizedstate-owned enterprises.
Herding Behavior Around US Macroeconomic Announcements
Authors: Belgacem Aymen , Lahiani Amine
Published: February 2016

This paper investigates the herding behavior of investors in 18 European countries around US macroeconomic announcements. By considering daily data from February 3, 2000 through July 31, 2011 and a large sample of US macroeconomic indicators, we find evidence that the intentional herding behavior intensity decreases when accounting for US macroeconomic news. The herding behavior is adopted intentionally in some European countries namely France, Switzerland and Portugal while spuriously in Greece. In addition to herding with their respective domestic markets, investors in the first three countries herd around some US macroeconomic announcements, suggesting that these investors reveal a somewhat spurious herding behavior. Findings support evidence that investors in Belgium, Finland and Ireland adopt rational investment decision making with regard to their respective domestic markets, but show pronounced herding behavior around US announcements mainly the case of Finland and Ireland.
An Application Of Data Envelopment Analysis To Benchmark CEO Remuneration: A South African Study
Authors: Theunissen Marli , Oberholzer Merwe
Published: February 2016

The purpose of the study is twofold; firstly, to use data envelopment analysis (DEA) to estimate the technical efficiencies of Johannesburg Stock Exchange (JSE)-listed companies (per industry) to convert the multiple components of CEO remuneration into multiple company determinants, namely size and performance indicators, and secondly, to develop an efficiency frontier to serve as a benchmark to suggest acceptable CEO remuneration levels. An empirical study was executed on a sample of 221 JSE-listed companies. Cross-sectional data of CEO remuneration and company determinants were obtained from the McGregor BFA database for the 2010 financial year. The study found that CEOs from 80 of the 221 companies included in the sample emerged as the benchmark CEOs and formed the efficiency frontier against which inefficient CEOs were compared. The practical value is that remuneration committees can use this model, which is based on best practices, to simplify the structuring of reasonable CEO remuneration packages.
Transmission Of Volatility Shocks Between The Equity And Foreign Exchange Markets In South Africa
Authors: Bonga-Bonga Lumengo
Published: February 2016

The paper assesses the dynamic interaction between exchange rates and stock market volatility in South Africa by making use of the generalised impulse response function obtained from a bivariate VAR model. Volatility variables in the VAR system are obtained from a family of GARCH models based on criteria such as covariance stationarity and leverage effects. The findings of the paper show that foreign exchange conditional volatility responds positively to volatility shocks to the equity market. Nonetheless, the response of the equity market conditional volatility to volatility shocks to the foreign exchange market is short-lived and neutral for most of the time horizon periods. The paper attributes this finding mainly to the extent of foreign participation in emerging equity market in general and the South African equity market in particular.
Socially Responsible Investment And Macroeconomic Stability In South Africa: An Application Of Vector Error Correction Model
Authors: Muzindutsi Paul F. , Sekhampu Tshediso J.
Published: February 2016

The study reported in this article investigated the relationship between the Social Responsible Investment (SRI) sector and macroeconomic stability in South Africa. Johansen co-integration approach and Vector Error Correction Model (VECM) were employed to test the relationship between SRI Index and a set of macroeconomic stability variables (inflation, real exchange rate, interest rates and money supply). Secondary data for the period April 2004 to December 2012 was analysed. There was a long-run association between all the variables during the period under consideration. However, the inflation rate, real effective exchange rate and money supply were not significant in predicting short-run changes in the SRI Index. A significant short-run relationship between SRI Index and the difference between long term and short-term interest rates (term structure) was observed. Macroeconomic variables are significant in explaining the behavior of the South African SRI sector in the long-run.
Intellectual Capital In Mexican SMEs From The Perspective Of The Resource-Based And Dynamic Capabilities Views
Authors: Daou Alain , Karuranga Egide , Su Zhan
Published: February 2016

This paper combines the resource-based and dynamic capabilities views to examine intellectual capital in Mexican small and medium enterprises (SMEs) and its relation to competitive advantage. Following an exploratory approach, this paper relies on face-to-face interviews with managers to take an in-depth look at the three components of intellectual capital: human, organizational, and relational capital. Further, a SME typology is proposed and the examined companies are categorized accordingly. Dynamic SMEs have instituted internal and external processes to respond rapidly to change, allowing them to sense opportunities and threats and subsequently benefiting from competitive advantages. This analysis can help both managers and policymakers put appropriate programs in place to encourage SME development and growth by identifying the impact of intellectual capital. The generalizability of the results is limited by the small sample size and the focus on one geographic region in Mexico. This study contributes to the limited literature on intellectual capital in SMEs in emerging markets. Moreover, very few papers have analyzed intellectual capital from the perspective of the dynamic capabilities view.
Carbon Tax Pricing And The Social Cost Of Carbon: The Case In The South African Motor Vehicle Manufacturing Industry
Authors: Pillay Suren , Buys Pieter W.
Published: February 2016

Since the implementation of carbon tax on motor vehicles in South Africa during 2010, the pricing of the tax has never been challenged or assessed. The purpose of this study is to gauge the reasonability of the carbon tax price in South Africa as applicable to the motor vehicle manufacturing industry. A detailed review is performed to determine the adequacy of the carbon tax price by comparing the social cost of carbon from motor vehicle emissions against the revenue raised from carbon tax levied on motor vehicles in the same period. Empirical research includes an exploratory questionnaire into the adequacy of the carbon tax price in South Africa with input data from multinational motor vehicle manufacturers operating in South Africa. The findings from the literature review confirm that although the respondents do not consider the level of carbon tax price as adequate to be relevant for the social cost of carbon, the revenue raised from this tax exceeds the social cost of carbon leading to the conclusion that the tax is adequately priced.
Understanding Return And Volatility Spillovers Among Major Agricultural Commodities
Authors: Lahiani Amine , Nguyen Duc Khuong , Vo Thierry
Published: February 2016

We provide comprehensive evidence of return and volatility spillovers for the four major agricultural commodities including sugar, wheat, corn and cotton over the recent period 2003-2010. Our results from the recent VAR-GARCH model of Ling and McAleer (2003) that allows for simultaneous shock transmissions of conditional volatilities of returns across commodities show the existence of substantial volatility spillover linkages between agricultural commodity returns and volatilities. Our findings are also particularly insightful for optimal portfolio designs and risk management through the computation of optimal weights and hedge ratios.
The Determinants Of Corporate Social Responsibility Disclosure: Evidence From China
Authors: Wang Jianling , Song Lin , Yao Shujie
Published: February 2016

Employing the content analysis approach, this paper aims to identify the determinants of corporate social responsibility disclosure (CSRD) in China using the annual reports of over 800 A-share listed firms on the Shanghai Stock Exchange. We find that CSRD is positively associated with firm size, media exposure, share ownership concentration and institutional shareholding. Moreover, firms in High-Profile environmentally sensitive industries tend to disclose more corporate social responsibility (CSR) information than those in Low-Profile environmentally sensitive industries, supporting the view that political cost is the primary constraint for Chinese listed firms. Our results provide important insights for academics interested in the CSR issue in emerging economies, for enterprise managers interested in exploiting the annual reports as a strategy to legitimize their corporate social conduct, and for government regulators committed to improving CSR activities and information disclosure.
Adverse Selection, Debt Capacity And Corporate Growth: An Industry Life Cycle Perspective
Authors: Chaibi Hasna
Published: February 2016

This paper examines the industry impact on financing corporate growth. According to underinvestment and overinvestment problems, ?rms are more likely to have less debt capacity in their growth stage of life cycle. However, it is known that new economy firms have higher levels of growth rate, return and risk, and particularly undertake more technical projects. Therefore, I test the hypothesis that debt capacity during the growth stage of life cycle is affected by New Economy. My empirical analysis covers U.S. companies listed on NYSE, AMEX and NASDAQ in the period of 1990-2010. I find that growth firms have significantly smaller debt capacity. Nevertheless, supporting the life cycle theory of financing that emphasizes the adverse selection problem faced by new economy firms, this link tends to be less prominent in the new economy industry. The results complement prior studies that have found significant relationship between firm growth and corporate debt capacity by confirming the important role played by the industry membership (New Economy) in determining the intensity of this relation.
Corporate Governance, Principal-Principal Agency Conflicts, And Disclosure
Authors: Ben Ali Chiraz
Published: February 2016

This study investigates the relation between corporate governance and disclosure quality in a context of principal-principal conflicts and poor investor protection. Overall, the empirical results suggest that minority expropriation risk harms disclosure quality. Specifically, we find that disclosure quality is negatively associated with ownership concentration, major shareholder voting rights, the existence of double voting rights, and family control. The results obtained also evidence a positive relationship between disclosure quality and the existence of executive stock option plans giving support that this mechanism plays a key role in corporate transparency.
A Model To Determine Capital Needs For Efficient Boer Goat Farming
Authors: Oberholzer Merwe , Buys Pieter W. , Fourie Wilbrie
Published: February 2016

The purpose of this study is to determine the optimal capital needs to establish a Boer goat farm. A study was performed to simulate the financial performance of 55 scenarios, with varying farm sizes and varying levels of capital employed. These results formed the basis to create a data envelopment analysis model, where farm sizes and capital employed are used as input variables versus eight financial performance indicators as output variables. The study found that the scenarios are technically efficient, but only 23 of the 55 scenarios are fully scale efficient, with six scenarios operating on a scale that is too small and 26 operating on a scale that is too large, which implies that 32 of the scenarios did not achieve economies of scale. Furthermore, nine of the ten farm sizes used are not scale efficient when using 100% of their capital needs. The study therefore concludes that the financial success of starting a South African (SA) Boer goat farm is locked up in the natural growth of the herd, with the practical implication that aspirating SA Boer goat farmers will be most efficient when using a limited amount of capital and not immediately stock the farm at the maximum level of animals, but to stock it only partly and wait for the gain in the growth of the herd.
Does Strategic Alliance Matter In Managing Innovation In China?
Authors: Liu Li (Isabella) , Jasimuddin Sajjad M. , Faulkner David
Published: February 2016

Innovation is the route to competitive advantage for a firm. In this regard, strategic alliances, particularly international joint venture (IJV), is an effective vehicle for creating innovation capabilities. This paper attempts to explore innovation activities in IJVs between Chinese and Western companies. China is currently largely an OEM country that supplies the whole world with a wide variety of products. However it still lacks a higher level of innovation. The paper reports a qualitative study conducted at two Sino-Western IJVs about how IJVs can help Chinese companies to become innovative. China has easy access to foreign technology, but is weak in its domestic clustering of technology infrastructure. Sino-Western joint ventures are found useful in creating transferable innovation in China. The paper suggests key success factors for creating innovation capabilities through IJV formation.
The Effect Of The Relationships Between Affiliated Firms On Direction Of Income Shifting Within Business Groups
Authors: Park Kyung Jin , Lim Joohyun , Kim Ki Young
Published: February 2016

In this study, we examined how income shifting performs among affiliates in a business group to maximize the benefits of the entire business group in terms of minimizing the tax burden, with a particular focus on the direction of income shifting between affiliates within the business group. We find that tax-related decision-making for the entire business group is affected by the relationships between the affiliated firms, that is, the ownership structure of the whole business group. To analyze the ownership structure, we use centrality measures in a social network analysis. The results show that affiliates with the higher outdegree-centrality; that is, firms investing more shareholdings in other affiliates have a tendency to perform more income shifting. On the other hand, the affiliates with high indegree-centrality, that is, firms which are owned by other affiliates, were revealed to be given the income shifting from other affiliated firms to minimize the tax burden of the entire business group.
The Effect Of Mobile BI On Organisational Managerial Decision-Making
Authors: Buchana Yasser , Naicker Visvanathan
Published: February 2016

Managerial decision-making has always involved the use of numerous distinct information resources. Modern managerial decision-making processes require a wealth of information that is enhanced and transformed into knowledge in order to take effective action. Mobility in business is increasingly exercising influence on core business processes of organisations. Recent advances in wireless technologies coupled with the rapid growth of mobile devices in business have led to a new era in business computing. Mobile Business Intelligence (Mobile BI) is a system that has been conceived to assist, accelerate and to enhance the managerial decision-making processes. Drawing from an array of previous studies that attempted to measure the value of Business Intelligence (BI) and other IT systems in organisations, this study develops a new kind of measure which is based on an understanding of the distinct properties of Mobile BI systems in an organisational-oriented context.
On The Role Of Management Commitment In Export Performance: A Meta-Analysis
Authors: El Makrini Hind , Chaibi Anissa
Published: February 2016

Research on exporting frequently points the role of management commitment in the export performance of the firm. This article reviews the conceptual, methodological, and empirical insights gained from a systematic analysis of 65 studies conducted on this subject. Undoubtedly, this stream of research has enhanced understanding of the importance of management commitment in affecting exporting activities. However, conceptually, there is still a lack of integral theoretical framework. Methodologically, limitations are identified concerning sampling designs, fieldwork procedures, and analytical methods. Empirically, hypothesized associations between export commitment and export performance lead to conflicting findings. After a presentation of meta-analysis techniques used and articles compiled, our paper provides an original investigation of this issue by implementing three meta-analyses to examine the relationship between commitment to export and export performance. The meta-analysis, more relevant than simple literature surveys, generally leads to the conclusion that there is a significant positive relationship between export commitment and export performance. Moreover, our findings suggest directions for future research in the field.
Impact Of Adopting IAS-IFRS On The Handling Of Accounting Data: The Case Of France
Authors: Boumediene Emna , Boumediene Salem Lotfi , Nafti Olfa
Published: February 2016

In this article we look at the possible relation between the IAS-IFRS, which promotes a present value, and earnings management enhanced by the application of these standards. The aim of this paper is to analyse the impact of the adoption of IAS-IFRS standards on the earnings manipulation used by managers to manipulate their earnings and other accounting information in order to keep the same image in front of investors and shareholders.

We are expanding, to the French context, the problem of information content of the discretionary component of accounting income in connection with the application of IAS-IFRS since 2005.

On the basis of a sample of 96 firms-year observations, selected from France, that adopted the IAS-IFRS since 2005, we studied the relationship of association between accounting variables the impact of the use of IAS-IFRS on discretionary accruals. In other words, we tried to analyse the advantages and disadvantages of the adoption of IAS-IFRS.

The study results show that the manipulation of accounting information existed both before and after the adoption of IAS-IFRS. However, the application of IAS-IFRS accounting standards in France had less motivated managers to manipulate the accounting numbers to increase earnings. Infact, the degree of earnings management is higher before the adoption of IAS-IFRS (the manipulations were 22.06% of discretionary accruals after adoption of IAS-IFRS and 31.28% before).
Role Of Board Size In Corporate Governance And Firm Performance Applying Pareto Approach, Is It Cultural Phenomena?
Authors: Malik Maria , Wan Difang , Ahmad Muhammad Ishfaq , Naseem Muhammad Akram , Rehman Ramiz Ur
Published: February 2016

This paper examines the relationship between board size and firm performance. This relationship is tested in the light of Pareto Approach for Pakistani banking sector. For this purpose a sample of fourteen listed commercial banks of Pakistan are taken for analysis from 2008-2012 on the basis of their performance. Different econometric models are applied to test the relationship between bank performance variables and corporate governance practices in these banks. The results of this study are contradictory with the existing literature of corporate governance variables and firm performance. The most prominent result of this paper is the significant positive relationship between board size and bank performance. It is concluded in the findings that a large board size can enhance the bank performance in Pakistani scenario.
Time-Varying Beta And The Subprime Financial Crisis: Evidence From U.S. Industrial Sectors
Authors: Hasnaoui Habib , Fatnassi Ibrahim
Published: February 2016

In the current study, we investigate the effect of the subprime financial crisis on the time-varying beta of 10 U.S. industrial sectors. We use daily data, during the period 2002 through 2014, and the bivariate BEKK-GARCH model to the conditional capital asset pricing model (CAPM) to create the time-varying betas for the 10 sectors. After controlling for local and global volatilities, the data enable us to confirm the different magnitudes of influence of the subprime crisis on the 10 industrial sectors. The results are important for investors and portfolio managers, and may have policy implications.
How Does Environmental Performance Matter Across Heterogeneously Performing Groups?
Authors: Kim Kyungho , Lim Hyunwoo
Published: February 2016

This study carefully explores how the established relationship among environmental performance, environmental strategy, and financial performance matters across heterogeneously performing groups. For this purpose, we employ a sample of companies operating in heavy polluting industries in the United States from 1991 to 2005. The result showed that the relationship between these variables definitely varies across different levels of environmentally performing groups, such as best, moderate, and worst performing, suggesting that strategic decision makers and public policymakers alike need to be careful not to make easy conclusions: proactive (reactive) environmental strategy leads to better (poorer) environmental performance, and doing well necessarily results in doing good.
How Do Corporate Social Responsibility Activities Influence Corporate Reputation? Evidence From Korean Firms
Authors: Mukasa Kayondo Denis , Lim Hyunwoo , Kim Kyungho
Published: February 2016

This study applies the stakeholder theory and explores how corporate social responsibility (CSR) activities are associated with corporate reputation. In particular, we investigate how charitable contributions and toxic emissions as proxies for CSR activities are related with shareholder returns as a proxy for corporate reputation. This study employs a sample of Korean firms reported in the Korea sustainability index database between 2010 and 2012. The results find that charitable contributions and toxic emissions are positively and negatively related with shareholder returns, respectively. In addition, the results show that current shareholder returns are likely to be influenced by past charitable contributions and toxic emissions, suggesting that firms may develop current reputational competences by leveraging on past CSR activities.
Antecedents Of Customer Loyalty In The Retailing Sector: The Impact Of Switching Costs
Authors: Stan Valentina
Published: February 2016

The objective of this work is to propose and test a conceptual framework that considers customer satisfaction, store image, perceived value and switching costs as antecedents of customer loyalty. In addition, we examine the moderating effect of switching costs in the relationship between loyalty and its antecedents. While customer satisfaction, store image and perceived value are important determinants of loyalty, switching costs have the same strong impact on customer loyalty as satisfaction. The findings prove that switching costs have a moderating effect on the relationship between store image and loyalty, as well as between perceived value and loyalty.
The Role Of Board Characteristics In Mitigating Management Opportunism: The Case Of Real Earnings Management
Authors: Talbi Dorra , Omri Mohamed Ali , Guesmi Khaled , Ftiti Zied
Published: February 2016

This study seeks to provide empirical evidence of the efficacy of board characteristics in constraining management opportunism, measured by real earnings management. The paper uses regression analysis to document empirical evidence regarding the impact of the independence of boards of directors and the independence of committees on real earnings management in 7,481 US firms over the period 2000 to 2009. This study contributes to empirical studies on the role of corporate governance in financial reporting quality by demonstrating the role of the independence of boards of directors and the independence of committees in constraining real earnings management. These results should contribute to providing an orientation for future regulators regarding possible amendments, especially in the wake of the current financial crisis.
Signaling Firm Performance Through Corporate Voluntary Disclosure
Authors: Hamrouni Amal , Miloudi Anthony , Benkraiem Ramzi
Published: February 2016

The present study empirically investigates the link between corporate voluntary disclosure and firm performance. The empirical analyses show a positive relationship between disclosure indexes and firm performance proxies. They provide evidence that the level of voluntary information disclosed in annual reports plays a significant signaling role of firm performance. However, the extent of this role depends on the nature of the voluntary disclosure, i.e. strategic, financial or corporate governance information.
Seasonality In Mutual Fund Flows
Authors: Choi Hyung-Suk
Published: February 2016

In this paper I establish the presence of seasonality in cash flows to U.S. domestic mutual funds. January is the month with the highest net cash flows to equity funds and December is the month with the lowest net cash flows. The large net flows in January are attributed to increased purchases, and the small net flows in December are due to increased redemptions. Thus, the turn-of-the-year period is the time that most mutual fund investors make their investment decisions.
The Impact Of Financial Crisis On Islamic And Conventional Indices Of The GCC Countries
Authors: Miniaoui Hela , Sayani Hameedah , Chaibi Anissa
Published: February 2016

We study performance of Islamic and conventional indices of the Gulf Cooperation Council (GCC) countries in the wake of financial crisis of 2008 and test whether Islamic indices were less risky than conventional indices. We make use of data of the six GCC markets as well as the Dow Jones Islamic Market Index GCC. The mean and variance of each of the indices are analyzed based on augmented GARCH models. The results show that the financial crisis impacted on the mean returns of Bahrain, the other indices remained unaffected. The financial crisis, however, impacted volatility in three GCC markets (Kuwait, Bahrain, and the UAE), while the impact on the remaining markets (Saudi Arabia, Oman, and Qatar) and the Islamic index was insignificant. More interestingly, we show that the Islamic index did not exhibit lower volatility than its conventional counterparts.
Insider Ownership And Firm Performance: A Resource Dependence Perspective
Authors: Chou Te-Kuang
Published: February 2016

The purpose of this study is to examine the empirical relationship between insider ownership and firm performance. Based on resource dependence theory, this study argues that the positive convergence-of-interests effect and the negative entrenchment effect can coexist in various industrial settings. Fixed-effect panel data regression models are applied to a sample of 1,156 effective observations. To reflect the contextual role of resources, we defined industrial settings along with industrial complexity and firm scale dimensions. The empirical results supported our research hypotheses, showing that insider ownership exerts a positive effect on firm performance in a high-complexity and large-scale setting, but a negative effect in a low-complexity and small-scale setting. The results of this study imply that contextual fitness must be deliberately considered to determine effective regulations of corporate governance. In addition, this study contributes a new aspect to related discussion, which synthesizes conflicting theoretical arguments by introducing the contextual role of resources.
Do Women On Boards And In Top Management Reduce Earnings Management? Evidence In France
Authors: Lakhal Faten , Aguir Amal , Lakhal Nadia , Malek Adnane
Published: February 2016

The purpose of this paper is to examine the effect of gender diversity on the boardroom and in top management positions on earnings management by French-listed firms. Based on a sample of 170 firms over 4 years, we find that the proportion of women on the board standing as a director or a chair reduces earnings management. This finding suggests that women are effective on their monitoring role and are then considered as a crucial corporate governance device. We also find that the relationship between the presence of at least three women on the board and earnings management is negative suggesting that by increasing the number of women on board through regulation and legislation, French firms are likely to enhance the effectiveness of the board to better detect earnings management. However, women standing in CEO and CFO positions do not affect earnings management practices. These findings suggest that efforts made by political bodies to promote equality between men and women on boards are beneficial for French-listed companies by limiting earnings management practices. However, regulating or imposing a quota of women on boards can create a temporal shortage of qualified women available to take up such positions.
Bridging the Knowing/Doing Gap to Create High Engagement Work cultures
Authors: Joyner Fredricka F.
Published: February 2016

The magnitude of investment made by U.S. organizations in the training and development of individuals is significant, as business leaders strive to implement strategies to create high engagement work cultures. Most initiatives are training-based and aimed at managers, and enjoy limited success. The question then arises, are the managers failing to grasp what they are taught, or are they failing to implement it? Through a qualitative analysis of both student/employee and management/employer responses regarding actions and behaviors linked to high engagement work cultures, I establish strong support for the argument that managers do in fact know what factors create high engagement environments, as do their employees; lack of training is not the culprit. Hence, I explore management perceptions in order to discover what barriers prevent them from implementing what they know is necessary. By comparing perceived barriers to known qualities of a high engagement work cultures, I suggest strategies for reducing barriers and increasing success. These strategies can then be used to identify the optimal arenas in which organizations can direct investments in order to provide appropriate resources and support to managers responsible for creating high engagement work cultures. This small yet disciplined qualitative research study sets the stage for future research studies.
Can A Commercially Oriented Brand Be Authentic? A Preliminary Study Of The Effects Of A Pro-Business Attitude On Consumer-Based Brand Authenticity
Authors: Pace Stefano
Published: February 2016

The scholarly literature and general feeling support the idea that brands that are overly business-minded and commercially oriented are not authentic. Typically, consumers do not regard big corporations as authentic, due to the perception that corporations focus on making profit and their business-based mindset. In particular, consumers perceive commercially oriented brands are insincere. Sincerity is one of the three facets (quality commitment and heritage are the other two) that form consumer-based brand authenticity (Napoli, Dickinson, Beverland, & Farrelly, 2014). Contrary to that long-held assumption, this study suggests that consumers may perceive commercially oriented brands are sincere. A positive attitude toward business may increase the perceived brand sincerity. The results of this empirical research confirm the brand authenticity scale developed by Napoli et al. (2014) by showing the conditions under which commercially oriented brands may enter the group of sincere brands.
Determinants Of Stock Option Use By Chinese Companies
Authors: Luo Lei
Published: February 2016

Using a sample of 225 stock option grants over the period January 2006 to June 2013, we examine the economic determinants of stock option use in Chinese firms from the optimal contract and managerial power approaches. We investigate whether the same economic factors can explain stock option awards to different types of target grantees (including directors and senior executives, technical and business personnel, and special talents introduced in the future). In consistent with the optimal contract theory, we find that the scope of stock option plans is negatively associated with ?rm size, dividend dummy, and three ownership measures (managerial ownership, blockholder ownership, and foreign ownership). Furthermore, we find that the scope of stock option plans is positively related to book-to-market ratio and prior stock returns, but the coefficients are significant only when the stock options awards cover senior managers. We also find that the impact of risk is different when options are targeted to different types of employees. In consistent with the managerial power theory, we ?nd that the scope of stock option plans is inversely related to state ownership. As for the other economic factors, their degree of impact is found to be different across a broad base of employees. In general, ownership variables are more relevant to key technical and business personnel, while firm characteristics variables are more relevant to top management.
Could Face Presence In Print Ads Influence Memorization?
Authors: Droulers Olivier , Adil Safaa
Published: February 2016

A large amount of literature in psychology and neurosciences demonstrates that attention is preferentially and automatically oriented toward faces. This stimulus is fixed longer and processed faster compared to other classes of visual stimuli (objects). This article investigates if and how face presence in print ads affects the memorization of ads content. A folder test procedure was used where ads, with or without faces, were inserted. Findings suggest that face presence in ads image positively influences ads memorization. Implications for advertising conception and promotion campaigns are discussed.
Cost Of Debt And Dividend Policy: Evidence From The MENA Region
Authors: Farooq Omar , Jabbouri Imad
Published: February 2016

How does dividend policy effect cost of debt in emerging markets? Does it increase the perceived conflict of interests between creditors and shareholders or vice versa? This paper seeks to answer these questions by documenting the relationship between dividend payout ratios and cost of debt in emerging markets. Using a dataset from the MENA region, we document a significantly negative relationship between dividend payout ratios and cost of debt during the period between 2005 and 2011. We argue that high dividend payouts reduce information asymmetries. Consequently, creditors demand lower return for providing their capital to firms. We also show that the negative relationship between dividend payout ratios and cost of debt are more pronounced in firms with higher information asymmetries. It indicates that value relevance of high dividend payout ratios is more in firms that have higher information asymmetries. These firms have scarcity of information. Therefore, whenever information environment improves, it is highly valued by creditors.
The Relationship Between Political Skill And Employee Voice Behavior From An Impression Management Perspective
Authors: Xue Xian , Song He Yi , Tang Yu Jie
Published: February 2016

This research focused on the self-serving motivation of voice behavior from an impression management perspective, different from the previous studies on the altruistic motivation. The purpose of this study was to construct a multilevel theoretical model that proposed how political skill operates to exercise effects on employee voice behavior in the context of organizational politics climate from an impression management perspective. We hypothesized the positive relationship between political skill and employee voice behavior, and the mediating role of impression-management motives, and then examined the cross-level effects of organizational politics climate on the individual-level employee voice phenomenon. An evaluation of research limitations, suggestions for future research, contributions to the literature and practical implications were discussed finally.
Motives Behind The Integration Of CSR Into Business Strategy: A Comparative Study In French SMEs
Authors: Vo Linh-Chi , Delchet-Cochet Karen , Akeb Hakim
Published: February 2016

Corporate social responsibility (CSR) in the context of small and medium enterprises (SMEs) has become an important and substantial area of study for quite a few years. In this literature, while so much research has shed light on what makes SMEs integrate CSR into their business strategy, the existing results regarding their economic, social, and environmental motives are contradictory. In this article, we aim at making a contribution by conducting an integrative study. More specifically, we compare the roles of economic, social, and environmental motives in driving SMEs to make CSR become an integral part of their strategic planning and routine operational performance. Our sample includes 155 French SMEs.
Does Public Debt Matter For Economic Growth?: Evidence From South Africa
Authors: Baaziz Yosra , Guesmi Khaled , Heller David , Lahiani Amine
Published: February 2016

This paper investigates the dynamic relationship between accumulated public debt ratio and real GDP growth in the South African economy over the period 1980-2014. Using two macroeconomic control variables – inflation rate and Openness trade – the link between public debt and real GDP growth is found to depend upon the level of indebtedness of the country. Indeed, public debt in South Africa becomes an impediment to economic growth if it crosses the limit of 31.37% of GDP. Our empirical results have therefore important implications for fiscal policymakers in South Africa to foster economic growth in a context of high public debt level.
An Internal Marketing Perspective Within A Recruitment Service Environment In South Africa
Authors: Roberts-Lombard Mornay , Burin Candice , Klopper HB
Published: February 2016

The primary objective of the study is to determine the influence of internal marketing on the brand image of a recruitment agency brand in South Africa. The perusal of the literature could not identify any direct studies on how the elements of the internal marketing mix of product, price, promotion, distribution, people, processes and physical evidence are ultimately linked to brand image within a recruitment agency environment in South Africa. This raises the question as to whether or not internal marketing has a positive influence on the brand image of recruitment agencies among their clients. Therefore the relationship between internal marketing and brand image needs to be explored, as this relationship could provide a means of reducing employee turnover and enhancing the performance and profitability of recruitment agencies. The population for the study was drawn from all registered recruitment agencies listed under the Association of Personnel Services Organisations (APSO). The selected sample of respondents was surveyed through an online self-administered survey distributed via a link in an email. A total of 1 123 questionnaires were completed. The data was analysed using multivariate regression statistics. The application of an internal marketing approach enables recruitment agencies to minimise employee turnover, aiding these agencies to gain strong brand images that result in higher levels of competitiveness and profitability. Successful internal marketing should have a positive influence on employee attitudes and actions and therefore enhance customer satisfaction. The integration of internal marketing into the organisation’s overall marketing strategy is therefore critical.
Causality And Cointegration Of Currency-Adjusted Stock Indices: Evidence From Close-Of-Day Data
Authors: Jalbert Terrance
Published: February 2016

A recent line of research develops currency adjusted stock indices.  These indices incorporate the effects of both stock value changes and underlying currency value changes to measure wealth changes.  This paper extends the extant literature by examining time series properties of currency-adjusted indices.  This research examines daily data for eight existing stock indexes and their currency adjusted counterparts for the period 1993-2013.  The paper includes cointegration and Granger causality analyses.  Results show cointegration between each combination of series examined.  About half the pairwise index combinations display bidirectional Granger causality.
The Effect Of Credit Rating Categories On Analysts' Information Environment: Evidence From The Korean Market
Authors: Lee Jaehong , Yoo Youngtae
Published: February 2016

Credit ratings have been widely utilized for their ability to convey information to investors easily and quickly. Credit ratings agencies have prospered due to their superior positions in the information-gathering process in the business world. However, recent news about grade reversals, abrupt downgrades, and unanticipated bankruptcy suggests that the market value of credit ratings may have been overstated. Hence, in this study, we evaluate the legitimacy of the suggestion that credit rating categories may provide analysts with useful information.

 

In order to measure the variables in the information environment, we use analyst forecasts. Differences between forecasts in the various rating categories are found to be statistically significant. Furthermore, a comparative analysis of information intensity for ungraded firms with that of other firms demonstrates that overestimates of ungraded firms create problems of the same nature as those in the information environment of firms with speculative grades.

 

In the inter- and intra-category analyses, various factors determine the transparency of the information environment for firms of investment grade, including accruals quality, conservatism, the interest coverage ratio, and the proportion of intangible assets. However, for less credible firms, such as speculative or ungraded firms, these determinants do not function as expected. We find that the interest coverage ratio may be used to provide detailed differentiation between less credible firms. This paper introduces a new approach to credit rating categories and related strategies, emphasizing the importance of the ability to repay debt.
A Survey Of Stock Repurchase Motivations And Practices Of Major U.S. Corporations
Authors: Tsetsekos George P. , Kaufman, Jr. Daniel J. , Gitman Lawrence J.
Published: February 2016

This study reports the findings of a comprehensive mail questionnaire survey of the stock repurchase programs of major U.S. corporations. Emphasis is placed on understanding the precipitating circumstances and motivations leading to stock repurchases. Contrary to recent studies, it appears that stock repurchases are viewed as financing rather than investment decisions. While the desire to change the capital structure was the most frequently expressed motivation, a majority of the responses were consistent with the signaling hypothesis. This fining suggests that signaling may indeed be as important as suggested by prior theoretical and empirical research.