bluuebunny/crossref_metadata_2025 huggingface dataset:
Embracing The Future: What Can Accounting Graduates Expect?
Authors: Corkern Sheree M. , Parks Sandra B. , Morgan Mark I.
Published: February 2016

This article informs accounting educators and graduates about key issues in the accounting profession of today, which has entered a new age, and accounting educators and advisors, old and new, must be informed about future prospects for students and make students aware of what they can expect as accounting graduates. Passing this knowledge to students early on provides them with advanced understanding of what the future holds for accounting professionals and will allow students to better embrace their future once they graduate. This article emphasizes supply and demand, hiring and salary practices, and potential job opportunities for the accounting graduate. Information on the various certifications available for accountants and the interview process is included as well. The final section within the article offers insight into the future of the accounting profession. With this paper, educators and advisors gain knowledge to assist accounting students with their future career search process. Students will still need assistance to help them navigate the new environment that they are about to enter, but a clearer understanding of what to expect provides a better foundation on which to build a successful career.
Back To Basics: Algebraic Foundations Of The Statement Of Cash Flows
Authors: Joyner Donald T. , Banatte Jean-Marie , Dondeti V. Reddy
Published: February 2016

The indirect method for preparing the statement of cash flows, as described in many standard textbooks, involves an item-by-item approach, telling you to add to or subtract from the net income, the increases or decreases in the balance sheet items, such as accounts payable or accounts receivable. Many business students, especially at the undergraduate level, find these black-box-rules confusing. In recent years, several articles have appeared in the accounting literature, exploring the link between the algebraic foundations and the enumeration of items in the statement of cash flows. In this paper, an explanation is provided, through an analysis of the basic algebraic equation of the balance sheet, for the black-box-rules of the indirect method in a simple and concise manner.
Market Orientation And Performance: Does Organizational Strategy Matter?
Authors: Kumar Kamalesh , Subramanian Ram , Strandholm Karen
Published: February 2016

Data from a survey of 159 hospitals was used to test the relationship between market orientation and firm performance for low cost and differentiation strategies. Hospitals pursuing a differentiation strategy had stronger market orientation than those pursuing a cost leadership strategy. Market orientation had a more positive impact on the performance of organizations pursuing a differentiation strategy than on those pursuing a cost leadership strategy. In the cost leader group, the inter-functional coordination component of market orientation significantly affected firm performance, while in the differentiator group the customer orientation and competitor orientation components of market orientation had significant impact on performance. The implications of these findings for managers also are discussed.
A Fresh Look At Economic Value Added: Empirical Study Of The Fortune Five-Hundred Companies
Authors: Abdeen Adnan M. , Haight G. Timothy
Published: February 2016

Rapid and complex changes in the economic and business environment are posing serious challenges to today’s business executives. Meeting these challenges requires effective measures for control and performance evaluation. This article focuses on the uses, benefits and limitations of economic value added (EVA) as a value creation measure. Calculation of this trendy measure is complicated because of the many adjustments needed to convert the generally accepted accounting principles (GAAP) based income to economic income. The article compares the performance of EVA user companies with non-user Fortune 500 companies for the years 1997 and 1998. It shows that users performance means profits as percentage of revenues, assets, and stockholders’ equity were higher than the means of non-users. However, the means for 1998 earnings per share (EPS), EPS change from 1997 and EPS growth for the years 1988-1998 were lower for the EVA user companies. EVA will become less popular in its use as an instrument of control and performance evaluation. Therefore, the conclusion of this research is not in support of EVA use as a measure of value creation to stockholders.
Determinants Of Firm Leadership Structure
Authors: Fosberg Richard H. , Rosenberg Sidney
Published: February 2016

In this study, we seek to ascertain some of the factors that determine the leadership structure that a firm chooses to adopt. Our main empirical finding is that both share ownership by officers and directors and by blockholders is inversely related to the probability that a firm will have a unitary leadership structure. These results imply that officers, directors, and blockholders believe that a dual leadership structure is the optimal leadership structure for most firms and that greater share ownership by these groups motivates them to see that the firm adopts that optimal leadership structure. We are also able to confirm Brickley, Coles, and Jarrell’s (1997) finding that CEO tenure in office is directly related to the probability that a firm will have a unitary leadership struc- ture. This finding is consistent with the pass-the-baton theory of CEO/Chair succession proposed Vancil (1987). 
Testing Wagner's Law For The European Union Economies
Authors: Karagianni Stella , Pempetzoglou Maria , Strikou Soultana
Published: February 2016

This paper examines the validity of Wagner’s law in the EU-15 member-states for the time period 1949-1998. For investigating the existence of a long run and causal relationship between government expenditure and national income, three of the most advanced econometric methods, the Engle-Granger cointegration test, the Johansen maximum likelihood method and the Granger causality test have been applied to six alternative functional interpretations of the law. The results are very ambiguous and our main findings suggest that the validity or invalidity of Wagner’s law is very sensitive to the method applied.
Attitudes Toward Dysfunctional Audit Behavior: The Effects Of Locus Of Control, Organizational Commitment, and Position
Authors: Donnelly David P. , Quirin Jeffrey J. , O'Bryan David
Published: February 2016

Dysfunctional audit behavior (DAB) is associated with decreased audit quality (Public Oversight Board 2000). While recent studies suggest that dysfunctional audit behavior is a widespread problem (Smith 1995; Otley and Pierce 1995), extant research fails to adequately explain the causes or determinants of this form of deviant behavior. This study develops and tests a theoretical model that identifies locus of control, position, and organizational commitment as antecedents of attitudes toward DAB. Using a cross-organizational design and a path analysis technique, survey results from 113 auditors support the theoretical model. 
Impact Of The Internet On Internal Service Quality Factors: The Travel Industry Case
Authors: Kaynama Shohreh A. , Black Christine I. , Keesling Garland
Published: February 2016

The growth of multichannel and pure-play companies attests to the changes that technology has brought to business processes. These changes have an effect on the quality of service delivery and customer satisfaction. In this qualitative study, the Service Quality Model was applied to gain insight into the internal service quality factors of two types of travel agencies. In addition, the impact of the Internet on quality of service was explored. The findings have theoretical and managerial implications. 
“Mimickers” Of Corporate Insiders And Testing For Market Efficiency: The Case Of Greece
Authors: Merikas Anna , Merikas Andreas , Vozikis George S.
Published: February 2016

Most prior research shows that corporate insiders can systematically earn abnormal returns by trading their own securities, but the majority of studies suggest that outsiders cannot earn abnormal returns by “mimicking” the trades of insiders after the latter report their trades. Our study is the first to investigate the case of “mimicking” in the Greek stock exchange, and the findings indicate that indeed, outsiders cannot earn significant abnormal returns by mimicking insiders’ trades, a result that is consistent with the concept of a semi-strong form of market efficiency.
Preliminary Evidence Of SFAS No. 130's Effect On Gains Trading In The Insurance Industry
Authors: Jordan Charles E. , Clark Stanley J. , Anderson Mary H.
Published: February 2016

Gains trading represents a form of earnings management whereby appreciated marketable securities are sold at a gain while those with a loss are retained. By not requiring unrealized gains and losses on available-for-sale securities to flow through income, SFAS No. 115 failed to close the door on this type of earnings management. With SFAS No. 130, however, these unrealized gains and losses must now be reported prominently in a financial statement as a component of comprehensive income. By examining the level of gains trading for a sample of companies in the insurance industry both before and after the implementation of SFAS No. 130, the current study provides evidence suggesting that this form of earnings management subsided subsequent to the adoption of SFAS No. 130.
Fixed Or Variable Rate Choice In The Commercial Bank Business Loan Market
Authors: Athavale Manoj , Edmister Robert O.
Published: February 2016

We study the choice available to business borrowers and lenders between fixed rate and variable rate bank loans. Unlike previous studies that examine residential mortgage loans, this analysis examines commercial and industrial loans. Business loans differ in attributes from mortgage loans and hence provide an opportunity to test determinants of the mortgage loan choice decision for other loan types. The diversity of business loans also permits tests of any effect which lender size and borrower size may have on the choice decision. Using a continuous index of preferences for the variable rate commercial loan, we find that the determinants of the business loan choice decision are different from the determinants of the mortgage loan choice decision. In contrast to prior research, we find strong evidence contradicting the proposition that variable rate loans are merely a response to high and variable interest rates. Further, this the first study to reveal size as a determinant of loan choice. Larger banks and larger borrowers have a greater preference for variable rate loans. Our results combined with the consolidation occurring among banks leads to the conclusion that the observed shift to variable rate bank loans is not transitory, and poses a significant risk for businesses with asset returns uncorrelated with short-term loan rates.
The FASBs Concepts Statement On Cash Flows And Present Value
Authors: Martens Stanley , Berry Thomas
Published: February 2016

In February 2000, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Concepts No. 7, Using Cash Flow Information and Present Value in Accounting Measurements.  In this document the FASB asserts without proof that a present value computation along its lines will provide a good estimate of the fair value of an asset or liability.  Using numerical examples provided by the FASB, we attempt to construct arguments in support of the FASB’s claim.  We find that such arguments require strong and not at all obvious assumptions about players in hypothetical markets.
Book Review - Emerging Markets, Financing Of SMEs, And Economic Growth: The Case Of Lebanon
Authors: Naimy Viviane Y. , Yachoui Elie
Published: February 2016

The book entitled “Emerging Markets, Financing of SMEs, and Economic Growth: The Case of Lebanon”, by Viviane Y. Naimy is the first treaty in Lebanon analyzing the Lebanese economy in a scientific matter, far from purely descriptive analysis.
The Relevance Of United States GAAP Information Provided By Foreign Firms In SEC’s Form 6-K
Authors: Harrington Jeannie Johnson
Published: February 2016

This study examines SEC Form 6-K to determine whether foreign firms report U.S. GAAP adjusted financial information before filing their annual SEC Form 20-F. This study then performs tests to determine whether the financial information in Form 6-K provides relevant information to investors. The results are inconclusive concerning the relevance of this information to investors. Other tests were performed to determine whether there was a difference between the relevance of the information provided in Form 20-F for those companies not disclosing any U.S. GAAP information prior to the Form 20-F filing date and those companies providing prior U.S. GAAP data in Form 6-K. These tests did not reveal a significant difference, an unexpected finding. Overall, results indicate that SEC Form 6-K rather than annual Form 20-F contains more timely, financial information for most foreign companies.
Institutional Price Pressure: Evidence From NASDAQ - NYSE Listings
Authors: Senteza Jimmy D.
Published: February 2016

The abnormal return behavior of firms that change their listing from the NASDAQ to the NYSE is found to be in the main a function of institutional ownership changes rather than changes in outstanding shareholder ownership as suggested in previous work. Institutional price pressure rather than changes in overall shareholder ownership is found to explain the pre- and the post- listing abnormal returns of sample firms.
A Note On The Determinants Of Equity Payouts
Authors: Washer Kenneth M. , Casey K. Michael
Published: February 2016

This study develops an equity distribution model to analyze dividend and share repurchase pay- ments to shareholders. Transaction costs increase and agency costs decrease as equity cash dis- tributions increase, suggesting that an optimal equity distribution exists that minimizes the sum of these two costs. A Tobit model relates the equity distribution yield (dividend and share repurchase distributions as a percent of market capitalization) to proxies of perceived undervaluation, finan- cial leverage, asset productivity, investment cash outflows, and agency costs. The results suggest that firms appearing undervalued, using little financial leverage, employing more productive as- sets, having fewer investment opportunities, or having greater dispersion of ownership distribute relatively more cash to shareholders through dividends and/or share repurchases. These findings support the existence of an optimal equity cash distribution policy that is unique to each firm.
Accounting Chairpersons Compare Distance Learning Delivery Methodologies
Authors: Saunders Gary
Published: February 2016

Distance learning delivery methodologies have evolved over the last 100, or so, years since the educational paradigm was formally used in American higher education. Several different approaches to distance learning, where the student is in a location remote from their instructor, have been used. During the decade of the 90s developments in technology offered new delivery vehicles for distance learning and terms like “interactive television” “E mail,” and “Internet courses” have been added to the academic lexicon. Internet courses, where the interaction between faculty and student occurs primarily over the Internet, represent a substantial departure from the traditional learning model.
Search And Experience Goods: Evidence From The 1960‟s And 70‟s
Authors: Leahy Arthur S.
Published: February 2016

This paper examines two aspects of search and experience goods: 1) the differences between the levels of retail and national-brand advertising that would be expected for search goods versus experience goods; and 2) differences in advertising intensity between these two types of goods. The ratio of retail to national-brand advertising was found to be greater for search goods than for experience goods. In addition, the ratio of national-brand advertising in newspapers to sales was found to be greater for experience goods than for search goods. The results overall provide considerable support for Nelson's (1970, 1974) work.
Blessing Or Curse? Community Banks’ Use Of Federal Home Loan Bank Advances
Authors: Hall John R.
Published: February 2016

Banks enjoyed record profitability during the nineties, as the economy grew and loan demand followed. Deposit growth did not keep pace so many banks sought alternative funding, including Federal Home Loan Bank advances which have potential risk-increasing incentives. The results show that advance-using banks operate with much higher levels of loans to assets, much lower levels of capital, and extend commitments for future lending at a greater rate than banks that do not use advances. A logistic regression finds high loans, and low deposits and equity (all as a percent of assets) are key predictors of FHLB advance use. Also, for the banks examined, there is a concentration of advance users among the banks with the lowest capital and highest levels of non-performing loans. These results offer insight for future research as well as focus for supervisory scrutiny of FHLB advance-using banks.
Empirical Testing Of Different Alternative Proxy Measures For Firm Size
Authors: Al-Khazali Osamah M. , Zoubi Taisier A.
Published: February 2016

This paper examines the relationship among total sales revenue, total assets, book value of equity, and market value of equity for different economic sectors and timeperiods.  Five statistical tools are used to examine the relationship among the different proxies of size of the firm for the period 1999-2002. Our study shows that the relationships among the four measures of the size of the firm are not the same for the different economic sectors and are not stable over time for each economic sector.  Our results suggest that the use of the four measures interchangeably as a proxy for the firm size may not be appropriate.
Managing Supply Chain’s Transaction Costs Through Logistics
Authors: Chen Al , Nunez Karen
Published: February 2016

The bulk chemical industry primarily relies upon truck transportation. Truck transportation, although costly, has a high percentage of on-time deliveries. Cheaper alternative transportation modes are less preferred due to a lack of supply chain information. Traditionally, the lack of information about in-transit products leads to higher safety stock and inventory levels, which results in higher costs. Process mapping and activity-based cost analysis are used to identify cost drivers and highlight the areas of opportunity for improving bulk chemical supply chain management. The activity-based cost information was used to develop a logistics cost model specifically tailored to the bulk chemical industry. The activity-based logistics cost model was used to assess potential cost savings from integrating centralized supply chain management software (visibility solutions), into the bulk chemical supply chain. The results of our analysis support integrating visibility solution software into multi-modal transportation to improve bulk chemical supply chain management. Integration of visibility solutions enables suppliers to improve their ability to monitor and control their inventory throughout the supply chain, increase overall asset utilization, and reduce global supply chain costs.
Occupational Matching Of Junior College Graduates In Korean Labor Market
Authors: Lee Nam Chul
Published: February 2016

This study aims to understand the supply and demand of Korea’s junior college graduates in the labor market and their job transfer pattern, thereby analyzing the behavior of young generation’s participation in the labor market. To this end, the study conducted an in-depth analysis into existing literatures and recent statistics. It also conducted surveys and held direct/telephone interviews with junior college graduates and corporate human resources managers who recruited these graduates and analyzed their job performances. The research includes junior college graduates’ economic activities, field of major, correlation between major and certificates obtained, correlation between work and major, terms of job-search and how much vocational education and training helped their transition from school to workplace and related job performance, and etc. Our survey shows that most junior college graduates are engaged in income-generating business.
Using the Balanced Scorecard: Both Common And Unique Measures Are Informative
Authors: Gagne Margaret L. , Hollister Joan , Tully Gregory J.
Published: February 2016

The balanced scorecard (BSC), developed by Kaplan and Norton (1992), allows an organization to translate its strategy and objectives into a series of performance measures. A recent study by Lipe and Salterio (2000) found that subjects use common scorecard measures in performance evaluation but disregard unique measures. This study finds that both common and unique scorecard measures are used in performance evaluation.
The Relevance Of The Environmental Factor In Corporate Strategies: An Application To The Consumer Goods Industry
Authors: Gil Rafael Bravo , Andrés Elena Fraj , Salinas Eva Martínez
Published: February 2016

Over the last few years companies have begun to consider the environmental factor in their corporate and marketing strategic decisions. In this context, the purpose of this study is to analyse the main pressure factors of this new business philosophy. Consequently, the concept of “Corporate Environmentalism” (Banerjee, 2002) has been introduced and a model of environmental orientation and strategy is proposed. The information has been obtained from 81 personal interviews with companies that belong to the consumer goods industry. A structural equation modelling methodology has been conducted. Results show that competitive advantages and the management environmental commitment are the firm’s main eco-orientation determinants. The consumer goods sector is aware of their environmental responsibility, but this factor is not a priority in their decision-making process.
Forensic Accounting: Should It Be A Required Course For Accounting Majors?
Authors: Ibex J.W. Ted , Grippo Frank J.
Published: February 2016

Most of the general public and hopefully students of accounting are aware of the attention grabbing frauds of the 21st Century, including Enron and Worldcom. Fraud and deceit are prevalent in our everyday lives, including activities of small business people when there are shareholder disputes and among individuals in matrimonial disputes. Forensic accountants are important to assist exposing the existence of fraud, but its role goes beyond dealing with fraud and includes applying investigative techniques to assist businesses and individuals to reveal the underlying financial facts or true value in various situations. Since Forensic Accounting is the fastest growing arena in the accounting profession, the authors believe that consideration should be given to its inclusion as a required course in the accounting curriculum.
Information Technology Customer Service: ―Best Practices‖ Processes For Operations
Authors: Wright M. Keith , Capps III Charles J.
Published: February 2016

In today’s information economy, information technology customer service managers require increasingly technologically advanced, but cost effective operations. These managers have a Byzantine array of standards, methodologies and best practice frameworks that offer hundreds of pages of detailed, but often confusing, guidance. This article attempts to offer a simpler guide for IT managers beginning a formal program to increase the effectiveness and efficiency of the day- to-day operation of their customer support services. The paper’s goal is to summarize and clarify important key concepts from the literature, and also present lessons learned from consulting experiences with several large organizations. Finally, the paper offers ideas for future empirical confirmation of the recommendations summarized here.
Wealth Effects Of Bank Mergers And Acquisitions In Asian Emerging Markets
Authors: Ma Jianyu , Pagan Jose A. , Chu Yun
Published: February 2016

Through analysis of stock responses to two different types of banking M&A deals, specifying M&A and diversifying M&A, we find that specifying M&A deals incur positive cumulative abnormal returns (CAR) in both two-day and three-day windows without controlling for firm size. Diversifying M&A deals incur positive CAR in two different event windows. However, the differences between the two windows are not statistically significant. Contrary to previous studies on M&A in the banking industry of developed markets, the results of our study indicate that markets do not distinguish among various types of M&A deals in the banking industry around the date of announcement. Diversifying M&A generate positive three-day CARs but they are not significantly better than specifying M&A.
 
Cultural Factors, Economic Affiliations And The Adoption Of International Financial Reporting Standards
Authors: Neidermeyer Presha E. , Dorminey Jack , Wilson Alan J.
Published: February 2016

We examine cultural characteristics in the context of economic affiliation and the timing of IFRS adoption. Prior work identifies cultural characteristics as key factors in the development of accounting systems world-wide. Our analysis extends this literature by showing that these same factors lead to economic clusters and to the propensity for adopting a universally accepted set of accounting rules. We contribute to the literature by demonstrating that, at least in one case, cultural factors are able to predict economic affiliations. Second, we provide evidence that certain cultural characteristic are affiliated with the delay in adoption of IFRS. Our results are valuable to local as well as international accounting standard setters as they look to negotiate common ground for convergence. Our examination of the cultural aspects distinctive in adoption patterns may provide insight into what specific aspects of the IFRS must be modified to expand and accelerate convergence.
 
Incorporating Customer Service Expectations In The Restaurant Industry: The Guide To Survival
Authors: Cant M.C. , Erdis C.
Published: February 2016

With the remarkable growth and economic contributions of the services industry, companies are finding that they need to focus on service to keep up with rising customer expectations and to compete effectively. Thus excellent customer service in a restaurant has the potential of differentiating the restaurant from competing ones and could lead to creating a competitive advantage. Thus, if a restaurant becomes well known for its superior customer service, this can be used as a way of outmanoeuvring competing restaurants. This article examines customer service in selected restaurants in the Tshwane area. It is aimed at establishing criteria for excellent customer service in restaurants, which can serve as the basis for building good relationships with customers. An empirical study was conducted to namely to investigate customer service in selected restaurants in the Tshwane Area, with the aim to establish criteria for excellent customer service as a benchmark for establishing relationships with customers, by means of an exploratory study. A self-administered survey was conducted whereby questionnaires were handed to restaurant patrons with the restaurant bill folder. Based on the research results, criteria were developed for excellent customer service which can be used as a benchmark for establishing relationships with customers, by providing customer satisfaction, which leads to customer retention, loyalty and ultimately profitability for an organisation.
 
Outside Director Equity Compensation And The Monitoring Of Management
Authors: McClain Guy
Published: February 2016

Using a sample of firms that are first time users of outside director equity compensation, I examine the effect of outsider director equity compensation on director monitoring by investigating firm performance and earnings management. My results, although lagged and not noticeable until year three, show that those firms that compensate outside directors with a higher percentage of equity compensation have higher stock performance, but lower accounting performance. These same firms also have lower discretionary accruals (i.e., less earnings management). These results suggest that outside directors do increase their monitoring by lowering discretionary accruals and thereby, lowering accounting earnings. In addition, this increased monitoring has a positive effect on stock performance. The results indicate that increased monitoring of accounting earnings results in lower discretionary accruals and thus lower, but more accurate earnings, and stock performance for the same period is not negatively impacted.
 
Disaggregated Commitment Of Traders Data And Prospective Price Effects
Authors: Often Einar M. , Wisen Craig H.
Published: February 2016

The interplay between speculative levels in futures contracts and prospective price changes is an important issue for hedgers, speculators, consumers, and regulators. The Commodity Futures Trading Commission (CFTC) began the dissemination of disaggregated data in September 2009; which allows for additional analysis that was previously not possible. This study analyzes Disaggregated Commitments of Traders data and prospective price effects in underlying futures markets. The relationship between position changes and subsequent price movements is examined through a series of Granger causality tests in agricultural commodity, energy, and metal markets. Primary findings indicate large traders and hedgers have more influence in future price changes in some commodity markets. In addition, there is limited evidence that changes in the positions of swap dealers and producers can cause subsequent futures prices to change, although the effect is inconsistent across time.
The Impact Of Internally Generated Goodwill On Financial Performance Of Firms
Authors: Zhang Mei
Published: February 2016

Internally generated goodwill comes from the intangibles not recognized in the financial statements. This paper examines the impact of internally generated goodwill on financial performance of firms. Data are collected from Compustat database for twenty years from 1991 to 2010. The final sample consists of 84,515 firm-year observations. The empirical results indicate that the firms with positive internally generated goodwill have significant better liquidity, profitability, and leverage ratios than those with negative internally generated goodwill. The results also show that positive internally generated goodwill firms have a stronger price-earnings association than negative internally generated goodwill firms. The findings are useful for standard setters, government regulators, practitioners, analysts, and academics to understand internally generated goodwill.
Managerial Ability And The Effectiveness Of Internal Control Over Financial Reporting
Authors: Lee Jong Eun
Published: February 2016

Able managers are considered more likely to produce high quality earnings, as suggested by earlier studies in related fields. Considering a positive association between earnings quality and effectiveness of internal control over financial reporting, I investigate the association between the latter, and managerial ability. As a result, I find that managerial ability is negatively associated with the existence of material weakness(es) in internal control over financial reporting. This result suggests that able managers are more likely to establish and maintain effective internal control over financial reporting, which helps them better monitor their firms' financial reporting.
Institutional Determinants Of Foreign Direct Investment In MENA Region: Panel Co-Integration Analysis
Authors: Jabri Abdelkarim , Brahim Mariem
Published: February 2016

This study examines the impact of institutional Determinants of Foreign Direct Investment (FDI) inflows in MENA (Middle East and North Africa) region during the period 1984-2011. Using panel data techniques by considering two hypotheses of economic interdependencies and structural changes, it is found that the macro determinants like openness, growth rate, exchange rate, and economic instability, and institutional indicators like government stability, investment profile, rule of law, internal and external conflict, have a long-run effect on attracting FDI inflows.
Determinants Of Savings In The SADC Region: The Role Of Foreign Capital And Financial Development
Authors: Kapingura Forget Mingiri , Ikhide Sylvanus , Tsegaye Asrat
Published: February 2016

The study examines the determinants of savings in the SADC region, mainly focusing on the roles played by external financial flows and financial development in mobilising domestic savings utilising panel cointegration method and the Dynamic ordinary Least Squares (DOLS) approach from 1980 to 2009. Following the review of literature, the empirical model adopted established that there is a long-run relationship between the variables of interest. The results indicate that income, proxied with GDP, financial sector development and foreign capital have a positive relationship with savings. The results also suggest that financial sector development has played a very important role in influencing savings in the region. However on the other hand the results indicate that interest rate and dependency ratio have influenced savings negatively. The empirical results support the hypothesis that foreign savings bridges the gap between domestic demand and supply of finance in the SADC countries. There is need to attract more foreign capital given that it compliments domestic savings. At the same time policies aimed at financial deepening should still be pursued to further deepen the financial system in the SADC countries to further enhance savings.
Loyalty To SMEs: A Pipe Dream In The Current Economic Climate?
Authors: Wiid Johannes A. , Cant Michael C. , Le Roux Z.
Published: February 2016

Small to medium enterprises (SMEs) plays a vital role in the growth and development of a country. It is therefore critical for any country, especially developing countries, to support and enhance the development of SMEs. Although the external support t is critical; SME’s needs to create and build its own loyal customer base for growth and sustainability. Loyal occurs when customers choose to use a particular store rather than others. A well maintained customer base can affect the SME’s profitability in a positive manner.

 

Quantitative research was undertaken by means of a self-administered questionnaire to establish the perception of South African SME owners regarding loyalty. The study revealed that the main drive for creating loyal customers is good products and services as well as competitive prices. It is hoped that this information will help SMEs to attract and keep loyal customers as it is more cost effective to retain loyal customers than it is to obtain new customers.
Trust And Commitment As Mediators Of The Relationship Between Quality Advice And Customer Loyalty
Authors: Van Tonder Estelle
Published: February 2016

Insurance agents globally struggle with clients who do not understand the importance of disciplined savings and of meeting with them at least once a year to make necessary adjustments to their financial plans. The purpose of the study was to provide assistance to these agents and explore trust and commitment as mediators of the relationship between quality advice and customer loyalty. The context of the study was clients of independent insurance agents (N=242), and self-administered surveys were used to test the research hypotheses formulated. It appears imperative for insurance agents providing clients with quality advice to focus strongly on building trust and commitment. These mediating variables contribute to a 27% change in the adjusted R² value, and resulted in a much higher R² value of 0.77 in the final model. The findings of the study could also assist larger organisations focusing on consultative selling practices and help them create solid client relationships with the potential to deliver great profit. 
Farm Labor Monopsony: Farm Business And The Child Hierarchical Model Of Fertility
Authors: Reynolds Douglas B.
Published: February 2016

Arthur Lewis (1954) classic article on duel labor markets suggests that subsistence labor, due to high fertility and overpopulation, causes low wages.  Basu (1999) and Dessy (2000) show a compelling theory for high fertility in developing countries where regions go into a poverty trap of low labor demand, low wages and overpopulation.  An alternative explanation for overpopulation has to do with a simple farm business model where farming families have a labor monopsony for their own child labor.  Child labor, not from society at large but from the farm family’s own children, can be a source of labor to run a farm business.  The farm business model shows how, due to simple monopsony characteristics, it may be cheaper for a farmer to use fertility induced, family child labor, rather than expensive non-family labor, to provide his labor supply and increase his rent.  Children can provide the farmer with labor that has a psychological barrier to exit, making it easy to add human capital without paying a high wage.  However, due to sibling rivalry and child psychological growth stages of binding, delegating and expelling, older children will be forced to leave the farm inducing greater fertility to replace them.  We assume capital investment options and the use of technology are limited for such farms due to monsoon rainy seasons, dense forests or steep hills, which suggests the need for labor intensive farms.  The end result is that child labor is a way to provide significant profit to a farm business.
The Information Content Of Loan Default Disclosures In The Prediction Of Bank Failure
Authors: Waldron Marilyn , Jordan Charles , MacGregor Alan
Published: February 2016

Bank failure prediction remains an important economic issue.  Although prior research investigates bank failure prediction, the opportunity to improve predictions exists.  The purpose of this present study is to investigate the possibility of improving prediction of bank failure by including loan default variables and regional variation in prediction of bank failure. The results of statistical analysis indicate loan default measures contain information content both in their own right and also incrementally above that of traditional CAMEL measures.  Furthermore, statistical analysis utilizing logit regression shows the superiority of bank failure prediction models that include consideration of geographic region. 
A Review Of Going Concern Prediction Studies: 1976 To Present
Authors: Bellovary Jodi L. , Giacomino Don E. , Akers Michael D.
Published: February 2016

In 1962, the Securities and Exchange Commission (SEC) was the first to address going concern issues with Accounting Series Release (ASR) No. 90.   Then, in 1963, the AICPA issued Statement on Auditing Procedures (SAP) No. 33, in response to ASR No. 90.  Both ASR No. 90 and SAP No. 33 addressed qualifications for issues that were unresolved and the results of which were indeterminable at the statement date. Soon after the issuance of Statement on Auditing Standards (SAS) No. 2 in 1974, researchers began to conduct studies on going concern issues.  This paper provides a comprehensive review of the literature on going concern studies and updates studies by Mutchler (1983) and Asare (1990) which provide detailed reviews of the evolution of the going concern report and requirements of the standards related to auditors' assessment of going concern.  Since SAS No. 2, the profession has not provided additional guidance on going concern.  Even the Sarbanes-Oxley Act of 2002 (SOX), makes no modifications to the requirements for considering going concern and the Public Company Accounting Oversight Board has not issued guidance addressing going concern. Starting with the first going concern prediction study [McKee, 1976], this paper identifies 27 models developed for predicting the going concern opinion and identifies the primary methods used for model development; multivariate discriminant analysis (MDA), logit analysis, probit analysis, and neural networks are.  This paper also identifies; the most popular type of focused model and identifies three non-U.S. firm models, the number of factors considered in any one study,  and the predictive abilities of the models. The paper also provides an annotated bibliography for the 27 models.
The Differences In Perceived Level Of Fraud-Detecting Effectiveness Of SAS No. 99 Red Flags Between External And Internal Auditors
Authors: Moyes Glen D.
Published: February 2016

The purpose of this study is to examine the differences and the causes for the differences between external and internal auditors regarding the perceived levels of fraud detection of the 42 red flags found in Statement of Auditing Standard (SAS) No. 99.  SAS No. 99 requires the 42 red flags to be used in financial statement audits in order to detect fraudulent financial reporting activity.  No differences were found between external and internal auditors with respect to overall perceptions.  However, 17 of the 42 red flags had significant differences regarding the effectiveness of red flags in the detection of fraud.  For the external auditors, the extent of use and exposure to red flags were significant predictors regarding perceived effectiveness.  For internal auditors, perceived fraud-detecting effectiveness was a function of one’s internal and total audit experience.  Surprisingly, gender differences occurred with both external and internal auditors with females rating the red flag effectiveness consistently higher than male auditors.  With the exception of two red flags, external auditors displayed a higher degree of consensus regarding the effectiveness rating of each red flag than internal auditors.  When asked to identify the more effective red flags based on the SAS No. 99 categories, both groups of auditors perceived the attitude/rationalization red flag category as the most effective red flags.
Diversity In Television Commercials: A Content Analysis
Authors: Baxter Susan
Published: February 2016

To increase market penetration, businesses work on engaging current and new customers to purchase additional products via creating a market offering to match the needs of the consumer group.  “Failure to recognize the reality of market segments was resulting in the loss of market position” (Smith, 1956, p. 5) for companies.  Smith (1956) notes that the successful application of the strategy of market segmentation “tends to produce depth of market position in the segments that are effectively defined and penetrated” (p. 5). The United States, with a history of being the world’s melting pot, is a multicultural society.  Differences between rich, poor, urban and rural Americans have been augmented by racial and ethnic diversity (Riche, 1991).  Successful utilization of this diversity has been of concern to business.  This paper analyzed 177 commercials to determine the proportion of inclusiveness in regards to gender, age, race, and language.  Diversity in gender and race was demonstrated, but improvement is needed in race, age, and language. 
Legal Challenges For Text-Message Marketers
Authors: Warrington Traci , Brady Michael T.
Published: February 2016

As text-messaging usage climbs in the United States, marketers are scrambling to find ways to integrate this new technology into the marketing communications mix.  Marketers must, however, be mindful of current U.S. Law – federal and state – which may restrict text message use.  Although no current federal law exists to specifically regulate text-message marketing, several wireless communication laws, anti-spamming laws, and case law may apply.  This paper reviews the current statistics and trends regarding usage of text-message marketing in the United States, presents “spamming” opportunities, reviews current federal law and state law by example, and makes recommendations to marketers considering use of text-message marketing.
The Implications Of Expensing Stock Options On Corporate Governance
Authors: Ramaswamy Vinita , Ueng C. Joe
Published: February 2016

This paper examines the roots of the abuse of stock options, finding it centered on a principal/agent problem that arises when employee stock options are not required to be expensed in the income statement.  The failure of corporate governance, including the proper oversight of executive compensation, and the failure of FASB to require expensing stock options, leads to a management-centric organization whose motives diverge from the interests of shareholders.
The Short-Term Reaction To The Dividend Tax Reduction
Authors: Fosberg Richard H.
Published: February 2016

With the passage of the Jobs and Growth Reconciliation Act of 2003, the maximum tax rate on dividend income was lowered from 38.6% to 15%.  This eliminated the traditional tax disadvantage that dividend income had relative to capital gains income.  Theoretically, this should have led a significant number of firms to increase their dividend payments.  In an empirical analysis of firm dividend payments after the dividend tax reduction took effect, it was found that there was a statistically significant increase in the number of firms raising their dividends.  For example, in the third quarter of 2003, 4.6% more firms increased their dividends than did so in the third quarter in 2002.  Similarly, 4.9% more firms increased their dividend payments in the fourth quarter of 2003 than did so in the fourth quarter of 2002.  A logit regression analysis of dividend changes showed that most of the change in the number of dividend increases was caused by the dividend tax reduction and not other factors such as earnings, earnings stability, investment opportunities or firm size.  The logit regression analysis also indicated that the dividend tax reduction increased by 3.7% (4.2%) the probability that the average sample firm would increase its dividend payment in the third (fourth) quarter of 2003.  It was also found that the greater a firm's blockholder share ownership the less likely the firm was to increase its dividend payment following the dividend tax reduction.  CEO and other officer and director share ownership were found to be unrelated to the probability that a firm would increase its dividend payment.
Entrepreneurial Recovery From Natural Disaster: A Consideration Of Influential Factors
Authors: Fraccastoro Katherine A.
Published: February 2016

This paper contains interviews with five entrepreneurs affected by Hurricane Rita in the Southeast Texas Region.  It qualitatively examines the recovery efforts of these entrepreneurs including the extent to which government assistance was utilized in their recovery efforts.  The purpose was to determine if there were any specific factors that helped or hindered in the recovery effort.  Factors considered in this study include the length of time in business, type of customer served, amount of damage to the business, length of down time due to the hurricane, types of recovery assistance utilized, and the entrepreneurs’ thoughts on keys to recovery.  The study finds several interesting trends.  First, length of time in business does not seem to be a factor in recovery after a natural disaster.  Instead, the passion for the business or drive or motivation to succeed appears to be a key to overcoming adversity.  Second, most entrepreneurs did not utilize any type of government recovery assistance.  Third, it does appear that the types of customers the entrepreneurs service do play a role in the speed with which the entrepreneurs were able to fully recover.  The speed of economic recovery also appears to be influenced by how quickly all or part of the business is able to reopen.