bluuebunny/crossref_metadata_2025 huggingface dataset:
The audit trinity: the key to securing corporate accountability
Authors: Porter Brenda A.
Published: January 2009

Purpose

The purpose of this paper is to distinguish between corporate accountability and corporate governance, explore the development of corporate accountability and examine the role of the tripartite audit function in securing this accountability.

Design/methodology/approach

A normative approach has been adopted and the research is based, primarily, on an examination of relevant literature.

Findings

Society facilities the growth of economic entities by providing them with resources. As their command over resources increases, these entities gain significant economic, social and political power and accountability is demanded of their managers as a check on possible abuse of this power. Historically, as companies have increased their power in society, those to whom and that for which their managers are held accountable have been extended. Today, the managers of large public companies are considered to be accountable to society as a whole for a wide range of corporate activities. The discharge of corporate accountability traditionally relied on the preparation and audit of accountability reports (financial statements). However, from the 1990s, responding to the increasing severity of the impact on society of unexpected corporate failures – and continued failures – responsible corporate governance was added as an accountability requirement. Further, as the activities for which companies are accountable have been extended (paralleling the growth of their “power” in society), so corporate responsibility information has featured as an element in their accountability reports. As these changes have occurred, the importance of the tripartite audit function in securing corporate accountability has come to be recognised and its members – the company's external and internal auditors and its audit committee – have become increasingly multi‐disciplinary in nature.

Originality/value

The paper explores the questions of why corporate accountability arises and how it is discharged. It explains the relationship between corporate governance and accountability and the role of the audit function in securing corporate accountability. It also provides insights into changes occurring in the audit function and how these might develop.
Restoring trust in auditing: ethical discernment and the Adelphia scandal
Authors: Barlaup Kristine , Iren Drønen Hanne , Stuart Iris
Published: January 2009

Purpose

The purpose of this paper is to encourage ethical discernment as a dimension of business decision‐making.

Design/methodology/approach

Development of ethical discernment and a process of ethical evaluation in the analysis of decisions made by the auditors and management in the Adelphia accounting scandal.

Findings

The paper finds that accounting may benefit from an increased focus on ethical discernment and ethical behavior. Ethical behavior may help restore trust and confidence in the capital market system and reduce fraudulent financial reporting.

Originality/value

This paper presents an alternative to regulation for restoring trust in the financial oversight function.
Travelling audit's fault lines: a new architecture for auditing standards
Authors: Hatherly David J.
Published: January 2009

Purpose

The purpose of this paper is to challenge the conceptual basis upon which the current auditing standards are based.

Design/methodology/approach

The paper critically appraises the Auditors' Code published by the Auditing Practices Board and containing the nine fundamental and enduring principles upon which current auditing standards are based.

Findings

It is argued that the nine enduring principles should be replaced by seven enduring tensions – the fault lines of auditing – so as to rethink the conceptual basis of auditing standards. Five of these are drawn from the paper's analysis of the Auditors' Code and two are based upon the author's experience of the issues arising in the preparation of the Code and the ensuing debate.

Research limitations/implications

Further research should be carried out to test the robustness of the seven enduring tensions as the basis for standard setting. A first step might be to map the existing standards onto the new conceptual basis.

Practical implications

Standard setters can deploy a new architecture for auditing standards and one that addresses the tensions inherent in auditing. Standard setting should be recognised as an activity dominated by ethical choices and concerns.

Originality/value

The new conceptual basis should provide us with a much closer reading of what auditing is, and its potential for development without expectation gaps.
The rise and rise of the B2B brand
Authors: Wise Rick , Zednickova Jana
Published: January 2009

Purpose

The purpose of this paper is to demonstrate to leaders of business‐to‐business (B2B) organizations the value of using brand management disciplines and tools to accelerate growth. The premise is that B2B organizations need robust, coherent brands if they are to operate successfully and grow as fast as they tell shareholders they will.

Design/methodology/approach

This paper uses empirical studies, mini profiles and research into the Fortune 500's stated rebranding initiatives to show that branding disciplines are joining the line‐up of management tools that can help drive business success and rekindle growth in industrial companies.

Findings

The paper finds that in more and more industrial sectors, companies view strong brand management as a powerful mechanism for expanding into adjacent markets, acquiring and retaining scarce talent and counterbalancing the strength of downstream customers. The paper opens with an anecdote about Johnson Controls, draws on Lippincott research showing the percentages of Fortune 500 corporations engaged in rebranding campaigns, and brings in examples to show that leading industrials are reassessing brand value with business objectives firmly in mind. The paper goes on to explain why B2B branding is more crucial today. It lays out five persistent myths that stymie action, describes seven key practices that underpin B2B branding success and includes a sidebar with “call to action” points.

Practical implications

The paper's examples and 11 “call to action” points are designed to spark discussion in boardrooms of industrial companies about how to reinforce branding initiatives.

Originality/value

This paper is targeted to “C‐suite” executives in industrial companies who are not typically exposed to branding issues and who need to understand branding's impact on business performance. Its greatest value is that it presents clear routes for action.
The leadership lessons of crucible experiences
Authors: Thomas Robert J.
Published: January 2009

Purpose

The purpose of this article is to explore different types of crucible experiences – transformative events that happen both on and off the job and that are the raw material from which outstanding leaders derive their core qualities.

Design/methodology/approach

Primarily through interviews with leaders in a wide range of organizations, the author analyzed nearly 200 crucible experiences and identified three varieties: “New Territory” (encounters with the unknown); “Reversal” (loss, impairment, or defeat); and “Suspension” (an extended period of contemplation).

Findings

Each type of crucible conveys different lessons for aspiring or established leaders. While the lessons vary, common themes emerge: the importance of relying on others; the interdependence of people within organizations; the need to continually ask questions, not just give answers; the importance of having a mission and recognizing that you are not bulletproof.

Originality/value

The article takes the idea of learning from experience and gives it a unique twist by focusing on life's most difficult experiences. Readers will appreciate the need to get out of the classroom and to mine the value of their own experiences.
Delegating and devolving power: a case study of engaged employees
Authors: Pech Richard J.
Published: January 2009

Purpose

Issues of trust and control are two major determinants for employee disengagement and organizational conflict. The following article describes how Bill Day, owner of Seaworks, a rapidly growing ocean salvage company, deals with issues of trust and employee disengagement.

Design/methodology/approach

This article incorporates findings from an interview with Bill Day and literature on the areas of trust, employee disengagement, and the need for a personal sense of control.

Findings

Key determinants for employee engagement are a sense of trust between employees and their managers as well as a sense of personal control. Restructuring efforts in the past may have been major contributors to employee disengagement. Trust must be communicated through the firm's culture and it must start from the top of the organization. A key barrier between employees and managers is the managerial reluctance to delegate authority and devolve power. This conflict between the organization's goals and the goals of its managers is a major catalyst for organizational dysfunctionality.

Implications

There may be a direct correlation between managerial reluctance to delegate decision‐making and employee disengagement. This defensive posture by management negatively affects employee‐management trust and employees' sense of control in the workplace. While attempts at organizational delayering and employee involvement in decision‐making have often failed in the past, a commonsense approach is suggested with a heightened probability of success.

Originality/value

This paper suggests a practical means of reducing the incidence of employee disengagement and thereby increasing productivity and performance. Issues concerning trust and control in organizations are resolved. It is also posited that such proposed organizational improvements will reduce workplace conflict and absenteeism, employee turnover, and increase economy of effort, thereby lowering costs and improving profitability.
Iceberg ahead
Authors: Marren Patrick
Published: January 2009

Purpose

The purpose of this paper is to discuss the retirement of the Baby Boom generation and the fiscal crisis that almost certainly will accompany it.

Design/methodology/approach

Opinion column.

Findings

This column lays out the reasons why the current fiscal situation is unsustainable and why the retirement of the Baby Boomers will cause economic dislocation for the entire economy, shaping strategic choices for many business decision‐makers.

Originality/value

Advance warning about a serious issue that will cast a shadow on the entire strategic business environment for the next few decades.
Membership has its shareholder rewards
Authors: Jackson Stuart E.
Published: January 2009

Purpose

Most business executives understand the importance of taking care of their best customers but they often limit their focus to engaging the left side of their customers' brains: the calculating side, paying attention to “hard” financial considerations such as level of discounts. In addition, executives should think about how they can engage customers' right/irrational/emotive side. One of the most effective ways to do this is to create a feeling among key customers that they are members of an exclusive club, building on the human need to affiliate. Humans want to belong to something, and preferably, something more sublime and more significant than ourselves. We want to believe that we are getting special access, special treatment, special handling – special something. Companies that can successfully tap into this left brain affiliation need will build extraordinary customer loyalty and long term value for shareholders. The author proposes four key strategies for companies considering going down this path.

Design/methodology/approach

In this article, Jackson considers a number of case examples of businesses that have built loyal “membership” customers who can be relied upon to keep coming back in large part because of the affiliation benefits they feel with the companies that serve them. Examples industries cited in the article include the real estate, retail, airlines, car rental and consumer durables. The author then draws lessons that can be applied broadly across any business considering strategies to build loyalty among its best customers.

Findings

Companies should proactively engage with the left brain needs of their customers. This involves developing programs that differentiate the businesses' best customers, providing visible benefits that are not available to ordinary consumers. The programs should target softer benefits and affiliation needs as well as providing good customer value. Those companies that are able to build a sense of membership among their customers will achieve increased loyalty and shareholder value.

Originality/value

Brand managers have always recognized how left brain thinking can overwhelm right brain hard cost‐benefit considerations in product choice. This article extends that thinking beyond brand attributes to how customers and suppliers interact. It demonstrates how company leaders who successfully target humans' left brain affiliation needs in designing customer interactions can attract and retain customers much more cost‐effectively than those who limit their focus to “hard” cost‐benefit considerations. In doing so, they can build competitive advantage and long term shareholder value.
The post‐conservative orphan: why the USA needs an effective government economic policy
Authors: Wolnicki Miron
Published: January 2009

Purpose

The purpose of this paper is to address the root causes of rising imbalances in the US economy. There is the view that the dominance of the liberal economic philosophy among the American decision makers and business elite resulted in marginalization of the role of the economic government. As a result, the US economy is facing problems in many sectors and might be poorly prepared to face the challenge of globalization in the knowledge‐based industries.

Design/methodology/approach

The paper provides review and critique of the contemporary literature of “declininists” proclaiming the end of the American Empire.

Findings

In order to restore the strength of the US economy and utilize its potential, Americans must consider a new generation of politicians and legislators capable of reforming the tax system, stepping up the supervision of the financial sector, eliminating inequality in education and reforming the electoral system.

Research limitations/implications

America is at a turning point. The problems of the American economy are home‐made, but their implications are international. In the last two decades the USA pursued a dysfunctional dual dependence on imports of manufactured goods and capital. Allowing the dollar devaluation has been a short‐sighted policy which will have dire consequences on import‐dependent economy and the USA's position in the world economy. Liberal prescriptions of self‐regulating markets cannot replace long‐term government economic strategy which America badly needs today.

Practical implications

Since the liberal wishful‐thinking failed, economists, politicians and legislators should stop evoking conservative liberal mantras and start working on responsible economic policy solutions before the US economy plunges into a deep recession and years of damaging pessimism.

Originality/value

Rather than repeating arguments of the authors proclaiming the end of American Empire, the paper looks for chances and opportunities for the US economy's rejuvenation in the future.
Global food crisis: magnitude, causes and policy measures
Authors: Singh Sumanjeet
Published: January 2009

Purpose

The purpose of this paper is to study the magnitude and various causes of the global food crisis. Further, the paper aims to suggest policy measures towards the solution of global food crisis problem.

Design/methodology/approach

To verify the problem of global food crisis, the paper mainly utilizes food price index of UN Food and Agriculture Organization (FAO) and qualititative information to highlight the international reaction/initiative/scenario in food crisis regime.

Findings

Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food for a healthy and active life. Unlike nutrition, where treatment is guided by standard protocols based on human nutritional requirements, food security must take into account a wide range of factors such as climate, geography, socio‐economic systems, and political structures. The challenges in achieving food security are to reduce poverty, increase food security without further degrading natural resources, and to cope with population growth, rising incomes and inflation, changing food habits, conversion of food crops into biofuels, increasing speculation in the commodity market and urbanization. To solve the problem of global food crisis, a coordinated multi‐stranded approach is needed.

Practical implications

Improving food security will help governments to achieve the millennium development goals (MDGs). Food security will not only help to eradicate hunger, it will also help to reduce child mortality and improve maternal health. Most importantly, it will help to break the cycle of poverty.

Originality/value

The paper presents comprehensive research work in the field of global food crisis and highlights the various dimensions of the global food crisis problem. The paper also provides innovative policy measures to solve the global food crisis.
A relationship between current globalisation, unemployment, inequality and poverty
Authors: Ukpere Wilfred I. , Slabbert Andre D.
Published: January 2009

Purpose

This paper contends that there is a positive relationship between current globalisation, unemployment, inequality and poverty, which paves a vista for further academic discourse.

Design/methodology/approach

As a meta‐analytical study, the paper relied on secondary data. It is a qualitative study, which is based on conceptual analysis, theory building and “emic” perspective (authors' viewpoint).

Findings

A relationship between current globalisation, unemployment, inequality and poverty should be investigated further. Unemployment increases levels of inequality and poverty within society. Although bequeathed with various names and definitions, the logics of current globalisation seem to have exacerbated the problem of global unemployment, the corollary of which is endemic inequality and poverty.

Practical implications

Increases in income inequality and poverty over the past decades, can be attributed to globalisation. Therefore, within the domain of unemployment, inequality and poverty in the era of globalisation, renewed problems of global competition, job termination, wage reductions, labour immobility and technological displacement of workers, have accelerated the rate of global unemployment, the corollary of which is endemic inequality and poverty.

Originality/value

The originality of this paper is that it examines the phenomenon of globalisation, unemployment, inequality and poverty, from a different perspective, which creates an opportunity for further constructive debate.
Can Curaçao become a Creative Economy? A case study
Authors: Goede Miguel
Published: January 2009

Purpose

The purpose of this paper is to present a case study of the creative class of Curaçao, which is a small Caribbean island coping with globalisation. The paper will contribute to the development of a framework for the discussion of the Creative Economy.

Design/methodology/approach

The paper contributes to the development of a framework for understanding the Creative Economy. This framework is then applied to the case of Curaçao. After analysis, conclusions are drawn.

Findings

In Curaçao there are many conditions present which support the development and creation of the creative class or attract it from other locations. On the other hand, policies should be put in place to retain the creative class. The theories and methods relating to the creative class are not yet fully developed.

Originality/value

The paper contributes to a framework for understanding the Creative Economy of small Caribbean islands.
Is the hand of God involved in human cooperation?
Authors: Ahmed Ali M. , Salas Osvaldo
Published: January 2009

Purpose

The purpose of this paper is to examine the supernatural punishment theory. The theory postulates that religion increases cooperation because religious people fear the retributions that may follow if they do not follow the rules and norms provided by the religion.

Design/methodology/approach

The paper reports results for a public goods experiment conducted in India, Mexico, and Sweden. By asking participants whether they are religious or not, one can study whether religiosity has an effect on voluntary cooperation in the public goods game.

Findings

No significant behavioral differences were found between religious and nonreligious participants in the experiment.

Originality/value

This paper differs from the previous limited experimental literature, studying religiosity and cooperation, in the sense that it uses a public goods game rather than a prisoner's dilemma game. The public goods game is more interesting since many real life problems are multilateral rather than bilateral. Further, the study was conducted in three different countries: India, Mexico, and Sweden; with three different types of potentialy religious people: Hindus, Catholics, and Protestants.
Managerial nonpecuniary preferences in the market failure theories of nonprofit organisation
Authors: Valentinov Vladislav
Published: January 2009

Purpose

Managerial nonpecuniary preferences have been emphasised by the behavioural theories of nonprofit organisation but only weakly related to this organisation's market failure theories. The present paper aims to fill this gap by examining the ways in which the market failure‐addressing capacity of nonprofit firms requires recourse to managerial nonpecuniary preferences.

Design/methodology/approach

The paper proceeds by examining the ways in which the market failure theories of nonprofit organisation conceptualise this organisation's market failure‐addressing mechanism.

Findings

It is shown that the market failure theories of nonprofit organisation can be logically complete only if they include an explanation of managerial motivation consisting in the gratification of nonpecuniary preferences.

Practical/implications

Nonprofit firms are thereby shown to address market failures in a way different from that of for‐profit firms. Specifically, whereas for‐profit firms address market failures based on their advantages over market organisation in processing information and aligning incentives, nonprofit firms make the production of goods and services that are undersupplied due to market failures the object of nonprofit managers' nonpecuniary preferences.

Originality/value

The economic theory of nonprofit organisation has been traditionally marked by a dichotomy of the market failure theories and behavioural theories, only the latter of which recognised the role of managerial nonpecuniary preferences. By demonstrating that these preferences are crucial to the former theories as well, this paper integrates these two theorising strands and thus deepens the theoretical understanding of the nonprofit sector.
Human development, public expenditure and economic growth: a system dynamics approach
Authors: Azeem Qureshi Muhammad
Published: January 2009

Purpose

It is now widely recognized that human development (HD) and economic growth (EG) are intertwined in two‐way feedback processes either leading to an upward spiral of development or a poverty trap. This concept is used to overcome one of the limitations of a previous study by Qureshi which assumes exogenous gross domestic product (GDP). With endogenous GDP formulation, the impact of public expenditure on HD and EG in Pakistan is examined.

Design/methodology/approach

System dynamics approach is used to model, identify and help manage the development path of HD and EG in Pakistan given alternative policies for public expenditure on HD and EG. For this purpose the model endogenously determines path of population cohorts, and education, health and economic indicators.

Findings

The simulation results suggest that the current level of public expenditure on HD is extremely low and any further decrease will have irreversible negative impact on HD and economic indicators, even if the resources so saved are effectively invested in EG. Further, higher public expenditure on EG may neither result into better HD indicators nor economic indicators. On the contrary, higher public expenditure on HD not only improves HD indicators but also supplements EG. The results of this study conform to the results of earlier research and challenge the very basis of fiscal policy in Pakistan which has continually ignored HD over decades.

Research limitations/implications

The model boundary excludes possible causal links of public expenditure, HD and income distribution. Identification and inclusion of these causalities may improve understanding of perpetuating asymmetric income distribution in Pakistan its role in HD and EG trade‐off.

Practical implications

This paper suggests reorientation of fiscal policy in Pakistan and to anchor it to HD by allocating more public funds.

Originality/value

The unique characteristic of this model is explicit modelling of population cohorts in a two‐way feedback relationship with economic development considering the delays and non‐linearities involved in this process.
Nepal and Bhutan: economic growth in two Shangri‐Las
Authors: Dhakal Dharmendra , Pradhan Gyan , Upadhyaya Kamal P.
Published: January 2009

Purpose

The purpose of this paper is to examine the economic development strategies of Nepal and Bhutan to understand the economic factors that have contributed to economic growth.

Design/methodology/approach

After a brief discussion of each country's modern history, their economies are examined together with their development strategies during the past half century. Standard economic growth models for Nepal and Bhutan are developed and estimated. To ensure the stationarity of the data series, tests of unit root are conducted. Further, a cointegration test is conducted and an appropriate error‐correction model is developed.

Findings

The results of the estimations reveal that domestic capital has been a significant source of economic growth in Nepal whereas foreign aid has not had any appreciable effect on growth. In the case of Bhutan, foreign assistance has been a significant source of growth while domestic capital has not.

Research limitations/implications

Bhutan and Nepal also differ in terms of non‐economic factors such as culture, language, politics, and religion. These factors may also help to explain the difference in economic performance of these countries. While important, these issues are beyond the scope this paper and indicate directions for further research.

Originality/value

It is one of the first attempts to compare the economic growth strategies of Nepal and Bhutan. It may provide useful insight to policymakers and others interested in economic growth in Nepal, Bhutan and other developing countries.
Bangladesh's economy: surrounded by deadly threats
Authors: Salman Ahmed
Published: January 2009

Purpose

This paper aims to examine Bangladesh's overall economy with special focus on strengths, weaknesses, opportunities, threats (SWOT) analysis, choosing right foreign direct investment (FDI) strategy, remittance inflow, lessons from South East Asian nations, risk factors and aftermath.

Design/methodology/approach

Phenomenological research has raised awareness and increased insight into Bangladesh's overall strength, weakness, opportunity and threat in terms of her current position in world economy. The approach is based on observation of the business environment, online research, a close watch on Bangladesh's economy, analysis of newspapers, books, brainstorming with co‐researchers for five years and 30 years of living and working experience in developing countries.

Findings

The research has found that Bangladesh is going to encounter series of economic hurdles in near future. A SWOT analysis of Bangladesh has uncovered her overall strength, weakness, opportunity and threat in terms of her current position in world economy. Despite some strengths and opportunities, Bangladesh has lots of weaknesses and threats that could seriously undermine nation's development process at any time. A holistic and concerted effort is much sought after to address those problems while capitalising on strengths and opportunities. Side by side, Bangladesh should try her level best to attract quality FDI. However, remittance inflow plays very crucial role in Bangladesh's economy. But deplorably, since it is almost impossible to follow the successful model of South East Asian nations, Bangladesh does not have any sure success formula of any country in hand to follow. In fact, many less successful countries will have to struggle for long uncertain period. And sadly, Bangladesh falls into that category indeed. In fact, Bangladesh's economy has been on an inherently unstable path that can only end in tears. But remittance inflow will act as lifeblood for Bangladesh's economy and it will slow down the total apocalyptic process indeed. However, considering the totality, Bangladesh must have to face several critical challenges at once even before embarking on the track of vision 2020! Truly, nightmare is just on!

Originality/value

This paper offers a holistic view that would guide a reader to identify key challenges of a typical least developed country.
Tracing out the U‐shape relationship between female labor force participation rate and economic development for Pakistan
Authors: Fatima Ambreen , Sultana Humera
Published: January 2009

Purpose

Several studies have provided empirical evidence that female labor force participation rate exhibits a U‐shape during the process of economic development. The purpose of this paper is to explore the existence of U‐shape relationship in the case of Pakistan and if it does exist, what factors determine this U‐shape relationship?

Design/methodology/approach

For the estimation purpose data according to provinces and regions are pooled for three years. The model is estimated using a simple fixed effect test.

Findings

The results affirm the existence of U‐shaped relationship. Estimation of the pooled data attributed this U‐shape relationship with female education attainment, sectoral employment share, unemployment rate, wages and marital status. Results confirm that high rate of economic development is encouraging the female participation in the labor force by increasing the work opportunities for females. The females are taking full advantage of these increased opportunities by increasing their level of education attainment.Research limitations/implications– In testing the U‐shape hypothesis, household expenditure on fuel consumption representing level of economic development in the country is used as the data on GDP are not available at the provincial level.

Practical implications

This paper recommends that skill‐based education programmes should be promoted so that females could be absorbed in the formal labor market. It also recommends measures to decrease unemployment rates and improve labor market conditions.

Originality/value

The paper is first of its kind as it applied pooled data technique for the estimation of U‐shape relationship.
Government health care spending and the poor: evidence from Nigeria
Authors: Ahamefule Amaghionyeodiwe Lloyd
Published: January 2009

Purpose

The purpose of this paper is to examine whether or not government health care spending reduces the poor‐rich differences in health status. Specifically, it aims to assess the health status of the poorvis‐à‐visgovernment health spending in Nigeria.

Design/methodology/approach

Regression analysis was carried out using the Ordinary Least Square method of estimation while secondary data was used.

Findings

It was found that despite the increase in most components of health care spending in Nigeria, the health status of the average Nigerian and the condition of health infrastructure has not improved appreciably. Also, the poor have significantly worse health status than the non‐poor and they (the poor) are more strongly affected by public spending on health care relative to the non‐poor. Thus, the difference in impact of spending between the poor and the non‐poor could be substantial.

Originality/value

This study provides information that will help reposition policies on government spending, especially on health care, so as to enhance and improve the heath status of the poor in Nigeria, thereby reducing the poor‐rich differences in health status.
Economic growth and its effect on public health
Authors: Ben‐David Nissim
Published: January 2009

Purpose

The purpose of this paper is to construct a theoretical framework for analyzing the connection between economic growth, demand for medical care, and economic health.

Design/methodology/approach

The economy is composed of two sectors, one of medical care goods and the other of consumption goods. Equilibrium is defined when capital per‐capita in period t is equal to that of period t+1.

Findings

An equilibrium path is found for the demand for consumption and for medical care goods, per‐capita level of health, capital, savings, trade balance, and net foreign assets.

Research limitations/implications

The importance of the paper is in its ability to analyze the change in public health along the growth path of the economy.

Practical implications

An example and a simulation are presented in order to confirm the theoretical results and demonstrate that the model can be used for empirical analysis.

Originality/value

The paper constructs a connection between economic growth and health sector economic developments.
Georgescu‐Roegen's entropic model: a methodological appraisal
Authors: Cojanu Valentin
Published: January 2009

Purpose

This paper aims to tackle in turn the merits and limits of Nicholas Georgescu‐Roegen's entropic model, as well as its implications for the methodological discourse in economics. This appraisal of the Georgescu‐Roegen's work emphasizes the emergence of the entropic nature of the economic processes as a paradigm à la Kuhn of explanation in social economics.

Design/methodology/approach

This work provides a critical assessment of the entropic model's main conceptual pillars, namely the role of mathematical formalism and the natural imagery of irreversibility. This discussion takes them in turn and develops a critique from a methodological point of view.

Findings

The focus of this work is that the proposed epistemological reconstruction of economics is vulnerable to attacks from two methodological objections. The first deals with the change of metaphor from the “pendulum” of mechanics to the “hourglass” of thermodynamics. The second refers to the changes this replacement of metaphors brings about as to the relevance of the formalism of the discipline.

Originality/value

This material has gathered arguments to show that the intellectual concurrence of the arguments onto the field of physics makes the methodological value of the new paradigm of entropy not transcend into a new logic of reasoning in economics. The limits of this approach stems from the same rationale for which it has got its revolutionary stature: what it proposes consists of a scientific discourse based on a mixture of evolutionary biology, economics and thermodynamics, which may open up new original and insightful perspectives, but which has never been justified on terms of economic nature alone.
Defining and detecting financial fragility: New Zealand's experience
Authors: Schroeder Susan
Published: January 2009

Purpose

The purpose of this study is to investigate why “financial fragility” carries different definitions in the economic literature. This is a useful task as the detection of “financial fragility” depends, in part, upon how one defines it. According to Post Keynesian economists, financial fragility is a process that can culminate in financial instability (an event). For mainstream or New Keynesian economists, financial fragility has been traditionally defined as a state in which a shock can trigger instability. More recently, however, mainstream economists have recast their definition as a particular form of financial instability – an event. Each definition of financial fragility is intimately linked to the theoretical foundation upon which it rests. This carries important implications for the ability of policymakers to assess and manage the health of an economy.

Design/methodology/approach

The different approaches to the definition and detection of financial fragility are compared using corresponding sets of indicators. Indicators for the Post Keynesian approach are derived from a simple cash‐flow accounting framework, in the spirit of Hyman Minsky. The economy selected for study is New Zealand.

Findings

According to the Post Keynesian approach, New Zealand has been in a financially fragile state for over three years, a period during which policymakers could have been creating ways to make New Zealand more resilient to the onset of instability. According to the New Keynesian approach, New Zealand may just now be experiencing fragility, giving policymakers much less time to react.

Originality/value

This study traces the definitions of financial fragility to their underlying theoretical frameworks and draws the implications for the methods of detecting financial fragility.
Do better institutions improve bank efficiency? Evidence from a transitional economy
Authors: Hasan Iftekhar , Wang Haizhi , Zhou Mingming
Published: January 2009

Purpose

The purpose of this paper is to investigate the role of institutional developments – market economy, financial deepening, private sector, property rights and rule of law – affecting the bank efficiency in China.

Design/methodology/approach

First, profit efficiency and cost efficiency scores of banks at the firm‐year level were estimated using a stochastic efficiency frontier approach. Then the results were aggregated at the regional level. Regional differences in the timing and extent of the institutional developments impacting bank efficiency were exploited.

Findings

It was observed that most institutional variables play an important role in affecting bank efficiency and additionally banks tend to operate more efficiently in those regions with greater presence of private sector and more property rights awareness.

Research limitations/implications

The data on a number of important institutional variables such as property rights and rule of law are not easily available or importantly do not vary that much across years. However, based on whatever information available, it is apparent that institutional development is crucial to bank performance and also eventual economic growth.

Originality/value

This paper is believed to be the first attempt to empirically examine the role of institutional factor affecting bank efficiency especially in a transition country.
Market value, book value and earnings: is bank efficiency a missing link?
Authors: Abuzayed Bana , Molyneux Philip , Al‐Fayoumi Nedal
Published: January 2009

Purpose

This paper examines whether earnings and its components are relevant and sufficient to bridge the gap between banks' market and book values, and also considers if bank efficiency is “value relevant” for banks valuation.

Design/methodology/approach

This paper follows the value relevance literature methodology which tests for the difference between book and market values using a variety of indicators including net income and its components as well as bank efficiency (derived using DEA) and risk indicators. The regression models are estimated using OLS, random and fixed effects approaches for a sample of listed Jordanian banks between 1993 and 2004.

Findings

The main findings of this paper are twofold. First, it is found that earnings (and its components) are value relevant and explain the gap between market and book values. Secondly, cost efficiency, as an economic performance measure, provides incremental information, not contained directly in banks financial statements, to the market. Overall it is found that the components of net income are more important than aggregate net income in explaining bank value. Furthermore, bank operational efficiency adds incremental information in explaining the gap between market and book value. These results support the view that stock prices aggregate signals received by the market as well as from firm's accounting systems.

Practical implications

The study shows that bank efficiency indicators (along with more traditional accounting measures) help explain market values.

Originality/value

This is one of only a limited number of studies that link bank efficiency to market valuation. It is the first, we believe, to do this for banks operating in an emerging economy.
Foreign bank efficiency in Australia: what makes a difference?
Authors: Sturm Jan‐Egbert , Williams Barry
Published: January 2009

Purpose

The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.

Design/methodology/approach

A three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from the above theories. Third, general to specific modelling is used to determine which of the factors from the second stage determine differences in foreign bank efficiency.

Findings

Following clients (defensive expansion) was found to increase host nation efficiency, and new trade theory tended to, (but not conclusively), dominate comparative advantage theory. The limited global advantage hypothesis was found to apply for US bank revenue creation efficiency, but not for transformation of physical inputs into outputs. Banks from the UK and Japan were also found to display superior revenue creation efficiency. Competitor market share reduces host nation efficiency and positive parent bank attributes such as size, credit rating and profits are associated with lower host nation efficiency, as is home nation financial development.

Originality/value

This is the first study that has used a combination of factor analysis and general to specific modelling to study determinants of foreign bank efficiency in the host nation.
Estimating and analyzing the efficiency and productivity of bank branches
Authors: Gaganis Chrysovalantis , Liadaki Aggeliki , Doumpos Michael , Zopounidis Constantin
Published: January 2009

Purpose

The purpose of this paper is to examine the efficiency and productivity of a Greek bank's branches.

Design/methodology/approach

The sample consists of 458 branches of a Greek commercial bank, operating in 13 regions of Greece over the period 2002‐2005, a total of 1,795 observations. Data envelopment analysis was used to explore the efficiency and productivity of the branches. Then, fixed and random effects models were used to determine the impact of internal and external factors on the efficiency and productivity scores.

Findings

The results indicate that the branches in the sample could have achieved improved overall performance during 2002‐2005. Also, that the inclusion of loan loss provisions as an input variable increases the efficiency score, but for the total factor productivity (TFP) change, the results are mixed. The second stage regressions indicate that both the logarithm of personnel and the logarithm of income per capita in the local market have a significant impact on efficiency, while the loans to total assets ratio has a significant impact on pure technical efficiency only. When the various productivity change measures were regressed over the explanatory variables, it was found that the logarithm of per capita gross fixed capital formation has a positive and statistically significant impact on all measures. Also, that the return on assets, the loans to deposit ratio, the logarithm of personnel, and the logarithm of income of per capita, all have a positive and statistically significant impact on overall efficiency change.

Originality/value

This paper is the first study on Greek branches which examines the impact of market conditions. It examines the impact of risk‐taking on the efficiency of the branches and examines the productivity growth of the branch network using the Malmquist TFP index.
The shifting landscape of e‐books
Authors: Soules Aline
Published: January 2009

Purpose

The purpose of this paper is to review the current state of e‐books, describing their potential scope, highlighting information from recent ebrary surveys in connection with the author's on‐the‐ground experience with students, and discussing the challenges of these evolving works.

Design/methodology/approach

The paper describes the need to broaden perceptions of e‐books in light of their extensive potential and scope. It highlights significant points in the ebrary surveys and compares them with the author's on‐the‐ground experience in a medium‐sized university with students who are less advantaged. It also presents the challenges librarians face, both currently and in the future, illustrating progress in some areas and emphasizing the growing complexity in managing these works.

Findings

Even as librarians cope with what can now be considered “traditional” e‐books, little attention is paid to the potential breadth and diversity of e‐books. The surveys show that librarians are only partially aware of students' perceptions about e‐books and that there are conflicting priorities among students, faculty, and librarians. Conclusions are that: even as librarians cope with the current state of e‐books, they must also plan for future types of e‐books; and there is a strong need for greater communication in the increasingly complex e‐book arena of selection, acquisition, collection integration, and instruction.

Originality/value

Much of the literature about e‐books deals with the pros and cons, either of e‐books or of e‐book readers. The paper lays out e‐book issues to foster further in‐depth discussion.
We got the building … now what?
Authors: Harada Glenda , Taylor Donna , Collier Aaron
Published: January 2009

Purpose

The purpose of this paper is to describe the process by which a library task force investigated and recommended services, best practices and technology prior to moving into a vastly larger and more modern building than its previous facility.

Design/methodology/approach

A 12‐member team was appointed to study a wide range of practices and services in libraries and other public institutions with similar missions and to issue a report on its findings and recommendations. The team included faculty, staff and students with backgrounds including public service, technology, human resources and space design.

Findings

The make‐up of the team, as well as the methods of study, provided for a wide range of possible recommendations and had a significant impact on the final report. A link to the full report is provided (wiki).

Research limitations/implications

Other libraries, whether planning a new building or new services, may utilize a similar team research method to develop an action plan.

Originality/value

The paper describes one successful method of developing a strategic plan to enhance services to patrons and employee performance and satisfaction.