bluuebunny/crossref_metadata_2025 huggingface dataset:
Financial flexibility and the impact of the global financial crisis
Authors: Bancel Franck , Mittoo Usha R.
Published: April 2011

Purpose

The purpose of this study is to gain some insights into how managers perceive and achieve financial flexibility and its value in coping with the 2008 global financial crisis. The study focuses on the following questions: What are the sources and measures of financial flexibility? Do financially flexible firms suffer a lower impact from the crisis? Is financial flexibility related to business flexibility? and Is financial flexibility important for the firm's capital structure decision?

Design/methodology/approach

This paper employs two methods: a questionnaire survey and interviews with chief financial officers (CFOs). The results are used to examine the relation between the firm's financial flexibility level and the impact of the global financial crisis on its liquidity, investments, capital structure and business operations. The results are used to analyze the robustness of different financial flexibility measures constructed from the survey data to identify an appropriate financial flexibility measure.

Findings

The main finding is that firms with high financial flexibility suffer lower impact from the crisis. The results show that firms with greater internal financing are likely to have lower leverage, higher cash ratios, and suffer a lower impact from the crisis on their business operations. The analysis indicates that an index based on the firm's leverage, liquidity, and operating ratios, similar to the Altman Z‐score, might be a better financial flexibility measure than long‐term debt ratio. The evidence also suggests that financial flexibility is a part of the firm's business strategy and is important for its capital structure decisions.

Originality/value

A major challenge for researchers is how to measure the firm's financial flexibility level, as it is unobservable and difficult to quantify. The innovation of this paper is to directly ask managers about the firm's financial flexibility, from both internal and external financing, construct several financial flexibility variables based on the survey data, and examine their correlations with the global financial crisis impact, to identify a robust financial flexibility measure. The research also provides unique data to investigate the value of financial flexibility during a severe credit crisis.
A query language for selecting, harmonizing, and aggregating heterogeneous XML data
Authors: Näppilä Turkka , Moilanen Katja , Niemi Timo
Published: April 2011

Purpose

The purpose of this paper is to introduce an expressive query language, called relational XML query language (RXQL), capable of dealing with heterogeneous Extensible Markup Language (XML) documents in data‐centric applications. In RXQL, data harmonization (i.e. the removal of heterogeneous factors from XML data) is integrated with typical data‐centric features (e.g. grouping, ordering, and aggregation).

Design/methodology/approach

RXQL is based on the XML relation representation, developed in the authors' previous work. This is a novel approach to unambiguously represent semistructured data relationally, which makes it possible in RXQL to manipulate XML data in a tuple‐oriented way, while XML data are typically manipulated in a path‐oriented way.

Findings

The user is able to describe the result of an RXQL query straightforwardly based on non‐XML syntax. The analysis of this description, through the mechanism developed in this paper, affords the automatic construction of the query result. This feature increases significantly the declarativeness of RXQL compared to the path‐oriented XML languages where the user needs to control the construction of the result extensively.

Practical implications

The authors' formal specification of the construction of the query result can be considered as an abstract implementation of RXQL.

Originality/value

RXQL is a declarative query language capable of integrating data harmonization seamlessly with other data‐centric features in the manipulation of heterogeneous XML data. So far, these kinds of XML query languages have been missing. Obviously, the expressive power of RXQL can be achieved by computationally complete XML languages, such as XQuery. However, these are not actual query languages, and the query formulation in them usually presupposes programming skills that are beyond the ordinary end‐user.
An emerging paradigm in confronting the rise of an innovative China
Authors: Foo Check‐Teck
Published: April 2011

Purpose

The purpose of this paper is to suggest an emerging paradigm by synthesizing what is presented at an Asian Productivity Organization (APO) study meeting. The meeting focuses on business strategy development. The author acts as the Chief Facilitator during the meeting. The paradigm is intended to help CEOs of firms in Asia to re‐model their businesses in light of rising, innovative China.

Design/methodology/approach

The APO (Japan) and China Productivity Center (Taipei, Taiwan) recently organized a Taipei study meeting. The theme of the meeting was on “post‐global financial crisis, (small, medium sized enterprises) SMEs' business development strategy”. In‐depth, rich experiences were shared during the discussion following the presentations. Founding CEOs, Presidents and senior leaders from industry were involved from the following countries: India, Indonesia, Iran, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam. Reflecting upon the materials presented, the author develops, through synthesis, an emerging Asian paradigm for evolving newer business models as part of organizational strategy development.

Findings

People always compete in the future. For businesses, besides keeping old customers, it is about the winning of contracts. For example, in the telecom industry, there is intense competition to produce newer, more innovative hand‐held devices. In the coming years, products using Chinese innovation will actively compete in the global marketplace. This pan‐Asia paradigm is useful for CEOs to begin to think about re‐shaping their business model to compete in the next wave.

Originality/value

Since the industrial age and up to very recently, ideas, concepts, methods, techniques, inventions, innovations and business models have been “borrowed” from the West by Asians and adapted to local environments. With the global crisis and consequently a deep weakening of Europe and the USA, there is a growing consensus among top management in Asia: that new thinking on management, for example in business modeling, ought to be drawn from the East. Thus, it is timely for the APO to be organizing such a study meeting.
Achieving competitive advantage in service supply chain: evidence from the Chinese steel industry
Authors: Hua Song , Ranjan Chatterjee Samir , Jingliang Chen
Published: April 2011

Purpose

Higher market complexity and increasing competitive intensity are forcing traditional trading companies to change their positions in the goods delivery services supply chain by continuously extending the service business through interaction with customers. However, the existing literature tends to be somewhat vague in defining interaction behaviors with different customers and a service strategy for the service integrator wishing to move along the continuum. The purpose of this paper is to identify service strategies that correspond with specific customer demands.

Design/methodology/approach

Using multiple methodologies and data sources, the study highlights three different service strategies including resources supply capability, demand management and strategy fit with buys.

Findings

The study finds that these strategies have different impacts on competitiveness for different types of downstream enterprises. For large enterprises, resources supply capability and strategy fit are significant factors – while for small and medium‐sized enterprises, resources supply capability, as well as demand management play an important role to supplier's competitiveness.

Originality/value

Based on the research, the paper draws the conclusion that it is important to understand the buyer's demand and offer the service that the buyer really needs.
Comparing job expectations of Chinese male and female college students
Authors: Tomkiewicz Joseph , Frankel Robert , Sagan Mariusz , Wang Chunfang
Published: April 2011

Purpose

The purpose of this paper is to examine gender differences in job expectations among Chinese university students and how they may affect the activities of organizations in attracting and retaining talent.

Design/methodology/approach

Since 1972, a number of studies have utilized a job‐orientation survey instrument developed by Manhardt. This study asked Chinese university students to rate 25 job characteristics according to their importance to the rater on a five‐point scale (5 – very important, 1 – not important) in the same manner as had previously been done by Manhardt and others, subsequently. There were 101 Chinese university business students surveyed.

Findings

Results showed that the rank order of importance which male and female students placed on job characteristics was similar. In addition, there were no significant differences between male and female students on either the intrinsic or extrinsic subset of variables, indicating that both genders could be approached similarly with regard to the basic issues that comprise a human resource portfolio.

Originality/value

The consistency of job expectations of males and females could be viewed as a positive characteristic by firms, as it simplifies the human resource portfolio design and thus would be cost effective. Whether such consistency across genders would remain true over time (i.e. as Chinese society and culture evolves) or across all industry segments and geographic regions, or in a variety of economic conditions is an issue for future research exploration and analysis. In regard to certain extrinsic items, females seem to exhibit the philosophy that “life is more than just work” and that flexibility in regard to work design is important. Human resource portfolios would be advised to consider opportunities for cross‐training to better meet such expectations, especially for females.
Modeling Islamic banks' efficiency: a non‐parametric frontier approach
Authors: Mostafa Mohamed M.
Published: April 2011

Purpose

The purpose of this paper is to measure the relative efficiency of the top 100 Islamic banks. The sensitivity of the results is also investigated.

Design/methodology/approach

Data envelopment analysis (DEA) method was applied to evaluate the relative efficiency of Islamic banks using cross‐sectional data for the year 2009. The use of DEA to measure Islamic banks' efficiency appears especially appropriate since this method does not require the specification of particular production or cost functions.

Findings

The results indicate that the performance of several banks is sub‐optimal, suggesting the potential for significant improvements. Separate benchmarks were derived for possible reductions in resources used, and significant savings are possible on this account.

Originality/value

From a policy perspective, the paper highlights the importance of encouraging increased efficiency throughout the Islamic banking industry.
A survey on Shari'ah governance practices in Malaysia, GCC countries and the UK
Authors: Hasan Zulkifli
Published: April 2011

Purpose

The purpose of this paper is to understand current Shari'ah governance practices with the purpose of promoting greater understanding of some of the crucial issues and to provide relevant information in guiding the future development of Shari'ah governance system. The paper illustrates the state of Shari'ah governance practices in Malaysia, GCC countries (Kuwait, Bahrain, United Arab Emirates, Qatar and Saudi Arabia) and the UK by highlighting five main elements of good corporate governance that consist of independence, competency, transparency, disclosure and consistency.

Design/methodology/approach

Since the availability of secondary data on Shari'ah governance practices is very limited, a detailed survey questionnaire is generated for sourcing primary data from Islamic Financial Institutions (IFIs). The study utilizes descriptive analysis approach in extracting and analyzing the data and factual input derived from the questionnaire feedback.

Findings

The survey findings affirm that there are significant differences and diverse Shari'ah governance practices in the case countries. This position acknowledges that there are shortcomings and weaknesses to the existing governance framework which needs further enhancement and improvement.

Practical implications

The paper is a very useful source of information that may provide relevant guidelines in guiding the future development of Shari'ah governance practices in IFIs.

Originality/value

This paper provides fresh data and recent information on the actual Shari'ah governance practices of IFIs in three jurisdictions.
Saudi Arabia's economic development: entrepreneurship as a strategy
Authors: Kayed Rasem N , Kabir Hassan M.
Published: April 2011

Purpose

The purpose of this paper is to critically review some of the existing literature relevant to Saudi Arabia's quest for development in order to build the argument for the viability of entrepreneurship to Saudi Arabia's development process.

Design/methodology/approach

The method employed in this study is a combination of critical examination of existing literature and the authors' personal experience with the developmental and entrepreneurial process.

Findings

The successive five‐year developmental plans failed to include an entrepreneurship sector, thus failing to address the most pressing unemployment problem facing the economy.

Research limitations/implications

The authors critically examined the issue of Saudi Arabia's economic development using secondary data coupled with field experience of the authors. This is a case study, so it did not employ any empirical analysis.

Practical implications

The findings of this paper will reinforce the importance of entrepreneurship as a diversification strategy among the policy‐making bodies in Saudi Arabia. Although Saudi Arabia advocates the policy of development maintaining Islamic values, the paper makes a case that such Islamic values should be implemented fully to achieve socio‐economic justice.

Originality/value

The paper comprises derived research based on country analysis coupled with the authors' practical experience with Saudi Arabia's economic development and entrepreneurial activities. It is original in the sense that the authors provide reasoned interpretations of Saudi Arabia's economic development and the role that an entrepreneurial sector can play in achieving balanced socio‐economic justice.
Multiple approaches in performance assessment of UAE commercial banks
Authors: Hassan Al‐Tamimi Hussein A. , Charif Husni
Published: April 2011

Purpose

The purpose of this paper is to assess performance factors in the UAE commercial banks by using multiple approaches taking into consideration the effect of the bank size.

Design/methodology/approach

The UAE banking sector is divided, for the purpose of this research, into two groups: large and small based on the total assets. The last balance sheet has been used for size classification; those with total assets of AED10 billion and above are considered large banks, whereas banks with total assets less than AED10 billion are considered small banks. This classification criteria led to a sample of 15 large and 23 small banks. The number of banks included in this study is only 38 banks due to the scarcity of available information. Data for the study cover the period from 1996 to 2005.

Findings

The main findings of this study indicate that generally large banks perform better than small banks. The results partially confirmed the hypothesis that there is a positive and significant statistical difference between the small and large banks regarding bank performance indicators. Finally, the results reveal that the ratio of total equity to total assets, which reflect the importance of capital adequacy to commercial banks, is the most important performance indicator taking into account the bank size. In other words, it was the determinative factor in the classification of banks into large or small ones.

Practical implications

The paper's findings support the proposition that in an environment where banks are highly fragmented, mostly small, and are not performing well, there is a need to consolidate the operations of some of these banks. That is, small banks, and even large ones, might be better off, if they are merged into one major institution in order to reduce waste and improve efficiency.

Originality/value

The paper will be of value to UAE banks and those interested in investment in the UAE financial markets.
Service quality models in banking: a review
Authors: Sangeetha Jaya , Mahalingam S.
Published: April 2011

Purpose

The purpose of this paper is to appraise various service quality models and identify issues for future research based on the analysis of literature.

Design/methodology/approach

The paper examines 14 different service quality models reported in the literature applicable to the banking sector. The critical review of the different service quality models is intended to compile the various dimensions which emerged out of the studies, compare the commonality between them, study their relevance and importance in banking in the various cultural and cultural contexts and highlight the limitations of the studies.

Findings

The review of various service quality models in banking revealed that the meaning of service quality may have some universal aspects, as demonstrated by the similarities in the underlying dimensions as proposed in the different studies. This paper lends support to the contention that the dimensionality of SERVQUAL and importance of the dimensions vary with the cultural and country context even within the banking industry.

Research limitations/implications

This paper comprises a compiled report on the different service quality models and the effect of application of SERVQUAL in banking in different countries.

Practical implications

Service quality has some common dimensions across the different models, however, the items involved and their operationalization in different cultural contexts within the same banking sector may vary. The paper indicates that a generic instrument for measurement of service quality or even one specifically developed for banking may not be applicable in its original form for all cultural contexts including Islamic society and banks. Development of the customized scale for measuring the service quality for a particular cultural or country context at that particular time is warranted. This paper brings a lot of information on service quality in banking under one roof and provides new directions to service quality researchers.

Originality/value

This paper offers practical help to researchers and practitioners in providing a direction for service quality improvement by indicating the common theme that emerges from the service quality models. Also, the differences in the relevance and importance of the dimensions, due to the change in the cultural and country contexts, have been brought to the forefront.
Global Marketing: A New Manifest Destiny?
Authors: Crespy Charles T.
Published: April 2011

Recent years have witnessed a “global” evangelism that has permeated both the trade and the academic press. The global doctrine has emerged as a new manifest destingy heralding the inevitability of a one market world (Levitt; 92).
The Japanese Phenomenon Without Stereotypes, and What We Can Learn from It (Part I)
Authors: Lee James A.
Published: April 2011

Most of the efforts to analyze the Japanese phenomenon have been in one way or another superficial or misguided. Moreover, there have been so many of them that most of us are simply tired of reading about Japan. This is unfortunate, because an honest look at the Japanese phenomenon can be very instructive. Many of the superficial analyses have focused on only one or two elements in Japan’s very complex socio‐industrial‐political system. These misguided analyses base their conclusions on something other than hard facts.
Retirement Plans for the Self‐Employed Small Business Owner
Authors: Padmaraj Raj , Balinski Kenneth , Blass Josef
Published: April 2011

With the enactment of the Tax Equity and Fiscal Responsibility Acts of 1982 (TEFRA) a number of legislative changes were introduced in the self‐employed business person’s retirement plans known as the Keogh plans. the intention of the legislature was to liberalize and modify many of the plan rules making the plans more attractive especially to small, self‐employed business owners. The basic approach taken by Congress was to put the self‐employed retirement plans on parity with much more generous corporate plans.
Probability Assessment in Small Business
Authors: Gupta Jatinder N.D. , Dianich David F.
Published: April 2011

Many practical decision problems in small business involve situations where complexities of the situation and uncertainty of future outcomes require rational analysis. This paper discusses the role of probability in risk analysis for small business situations involving uncertainties, describes an approach for probability assessments and discusses a way to ascertain one’s risk attitude in decision making.
J. Dwight Peterson and the Rescue of City Securities Corporation 1930‐1940
Authors: Geelhoed E. Bruce
Published: April 2011

American business historians now posses a well‐established collection of literature relating to the investment banking industry. Due to excellent studies written by Robert Sobel and Vincent Carosso, students of American business and financial history may study the histories of the major securities exchanges and several prominent investment banking houses, the development of the industry since 1945 as it relates to the growth and regulation of the national and international securities marekts, and the effect of the telecommunications revolution upon the industry.
Biases in Investor Decision Making: The Case of John DeLorean
Authors: Bateman Thomas S. , Schwenk Charles R.
Published: April 2011

Why do people so often make bad investment decisions – when it should have been clear from the beginning the decisions would turn sour? Using the John DeLorean case as an example, this article explores some of the natural human tendencies that adversely affect the quality of decision making. Investors, once they are aware of these biases, can take steps to counteract their influence and make more well‐informed decisions.
The Japanese Phenomenon Without Stereotypes, and What We Can Learn From It (Part II)
Authors: Lee James A.
Published: April 2011

Entrepreneurship as used here refers to the capacity for innovation, investment, and development of new marekts, products, and techniques. Using this definition, the Japanese have emerged as the world’s foremost entrepreneurs in the last twenty years. It is entrepreneurship that makes investment efficiency ratios high and leads to growth. Americans invented the transistor and most of the associated devices; but the Japanese, through an astute combination of capital investment and entrepreneurship, produced the electronic devices that contributed to their economic growth. They have learned what European and American managers practiced during and since the industrial revolution to the mid‐20th century.
Examining the Small Business Incubator Explosion
Authors: Kuratko Donald F. , LaFollette William R.
Published: April 2011

The growth of “incubators” as an economic development strategy for small businesses has exploded into a myriad of choices and options. This has confused community leaders and business people alike as to the appropriate approach for an incubator project. With such a diversity existing in the structure and purpose of incubators, a clear analysis of these new facilities would provide a better insight into understanding their services. This paper attempts to explain the incubator concept, examine they types of methods of incubator projects, and analyze the differences in services, structure, goals and results. A projected 150 incubators will be functional during 1986. This analysis may serve to understand the overall objective in incubator projects as they continue to be initiated.
Rebates: An Ethical Issue?
Authors: Avila Ramon A. , Avila Teresa K.
Published: April 2011

Rebates are a form of sales promotions that have seen increased use over the past few years, with the difficulty in compliance increasing over time. To avoid fraudulent rebate claims, manufacturers have established such stringent rebate requirements that many consumers are unable to satisfy them and realize the rebate. The issue has become one of ethics in that manufacturers are aware of these difficulties, and are relieved of their obligation concerning the offer. This paper analyzes the actions of manufacturers according to the ethical framework put forth by Laczniak (1983) and makes recommendations for change if rebates are to enjoy continued use free of regulation. Further, the impact of rebate offers on the lower classes is explored. It is postulated that the less sophisticated shoppers will be more affected by the requirements of rebates and the difficulties associated with compliance than the better informed shopper.
The Impact of Tax Simplification on Mortgate Buyouts
Authors: Woerheide Walt , Marquardt John
Published: April 2011

Whenever current mortgage rates are substantially higher than previous levels, mortgage lenders may find it attractive to extend to the borrowers a special opportunity to prepay all or part of the mortgages. The purpose of this paper is to identify the important issues in the buy‐out decision, analyze how buy‐back proposals might work using representative mortgages dating back to 1961, and to evaluate how current tax reform proposals will affect the buy‐out process. The empirical analysis demonstrates that only the lenders in the highest tax brackets would find such buy‐out programs profitable, while it is the borrowers in the lowest brackets that would find buy‐outs most attractive. The lack of lenders with high marginal tax rates and the lack of wealth by borrowers with low marginal rates suggests why such buy‐out programs have not been popular in recent years. The analysis of several recently proposed tax plans indicates that buy‐out programs should become more popular in the future, especially at such times as mortgage rates begin to climb again.
Investment Decisions with Labor Bottlenecsks
Authors: Adelsman Ron M. , Kochanowski Paul S.
Published: April 2011

This paper analyzes the keep‐versus‐replace decision whee labor shortages act as production bottlenecks, which can be lessened to some degree by employing new labor saving equipment. Additional realism is brought to the analysis by explicit consideration of product demand, learning, and multiple product situations.
Reframing the Argument for National Plant‐Closing Legislation
Authors: Kubasek Nancy
Published: April 2011

Many believe that a major problem in today’s economy is the unregulated movement of physical capital. Most other industrialized nations have plant‐closing legislation which prevents this problem from arising. This article explores possible reasons why proponents of such legislation have been unsuccessful in securing its passage in the United States, primarily a value preference for efficiency over equity and a restrictive definition of efficiency. Taking these reasons into consideration, the writer suggests an alternative rationale for plant‐closing legislation which has not been previously voiced arguing that (1) we should focus the debate over plant‐closing laws on whether they are dynamically, not allocatively, efficient, and (2) that we should consider whether the proposed legislation will help protect the most vulnerable members of our society.
U.S. Farm Programs and Their Impact on Exports: A Metaphor for International Trade Policy
Authors: Sauber Matthew H. , Spitz A. Edward
Published: April 2011

This paper addresses the issue of farm programs and their impact on United States exports. It suggests an alternative policy to deal with the problems of low prices, surpluses, excessive supports and augmented competition abroad. The authors depict the current situation in the U.S. farm economy first by reviewing the farm programs from the inception to the present time, their impact on supply and demand for farm products at home and abroad, and the competitive reactions from other countries, especially the European Community. The authors then introduce a policy of international cooperation in farm trade that emphasizes a free market system and focuses on issues of contention among U.S. trade partners. Using U.S. farm policy in general, the paper advocates general cooperation with other countries on the international front and an integrated policy‐making process in the domestic economy that articulates the government trade policy with a single strong voice.
Effective Computer Selection for a Small Business
Authors: Gupta Jatinder N.D. , Harris Thomas M. , Kuratko Donald F.
Published: April 2011

Computer use has become so common that most people think using one should increase the efficiency and effectiveness of business operations. Guided by these perceptions, a small business executive could invest in computers only to find that the costs incurred in the acquisition and use of the equipment are more than its benefits. This paper discusses computer selection in a small business and describes guidelines for making an effective computer equipment selection such that the benefits of its use are more than the total costs associated with it. These guidelines are simple, straightforward and can be implemented by a small business executive to increase the total profits of the firm without the need for any elaborate resources.
Information Needs of the Bank Loan Officer in Evaluating Loan Requests from Small Businesses
Authors: Hiltebeitel Kenneth M.
Published: April 2011

Commercial loans are a major source of financing for small businesses. To enhance the likelihood of obtaining a commercial loan with the most favorable terms, sufficient information must be made available to the bank loan officer (BLO). Based on a review of the banking literature and a study of 138 BLOs, the author identifies the primary information needs of the BLO, sources of this information, and procedures in processing this information. Findings of the study identify two information sources thatr are within the control of the load applicant. The data from these two important sources could have a significant influence in determining the outcome of a commercial load decision.
The Role of Foreign Trade Zones in Business Strategy
Authors: Beeman Don R. , Magill Sharon L.
Published: April 2011

This article discusses the competitive advantage firms can derive from the wise utilization of foreign trade zones. Recent environmental changes which have necessitated an increasing use of FTZs are discussed, as well as the benefits offered by FTZs as compared to other government tariff incentive programs. Several examples demonstrate the various ways information is given regarding the money required and the time involved in the establishment and use of an FTZ or a subzone.
Foreign Trade Zones: The Mid‐American Experience
Authors: Quraeshi Zahir A. , Mangla Inayat U. , Luqmani Mushtaq
Published: April 2011

Foreign trade zone (FTZ) usage in the United States has increased substantially in this decade. This paper discusses the major reasons for that increase, which include a favourable regulatory climate, growing awareness of the competitive benefits of operating within a zone, and community interest in promoting zones as an incentive to attract investment. Examined here are developments in the Mid‐American region, which reflect national trends. In Indiana, illinois, Ohio and Michigan there is considerable interest in general purpose zones, but so far business use has been limited. The major activity is occuring in subzones in individual manufacturing plants, and this is likely to continue in the region as well as nationally.
Insiders Can Disclose and Trade – Or Can They?
Authors: Ghosal Monojit , Stanley Kenneth L.
Published: April 2011

The article addresses the rather ambiguous doctrine of “disclose or abstain” with respect to insider trading. A brief review of The Securities Exchange Act of 1934 and court cases and judicial opinions suggests that the only real option available for someone possessing insider information is to abstain from trading on that information. The alternative of disclosing this information and trading does not appear to be a viable alternative. The authors offer a specific recommendation for new regulatory guidelines for disclosure which could, indeed, make this a realistic alternative.
Bank Holding Company Dividend Policies and Share Prices
Authors: Karna Adi S. , Graddy Duane B.
Published: April 2011

This paper analyzes the relationship between dividend policy and the rate of return on bank holding company (BHC) stocks. We hypothesize that the representative investor in BHC shares has a preference for dividend income over prospective capital gains return. Regulatory policy is hypothesized as playing a role in the determination of the substitutability between dividends and capital gains. To test our hypothesis, two different specifications of the SML were established for the years 1971‐80. Our cross‐sectional sample included forty‐four large BHCs. In general, the statistical evidence provides support for the supposition that investors in BHC stock do not consider expected dividend return and capital gain return as perfect substitutes.
Cost Finding and control for Flexible Manufacturing Systems
Authors: Mathew Zachariah , Kathawala Yunus
Published: April 2011

The use of robots to supplant direct labor, automated materials handling, computer controlled flexible manufacturing systems which are capable of producing a number of products within the same product line, and just‐in‐time production and distribution are creating a new manufacturing environment. As in the past, the need for assignment and control of direct material costs remains; however, the allocation and control of conversion costs can no longer be based on direct labor hours or labor costs. Further, since different products are produced in the same assembly line, the allocation and control of conversion costs, based on the materials used or units produced, is not possible. A machine cost per minute is, therefore, developed in order to allocate conversion costs to products and effectuate control over such costs.
The Power Index: A Tool for Achieving Proper Representation on Key Management Committees
Authors: Blocher Edward , Chow Chee W.
Published: April 2011

This paper describes a technique called the power index which a manager can use to evaluate the distribution of influence on key management committees. The important evaluation issues are concerns about equity (is thee balanced representation of contrasting interest groups?), concerns about effectiveness (is there a proper mix of representatives from each of the required areas of expertise – engineering, marketing, finance, etc.?), and concerns about the potential for one or more interest groups to dominate the decision process of the committee. The power index is explained in this paper, and it is illustrated with some examples of management uses.
America’s Creativity in Scienceand Technology: Past and Future
Authors: Lee James A.
Published: April 2011

America’s patent rate (per 100,000 population) rose steeply to 34 from 1820‐1885, hovered between 28‐36 for the next 40 years then started its plunge to the present 18. This article examines the numerous possible causes often found in the literature ‐ expenditures on R&D, poor patent protection, high fees and pendency delays, decline in education in sciences and engineering, etc. While there is some evidence to support each of these, none is as important as the decline in our immigrants from Europe. Projections of possible improvements in our creativity and innovation in sciences and technology are bound in the characteristics of our present and future immigrant streams, and these are not expected to replace the role played by our previous immigrant streams.
The future of American Unionism
Authors: Dworkin James B.
Published: April 2011

Given the changing structure of the American economy, many people (researchers and practitioners) have become partiucarly interested in the role that labor unions will play as we prepare to enter the twenty‐first century. In this paper, I review some of the basic problems that labour unions have faced in recent years and then outline three alternative scenarios for the future of the labor movement.
Scanning the Future Environment for Banking
Authors: Preble John F. , Reichel Arie
Published: April 2011

Environmental scanning is that part of the strategic planning process which monitors emerging changes and issues and determines their likely impact on business decisions. While sophisticated scanning systems are not yet widely used in the banking industry, much has been learned about such systems in other industries. The paper illustrates how that knowledge might be applied to banks, S&Ls, and MBHCs, which are facing increasing levels of environmental change.
A Method for Diagnosing the Right Problem
Authors: Darter Marvin E. , Acar William , Amadio William J.
Published: April 2011

olving the wrong problem is a common occurrence in business practice. This paper presents a straight forward procedure that can be used by a decision‐making unit to ensure a more complete diagnosis during problem formulation, and suggests a solution investigation scheme. The basic idea is to avoid wasting precious time treating symptoms instead of problems, and also to gain time during the diagnostic process by starting with a conceptual framework about the nature of problems.
Reducing Employer Health Care Expense: A Look at Transaction Costs
Authors: Blatter Gary J. , Fuglister Jayne
Published: April 2011

Almost all firms have taken measures to reduce the employee health claim cost component of health care expense. Many large firms have also been able to reduce the transaction costs of health insurance by changing to partial or full self‐insurance. For smaller firms the self‐insurance decision involves careful weighing of cash flow and tax considerations against risk consequences. This paper analyzes the risk trade offs inherent in the self‐insurance decision. A case study illustrates how cash flow and tax considerations affect the cost of partial and full self‐insurance for a medium size firm.
Implications Of Group Technology
Authors: Ahmed Nazim U. , Burton John E.
Published: April 2011

The concept of group technology (GT) is drawing increasing interest from manufacturing industry for its potential to enhance productivity and efficiency. This paper identifies the major areas of manufacturing and operations management where GT can be of significance. GT may have a sizable impact inparts design, by standardizing the design and eliminating redundancies. Computer‐aided process planning together with GT can vastly improve the productivity of process designers and also simplify the design. The benefits derived from GT in the area of production planning and control are reduced queue time, smaller lot‐sizes, less work‐in‐process, better scheduling and so on. The limitations of GT are the relative lack of experience with GT and the initial cost of change‐over to GT. It is suggested that implementations of GT should be a slow gradual shift rather than a sudden change of functional lay‐out.
Commercial Lending Officer and Small Business Client Relationships
Authors: Rubens Jack H. , Barton Sally C.
Published: April 2011

This article presents the results of an April 1986 mail survey of small business firms in Cuyahoga County, Ohio, concerning the relationship with their commercial bank lending officer. The survey examined loan types and rates, types of collateral,and bank and officer characteristics. Results indicate that 1) secured lines of credit were the most common loan type, 2) the reputation of the bank was the most important characteristic, 3) personal guarantees were the most common collateral type, and forty small businesses rely heavily upon the expertise and support of their commercial lending officers the businesses would seldom change banks for a half percent rate advantage.
An MIS Design Framework for Financial Planning and Budgeting Systems
Authors: Hayen Roger L. , Hartley Richard L. , Fisher Edward J.
Published: April 2011

Virtually all businesses must perform financial planning and budgeting. The paper presents a normative design framework for developing a management information system to support these activities. The design sustains planning processes across organizational levels. The system may be evoked with either a modeling or budgeting orientation which supports bottom‐up, top‐down, or in‐side‐out planning. An analysis function forges alink between top‐down and bottom‐up planning. This linkage provides flexibility in developing alternative business plans. The normative design provides a standard for creating and evaluating alternative system designs, to determine the most appropriate system for a particular business situation.
An Ethical Evolution of Interest
Authors: Stuhldreher Thomas J. , Ulrich Thomas A.
Published: April 2011

Charging interest on lonas is considered normal business practice. However, today consumers and regulators are taking a close look at interest rates and fees which at times seem unreasonably high. But charging even a reasonable rate of interest has not always been considered morally acceptable. This paper examines the ethical evolution which has taken place concerning the morality of charging interest. In doing so it provides an unerstanding of the historical and philosophical foundations with respect to the charging of interest.
Gender, Task Complexity and Risk Taking: Catch 22 for Women
Authors: Dunegan Kenneth J. , Duchon Dennis
Published: April 2011

Willingness to take risks is considered a quality of most successful managers (MacCrimmon and Wehrung 1986). There continues to be a societal stereotype, however, that women are not as inclined to engage in risk taking as their male counterparts. Research on whether this stereotype is justified has produced equivocal results, at best. This paper reports on a series of experiments which show there is a relationship between risk taking and task complexity such that the differences between male and female decisions, present in simple tasks, disappear as the tasks become more complex. Possible explanations for this phenomenon are discussed along with implications for women and the practicing manager.
The Role of Medium of Exchange in Acquisitions
Authors: Tessema Asrat
Published: April 2011

This paper investigates the role of method of payment in explaining the differences in returns to a bidding firm during the announcement period. The results indicate that the bidding firms’ returns are negative for equity payment bids and positive and significantly larger for cash bids. This is consistent with the view that cash‐offer announcements constitute a revelation by management of favorable new information about a firm’s future cash flows and vice versa for equity offerings. The results from this study provide an explanation of why business executives have been reluctant to issue equity even when they are raising the money to finance profitable projects like acquisitions. Executives relied on internal funds that allowed them to avoid the flotation costs of issuing new shares and the scrutiny by the financial market while limiting growth to that sustainable with internally generated funds.
Shift‐Share Analysis of Structural Change in the Local Economy: A Case Study
Authors: Bartholomew Wayne , Peck John E.
Published: April 2011

The economy today is characterized by the change in its structure from manufacturing to service production. In some communities, the process has been accelerated as existing firms choose to relocate to more economically favorable sites. The economic prospects of such communities will be determined in part by their ability to accommodate and adapt to this structural transformation. The purpose of the article is to illustrate the application of shift‐share analysis as one method by which these changes can be monitored. South Bend and Elkhart, Indiana serve as case studies.
Inventory Control Practices in Manufacturing Firms
Authors: Lee Stamm Carol , Golhar Damodar Y. , Smith Wayland P.
Published: April 2011

Inventory control practices in medium‐sized midwestern manufacturing firms (75 to 500 employees) were investigated. Items concerning inventory model used, shortages, number of suppliers and quality assurance were included in the survey. The total number of respondents was 212 (a 54 percent response rate). Our findings identify MRP as a widely used model at present, and MRP and JIT as the inventory models of choice for the future. These findings dictate appropriate educational emphasison MRP and JIT inventory models for both students and practitioners.
Merchant Liability:Changing the Standards
Authors: Walter Robert J.
Published: April 2011

This paper examines the changing merchant liability standards for criminal attacks occurring on business premises. Customer lawsuits seeking to hold businesses responsible for the criminal attacks of others are becoming more common. Selected cases illustrate the requirements to prove business negligence, the usual theory of merchant liability. Varying, sometimes conflicting, state court decisions set each state’s merchant liability standard for third party criminal attacks. Generally, state courts are now more willing to impose liability when merchants fail to protect customers from third party attacks. Four suggestions for merchant response to the varying standards are provided.
Rediscovering Creativity ‐ Unlearning Old Habits
Authors: Sabatine Frank J.
Published: April 2011

Creativity, innovation, and entrepreneurship are “buzz words” frequently used by American business professionals when discussing the question of how to adapt to our rapidly changing global economy. American companies are struggling to innovate in order to compete with foreign competitors, and senior managers are telling middle managers and supervisors, “Our people need to become more creative.”
Is In‐Substance Defeasance of Debt Too Good To Be True?
Authors: Apostolou Barbara , Jeffords Raymond
Published: April 2011

Many managers have taken advantage of the benefits associated with engaging in in‐substance defeasance of debt. For example, defeasance can generatea ccounting gains that result in higher reported income and earnings per share without a corresponding change in cash flows. Since the inception of this transaction in 1982, controversy over the accounting treatment of defeasance resulted in the issuance of Statement of Accounting Standards No. 76, Extinguishment of Debt. However, unsettled issues remain. This article describes the evolution of the defeasance transaction, the related controversial points, and explores the unsettled issues that remain so that due consideration can be given to a contemplated defeasance transaction.