The Business Review, Cambridge

Vol. 22 * Number 2 * December 2014

The Library of Congress, Washington, DC   *   ISSN 1553 - 5827

Online Computer Library Center   *   OCLC: 920449522

National Library of Australia * NLA: 55269788

Peer Reviewed Scholarly Journal

Most Trusted.  Most Cited.  Most Read.

All submissions are subject to a double blind review process

Main Page   *   Home   *   Scholarly Journals   *     Academic Conferences   *   Previous Issues   *   Journal Subscription

 

Submit Paper   *     Editorial Team   *    Tracks   *   Guideline   *   Sample Page   *   Standards for Authors / Editors

Members  *  Participating Universities   *   Editorial Policies   *   Jaabc Library   *   Publication Ethics

The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Business Review, Cambridge will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work.  All submissions are subject to a double blind peer review process. The Business Review, Cambridge is a refereed academic journal which  publishes the  scientific research findings in its field with the ISSN 1553-5827 issued by the Library of Congress, Washington, DC.  No Manuscript Will Be Accepted Without the Required Format.  All Manuscripts Should Be Professionally Proofread Before the Submission.  You can use www.editavenue.com for professional proofreading / editing etc...The journal will meet the quality and integrity requirements of applicable accreditation agencies (AACSB, regional) and journal evaluation organizations to insure our publications provide our authors publication venues that are recognized by their institutions for academic advancement and academically qualified statue. 

The Business Review, Cambridge is published two times a year, December and Summer. The e-mail: jaabc1@aol.com; Website: BRC  Requests for subscriptions, back issues, and changes of address, as well as advertising can be made via our e-mail address.. Manuscripts and other materials of an editorial nature should be directed to the Journal's e-mail address above. Address advertising inquiries to Advertising Manager.

Copyright: All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage and retrieval system, without the written permission of JAABC journals.  You are hereby notified that any disclosure, copying, distribution or use of any information (text; pictures; tables. etc..) from this web site or any other linked web pages is strictly prohibited. Request permission / Purchase article (s):  jaabc1@aol.com

 

Copyright 2000-2018. All Rights Reserved

Has the Town of Oak Island, N.C. Levied a Recurring, Annual Sewer District Fee/Tax against Owners of Developed and

Undeveloped Properties within the Boundaries of a Sewer District in Violation of the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution?

Dr. Kay M. Poston, Francis Marion University, Florence, S.C.

Dr. Brad R. Johnson, J.D., C.P.A. (Inactive), Francis Marion University, Florence, S.C.

 

INTRODUCTION

In a case study approach, this paper hypothesizes that the Town of Oak Island, N.C. (hereinafter, "the Town") has violated the Equal Protection Clause, U.S. Const. amend XIV, cl. 1, in executing the power of taxation that was delegated to it by the North Carolina (N.C.) General Assembly in a local act, S.L. 2004-96 (amended by S.L. 2006-54). Furthermore, after review of the facts in this case study, this paper finds that the Town created a property taxation scheme that violates such enabling legislation and the N.C. Constitution, where such scheme imposes a recurring, annual Sewer District Fee/Tax upon properties within the boundaries of a Town-established Sewer District that purportedly "could or [do] benefit from the availability of sewage treatment."(1) The authors assert that the burden of the Town's facially discriminatory property tax scheme falls by design in a predictably disproportionate way on owners of undeveloped property within the boundaries of the Sewer District. The authors also assert that there is no suggestion that N.C. has in practice adopted a system that authorizes the Town to independently fashion its own substantive taxation policy. Nevertheless, the Town has, on its own initiative, executed enabling legislation in the manner described in Part II, below, which, on its face, results in a significant and persistent disparity in the tax burden between undeveloped and developed properties within the boundaries of the Town-established Sewer District. Based upon the foregoing, the authors assert that such disparity in the Town's property tax scheme is unreasonable and confiscatory, on its face, in that such scheme unjustly discriminates against undeveloped property owners in favor of developed property owners, where such intentionally and systematically discriminatory burdening of undeveloped properties, in favor of developed properties, is hypothesized to deprive undeveloped property owners of their rights under the Equal Protection Clause, U.S. Const. amend XIV, cl. 1.  1. To establish the factual background of the case study surrounding the imposition by the Town of a recurring, annual Sewer District Fee/Tax to serve as the basis for hypothesizing an Equal Protection Clause claim [Part II].  2. To identify an Equal Protection Clause Paradigm for the purpose of analyzing the Equal Protection Clause claim hypothesized to have arisen from the factual background of the case study [Part III].  3.  To employ the Equal Protection Clause Paradigm in analyzing the hypothesized Equal Protection Clause claim, for the purpose of showing that the Town’s levy of a recurring, annual Sewer District Fee/Tax violates the Equal Protection Clause, U.S. Const. amend XIV, cl. 1, under a rational basis review [Part IV].  

 

Full text

 

Business Drivers Influencing Adoption of EMR and ERP Systems

Dr. Prasad Bingi, Indiana-Purdue University, Fort Wayne, IN

 

ABSTRACT

Electronic Medical Records (EMR) and Enterprise Resource Planning (ERP) systems are enterprise class systems that have received lot of attention due to their transformational effect not only on individual companies but also on national economies.  ERP systems initially were adopted by manufacturing companies and spread to other industries including education, retail, healthcare, logistics etc.  EMR systems are primarily used by hospitals to manage the patient information.  These two kinds of systems have some commonalities in their structure, scope, and functionality.  These systems incorporate highly integrated best in class functionality with modular structures allowing custom configurations.  While these systems are appealing, effective implementations of them are challenging as they impose enormous changes to the way organizations conduct their businesses.  Though the origin of these systems dates back to 1960s era, ERP systems have enjoyed a higher adoption than their cousins - EMR systems.  In this article, we examine the business drivers that influence the adoption of these systems and make comparisons between them.  This research brings together two streams of research for better understanding of them. Resource Planning, Enterprise applications, Health Information Technologies. Today’s business organizations are very complex, dynamic and global in nature.  Managing these complex entities require capabilities that only IT can provide.  Thus IT has become a backbone for enabling control and coordination of far flung parts of the organization.  Enterprise systems such as Enterprise Resource Planning (ERP) and Electronic Medical Records (EMR (1) have become popular means to capture, process, disseminate necessary information and assist in managerial or clinical decision making.  ERP and EMR systems have the same inherent structure with complicated parameter configurations (Hung, Chen, & Wang, 2014; MacKinnon & Wasserman, 2009).  Both of them feature a common database and modular integrated functionality.  ERP systems include business or administration functions such as finance, manufacturing, human resources, whereas EMR systems include clinical or health-related functions such as patient health information, results management (such as labs and radiology), computerized provider order entry (CPOE), clinical decision support (such as reminders, alerts, computer assisted diagnosis), electronic communication and connectivity, patient support, reporting and population health management (IOM, 2003). Both ERP systems and EMR systems are modular by design and organizations could follow phased implementations to reduce implementation risk and ensure smoother integration of new systems into the existing technological environment. 

 

Full text

 

Employee-Firm Related Conflict Factors and the Strategies for Remedy: A Conceptual Framework

Dr. Frank F. Cotae, Mount Royal University, Canada

 

ABSTRACT

The purpose of this paper is to present and group an array of factors affecting employee related conflicts within organizations and apply conflict mediating strategies in the pursuit of a conceptual framework. The identification and grouping of such factors is seen as an imperative as the generation of a general framework which can be applied and adapted to with a certain degree of generality to organizations regardless of the industry in which they operate. We therefore identify the following clusters of factors affecting conflict: environmental, individual and firm related factors based on which we issue propositions, strategies for remedy alongside managerial implications and a follow-up course of action. We find that sustainability and corporate social responsibility to be both sources of conflict and strategies for remedy when employed by firms.  Conflict theory has undergone significant changes in perspective over the past ten years; perhaps the most basic change is reflected in the emergence of the term conflict management (Rahim, 2002; Somech, Desivilya, and Lidogoster, 2009) alongside the term, conflict resolution. It has been generally accepted that a certain degree of conflict at key organizational levels – what may be termed substantive, cognitive or issue-oriented conflict – is to be tolerated for effective strategic development (Rahim, 2002; West and Noel, 2009).  Extant research has also shown it is not the presence of conflict alone, but rather how an organization identifies and addresses the sources of conflict that determines whether it becomes constructive or destructive to goal achievement and strategy realization and implementation (Amason, 1996; Kurtzberg & Mueller, 2005).  The existing conflict related research contributions have been following two general directions: one in which findings have been deduced based on rigorous tests therefore generating, refuting or defending theory and a general one that localized different traits – industry (Kurtzberg and Mueller, 2005), organization or topographical area specific (Maltz and Kohli, 2000; Cronin and Weingart, 2007) that lead to conceptual findings. These two directions, while valuable in defining the subject matter related to conflict, have been focused either on measuring a sample affected by conflict in a particular industry or geographical area, or have been conceptually qualitative without reaching a compilation within a framework. This paper attempts to address this gap by combining aspects from these two dimensions into a unified model, allowing for a more comprehensive discussion. Conflict, therefore is advanced here as a byproduct of three categories of sources: (a) organization and firm related; (b) individual related factors and (c) environmental and external related factors. Each of these categories is presented subsequently alongside the applicable strategies seen to support a firm’s ability to engage and retain employees and to maintain its commitment to organizational goals and strategy.  Identifying firm related factors seen to contribute to the emergence of conflict (and conflict management) followed studies and measurements already posted by researchers, as the concept is seen as global and encountered by organizations regardless of size, location or industry.

 

Full text

 

How Culture Affects the International Diffusion of Manufacturing Practices

Dr. Samuel Kelley, Fox Financial Services

Dr. David McCalman, University of Central Arkansas, AR

Dr. Jonathan Lee, University of Windsor, Canada

 

ABSTRACT

The national cultures of a firm's employees is believed to moderate firm actions via altering its organizational culture following Adler and Jelinek (1986). Moderators are based on the indices of power distance (PD), uncertainty avoidance (UA), masculinity/femininity (MF), and individualism/ collectivism (IC).  Based on the literature on organizational culture and technology diffusion, it is expected that the national cultures of firms will moderate the implementation and diffusion of new practices. Hofstede’s dimensions of culture are related to the implementation of the manufacturing practices of ISO 9000, TQM, JIT and other practices. Hypotheses are developed, based on the premise that practices are embedded in their culture of origin and diffuse most easily in organizations with similar cultural compositions.  It is hypothesized that individual cultural variables are more important when 'soft' human aspects rather than infrastructure or strategic attributes dominate a practice, but combined cultural variables exhibit more effect when 'hard' technical aspects of a practice are more important. Nelson and Winter (1982) proposed that technology accumulates at the firm level, and through a series of incremental choices a technological trajectory is pursued by adopting changes related to their competence. Firms may encounter a superior practice but uncertainty of its benefits and institutional inertia cause firms to continue along the same path of competence building and not recognizing that a discontinuity in best practice exists (Arthur, 1989). Based on the success of an innovation, it is selected out or expanded on based on its superior practices. As it expands, it gains legitimacy and other firms in the industry attempt to copy these practices. Several historical examples outline this view. Factory organization was a key component of the industrial revolution, despite the attention given to water power and steam power to drive mills. The development of interchangeable parts in the U.S. (American System of Manufacturing) took thirty years before the practices were transferred to two other armories, and over 100 years for it to evolve into the concept of standardization and mass production (Hounshell, 1984). It is suggested (Kogut, 1991) that through the application of superior managerial or organizational methods a single country can be dominant in many industries. Europe pioneered the automobile but not the process to make it available to the masses, despite efforts to apply mass production no European manufacturer was able to gain advantage in North America. Volkswagen competed on design and low wages, while other producers with American market share did so through craft production of luxury automobiles. Japan was able to penetrate the North American market only after developing Japanese manufacturing techniques (Toyotism) superior to the Fordist model. Prior to WWI superior productivity rates in the U.S. over Germany and the UK were attributable to the application of new organizing practices (Kogut, 1993). An interaction exists between the history that occurs within a culture, its shared mental programming, and the current state of its own organizational trajectory.

 

Full text

 

The Value of Academic Group Work: An Examination of Faculty and Student Perceptions

Dr. Joanne P. LaBeouf, Embry-Riddle Aeronautical University

Dr. John C. Griffith, Embry-Riddle Aeronautical University

Dr. Marian C. Schultz, The University of West Florida, FL

 

ABSTRACT

This research examined student and instructor perceptions on group work requirements in academic coursework.  Results for 330 faculty and 1,589 students were examined.  The study found that most faculty believed group work had academic value, had practical work applications and group project grades reflected individual contributions.  Most faculty disagreed that all students working on a group project received the same grade regardless of effort; however the majority of students expressed the opposite view. Most students also indicated they would not take a course specifically due to a group project component, but that group work provided practical applications for work and, most importantly, that grading on group projects was fair. Recommendations include future research to study effectiveness of group projects in online settings and developing processes to encourage student participation in all modalities. Motivated by business trends and urged by accrediting agencies, academic administrators have responded to the need for students to have group experience prior to entering the workforce. Several studies show positive results on group work. Su (2007), however, called for more studies using both qualitative and quantitative methods to better understand the factors that impact group learning. In support of Su’s idea, this study utilized both quantitative and qualitative methods to examine faculty (n=330) and student (n=1,589) survey responses.  This research was conducted at Embry-Riddle Aeronautical University’s Worldwide campus (ERAU WW), which has over 24,000 ‘non-traditional’ working adult students located around the world (Embry-Riddle Aeronautical University, 2013). Course terms are nine weeks long that differs from many universities and may impact this study’s results.  The significance of this study is the large number of survey respondents and the inclusion of faculty views, as well as students, across various instructional modes including Lecture, EagleVision (webcasting) Classroom, EagleVision (webcasting) Home, and Online.  Researchers have attempted to assess the overall value of group work with mixed results. Academic institutions have added technology components including online resources that are considered non-verbal and non-personal communication (Lemke, 1996).  Questions arose over grades for group work and whether a student’s grade should be based on the group product, the group process or both.  Psychologists in the 1960s conducted research on 48 advertising executives and 48 research scientists at the Minnesota Mining and Manufacturing Company to study the individual and group approach in brain storming.

 

Full text

 

The Impact of Safety and Security on Time Preference

Dr. Ze'ev Shtudiner, Ariel University, Ariel, Israel

Dr. Jeffrey Kantor, Professor, Ariel University, Ariel, Israel

 

ABSTRACT

Risk and Return are the traditional measures used in and for any finance decision. Other things being equal, the higher the return expected, the higher the risk one is willing to take (the lower the aversion to risk). In addition, other things being equal, the higher the return expected, the more likely that the emphasis on the present would be de-emphasized and there would be an increasing willingness to defer present benefits for future benefits. Depending upon how you count, anywhere between 5% and 15% of Jewish Israelis live in relatively high-risk (from a security point of view) areas. A productive normal business environment requires a calm environment-one that does not hamper business activity. Business productivity and success needs relatively happy customers.  Israel is a land of vast differences in comfort/security levels. There are residents in certain areas that have little to no security concerns. There are also areas where people live in absolute and constant fear and then there are those in the middle-people who are accustomed to calm but these periods of calm are rather often broken as a result of intense bursts of violence from enemies.  Over 1,700 people living in three areas were the subject of this study. At the one extreme are people who live in the Tel Aviv area-one of the worlds’ best cities (in terms of standard and quality of living).  At the other extreme are people living in the towns and villages of Judea and Samaria where Moslems and Jews live in relatively close proximity. In these areas the risk of terror attacks is continuous.  Other areas where data was collected are the large city of Ariel; close to the Gaza border and in Jerusalem.  As a result of the uncertainty inherent in residence in high-risk areas we found that the subjective discount rate and the present-orientation of the residents who live in those areas are higher than that of residents in low-risk areas.  Living under the threat of terrorism is perceived by many as a very stressful situation, one that has an impact on individuals’ daily lives, policymaking, and a nation’s perception of its own security. The Israeli-Palestinian conflict has led to continuous terrorism in which citizens on both sides need to cope with an “ongoing, threatening situation on a daily basis” (Tatar et al. 2010).  Populations living under the threat of terrorism have a “high risk of developing symptoms of distress”. In severe cases, post-traumatic stress disorder1 (PTSD) can result from exposure to terrorist attacks (Kimhi & Shamai 2006). This impact on individuals’ daily lives can also influence their time preference. Time preference is represented by the personal discount rate. An individual who values the present more than the future will have a higher personal discount rate in comparison to a person who places more value on the future as opposed to the present. An important individual characteristic that may influence time preference is risk aversion, the tendency of an individual to refrain from taking risks or to take them. In the current paper, we compare the time discount of Jewish Israelis who live in relatively high-risk (from a security point of view) areas to the time discount of Jewish Israelis who live in relatively low-risk areas.  At the one extreme are people who live in the Tel Aviv area - a low risk area. 

 

Full text

 

Estimation of the Energy Demand in Yemen: An Econometrics Model Approach 1990 – 2012

Dr. Abdulkarim Ali Dahan, Ajman University of Science & Technology, Ajman, UAE

 

ABSTRACT

The purpose of this paper is to analyze the relationship between energy consumption and economic growth in Yemen during the period 1990 – 2012. The paper will also assess the impacts of changes in energy prices on aggregate energy consumption, and finally, the paper will analyze the relationship between efficiency (oil intensity of use) and total energy consumption during the same period. We used time series data to provide estimates of elasticities. Empirical results showed: (1) The impact of income on energy consumption is positive and was represented by the high elasticity. (2) The price-index has no significant effect on restraining total energy demand. (3) A significant effect of efficiency on energy consumption indicated by the high elasticity reported. The paper concludes that, both income and efficiency variables have significant impact, as expected, on the demand for energy consumption in Yemen. As these two factors increase over time, energy consumption will increase and be more efficient for use, which is consistent with the goals of economic growth and the sustainability of development in the future. The price, on the other hand, has no significant effect on restraining the demand for energy. Low energy prices will always increase its demand and bring into more inefficient use of energy, which implies that actions are essential for more sustainable development without adverse effects on national growth targets. Since the beginning of the nineties, Yemen has gone through significant structural changes in its economy. These changes have included rapid increases in the demand for energy use domestically, which have increased from 76,000 barrel per day in 1990 to 177,000 barrel per day in 2012, growing at an annual average rate of 29.7 %. Factors such as rising incomes, population growth, and cheap energy prices were the main sources for such increases. Petroleum products’ prices, which do not reflect the real cost of production, remained low comparing to international standards. These low prices permitted such inefficient use of energy and gave no such incentives for consumers to conserve energy.  Since the economic reform program, initiated in the mid of 1990s, the government of Yemen has taken measures and policies to reduce this inefficient use in energy consumption. Its last measures were taken in 2005 and 2011 when prices of energy went up by almost 60-80%.  What motivated me to do this study is that, the lack of published studies on Yemen that analyze energy consumption or investigate analytically its determinants. It was that realization which prompted this study of energy demand and the development of a behavioral equation, consistent with economic theory, that provide information concerning the energy consumption and the behavior of consumers in Yemen.  Early in this study, it became clear that a comprehensive model of Yemen energy consumption could not be constructed and estimated because of the unavailability of data on important determinants. Consequently, when model could be estimated, it is by necessity simple. Modeling in this study is not an end of itself; rather it is justified only to the extent that it facilitates the identification of future consumption possibilities and of useful energy policies  

 

Full text

 

Using the International Internal Auditing Standards (IIA's) in the Public Universities in Jordan

Dr. Audeh Ahmad Bani-Ahmad, Al Al-Bayt University, Jordan

 

ABSTRACT

This study aimed to identifying the public Jordanian universities using the standards of internal audit International. In Jordan, there are nine universities that are defined as public universities. To achieve the objective of the study; a questionnaire was designed and distributed on the internal auditors in these universities. Twenty eight questioners (n=28) were included in the study and obtained data were analyzed using SPSS where. Results revealed that Jordanian public universities are applying the international standards of internal audit where quality standards are the most frequently used. Even so that the implementation standards comes with a high degree, while the performance criteria are not used in these universities, and also there are some difficulties that limit their use, but moderately. The study recommends increasing the use of international standards of internal audit in the public Jordanian universities, and private performance standards, bringing together the efficiency of the internal control devices in these universities. The primary focus of the universities and their presidential offices is to provide the public and private sectors with distinguished human capital. Even so those Jordanian public universities are financially and administratively independent institutions; still they apply a governmental accounting system and receive financial support to cover a major part of their financial and administrative activities. Considering the fact that they are non-profit organizations, other financial resources are available including tuition and registration fees from the parallel academic programs as well as some investment activities. Generally, public universities encounter several challenges imposed to senior management methods including the application of administrative and financial commitment to regulations of public universities. Such challenges are compelling them to provide effective internal control system using international standards for internal auditing as its guides constitute an integrated help to ensure the implementation of their internal audit activities effectively. The problem is the existence and implementation of traditional financial and supervisory systems in public universities as a reference for all transactions in public universities particularly as well as the government accounting system. However, with the expansion of institutions specifically in the number of financial transactions and investment activities, public universities must find an appropriate system to cope with that expansion.  The major concern of the current study is to investigate the extent of implementing the International Standards for Internal Audit by public universities in Jordan by answering the following questions:  1. Do you use Jordanian quality standards of public universities.  2.  Do you use Jordanian performance standards of public universities?  3. Do you use Jordanian implementation standards of public universities? 4. Are there difficulties that limit the use of international standards of internal audit in the Jordanian public universities? The significance of the study is to expose the value and efficiency of using the international standards for internal audit in terms of preserving the assets of the university and reducing the risks of related to financial resources and investment effectiveness in the university. Furthermore, the characteristics of high quality standards that to cope with the public universities demands will be determined.

 

Full text

 

Factors Affecting the Adoption of Electronic Government in State of Kuwait

Dr. Abdullah. S. AL-Owaisi, Ministry of Commerce and Trade, Kuwait

 

ABSTRACT

The objective of this research is to determine factors affecting the adoption of e-government implementation and usage in Kuwait. An empirical case study using an interview-based research agenda is adopted. After reviewing the literature on e-government, the paper firstly proposes a conceptual model, which is consequently used to determine empirically in Kuwait, the key factors affecting e-government implementation and usage from organizational, technological, social, and political perspectives. The present paper introduces a comprehensive overview of barriers facing the implementation & usage of e-government in Kuwait. Electronic government is defined as the use of information and communication technology, particularly the internet, as the means to improve government administration efficiency and deliver services to citizens, business, and other entities (carter & Belanger, 2005; UN e-government survey, 2008). When analyzing the extent literature on e-government, different studies have identified various factors that impact implementation & usage (weerakkody et al., 2007; Irani et al., 2007; Chen et al., 2006; Gichoy a., 2005; Chercu & Lee, 2005; Refaat, 2003; Moon, 2002). A common argument that has also surfaced in the literature is that e-government offers many benefits and can potentially offer opportunities to developing countries (Ndou, 2004; Kurunanada and Weerakkody, 2006; Irani et al., 2007). Yet although the benefits of electronic services are well documented, the implementation of e-government has faced many challenges in both developed & developing countries. The reason for such challenges are often explained by researchers as influenced by the complexity of the changes that are faced by the public sector, which are primarily driven by the internet and its array of associated information and communication technology (ICT; Beynon – Davies & Williams, 2004). Like many other countries in the Middle East region Kuwait officially began its public sector electronic services initiatives in 2008, yet have not achieved the necessary level of success in terms of implementation and usage in addition, to date, no previous studies have been conducted to understand the implementation and usage challenges of e-government in Kuwait. These arguments provide the motivation for this research.  The research is structured as follows. The next section presents the key factors affecting e-government implementation & usage through a synthesis of extent literature. This is followed by the presentation of a conceptual model for e-government implementation & usage in section 3. Section 4 then outlines the research approach used for the study. Section 5 outlines the findings of an empirical study conducted to determine how the key factors identified in section 2 related to the State of Kuwait context. A discussion follows in section 6, where the empirical findings are then synthesized with the literature.

 

Full text

 

The Factors Required to Accounting and the Process of Accounting in Turkey

Dr. Huseyin Cetin, Necmettin Erbakan University, Konya, Turkey

 

ABSTRACT

In the world of globalization, the economies continuously change at both national and international levels and improve its growth. Day by day, the financial structures of managements and institutions and the financial operations that they meet change and develop. The needs of information that those having a relation with some financial events that increase its growth and variety, also with a management cause that the accounting operations in managements are made, changed, and developed. ‘Accounting’ and all other concepts that people use are the concepts emerging necessarily or casually. The concepts emerging casually now wait for the day when they will serve for a purpose. In this study, in order to show that the accounting for which foundation is ‘recording’ has not casually emerge; it has come out to fulfill people’s needs of information. It is a concept that changes and develops in the aspect of needs and how these needs shape the accounting applications under a dense pressure. It has been given the information related to the concept of accounting, the factors necessitating to the development of accounting, and the process of accounting in the world and Turkey with broad strokes. While the definitions about the accounting are defined, the concepts of accounting, which indicate the assets of a management and the resources from which these assets are obtained, starts by the process of recording of financial events related to a management, are defined. The result derived from these definitions form an opinion on accounting, is a process occurring in the managements. With this, housewives, villagers, city-dwellers, teachers, students, civil servants, and similar persons and groups that are not a management have got some assets and debts. Defining the accounting by a management can be thought that the factors that require keeping accounts in non-managements and groups are not an effective and a high need as much as managements. Starting from this point, accounting, in other words, keeping accounts and recording; balanced with the existence of the factors necessary to accounting. The procedures of accounting have not come out by a single work or one person’s efforts. The procedures of accounting develop spontaneously to fulfill needs and necessities, depending on the changes in the economic activities (Ozyurek, 2009: 11). If we treat the operation of ‘fishing from the river’, which is used in economy as an example; a person who catches a fish from a river is able to record the number of the fishes on daily basis that he catches so that “how many fishes I caught yesterday or day before yesterday”, for the fishes that he caught. Consequently, he is able to determine how many fishes he can catch on particular days or to seek some reason for increases and decreases in the number of fishes that he catches. In addition, if he could not keep its accounts, namely, record in no way, he will not meet with any pressure because he could not do it.  “Accounting”, according to the Turkish Language Institution, is used to mean, “rendering an account, reciprocally accounting, making an effort with accounts, the complete of accounts, and the place where accounting work are performed” (tdk.gov.tr).  Accounting, which can be shortly defined as “a system providing information” (Cemalcilar, et al., 2002: 15), is a process used by the aim of measuring the financial information related to economic activities of a management, and of reporting these information to different users.

 

Full text

 

The Relationship Between Consumers’ Need for Uniqueness and Market Mavenism

Zana Civre, University of Primorska and University of Ljubljana, Slovenia

 

ABSTRACT

The present paper aims to expand the knowledge of a psychological concept - consumers’ need for uniqueness (CNFU) and its role in the decision-making process in consumer behavior. The concept of CNFU derives from Snyder and Fromkin’s (1977) theory of uniqueness, which posits that many consumers have a need to be at least slightly special or even unique. Moreover, uniqueness is a motivating factor that influences some consumers to become market mavens (Goldsmith, Clark and Goldsmith, 2006), who are highly involved in the marketplace and are experts who like to provide marketplace information about a multitude of products and services to other consumers (Feick and Price, 1987; Clark and Goldsmith, 2005). Following this view, in the present paper the relationship between CNFU and market mavenism in a tourism context was empirically tested among 235 young adults in Slovenia. The results of the study reveal that there is a positive relationship between CNFU and market mavenism in terms of two dimensions of CNFU: creative choice counter-conformity and unpopular choice counter-conformity. Therefore, marketers in tourism need to be aware that consumers who have a desire to be special or unique are also market mavens, who are consequently influencing the purchasing decisions of other consumers. The objective of this paper is to highlight the importance of the CNFU concept in relation to market mavenism. The relationship between constructs was tested in tourism context. Need for uniqueness (NFU) has its foundation in a positive psychological concept that reflects the notion that being different from others is something positive (Fromkin, 1972; Snyder, 1992; Snyder and Fromkin, 1977, 1980). In uniqueness theory, people’s emotional, cognitive, and behavioral responses to information define their similarity to others (Snyder and Fromkin, 1980). Tian et al. (2001) go so far as to suggest CNFU can be seen as an extension of self and thus be included in a broader theory of consumption (Belk, 1988). Individuals choose what to buy in order to express their uniqueness, even, at times without regard for social acceptance (Simonson and Nowlis, 2000). CNFU, defined as a psychological trait (Zhan and He, 2012) and as a relatively new concept in contemporary consumer behavior literature, is still attracting a limited number of researchers. Additionally, CNFU has received limited academic attention as a main concept (e.g., Ruvio, Shoham, Brenčič, 2008).  On the other hand, research into the psychology of market mavenism as a socially constructed phenomenon and possible consequence of CNFU (Goldsmith, Clark and Goldsmith, 2006) is a relatively recently recognized phenomenon (Clark and Goldsmith, 2005) as well. Market mavens are, in brief, defined as consumers highly involved in the marketplace with extensive knowledge about products or services (Feick and Price, 1987). Thus, market mavenism is applicable to the field of tourism as well.  In view of the nature of the changing tourism sector, it is important to address some of the key changes affecting young travelers. In 2013, world travel and tourism grew faster than the global economy (4% rise in international trips). Trends have also made an impact on the customer experience, as tourists strive for more individual experiences (e.g., smaller, personalized hotels, unique locations, etc.). To begin with, young people have become a greater factor in tourism in recent decades as they have been traveling more frequently, greater distances, and to more ‘exotic’ locations.

 

Full text

 

Effects of Forced Responses and Question Display Styles on Web Survey’s Completion Rate

Dr. Chatpong Tangmanee, Chulalongkorn University, Bangkok, Thailand

Phattharaphong Niruttinanon, Chulalongkorn University, Bangkok, Thailand

 

ABSTRACT

A web survey has gained remarkable acceptance, especially among social science researchers. Previous studies have examined factors contributing to a completion rate. However, virtually no empirical work has examined the effects of forced responses and question display styles together on a web survey’s response rate. The current study attempted to fill this gap.  Using a quasi experiment approach, we obtained 778 unique responses to six (i.e., 3 levels of forced responses x 2 styles of question display) comparable web questionnaires of identical contents. The analysis confirmed that (1) the effect of forced responses on the completion rate was statistically significant at a 0.05 level but (2) the effect of question display on it was not significant.  In addition to extending the theoretical insight into factors contributing to a web survey’s completion rate, the findings have offered recommendations to enhance the completion rate in a web survey project. Online questionnaires are tools social science researchers have adopted to gather data from samples through major web browsers. The increasing number of publications have addressed issues on how to implement a survey using online questionnaires because they have certain advantages and limitations (Reips, 2002; Reips, et al., 2007). Compared to the offline counterpart, online questionnaires offer three major advantages. They include (1) a small amount of error in recording the collected data into a file since the data were saved as soon as a sample responded to questionnaire items, (2) quick data analysis and data collection processes because of the Internet’s worldwide accessibility, and (3) a cost-justified survey on a general topic since researchers could reach a large group of targeted sample.  However, an online survey project do have two limitations that researchers must have a proper plan to minimize prior to starting the data collection. First, an online survey always reaches only the Internet users. If the project’s target population taps those whose profiles are not largely shared with the Internet user, researchers may have to give up the online version. Second, given the Internet nature, the samples’ responses may not be the same as when the paper-based questionnaires are used. Such responses include those from the same subject or from unqualified samples. They could immensely distort the finding’s validity and reliability. As a result, researchers may have a set of screening questions to eliminate the unqualified samples or check the samples’ IP address of their online responses. If two responses of the same IP address are given within a short period of time interval, researchers may have to pay close attention to all responses from that IP address (Albaum, et al., 2010). One quality check of a survey project is through a completion rate. It is the number of completed responses divided by the total number of responses. It also indicates the extent to which samples are determined to respond to the entire questionnaires. Using an online survey, it is fairly difficult for a researcher to design the questionnaire that could retain a sample’s focus so he or she could respond to the entire questionnaire (Fan & Yan, 2009). Dillman (2007) remarked that there is no single design solution to gain the sample’s attention throughout the answering session. The researcher must be attentive to the holistic design in order to increase the completion rate. Polonsky and Vocino (2010) suggested based on their experiment that old and employed subjects were more likely to complete web-based questionnaires than the young or unemployed samples. Among many attempts to examine factors affecting an online survey’s completion rate, forced response and question display styles are of our interest since no previous attempt has addressed them in the same  study. Forced responses refer to an online survey execution through which a sample is reminded to answer to a questionnaire item, if he or she has missed it. This feature is impossible in a traditional paper-based survey. With certain programmability, it is easy to detect any missing questionnaire items and forcibly remind the sample to answer. The sample could not proceed to the next step unless he or she must respond to the missing item.

 

Full text

 

The Effect of Management Information Systems Use Level and Innovation Skill on Business Performance: A Research on Konya Techno Parks

Dr. Ahmet Diken, Necmettin Erbakan University, Konya, Turkey

Emine Nihan Cici Karaboga, Necmettin Erbakan University, Konya, Turkey

 

ABSTRACT

In the world of globalization, the economies continuously change at both national and international levels and improve its growth. Day by day, the financial structures of managements and institutions and the financial operations that they meet change and develop. The needs of information that those having a relation with some financial events that increase its growth and variety, also with a management cause that the accounting operations in managements are made, changed, and developed. ‘Accounting’ and all other concepts that people use are the concepts emerging necessarily or casually. The concepts emerging casually now wait for the day when they will serve for a purpose. In this study, in order to show that the accounting for which foundation is ‘recording’ has not casually emerge; it has come out to fulfill people’s needs of information. It is a concept that changes and develops in the aspect of needs and how these needs shape the accounting applications under a dense pressure. It has been given the information related to the concept of accounting, the factors necessitating to the development of accounting, and the process of accounting in the world and Turkey with broad strokes. Innovation has an active role in creating demand and supply realization. Innovation is a better business performance for the business, an effective tool in developing effective innovativeness, competition strategies and competitive advantage (Vossen, 1998:89). Innovation is about the processes, products, organization structures, administrative-management systems, organization structures and marketing methods in business (Al-Ansari, Altalib and Sardoh, 2013: 2).  Innovation takes an active role in creating demand and actualizing supply. An innovation is the actualization of a new or important product (goods or service) or a process in internal applications, workplace organization or foreign relations, a new marketing method or a new organizational marketing (OECD and Eurostat, 2006). Using the management information systems actively in business has important effect on innovation, production, finance management and marketing performance. In his study, Gok (2005), explains the effect of management information systems application and use levels on innovation, production, finance and marketing performance as follows (Gok, 2005: 400-40, rpt. by Dulkadir and Akkoyun, 2013:77): In production performance, businesses use especially information technology systems in order to solve the problems which occur as a result of irregularity or conflict between production functions and other systems. These systems can improve the business performance through providing connection between the computer systems and effective communication.  In financial performance, decreasing the process time of information technology systems, use of unutilized capacity, inventory management, having effective relations with foreign partners helps to get information easily and cheaply and by the help of long term competition advantage, customer potential and as a result having a benefit reflection increase.  In marketing performance, information technology system actualize the highest level customer relations which enables cooperation in business departments and through its enabling cooperation this becomes the first goal of marketing managers who invest in the future.

 

Full text

 

Political Discourse and Its Relationship to Education in Developing Countries and the Developed: A Comparative Analysis

Dr. Wafa Own, King Saud University, Saudi Arabia

 

INTRODUCTION

Human rights for the many reinforce humanity and the sense of value for the individual, and the most important of these rights is the right to education. where he makes an individual knows himself, and is aware of the nature of the society in which they live, and thus affected and affects it; So why education is a luxury, then current rapid development, and does not understand it and deal with it improves not matched ;, but it will lag a lot (Koicher, and Mathura 2000.15). This is because the education the most powerful way to educate a people, and mass culture is that you move the educational model of cultural format to another (Jeddle, 2002.305). It can be said that these authors did not have an issue with education, as most of the world's governments are trying to develop education to be able to face the global challenges. There has largely been agreement between the world's countries since the 1990's that education for all is a reality that can take advantage of the knowledge industries created by the contemporary scientific and technological revolution. So it was not without a political speech, whether in developing countries or developed countries, that signal from near or far about education, and its importance, and development, but not the educational issues that concern the country. The importance of education as a strategic goal can be careful to achieve, and the approach to education in the political discourse of the country to another, and from one community to another, each according to his view of education, and the degree of need him, in some states seen the goal of education to get out of illiteracy, teaching reading and writing, while the goal in other countries how to reach space, and control of the universe.  Consequently, the problem of the current study to learn about differences in the political discourse in education for developing countries and developed countries. This leads to the following questions: 1. What is the reality of education in the political discourse in developing countries? 2. What is the reality of education in the political discourse in developed countries? 3. What are the difference between developed and developing countries in dealing with the issues of education political discourse ? The present study aims to: 1. Analysis of the current situation of education within the political discourse for some developing countries. 2. Analysis of the current situation of education within the political discourse of some developed countries. 3. Recognize the fundamental differences between developed and developing countries in dealing with education issues in political discourse. Importance of the study: This study is the importance of being contribute to the descriptive display for education issues involved in the political discourse of the developing countries compared to developed countries, explaining how to deal with kings and heads of state for education issues, also gaining importance again to identify the degree of the state's interest in education and related issues. The current study is based on the basic procedures on the use of descriptive and analytical documentary approach, and through the analysis of some political speeches in the education of some developed and developing countries.  

 

Full text

 

Fostering Academic Entrepreneurship in Taiwan: A Survey of Academic Patent Inventors

Dr. Phil Yihsing Yang, National Taichung University of Education, Taichung, Taiwan

Ding-Li Lin, National Taichung University of Education, Taichung, Taiwan

 

ABSTRACT

Academic research institutions have been increasingly in protecting, transferring, and commercializing their research findings and intellectual property rights, but little work has been done in understanding academic entrepreneurship from the lens of academic patent inventors.  In order to examine the factors in fostering academic entrepreneurship, we argued that the levels of institutional, organisational, networking and individual need to be concerned together. Based on the Patent Database of the National Science Council in Taiwan, 524 academic entrepreneurs who invented patents in Taiwanese higher educational institutions were identified and surveyed. Two hundred and forty-one respondents were collected with a 46% response rate. Four key factors in fostering academic entrepreneurship were identified through a factor analysis. The paper is concluded that four dimensions evidently shape fostering academic entrepreneurship: institutional level (i.e. entrepreneurial legitimacy), organizational level (i.e. entrepreneurial support), entrepreneurial network, and individual level (i.e. entrepreneurial orientation). With the development of a knowledge-based economy, academia has become the engine of regional economic development (Chrisman et al., 1995; Etzkowitz, 2003). Many technical entrepreneurs (often from university backgrounds) have founded high-tech start-ups, and play an important role in employment creation (Mowery and Ziedonis, 2002). Prior research has shown that commercially oriented university-activity, like patenting and licensing, has been important to the growth of the scientific instrument, semiconductor, computer software, and biotechnology industries (Rosenberg and Nelson, 1994; Smith and Parr, 2003). Indeed, this function of economic creation brings the potential of academic knowledge base to subvert existing operation pattern, and most importantly innovates market demands by exploiting state-of-the-art knowledge/technology. Academic scientists chance to become academic entrepreneurs who use academia-based technology to exploit entrepreneurial outcomes. Although the research outcomes are mainly developed from academic scientists, researchers’ involvement in industrializing their research outcomes is still minimal. The existing research tends to investigate academic entrepreneurial activities by assuming that is the sum of individual processes (Bercovitz and Feldman, 2008; Mowery and Ziedonis, 2002), and overlook individual attributes and behaviors. Previous work focuses on a few elite academic institutions (e.g., Raine and Beukman, 2002; Shane, 2004a;), and thus ignores the bulk of research capacity in other regions. Moreover, prior research emphasizes the importance of assistance from the Technology Transfer/License Office (Jensen et al., 2003; Lach and Schankerman, 2004; Ambos et al., 2008), and overlooks the role of academic scientists who are the technology providers of entrepreneurial academia.

 

Full text

 

Implementation of Corporate Governance Rules and Procedures in Lebanese Firms

Dr. Walid Elgammal, Lebanese American University, Beirut, Lebanon

Tony Assad, Lebanese American University, Beirut, Lebanon

Lilas Jurdy, Lebanese American University, Beirut, Lebanon

 

ABSTRACT

This study aims to evaluate the degree of disclosure implementation of corporate governance rules in developing/emerging nations by studying the Lebanese case. Few research works have been conducted regarding the implementation of corporate governance rules by Lebanese firms. The study includes a summary of past and current developments of corporate governance in emerging countries. In particular, it focuses on the important developments in Lebanon regarding the disclosure of corporate governance practices as well as the framework of regulatory practices, aiming to assess the score of corporate disclosure among leading Lebanese firms. Data for the study is generated through a questionnaire that complies with the United Nations corporate governance check-list. The questionnaire was distributed to a sample of managers of 30 leading Lebanese firms. The results of this research overlap with past researches done on emerging countries which suggest that the degree of corporate governance disclosure in these countries is relatively low, hence calling for more regulations-enforcement to the implementation of corporate governance rules. The results are significantly important indicators to the low level of implementation of corporate governance procedures in Lebanon.  The study also highlights the low level of implementation of corporate governance rules in emerging countries other than Lebanon, and sheds light on the existence of a serious problem which is the deficiency of awareness in developing nations regarding the necessity and the benefits of corporate governance, added to a lack of regulatory agencies enforcing governance rules. The results suggest that, in order to enhance and improve the implementation level of corporate governance disclosures, Lebanese firms should increase the level of knowledge and education of corporate governance benefits, especially at the top management level. According to the Organization of Economic Cooperation and Development (OECD, 2004), corporate governance is defined as a system implemented in the company which guides and supervises the whole company. This system’s main function is to improve economic efficiency and growth. Proper corporate governance in a business leads to: increased investor’s confidence, organized set of relationships among the company's key elements such as shareholders, management, board of directors, and all stakeholders, and the achievement of goals. It also helps the organization to determine the means to achieve its objectives and monitor its performance. Moreover, good corporate governance practices take into account incentives and ensure that the company has an accountable board of directors and top management who work in the best interest of the company and its investors (Hashanah and Mazlina, 2005). The benefits of corporate governance of organizations in developing countries are many. If applied properly, corporate governance enhances growth rate and economic efficiency of the firms. Also, it increases the confidence level in the national economy and promotes economic growth. In addition to these, corporate governance emphasizes the protection of rights of minority shareholders against the majority (Dahawy, 2011). According to Morck and Steier (2005), when applied by companies, the accountability and transparency component of corporate governance would gain shareholders’ and investors’ trust.

 

Full text

 

The Tourism Crisis in Post January 25th Egypt

Mary Shoukry Hanna, The American University in Cairo, Egypt

 

ABSTRACT

This research focuses on the impact of the Arab Spring on the tourism sector in post-revolutionary Egypt, particularly after January 25th, 2011. Political upheaval has resulted in serious downfalls in the tourism industry and hard implications on the living conditions of tourism business owners and workers. This study assesses the consequences of certain government policies that added to the challenges that different tourism stakeholders have been facing post-revolution. It reveals the impact of the ensuing security lapse as well as the international reaction towards Egypt and their negative consequences on the tourism sector. At the end, it provides some recommendations based on the literature and tourism authorities to promote tourism in Egypt. As one of the main economic sectors in Egypt, tourism has been greatly affected by the Arab Spring, in general, and the January 25, 2011 revolution, in particular. The great drop in travel and tourism since 2011 has had a dramatic effect on visitor exports, GDP, and employment. Since the Egyptian revolution in January 25, 2011, the severity of these problems have intensified and others have emerged. This research will attempt to address the issues facing the tourism industry in Egypt and evaluate tourism policies as well as other government policies that directly or indirectly impact tourism.  Interviews were conducted with stakeholders in the tourism industry to identify the extent to which they have been affected, what problems they have been facing, as well as their responses to these political events while trying to run their business. The interviewees include representatives from hotels, travel agencies, Nile cruises, as well as one of the prominent Egyptian tourism organizations representing the tourism private sector. The tourism sector is one of the most important economic driving forces in Egypt. It stands for 40% of Egypt’s total non-commodity exports, 12.6% of Egypt’s entire labor force, 11.3% of Egypt’s GDP, and 19.3% of Egypt’s foreign currency revenues (State Information Service, 2013). According to the Travel and Tourism Competitiveness Index 2013, Egypt ranks the 85th overall out of 140 countries. Egypt has dropped 10 positions from being the 75th out of 139 countries in 2011 (WEF, 2013). Comparing Egypt’s position in 2011 to that in 2009, it also dropped 11 positions from being the 64th out of 133 countries (WEF, 2011). This means that Egypt has dropped 22 positions in three years, since the eruption of the revolution in 2011.  Egypt is ranked the lowest position out of 140 countries (the 140th) in terms of the safety and security environment (WEF, 2013). Tourists were deterred from traveling to Egypt due to the country’s political unrest with riots and demonstrations everywhere. On the other hand, Egypt is ranked the 76th out of 140 countries in regard to the policy rules and regulations (ibid). The government’s policies are less conducive to the development of the travel and tourism sector. Post the 25 January, 2011 revolution, Egypt’s economy has been greatly affected as a result of the drop in the tourism sector. Comparing the number of tourists in 2010 and 2011 indicates the significant decline in tourism post-revolution. It is noteworthy that the major decline is among the Americans with a drop of 49% and the least decline is among the Arabs with a drop of 14% (CAPMAS, 2012). Following the Americans, the number of other nationalities declines by 39.4%, while that of Europeans by 35.5% (ibid). The outcome is a great drop in the tourism flow resulting in the hard living conditions of tourism business owners and workers, who mainly rely on tourism in earning their living.  The tourism industry is one of the few economic dynamics that has a direct impact on economic development and job creation in Egypt.

 

Full text

 

Assessing Productivity Through Value Added Measurement: A Costa Rican Business Case Study in a Cooperative

Ronald Leandro Elizondo, Tecnologico de Costa Rica, Costa Rica

Elías Calderon Ortega, Tecnologico de Costa Rica, Costa Rica

Dr. Alejandro Masis Sanchez, Tecnologico de Costa Rica, Costa Rica

 

ABSTRACT

In 2010 the Inter-American Development Bank found that Latin America has diminished competitiveness due to stagnant productivity in companies. There is a gap between the companies in the region compared to others worldwide that has been increasing. This situation has affected their profitability and thus ability to achieve a sustainable comparative advantage. In order to become competitive, it´s important to measure the contribution of inputs in the transformation process into goods or services and the generation of wealth to the company; this is called “Value Added Productivity”. This concept allows a firm to diagnose which inputs are contributing most or least to welfare, which can lead to a better and more sustainable management. Value added is determined from financial statements of the firms. Value added productivity measures can be used to assess current or historical evolution of firm goals through a variety of indicators. Welfare can be improved by addressing physical, environmental or financial inputs. The contribution of this paper is to demonstrate through an example in Costa Rica how the process works and how it can help firms make better decisions. According to the Inter-American Development Bank (2010), in the last 15 years Latin America has been facing a declining trend in competitiveness due to stagnant productivity in companies. Within the global comparative scenario, the gap of the companies in the region with respect to others worldwide has been increasing. Productivity is, traditionally known as a relationship between the efficiency and effectiveness of transforming resources into goods or services, in other words creating more from less. But this myopic I definition is just the tip of the iceberg. Productivity can include much more; it encompasses the overall essence of economic growth. For instance, from a broader and integrated perspective, the core meaning of productivity “is to make people happy through constant progress” (Ishiwara, 1998). Value added could include output per unit of labor, the distribution of wealth between labor and management, and other factors that link production to “happiness”. Those firms that focus only on the narrow definition of productivity to expand output per unit of input will tend to disappear, sooner or later. Therefore, it seems to be necessary to apply broader measures in order to ensure the viability and sustainability of the Costa Rican firms, which is the subject of this study. Enhancing productivity is, in the end, the outcome of individual and organizational efforts that enables the generation of value from products or services. Thus, any company must measure productivity as a requirement for improvement. One way to establish where to improve is by determining the wealth created through the organization´s production processes or services, or what it´s been called value added productivity (VAP). According to Spring Singapore in 2011, resulting wealth is generated by the combined effort of those who work in the organization (employees) and those who provide the capital (employers and investors). VAP is thus distributed as wages to employees, depreciation for reinvestment in machinery and equipment, interests to lenders of money, dividends to investors and profits to the organization. In other words, value added is the difference between the sales obtained and the purchase from outside plus the inventory of work in process and finished goods.

 

Full text

 

Promoting Tourism After a Terrorist Incident: Review and Recommendations

Kaie-Chin Chung, Taoyuan Innovation Institute of Technology, Taoyuan, Taiwan, R.O.C.

 

ABSTRACT

The primary purpose of the present study is to aim at conducting a survey of literatures on terrorism and tourism in order to identify certain useful findings that can be regarded as references for tourism operators and destination marketers in the developing countries to manage and develop their tourism markets. Although tourism industry leaders have limited abilities in preventing political violence in advance, they can implement certain precautionary and useful mechanisms to minimize or avoid the occurrence of such events. If a violence takes place, tourism will inevitably be hindered. However, through the conveyance of the clear safety condition of the local destination, the establishment of a good local destination image, and the conduct of effective marketing to tourist groups, the recovery time from a crisis can be further reduced and lessened. In such, they are able to ensure the local people and economy to gain benefit from the tourism operations. Tourism is a major economic drive for local economies in every region of the world. However, it has become an increasingly important component of economic growth in developing nations. Tourism can represent a lucrative source of important income for a low-income nation, especially one with limited commodity resources and industrial base (Dredge, 2006; Devine and Devine, 2011). Thus, while tourism is a significantly part of many economies, it has the potential to deliver disproportionally large benefits to low-income economies. Over the past two decades, many factors have contributed to make tourism an increasingly attractive investment for developing nations where growing a tourism sector presents unique challenges for leaders in both the private and public sectors. The factors that lead to demand for tourism in a specific destination are complex and different from those in any other sector of the economy. Tourism is the only sector of a developing economy in which providers in developing nations regularly interact directly with the final consumer of the product. As a result, the tourism industry in a developing nation must ensure that their products are attractive to consumers in high-income and developed nations.  Growing a tourism sector presents unique challenges for leaders in both the private and public sectors. The factors that lead to demand for tourism in a specific destination are complex and different from those in any other sector of the economy. Tourism is the only sector of a developing economy in which providers in developing nations regularly interact directly with the final consumer of the product. As a result, the tourism industry in a developing nation must ensure that their products are attractive to consumers in high-income and developed nations. However, while tourist-oriented businesses can seek to ensure that the perceived quality an d value of their specific services are attractive to potential customers, the reputation and image of the destination as a whole is also an extremely significant factor determining the choices that tourists make (Lepp, et al., 2011; Wong and Yeh, 2009). Thus, destination marketing is vital to the development of a tourist industry in any particularly location (Boakye, 2012).

 

Full text

 

The Web-Based Corporate Social Responsibility Reporting: A Research on the CSR Reporting Levels of Companies Traded at the Borsa Istanbul (BIST)

Professor Raif Parlakkaya, Necmettin Erbakan University, Konya, Turkey

Dr. Huseyin Cetin, Necmettin Erbakan University, Konya, Turkey

Murat Kocyigit, Necmettin Erbakan University, Konya, Turkey

 

ABSTRACT

Corporate Social Responsibility (CSR), which gains importance recently and becomes widespread gradually, is based on the presupposition that companies have obligations against environment and community affected from their actions in addition to their economic responsibilities. Companies need to report the information related to their CSR activities. As the dimensions of economic, environmental, and social activities of companies in the CSR reports are indicated, the CSR reporting is performed by the annual activity reports or by such special reports as CSR Report or Sustainability Report (SR). The CSR reporting has big differences in contents and volume. While some companies put very extensive reports into practice, some of them form short reports that include only some significant points. Nevertheless, some companies do not perform any CSR reporting application. In this study, it is examined the CSR reporting levels of 33 of the first 100 companies in the list of “ISO 500”, which are traded at the Borsa Istanbul, and researched the relationship between various characteristics of companies and their volumes of CSR reports. By the statistical analysis, it concludes that the CSR applications and the CSR reporting levels of the companies under the research are not in a desired level.  By the conscious of social responsibility is developed, the understanding that accepts the unique responsibility of companies as “maximizing its profits” gives its place to the understanding that companies have social and environmental responsibilities in addition to their economic responsibilities. CSR directly affects the popularity and the reputation of companies/brands with its preferableness. The preferableness of companies increases because it declares that a part of its incomes is to reserve for the CSR applications, and so both community and company get the best of this application. The increasing interest of society on the CSR applications provides companies to derive important profits by this application, and the incentives brought in the CSR reporting concludes in the reporting of the CSR applications. The CSR reports are the reports that show environmental, social, and economic activities of companies. The CSR reporting is performed as a part of the annual activity reports or such special reports as CSR/Sustainability Report and the scope of reports differ from each other. By the increment in which the CSR’s conscious and applications have, the scope of the CSR applications and the CSR reports broadens. The goal of this study is to reveal whether there is any relationship between such various characteristics of companies as growth, endorsement, income, number of staff/personnel, or trading at BIST, and CSR or Sustainability Reporting with the scope of the reports. Under the study, some theorical information related to CSR and the CSR Reporting is provided firstly, and then the levels of the web-based CSR or Sustainability Reporting of companies are examined under the research.  

 

Full text

 

Examining The Impact of Income Tax Incentives to Corporate Performance in Asia-Pacific Food and Agriculture Industry

Hanggoro Pamungkas, Bina Nusantara University, Jakarta, Indonesia

Maya Safira Dewi, Bina Nusantara University, Jakarta, Indonesia

Martin Surya Mulyadi, Bina Nusantara University, Jakarta, Indonesia

 

ABSTRACT

Food and agriculture industry is one of the most essential industry in most country. Furthermore, in Asia-Pacific for Australia, Indonesia and New Zealand, it is one of its major industry. Development of food and agriculture industry must be supported by government through government policy. Government policy could be in form of investment policy or tax policy. This paper will specifically address the issue of income tax incentives to support the development of food and agriculture industry in Australia, Indonesia and New Zealand. This research used stock return to measure corporate performance, and EGARCH econometric model is used for the statistic test. Statistical test show that income tax incentives play an important role with different magnitude to corporate performance in Australia, Indonesia and New Zealand. Major conclusion could be made from this research that income tax incentives is a major determinant to corporate performance and investment decision of food and agriculture industry in Australia, Indonesia and New Zealand. Food and agriculture industry is one of the most essential industry in most country. Recent meetings of WTO Ministerial in Bali last December discussed issues in food and agriculture industry, and in that meetings they specifically dealt with food-stock holding and benchmark price. This deal underlined how important government and inter-governmental support for an industry, specifically food and agriculture industry. New policy is (are) issued by government to support the development of certain industry, which could be in form of investment policy and tax policy. As in food and agriculture industry, the example of incentives could be in form of: stabilization schemes, home consumption price schemes, fertilizer subsidies, income tax incentives, rural credit measures, involvement in and subsidies to agricultural research and extension, and public investment in land and water development and rural infrastructure (Sieper, 1982; Sandrey and Reynolds, 1990; Edwards, 2006; Anderson et al., 2008). This paper will address the support of tax policy to food and agriculture industry –specifically in income tax incentives–, as tax rate is a major consideration of a foreign direct investment decision along with the industry location (Newlon, 1987; Ondrich and Wasylenko, 1993; Swenson, 1994; Hines, 1996). Income tax incentives is a government effort to increase investment by changing tax structure with several methods; most of which is a tax rate reduction (Tung and Cho, 2001; Mintz and Smart, 2004; Mulyadi, Anwar and Siagian, 2012). Our previous research (Pamungkas et al., 2014) showed that there is a significant influence of income tax incentives to corporate performance in food and agriculture industry. In this paper three countries have been selected to represent Asia-Pacific: Australia, Indonesia and New Zealand. Those countries have a major food and agriculture industry; where food and agricultural products are among those of top 20 commodities exported. Considering the importance of this industry in the three countries, and how important income tax incentives to support industry development, this paper will discuss food and agriculture income tax incentives implementation in Australia, Indonesia and New Zealand. There are two effects of fiscal policy according to Hemming et al. (2002): demand-side effects and supply-side effects.

 

Full text

 

The Effect of the Financial Crisis on the Relation Between the Egyptian GDR’s and Their Underlying Stocks in Egypt

Dr. Ahmed Sakr, Arab Academy for Science and Technology, Alexandria, Egypt

Yahia El Halaby, Arab Academy for Science and Technology, Alexandria, Egypt

 

ABSTRACT

This research examines the relationship between the behavior of the prices of the Egyptian GDR's in London and their underlying stocks in Egypt, and whether the previous financial crisis of 2008 showed any difference in the price behavior of these securities. There were 10 stocks tested that represent 3 main sectors which are; the financial sector, the telecom sector and the constructions sector. We found that there is a strong direct relationship between the Egyptian GDR's and their underlying stocks in Egypt and that this relation was maximized during the crisis of 2008 and it appears most in the financial and telecom sector. The acceleration in the globalization of markets over the past years is not only represented by the free flow of goods and services, but also by the international liberalization of capital flow. This helped companies in emerging markets to obtain listings on American and European Exchanges through the issuance of American Depository Receipts, ADR's, and Global Depository Receipts, GDR's. These may include firms going public for the first time (Global Initial Public Offering), or firms that are already public deciding to list their equity in a foreign market (Nyvltova, 2006). On the other hand, the trend of the rising correlation among global markets affected the trust of investors in the international globalization negatively. Those investors appeared in the late 1980's and the early 1990's when the long period of international equity performance began. This period witnessed lower overall returns with little reduction in portfolio volatility (Srivastava, 2007). In addition to that, domestic investors are likely to have better information about firms in their own country than foreign investors, therefore, the two types of investors may price a security differently (Nuno, 2003). The purpose of this paper is to understand the behaviour of the Egyptian GDR's and their underlying stocks in Egypt. Moreover, the research will give us some highlights about the efficiency between the two markets and whether there are arbitrage opportunities between the two markets and hence the two markets are inefficient or the linkages between the two markets are really efficient.  The importance of this study appears widely for the investors that are the main users of the theory of arbitrage. In fact it will show investors the relationship between the two markets and whether the rising correlation between the world markets appeared between those specific markets and affected the performance of the securities that are listed in both market. As countries are moving towards a more global market, and as the barriers and constraints are removed, allowing access to the financial markets, international investors have greater access to individual securities providing better performance for the risk undertaken. As Thomas, 2003, observed that investors that would use the buy-and-hold strategy in dealing with international stocks will be able to recognize similar returns as those of fund managers.

 

Full text

 

Achieving Competitive Advantage through Clusters: A Conceptual Model

Nigar Cagla Mutlucan, Bogazici University, Istanbul, Turkey

 

ABSTRACT

Though the roots of the cluster concept can be traced back to Alfred Marshall’s 1890 classic, the Principles of Economics, it was Michael Porter who drew attention to its importance. There are some studies that try to explore the underlying relationships between clusters and firm performance, but few of them investigate the firm-level characteristics that lead to performance differences. The present paper proposes a theoretical model that examines the relationships between several constructs and firm performance, namely business ties, support ties, entrepreneurial orientation and strategic learning capability, while being moderated by the cluster construct. Michael Porter brought the concept of cluster under the limelight with his Diamond Framework (1990); clusters form one of the four elements of the Diamond, namely related and supporting industries. Nowadays, scholars from many different fields, such as economics, social sciences and strategy, and also business practitioners and policy makers study clusters. However, the review of the cluster literature shows that scholars from several schools of thought assume that all cluster firms are homogeneous; therefore, little attention was paid to firm-level characteristics that may help firms create and defend competitive advantages through clusters. There are some studies that investigate the effects of firm size and age on the relationship between clusters and firm performance, and also some studies that examine the firm resources that differentiate high-from low-performing cluster-firms (Kukalis, 2010; Wennberg & Lindqvist, 2010; Zhang & Li, 2008; McCann & Folta, 2011; Liao, 2010). Saric (2012) states that the cluster literature remains unclear about the mechanisms that produce benefits for individual firms within the clusters. His study is an attempt to bring the cluster discourse back to the firm.  The present paper tries to build and test a model to explore the firm characteristics that lead to performance differences among cluster firms. The theoretical model examines the relationships between several constructs and firm performance, namely business ties, support ties, entrepreneurial orientation and strategic learning capability, while being moderated by the cluster construct. To the knowledge of the author, the effects of strategic learning capability on firm performance are underexplored in the cluster context.  Alfred Marshall’s 1890 classic, the Principles of Economics, scrutinized the geographic concentration of specific industries in particular districts; his discussion of industrial districts was mainly built on external economies of localized specialization (Marshall, 1927). Specialized industrial districts were characterized by a triad of external economies: “the ready availability of skilled labor, the growth of supporting ancillary trades, and the development of a local inter-firm division of labour in different stages and branches of production, all underpinned and held together  by what he referred to as the ‘local industrial atmosphere’, by which he meant shared knowledge about ‘how to do things’, common business practices, tacit knowledge, and a supportive social and institutional environment” (Asheim, Cooke, & Martin, 2006, p.5-6).

 

Full text

 

New Approaches for Flow Shop Scheduling

Dr. Anis Gharbi, King Saud University, Saudi Arabia

Dr. Mohamed Labidi, King Saud University, Saudi Arabia

 

ABSTRACT

Only scant attention has been paid for the flow shop environment where the job sequence has not to be the same for all the machines. This paper presents the first attempt to device specific adjustment procedures for this strongly NP-hard problem.  Our experimental study shows that the proposed procedures provide promising results in terms of lower bound improvement.  In this paper, we focus on the following scheduling problem: A set of n jobs (1,...,n) has to be processed on a set of m machines M1,M2,...,Mm in that order. That is, each job has to be processed first on machine M1, then on machine M2, and so on until performing its last operation on machine Mm. Each operation Oij (i=1,...,m and j=1,...,n) requires an integer and deterministic processing time pj. The objective is to find a feasible schedule which minimizes the makespan. We also make the following common assumptions:  I. Each job can be processed at most on one machine at the same time.  II. Each machine can process only one job at a time. III. No preemption is allowed.  IV. All jobs are independent and are available for processing at time zero. V. The machines are continuously available.  In studying flowshop scheduling problems, it is usually assumed that the sequence in which each machine processes the jobs is identical on all machines. A sequence of this type is called a permutation sequence. Almost all of the research has been focused on the development of procedures to obtain permutation schedules. The main reason is probably that in the general case involving m machines and n jobs, the total number of feasible schedules tends to (n!)m; whereas with the assumption of no job passing, the number of feasible solutions is reduced to n!. However, identifying the best permutation schedule itself becomes very difficult, as the problem size grows bigger. Obviously, finding an optimal solution when sequence changes are permitted is more complex.  Several authors emphasized the worth of considering non-permutation schedules in real life flowshop environments (Swaminathan et al. 2005). In particular, Potts et al. (1991) exhibit a family of instances for which the value of the optimal permutation schedule is worse than that of the optimal non-permutation schedule by a factor of more than  This is a non negligible gap since it can reach 50% for a 4-machine flowshop instance. Also, Sviridenko (2004) proposed a new approximation algorithm which delivers a permutation schedule with makespan at most times of the optimal non-permutation schedule.  In this paper, we consider the non-permutation case where the job sequence is not necessarily identical on all the machines.

 

Full text

 

Service Quality of Dental Health Care: Top of Patients’ Priorities from Perspective of Turkish Culture

Dr. Tulin Ural, Mustafa Kemal University-Tayfur Sokmen Campus, Hatay, Turkey

 

ABSTRACT

This study aims to expose more important service quality factors of dental healthcare services from perspective of Turkish culture, and assess relationship between service quality factors and patient satisfaction. Furthermore, the study reports the development process of a short scale for measurement service quality in routine clinical practice. The study was conducted at Research and Practice Hospital of Mustafa Kemal University located in Hatay, Turkey. Over a 10-day period, data collection took place in the area where patients waited for dental treatment. A total of 206 patients were personally asked to participate in the survey. A self-administrated questionnaire was used in this process. The results show that service quality structure has four factors encompassing 11 elements, namely, “physical environment of hospital”, “staff characteristics”, “interaction between hospital staff and patient”, and “administration process”. All four factors influence significantly to patient satisfaction. The quality of interaction between patient and hospital staff has stronger effect on satisfaction relative to other factors.  Dental healthcare services are crucial because a large part of public have suffered from many dental illnesses in Turkey. Health Education and Healthy Manpower Situation Report prepared by Health Ministry (2010) has declared that dental health of 85% of public is disordered, dental illnesses are common, and losses of country’s economy have received higher level. The widest research conducted in 1988 demonstrated that dental problems begin even in the early years of childhood in Turkey (http://www.ailehekimligi.gov.tr-may.12.2014).  The efforts about therapeutic requirements of public, improvement of dental healthcare services and the balanced distribution of these services widespread of all country are continuing now. Although Health Ministry of Republic of Turkey has started to improve service quality of dental healthcare and declared the quality standards since 2009 (http://www.kalite.saglık.gov.tr-june.10.2014), dental healthcare providers in public sector have not achieved higher service quality yet. Turkey has dental healthcare providers in both public sector and private sector. Because of lower degree of competition in public sector relative to private sector, managers are likely to ignore the service quality. This situation may cause patient dissatisfaction and complaints. Moreover, poor quality of services in the public sector led to greater use of private providers. In this context, service quality is becoming substantial issue for managers of public hospitals. Responding to patients’ complaints requires healthcare services to be patient-oriented and comply with standards and protocols (Chang and Chang 2013). In order to be patient-oriented, identifying important factors determining patient satisfaction is crucial. Service quality level is one of important factors which determine patient satisfaction (Donabedian 1996; Woodside and Shinn 1988; Choi et.al. 2004). Many studies emphasize on the importance of customer satisfaction in the business context, but “quality of care” remains ambiguous. Donabedian (1996) stated that healthcare significantly differs from general business services, and patient assessments of healthcare quality are more complex than those for other services. Literature including model and theories of healthcare consumer behavior were mostly conducted in USA. “The stability and applicability of past findings across different national/cultural settings remain largely untested” (Choi et.al. 2004, p.913). On the other hand, available instruments in the literature which measure service quality may be too long to be used in busy clinical or research settings (Hawthorne et.al. 2013). 

 

Full text

 

The Role of Responsible Awareness of Tourists

Petra Zabukovec Baruca, University of Primorska, Slovenia

 

ABSTRACT

The present paper is based on the concept of responsibility in tourism from the point of view of responsible consumer behaviour; the aim is to consider the question of the suitability of responsible consumer behaviour that is currently gaining importance in the context of sustainable tourism development. Modern forms of responsibility in tourism (e.g., sustainable tourism, ethical tourism, eco-tourism, green tourism) have emerged as a response to tourism stakeholders in global economic, social and environmental issues during the past ten years. Such forms of tourism coming to the fore are attempts to take responsibility for the impacts that tourism has on the social, economic and natural environment (Goodwin & Pender, 2005). Changes are intrinsic to human civilisation and in the modern world changes are occurring more rapidly than ever before. The need for a response in tourism’s consumers is apparent as well, and they appear to be growing more and more aware of their responsibility for social and cultural problems and have a responsible attitude (Mihalič, 1996; Urry, 2001; Shaw & Clarke, 1999; Harrison et al., 2005). Understanding tourists’ needs and having a clear picture regarding the tourist will be a prerequisite for tourism providers in the future in order for those in the industry and the surrounding societies to survive and prosper (Yavas and Babakus, 2005). In this vein, the paper investigates the role of responsible awareness of tourists and their attitude to the environment and society of destinations. Thus, an empirical study was conducted among 71 hotel guests in one of the most popular touristic areas on the Adriatic Sea in Slovenia. The results of the study show a positive relationship between guests' levels of moral responsibility and their actual responsible behaviour when staying in a hotel. More specifically, the more tourists consider themselves to be morally obligated to behave responsibly, the more often they actually behave in accordance with responsible practice.  Tourism is a primary economic industry, dependent on natural, cultural and other aspects of the environment. Its development has both positive and negative effects on the environment and society. Mihalič (2006) highlights the paradox of tourism development that shows its economic dependency on the quality of the environment on one hand and its destructive environmental effects on the other. Several documents have been created that promote sustainable development and responsibility in tourism on a global level. One of these is Agenda 21 and the Global Ethics Codex (WTO, 2005). Other supporters of these principles and rights are numerous governmental and non-governmental tourist organizations and institutions, such as the UN, Greenpeace, UNWTO, and the International Centre for Responsible Tourism. Such common programs and policies are an effective tool for the reduction in the negative effects of tourism and the increase of positive effects on the economy, society and the environment (UNEP, 2009).  

 

Full text

 

An Exploratory Study of Implementing PLM System Based on Adaptive Structuration Theory

Dr. Wen-Hsiung Wu, Kaohsiung Medical University, Taiwan, R.O.C.

Lung-Ching Fang, National Kaohsiung University of Applied Sciences, Taiwan, R.O.C.

 

ABSTRACT

Based on adaptive structuration theory (AST), this study is to propose a technology adaptation model and conducts a case study in which a kind of advanced information technology (AIT), namely product lifecycle management (PLM) system, is implemented in a motorcycle company for new product development (NPD). Given the complications associated with PLM, process theory is applied to predict the impact of PLM on the aspects document access, as well as information and knowledge sharing. These three aspects of appropriations have caused corresponding types of discrepancy events based on interactions among PLM technology, organizational environment, and team structure. This study also illustrates the adaptive methods and emergent structures resulting and performance outcomes from these discrepancy events. Finally, the implications of this study are discussed. Adaptation when implementing information technology (IT) to enterprises has lately become a crucial research issue (Majchrzak et al., 2000; Allport and Kerler, 2003; Poole and DeSanctis, 2003), as the appropriateness of adaptation directly influences its performance (e.g. reduced productions costs). Based on the structuration school, DeSanctis and Poole (1994) proposed adaptive structuration theory (AST) and its application to advanced information technology (AIT). AIT, such as collaborative system or group decision support system (GDSS), enables multiparty participation in organizational activities through complex information management. The AST describes that the dimensions of organization environment, AIT, and team structure affect social interaction process (i.e. appropriation process); moreover, the impact of interaction process on the outcomes of decision making performance and emergent structure through the appropriation process of AIT. In sum, the nature of AST stresses the importance of group interaction processes in determining group outcomes (Poole and DeSanctis, 1990). Regarding the usage of AST, the results of past studies only reflect the strategic or static part of AST nature (i.e., Chin et al., 1997; Hossain et al., 2011; Whittington, 2010). For further understanding the dynamic appropriation process, we require a longitudinal and in-depth research (Jarzabkowski, 2008). Also, Majchrzak et al. (2000) employed the method of discrepancy event to illustrate the dynamics of interaction process. Their work has contributed significantly to the theoretical foundation of AST. However, based on the perspective of dynamic process in AST, we believe that managerial influence should have an important role in structural change (e.g., reorganize of organizational units or system integration) and subsequently have contributed to the performance outcomes. Moreover, the scope of R&D activities in previous work is often addressed within a small project team with a simple IT enable collaborative tool for communication. Thus, the role of management and the complexity of new product development (NPD) remain unexplored, where interaction among participants in different departments can negatively influence implementation success (Cooper, 1994).  For elaborating on the input-process-output (IPO) nature of AST, this study tries to introduce a new kind of AIT, Product Lifecycle Management (PLM), in the NPD context. For manufacturing firms, it is critical to collaborate in NPD in order to develop their capacity, capability, and competence (Danilovic and Winroth, 2005; Hage et al., 2008; Johansen et al., 2005; Leenders et al., 2003; Shiau and Le, 2007).

 

Full text

 

An Examination of How the Government Handles Crisis Scenarios in Saudi Arabia: The Need for Saudi Arabia to Reduce Its Oil Dependence

Shrouk Saleem Alburj, Park University, Kansas City, MO

 

ABSTRACT

Since 1930, managers and company owners have been interested in in-depth knowledge and understanding of how organizations work. In the beginning, it was thought that the most important was the work itself: the lines of work, production, quantities, resources, etc. But over time, scholars and experts began to realize that without human capital, organizations do not have any sense. That is why throughout these years, theorists have developed many models about how to evaluate organizations thorough different perspectives/lenses/ approaches. Organizations are complex organisms that have not only material resources, but also human resources. Saudi Arabian government is an example of absolute monarchy. This is not the way of Islamic way of governance but being claimed as Islamic absolute monarchy. There is no role of family kingdom, or any single assent to the highest position. Islam has the role of caliph who is one among the commoner and is believed to have complete knowledge of the Islamic sharia i.e. Islamic law. The ruling of the caliph is taken as standard for all Islamic countries while the present governance of Saudi Arabia has its effect only on Saudi nationals and the absolute power is held by the King who is head of the State as well head of the Government. His words are final though before making any decision the King consults the other princes and Clergies (Ulema). But, ultimately the decision of the King matters and it is final.  The major post of the government is held by the Royal Family and this has led to dissent among the population recently in 2011 which was curbed by force. This has brought some changes in major policies and functioning of the Saudi kingdom. Quran and Sunnah (preaching of Prophet Mohammed Saw) are the guiding forces and forms the basic laws of Saudi governance. Presently the ruler is King Abdullah. He succeeded King Fahad who was considered as builder of Modern Saudi Society. He has introduced industrialization apart from the petroleum wealth and thus has given a new direction to Saudi Arabia.  The present ruler has introduced some reforms to protect the disintegrating Kingdom there by extending the benefits to the common citizen. The effect of revolution in adjacent countries like Egypt, Tunisia, and Syria etc. has given way to liberalization in the attitude of Saudi Kingdom. Decisions are made by establishing a consensus within the Royal Family (comprising the numerous descendants of the Kingdom’s founder Abdul Aziz). In addition, the views of important members of Saudi society, including the Ulema (religious scholars), leading tribal Sheikhs, and heads of prominent commercial families are considered. The King Abdullah is considered as a reformer as he has introduced industrialization (limited deregulation, encouragement of foreign investment, and privatization) and made modernizing changes to the judiciary and government ministries. Prince Saud Al-Faisal is one of the strongest supporters of political and social reforms along with King Abdullah. He has spoken in favor of women having the right to vote, to follow the career path they wish and to be able to drive a car. Women will be able to vote in municipal elections beginning in the year 2012.  

 

Full text

 

Momentum Profits in the UK Stock Market

Dr. David Morelli, Kent Business School, University of Kent, Kent, UK

 

ABSTRACT

This paper investigates the existence of momentum profits in the UK stock market by examining a number of different trading strategies across short, intermediate and long term time horizons.   The paper attempts to explain such momentum profits by examining the role of book-to-market equity, size and analyst coverage.  The findings from this paper show significant momentum profits in UK securities.  An explanation for such momentum profits can be given by book-to-market equity and analyst coverage with both being found to be significant determinants of momentum profits.  Momentum profits are found be negatively related to book-to-market equity and analyst coverage, whereas no clear relationship is shown with respect to size.  Over the years there has been much interest with respect to developing investment strategies based upon the predictability of future security prices.  Momentum trading strategy is one such strategy based upon examination of past security prices.  Momentum trading strategy is based upon the assumption that securities that have performed well in the past will continue to perform well in the future.  Thus the strategy would be to buy securities that have historically performed well and sell those that have underperformed.   Momentum trading strategies are based on positive serial correlation.  There have been many studies examining past price behaviour in an attempt to try to predict future security returns. Jegadeesh and Titman (1993) and Connad and Kaul (1998)  on examining the US stock markets found evidence of momentum profits over an intermediate term horizon.  Further studies by Rouwenhorst (1998) and Doukas and McKnight (2005) examining a number of European stock markets both found evidence supporting the existence of momentum profits.  Studies on the UK stock markets by Clare and Thomas (1995) and Liu et al. (1999) produced some evidence of momentum profits at the intermediate and short term horizon.  Accepting the existence of momentum profits, the important question that arises is what causes such effects.  In a study by Fama and French (1996) based on the US stock market, variables size and book-to-market were found to be correlated with momentum profits. The argument that Fama and French (1996) put forward was that those companies with a higher book-to-market equity ratio would expect to produce higher momentum returns. The rational being that such companies are seen as value companies, containing a value premium, which over time should produce higher earnings compared to past lower earnings. An opposing argument to Fama and French (1996) was put forward by Lakonishok et al. (1994), in which they argue that those companies with a low book to market equity ratio, not a higher one, should produce higher momentum profits.  Lakonishok et al. (1994) claim that corporate distress factor is captured by book-to-market equity and that a value premium arise because of the fact that the stock market undervalues distressed companies. Given this, higher returns would be expected in the future.  A study by Banz (1981) brought to the attention the importance of size in explaining average returns. 

 

Full text

 

Copyright: All rights reserved. No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, including photocopying and recording, or by any information storage and retrieval system, without the written permission of JAABC journals.  You are hereby notified that any disclosure, copying, distribution or use of any information (text; pictures; tables. etc..) from this web site or any other linked web pages is strictly prohibited. Request permission / Purchase this article:  jaabc1@aol.com

 

Contact us   *   Copyright Issues   *   Publication Policy   *   About us