ISSN: 1813-0534






Volume 11 No 3 December edition 2015

1.                              Chinese Economy And Central Asia

                            Celal Bayari,The University of Sydney,Australia


Chinese economic growth has accompanied the rise and development of the Chinese economic model with its own types of multinational enterprises, and state owned enterprises.  Major stock market plunges in 2015 have taken away the focus from the model and the manufacturing base that upholds it.  Analyses of the system of the Chinese state, its enterprises and the private sector need to continue to understand the future of this economy and its implications for the rest of the world.  Central Asian energy markets, which China has entered a decade ago, are important in this context, as their future behaviour will have consequences for the EU, North American and Australian markets.  The Chinese state is the owner of the largest banks and sovereign wealth funds in the world. When China lost its energy independence in 1993, it began to rely on Central Asian energy markets and increasingly placed more emphasis on the region as a hub for its economic expansion, and as a strategic location and export market. The region, neighboring Xinjiang Uyghur Autonomous Region, is one of the foci of organizations such as the Shanghai Cooperation Organisation (SCO), and projects such as the Silk Road Economic Belt (SREB). Chinese trade and foreign direct investment (FDI) in the region involve plans to build economic and other links from Xinjiang Uyghur Autonomous Region across Central Asia. This paper argues that Central Asia faces some challenges due to its landlocked status, and industrial structure and markets, despite its energy and mineral resources, some of which is yet to be developed.


Keywords: China, Central Asia, natural gas, crude oil, trade and FDI



2. Financial Characteristics of Top Green Companies in USA:

An Empirical Investigation


Dr. William J. Jones ,Dr. Srinivasan Ragothaman

University of South Dakota, Vermillion, SD





Newsweek magazine published in early 2014, an environmental performance ranking of the largest 500 publicly-traded companies in the USA.  It is one of the foremost corporate green rankings and is based on eight key environmental performance indicators. We examine using COMPUSTAT data whether the Top 100 Green companies (TG) differ from a control group of firms [Bottom 100 companies (BG) in the Newsweek List], in underlying aspects such as beta, firm size, liquidity, profitability, growth prospects, etc. by studying key financial ratios. We develop a logistic regression model to examine the relative explanatory power of selected independent variables. The statistical results indicate that liquidity, Tobin’s q, risk, and size measures are significantly different between the two groups. When compared to control (BG) firms, TG firms are larger, tend to be less risky as measured by beta, have higher current ratios, and lower Tobin’s q ratios.  Profitability as measured by cash flow ratios, the governance measure and capital intensity were not significantly different between the two groups.



3. Taking Advantage of Time Zone Differences between Global Stock Markets to Deliver Improved Return

Fatollah Salimian, Kashi Khazehr

Franklin P. Perdue School of Business,

Salisbury University,USA

Robert C. Winder, Professor

Department of Economics

Christopher Newport University,USA


The increasing integration of the world’s capital markets, the proliferation of stock market indexes and funds in developed and developing economies around the world, and vast technological advances have created new opportunities for individual and institutional investors.  In the context of this new financial environment, this study demonstrates how investors can achieve improved returns by taking advantage of asset price correlations in equity markets trading in different time zones.  Using daily data for the period 2000-2014, this study finds that moving funds from a domestic (U.S.) growth fund to a global equities fund on days when the growth fund achieves a pre-determined percentage gain, and then back again the next day, results in improved investment performance.  This is true not only for the full 15-year period, it holds also for all sub-periods.  These findings, and the broader application of this strategy, should provide insight and direction for investors seeking to optimize returns in this new financial environment.

4.  Risk-Sharing in Conventional And Islamic Finance: Convergent and Divergent Views

Md. Shameem Jawed*, Research Scholar (Finance & Accounting), Indian Institute of Management Indore, India.

Santosh Kumar Tiwari, Research Scholar (Strategic Management), Indian Institute of Management Indore, India.

Amol Dhaigude, Research Scholar (OM&QT), Indian Institute of Management Indore, India.

Archit Tapar, Research Scholar (Marketing Management), Indian Institute of Management Indore, India.



This paper attempts to identify and discuss the origins of the risk sharing concept in Islamic finance and the conventional finance. Drawing from the literature on historical developments of the modern Islamic and conventional financial system, the paper attempts to explore the convergence/divergence views of the two schools of thought. The paper identifies that on the risk-sharing concept there exist a convergence between the ideal-conventional and Islamic financial schools of thought. However, conventional (practiced) financial thought diverges with Islamic finance on risk sharing.

 Keywords – Islamic finance, conventional finance, risk-sharing, Shariah, convergent/divergent school of thought, literature review


5.  Implementation of Basel Norms: An Analytical Study of Indian Scheduled Commercial Banks


Dr. Shalu Bansal, Assistant Professor, LM Thapar School of Management, Thapar University, Patiala, India


         In the present study, implementation of Basel Norms, position of Capital Adequacy Norms in India is assessed. The study has focused to achieve the two objectives i.e. to analyse the Basel Norms transformation into domestic regulation of Indian banks according to agreed international timelines and to identify the gap between regulation of banks and Basel Norms in India. For this purpose, total study period has been divided into three phases: first phase includes the time period from 1995-1996 to 2003-2004, second phase includes the time period from 2004-2005 to 2012 -2013 and third phase include the time period of 2013-14. For the present study, data is collected from the various secondary sources. The most important finding is the position of CRAR in Indian Scheduled Commercial Banks during second phase was better than the first phase. During third phase all Scheduled Commercial Banks are meeting minimum capital adequacy requirement as per Basel III norms and also majority of Scheduled Commercial Banks are meeting 10.5 percent limit of CAR. It has been observed that with respect to capital standards, the Basel Norms, India’s banking industry (Scheduled Commercial Banks) is performing reasonably well, with an average CRAR of about 12 percent, which is not only higher than the internationally acceptable level of 8 percent, but also higher than India’s own regulatory requirements of 9 percent.

6.   Determinants of Capital Structure – An Indian Case Study Using Artificial Neural Network


Palanisamy Saravanan, Suhas M Avabruth

Indian Institute of Management, Shillong





The capital structure is one of the highly researched topics in the field of corporate finance but the amount of empirical study done on Indian markets is sparse. Amongst the available studies,  majority of the studies have been conducted on the assumption of the linear relationship between debt equity choice and variables of interest. In tour current work, we have used Artificial Neural Networks (ANN) as the tool for estimating the relationship which is a model free estimate and lead to better estimation of the relationship. Our investigation shows that long term debt scaled by the total assets as the best measure to determine the capital structure of the Indian firms and the factors affecting the capital structure of the firms in India are not much different from the developed markets as most of the borrowings were transacted through banks and financial institutions the factors such as size, profitability, collateral value etc. have been found to be of the utmost important variables in determining the capital structure of the firms.

7.       Could Knowledge Management Drive Sustainability?


Fawzy Soliman

UTS Business School

University of Technology, Sydney, Australia


 In manufacturing plants, it is expected that production processes usually yield some reject materials or parts. Accordingly, reduction in material waste could ultimately reduce manufacturing cost. The non-conforming materials or parts are usually found in Supply Chains during: a) inspection of received goods from suppliers; b) production processing; and c) delivery of goods to Customers.

In general the reject materials or parts could be grouped under three categories: a) materials ought to be sent back to its source; b) less useful materials distant for being scrapped; and c) materials that could reused after performing some rework. Some of the completed products containing some minor faulty parts could be dispatched to Factory Seconds Outlets for sale at reduced price. This paper presents a method for incorporating sustainability in production decisions.

 Keywords: sustainability, manufacturing, inspection, knowledge based systems.

8. Appraising E-Commerce Systems Performance in The Engineering And Information Technology Industry 

 Mais Al-Qudah, Middle East University, Amman, Jordan

Anas Al Bakri (Correspondent Author),Qatar University, Doha, Qatar


This research aimed to understand the factors influencing e-commerce systems performance in Jordan. Using previous literature, we developed a theoretical model of performance with four contributing factors: perceived benefits, IT infrastructure, trading partners and perceived risk. The model was tested using data from a survey of managerial perceptions of e-commerce in the Engineering, Electrical Industries and Information Technology sector in Jordan. Data were obtained from a total of 54 enterprises. The results showed that the perceived performance of e-commerce systems was affected by all four factors to a greater or lesser extent. The results of this research will help managers to understand where to focus their efforts to obtain the greatest benefit from e-commerce systems.

 Keywords: e-Commerce systems, Performance, Infrastructure, Perceived Risk, Benefits


9.  Impact of Organizational Change on The Implementation of ISO14000 EMS towards Corporate   Sustainability


                  Sreenivasan Jayashree, ChinnasamyAgamudainambi Malarvizhi, Rathimala Kannan,

                                                           Multimedia University, Malaysia.


This study aims to explore the effect of organizational change on the implementation of ISO 14000 EMS leading corporate sustainability and to investigate whether there is a relationship between organizational change, ISO 14000EMS implementation and corporate sustainability. The findings of this study aims to help Malaysian Manufacturing organizations by establishing the impact of organizational change on implementation towards corporate sustainability.

Keywords:Organizational Change, ISO 14000 EMS Implementation, Corporate Sustainability.



10.   Vertical Price Transmission And Spillovers between Agri-Food Chains

                                                  L. Emilio Morales, Nam Hoang, Garry Griffith

                                  UNE Business School, University of New England, Armidale, Australia

                                                            Salomon Salcedo

                                       Food and Agriculture Organization of the United Nations (FAO), Rome, Italy


Price transmission has been used as an indicator of market integration to assess competitiveness of agri-food chains and margins captured in rural areas. However, spillovers between farmer prices have been neglected as a way to improve price transmission and revenue distribution in related agricultural products. This manuscript compares vertical price transmission, effects of marketing input prices and spillover effects between three agri-food chains in three countries, using asymmetric error correction models. Results identified spillover effects between farmer prices, differences between countries in the speed of price transmission and effects of marketing input prices on prices paid to farmers. Accordingly, agricultural policies should consider these spillovers between farmer prices when designing interventions to raise incomes in rural areas.

Keywords: Agri-food chains, Policy interventions, Vertical price transmission, Price spillovers, Asymmetric error correction model.


11.  Is Underpricing A Signal of Firm Quality? An Empirical Investigation on Indian Companies

                                         Manas Mayur, Goa Institute of Management, India


This work re-examines the original studies of Rock (1986), Jegadeesh et. al (1993)  and Jain and Kini (1994), aim to identify what has been demonstrated in these studies and to empirically examine in the Indian context, whether underpricing is a signalling mechanism or not? While theoretically Rock (1986) proposed strong reasons to prove that underpricing is a mechanism to deal with information asymmetry, but empirical studies in the past did not provide any strong relationship between underpricing and firm value.  The empirical results of past works left a puzzling question unanswered of why then IPOs are consistently underpriced. Though the present study do find evidence consistent with the signalling hypothesis, but when the evidence documented is viewed in totality, the support for the signalling hypothesis as a major determinant of IPO underpricing is weak.

12.  Towards An Intermediate State Theory of Dynamic Capabilities for Improving The Performance of, And Moderating                Contemporary         Challenges      to, Australian Retailers

                                                        Alan Simon, Adrianne Renoux and Gary Stockport

                                                               The University of Western Australia, Perth,



Purpose – The main purpose of our study was to attempt to advance the theory of dynamic capabilities from a nascent to intermediate stage by using mixed-methods research to confirm practical operationalised dynamic capabilities that can be used by retailers to help improve performance and mitigate exogenous challenges. Mixed-methods surveys are rarely used in dynamic capabilities studies. The first aim of our paper was to determine the dynamic capabilities that are perceived to be important for successful performance and mitigation of exogenous challenges by Australian retailers. The second aim was to test hypothesized relationships between specific dynamic capabilities and success factors relevant to the Australian retail industry and also between those dynamic capabilities and the extent to which they moderate current challenges to the sector.

Design/methodology/approach – A mixed-methods research design comprising of qualitative and quantitative techniques was used to collect the data. In the first phase of the study, fifteen managers of Australian retail stores were interviewed. In the second phase, a questionnaire survey was administered to senior managers, from whom sixty seven useable returns were obtained and analysed.

Findings - Six hypothesised relationships between practical dynamic capabilities and success

factors and challenge mitigation were tested. The results show that a flexible organisational culture that encourages learning was related to successful performance. Development of technology and a flexible organisational culture were both related to the mitigation of contemporary challenges to the Australian retail sector. Facilitating new product development was not related to successful performance and the amelioration of challenges.

Practical Implications - These results suggest that retailers need to implement a flexible learning organisational culture and implement updated technology in order to achieve success and help reduce the impact of exogenous challenges.

Originality/value - This paper is significant because it adds to the limited body of empirical research on dynamic capabilities, which has left the theory languishing in a nascent state.  A rare mixed-methods study of operationalised dynamic capabilities has established how they relate to the successful organisational performance of the Australian retail sector and how they can moderate the impact of challenges to it. This goes part of the way towards advancing the theory of dynamic capabilities to an intermediate stage.  It is believed that once the critical practical dynamic capabilities have been determined, retailers will have the potential to develop an improved understanding of the practical management strategies that can be implemented to improve the long-term success of their organisations in times of increased environmental turbulence.


Key words: Intermediate State of Dynamic Capabilities, Retailers, Practical Dynamic Capabilities, Success Factors, Current Challenges

 13.                                        Impact of IS Service Quality on Business Performance in A
                                                                  Service-Oriented Economy

Dinesh A. Mirchandani, College of Business Administration, University of Missouri - St. Louis,USA
Yunus A. Kathawala, College of Business Administration, Gulf University for Science and
John P. Hayes, College of Business Administration, Gulf University for Science and
Julius H. Johnson, Jr., College of Business Administration, University of Missouri - St. Louis,USA
Sudhir Chawla, College of Business Administration, Gulf University for Science and
This research proposes that concomitant improvement of Information Systems (IS) service
quality may help an organization realize increased utilization of its systems, engage employees in its
mission, and make them more customer-oriented, thereby improving business performance. This
research found that higher levels of IS service quality led to greater employee satisfaction with the IS
staff, which in turn increased their intention to use IS services. The results of this paper suggest that
when IS staff are properly prepared, the organization performs well even in a highly competitive
service-oriented economy. Several implications for research and practice are discussed based on these

13.      14.                                         Heterogeneous Bank Offerings against Homogeneous Customer Reflection

                                                           Arasu Raman, INTI International University, Malaysia


While having the term “Islamic” banking, Malaysian banks operates their businesses using the rules and principles of Sharia’h. Due to the increase in housing development projects in Malaysia as a whole, the application of housing loan increases as well. As both conventional banks and Islamic banks offer housing loan products, some researchers pointed out those customers in Malaysia are satisfied with the housing loan provided by the Islamic banks while a few researchers commented that customers in Malaysia are not happy with the Islamic housing financing provided by the local banks. Therefore, this study aimed at discovering the influences of customer delight on Islamic housing loan in Malaysia. In this quantitative study, 250 questionnaires distributed to the respondents in the bank space. Out of which 220 valid feedbacks were collected hence factor analysis with reliability tests were conducted before using multiple regression for data analysis. The results pointed out that the service quality, product quality, and trusts are all delighting customers of Islamic housing loan in Malaysia in general context. The study validates the fact that customer satisfaction in general is homogeneous regardless to Islamic or conventional mode of offerings by the banks. Therefore, Malaysian banks when it comes to property financing should blend their marketing offering and keep the “Islamic” term of financing as a brand or mode as optional rather the only means.

Key words: customer delight, Islamic offerings, bank product quality, bank service quality


15. Green Intraprenurial Flexibility towards Sustaining Competitive Advantage:A Case of South Asian Context


                                G.D. Samarasinghe,Department of Management of Technology,University of Moratuwa, Katubedda, Sri Lanka

                           A. Wickramasinghe,Sydney Business School and School of Management, Operations and Marketing, Faculty of Business

                                                       University of Wollongong, Australia

                            Helan R. Gamage,James Cook University Australia, Singapore Campus

                  Nalin Abeysekera,Department of Management Studies,The Open University of Sri Lanka,Sri Lanka



This study explores how green based intrapreneurial flexibility affects sustainable business performance of the Sri Lankan hotel industry. A survey was administered to a random sample of senior managers of hotels in Sri Lanka. Linear regression analysis revealed a significant path coefficient which explained green based intrapreneurial flexibility positively influenced sustainable competitive advantage. The findings suggest that hotel industry policy makers develop green specific intrapreneurial capabilities so that they can quickly adapt their green based product and service offerings in responding to changes of the green market requirements by focusing on green based new venture creation, green innovation, green related self-renewal exercises, and eco-friendly proactive decision making in order to sustain their competitive advantage from green initiatives.

Keywords: Green based Intrapreneurship, Dynamic Capabilities, Strategic Flexibility, Sustainable Competitive Advantage


16.                               Economics of E-Learning: Indicators of Comparative Cost Analysis in Higher Education

                                                  Sayan Chakrabarty, Mohammad Mafizur Rahman, Rasheda Khanam

                                                        University of Southern Queensland



Estimating cost function for technology based e-learning and face to face traditional learning is important to understand the economics of higher education. Universities are raising their tuition fees, especially for face to face learning to meet increasing cost of higher education. This study attempts to identify and compare the cost components of technology embodied higher education (e-learning) and face to face traditional system of higher education. Cost components are divided in terms of universities’ cost of education, students’ cost of education and social cost of education. This paper is a background work to initiate an empirical study of comparing cost of higher education. Hence it would clarify and explore the essential elements of cost associated with higher education.


17.                        Using Ajzen’s TPB Model to Explain The Ethical Intentions of Chinese Accounting Professionals                

                                        Yan Yan Tan (PhD) Zhongnan University of Economics and Law, China

                              Ying Han Fan (PhD), Gordon Woodbine (PhD), Ru Chuan Jiang ,Curtin University, Australia


This paper reports the findings of a cross-sectional study of the moral belief systems of 368 Chinese accounting professionals (i.e. 186 auditors and 182 salaried accountants). It is a first study of the ethical intentions of local Chinese auditors and salaried accountants based on Ajzen’s (1985) Theory of Planned Behaviour.  A self-rated questionnaire is used to examine the antecedents to behavioural intention using a familiar scenario based vignette. A multi-group confirmatory factor analysis (MGCFA) was employed to validate each construct of TPB before a path analysis was performed. Salaried accountants were found to be significantly less conservative than auditors in their intention, when stating their agreement with the decision when faced with a moral dilemma about whether to reject a supervisor’s directions to manipulate financial reports. The results of this study have also demonstrated that the TPB can be applied when studying the ethical behaviour of Chinese accounting professionals, and the findings support that Chinese accounting professionals’ attitude toward the ethical behaviour, their perceptions of subjective norms, and perceived behavioural control over of the behaviour are positively associated with their ethical behavioural intentions. However, Chinese auditor group reveals a 51% of variance in the ethical intention which is significantly higher than the salaried accountant group (i.e. 38%).

Keywords: Theory of Planned Behaviour, ethical intention, Chinese auditors and salaried accountants

18.  Analyzing Healthcare Management Data to Improve Glycemic Control for Management of   Patients with Diabetes

                                 Jing-De Weng ,Chun-Liang Lai(Corresponding author), Yang-En University, China


Since last decade, we have been confronted with the rapid growth of diabetic patients who have become one of the most important burdens of public health. The complications of diabetes can be slow or even prevented by glycemic control in advance. The purpose of this study is to investigate the ranking of features of glycemic control and compare the performance of four feature ranking methods with different classifiers. Four feature ranking methods including information gain, gain ratio, symmetric uncertainty, and ReliefF were used to rank the features of glycemic control. In order to compare the effectiveness of attribute selection, subsets of attribute were tested with three classifiers: C4.5, K nearest neighbor (KNN), and naïve Bayes. We presented a comparison of four feature ranking methods that produce ranked lists of features. The results show that feature selection is beneficial to improving the performance of common learning algorithms.


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ISSN: 1813-0534