ISSN: 1813-0534






Volume 12 No 3 December edition 2016

ABSTRACT OF DECEMBER EDITION 2016 Volume 12*Number 3* DECEMBER 2016 ISSN 1813-0534 1. Awakening Giants: Country Comparison of Five Emerging Economies Ananda Wickramasinghe Sydney Business School and School of Management, Operations and Marketing University of Wollongong, Australia Helan Ramya Gamage School of Business James Cook University Singapore Campus, Slim Drive, Singapore Aaron Boyd Redlands, Sydney, NSW Australia ABSTRACT This study explores competitiveness of five emerging countries: Brazil, Ghana, Pakistan, Slovakia and Vietnam in particular key risk factors, opportunities and challenges for international business. In this study we examined non-conventional factors and indicators by focussing on institutional voids of these emerging markets as oppose to readily available traditional matrices such as per capita, growth rate, and other generic indicators. Hence, this study illustrates how asymmetries and unique factors are important in entering into emerging markets. Apart from the conventional approach of risk and opportunity assessment that uses traditional matrices, this study also analyses the critical aspects of international business and education to assess country risk and to study to study risks of business expansion into a foreign market. This study firstly will investigates the traditional matrices such as country profile, the political and legal system, cultural context and the country¡¦s economic system including currency risks. Secondly, this study will conduct secondary level institutional analysis investigating the macro level political and social institutional context, country openness, product market, labour market and capital market to explore level of absence of institutions. Finally, this study will discuss the results illustrating the opportunities and challenges of the emerging countries. Keywords: International business, Institutional void, Country comparison, International education, Emerging countries, Risk and Competitiveness. 2. Major Miners and Junior Miners ¡V Investigating the Changing Competitive Structure of the Iron Ore Industry Gary Stockport (Corresponding author ), S P Jain School of Global Management, Dubai, UAE Leo Langa, University of Western Australia, Australia ABSTRACT The purpose of this article is to consider the changing competitive structure of the iron ore industry through investigating the strategic transformation taking place within the major (large) and junior (small) mining companies. This includes a comparative strategic and financial performance analysis of BHP Billiton and Grange Resources. Secondary data was gathered from a variety of sources including iron ore company Annual Reports, Analysts Reports and newspaper articles. Primary data was gathered through semi-structured interviews with Senior Executives who had an association with the iron ore industry in a variety of different roles. The findings showed that the falling iron ore price had led the iron ore companies to pursue innovative ways to transform their business models with the strategic goal of lowering their cost structure. Given that the major miners had a much lower cost structure compared with the junior miners, they were generally performing much better. The article concludes that the iron ore industry is likely to consolidate in the future as many junior miners struggle to lower their costs further and survive. Keywords: Strategic Transformation, Strategic Change, Iron Ore Industry, Competitor Analysis. 3. Exploring The Intellectual Capital Dimensions Impacting on Firm Performance: The Case of Malaysia Frank Wogbe Agbola Economics DisciplineNewcastle Business School, Faculty of Business and Law, The University of Newcastle, Callaghan, Australia Baran Razali Salcon Engineering Bhd, Kuala Lumpur, Malaysia ABSTRACT This paper empirically investigates the intellectual capital dimensions impacting on firm performance in Malaysia. Utilising Pulic¡¦s (2000, 2004) VAIC model, we apply this to data of 156 publicly listed companies on the Malaysian Stock Exchange in order to analyse the relationship between components of intellectual capital namely human capital efficiency, structural capital efficiency and capital employed efficiency and firm performance indicators of earnings per share and return on assets. Empirical results show that human capital efficiency and capital employed efficiency are positively associated with firm performance. Structural capital efficiency was found not to impact on firm performance. We argue that human capital efficiency and capital employed efficiency are important sources of firm organisational wealth, and thus should be taken into serious consideration when formulating firm strategy. We find that there is a need to identify the elements that influence structural capital efficiency in order to find out how it can influence the development and transformation of intellectual capital for improving firm performance of publicly listed companies in Malaysia. Field of Research: Intellectual capital, firm performance, VAIC model, Malaysia 4. Price to Earnings Ratio Investing in The Taiwan Stock Exchange (TWSE) Tyrone Panzer L. Chan Pao Financial Management Department (FMD), De La Salle University (DLSU) Philippines ABSTRACT This research back-tested the strategy of investing in stocks with low price to earnings ratio on the Taiwan Stock Exchange (TWSE) from May 2006 to May 2016. All listed companies in the TWSE were ranked based on this ratio and the stock prices in the current year were compared to the following year from 2006 to 2016. The Year on Year (YoY) percentage change in the stock prices were then tabulated. The stocks were then grouped into equal-weighted portfolio deciles, with stocks with the lowest price to earnings ratio grouped in the 1st decile and stocks with the highest price to earnings ratio in the 10th decile. Backtest results suggest that investing in stocks with low price to earnings ratio, on average, beat the returns of the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX). The 1st decile has a Compound Annual Growth Rate (CAGR) of 4.466% over the 10 year period, the 2nd decile 5.221%, the 3rd decile 4.789%, 4th decile 6.048%, 5th decile 2.950% , 6th decile 4.509%, 7th decile 4.082%, 8th decile 1.055 %, 9th decile -0.02%, and 10th decile 1.817%. On the other hand, the TAIEX has a CAGR of only 2.23% over the same period. The risk-adjusted return for each portfolio decile as measured by the Information Ratio (IR) was subsequently computed. The mean IR of the portfolios was 0.16, with the 1st decile generating an IR of 0.24 while the 10th decile generated 0.03. The strategy was then subjected to Tortoriello¡¦s test for identifying a strong quantitative investment strategy. It satisfied only a few of the criteria outlined by Tortoriello, which led the researcher to conclude that the price to earnings ratio is not a strong quantitative investment strategy on a stand-alone basis. Perhaps it can be combined with the price to book ratio or a fundamental factor to produce a stronger quantitative investment strategy Keywords: Back-testing, Value investing, Price to earnings ratio, Taiwan Stock Exchange 5. nterdependence of Daily Returns Among Major Global Equity Markets Robert C. Winder, Professor Department of Economics Christopher Newport University,USA Fatollah Salimian, Associate Professor Franklin P. Perdue School of Business Salisbury University,USA Kashi Khazeh, Professor Franklin P. Perdue School of Business Salisbury Univers ABSTRACT This study examines stock price data for six major equity indexes over a recent 15-year period to determine if the performance of one stock exchange has a significant influence on the performance of another stock exchange when these stock exchanges are operational in different time zones. Correlation analysis of daily data strongly suggests that it may be possible for investors to improve investment returns by transferring funds from one global stock price index to another global stock price index (and then back again) when the first index achieves a threshold level of appreciation. A specific application of this strategy involving the S&P 500 and the Nikkei 225 clearly illustrates the potential benefit of this strategy. 6. A Multilevel Analysis of Factors Influencing Profitability of Commercial Banks in India. Dr. Raghukumari P.S., K.J.SIMSR, India Harnesh Makhija, K.J.SIMSR, India ABSTRACT Studies on determinants of commercial banks profitability are highly useful to economies and in Indian context very less literature was available with in-depth analysis. To fill this gap, research was undertaken to investigate the factors influencing the profitability of commercial banks in India using fixed effects panel data model and GMM. The findings showed that in case of scheduled commercial banks (Fixed effect model) Capital Adequacy Ratio (CAR) proved to be significant across all chosen dependent variables. When Return on Equity (ROE) was considered as profit indicator, GDP, Net NPAs to Total Assets, WPI proved to be significant. When Net Interest(NIM) Margin was considered as profit indicator, Operating expenses to Total Assets, Operating profits to Total Income, Unemployment rate were proved to be significant, In case of SCB (GMM model) CAR was proved to be significant across all chosen dependent variables. When ROE was considered as profit indicator, Debt to Equity ratio, GDP, Operating profits to Total Income and WPI were proved to be significant. In case of Public Sector banks when ROE was considered as profit indicator, Debt to Equity ratio, Liquid assets to Total deposits, Operating profits to total income proved to be significant. In case of Private commercial banks, when Return on Assets (ROA) was considered as profit indicator, Capital adequacy ratio, Net NPAs to Net advances, Net NPAs to Total Assets proved to be significant. Keywords: Bank profitability, Commercial Banks, GMM JEL classification: E4; G20; G21 7. Green Information System Framework: A Step towards Sustainable Information Technology Amit Kumar Bhardwaja, Yuvraj Gajpalb aLM Thapar School of Management, Thapar University, Patiala (India) bSupply Chain Management, Asper School of Business, University of Manitoba, Canada ABSTRACT This paper highlights the issue of Greenhouse gas (GHG) emission by information technology industry and provides a framework for sustainability in information technology. The number of clicks on internet is increasing day by day due to growing number of internet users. The click at internet forces server to activate and the activation of server activates the electricity consumption. Thus each and every query submitted by an internet users causes GHG emission. This paper proposes a green information system (GIS) framework for optimum utilization of information technology (IT) resources while minimizing the GHG emission. The proposed framework divides the GIS environment in three levels viz. back level, middle level and front level. The back level comprises with servers, cooling system and IT infrastructure. The middle level comprises with networking and communication system among the connected nodes. The front level comprises with internet users and their interaction with information systems through websites. The proposed framework advocates the adoption of green IT solutions for economical, environmental and sustainable digital world. Keywords: Green information system framework, green website, green user, green IT 8. What Happens to Government Business Enterprise Audit Fees When They Are Outsourced by Australia¡¦s Auditors-General? Michael De Martinis*, Monash Business School, Monash University, Australia Leslie Moyan, International School of Business, University of Economics, Vietnam Linh Thi Thuy Nguyen, School of Accounting, University of Economics, Vietnam * The contact person Email ABSTRACT We respond to a question asked by the Australasian Council of Auditors-General (ACAG); ¡¥What happens to the audit fees of the financial report audits of government business enterprises (GBEs) when they are outsourced to private audit firms?¡¦ Using highly proprietary data for 203 nation-wide GBEs for the period 2007 to 2012, results reveal that outsourcing large GBE audits leads to initial and ongoing cost inefficiencies (higher audit fees). However, outsourcing small GBE audits leads to initial and ongoing cost efficiencies. Therefore, outsourcing GBE audits to Big 4 firms should occur only when net value is attained. Keywords; outsourcing; public sector auditing; auditors-general; Big 4 firms; audit fee changes. 9. Production Inventory Model for Perishable Items Whose Deterioration Starts after Fixed Time Sarbjit Singh Institute of Management Technology, Nagpur, India ABSTRACT Inventory is part and parcel of each and every business, whether manufacturing firm or any service provider. Generally, we divide inventory models into two species, i.e. order quantity model and production model. Most of the conditions which can be applied to order quantity models can be applied to production models also. In production models, the rate of replenishment is not instantaneous. While in ordering quantity models, the rate of replenishment is instantaneous. As we all are aware that resources are scarce and improper utilization of resources is sin. Therefore, in last two decades' study of deteriorating items has gained importance, but almost all the production models formulated for perishable items have considered that the deterioration of the items starts immediately as the production starts, which is an absurd. In this model deterioration of inventory starts only after some fixed time of production, which actually happens in most of the cases. The optimal production schedule has been derived to obtain the minimum total cost. The optimality of the model has been checked and numerical illustrations with sensitivity analysis are given to prove the validity of the model. Keywords: Production Inventory Model, Deterioration after fixed time, Cycle period 10. Study of Employer Branding and Its Effect on Organization Attractiveness (OA) and Firm Performance (FP) Neerja Kashive and Dr Vandana Tandon Khanna VES¡¦s Institute of Management Studies & Research and K.J Somaiya Institute of Management studies & Research, India ABSTRACT This paper explores the various dimension of early recruitment activities (ERA) like publicity, sponsorship, word of mouth and advertisement and its impact on employer brand knowledge (EBK) like employer familiarity, employer image or job association and employer reputation. It further explores impact of early recruitment activities (ERA) and employer brand knowledge (EBK) on Organization attractiveness (OA) and Firm Performance (FP).The study shows that early recruitment activities (ERA) impact employer brand knowledge (EBK) like employer familiarity, employer image or job association and employer reputation. Though early recruitment activities (ERA) is not showing significant impact on organization attractiveness (OA) and Firm Performance (FP). But Employer brand knowledge (EBK) is showing significant impact on organization attractiveness (OA) and Firm Performance (FP).The prominent sources of employment information were internet and networking. Keywords: Employer Branding, early recruitment activities (ERA), employer brand knowledge (EBK), internal branding, organization attractiveness (OA) and Firm Performance (FP) 11. Consumer Acceptability of Car Evaluation by Rough Set Theory Hia Jong Teoh, Hsing-Hui Chuƒx Ling Tung University, Taiwan ABSTRACT Consumer acceptability has become an important factor in the product design process. However, manufacturers and designers often misunderstand what consumers really want. Thus, acceptability evaluation and prediction is important in product development. This study presents a novel non-parametric methodology ¡V rough set theory (RST) ¡V for consumer acceptability problem. The rough set theory allows researchers to analyze consumer acceptability in multiple dimensions and to model consumer acceptability as factor chains. Factor chains are composed of safety, luggage boot, persons, doors, maintenance fees, and buying price factors that imply typical consumer acceptability. This study using rough sets method to discover and generate easy understandable rules to evaluate consumer acceptability on car purchasing. A real-world dataset ¡¥car_data.txt¡¦ download from UCI (University of California, Irvine) machine learning repository (Marko Bohanec,1997), is use as empirical dataset to demonstrate the applicability of the proposed approach. The derived decision rules reveal the most relevant attributes to be considered by the manufacturers and designers to understand what consumers really want. The three major important attributes to evaluate the consumer acceptability on car purchasing are safety, persons and buying price. Keyword: rough set theory, consumer acceptability, machine learning, decision rules 12. Students¡¦ Attitude toward Learning Innovative Information Technology in Management Education R K Jena, Institute of Management Technology, Nagpur,India ABSTRACT As more and more innovative Information Communication Technology (ICT) resources become available in support of teaching and learning in business management school, it becomes increasingly interesting to assess the attitudes of management students towards their use. The aim of this study is to investigate the effects of demographic factors like gender, educational background, age on attitudes toward learning ICT technologies among business management student. This study is carried out among postgraduate management students in central India. The results reveal the importance of different demographic factors on attitude towards ICT learning in management education in India.

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ISSN: 1813-0534