ABSTRACT OF DECEMBER EDITION 2014
Volume 10*Number 3* December 2014
1. Female Managers’ Perception regarding Female Participation in Corporate Boardroom: Evidence from An Emerging Country
Mohammed Hossain, Griffith University, Nathan, Australia
Mahmood Ahmed Momin, Auckland University of Technology, Auckland, New Zealand
Khalid Al-Naama, Qatar University, Doha, Qatar
This paper explores Qatari female manager’s perceptions regarding female representation in the governance or board structure. Based on survey of 130 Qatari female managers working in different sectors, the paper revealed that female participation in board structure is perceived positively by Qatari women managers. They viewed that women participation in governance structure can increase
board effectiveness and corporate governance. Qatari managers also assumed that women board representation can play positive role on the status of women at work place, however, in this case Qatari policy makers can give attention to the development of women leadership in management and at corporate board level. Furthermore, our results clearly indicate that the lack of women participation
in corporate governance is a barrier to women's advancement in Qatar. The study results provides some sorts of motivations for change in composition of board membership and corporate governance in Qatar and calls for reform the Qatari law in the priority basis.
2. The Moral Business Tone of Organizations and Its Impact on The Ethical Decision Making of Employees
Hsiao Jun See ,Ying Han Fan (PhD),Gordon Woodbine (PhD)
Curtin University, Australia
This study involves a first attempt to examine ethical climate types and corporate ethical values and their impacts on ethical decision-making of employees in the oil and gas industry in Australia. A survey methodology is used and results indicate that employees’ perceptions about their organizations’ extant moral tone and punishment systems significantly influence ethical judgments. However, there is no evidence that oil and gas company managers demonstrate unethical behaviour rather it appears that such behaviour is strongly admonished by management. Ethical climate types per se do not appear to be significantly different from expectations for mature industry firms and are not associated with decision-making.
Keywords: ethical climate, corporate ethical values, ethical judgment, Australia
3. Analysis of Capital-Labor Productivity for Firm Level Total Productivity Performance of Pharmaceutical Industries in Developing Countries
Mohammad Ayub Islam, Department of Accounting & Information Systems
University of Chittagong, Bangladesh
Asadul Hoque Research Associate School of Environment, Enterprise & Development (SEED)Faculty of Environment,University of Waterloo Waterloo, ON, Canada N2L 3G1
Muhammad Mohiuddin School of Business and Economics,
Thomson Rivers University, Kamloops, BC, Canada. V2C 0C8
Zhan Su Professor of International Business and Strategy
Faculty of Administrative Science, Laval University, Quebec, Canada
The purpose of the paper is (i) to measure total productivity, capital productivity and labor productivity of the sample pharmaceutical enterprises; and (ii) to analyze capital-labor relationship for better understanding of productivity performance. The main feature of the study is the extensive use of secondary data and the main sources of secondary data are the annual reports of the sample enterprises. The lead researcher collects these data personally from the concerned authorities. The study is limited to five pharmaceuticals enterprises viz., Libra Pharmaceuticals Ltd., Square Pharmaceuticals Ltd., Beximco Infusions Ltd., Beximco Pharmaceuticals Ltd., and ACI Ltd. Capital productivity shows how well available capital is allocated and managed, while labor productivity shows how well the labor force has been used. Neither the labor productivity nor the capital productivity alone provides an adequate measure of productivity performance. Capital productivity does not indicate the performance of work force, while the labor productivity does not indicate the efficiency of utilization of assets. On the other hand, both types of productivity ratios ignore the gain of each from the other. Analysis of capital-labor relationship is a technique to evaluate overall productivity performance. In this respect the study is an attempt to see the overall productivity performance of some pharmaceuticals enterprises in Bangladesh. Many existing studies examine productivity issue at the macro-level in developed countries and developing countries. This study examines productivity issue at the micro level in Bangladeshi pharmaceutical enterprises.
KeyWords: Capital-Labor Relationship, Productivity Performance, Pharmaceutical Industry,Bangladesh
4. Air Asia: What Has Made It Asia’s Largest Budget Airline?
Dr. Achinto Roy, Deakin University, Australia
The success of Asia’s largest budget airline, Air Asia is analysed in this paper with a view to gain an insight into the factors that have contributed towards it. Air Asia’s management has concentrated on costs efficiencies, attention to controllable variables that reduce total risk and replication of the multi-hub model that generates operational efficiencies along with the creation of a regional identity that has gone a long way in making this airline what it is.
5. Agents of The State or Market? A Mutual Institutional Constraint Framework for Chinese Central SOEs’ OFDI
Monica Ren, Macquarie University, Australia
Wei Li, University of Sydney, Australia
Chinese Central state-owned enterprises (CSOEs) have become active global investors. This requires extensions of existing theories since CSOEs sit across international business and political economy. This paper develops a mutual institutional constraint framework (MICF) to explore whether CSOEs are the agents of the state or market while internationalizing. MICF has identified ‘three level actors’: the state, the enterprises, and the top executives; illustrated ‘three forces’ embedded in all actors: capabilities, responsibilities and incentives; and resulted ‘three manifestations’: conservatives, entrepreneurs, and opportunists of CSOEs’ internationalization. Two case studies are conducted between 2011 and 2013, providing supporting evidence to MICF. Six propositions are developed for further investigations. CSOEs’ internationalization has shown characteristics of a mixture of practices as agents of state and market. The ‘three level actors’ are mutually constrained by various forces in the state-centred and non-state-centred home institutional environment in China. It’s also of the interests to explore if this framework can be used to explain other ownership firms in China or state-owned firms’ OFDI from other developing countries.
6. Retail Investor Preferences and The Idiosyncratic Volatility Puzzle
Julia Henker, Bond University, Australia,
Thomas Henker, Bond University, Australia
Deborah Tan, University of New South Wales, Australia
We explain the negative relation between idiosyncratic volatility and future stock returns observed by previous researchers. We argue that, based on the observation described in prospect theory, retail investors prefer stocks with a high level of idiosyncratic volatility and are consequently willing to overpay for those stocks. In support of our argument, we find that the negative idiosyncratic-volatility return relation is present in the Australian market, and that this relation is affected by the magnitude of retail trading. The relation is particularly strong when returns and realized volatility are measured at a daily frequency.
7. Does Religion Inflate Customer Satisfaction on Islamic Housing Loan Consumers in Malaysia?
Arasu Raman, INTI International University, Malaysia
This study is focusing Malaysia which is really a typical exemplary case of a nation where multiple religions harmonize (Muslims, Buddhist, Hindus and Christians) and multi factional attachments interlace within the Malaysian culture. This study reveals a homogeneous cover and not complex in contrast to many emerging markets in terms of Islamic banking practices. This study pulls on past studies to build an empirical framework which hypothesizes relationships between the religion construct and its influences on customer satisfaction of Islamic housing loan in Malaysia. A survey was conducted among banking consumers who secures an Islamic housing loan facility with banks in Malaysia using a structured self-administered questionnaire. This study found the solution for whether religion is a norm for customer delights with Islamic bank that offers Islamic housing loan facility. It concludes that religion does not implicate or has not infatuated varying levels of individual preference or consumption habits in everyday banking life. With the believe that the conceptual understanding of Islamic branding utilizing the ethnic metaphor muscle, be strengthened in considering Muslim and non-Muslim consumers targets that is governed by Sharia’h principles. The underlying justification is that the study not underpinning the symbolic affiliation between brands and emotions of these homogeneous consumers. The results of this study evidencing that banking marketers in Malaysia who understand the social bond and beliefs of Malaysian multi sectarian consumption are unable to capitalize or profit significantly by serving the needs of housing loan consumers merely using the term “Islamic”.
Key words: Islamic banking, Islamic branding, Islamic financing, Customer satisfaction
8. Consumers Frequent Use of Internet Banking: Empirical Evidence from Australia
Dr Sujana Adapa, University of New England, Australia
Professor Ray Cooksey, University of New England, Australia
This study sets out to explore the factors that influence consumer’s frequent use of internet banking in Australia. Consumers’ frequent use of internet banking as a post-purchase behavioural pattern that has been neglected as most of the existing studies focus on either consumer adoption or pre-adoption behavioural patterns. More and more service businesses are finding that the acquisition of new customers is difficult and started to realise that understanding consumers’ frequent use of internet banking as an effective strategy for retaining the existing customer base. This study is a response to a gap in existing literature which requires the application of more integrated theory testing and the identification of factors that influence the frequent use of internet banking in hierarchical order of importance to consumers. A conceptual framework is developed based on theoretical models related to the technology acceptance and diffusion of innovations theories. Data were collected from 372 internet banking users using a cross-sectional mall intercept survey in the Western Sydney region. Exploratory factor analysis was performed for factor clarification on five key scales related to the use of internet banking service delivery based on technology, channel, social, value for money and frequent use factors. The final components that emerged were employed in hierarchical logistic regression analysis to test the proposed framework. Value for money, channel and technology factors were found, in that order, to be influential in predicting consumers’ frequent use of internet banking.
Keywords: Frequent Use, Internet Banking, Value for money Factors, Channel Factors, Technology Factors, Social Factors, Australian Consumers
9. Time Diversification and Contributions
Robert J. Bianchi, Michael E. Drew and Adam N. Walk
Griffith Business School, Griffith University, Austraia
The time diversification debate examines the relationship between risk and investment horizon.The debate has generally considered wealth to be a function only of returns. This paper considers the practicalities of this assumption (particularly in light of the broader pension finance debate) by examining two further accumulation models. Our findings reveal that one particular variable –contributions – significantly impacts terminal wealth. Furthermore, we find that measures proposed as ways of studying time diversification generally ignore the influence of contributions. If the time diversification debate is truly about the risks of long term investing, considering realistic accumulation models should be the first step to understanding the relationship between risk and investment horizon.
JEL classification: G23; G11
Key words: Time diversification; Risk; Investment horizon; Contributions; Defined contribution; Pensions
10. The Association between State Funding and Utilization of Dental Services: A Case for A Universal Dental Scheme
Nerina Vecchio, Griffith Business School, Griffith Health Institute, Griffith University, Australia
Richard Chung, Griffith Business School, Griffith University, Australia
Newell W Johnson, Griffith Health Institute, Griffith University, Australia
The aim of this study is to investigate the association between State funding towards dental services and the frequency of dental visits among concession card holders. Based on nationally representative data collected from the Australian National Health Survey, probit regression showed that individuals residing in the State of Tasmania were less likely to visit the dentist relative to residents from the State of Victoria, but no other Australian State showed a consistently significant relation. Variation in the funding of dental services provided by Australian States amplifies inequity among concession card holders and provides support for a universal dental scheme
11. Gold Standard of Financial Regulation
Ramesh Subramanian, Ph.D Research Scholar,SCSVMV University, Enathur, Kanchipuram, Adjunct Faculty, IFMR Chennai, India
Entrepreneurs and investors would be willing to invest only if there are congenial regulations and regulatory environment. Uncertainty, obscure and conflicting regulations create anxiety in the minds of entrepreneurs and hence risk takers and investors shy away from such an environment. The State needs to adopt a ‘principle-based’ approach rather than ‘rule-based’ approach to channelize financial resources for rapid economic development. The regulator could use monetary policy or macro prudential policy to adjust growth rate and deleverage risk. Each policy is used based on the objective to be achieved. With multiple regulators operating in the economy there is a possibility that the regulators would be working at cross purpose leading to regulatory gap and overlap. Adoption of gold standard in regulation would avoid anomalous situation and is a sine-qua-non for the economic progress of the country. The article is an attempt to formulate a gold standard of financial regulation.Gold standard regulations would lead to development of entrepreneurs and investors would be forthcoming to invest in such an environment.
Keywords : Financial Regulation, Uncertainty, obscure and conflicting regulations, gold standard of financial regulation, investment, entrepreneurs, anomalous situation.
12. Microfinance Impact Evaluation: A Review of The Existing Literature
Dr. Shalu Bansal, LM Thapar School of Management, Thapar University, Patiala,India
Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers and insurance to the poor and low income households and their micro-enterprises. Micro-financing is regarded as a tool for socio-economic up-liftment in a developing country like India. Microfinance has played two important role in India: in poverty alleviation and women empowerment. In order to present a coherent and succinct review of the broad microfinance literature, a focused review of literature was conducted to evaluate publications regarding impact of microfinance on poverty reduction in India and impact of microfinance on women empowerment in India. From the present study, it is observed that there is ample evidence to support the view about positive impact of microfinance on poverty reduction and positive impact of microfinance on women empowerment. Microfinance is an effective tool to lift the poverty by providing self-employment opportunities, gradually building their assets and enhancing income earning capacity. But majority of poor are excluded from financial services due to their creditworthiness and high transaction cost. Impact of microfinance is appreciable in bringing confidence, courage, skill development and empowerment among women participants of self-help group. Improvement in psychological well-being and social empowerment among rural women is also the result of participating in microfinance through SHG program.
13. Ranking of Mutual Fund Performance: Comparison of Various Measures
Mehul Raithatha, Institute for Financial management and Research (IFMR), Chennai, India
Varadraj Bapat, Indian Institute of Technology, Bombay, India
This paper aims to evaluate different mutual funds schemes floated in Indian market during 2000 to 2009. Using different traditional measures (Sharp ratio, Treynor ratio, Jensen’s Alpha) and new measures (Semi-standard deviation, Negative potential, Omega and M squared), the study carries out ranking of mutual fund in different time period (i.e. 2000 to 2004 and 2004 to 2009) considering different stages of market cycle. It has been observed that Buy and Hold strategy may not be the best option instead regular profit booking and medium term holding is turning out to be advisable.
Keywords: Mutual Fund, Omega, M squared measure
14. Lead-Lag Relationship between Spot and Future Market: Evidence from Indian Derivative Market
Dr. Naliniprava Tripathy
Indian Institute of Management Shillong, Meghalaya, India
The study has explored the lead-lag relationship between spot and futures markets in Indian derivative market. The lead-lag relations between spot and futures markets reflects how well the two markets are linked and carries important information for the traders. The study uses daily closing price of S&P CNX Nifty Index and Nifty Index futures during the sample period from December 2005 to April2013. This study uses Granger Causality test, Johansen Co-integration test, Vector Auto-Regression model, Vector Error Correction model, Variance Decomposition and Impulse Response Function to determine dynamic relationship between spot and futures markets. The results suggests that there is a bi-directional causal relationship occur between spot and futures markets. The results also provides evidence of existence of long-run equilibrium relationship between the spot and futures markets. Vector Error Correction model suggests that spot and futures markets respond to share the forces of short run adjustment to long run equilibrium. The study finds that spot market leads futures markets and supports in discovery of price process. The study concludes that spot market plays comparatively stronger leading role in disseminating information available to the market and said to be more efficient than futures market. The study concludes that there is presence of arbitrage opportunities exists in the price discovery process. Thus, investors can use spot price as a good indicator in predicting futures markets price to improve their portfolio performance by taking efficient strategies in hedging and speculating futures markets in India. The policy makers can also take suitable policy actions to stabilize the derivative markets.
Key words: Futures markets, Spot markets, Lead-lag Relation, Price discovery
JEL Classification: F47, G14, G11
15. An Assessment of ASEAN Institutional Framework for Climate Change Governance
Dr. Huong Ha, UON Singapore & University of Newcastle, Australia
Prof. Gamini Herath, Monash University, Malaysia
Dr. Susie Khoo, Ngee Ann-Adelaide Education Centre, Singapore
The impact of climate change is tangible and intensive and poses numerous threats on areas which include social, economic, human, and ecosystem development. Yet, as observed by the United Nations Environment Program (2012), current climate change governance lacks the representativeness and effectiveness necessary for the achievement of environmental sustainability at the regional and global levels. One of the reasons for this is the lack of a strong institutional framework, and the lack of participation of stakeholders in different sectors. Thus, this paper aims to (i) introduce a three-sector governance approach (government, the private sector and civil society) for climate change governance,(ii) examine the ASEAN institutional framework for climate change governance through secondary data, (iii) identify the gaps between the current ASEAN institutional framework for climate change governance and the three-sector governance approach, and (iv) make policy recommendations to address such gaps. The method of enquiry is to investigate to what extent the current ASEAN institutional framework facilitates the participation of the three sectors in the governance of climate change. The findings suggest that although ASEAN has introduced a number of policies, initiatives and programs to address climate change and environmental sustainability, it is not clear how such initiatives and actions have been implemented and evaluated; and how various groups of stakeholders can be involved inin this process. Hence, a holistic governance model should include not only government, but also the private sector and civil society since they are all affected by any policy or decision made government.
Keywords: ASEAN, climate change adaptation and mitigation, regional governance, Southeast Asia,three-sector governance approach
16. Service Quality in Malaysian Higher Education
Faculty of Management, Multimedia University, 63100 Cyberjaya, Malaysia
Faculty of Management, Multimedia University, 63100 Cyberjaya, Malaysia
On the one hand, the level of students’ satisfaction is important for institutions. In fact, they are willing to reduce students’ dissatisfaction and increase satisfaction in order to capture more students.On the other hand, service organizations including tertiary institutions in Malaysia undergo an intense competition. Therefore, they should strive to find ways to compete against their competitors in order to survive in today’s competitive market place. One method is that all institutions should pay attention to their students and improve the service quality rendered to the students. Thus, the institutions should know the gap between what the students want and what they are offered. Accordingly, they may improve the quality of the services rendered in the light of students’ satisfaction. This research measures service quality in private universities in Malaysia using the SERVQUAL instrument.Service quality based on the SERVQUAL model includes five dimensions which are tangibles, reliability, responsiveness, assurance, and empathy. The researchers used quantitative data collection method using a SERVQUAL model-based questionnaire. The usable questionnaires amounted to 185,and following data analysis the researchers established that the students are satisfied with none of the service quality dimensions delivered by the universities. However, the researchers recognized that students are more satisfied with assurance and less satisfied with empathy dimensions.
Key Words: service quality, higher education, SERVQUAL, satisfaction
17. Managing ICT Costs in E-Commerce Organizations with The Time-Driven Activity-Based Costing Model: A Note
Michael S. C. Tse
School of Accounting, Economics and Finance, Deakin University, Australia
As online business activities continue to grow, it is important for organizations to understand the implications of being an e-commerce organization and the appropriateness of applying existing business techniques to e-commerce organizations. This paper examines issues in managing information and communication technologies (ICT) costs in e-commerce organizations and the potentials of the Time-Driven Activity-Based Costing (TDABC) model as a solution to these issues.The reliance on ICT in value creation, the unique natures of ICT costs and the need to maintain
updated costing models present new challenges to e-commerce organizations in management of ICT costs. The TDABC model, as a variant of the Activity-Based Costing (ABC) model, inherits the strengths of activity-based paradigm and has unique features that can provide additional benefits to e-commerce organizations.
Keywords: Activity-Based Costing; E-Commerce; ICT Cost Management; Time-Driven Activity-Based Costing