ISSN: 1813-0534






Volume 7 No 3 Decmember edition 2011

1. Global Reporting Initiatives (G3), Standard Disclosures for Human Resource Practices: Compliance and Determinants in The Financial Services Sector: Europe, Asia and Others
Pran Krishansing Boolaky
Griffith University
This paper is the first to study whether Human Resource Practices (HRP) disclosure in sustainability reports of Financial Services Sector (FSS) firms comply with G3 guidelines. The paper raises issue on compliance of practices with G3 because it is considered as a generally acceptable reporting framework by many organisations around the world and expects firms to provide consistent and comparable information in sustainability reports. To measure compliance it compares HRP disclosure with the disclosure guidelines in G3 and then compliance between firms within a region and between regions, namely: Europe, Asia and ‘Others’. Using content analysis the
paper measures HRP disclosure compliance with G3 standard disclosures between companies in the financial service sector within region and between regions and (ii) then uses hierarchical regression analysis to investigate the determinants of the compliance level. The paper reveals that the level of compliance with G 3 by FSS firms is higher in Europe than in Asia or the ‘Others’ region. The regression analysis suggests that region, strength of reporting, ethical behaviour of firm, labour/employer relations and capacity of the firms to innovate are the main explanatory variables
of HRP disclosures in the FSS firms. Findings of this study would be useful to potential employees, trade unions as well as national regulators and international organisations such as the International Labour Organisations (ILOs) and the OECD. This study also infers that good corporate communication on HRP maintains good labour/employer relationship.
2. Role of Agriculture in The Proposed Free Trade Agreement between Australia and China: Challenges and Opportunities
Mahinda Siriwardana
School of Business, Economics and Public Policy
University of New England
Armidale, Australia
Australia’s trade, investment and economic ties with China are very important, particularly in the current global economic uncertainty. China has become Australia’s top trading partner, with trade in goods and services worth $63.8 billion in 2007-08. The Australia-China Free Trade Agreement (AUSCHI-FTA) has already passed the 13th round of negotiation in December 2008 and there are several significant issues that are still unresolved. The FTA initiative enjoys a high level of political support from both governments given the large potential economic benefits and the strategic importance of it to both countries. However, the negotiations have stalled over the
treatment of Australian grain exports to China. While Australia looks for a comprehensive FTA, China insists that grain should be exempt as sensitive products from the agreement. This paper analyses the economic effects of the proposed FTA between Australia and China by taking the sensitivity of agricultural trade liberalisation into consideration. A number of FTA scenarios are formulated and the simulations are undertaken using the Global Trade Analysis Project (GTAP)
model and its version 7 database. By simulating the GTAP multi-country CGE model, the paper provides quantitative evidence concerning the sensitivity of agriculture to potential welfare and other macroeconomic aspects of the FTA. Since Australia has comparative advantage relative to China in grain production, a comprehensive FTA may increase Chinese grain imports and hence the agricultural sector of both trading partners may be affected. The findings may shed light on the need towards multilateral liberalisation in agriculture.
3. Leader Career Success & Locus of Control Expectancy
Prof. Kurt April, PhD, University of Cape Town (South Africa) & Ashridge (UK)
Babar Dharani, MBA, University of Cape Town (UK)
Kai Peters, MBA, Ashridge (UK)
In recognition of the fact that the world is dynamic and changing, the research re-tests the well-established relationship between internality and success, and its recognition as a trait of leaders. Contrary to some published Western academic literature, the research results conclude that higher levels of successes are achieved by individuals with an external locus of control expectancy. The research presents evidence of a shift away from a world that appreciates leaders with an ultimate self-belief of control, independence and autonomy, to leaders that appreciate external forces, and
recognise the importance of connection and community. This move is triggered by feelings of loneliness, guilt and tiredness of competition when only autonomy and independence are sought. These triggers are allowing individuals not to merely seek physiological or safety needs, but to seek belongingness and deep-care needs. The implication of this change in leadership style is a move away from narcissistic leadership styles, towards servant leadership styles.
Keywords: Locus of control; objective career success; needs; psychological puberty
4. Good Corporate Governance and Firm Characteristics:
An Empirical Analysis
Srinivasan Ragoagothaman,Erin Cornelsen,and Paul Van Sloten
Beacom School of Business, University of South Dakota
Weaknesses in “corporate governance” have been responsible for the recent financial frauds and Ponzi schemes. The measure of corporate governance used in this study is based on the Corporate Responsibility Officer (CRO) magazine list of 100 Best Corporate Citizens for 2007. The governance rankings of this list are based on a systematic assessment of environmental practices, corporate governance practices, diversity policies, employee relations, human rights issues, product quality and safety and philanthropy. In addition, total return to shareholders over three years is also considered in developing this ranking. We use a multivariate logistic regression
(logit) model in this study to examine the characteristics of firms that were included in the 100 Best Corporate Citizens list. Our results suggest that firm size, price-to-book ratios, and beta (a risk measure) are useful in discriminating “best” governed firms from control firms. Return on assets,auditor opinion and intangible assets to total assets ratio are significantly different between the two groups at the 10 percent level.
5. Does Corporate Governance affect Earnings Quality: Evidence from an Emerging Market
Muhammad Nurul Houqe and Tony van Zijl
Victoria University of Wellington
Wellington, New Zealand
Professor Keitha Dunstan
Bond University Gold Coast, Australia
Dr. Wares Karim
Saint Mary’s College of California
California, USA.
This study examines whether firm governance practices have an effect on accounting earnings quality in Bangladesh. Using a sample of 648 firm-year observations for the period of 2001 - 2006, the result suggests that corporate governance mechanisms provide greater monitoring of financial reporting and these mechanisms positively affect firm earnings quality. This knowledge could be used by the capital market regulator, the Securities and Exchange Commission (SEC), to design mechanisms to constrain managers’ earnings management practices. This, in turn, would contribute
towards development of an efficient stock market and thus protect investors’ interests.
Keyword: earnings quality, discretionary accruals, corporate governance.
JEL classification: J3; K2; M4.
6. B2B Service Interactions: Do ICT-enabled Process Innovations Lead to Enhanced Customer Commitment?
Rafael Paguio and Shameem Ali
Victoria University
ICT provides opportunities for more convenient, more responsive and highly customized information services to business customers as they contact their providers regarding service issues and contract arrangements. This study looks at how ICT-enabled process innovations achieve customer retention goals through the enhancement of the value proposition and subsequently the strengthening of customer commitment.The study involved a survey and interviews of business service customers. Findings indicated that participants were cautious in returning a proportional amount of increased commitment to the service provider even when the value-adding benefits of ICT-enabled services were acknowledged. The study found that those who admitted willingness to higher commitment gave above average
ratings for the value-added effect of CRM services, were reasonably satisfied with their providers, or characteristically maintained a business-like posture to the relationship. On the other hand, those who stated ICT-enabled services would have minimal effect on their commitment tended to eitherhave significant services issues with their providers, a strong transaction orientation as a result of organizational philosophy, or preferred a business relationship with high personal communications
and social content.
7. Prioritizing Retailer Response to Cross-Channel Shopper Expectations
University of Michigan-Dearborn
Consumers today shop across channels in fulfilling their needs. Retailers address their needs by developing cross-channel offerings. Cross-channel retailing is a costly, demanding, and time consuming endeavor. This paper offers retailers an orderly approach to implementing crosschannel programs.
8. Augmentation of Currency Options Market Efficiency by Pricing Market Mispriced Options
Ariful Hoque, Murdoch University, Australia
Because the currency options market efficiency is inversely associated with the arbitrage possibility, minimization of arbitrage opportunity is required for maximization of options market efficiency. In the literature, two major approaches are used to address the arbitrage issue. First, the frequency of the arbitrage occurrence can be reduced by computing the correct options price. But estimating unobservable foreign exchange (FX) volatility is not an easy task, which makes it difficult to accurately price options. Second, the arbitrage profit can be made non-attractive by
introducing the appropriate transaction costs. Furthermore, estimating standard transaction costs across the currency options market is a difficult issue. This study provides a model to price theotherwise mispriced options appropriately, which leads to options market efficiency. The novelty of current study is to enhance the currency options market efficiency without estimating FX volatility or transaction costs.
Keywords:options market efficiency, put-call parity, transaction costs, unit root, GARCH
9. Financial Meltdown on The Capital Market:A Study of The Nigerian Stock Market Exchange
Dr. (Mrs) Yahaya, Khadijat Adenola Department of Accounting and Finance, University of Ilorin,Nigeria
Dr. Abdulraheem, Abdulrasheed Department of Accounting and Finance, University of Ilorin, Nigeria
Dr. Isiaka Sulu Babaita Department of Business Administration, University of Ilorin, Ilorin, Nigeria
Aliu, Olarenwaju Atanda Department of Accounting and Finance, University of Ilorin, Ilorin, Nigeria
Yisau, Nurudeen Salako Department of Accounting and Finance, University of Ilorin, Ilorin, Nigeria
A major engine of economic growth and development of any nation is its capital market. Until quite recently, the Nigerian capital market was the toast of many enlightened Nigerians both home and abroad. This research study investigated the impact of financial meltdown on the capital market with particular reference to the Nigerian Stock Exchange (NSE). In carrying out the study, survey research design was adopted and thirty (30) observations were drawn each from the periods before
the crash and after the menace. Using Z test statistical analysis, two hypotheses tested with respect to NSE All Share Index (ASI) and market capitalisation were rejected implying that the tests were statistically significant. On the contrary, the hypothesis tested on NSE market turnover was accepted meaning that the observed difference in the values was statistically insignificant. Similarly, using market model, it was discovered that there were significant changes in individual quoted securities and expected returns in the period under consideration. Above all, the findings of the study revealed that the financial meltdown impacted negatively on the operational performance and efficiency of the Nigerian stock market. It was recommended that the Nigeria government should inject physical cash into the stock market as a way of bail out in order to restore the lost confidence in the market and also the investors and stock market operators should play the games according to the rule.
Keywords: Nigerian stock exchange, All Share Index, Financial meltdown, Bubbles, Crashes
10. Reconsidering Risk in The CAPM
Daniel Singer
Dept. of Finance, Towson University, Towson, MD ,USA
Recent research in finance has tended to discredit the notion that systematic risk offers a viable approach to assessing the riskiness of a firm in a diversified portfolio. Although most financial analysts practicing today are taught that the use of beta as a measure of market risk is the accepted way to evaluate the risk of an individual stock in a diversified portfolio, the many documented anomalies found to the CAPM have resulted in a literature which treats beta as essentially irrelevant to evaluating a stock’s risk. This paper argues that by shifting the perspective of the CAPM from total return to total risk, investors are seen to use systematic risk to construct efficient portfolios. This focus on idiosyncratic risk is found to allow investors to respond to the possibility of changing macroeconomic conditions.
11. Dynamic Integration between Stock Markets in The GCC Countries: The Role of The Economic and Monetary Union
Aktham Maghyereh and Ahmad Ismail, United Arab Emirates University, UAE
We examine the influence of the process of economic and financial integration in GCC region on the dynamic process of stock market integration over the period 31 May 2002–2 October 2010. A potentially gradual evolution in correlations between GCC stock markets is carried out by embedding the Asymmetric Dynamic Conditional Correlation (AG-DCC) model proposed by Cappiello et al., (2006) with fat tails, volatility clustering, long memory and asymmetric volatility effects (skewed Student-t-FIAPARCH). The empirical findings indicate that dynamic correlations
between the GCC stock markets have generally increased in response to the ongoing economic convergence process, furthermore, we find that stock market correlations increased during the turbulent market periods.
12. Does The Choice of Stock Market Synchronicity Measure Matter? Evidence from Developed and Emerging Countries
Sarod Khandaker, Swinburne University of Technology, Australia
This paper analyses stock synchronicity measures proposed by Morck et al (2000), the
classical measure and the R square measure. The Study finds evidence that stock markets of emerging economies are more synchronous than the developed economies using both the synchronicity measures. It is found that China, Malaysia and Turkey exhibit the highest stock synchronicity during the observation period. Further, cross-sectional analysis illustrates that inflation is generally positively correlated with stock synchronicity and government accountability and trade openness is generally negatively correlated with stock price co-movement, which is consistent with Morck et al (2000). Finally Pearson correlation coefficients and Spearman rank correlation coefficient show that the classical measure and the R square measure are positively
correlated. The study concludes that the classical measure and the R square measure capture similar aspects of stock market synchronous behaviour.
13. Tax Literacy among Individual Taxpayers
Hashanah Ismail, Badriyah Minai and Salmah Muhamed
Faculty of Economics and Management
Universiti Putra Malaysia
This paper reports on a survey of tax literacy level of 200 individual taxpayers. Using the Eriksen and Fallen (1996) model of knowledge index to measure the taxpayers’ tax knowledge, the study finds that gender, use of -efiling and ethnicity are factors significantly related to tax literacy.
Key words: tax literacy, tax compliance, ethnicity,e-filing
14. Small Business,Community Relations and Sustainability:New Approaches to Success
Abbas Nadim, University of New Haven,USA
Robert N. Lussier, Springfield College,USA
This conceptual article extends the current literature in three ways. First, we call for an expanded definition of small business to include the importance of the ties with local community. Second, we review the success vs. failure literature and recommend a new direction of research in this field. Rather than focus on the internal factors, we need to focus on external factors, including the local community. We also present the case for “getting integrated in the surrounding community” as one of the most critical co-producers of long-term success of small business. Third, we demonstrate through a systems perspective that small business should make sustainability a strategic long-term competitive advantage. Implications are discussed.
15. Building The Taiwanese Women’s Entrepreneurship Competency as Small Business Female Entrepreneurs Competitiveness Index
Dr. Chifang Lu, Shih Chien University, Kaohsiung, Taiwan
The global development of an economy centered in knowledge, advances sexual equality, changes the industrial structure, the social framework, and allows a focus of information technology, entrepreneurship that is no longer men’s privilege. Women now have the opportunities and environment for entrepreneurship. In the past, women’s labor tended to be regarded as the supplementary labor in society. However, the situation has changed, and thus, it is necessary to develop and build Taiwanese female entrepreneurship competency as small business competitiveness index. This study will collect the opinions of experts and scholars from industry, government and
academia, and seeks for varied views within a group using the Delphi Method. By interaction and a series of structural inquiries with information or opinion feedback, the experts’ consensus will be fulfilled. With regard to the research targets, this study will evaluate the relative importance of different enterprise competency indices by Analytic Hierarchy Process (AHP). The research purposes are: 1) to function as the criteria for female entrepreneurs before launching the enterprises with regard to competency possessed or trained, 2) allow female entrepreneurs to develop the competency according to the research findings and further succeed the entrepreneurship, and 3) to build the criteria of entrepreneurship competency for the women as the business competitiveness index.
Keywords:female entrepreneurship, Flying Geese Program, competitiveness, enterprise competency
16. Designing An Online Intermediate Accounting Course at A Regional State University with A Limited Technological Budget
Gene Smith, Eastern New Mexico University, USA
The purpose of this paper is facilitate discussion within the business faculty, specifically accounting faculty, as how to teach an online intermediate accounting course at a regional state university with a decreasing operating budget and a minimal capital budget. My approach in teaching an online intermediate accounting course to meet the various learning styles of students and continue the students’ journey in achieving AICPA core competencies is summarized in the paper. An online intermediate accounting course is time consuming and a rewarding process for both
students and instructor. My online intermediate accounting course consists of the following sections: assessment tests, chapter videos, current events writing assignments, discussion boards, chapter exercises and problems, practice set, and exams. The approach I describe is thorough and provides opportunities for students with different learning styles to succeed and have meaningful learning experiences. Overall, students are satisfied with the course. Distance accounting education has arrived. Let the discussion begin!
17. Teachers in The Implementation of International Academia-Industry Cooperation Research Project Benefits
Chien-Chou Chen,Ling Tung University,Taiwan
The main purpose of this research was to explore the technical college teachers in the
implementation of international academia-Industry cooperation project of the effectiveness of international cooperation in the implementation of the project as a reference. The self "international academia-Industry cooperation benefits questionnaire as measuring tools, and 45 technical colleges for the survey of 545 teachers in the sample.The data were analyzed using Frequency, Percentage,
Mean, Standard Deviation, Pearson Product-Moment Correlation, Multivariate Analysis of Variance, Discriminant Analysis and other statistical methods, the test of the factors. Three conclusions summarized as follows: First, the technological and vocational school teachers in the implementation of international academia-Industry "co-effectiveness"on "personnel training "as a priority. Second, different "personal background (gender, occupation, education level),"teachers in the implementation
of the international "co-benefits" have significant differences. Third, the different "personal" background variables (gender, occupation, age)school teachers in the implementation of international production "co-effectiveness" tend to have significant differences exist.
Keywords:Cooperation. Project Benefits.International Academia-Industry. The Technical CollegeTeachers


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ISSN: 1813-0534