ISSN: 1813-0534






Volume 8 No 2 August edition 2012

1.The Impact of The Global Financial Crisis on The Asia-Pacific Region
Xianming Meng, Mahinda Siriwardana, Judith Mcneill
University of New England

The global financial crisis (GFC) began three years ago, but the world economy is still in its shadow. The sluggishness of the economic recovery in the US and the recurrence of the European debt crises destroys the confidence of investors as well as consumers. “Double dip” appears as a threat from time to time. Under these circumstances, it is imperative to understand fully the impact of the GFC and the effectiveness of various policy responses to it. Using the GTAP model, the GTAP database 7.0 and macroeconomic data, this paper will gauge the impact of the GFC on the Asia-Pacific region. The paper will also simulate and assess the effect of the policy responses in Asia-Pacific countries, such as massive government investment in infrastructure and capital-intensive goods, and tax cuts and subsidies to help business and save jobs. By analyzing the simulation results, this paper will shed light on the contributing factors of the GFC and the efficient ways to cope with a large negative economic shock like the GFC.

2. Job Satisfaction and The Aging U.S. Workforce

Robert P. Singh and Isaac Yao Addae
Morgan State University, Baltimore, Maryland

The purpose of this paper is to explore the trends related to the aging workforce in the U.S. It focuses on the job satisfaction levels of older workers in comparison to younger workers to understand the benefits and challenges of the aging workforce. General Social Survey data collected from thousands of full-time working respondents from 1972-2010 were divided into two groups: 1) below age 55 and 2) 55+ years. Chi-square tests and hierarchical linear regression results showed that older workers had significantly higher levels of job satisfaction than younger workers. This finding has remained true over the last 4 decades. Contrary to our expectation, older workers did not display increasing levels of job satisfaction over time. The practical implications and future research directions are discussed, however, this paper benefits business leaders seeking to better understand the implications of a growing base of older workers on the future viability of their organizations.

3. Interim Dean or Acting Manager versus “A” Manager or Leader: Can Old Theories and New Practices Be of Use?

James P. Reburn and Robert W. Service
Samford University

As the first author completed his interim deanship he felt it important and timely to describe his experiences. The desire was to define the good and the bad in terms that could help improve the experience for future interim deans and to see if the experience were generalizable to other acting or temporary managerial or administrative situations. Thoughtfully analyzing this experience and matching it against managerial and leadership practices and theories, results in useful recommendations for the "interim" or "acting" deans.
The research question is: what are the key factors that determine success as an interim manager or dean? This will be addressed by recounting critical experiences, and researching theories and useful concepts in order to derive solid recommendations.

4. An Assessment of The AIS Satisfaction of Small-medium Enterprise Accounting Staff
Hsing-Hui Chu, Hia Jong Teoh
Ling Tung University

This study employs DeLone and McLean information systems success model (2003) to explore the level of satisfaction small-medium enterprise accounting staff have when using accounting information system, and its impact on intention to use and benefit to users. 150 questionnaires were dispatched and 105 (70%) collected, valid samples for the study were 96 (64%). The results of the study revealed that system quality, information quality, and service quality have a positive impact on intention to use and satisfaction for users. In addition, the intention to use and user satisfaction have a positive correlation. Furthermore, the intention to use and user satisfaction both contribute to a positive impact for the user benefit. Most importantly, the benefits to intention to use, and user satisfaction have a positive feedback effect.
Keywords: accounting information system, system quality, information quality, service quality

5. Effective Strategic Procurement Management in A Dynamic Environment

David R. Rink, Indiana University Kokomo, U.S.A.
Harold W. Fox, Pan American University, U.S.A.

Increasing demands on cost reduction, input quality, and materials planning together with ever-changing technology, intensifying global competition, and added product complexity have significantly broadened the scope and highlighted the importance of procurement, thereby elevating its stature to the corporate level. Today’s purchasing executives command greater decision-making authority, develop and implement strategies for different functions within the company, and participate in formulating corporate policies and strategies. These new responsibilities require a reconceptualization of procurement. Most important is the need for a set of carefully conceived purchasing strategies sequenced according to some workable framework. Using the product life cycle as a gauge of market conditions, the authors developed 145 prescriptive procurement strategies across four stages of a product’s sales trend, which they maintain will assist purchasing executives to formulate and implement more effective and timely procurement strategies.

6. Environment Management Systems in Indian Small and Medium-Sized Enterprises

Mitrabinda Singh, Curtin University, Sarawak, Malaysia
Martin Brueckner, Murdoch University, Australia
Prasanta Kumar Padhy, Berhampur University, India

This paper investigates the challenges small and medium-sized enterprises (SMEs) face in India with regards to their generally poor environmental management track record. In this context, the paper explores the status and effectiveness of Environmental Management Systems (EMSs) as a means of improving the environmental management performance of Indian SMEs as well as the applicability of the formal uptake of ISO 14001 (uncertified or certified). Indian SMEs are responsible for producing large amounts of waste affecting environmental quality but also firms’ international reputation in environmentally sensitive markets. While national policies support the greening of medium size enterprises (MSEs) by way of reimbursing firms 75 per cent of the cost of ISO 14001 certification, businesses are not supported with the cost for “continuous improvement”, which is a major barrier for Indian SMEs when implementing and building up an EMS. This paper is informed by a detailed review of international research on the SME experience with EMSs, examining whether EMS uptake can help SMEs not only improve their environmental performance but also assist in terms of becoming internationally competitive and gaining access to global export markets. Based on an analysis of the international EMS experience and the status of EMS in Indian SMEs, this paper points to a need for a country-specific and sector-specific investigation of the relationship between small firms’ EMS uptake and their environmental management performance. Such a research agenda also ought to address the question of relevance and applicability of formal standards such as the ISO 14011 to the Indian context.
Key Words: SME, EMS, ISO 14001, Waste minimization

7. Extent of Intra-Industry Trade in Selected Trade Deficit Categories in Australia: 1990-2006

Samuel Belicka
Victoria University, Melbourne

The Intra-Industry Trade (IIT) calculated in this study is between Australia and the Rest of the World (RoW) and 8 selected Trade Deficit (TD) countries in 4 selected TD categories . The measure for IIT used is an unadjusted Grubel & Lloyd Index (GLI) which is calculated side-by-side based on monetary values, Quantity (QTY) and Average Unit Value (AUV) for all 4 categories. The overall results indicate that the extent of the IIT in all selected TD categories between Australia and the selected TD countries is relatively high. However, despite the high levels of the extent of the IIT in these categories, this extent has been significantly decreasing overtime amongst most of the selected TD categories and countries. Finally, the findings also suggests that the extent of the HIIT is in overall increasing for most of the selected categories/countries, which suggests that the selected countries are becoming more internationally competitive in which Australia seems to be losing its competitive ground.

8. Dynamic Linkages between MENA and Developed Stock Markets
Hazem Marashdeh, Alhosn University, United Arab Emirates

This study examines the financial integration among four emerging and frontier stock markets in the Middle East and North Africa (MENA) region. The study also examines the integration between these markets and developed markets represented by the US, UK and Germany. The study utilizes the newly proposed autoregressive distributed lag (ARDL) approach to cointegration. The results show evidence of the existence of integration among stock markets in the MENA region, but not between MENA markets and developed markets. This gives the opportunities for international investors to obtain long-run gains through portfolio diversification in MENA region, while for regional investors, these opportunities are limited in the long-run.

9. Efficiency Monitoring in the Family Enterprises’ Dual-system Structure – An Empirical Analysis of Taiwan’s Financial Holding Companies

Ghi-Feng Yen
Professor, Department of Business Administration, Chung Yuan Christian University,Taiwan
Yao-Hung Yang
Doctoral student, Graduate School of Business Administration, Chung Yuan Christian University,Taiwan

This study was aimed to investigate efficiency monitoring in corporate governance in the financial holding companies in Taiwan. It was started from the family enterprises dual-system concept (family system and enterprise system), and the perspective of the structural characteristics among shareholders was based to develop the research hypotheses. The research time period was from 2005 to 2010. The results showed that only the monitoring power of inner circle and core circle facilitate corporate value and effectively monitor whether or not the contributions of managers conform to their remuneration. The empirical results provided a more complete investigation on family enterprises and complemented the previous literatures solely based on a corporate perspective.
Keywords: financial holding industry; corporate governance; efficiency monitoring; dual-system.

10. Comparative Critique of The Performance Evaluation Methods in The Australian Energy Industry

Feng Li, School of Accounting and Finance, University of Wollongong, Australia
George Mickhail#, School of Accounting and Finance, University of Wollongong, Australia

The purpose of this study is to investigate the efficiency of business evaluation methods in the Australian energy industry during the periods from 1989 to 2007. The six commonly used business evaluation methods (CAPM, WACC, EVA, P/E ratio, DCF and MetaCapitalism) were selected and compared with the share price in the whole market, listed market and delisted market, to explore which valuation methods were better for evaluating business performance in the Australian energy sector over the long-term. An empirical analysis using linear regression, we find evidence that CAPM is a much better method for listed companies to measure the rate of return of an asset in a well-diversified portfolio in the Australian energy industry, while DCF was a better method for listed and delisted companies, when making capital budgeting decisions for public companies in the Australian energy sector. We also find that the generic efficiency prescriptions of the radical corporate strategy: MetaCapitalism, was based on fallible assumptions, and tended to transfer negative signals to the market as reflected in the share price, as well as threatening the long-term sustainability of business and social stability.

11 Board Structure and Firm Performance: Evidence from An Emerging Economy
Mohammad Badrul Muttakin, Arifur Khan and Nava Subramaniam
Deakin University

We investigate the relationship between corporate board structure and firm performance of Bangladeshi companies. Using a sample of 654 firm- year observations for the period 2005-2009, the results show some support for aspects of agency theory as a greater proportion of independent directors on boards is related to better firm performance. Supporting resource dependence theory our result also suggest that larger boards provide valuable business experience, expertise, skill and social and professional networks which might add substantial business resources to the firms and thus positively impact on performance. We also find that female and foreign directors in Bangladesh provide more monitoring which leads to better firm performance. Our study contributes to extant research on board structure–performance relationship by providing evidence from an emerging economy context which is characterised by ownership concentration, family dominance and poor regulatory oversight.

12. Factors Affecting The Profitability of Malaysian Commercial Banks

Dr. Ong Tze San , University Putra Malaysia, Malaysia
Teh Boon Heng, Multimedia University Malaysia,

This study intends to investigate the impact of bank-specific characteristics and macroeconomic conditions on Malaysian commercial banks financial performance, during the period of 2003 to 2009. This study employs regression models that relate bank profitability ratios to various explanatory variables. There are three ratios which represent profitability measures are return on assets (ROA), return on equity (ROE) and net non-interest margin (NIM). Seven variables are drawn from the conventional banking literature as proxies for bank-specific and macroeconomic factors. Results of this study indicated that ROA is the best profitability measures. All bank-specific determinants affect bank profitability significantly in the anticipated way. However, no evidence is found in support of the macroeconomic variables have an impact on profitability.
Keywords: bank-specific characteristics, macroeconomic, bank performance

13. Industry Evidence on Earnings Management- A Comparative Analysis of Accounting Models

Lan Sun, University of New England, Australia
Omar Al Farooque, University of New England, Australia

This study traces the development of accounting models in capturing corporate earnings management behaviour, with particular focus on discretionary accruals. The primary reason is to shed light on whether changes in accounting model can improve the detection of earnings manipulation and whether there exists any industry bias towards such behaviour. Using 5,947 firm-year observations of Australian sample of listed firms for 8-year period from 1999 to 2006, this study tests and compares earnings management behaviour across wide industries by using Jones Model, Modified Jones Model, Cash Flow Modified Jones Model, and Performance Adjusted Technique. The results show that Performance Adjusted Technique outperforms over other models in providing an improved way of detecting earnings management. Moreover, a high magnitude of earnings management is found in Energy, Industrials, Health Care, Information Technology and Telecommunication & Utilities. Industry evidence on earnings management may prompt regulators to reinforce corporate governance and require additional disclosure from some industries and further examine the extent to which disclosed financial information distorts the information underlying the true economic performance.
Keywords: Earnings management, discretionary accruals, accounting models selection, industry evidence
JEL classification: M41, M43

14. Analysis of Operating Efficiency and Dynamic Development of Taiwan’s Financial Holding Companies–Application of DEA and Co-plot Methods

Ya-Hui, Lin1   Ghi-Feng, Yen2 Yao-Hung, Yang 3*
1 PhD, Dept. of Business Administration, Chung Yuan Christian University ,Taiwan
2 Professor, Dept. of Business Administration, Chung Yuan Christian University,Taiwan
3*(Corresponding author) Doctoral student, Dept. of Business Administration, Chung Yuan Christian University,Taiwan

Our purpose is that with DEA and Co-plot methods to analyze phenomenon of Taiwan’s financial holding industry, and try to find the leader and laggard groups. Fourteen FHCs in Taiwan served as the subject of study from 2002 to 2010. We took DEA to observe the operating efficiency of FHCs, and applied Co-plot to display dynamic development of FHCs. It is found that Cathay, Shin Kong, and Fubon have better operating efficiency with related indicators, and they belong to the leader group. Waterland, China Development, Jih Sun, and E.Sun belong to the laggard group. With the application of different features of the DEA and the Co-plot methods, interesting and similar results are obtained in this research by cross-checking each other. These results provide theoretical as well as practical contributions in related fields.
Keywords: Financial holding company, operating efficiency, dynamic development, DEA, Co-plot.

15. Northern and Southern Dietary Cultures in Pre-Qin China: Case of Bazhen and Menus in The Songs of The South
Meei-Chen Ho, Department of Chinese Literature, Chu Hai College of Higher Education,Hong Kong

While food is the first necessity of man, what and how to eat is always an open question in different times and areas. China has a wide territory covering different types of climates, geographical environments and natural resources, and along with the ethnic, religious, cultural and custom diversity, diverse dietary areas featuring different styles have thus formed on Chinese soil. The food menu bazhen (八珍) representing the ‘Central Plain culture’ and the menu in the ‘Zhaohun’ (招魂, ‘Summons of the Soul’) in the Chuchi (楚辭, Songs of the South) by Yuan Qu (屈原) representing the ‘Southern China culture’ before the Qin Dynasty and are the best examples representing the dietary culture of northern and southern China. This paper is divided into five sections. Section 1 is an introduction to dietary aspects before the Qin Dynasty. Section 2 delineates the contents and features of the bazhen menu representing the dietary culture in northern China. Section 3 accounts for the menu symbolizing the dietary culture in southern China depicted in the ‘Summons of the Soul.’ Section 4 compares and contrasts the likes and dislikes of the dietary cultures in northern and southern China. Section 5 is the conclusion of this paper. By analyzing these two menus, this paper aims to investigate the dietary cultural differences in northern and southern China.
Keywords: dietary culture, bazhen (八珍), ‘Zhaohun’ (招魂, ‘Summons of the Soul’), Chuchi (楚辭, Songs of the South), Central Plain culture, Southern China culture

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ISSN: 1813-0534