International Research Journal of Finance and Economics  Issue 122  May, 2014

 

 

An Assessment on the Dynamics of PPP Model Affecting the Financial Sustainability of Telecentres: The Case of Akshaya Telecentres in Kerala	8-19
P. V. Sangeetha and I. Arul Aram
Abstract: Telecentres have been emerged as a development tool both economically and socially. There are many models of Telecentres. Out of it, the Government-Franchise model is the one that has gained more popularity among all the government driven initiative. In this model, the partnership is between the government and a private entrepreneur. The government usually acts as a facilitator, helping in garnering investments, getting loans to the private entrepreneur, providing technical support and designing content and services. The entrepreneur runs the telecentre. However, maintaining the sustainability of the telcentres without losing its social goals is one of the major challenges that the entrepreneurs faces in this type of public-private partnership model. This paper assesses the dynamics of public-private partnership model affecting the financial sustainability of one such telecentres model in Kerala, India called Akshaya. The study found that the role of entrepreneurs is crucial in maintaining the financial sustainability of Akshaya telecentres as it is a government branded project and it has to hold the social goals of the project as well. Keywords: Financial sustainability, PPP model, Telecentres, Entrepreneurs, Akshaya.
Factors Affecting Bank Loans to Small and Medium Enterprises SMEs in Jordan	20-32
Mwafag Rababa'h , Ali Al- Zoubi and Faris Al-Qadi.
Abstract: The aim of this study is to determine the effect of a combination of financial and marketing factors on bank loans to small and medium-sized Enterprises SMEs in Jordan during the period 2006-2012. The study considered these factors as independent variables which are the size of the bank, the bank's liquidity, the level of competitiveness, the ratio of loans to deposits, the interest rate and risks. These factors were tested on the dependent variable which is the volume of loans granted to small and medium projects relative to total bank loans. The study used the descriptive statistics to describe the study variables and the method of regression analysis to test the hypotheses of the study. The study found that the variables of the size of the bank and the loan to deposit ratio adversely affect and reduce the size of the loans, and the amount of the Bank's liquidity and interest rate positively affect and increase the volume of granted loans,. This study recommends decisions makers to use its results as a tool to rationalize their decisions. Keywords: Bank Loans, Financial and Accounting Analysis, Small and Medium Enterprises, Banks.
The Impact of Financial Crisis in Islamic Banks in Kingdom of Bahrain in 2007-2011	33-39
Bashar Matarneh and Mosa Manaseer
Abstract: The study aims at knowing the ability of the Islamic banks to face the financial crisis though financial performance rates and capital efficiency indicator. The study had concluded that there is no relation between Islamic financing forms and banks performance during the financial crisis, as the Islamic banks had survived the crisis since there is no surplus liquid money and this affected their capital adequacy rise. Keywords: Financial Crisis, Islamic Banking, Financing Forms Mudarbah, Murabaha, Musharkah.
Influence of Earnings Management in Brazilian Companies	40-50
Rebeca Da Silva Gravatá , Marcelo Cabus Klotzle , Antonio Carlos Figueiredo Pinto and Paulo Vitor Jordão Da Gama Silvaa
Abstract: The present study aimed to investigate whether, in fact, creditors can perceive and price the level of information asymmetry generated by earnings management (EM) in terms of the required interest rate. This investigation proved important because, given the competitive scenario faced by companies, the possibility of obtaining lower interest rates from creditors can represent a great advantage over the competition. Moreover, this is a field of study still little explored in academic literature in emerging countries. In analyzing 59 Brazilian publicly traded companies, 663 valid observations were obtained from the period of 1996-2011. The Kang and Sivaramakrishnan (KS) model was used for the determination of the EM variable using a proxy of discretionary accruals. Analyses of quartiles and multiple regressions were performed. From the coefficient of the EM variable, its impact on funding costs was empirically verified. Companies with a higher EM level showed a higher cost of debt. It also was possible to identify that part of the market does not perceive EM as a transparency measure but as an indication of divergence from the actual result. This means, for various reasons, that a company's result may be underestimated by a superficial analysis of the accounting reports and the creditor, observing this fact, may reduce the required rate on a credit transaction. Keywords: Information Asymmetry; Discretionary Accruals; Cost of Debt; Earnings Management.
The Role of Computerized Accounting Information Systems’ Components in Reducing Banking Services Costs in the Iran Banking Industry	51-62
Sadegh Alboali , Reza Alboali and Abbas Sharrat
Abstract: This study aimed to identify the role of CAIS’ components in reducing banking services costs in the Iranian financial institutions (Iranian banks, financial & credit institutions and Islamic non-profit granting funds). The sample consisted of 67 employees including the financial directors and accountants working in the Iranian financial institutions in Khuzestan province. The study adopted the theoretical and field approaches and the descriptive analytical methodology. CAIS’ components consist of human resources, hardware and equipment, software, databases, networks and produces. Findings showed that the components of human resources, hardware and equipment, software, databases, networks and procedures play a significant role in reducing banking services costs. Findings illustrated a positive correlation between each component of CAIS and the reduction of banking services costs. Generally, findings showed that CAIS relatively has a significant role in reducing banking services costs. Keywords: Banking services costs, CAIS’ components and Competitive advantage.
The Significance of Rating in Primary Stock Market (The IPO Grading System): The Indian Experience	63-75
Aparna Mishra and Ajay Kumar Chauhan
Abstract: Purpose: Initial Public Offerings (IPO) grading system, which exists only in India, was initiated by SEBI, the Indian stock market regulator, in May 2007 in order to provide the information signals to the retail investors. An IPO grade represents a relative assessment of the fundamentals of that issue and based on the prospective fundamentals of the companies. These IPO grades are supposed to indicate quality signals about the future prospects of the company’s performance and hence ensure better returns from the investments in quality IPOs. This study is an effort to investigate the relevance of IPO grading on the valuation and performance of IPOs. Design/Methodology/Approach: One hundred IPOs are selected for the purpose of the study, which came during the period between May 2007 and Dec 2010 through National Stock Exchange (NSE) and possess IPO grades at the time of issue. Regression analysis is used to analyse the impact of IPO grading on various above mentioned variables. Findings: The results indicate that the Qualified Institutional Investors (QIBs) consider IPO grading significantly and hence also affects the overall subscription of the IPO. The Listing day liquidity of higher graded IPOs is low but commands better liquidity in the long term. The post listing performance of the higher graded IPO is better than low graded IPO’s. However, the IPO Grading is not relevant in explaining the Listing Day returns. Also the IPO grading has no impact on the subscription behavior retail investors. Originality/Value: For the first time the IPO Grading system has been analyzed to check its significance and impact on the Indian economy. This work will be very helpful for the financial investors and companies planning to bring new IPOs in the market. Keywords: IPO Grading, Underwriting, Post listing performance.
E-Government and Public Accounting Information: Bibliometric and Systemic Analysis	76-91
Rodrigo Valverde da Silva , Sandra Rolim Ensslin , Vicente Ripoll Feliu and Cristina Crespo Soler
Abstract: This study has the purpose of selecting a Bibliographic Portfolio (BP) to comprehend the state of the art of the topic "E-Government and Accounting Information in the Public Sector" and a bibliometric and systemic analysis proceed from this BP using the method of Knowledge Development Process - Constructivist (Proknow-C). The development of this process has structured the BP with 28 relevant scientific papers aligned with the topic of interest, and for this BP we proceed a (i) bibliometric analysis which will describe: those journals that published this topic more often, frequently cited articles, researchers with experience in this topic, reoccurring keywords, research methods and the temporal evolution of relevant publications; and a (ii) systemic analysis investigate the content of BP articles from a theoretical affiliation adopted by the authors. As a result we present some issues for further researches, which represent the possible gaps in the literature where it is possible to advance in the construction of the theoretical framework of the subject. Moreover, the major gaps identified are linked to the construction of constructivist models and the proposal of measures for improvement of the management and dissemination of accounting information on the internet in the public sector. Keywords: E-Government, transparency, public accounting information, Proknow-C. JEL Classification Codes: H83 Public Administration • Public Sector Accounting and Audits.
Household Expenditure Inequality by the Employment Status of Household Head: An Empirical Case Study of African Togo	92-101
Noglo Yawo Agbényégan
Abstract: The purpose of this study is the measurement and analysis of monetary inequality by the employment status of household head in Togo. This is the first work carried out into this aspect of inequality in Togo and using the recent QUIBB 2006 data. The well-being indicator considered is total real annual expenditure per adult equivalent. The assessment of inequality is notably made by the Gini index and its decomposition through the Shapley approach. The results suggest that the overall within-groups inequality is greater than between-groups inequality and are supported by the Theil index. Decomposing the overall within-strata inequality, we notice that the self-employed workers are more contributory. This result indicates that in West African Togo, targeting policies to reduce inequality should principally be focused on within-groups inequality with an emphasis on the self-employed workers. However, between-groups disparities should not be shelved. Keywords: Inequality, Household’s head employment status, Gini index, Shapley’s value, Theil index, decomposition, Togo. JEL Classification Codes: D63, I31.
Co Movements and Inter-Linkages among Emerging and Developed Stock Markets in Asia with Reference to Singapore Stock Exchange	102-120
Kasilingam Lingaraja , Professor Murugesan Selvam and Vinayagamoorthi Vasanth
Abstract: The study of Inter-Linkages, Co Movement and Causal Relationship among emerging stock market indices returns and developed stock market index in Asia. Asian stock markets attract huge inflows of portfolio investments which promote the economic development in the continent. The favorable regulatory changes and technological advancement have brought about significant changes in the Asian emerging markets. The purpose of the study is to make a better-quality point with respect to Inter Linkages, Co Movements and Causal relationship among the Emerging Stock Market returns and Developed Stock Market (Singapore - Straits Times Index) in Asia. This study was based on secondary daily time series data for a period of 12 years from 1st January 2002 to 31st December 2013. Statistical tools like Descriptive Statistics, Unit Root, Correlation Matrix, Linear Regression Model and Granger Causality Test were employed. The findings of this study would help the investors in making efficient investment decisions in the indices of emerging stock markets in Asia. Keywords: Asian Emerging Stock Markets, Causal Relationship, Co Movements, Correlation Matrix, Descriptive Statistics, Granger Causality, Inter – Linkages, Unit Root Test, Singapore Stock Market Index. JEL Classification Codes: G15; G17; N25; P34 .
Relationship between Energy Consumption, Economic Growth Financial Development and Trade Openness in Iran	121-133
Hamid Safaynikou and Mohammad Taher Ahmadi Shadmehri
Abstract: Financial market development is an important factor in movement toward economic growth especially in emerging economies. Financial market development is a phenomenon which can increase financial system effectiveness and may affect economic activities and energy demand. Also trade openness can influence on growth of economy beside energy consumption. Thus, current work aims at investigating relationship between financial market development, economic growth, and trade openness with energy consumption in Iranian economy using Auto Regressive Distributed Lag (ARDL) Model during 1967-2010. Results of this work indicate there is significant relationship through estimation of short-term and long-term models. There is two-way causality relationship between energy consumption and trade openness and there is one-way causality relationship between economic growth and energy consumption and financial development and energy consumption toward energy consumption. Keywords: Financial market development, energy consumption, economic growth, trade.