International Research Journal of Finance and Economics
 Issue 130 January, 2015
 
Debt in a Time of Poor Growth
7-17
Marco Mele and Angelo Quarto

Abstract:
Literature prevalent in the current academic debate on the economic crisis about sovereign debt and the try to resolve the problem identified in high public debt of countries “with risk of insolvency” the primary cause of economics problem (C.M. Reinhart, K.S. Rogoff, 2010). This is despite international economists have reached a broad consensus in identifying other causes, due in particular to the limits of the European monetary architecture and especially the absence of a maneuver on the exchange rate.However, the assumption that the excessive public debt generates effects of the crisis has been accepted as the backbone to justify the choices of austerity, especially in the EMU.
Now, confronted with the fact that the critical threshold of 90% of the debt/GDP ratio, so close to the levels of many Western countries involved in the crisis and the austerity policies, it does not seem to have any particular economic or statistical significance (T. Herndon, M. Ash e R. Pollin, 2013) this paper wants to investigate, rather, the direct effect of higher indebtedness on economic growth for countries in the EMU with a panel estimation, VAR analysis and Granger causality.
Keywords: fiscal policy, public debt, economic growth, panel analysis, turning points, EU
JEL Classification: E62,H63, O40, C33
 
 
The Influence of Selected Tools of Corporate Governance on Agency Costs: Empirical Evidence from Borsa Istanbul (BIST)
18-34
Asli Aybars

Abstract:
Opportunistic behaviors undertaken by managers have become a hotly debated topic due to the recent corporate scandals encountered. Accordingly, academicians and practitioners have focused on the significance of corporate governance mechanisms in mitigating agency costs arising due to the conflict of interest between the managers and shareholders. This study aims to provide evidence on the role of institutional investors, auditor quality, leverage, and dividend policy in alleviating agency costs of equity in an emerging market, Turkey. Panel data analysis is conducted to test the four hypothesis generated on a final sample of 188 nonfinancial firms listed on Borsa Istanbul (BIST) during the nine year observation period between 2005 and 2013, inclusive. The estimates reveal the significance of institutional ownership and leverage in improving asset utilization; thereby, reducing agency costs. However, the findings as to auditor quality and dividend distribution are documented to be insignificant in that these variables cannot act as tools of control in aligning the interests of the managers and owners.
Keywords: Agency Costs, Corporate Governance, Emerging Market, Panel Data Analysis
 
 
Price, Return and Volatility Linkages of Base Metal Futures Traded in India
35-54
Pankaj Sinha and Kritika Mathur

Abstract:
The study analyses the price, return and volatility behaviour of base metals (aluminium, copper, nickel, lead and zinc) traded on Indian commodity exchange - Multi Commodity Exchange (MCX) and International commodity exchange London Metal Exchange (LME).
There is a need to understand the return and volatility spillover across commodity exchanges in order to formulate hedging strategies for consumers and producers at the time of entering into a commodity futures contract in order to mitigate their price risk. The paper attempts to demonstrate the linkages through three models: (a) Price – Co-integration methodology and Error Correction Mechanism Model (b) Return and Volatility – Modified GARCH model (c) Return and Volatility – ARMA-GARCH in mean model (Innovations Model). The findings of the paper suggest that there exists a strong linkage across the price, return and volatility of futures contracts traded on MCX and LME respectively.
Keywords: Futures, GARCH, Base Metals
JEL Classification: L61, Q02, G19, G13
 
 
The Equity as a Call Option Hypothesis for the Value Premium
55-70
Yufen Fu and George W. Blazenko

Abstract:
The value premium is the empirical observation that low market/book “value” stocks have higher returns than high market/book “growth” stocks. In this paper, we investigate and present evidence for an “equity as a call option hypothesis” for the value premium. Volatility decreases the options-leverage of equity, which decreases expected return. At the same time, volatility increases value for equities with options features, which increases market/book. Because volatility has opposite impacts on expected return and value, there is a value premium.
Keywords: Equity Returns, Real Options, Volatility, Value Premium.
 
 
A Rationale of Rating Commercial Banks in the MENA Region?
71-78
Mohammad Kassem

Abstract:
This study aims to investigate the rationale of rating commercial banks in the MENA in the presence of the sovereign rating ceiling. It also attempts to examine the predictive power of the Z-score model. This model was introduced by Scott (1981), developed by Goyeau and Tarazi (1992), and applied by Kassem, Awdeh and Moussawi (2014) in evaluating the probability of default for banks operating in 12 MENA countries, and covering 7 years of annual data (2005-2011). The predictive power of the applied Z-score model was detected by determining the residuals between the estimated Z-score values and the observed values of Moody’s ratings. The results showed that the adopted Z-score Model is fairly accurate, and on average the absolute value of residuals is only 2 notches. Moreover, the results showed that the differences in rating between the Z-score and Moody’s for the six countries (Tunisia, Lebanon, Morocco, Saudi Arabia, Qatar, and Kuwait) can be simply explained by the difference in sovereign debt ratings for these countries.
Keywords: Credit rating agencies; MENA banks; Sovereign rating; Z-score.
JEL Classification: G21; D24
 
 
The Success Factor Model of Service Quality Management of Police Station in Provincial Police Region 9
79-90
Chaetta Hronjan, Ornpapha Chutikorntaweesin, Thuchapon Yodthong, Prapas Siripap and Tanarwad Wisamitanan

Abstract:
The purposes of this research were 1) to study the success factors of service quality management of police station in Provincial Police Region 9, 2) to study the components of service quality management of police station in Provincial Police Region 9, and 3) to study the causal relationship between success factors of service quality management of police station in Provincial Police Region 9. The results showed that with regard to the success factors of service quality management of police station in Provincial Police Region 9, the aspect with the highest mean was management structure, followed by core value, working strategies, staff management, effective management system, police station management, and working skills of staff respectively. With regard to the components of service quality management, the aspect with the highest mean was the tangibility of service, followed by attention, responsiveness, assurance, and reliability respectively.
The hypotheses results showed that the success factors have causal relationship with service quality management of police station in Provincial Police Region 9 with the statistical significance at the level of .05; and the success factors can predict the opportunity in generating the service quality management of the police station in Provincial Police Region 9 at 77.5%.
Keywords: Service Quality, Management, Public, Structure, Core Value.
 
 
The Form of Leadership and School Differentiation Affecting the Competitiveness of Secondary School in the Southern Region of Thailand
91-101
Sarapee Kuerak, Thuchapon Yodthong, Nichanan Chanchoengrob, Nitcharat Sangthong and Tanarwad Wisamitanan

Abstract:
The purposes of this research were 1) to study the competitiveness of the secondary schools of the southern region of Thailand classified by demographic profiles, 2) to study the factors of leadership and differentiation influencing the competitiveness of the secondary schools of the southern region of Thailand, and 3) to study the causal relationship between the factors of leadership and the differentiation influencing the competitiveness of the secondary schools of the southern region of Thailand. With regard to the factors of leadership influencing the competitiveness of the secondary schools in the southern region of Thailand, the aspect with the highest mean was excellent performance in self-leadership. With regard to the factors of differentiation influencing the competitiveness of the secondary schools of the southern region of Thailand, the aspect with the highest mean was education quality development and the technology using support. With regard to the competitiveness of the secondary schools of the southern region of Thailand, the aspect with the highest mean was school has the ability to provide the education service according to the syllabus to be able to reach every level of students. The analysis results of the factors of leadership influencing the competitiveness and the factors of differentiation can predict the competitiveness of the secondary schools of the southern region of Thailand at 87.7%.
Keywords: Leadership, Differentiation, Competitiveness, Predict, Southern Region of Thailand
 
 
Statistical Analysis of Islamic Banks Financing Modes
102-116
F. Hamza, M. El Hachloufi, A. Akhrif

Abstract:
In this article, we are presenting a statistical analysis of financing different modes provided by Islamic banks: financing modes based on purchasing and selling operations as Mourabaha, Ijara, Salam….Etc and those that are created on association of capital-labor in participative operations as Mousharaka and Moudaraba.
This analysis allows orientating Islamic banks towards Islamic financial products destinated to consuming or investment, what supplies a decision helping tool to economists in order to adopt their economic politic.
Keywords: Statistical analysis, Islamic banks, Mourabaha, Ijar, Salam, Mousharaka, Moudaraba.
 
 
Cross-Border Mergers and Acquisitions: Links between Acquiring Firm Resources and Strategy
117-131
Jian Gu, H Donald Hopkins and Ronaldo Parante

Abstract:
Many strategic management studies have tried to identify firm strategies that lead to superior performance. This paper studies this proposition by focusing on cross-border acquisitions. It takes the acquiring firm’s perspective and explores how firm specific resources influencecross-border acquisitions. It uses a fit model to argue that it is the fit between these two factors (firm resources and strategy), rather thanstrategy per se, that affects performance.
Keywords: Resources, mergers, strategy, cross-border.
 
 
The Role of Time Management in Secondary Education
132-141
Keramida Konstantia

Abstract:
In the modern competitive era we are experiencing, the viability of organisations motivates the improvement of productivity and goal achievement, in a drive to excellence. This trend is reinforced by the fact that improving and increasing productivity are representative effectiveness indicators for the organisation as a whole. Therefore, based on the above, a director's role can be reasonably linked to the improvement of time management in the workplace, with the goal of achieving the highest degree of effectiveness. The constructive use of time by directors has been proven to have a positive effect on the management process, contributing to the success of vital departmental goals. . In addition, lack of time in the modern workplace combined with information and suggestion overload about its potential management by directors, form conditions of pressure and stress. Thus, there is a strong need for the correct allocation and management of work time and the effective control of work related stress, with the goal of coping with unforeseen and time consuming incidents. Specifically, the items of study are: 1) defining the importance of time in the practise of effective management, 2) determining the factors influencing the management and organisation of work hours by the principal of an educational unit and 3) describing ways by which a principal can manage work related stress coming from workload and the time limits imposed.
Keywords: Time Management, Secondary Education, Principal, Job Satisfaction, Control Time