International Research Journal of Finance and Economics
 Issue 141
 October, 2015
 
The Impact of Process of Structure of the Stability of the Life of Company and Its Relationship with Tax Revenues and Profit
7-13
Mohammad Saleh Mazarzei

Abstract:
In the following paper has been studied and the stability of the company's life and their relationship with the tax income and profit; initially after the literature review variable of the size, age, capital expenditure, sales growth and dividend payout ratio per share has determined as described aspects of the company's life cycle. According to life-cycle theory, companies and businesses such as all living things have a life cycle. Companies considering to the each stage the itís economic life, pursue the specific policy; after this concept has explained the taxable income and stability of profit on the basis of previous research and according to their relationship with the company life cycle combined and finally completed comprehensive conclusion of the above topics; This study expands the literature related to life cycle issues, the tax choices, the taxable income and the stability of company profits.
Keywords: firmís life cycle, the stability of profit, income opportunities of companies
 
 
Calendar Anomalies: exist or fizzled out?
14-35
Ghulame Rubbaniy, Elena Jacobs and Osama El-Temtamy

Abstract:
Using stock markets of 19 countries over the period from 1996 to 2010, this study investigates the presence of calendar anomalies (i.e., the Monday effect, the Turn-of-the-Month effect, the January effect, the Halloween effect and the pre-Holiday effect) that are supposed to be fizzled out over time under efficient market hypothesis. We find the evidence supporting both the existence and reversal of some of the calendar effects, where the level of statistical and economic power differs across the seasonal effects. Contrary to our initial expectations, our cross-sectional multivariate analysis shows that most of calendar anomalies exist in developed countries. Our results show that almost all of the international pre-Holiday effects are present in Asian region. We find the Halloween effect fairly present in the period 1996-2000, which fades away in the later periods supporting the appearance of strong form of efficient market hypothesis over time. Finally, our finding is inconsistent with the results of Cadsby and Ratner (1992) in documenting that the highest returns are not earned in joint pre-local-US holidays as we find negative returns in those days.
Keywords: Monday effect, TOM effect, January effect, Halloween effect and pre-Holiday effect. Calendar Anomalies, Efficient Market Hypothesis, Financial Markets
JEL Specification: F37, G21, O16
 
 
Impact of the Use of Management Information Systems Technology in Creative Behavior - A Field Study of the Workers in the Commercial Banks in the South Province of Jordan
36-46
Aymn Sulieman Zamel AL_Qatawneh

Abstract:
The study aimed to identify the impact of the use of management information systems technology in the creative behavior - a field study of workers in the commercial banks in the South region of Jordan, To achieve the objectives of the study a questionnaire was developed for the purpose of data collection and it was distributed to the sample of the study which was comprised of (210) forming (93 %) of the restored questionnaires of the study population that consisted of 450 employees, the Statistical Package for Social Sciences (SPSS) has been used to analyze data of the questionnaire analysis based on simple regression analysis to test the impact of the use of management information systems technology in creative behavior also on Pearson correlation coefficient to identify the correlation between the use of management information systems technology in creative behavior attributed to the variables (experience, educational qualification ).
The study found a set of results including:
1. The results of the study revealed the presence of a statistically significant impact of the use of management information systems technology on the creative behavior.
2. The results of the study have shown the presence of a statistically significant impact of the use of management information systems at the creative behavior attributed to educational qualification.
3. The results of the study have shown a difference for people with experience (10 years and over).
The study recommended the need to work to find suitable mechanisms for the participation of individuals in the discussion of their problems and the need for continuous training in light of the rapid technological changes.
Keywords:management information systems technology, creative behavior
 
 
Blue Economy In Motion: Factors Affecting the Empowerment Level of Coastal Communities
47-65
H Riniwati

Abstract:
Two-thirds of Indonesian territory consists of the sea, but the poverty inherent in the lives of fishermen. Motion blue economy of scarcity to abundance gives a lot of innovation and millions of jobs. Applying blue economy means empowering people. The level of community empowerment depends on individual factors, community groups and government. The purpose of this study was to analyze the factors affecting the level of empowerment of coastal communities on the coast of South Malang in East Java, Indonesia. Respondents were 45 people who represent the factor of individuals, communities and governments. Data obtained by structured interview to the respondent. Data were analyzed by the method of Generalized Structure Component Analysis (GSCA). The results showed that there were (1) direct effect, significant positive namely (a) Individual Factors on Organizational Factors, (b) community factors with the factor of the organization; (c) factors on the level of community empowerment, (d) factors on the level of empowerment organization. 2). Direct effect, insignificant namely (a) the individual factors on the level of empowerment. 3) The indirect effect, a significant positive, and (f) the individual factors on the level of empowerment through organizational factors; (g) the factor of the level of empowerment of communities through organizational factors. Organization in this case the Department of Fisheries and Maritime Affairs (DKP) Malang Regency was instrumental in empowering communities Coastal South Malang. Results of the analysis may be suggested GSCA weeks to maintain and enhance the role of government organizations (DKP) through a problem-solving skills, the spirit of supporting the leadership, awareness and knowledge, share information, skills and teaching practices of resource management and planning through to evaluation.
Keywords: blue economy in motion, empowerment.
 
 
Default Risk Correlation and Diversification Benefits In A Two-Bank Model
66-75
Samih Antoine Azar

Abstract:
This paper studies a model of a two-bank consolidated institution that is characterized by variable correlation coefficients between the equities of these two banks. Low correlation coefficients generate diversification benefits that reduce overall default risk. Two types of credit quality are considered: one corresponding to an equity ratio of around 8%, and the other to an equity ratio of around 15%. Both risk-neutral and physical risk statistics are computed. As is generally known, default risk correlations cannot be ignored. The model produces recovery rates that can fall to as far as 85%, and surprisingly these vary negatively with credit quality, or with equity ratios. Default risk correlations are found to be bounded from below. Only under very extreme circumstances do these correlations reach their minimum value of -0.19. Finally, risk-neutral and physical default risk correlations increase with the correlation between equities at an increasing rate. Since in financial crises stock correlations increase, this will lead inevitably to more default risk and to more actual defaults. Such a result is a natural extension of the model and does not depend on macroeconomic factors like business cycles.
Keywords:two-bank model, default risk, default risk correlation, equity correlation, equity ratios, credit quality, diversification benefits, simulations.
 
 
Sensitivity of Default Risks to the Gaussian Copula Correlation
76-82
Samih Antoine Azar

Abstract:
This paper studies the relation between the Gaussian copula correlation coefficient and five default risk characteristics for two assets liable to default: the default risk correlation coefficient, the joint probability of default, the default probability by a single asset, and the no-default probability. The procedure is carried out by Monte Carlo simulation. Some of the results are intuitive, others are counter intuitive. For example, the default risk correlation coefficient, the probability of joint defaults and the probability of no defaults are all positively related to the Gaussian copula correlation. However, the default probability by each single asset is negatively related to the Gaussian copula correlation. In addition, the default risk correlation coefficient is hardly negative, its lowest value being -0.05.
Keywords: default risks, Gaussian correlation, Monte Carlo simulation, bivariate normal random variables.
JEL Codes: G17, C15
 
 
Foreign Direct Investment, Financial Development and Economic Growth: Panel data analysis of African Countries
83-100
Grace Essien

Abstract:
This paper examines the role of financial development in improving the effect of FDI on economic growth of some African countries. Investigations were conducted to pinpoint which financial structure could provide the best improvement using the bank-based vs. market-based debate. The study covered the period 1990-2010 employing panel data from 12 African countries. The Dynamic fixed effect (FE) Pooled Mean Group estimator was used for estimation. Results from regression analysis conducted considering only FDI indicated that it had an insignificant effect on the economic growth of the sampled countries. However, when financial development measures were factored in, FDI was found to have a significant impact. Analysis of results indicated that development of the overall financial system of African countries would be more beneficial in comparison to developing either the banks or financial markets alone. More importantly, the improvement of liquidity of financial systems in Africa needs prioritized in policy making.
Keywords: Economic growth, financial markets, foreign direct investment
JEL classifications: F23, F36, F43
 
 
Does Social Trading Works?
101-107
Gil Cohen

Abstract:
Social trading has become more and more popular among investors. Nevertheless, it has not yet been established whether the use of community aggregate knowledge can outperform the index. In the following research study I built monthly social portfolios based on community recommendations from March 2010 through October 2013 and half a year portfolios for 2014 and then compared the performance of these social portfolios to that of the NASDAQ index. I found that excluding 2011, on average the social portfolios were inferior to the NASDAQ index both in returns and in risk involved in both monthly and half a year time frames. I concluded that using community knowledge and recommendations when building a portfolio does not prove advantageous over buy and hold strategy and does not drop the need for traditional portfolio analysis and professional counseling.
Keywords: Herd behavior, Community investing, Social investing
JEL Classification: G14, G11, G15
 
 
Openness and Effects of Monetary Policy on Inflation
108-115
Truong Quang Thong and Le Duy Khanh

Abstract:
This study investigates the impact of openness on monetary policy effects on inflation of transition economies. Using system GMM estimate for the panel data of 16 countries from the 1999Ė2013 period, the empirical findings demonstrate a positive impact of the openness on the effects of monetary policy on inflation: more open economies are associated with more profound influence of the monetary policy on their inflation.
Keywords: monetary policy, inflation, openness
JEL: E24, E31, E52, F41
 
Budget Slack and Organizational Performance: The Impact of Customer Relationship Quality and Environmental Uncertainty
116-127
Hung-Chih Tsai

Abstract:
This paper reports on a survey of Taiwanese high-tech firms, using a path analysis to examine the effects of customer relationship quality (CRQ) on the relationship between Budget Slack and organizational performance. We find that budget slack has a positive effect on organizational performance through the use of CRQ, and find the extent of this positive effect is more significant in business environments marked by high levels of uncertainty. This study provides evidence to understand whether budget slack requires more extensive use of CRQ in highly uncertain environments and whether the use of CRQ can improve organizational performance. The results also help practicing managers realize the importance of CRQ in modern organizations and the benefits of using CRQ to the organization. Finally, we remind managers engaging in budget slack practices that they should place importance on the use of CRQ, because traditional cost control systems no longer help in solving the problems that are specific to the current, modern business environment.
Keywords: Budget Slack, Organizational Performance, Customer Relationship Quality, Environmental Uncertainty.