International Research Journal of Finance and Economics
 Issue 152
 September, 2016
 
Assessing the Factors Driving the Collapse of Micro Finance Institutions in Ghana
7-19
Maxwell G. Asiedu, Eric Nkansah and Godfred M. Aawaar

Abstract:
We investigate the organisational (internal) and environmental (external) factors that influence the failure of Microfinance Institutions (MFIs) in Ghana and its impact on the employees and customers of these MFIs. The study mainly uses descriptive and explanatory strategy vis-ŕ-vis inductive and deductive research approach for the formulation of hypothesis based on theories and principles of Microfinance studies. We sampled 10 employees and 50 customers of two failed MFIs in Ghana. We document that MFIs failures are mostly influenced by inexperience of credit officers, high lending rate, poor credit appraisal, poor recovery, inadequate documentation and poor administration of the credit processes leading to high default rate. We again document that, the MFIs engage in poor investment of depositors’ funds which leads to the dissipation of depositors funds. We further observed that harsh economic conditions and poor regulatory framework are equally key drivers of MFIs failure.
Keywords: Microfinance Institutions, Ghana, MFIs Failure, Capital Requirements, Branch Expansion, Bank of Ghana
 
 
Study the Effect of Iran's Natural Gas Reserves Volume on Global Gas and LNG Prices
20-31
Touraj Dehghani

Abstract:
Global natural gas demand has been significantly increasing during the last decades, which has placed this energy career on the third rank of energy consumption. Undoubtedly, gas reserves volume of Islamic Republic of Iran, as the first global place, dominantly affects international market transportations. Although Iran’s contribution in global gas trade is not significant against its reserves, it has played its role, especially after formation of Gas Exporting Countries Forum (GECF). Accordingly, this research studies the effect of Iran gas reserves volume on global gas prices. After studying related literature, analyzed statistical data, experimental relations, VAR Model, and model estimation method will be introduced. Finally, the results of model estimation will be analyzed, which show the relations between Iran gas reserves and global gas prices. Also, stationarity test, co-integration test, Johansen Test, optimum interruption, VAR, and instant reaction function are estimated.
First, the results show that in short term, description powers of LNG price in Germany, Japan, NBP, and Henry Hub markets indicate endogeny of this variable, but this description power changes in long term after 10 periods. Second, there is a unilateral causative relation in Granger casual estimation by global LNG prices in Japan and Germany markets. Also, there is a unilateral casual relation from Iran gas in Japan and Germany market indices. Therefore, volume of Iran gas reserves affects natural gas markets in short term, but cause decrement of Gas prices in Henry Hub and NBP markets in long term. Of course, it decreases in Japan market as a LNG price index after 10 years.
Keywords: Gas reserves, global LNG price, gas price, VAR Model, Granger Causality
 
 
Impact of Dividend Yield and Price Earnings Ratio on Stock Returns of Companies Listed on the Tehran Stock Exchange
32-37
Abdollah Seyedi, GolamAli Haji and Hasan Akbari

Abstract:
Purchasing of the shares of new entries companies to stock exchange is more perilous rather than other bourse member companies. Because the investors don’t have enough information about new entries companies. Also the lack of correspondence about information between potential managers and investors, is the most important problem that investors are face with about these companies.
In this situations, new entries companies are have to exhibit some information that help to investors in determining of share price.
Experimental evidences show that investors pay lots of attention to information such as forecasting the earnings per share that is reported by managers for pricing share. These forecasts express the expectations of managers about the probable future events, therefore the accuracy of these forecasts is very important for investors.
The purpose of these study is recognizing of effective factors in stock output of general primary submission in accepted companies in Tehran bourse. Findings from a study of 109 companies in the period of time between 1387-1393 shows that there is a meaningful relationship among earnings per share, net assets value per share and return on equity(ROE) with share price.
Keywords: share price, stock dividends, earnings per share
 
 
Pricing Model with Liquidity Risk in Vietnam’s Stock Market
38-45
Nguyen Anh Phong

Abstract:
This study aimed to analyze the rationality of pricing models CAPM and FF3 (Fama-French three factors model). In addition, our study has also assessed the liquidity risk of the stock market of Vietnam in the period from 2007 to 2011. Selected samples are companies which have been listed continuously for at least 24 months up to 2011. Companies which have had BE/ME less than 0, from the time of listing until the end of 2011, were eliminated. According to this selection, as of 2011, there were 299 stocks satisfied. Results showed that liquidity and liquidity risk have a strong influence on the profitability of listed shares. The pricing model which combines FF3 with liquidity proved that this is an optimal model. From such conclusion, the author proposed to apply the four factors model (FF four factors model) in pricing securities in Vietnam's stock market.
Keywords: CAPM, Fama and French, FF3, liquidity, FM method, GRS method, GMM method.
 
 
Stock Index Returns and Volume Response in GCC Stock Markets
46-54
S.N.SARMA

Abstract:
This study is an attempt to empirically test if there is any asymmetric volume response to price changes in relatively new and emerging Gulf Cooperation Council (GCC) stock markets where short-selling is restricted and markets are undergoing a bear phase. Employing ARDL model on the daily stock market index and volume data from mid-2008 to May 2016 this study analyzed price-volume relationships. The model has been estimated for all possible combinations of lags ranging from 0 to 5 and the model with least SIC value is taken as the fitting model. After testing for the goodness of fit, diagnostics, the chosen model is used for coefficient restriction tests for inference. Volume response to positive and negative price changes is significantly different in all the GCC markets and volume response is more sensitive to negative price changes. Although volume is sensitive to both positive and negative price changes there is an asymmetric volume response to price changes. A very strong contemporaneous and lag price-volume relation is obvious in all the markets. This study adds yet another evidence of asymmetry of price-volume relationship in markets under bear phase and having restricted short selling opportunities. Overall, higher volume is found to be associated with negative price change and perhaps, a confirmation of short selling hypothesis. The result implies investors to trade large volume of shares when the prices are declining in these markets. Earlier studies reported higher volume being associated with positive price changes due to short sellers’ response to information. This paper confirms the role of short selling in volume response to price changes, by testing price-volume relationships in markets where short-selling is restricted or not permitted and the markets are under bear phase.
Keywords: Price-volume relations, GCC markets, Trading volume, Stock return, ARDL model
 
 
Relationship between Knowledge Management and Social Capitals in Broadcasting Staff of Tehran Province
55-69
Hadiseh Norouzi, Reza Niasty, Abed Ghasemabadi and Ghazaleh Salahshour

Abstract:
The overall goal of this research is upgrading the knowledge management in Broadcasting of Tehran province (case study of the voice) through determination of the relationship between knowledge management and social capital. The research is applied in terms of the purpose, and is cross – correlation in terms of the implementation. Population of study are staff of the voice that specified by approval of teachers and advisors as convenience sampling volume 300.
Data collection tool is a questionnaire consisting of 72 questions with 4 options scale spectrum: very low, relatively low, relatively high, and very high; that after determining the validity, it was conducted on staff. Validity of questionnaires was calculated by using Cronbach's alpha coefficient for scale of social capital and knowledge management, respectively, 940/0 and 927/0. To analyze the collected data, researcher has been using descriptive and inferential statistical techniques and SPSS software 18. In order to answer research question including; determining the amount of each dimension of knowledge management (consisting of knowledge creation, knowledge dissemination, knowledge application) and social capital (including trust, collaborative management, organizational identity, social participation and knowledge-sharing), T univariate models have been used. Friedman model has been used for ranking of Knowledge Management elements and social capital toward each other. In order to determine the relationship between knowledge management and social capital with demographic characteristics of the study population, chi-square model has been used. For determining the relationship between knowledge management and social capital, Pearson correlation model is applied. The results indicate that, based on results of Pearson model's implementation, the coefficients of matrix correlation is in the range of 0/3728 to 0/6735 and all are significant at the level of α =001/0. This shows that social capital is associated with knowledge management. Due to the relationship between social capital and knowledge management in organizations, thus it can be expected that development of knowledge management in the organization will increase the level of social capital.
Keywords: social capital, knowledge management, knowledge transfer, dissemination of knowledge, application of knowledge
 
 
Evaluation of Neighborhood Oriented Management based on Municipal Management by SWOT Method
70-85
Ayeh Atapour and Gholam Reza Latifi

Abstract:
The pioneer article is to evaluate the Eyvanak municipal neighborhood and Region 2 and its impressionability of Tehran's municipal management by Swot Analysis . The main purpose of this assessment is to realize the problems of municipalities "such as Tehran municipality , Region municipality , District municipality , neighborhood municipality (Neighborhood Management) and the impact and effectiveness of each of the internal and external elements . The research method is analytical , descriptive , library and observational . The reason for choosing this area as a topic to write down a study entitled "Evaluation of neighborhood oriented management based on municipal management by Swot method (Case Study : Eyvanak neighborhood , District 7 of Tehran municipality in Region 2) is seeing a lot of problems in this area and neighborhoods as part of the North West of Tehran . Region and areas that are considered among the best and highest neighborhoods and districts of Tehran, but have the most problems . This area is divided into 9 districts , 30 municipal council neighborhoods and 14 auditing neighborhoods that Eyvanak neighborhood (Phases 4 , 5 and 6 in Shahrak-e-Qods) is considered as part of these neighborhoods . According to the done Swot analysis for the region and the neighborhoods studied , we concluded that one of them will be expressed briefly in this section . Since the amount of insecurity, crime, and drug dealing in the area has increased especially in Eyvanak neighborhood, so we suggest that the social participation of citizens and training methods of dealing with criminals and social aberrations should be increased . To do this it's better to apply some terms and policies in the neighborhood such as : 1 . The possibility of using the amphitheaters and other facilities owned by municipal management and neighborhood management for holding meetings , 2 . Increasing people's sense of belonging to the neighborhood and the prevention of abnormal behavior according to the principles of environmental design , 3 . Holding training classes ,…… In continuation of paper, further explanations will be expressed regarding this assessment and Swot analysis of Eyvanak neighborhood and District 2.
Keywords: Management , Neighborhoods, Cities, Municipalities, Swot Analysis Strategy
 
 
The Relationship between Fundamentalist Expected Return on Reducing the Crash Risk
86-90
Parviz Rakhshkhorshid and Ahmad Nategh Golestan

Abstract:
More economic theory is founded on the idea that people act rationally in the face of economic events and consider all available information in the investment process. This hypothesis is the basis for the efficient market hypothesis. But researchers have questioned this premise to have discovered evidence indicating a lack of rational behavior in the context of investment. They seek to understand and explain the effects of human emotions in the process of decision making. Many investors believe that they can always successfully ahead of the market, but in fact there is much evidence which it denies, the overconfidence caused large trading loss of profits investors(Bohm & Chiarella,2005).
Keywords:
 
 
The Application of Contract Theory in Companies
(The Case of Adverse Selection)
91-104
Zeinab Shaeri, Mosayeb Pahlavani and Saeid Eisazadeh

Abstract:
One of the negative phenomena that lead to the economic agents' inappropriate decisions in the market is asymmetric information. This study examines the effect of contract theory on maker's utility in Iran Tire Company in the condition of asymmetric information. We evaluate and solve raw material supply problems (the adverse selection problems), by numerical approach and GAMS software. We define three technical types of the raw material suppliers to investigate the impact of contract theory on maker's utility. Overall, the results show that a contract between raw material suppliers (in this paper, Tire Cord Fabric supplier) and maker (Iran Tire company) minimizes the inefficiency resulted from asymmetric information. On the other hand, in this numerical approach, we obtain the optimal values of raw material quality (Tire Cord Fabric) and the price to be paid to the supplier and also the optimal values of the Lagrange multipliers of the imposed constraints. Our findings point to the importance of optimal incentive contracts that aim to increase efficiency in companies and industrial institutions in asymmetric information condition.
Keywords: contract theory, adverse selection, principal-agent theory
JEL Classification: C61, D82, G30, L14, P31
 
A Reviews the Impact of Talent Management and Organizational Knowledge on the Job Satisfaction Units of Islamic Azad University of Western Azerbaijan Province
105-113
Ghader Khaligh and Rasoul Ranjbarian

Abstract:
The objective of this research was the impact of talent management and organizational knowledge on the job satisfaction units of Islamic Azad University of Western Azerbaijan province. The research method in terms of objective was practical and in terms of data collection was descriptive-survey on the basis of structural equation model(SEM).the statistical society include all employees of units of Islamic Azad University of Western Azerbaijan province which their number is 834 individual. The sampling has been done according to Cochran formula (n=265) and has done randomly. The data were gathered using Armstrong Talent management (2006) , Newman & Conrad knowledge management(1999)and Moghimi and Ramazan job satisfaction questionnaires. Structural equation modeling and partial least squares method using the software PLS were used for data analyzing. The validity of questionnaire was confirmed by using operating load and extracted average variance test value (AVE).also its reliability was confirmed by using combined reliability extracted from SEM.For model fitness the SRMR showed the desirability of model. Finally research findings showed that talent management and its components, that is talent attraction and talent development have impact on job satisfaction but the maintenance and protection components did not show meaningful impact. Also knowledge management showed meaningful impact in negative direction, of course among components only the impact knowledge maintenance was meaningful and other three components that is, knowledge creation, transfer and applying knowledge did not show meaningful relationship.
Keywords: Talent management, organizational knowledge, job satisfaction, employees, Azad Islamic University
 
Choosing Appropriate Advertising Methods to Attract Customers Based on the Regional Characteristics of Bank Shahr in Bandar Abbas Hometown
114-121
Shahbaz Barahouei and Zahra Mahmoudi

Abstract:
The evaluation of a brand, product or service depends on how it is perceived by customers. This in turn depends on the frame of reference which mainly comes from experiences. This study aims to choose the appropriate methods of advertising in order to attract customers considering the regional characteristics of Bank Shahr in Bandar Abbas Hometown. Hence, the Bank Shahr customers were considered as the study population among whom 200 people were randomly selected as the sample. The data collection tool used in this study was a researcher-made questionnaire and the collected information were analyzed using SPSS software and statistical tests. The results demonstrated that all hypotheses of the research were confirmed and quality perception is strongly related to actual purchase.
Keywords: Appropriate Methods of Advertising, Attracting Customers, Bank Shahr, Bandar Abbas Hometown.