International Research Journal of Finance and Economics
 Issue 157
 December, 2016
 
Determinants of Capital Structure of Listed Firms in Ghana: A Comparative Study of Financial, Manufacturing, and Retail Firms
7-24
Maxwell G. Asiedu, Eric Nkansah and Godfred M. Aawaar

Abstract:
The study examines the determinants of capital structure of companies listed on the Ghana Stock Exchange. The variables of profitability, size of a firm, asset tangibility, firms’ growth prospect, liquidity, and the age of the firms were identified as the major determinants of capital structure. We use cluster robust standard errors to estimate the parameters, in order to deal with the issues of heteroskedasticity, multicollinearity and autocorrelation inherent in the panels. Fixed effect was largely found to be appropriate in fitting the models. We document that profitability, tangibility of assets, growth prospects and liquidity of firms are negatively or inversely related to leverage. Firms’ size and the age of firms however, show positive relationship with leverage.
Keywords: Capital structure, profitability, Ghana Stock Exchange, Manufacturing industry, Leverage, Fixed effect, Asset Tangibility
JEL Classification: O14
 
 
Investigating the Impact of Organizational Citizenship Behaviors on the Effectiveness of Recommendation System in Sepah Bank Branches in Hamadan Province
25-36
Zahra Farsi Joukar, Zahra Shirazian

Abstract:
One of the major issues associated with employees working behaviors which service organizations and banks are not considered or less care, is reinforcement of employees’ organizational citizenship behaviors for their effective communication and involvement. Suggestion system is a powerful tool for organization internal and continuous upheaval, it also leads to public engagement of staffs. Furthermore, the present study is done to determine the impact of organizational citizenship behaviors on the effectiveness of recommendation system in Sepah Bank branches in Hamadan province. The applied study was a kind of survey and in terms of data collection it was a descriptive research which is done during the first half of 2016. The sample size was selected using Morgan table from all the branches of Sepah bank in Hamadan province that 191 person participated in the study. Sampling method was stratified proportional sampling. Two organizational citizenship behaviors and suggestion system questionnaires were used to collect data. Validity and reliability of questionnaires weighed up. In order to analysis of research assumption, Smart PLS and SPSS were used. Results of the study indicated that organizational citizenship behaviors have a positive and meaningful impact on the effectiveness of recommendation system in Sepah Bank branches in Hamadan province. Also results of other research hypothesis showed that components of organizational citizenship behaviors such as altruism, work ethic, chivalry, civil behavior and courtesy have a positive and meaningful influence on the effectiveness of recommendation system in the branches of this bank. Given that the organizational citizenship behaviors are one of the important factors affecting recommendation system, it is suggested to consider the organizational citizenship behaviors in banks.
Keywords: Bank, Organization, Citizenship behavioral, Recommendation system, Effectiveness
JEL Classification: G21
 
 
Using PLS Path Modeling to Investigate Stability of Financial System in V4 countries' Welfare
37-63
Juan José García-Machado and Agnieszka Jachowicz

Abstract:
On one hand, the financial system in the European Union is being gradually equalized, but on the other hand, it is complicated. All 28 countries are national financial systems with financial institutions and competitions. This paper is focused on 4 countries: Czech Republic, Hungary, Poland and Slovakia, which build the “Visegrád Group”. These countries have gone through many system changes since 1989 and they had to adjust their financial system to the Union’s recommendations. In this paper we estimate a PLS path model to study how the V4 countries’ Financial Systems work in benefit of the economic welfare of its citizens. With a statistical power of 80%, the R2 for the final model proposed was 81.3%, and the algorithm converged after iteration 12, what is found a quick and stable solution. In our opinion, this study provides important and usable information to the V4 countries’ policy makers.
Keywords: Banking System Quality, Financial System Efficiency, PLS-SEM, Path Diagram, Measurement models, V4 countries.
JEL Classification: P4, E4
 
 
Investigation of the Relationship between Social Capital, Innovation and Economic Growth
64-72
Hossein Zanganeh, Dr. Amir Heratmandi

Abstract:
In the new theory of economic growth, one of the most important factors influencing growth factor is innovation. Lack of innovation is one of the main causes of low economic growth in developing countries, And as long as these countries use science and knowledge, and increased innovation, training and professional skills have not improved the productivity and efficiency of labor, capital levels remain low and economic growth is reduced. Innovation through human capital and physical capital also helps increasing productivity. The main idea of innovation theory, based on this fact is that innovation boosts production by increasing the capacity of individuals ultimately increase economic growth. Innovation through human capital and physical capital also helps increasing productivity. The main idea of innovation theory, based on this fact that innovation increases production through increased productivity of people and ultimately increasing economic growth. In this study, using the vector approach describes the relationship between economic growth, innovation and social capital, and then using Johansen-Juselius co-integration strategy, long-term relationship between the variables is estimated. Data analysis is done with the help of econometric softwares. 1360-1392 was the period under review. The results showed that the average years of schooling, physical capital and research and development expenditure has a positive impact and the social capital index negative effect on economic growth.
Keywords: Economic Growth, Social Capital, Autoregressive, Innovation, Foreign Direct Investment,
JEL Classification: C33, G32
 
 
Reviewing Effects of Intellectual Capital on Financial Performance (Case Study of Mutual Funds in the Tehran Stock Exchange)
73-84
Mahmoud Zarei and Hamidreza Reisizadeh

Abstract:
Nowadays, development and management of intellectual capital has become a important requirement at macro level and in national business and by moving towards a knowledge-based economy has led to a paradigm shift ruling in industrial economy, so that it can be witnessing emergence of knowledge-based economy that is based on intellectual capital. Aim of this study is to evaluate effect of intellectual capital on financial performance of investment funds in the Tehran Stock Exchange. For this purpose impact of three dimensions of intellectual capital on financial performance in investment funds examined. In this study, a questionnaire was used to collect data and its reliability determined by Cronbach's alpha. The results showed a positive and significant effect of three dimensions of intellectual capital on financial performance in investment fund.
Keywords: intellectual capital, financial performance, human capital, structural capital, relational capital.
JEL Classification: E22, E24, J24
 
 
Investigating the Sticky Behavior of Costs in Companies Listed by Tehran Stock Exchange (2011-2015)
85-91
Leila Salari, Mohamreza Khezripour, Hamid Naseri and Fatemeh Rasaei

Abstract:
One of the most important management accounting assumptions shows that changes in costs are related to increased and decreased level of activities. Recently, this issue has been investigated and discussed by Anderson et al., (2003) through proposing stickiness of costs. In other words, increased costs with increased activities are higher compared to decreased costs regarding decreased activities. This study aimed to study sticky costs in Tehran Stock Exchange (TSE) during 2011-2015. Indeed, administrative, general and selling costs were studies as the samples. In other words, the main purpose of this study was to answer the following questions: 1) are the administrative, general and selling costs sticky? 2) if the costs are sticky, how much is the stickiness of costs? The results of this study that are according to companies listed by TSE for a period of five years during 2011-2015, indicated that by 1% increase in sales revenue, the administrative, general and selling costs increase by 2.3%. One percent decrease in these costs is the result of 1% decrease in sales revenue. For companies that have bigger total assets to sales, higher degrees of stickiness is not observed.
Keywords: administrative/general/selling costs, sticky costs, degree of stickiness of costs.
JEL Classification: D2, D24
 
 
A Structural Equation Model for Analyzing the Impact of Hardiness on Productivity using AMOS
92-98
Nazanin Zahra Sotoudeh, Shahram Fattahi and Jalil Karimi

Abstract:
Hardiness is considered as the effort and perseverance we use in business and job to achieve development and success while the productivity is a rational attitude toward life and business with the aim of making practices smarter for achieving a better and more active life. The current study aims to analyze the impact of hardiness on productivity using structural equation model in different occupations of Kermanshah city, Iran. The results of path analysis show that physical health, mental health, selling rate and risk-taking have a direct, significant and positive effect on hardiness. Physical health, mental health, cultural capital, working time, risk-taking and hardiness have a direct and significant effect on productivity. In addition, physical health, mental health, risk-taking and selling rate, have an indirect effect on the productivity.
Keywords: Structural Equation Model, Hardiness, Productivity, Cultural & Economic Factors
JEL Classification: C3,Z1
 
 
Determinants of Central Bank Transparency Revisited
99-109
Christoph S. Weber

Abstract:
This study addresses the question of which factors lead to changes in central bank transparency. The analysis shows that there is some time trend towards higher transparency and that countries adopting Inflation Targeting increase their central banks’ transparency. Also central bank independence is positively related to central bank transparency. We also confirm the role of financial and economic development. Surprisingly, past inflation is related to lower transparency. On the other hand, higher unemployment rates are connected to increases information provision. Furthermore, we find that more liberal countries also have more transparent central banks. Apart from that, some other economic and political variables seem to be influential.
Keywords: Central Bank Transparency, Inflation Targeting, Central Bank Independence, Institutions.
JEL Classification: E42, E58, E52
 
 
Corporate Governance and the Level of Compliance with International Accounting Standards (IAS-1): Evidence from Bahrain Bourse
110-122
Dr. Abdalmuttaleb M.A. Musleh Al-Sartawi; Fatema Alrawahi and Zakeya Sanad

Abstract:
Harmonization of financial reporting standards reduces information asymmetry and improves the confidence of users of financial information while making decisions. Similarly, corporate governance enhances the transparency of financial information through reducing agency conflicts. Moreover, in order to increase the confidence of investors, attract prospective investors and reduce conflict of interests, Bahrain encourages firms to adhere to both the International Financial Reporting Standards and Bahrain’s Code of Corporate Governance. Accordingly, the purpose of this paper is to investigate the relationship between corporate governance and the level of compliance by 39 firms listed on Bahrain Bourse with International Accounting Standards (IAS-1). The results indicate that the level of corporate governance applied in Bahrain listed companies was 72.5% and it has a significant relationship with the level of compliance with IAS-1 disclosure. The findings and recommendations presented in this study might support regulatory bodies and standard setters in Bahrain to formulate strategies that would promote compliance with IFRSs by the listed firms. Additionally, the study contributes to financial reporting literature relating to the GCC countries.
Keywords: Harmonization, Corporate Governance Level, Compliance, IFRS, Bahrain.
JEL Classification:G34,M41
 
Dynamical Hurst Exponent for Time Series: Application to Exchange Rate Index
123-132
Zine Elabidine Guennoun, Youness Laaroussi and Radouane El-khchine

Abstract:
The Hurst exponent H, originally developed by Edward Hurst in hydrology, is used as a measure of long-term memory for time series. Using this index, taking values between 0 and 1, we can classify time series into three types: long-term positive autocorrelation process when H ranges between 0.5 and 1. For H in ]0, 0.5[ the series is characterized with long-term switching between high and low values in adjacent pairs. Otherwise, the series is completely uncorrelated when H=0.5. Given its importance, a variety of techniques are developed to estimate Hurst exponent in a static way, Yet, this approach does not seem to be realistic enough because it signifies that the roughness of the series path remains everywhere the same. In order to overcome this drawback, a dynamical implementation of Hurst Exponent has been proposed in this paper. Indeed, we compare DMA and Wavelet estimators of H to choose the one to adopt in the algorithm we develop based on a weighted average of Hurst indexes computed using a moving time window. As application, we estimate the dynamic Hurst exponent for an important economic series for Moroccan economy, which is the United States Dollar (USD) to Moroccan Dirham (MAD) exchange rate.
Keywords: Hurst Exponent, Time series, Moving time window
JEL Classification: C13,C14, C15, C60, F31