International Research Journal of Finance and Economics
 Issue 114
 Sep, 2013
Relationship Satisfaction with Quality Service Trust and Loyalty (Studies on the Mode of Railway Transportation in East Java)
Bambang Irawan
The purpose of this study is to prove the impact of service quality on satisfaction with ROPMIS indicators, impact of service quality with ROPMIS indicator of loyalty, the impact of service quality on trust ROPMIS indicators, the effect of satisfaction on loyalty, satisfaction effect on trust, loyalty and confidence effects. Samples are users Pearl Executive Class Train Service East. Sampling technique was purposive sampling. The sample was 120 respondents. The analysis uses Structural Equation Model (SEM) using AMOS 6.0 program. The research variables are service quality, satisfaction, trust, and loyalty. The analysis showed that the resources, satisfaction of service quality, perceived risk, and purchase again be the strongest indicator as a variable. In fact, service quality has a positive effect on loyalty directly or even indirectly through satisfaction and trust. Satisfaction is an intervening variable that mediates the effect of service quality on loyalty through satisfaction and trust.
Keywords: Quality Service, Trust, Loyalty
The Effect of Organizational Learning, Organizational Culture and Job Satisfaction on Organizational Commitment
Wilson Bogar
The purpose of this research is to analyze and explain the effect of organizational learning and organizational culture on job satisfaction and organizational commitment. This research is explanatory research. Samples are taken by stratified random sampling and the sample size is 66 of 196 employees of Sitaro district secretary. Techniques of data collection are questionnaires and data path analysis. The results showed: (1) organizational learning has a positive effect on organizational commitment, (2) Organizational Culture has a positive influence on organizational commitment, (3) job satisfaction has a positive influence on organizational commitment, (4) Organizational learning has a positive impact on job satisfaction, (5) organizational culture has a positive effect on job satisfaction.
Keywords: Organizational Learning, organizational culture, job satisfaction, organizational commitment.
The Role of Service, Price, Promotion, Place, and Comfort on Customer Satisfaction and Switching Intention in Minimarket at Jember Regency
Diah Yulisetiarini
This research aims to analyze and examine the role of employee service, price, promotion, place, and comfort on customer satisfaction; it also examines the role of customer satisfaction on switching intention. The samples of this research are some of the costumers who had ever made shopping transaction on retail business at Indomaret and Alfamart in Jember Regency. The sampling technique utilizes non-probability sampling with purposive sampling technique. The sample are 200 customers of Indomaret and Alfamart. The analysis method employs Partial Least Square (PLS). The result demonstrates that employee service, price, promotion, and place influence customer satisfaction; except comfort, it has positive influence but not significant on satisfaction. It means that, no matter how the comfort is, it does not affect customer satisfaction. The finding says that comfort does not significantly influence customer satisfaction; furthermore, customer satisfaction does not have any significant effect on switching intention.
Keywords: Comfort,Employee service, Place, Price, Promotion, Satisfaction, Switching Intention.
Mediation Effects on the Effect of Achievement Motivation Education Needs of Entrepreneurship and Intention to Gender Stereotype Entrepreneurship
Bonifasia Elita Bharanti
In Indonesia, the world economic crisis and the rise in fuel prices worldwide carry a wide range of problems, including rising unemployment caused by the termination of employment by the company. In developing countries such as Indonesia and densely populated, more economic development process relies on small businesses and start my own business. Therefore encourage the development of independent entrepreneurship is one of the most important priorities in formulating public policies to accelerate economic growth and development. In this study, the effect will be studied further Mediation Needs Achievement Motivation on the Influence of Education Entrepreneurship and Gender Stereotypes on Intention Entrepreneurship. Approach path analysis results with Sobel test showed that the variable is not a need for achievement motivation variables that mediate the effect of the intense entrepreneurship Entrepreneurship Education, but an advanced variable that mediates the effect of gender stereotypes on Intention Entrepreneurship. This suggests the need for achievement motivation mediating the better, will increase the value of Intention Entrepreneurship.
Keywords: Path Analysis of Mediation, Sobel Test, Intention Entrepreneurship.
Mediation Effects of Organizational Culture on the Effect of Professional Experience Audit and Commitment to Ethical Decision Making
Regional Supervisory Agency (Bawasda) or the now more popularly known as the Inspectorate Provincial / District / City (hereinafter referred to as the Inspectorate) is an agency within the local government oversight, both for the level of provincial, district, or city, can take the lead in improving accountability and transparency in financial management in the area. However, until now the role is not yet to be seen. This role becomes very important because regional autonomy and decentralization puts the District and City as executive leader in the development. Many regions will receive an abundance of funds from the state budget revenue and expenditure (budget) such as, the general allocation fund (DAU) and special allocation fund (DAK). Therefore, the efforts to increase the effectiveness of the regional inspectorate for financial supervision in the region are crucial. In this research, it will be empirically tested variables influencing audit experience, professional commitment, and organizational culture in ethical decision making. The results showed that the Ethical Decision Making is significantly affected by the Audit Experience, Professional Commitment, and Cultural Organization. Meaning that the higher audit experience, professional commitment, and culture of the organization, the higher the ethical decision will be. Besides, Organisational Culture variable is a variable that influences to strengthen the relationship between Audit Experience and Professional Commitment to Ethical Decision Making. This indicates that organizational culture variables are variables that mediate the effect of Audit Experience and Professional Commitment to Ethical Decision Making.
Keywords: Audit Experience, Professional Commitment, Organizational Culture, Ethical Decision
Role of Outsourcing Strategies, Knowledge Management as Mediation in Effect of it Relatedness on the Performance of Papua Provincial Gernment Organization
Oscar O. Wambrauw
The use of information technology within an organization should consider the limited resources such as data, application systems, technology, facilities and human resources. Given limited resources, this is a major factor in the governance of the need for manual governing the use of information technology in organizations. The purpose of this research is whether outsorcing strategy and knowledge management serve as mediating the effect of IT relatedness to the improved performance of governance implementation in the province of Papua. This study took place at Government Agencies Regency / City and Bureau / Agency / Office of the Autonomous Province across the province of Papua. The population in this study are all institutions in the province of Papua, the sample size is 106 autonomous agencies Provincial and district / city in the province of Papua, the sample unit is 2-3 respondents each agency. Analysis techniques in penelitiani ni is Structural Equation Modeling (SEM) approach to testing mediation Sobel Test between variables. The results show that: (1) There is a mediation role in the IT outsourcing strategy for IT Relatedness influences on knowledge management, (2) There is a mediation role in the outsourcing strategy IT Relatedness effect of on organizational performance, (3) There is a mediating role of knowledge management in the IT impact Relatedness to organizational performance, and (4) There is mediating role of knowledge management in outsourcing strategy influence on organizational performance. These results imply that IT Outsourcing Strategy can determine Knowledge Management, therefore increasing role in shaping the IT Outsourcing Strategy in creating Knowledge Management will be very dominant. Level of integration, allocation of control, and performance period should be an option in developing IT Outsourcing Strategy. Strong Knowledge Management will increase the effectiveness of Organizational Performance. Embodies a strong Knowledge Management is an option to increase the output to be an effective organization. Knowledge Management is a good reflection can be realized from the good management skills in managing organizational knowledge resources to product, to customers, and the resources of the organization's managerial knowledge.
Keywords: Information Technology, Organizational Performance
Mediation Effects of Job Satisfaction on Leadership Style Toward Lecturer Performance Methods
F.X. Soewarto Citro Taruno
A well-implemented human resource management will give a sizeable contribution in achieving the goals of the organization and / or company. Phenomenon or symptoms of lecturer poor performance is detected that there is a root problem. The poor performance of the lecturer performance is not solely the fault of the lecturers, but due to lack of care and concern of the leaders, such as inadequate leadership style or lack of fit, less communicative and less harmonious organizational culture, less the well-being, less motivation, and lack of job satisfaction experienced by the lecturers. Some of these factors are thought to be poor because of faculty performance. In this research, it will be further studied the effect of mediation on the Job Satisfaction toward Leadership Style on the Lecturer Performance with Sobel test on path analysis. The results showed that leadership style significantly affects job satisfaction, but does not affect directly on lecturer performance. On the other hand job satisfaction affects lecturer performance. With the approach of Sobel test, it is obtained that Leadership Style affects indirectly on the Performance Lecturer through job satisfaction. This suggests that the job satisfaction will give impact of leadership style through lecturer performance. In other words, job satisfaction variable is a variable that mediates the effect of Leadership Style on the Performance Lecturer.
Keywords: Path Analysis of Mediation, Sobel Test, Performance Lecturer.
Measurement of Financial Efficiencies of the Trade Firms Listed on Istanbul Stock Exchange by Data Envelopment Analysis
Bayram Topal, Hakan Tunahan and Ahmet Selšuk Dizkirici
The purpose of this study is to measure the financial efficiencies of the selected trade companies listed on Istanbul Stock Exchange for the 4-year period of 2009-2012 by using Data Envelopment Analysis (DEA) over the financial ratios. As a result of the analyses, efficient and inefficient companies are determined. In addition to that, the potential improvement values are calculated for the inefficient firms.
Keywords: Efficiency, Data Envelopment Analysis, Trade Sector
JEL Classification Codes: G32, L25, L81.
Impact of Merger and Acquisition on Pre and Post Merger Leverage and Productivity in Banking Sector Firms: Evidence from Pakistan
Shehla Akhtar, Saiqa Sabeen Shahid, Rasheed Abbas and Qurrat ul Ain Yousaf
Globalization is the major trigger that pushes the companies toward the merger and acquisition. History is showing that an enormous development in mega mergers is the proof. The rationale behind the study is to identify the impact of merger and acquisition in banking sector of Pakistan. For this study we collected collect data from audited annual reports of merged banks in Pakistan. We have used correlation to measure the relationship between productivity and leverage of before and after merger and acquisition. The results of the study are that in mostly cases mergers shows positive result and after merger the efficiency of companies increase rapidly may be in form of assets, Revenues or reduction in debt level.
Keywords: Merger and acquisition, corporate world, intense globalization, productivity, leverage.
Corporate Portfolio Management: Developing A Modified Model
Hamed Vares and Zohreh Naseri Taheri
In the Strategic Management literature, there are seven portfolio models of corporate strategy including The BCG Model, GE/McKinsey model, Shell/DPM model, product-market evolution portfolio model, ADL Life-Cycle model, incorporating risk into the portfolio matrix, and the risk-return model. In this Article, through incorporating the corporate life cycle in a diagrammatic representation developed by the Boston Consulting Group in order to explain the concept of corporate portfolio management to senior managers of large groups. Therefore, for every stage of corporate life cycle, elements of corporate and financial strategy will explained.
Keywords: Strategic Management, Corporate Portfolio Management, Portfolio Models, Corporate Strategy, Financial Strategy.
The Valuation of Currency Options with Markov-Modulated Jump Risks
Szu-Lang Liao and Yu-Min Lian
In this paper, we study the valuation of European currency options when the dynamics of the spot foreign exchange rate are driven by geometric Brownian motions with Markov-modulated Poisson processes. Under such dynamics, the jump events are described as a compound Poisson process with log-normal jump size, and the regime-switching arrival intensity is governed by a continuous-time finite-state Markov chain. Since the market is incomplete, we present a framework for option valuation using the technique of Esscher transforms. After determining the Esscher parameters, we derive the analytical pricing formulas of European currency options under Markov-modulated jump risks.
Keywords: Currency Option, Markov-Modulated Jump Risk, Esscher Transform.
JEL Classification Codes: F31, G12.
Effect of Earning Quality on the Valuation of Free Cash Flow by Artificial Neural Network Approach
Ramin Ghorbani, Mohsen Rashidi Baghi, Ali Rahimi Baghi and Moslem Tahmasebi
Time changes of return, inefficiency studies performed and presence of effective factors on share retune rate are caused development modern and intelligent methods in estimation and evaluation of share return in stock companies. The aim of thisstudy isto predict therelationshipbetween stock returnsandfreecashflowconsidering theimpact ofearnings quality with artificial neural network approach. Therefore, the statistical population of this study includes 120 accepted firms in Tehran stock securities during 2005 to 2012. The obtained outputs from estimation of the artificial neural networks and results obtained from estimation, using of this method with evaluation scales are (MAE= 0.45 and MSE= 0.34, R=0.10).We found that there is meaning relation between the associated variables and share return. Consideringthe amount of (R) results showeda significant associationbetweenthe return and independent variables.Also, theresultsshowed that therelationshipbetween stock returnsandfree cashflowincompanywithhigher earning quality is significantlystrongerthanthecorrelationbetween stock returnsandfreecash flowinother companies.
Keywords: Earning Quality, Prediction, Artificial Neural Networks, Free Cash Flow
JEL Classification Codes: M40, M49
The Evaluation of Regulatory Compliance: The Case of Securities Brokers and Dealers in Thailand
Sid Suntrayuth
The study investigatesthe successof regulatory implementation by way of the attempt to understand the concept of regulatory compliance.Regulatorycompliance generally refers to the adherence by the regulated entities to rules and regulation outlined by the authority. Due to the characteristic of financial regulation, regulatory compliance considered to be the integral of its regulatory process. The result of the study found all of the variables which namely are knowledge and understanding with the regulation, ability to comply with the regulation and willingness to comply with the regulation to have relationship with the effectiveness of securities brokerage regulation implementation and hence the higher level of regulatory compliance. The success of the regulatory implementation should direct towards the willingness of the target group to comply with rules and regulation prescribed by the supervisory agency. The supervisory agency and the implementers of financial regulation should consider on the improvement of the communication process between the regulator and the regulated entities. The attention towards the relationship between the supervisory agency and the target group considered to be the central of the financial regulatory process.
Keywords: Regulatory Compliance, Securities Brokers and Dealers, Regulatory Implementation, Effectiveness of Securities Brokerage Regulation Implementation.
R&D Increases and Free Cash Flow -Evidences from an Emerging Capital Market
Yih-Bey Lin, Jian-Fa Li and Cheng-Yih Hong
The present study investigates whether top managers pursue their private benefits in terms of research and development (R&D) increases. The characteristic-based benchmark portfolio and the Fama-French three-factor model are employed to explore the impacts of the unexpected increases in R&D on stock returns for 936 firms listed on the Taiwan Stock Exchange. The empirical results show that R&D increase is a favorable investment. However, its abnormal stock returns are diminishing as the extent of increases in R&D unexpected expenditures enlarges. It is consistent with the free cash flow hypothesis.
Keywords: R&D, Free Cash Flow, Characteristic-based Benchmark Portfolio Fama-French Three-factor Model
JEL Classification Code: G11, G35, O32
Foreign Direct Investment, Export and Rural Educational Attainment in China
Hong Zhuang
Despite that a large number of previous studies have examined the relationship between multinational corporations and exporting firms and the demand for skilled labor in developing countries, the macro study on the effects of foreign direct investment (FDI) and export on skilled labor formation is rather limited. This paper differentiatesthe impact of FDI and export on rural educational attainment using Chinese provincial data over 1985-2000. The findings show that inward FDI exerts a positive effect on rural attainment in tertiary education, while export is nonlinearly associated with an increase in rural attainment in secondary education.
Keywords: Foreign Direct Investment, Trade, Educational Attainment, Human Capital
JEL Classifications Codes: F10, I2