International Research Journal of Finance and Economics
 Issue 115
 Oct, 2013
Foreign Ownership and Export Orientation: Evidence from Turkey
Gonca Atici and Guner Gursoy
The aim of this study is to examine whether and how foreign ownership affects export orientation of large Turkish companies in alliance with the increasing internationalization trends. Empirical analysis is based on the annual data of industrial companies listed in the Istanbul Chamber of Industry for the period of 2003-2010. This study intends to contribute to the literature by i) presenting the static effects of foreign ownership on export orientation and by ii) introducing the dynamic nature of export orientation. Empirical results reveal significant positive effect of foreign ownership on export orientation. Findings prove the dynamic nature of the export orientation. Moreover, dynamic analyses confirm the findings of static analysis that foreign ownership has an effect on export orientation with a positive sign. Large Turkish companies seem to organize their ownership structures in favor of foreign ownership to strengthen their export oriented position. We believe that this finding will contribute to the improvement of corporate governance system and macro-economic dynamics of the country in the long-run.
Keywords: Foreign Ownership, Export Orientation, Foreign Direct Investment, Static Analyses, Generalized Method of Moments, Turkish Companies
JEL Classification Codes: F10; F20; L60
Determinants of Capital Structure of Ghanaian Firms
Kwaku Tuah Osei, Thomas Adomah Worae, Godfred M. Aawaar and James Konadu Afolab
This paper investigates the determinants of capital structure using data from 33 listed firms on the Ghana Stock Exchange and non-listed companies spanning from 2003 – 2012. A multiple regression analysis of pooled-cross sectional and time-series observations was employed in the analysis. The results identify long term debt to be irrelevant component of capital structure of large unquoted and quoted firms in Ghana. The results further show that profitability, size, business risk and tangible assets positively correlate with the level of gearing of Ghanaians companies. Growth and tax have been found to have negative correlation with the level of gearing.
Keywords: Capital Structure, Financing Decisions, listed and non-listed firms, OLS Regression.
Capital Investment Decisions: Evidence from Lebanese Firms
Hassan Hamadi
Capital investment is extremely important because the decision made involves the direction and opportunity for the organization’s future growth. This paper investigates whether capital investments practices in Lebanon are consistent with the practices in overseas countries, in other words whether Lebanese managers tend to use sophisticated capital investments techniques when evaluating potential projects or prefer to rely on traditional and simplified techniques, taking into consideration differences in the size of the project, the size of the company, the industry the company operates in, and other factors that can directly or indirectly affect decision making process. The results show that Lebanese managers are using sophisticated and efficient capital investments techniques when making their decisions. Moreover, a relationship between the method used and different variables was detected such as the field of expertise This result is consistent with main theories which states that decisions should be based on sophisticated capital budgeting techniques.
Keywords: Capital budgeting, net present value, payback period, internal rate of return
Violent Conflict and Prospects of Economic Growth in Pakistan
Naila Tasneem
Many economies around the world have experienced political, social and economic turbulence post the financial crisis in 2007-08. Pakistan also continues to experience an economic downturn accompanied by low saving and investment levels, tax revenues and deterioration in human capital, infrastructure and property rights. This study will account for the role of violent conflict in explaining this declining trend in economic activity using a multiple regression model. The country experiences violence in various forms such as sectarian and ethnic killing, target killings, predator drone strikes, and the death toll has been rising. This situation has pervaded across the country and the results of the study indicate that violent conflict has adversely impacted the prospects of sustained economic growth as discussed above. Pakistan has a large demographic dividend and has physical proximity with two giant economies, China and India that have shown resilience and speedy recovery. Therefore the incumbent government should devise policies that help in curbing such violent conflicts to create an environment suitable for business activity. A sustainable economic recovery is only possible if the law and order situation does not exacerbate further and an investor friendly atmosphere is provided with reduced risk and uncertainty.
Keywords: Violent Conflict, Economic Growth, Political violence.
JEL Classification Codes: O10, O43
Factors Affecting Job Satisfaction in the Service Sector: Evidence from the Malaysian Fast Food Industry
Anantha Raj A. Arokiasamy and Abdul Ghani Kanesan Bin Abdullah
The purpose of this study was to investigate the factors affecting job satisfaction of employees at fast food outlets. Eight fast food outlets were targeted at Ipoh, Perak. Data was collected using a structured questionnaire based on the Minnesota Job Satisfaction Questionnaire (MSQ). The study showed that organizational factors like working conditions, pay, promotion and fairness significantly influenced employee job satisfaction in the fast food industry. However, individual factors such as age and gender did not significantly influence employee job satisfaction. The research provided a better understanding regarding the factors affecting job satisfaction in the fast food industry. The results can help managers to identify strategies to increase employee job satisfaction by increasing their motivation for the job performed thus leading to higher productivity.
Keywords: Job Satisfaction, working conditions, pay, promotion and fairness.
"Bai Al Arboun” A Shariah Compliant Alternative to Conventional Call Options
Omrana Siham and Aboulaich Rajae
“Bai Al Arboun” can become a basis for developing some kinds of Shariah compliant Options, contract by which one party buys the right to purchase from the other party specified goods for a specified price on a certain date. “Bai Al Arboun” can be considered near to Call Option in the sense that the seller does not return the premium or down payment to the buyer in case the latter does not exercise the purchase option and the buyer loses the option premium even if the option is exercised and the contract is confirmed. In case of “Bai al Arboun”, however, the option premium is adjusted in sale price when the contract is confirmed (Muhammad Ayub, (2003), Derivatives and Islamic finance).Thus, we will study the possibility of modelling “Bai Al Arboun” for pricing the amount of the deposit by adapting the model of Black and Sholes to Shariah rules.
Keywords: Islamic Finance, Shariah Compliance, Derivatives, Call Option, Black and Scholes model, Finite Difference Methods.
JEL Classification Codes: G12, C5, C6, C87.
Applying Fuzzy DEMATEL Method to Analyze Supplier Selection Criteria (Case Study: WagonPars Company)
Hosein Mohammadi, Iraj Nouri and Mohammad Ehsanifar
Searching for new suppliers is one of the continuous activities of companies in order to increase the variety and technology of products and this is due to the short term life of products. Furthermore, new products need to use new materials and technology. Nowadays because of the complexities in technology, analyzing and solving the supplier selection problem become more sophisticated and more dynamic. Depending on the purchasing situation, selecting the right suppliers is influenced by a variety of factors, so it is important to know which criteria should be used in order to choose the best approach that fits best company’s strategy. The 23 criteria presented by Dickson still covers the majority of the criteria presented in the literature nowadays, but the evolution of the industrial environment modifies the ranking of these criteria or adds others criteria that are considered important too. Furthermore, there are criteria more important than others depending on the process. In this study, we have used fuzzy DEMATEL method to determine the most influential criteria and to find out the ranking of most important criteria on supply selection problem.
Keywords: Fuzzy DEMATEL method, supplier selection criteria, visible structural model, industrial purchasing department.
Use of the Artificial Neural Networks (ANNs) to Guiding the Financial Decisions: Exchange Rate Volatility of Algerian Dinar
Boudjaada Lyes, Zeghdoudi Halim and Tlaidjia Noua
In the last decade, many researchers have used artificial neural networks (ANNs) to study and analyze the economics and finance problems. This paper deals with the application of artificial neural networks (ANNs) to guiding the financial decisions. More precisely, we give an extensive bibliographic overview of the application of the artificial neural networks (ANNs). To this end, we made an application relates to the exchange rate volatility of Algerian dinar against the Euro and U.S.Dollar.
Keywords: Neural network, ANNs, Exchange rate volatility, times series, forecasting.
JEL Classification Codes: C15, C32, C45.
Youth Unemployment in Tunisia: Underlying Trends and an Evaluation of Policy Responses
IIham Haouas, Edward Sayre and Mahmoud Yagoubi
This paper examines the labor market conditions facing young people in Tunisia from 1984 to 2010. We analyze a whole plethora of labor market reforms and policies applied by the national central authorities and conclude on their efficiency. Three major findings. First, we highlight that despite primarily affecting Tunisian youth, in the long term unemployment outlines as a serious threat to job prospects for all ages highly educated individuals. Thus, Tunisia must fill the gap and provide a larger number of jobs that allow more educated workers to prove their skills. Second, there are an increasing number of young Tunisians in school, which means that they will be most impacted by the weak conditions of the job market. For highly educated youth, the unemployment rate is over 50%. Finally, our evaluation of the active labor market policies and labor market reforms of the 1990’s show a high inefficiency level of Tunisian government efforts to improve labor market parameters. Under these conditions, two elements became crucial: 1) the need to support macroeconomic environment and 2) the educational system needs to focus on producing skills rather than credentials in order introduce young people in the private sector.
Keywords: Youth Labour Market, education system, Unemployment, Tunisia
JEL Classification Codes:J21, J13, I21, E24.
The Impact of Organizational Role Stress on Role Satisfaction
Venkatesh. J and Prasad.H.K
Stress refers to an individual’s reaction to a disturbing factor in the work environment. Stress is an adaptive response to an external situation that leads to behavioral deviations for the individuals. Human resource is the primary capital and all other tangible assets are secondary. Stress is a part of everybody’s life. Stress can cause poor work performance and lower employee morale. This paper focuses on the work related stress, Organizational Role Stress, Role and Job Satisfaction and its impact. The results clearly indicate that organizational factors such as role ambiguity and absence of role authority, role overload and lack of leadership support and role stagnation and mismatch are the major stressors. Stressful situations also have a negative impact on the quantum of work. This article focuses on the relationship and impact between Organizational role stress and role satisfaction. The determinants of role stress that have been examined in this article, management role, relationship with others, workload pressure, role ambiguity, role conflict and performance pressure of an individual in the organisation.
Keywords: Organization, Role Stress, Role Satisfaction, Stress Management, Work Pressure.
Equity Mutual Fund Performance Appraisal: A Data Envelopment Analysis Approach
Saâd Benbachir and Achraf Louati
In this paper, we apply Data Envelopment Analysis to appraise the relative performance of 60 equity Moroccan mutual funds in tree one-year holding horizons 2010, 2011 and 2012 and in tree-years holding horizon 2010-2012. We choose the Beta parameter, the subscription costs and redemption costs as inputs on the one hand, and on the other hand the average return and the modified Sharp index as outputs. Our empirical findings show the advantages of the DEA model compared to traditional performance measures. Additionally to providing the mutual fund performance ranking, the DEA model afford also a making-decision tool to fund managers permitting them the use of target-inputs in order to reach their performant benchmarks.
Keywords: Relative performance, Data Envelopment Analysis, DEA-efficiency frontier, input-oriented model, Moroccan mutual funds, Target inputs
JEL Classification Codes: C61, G11, G20, G23,
Determinants of Profitability – A Comparative Analysis of Islamic Banks and Conventional Banks in Asean Countries
Ahmed Nazri Wahidudin, Ulaganathan Subramanian and Abd. Mutalib Kamaluddin
The profit and loss sharing system allows bank to share risk with client in Islamic banks. Moreover Islamic banks are required to operate as per Islamic Rules and principles. Unlike Islamic banks, conventional banks operate based on interest. The income of conventional banks is the difference between interest paid to depositors and interest paid by borrowers. This is the common banking system around the world. This study will analyze determinants of profitability in Islamic banks will be compared to conventional banks in ASEAN countries. This study will aim to present an empirical investigation on ASEAN Islamic and conventional banks. The study of profitability will look at different banking characteristics such as Short term fund management, Source management, capitalization, liquidity, size and Macro- economic conditions.
Keywords: : Islamic Banks, ASEAN Countries, Profitability.
Effect of Service Quality, Customer Satisfaction and Customer Value on Trust and Customer Loyalty
Ishak Awaludin
Regional Water Company (PDAM) Kendari is a local government-owned companies. In operation as a public service institution dealing with clean water, PDAM should be managed based on the principle of economic benefits and social benefits. As a company that produces products in the form of clean water, Service Quality is an important aspect in achieving corporate goals. However, service quality is influenced by various aspects of services related to customer satisfaction. As a company holding clean water to meet the needs of customers, PDAM should be consistent and provide sustainable water services to customers as a necessity in everyday life and play an important role in supporting the welfare and prosperity of the community. This research will be re-examined variables of customer loyalty that has been done, but there are differences in the results of the variable relationship by observing overall variables used by previous researchers. In addition, researcher wanted to see more models of direct and indirect relationships among the antecedent variables and loyalty. The results showed significant effect on customer quality, customer value and customer satisfaction. Customer value it self has significant effect on customer satisfaction and customer trust and ultimately customer loyalty is influenced directly by the customer confidence. On the other hand, it has been proved that variable customer confidence mediated the relationship Customer Satisfaction and Customer Value on Customer Loyalty. This means that by increasing customer satisfaction, it will be followed by an increase in Customer Loyalty if Customer Trust increased as well.
Keywords: Service Quality, Customer Confidence, Customer Loyalty, path analysis
Moderating Influence of Leadership and Organizational Culture on the Effect of Political Organization in Strategy Implementation
Local governments as autonomous regions have the right, authority, and duty to regulate the area and manage their own affairs and interests of local communities in accordance with the legislation. Regional autonomy is the embodiment of the meaning of decentralization as a whole. Decentralization is the delegation of authority by the government to the government of the autonomous regions to organize and manage the affairs of government in the system of the Republic of Indonesia. Variable in this research is a political organization, transformational leadership, organizational culture, strategy implementation and want to test the effect of moderation and Transformational Leadership Organizational Culture on Political Organization Influence the Implementation Strategy. The results showed that the Organization of Political significant positive effect on the Implementation Strategy, Organizational Culture positive significant effect on the Implementation Strategy, Transformational Leadership significant positive influence on the Implementation Strategy, there is a moderating role of organizational culture on Political Organization impact on the implementation of the strategy, and also the moderating role of transformational leadership Political influence of the organization on strategy implementation. This indicates that the variable Transformational Leadership and Organizational Culture proven to be a moderator variable that strengthens the influence of politics on Implementation Strategies Organization.
Keywords: Political Organizations, Transformasional Leadership, Organizational Culture, Strategy Implementation, Moderating Regression Analysis.
Job Satisfaction Mediation on the Effect of Organizational Culture and Employee Competence on Employee Performance (Research in Regional Owned Enterprises Papua Province)
Yanuarius Resubun
In such a decentralized environment nowadays and accompanied with the process of democratization, many dramatic changes have occured. For organization or Regional Owned Enterprises, decentralization had become a challenge and need to be well anticipated. The success of local government in the long run not only rely on people's satisfaction with the service provided, but also being bond, participation and support of the community and existing companies. The independence of the region in order to manage the development needs serious attention in the future. The achievement of this goal can not be separated from the performance of the implementing agency spearheading the development of critical success. This research examined the mediating effect of Job Satisfaction on the influence of Organizational Culture and Employee Competence on the Employee Performance of Unit enterprises in Papua. The analytical method used is path analysis with Sobel test to determine the mediating effect of job satisfaction. The results of this research indicate that Job Satisfaction became variable which was partial mediation on the influence of Organizational Culture on Employee Performance. The higher the value of Organizational Culture with higher Job Satisfaction mediation will increase Employee Performance. Job Satisfaction became variable that is full mediation on the influence of the Employee Performance Employee Competence. The higher the value of mediation Employee Competence higher job satisfaction, increase Employee Performance.
Keywords: Organizational Culture, Regional Owned Enterprises, Job Satisfaction, Employee Performance