International Research Journal of Finance and Economics
 Issue 171
 January-February, 2019
Effect of Knowledge, Commitment and Conflict Behavior on Work Satisfaction (Study on the National Budget Compiller Team in Districts / Cities in East Java Province)
Indra Prasetyo

Modern organizations are currently divided into many departments or work units, this is due to the need to be able to divide up the work in order to be able to provide products and or services in accordance with what is needed by stakeholders.Although separate in various departments or work units, the organization must be able to coordinate all its activities. Therefore, continuous coordination is needed. One solution is to do a process approach.Processes in organizations are a set of tasks that are jointly and only jointly transformed from input to output (Garvin, 1998). Based on this understanding, the transformation from input to output within the organization requires interaction between individuals from each department and between departments. These interactions are likely to cause conflict between individuals in the organization. The conflict arises as a behavior or response from the individual as a result of disagreement or the potential for disagreement by other parties in achieving their needs or desires.
Keywords: Conflict, Work System, Organization, Job Satisfaction
Forecasting the General Index of Dhaka Stock Exchange
Mina Mahbub Hossain, Asif Imtiaz and Md. Rakibul Hasan

The Dhaka Stock Exchange (DSE) is an emerging stock exchange located in the capital city of Bangladesh. This present study focuses on finding a predictive model for the DSE general index. According to the Box-Jenkins methodology, ARIMA (2, 2, 1) model was found well fitted from a set of different possible ARIMA models. But the diagnostic tests such as ACF plot of residuals, standardized residual plot, shows that our model forecasts mean of the series pretty good though, we need to consider the volatility of the series to get the more accurate forecast of the data set. Conditional variance model, eGARCH (1, 1) was found as the best fits to our DSE data. The R package rugarch is used to fit the model.
Keywords: DSE, General Index, ARIMA, Volatility, ARCH, GARCH.
JEL Classification: G17; C580
Terrorism and Stock Market Performance
Zouhaier Hadhek, Sonia Halfaoui and Mosbah Lafi

Our study examines the long term impact of terrorism on stock market performance. we focus on 12 stock markets exchange which will be classified into three categories (developed, emerging and frontier market) over a 8-year period (2008 to 2015) and by using fixed-effect panel regression model where the MSCI Standard Total Return Index for each country in the sample as proxy to stock market performance and the global terrorism index (gti).we deduce that: Confirmed to the finding of previous researches, terrorism has an immediate an short term negative impact on all the stock market return and developed markets benefits by a positive stock return for emerging market we found that terrorism has a significant negative impact on stock performance. For frontier markets, the stock market return has no correlation with the terrorism impact; that is means each terrorism score given to these markets, the stock market reaction will be indifferent in the long term.
Keywords: Terrorism, stock market performance, long term impact, Developed, emerging, frontier stock market.
JEL Classification:
Drivers of Domestic Private Investment, Role of Foreign Direct Investment and Economic Growth in Frontier Markets
Josephine Ofosu-Mensah Ababio

This paper examines the major constraints hindering domestic private investment, the nexus among domestic private investment, foreign direct investment and economic growth in frontier market nations. It employed the dynamic panel generalized methods of moments (System-GMM) approach. The paper finds that access to finance, infrastructure, corruption control and manageable inflation rates are the important drivers of domestic private investment. On the contrary, it observes that cost of finance and governance factors thwart domestic private investment participation and its smooth thrive. It further documents that foreign direct investment and domestic private investment have a one-way directional effect, and validates a bi-directional relationship between domestic private investment and economic growth. The findings of the study imply that domestic private investment thrives in the presence of ready access to finance, good infrastructure in the form of energy and telecommunication, well-managed inflation, and the ability to control corruption. However, it is obstructed by a high cost of finance, the inability of the government to formulate and implement sound policies and regulations, and ensure confidence in and acceptance of laws. Policy-makers of frontier markets should therefore, ensure FDI inflows are well-monitored to protect domestic private investors as they play an important spillover role in the process of economic growth.
Keywords: Domestic Private Investment, Key Constraints, FDI, Economic Growth, System_GMM, Frontier Markets
Does a Good Investment Opportunity Reduce Cost of Equity Capital for Multinational Corporations?
Wen-Gine Wang, Andrew Wang and Yu-Cheng Chen

This research mainly investigates that whether a good investment opportunity can reduce the cost of equity capital for multinational corporations. We use the sample of global corporations across over 21 countries from the period 2002 to 2014. The results indicates that the cost of equity capital may be increased for multinational corporations when geographic diversification strategy is adopted; however, the cost of equity will be decreased once the good investment opportunity arrives, that is, the corporations will have greater competitive advantages in the near future and then lower the cost of equity capital. The findings demonstrate that the benefits of good investment opportunity outweigh the losses of geographic diversification and then improve the cost of equity capital for multinational corporations.
Keywords: Investment Opportunity Set, Geographic Diversification, Cost of Equity Capital.
JEL Classification: G32
How Real Option Theory Has Gained Space in Research and Practice - An Overview of the Last Four Decades
Vivien Csapi

In the last 40 years real options theory has been, with its empirical findings and qualitative reasoning a constant driver of strategy research, whether if it dealt with market entry timing, choice of organizational forms, foreign direct investments, or the cooperation vs. competition trade-off. Yet, the understanding and application of real options still comes with challenges not even in the strategy field, but also in its original discipline of investments. With this paper the author tried to build a strategic framework for the application of real options, with the aim of giving the theory a strategy based logic and trying to solve the chaos of the case-by-case type of application of research and practice. To confirm the stability of the framework, after showing the process of real option creation, valuation and management, a more than 1000 article based literature survey was conducted. This shows that the strategic direction is a must for practitioners and researchers also, and highlights future research areas like the portfolio based approach of real options, or a need for a general valuation model.
Keywords: Real options theory, discounted cash-flow, valuation, strategic management.
JEL Classification: G11, G12, G32