American Journal of Economics and Business Administration
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Open Access journal
ISSN (Print) 1945-5488
Published by Science Publications [28 journals]
- Monetary Policy in a Markov-Switching VECM: Implications for the Cost of
Disinflation in Ghana
Abstract: Monetary policy assessment in Ghana has been conducted using vector auto-regression. This however, presumes stability of long run outcomes and particularly ignores monetary policy regime changes that has characterized the economy overtime. This study thus introduced the possibility of switches in the long run equilibrium in co-integrated vector auto-regression by allowing both the covariance and weighting matrix in the error-correction term to switch. The study did not find any significant difference in monetary response in the different states. However, significant difference was obtained for the cost of disinflation across states. Though, disinflation cost has declined as the Bank of Ghana shifts from monetary targeting to inflation-targeting regime, overall cost is still high. This has implication on disinflation policy given the development agenda pursue by the country.
- Study on the Relationship between International and Domestic Grain Prices
in Developing Countries—An Application of Markov-Switching
Abstract: This study aims at estimating the influence of international grain prices on the domestic grain prices in 24 developing countries using a nonlinear model, Markov-Switching Autoregressive model. The results indicate that international grain prices have a positive influence on domestic grain prices before and during/after the grain price-hikes, while the degree of influence may vary depending upon grains and countries. Overall, the influences of the international grain prices on domestic grain prices during/after the price-hikes are less than before in those countries where rice or maize are staple food such as for rice in Benin, Cameroon, Niger and Tunisia and for maize in Chad, Guatemala and Nicaragua; however, the influences are generally larger than before the price-hikes for those countries where wheat is staple food such as Armenia, Georgia, Mauritania and Pakistan. For the effects of domestic prices in previous periods, they had a positive influence on current domestic grain prices in most of the countries in this study.
- The Importance of Product Innovation in Driving Brand Success: An
Empirical Study on Automotive Industry
Abstract: Nowadays, business markets are characterized by high competition and therefore, reinforcing brand success is one of the challenging tasks for organizations. One of the key indicators of brand success appears in an organization’s ability to form strong brand equity. Previous literature reported that consumers form decisions based on their perceptions of added values and unique offerings of a brand. Among the key factors that ensure value embeddedness and attractive offering is product innovation. However, despite the importance of product innovation in driving brand success and competitiveness, but there are very limited researches that investigated its link with brand equity. Therefore, this paper is designed to test the association between product innovation and brand equity in Malaysian automotive industry. The data were gathered using a survey method from a sample of 287 passenger car users in northern Malaysia. The outcomes of this study showed that product innovation had significant positive relationship with brand equity. The findings also confirmed that product innovation has significant positive relationship with all elements of brand equity; namely brand awareness, brand loyalty, brand image and brand leadership. These findings open avenues for future studies to further examine the role of product innovation in driving brand equity and competitiveness with regard to different brands.
- The Place of Transport Infrastructures among the Economic Factors of
Foreign Direct Investment Attractiveness in the Meda-10 Region
Abstract: This article aims to evaluate the contribution of transport infrastructures to improve the attractiveness of the Foreign Direct Investment (FDI) in the countries of the MEDA-10 region. The present article is formed by two sections. In the first one, we have a theoretical study of the FDI attractiveness and an explanation of the transport role among the territorial attractiveness factors. In the second section, we represent the empirical study. The obtained results, by using an econometric model with panel data, showed that the traditional determinants of FDI (GDP, economic openness level, inflation, exchange rate ...) have the most significant influence on the international investors’ decision. Also, transportation has a significant influence and it is considered as a new important factor of FDI attractiveness with strategic issues that cannot be avoided.
- Linking the Balanced Scorecard to Organizational Shareholders’
Abstract: The Balanced Scorecard (BSC) has been proposed as a near-panacea for the strategic management ills that may beset an organization. However, the strategic implications of internal and external performance measurement have not been demonstrated as reliable either for a sample within one industry or across industries. This study proposes a new model that translates the BSC from a three-part internal and one-part external performance measurement system into a comprehensive measurement system that includes stakeholders’ a priori expectations and that merges those expectations with performance measurement systems that will enable organizations to satisfy the often exclusive expectations of all stakeholders.
- Withholding Certificates and Self-Certifications under FATCA-Part II
Abstract: This review article analyzes and explains the formal requirements for a withholding certificate (or any acceptable substitute) to be valid under the Foreign Account Tax Compliance Act (FATCA). It is an addition to the already published article “Withholding Certificates and Self-Certifications under FATCA”.
- An Investigation for Electronic-Management Use in Educational Projects
Management (A Case Study in AL Baha-KSA Area)
Abstract: This study aims to test the possibility of switching toelectronic management in Albaha educational projects management. Investigationtrial uses descriptive analytical method with a survey. The sample was (74) questionnairesof participants. Individuals of the sample agree with the importance ofapplying electronic management. With automation management reports will beavailable immediately; transactions between administrative levels ofconsultants and contractors will be easier, cutting effort and time andincrease accuracy. The study’s results also show the urgent need for providingto apply the electronic management and present the obstacles that may happen.This study found a significant difference between educational projectmanagement and the possibility of transforming to electronic management. Thisstudy recommended launching a strategic plan for educational projectsmanagement are in Albaha, this can be achieved by backing of higher leadershipin ministry of education; providing financial needs; providing Internetservices to all sites of projects implementation; preparing training courses;workshops and meetings to spread the culture of electronic management amongemployees and raise their awareness about electronic management.
- The Effect of Diversification of Banking Products on the Relationship
between Market Power and Financial Stability
Abstract: In the context of financial liberalization, increased competition has spurred financial institutions to develop new products and new activities in order to meet demand, market development and increased competitiveness. This has made the relationship between market structure and financial stability more complicated and its study through the channel of diversification remains an unexplored area. The purpose of this paper is to test the interaction between market power, diversification and financial (in) stability. To this end, we examine a sample of 18 countries in the MENA region and 157 commercial banks during the period 2000-2013. Supporting the "competition-instability" hypothesis, our results revealed that low market power banks in the MENA region are less robust and more unstable when they less or poorly diversify their activities. Moreover, financial instability in this sector may result from a fierce competition among banks born from the desire to distinguish themselves by offering various nontraditional products, for which banks lack the experience to control its risks.
- The Impact of Family Size on Savings and Consumption Expenditure of
Industrial Workers: A Cross-Sectional Study
Abstract: The present study investigated and analysed the impact of family size on monthly savings and consumption expenditure of the industrial workers. The results showed that with increasing household size, savings not only dwindled in absolute terms but also in relative terms as witnessed by decreasing saving to income ratios. Conversely, the consumption to income ratios witnessed an increasing pattern, which is indicative of income being diverted away from savings with every addition to the family size. The MANOVA post hoc analyses revealed that the mean monthly savings of each of the higher family size group (more than 3 members) were observed to be significantly lower than the smallest family group (3 members), which is symptomatic of low propensity towards saving in context of the workers with higher family size. Though, the mean monthly consumption expenditure of family size of 4, 5 and 6 members was observed to be significantly higher than that of the largest family group (7 members), however its consumption income ratio was observed to be greater than that of all the lower family size groups. This is logically plausible as the workers having the largest family size were observed to have the lowest mean monthly income, thereby implying the presence of large number of economically inactive members in this group, which resulted in diversion of a large part of their income towards their consumption expenses. The results of the ANOVA regression analysis confirmed that family size has a significant positive impact on the consumption expenditure of the industrial workers. Further, the reduction of savings due to increased burden of the additional family member corroborated the proposed negative effect of family size on savings of the workers.
- A Blueprint for a Knowledge Bourse, a Financial Innovation for an
Abstract: The world economy is in the midst of the next stage of its evolution, one that operates robustly in the framework of an information age. The idea of a “knowledge or information society” has become a benchmark of economic policies and business practices in both developed and developing nations. Many nations have firmly set their sights on transitioning to knowledge economies, as reflected in the vast investments in information technologies and related economic aspects across countries. This article proposes a model for the development of a financial innovation that would vigorously promote such a transition: A Knowledge Bourse.
- Antecedents of Employees’ Turnover Intentions: Evidence from Private
Abstract: In today’s competitive environment, the development and retention of human capital has become a serious concern for organizations. This study aims to study the antecedents of employees’ turnover intentions in private educational institutions. A closed ended questionnaire was distributed among 200 employees of different educational institutions. One hundred and seventy eight of them responded with total response rate of 79%. Regression analyses were performed to test the hypotheses set forth. The findings of the study revealed that turnover intentions are influenced by job stress and work environment whereas work overload has not been found as a significant predictor of turnover intentions.
- An Analysis of the Influence of Ownership Structure, Investment, Liquidity
and Risk to Firm Value: Evidence from Indonesia
Abstract: The aims of this study is to determine the influence of ownership structure, investment, stock liquidity and risk stock to operating performance, Good Corporate Governance (GCG) and firm value on the manufacturing sector listed in Indonesian Stock Exchange (IDX). The research results are; the ownership structure have a positive significant effect to operating performance and the risk stock have a negative significant effect on operating performance and operating performance have positive insignificant effect on firm value. The ownership structure have a significant effect on corporate governance and corporate governance have a significant effect on firm value. However, investment, stock liquidity and risk stock have a negative insignificant effect on corporate governance. Stock liquidity have a negative significant effect on firm value, however ownership structure and investment have insignificant effect on firm value. Special findings from this research are that there is gradual process in influencing firm value so that corporate governance has the role as intervening variable, which is the variables moderating the effects of ownership structure in affecting firm value.
- A Study about Impact of Customer Characteristics on Online Purchase
Behavior in Indian Context
Abstract: The recent growth of e-commerce and the consumer’s increasing interest in purchasing over the net have significantly changed the landscape of Indian retail market. Today customers are inclined to accept the changes and keep their eyes on the benefits they can obtain from online retailers. The recent example of changing consumer purchase pattern is the flipkart’s ‘Big Billion day’ Sale. The growth in online sales can be partially attributed to the Internet’s advantages of providing large amounts of information quickly and inexpensively and it’s growing accessibility. Yet, to reach its full potential, business owners who use ecommerce as a distribution channel need a clearer understanding of who buys online, what they buy online, why they buy online and how the non-Internet buyer can be transformed into an online buyer in order to increase online sales. The purpose of this study is to understand and analyze the factors effecting online purchase decisions of Indian customer. The paper attempts to identify the determinants of online purchase intentions of youths in Indian context. Based on extensive literature review, factors effecting online purchase intentions, antecedents of service quality and consumer attitudes were identified and a structured-non-disguised questionnaire was prepared. The data was collected through survey of 200 students of graduation and post-graduation courses in Moradabad region of Uttar Pradesh. The questionnaire contained questions about consumer demographics, security and privacy concerns, technological familiarity, past online shopping experiences and intentions to buy various types of products through internet in future. The findings of the study indicate that customer online purchase intentions are significantly related to their gender, education, age, security concern, technological familiarity and past online purchase frequency. Consumer buying behavior is also affected by product type, purchase frequency and expensiveness. Their purchase decisions are also found to be related with the online retailer’s services like return, refund and delivery services. The framework of the research enhances understanding of the factors affecting customer online shopping behaviour, helps in profiling typical Indian online shoppers and may help e-marketers developing more specific marketing strategies to increase e-commerce sales.
- Why Southern Mediterranean Countries Fail To Innovate?
Abstract: This paper aims to analyze the factors that influence research investment in the Mediterranean region. We used a robust fixed effects model to analysis a panel of 22 countries for the period 2000-2012. The results showed that the FDI, the high technology export, the human capital devoted to research, intermediate and final production sectors, are significant and stimulate the Southern innovative capacity. The private R&D is a substitution to public R&D. The private returns exceed its social returns to R&D since Southern governments don’t invest too much like private firms in the innovative activities. The role of foreign institutions and international organizations is almost nonexistent in financing the southern research investments. The salaries don’t motivate the researchers and Scientifics since it has a negative effect on the R&D. The imports, the active population, the inflation, the technology infrastructure, the patent production have no effective contributions to the investment in the R&D in the Southern Mediterranean countries.
- E-loyalty and Business to Business (B2B) E-Commerce Success: Applied Study
on Sample of E-Retailers in Amman City, Jordan
Abstract: This research paper investigates the antecedents and consequences of customer loyalty in an online business-to-business e-commerce context. Moreover, this research identifies two key factors of e-loyalty (attitudinal and behavioral loyalty) that potentially impact business to business e-commerce success within e-retailers in Amman city. Therefore, the aim of this research paper is to develop a comprehensive research model utilized for discovering the impact of E-Loyalty on B2B EC Success by applying an empirical Study on Sample of E-Retailers in Amman City. A simple model summarizing the main variables of research then the developing a conceptual model of study that integrates and explains the relationship between e-loyalty as main factor and effect of its associated dimensions. Data analysis was based on 105 participates e-retailers who are working in electric home appliances and Computers hardware, software sector, the data analysis was based on multivariate statistical techniques encompassing Cronbach’s Alpha (α) to test reliability, Percentage and frequencies, descriptive analysis to describe the sample, multiple linear regression, stepwise regression via using SPSS analysis software. The results of this study confirm that there is a positive significant and strong effect of E-Loyalty (EL) on (B2B EC) success, as well as provided important information to Jordanian online Suppliers that are working in Amman city and their business focused on Electric Home Appliances and Computers Hardware and Software items.
- Fractional Reserve Banking and Price Stability: Evidence from Gulf
Cooperation Council (GCC) Countries
Abstract: This study aims at investigating the possible influence of the current money creation process applied by the commercial banks through the fractional reserve system on the overall prices stability in the Gulf Cooperation Council (GCC) countries. The study uses yearly data spanning from 2008 through 2013 for Qatar, Kuwait, Oman, Saudi Arabia and United Arab Emirates and applies panel regression analysis based on the pooled data set. The results indicate that neither outstanding deposits nor outstanding loans have a significant influence on general price levels.
- Islamic Finance Development and Economic Growth Nexus: The Case of the
United Arab Emirates (UAE)
Abstract: Islamic Banking presently knows a great success and new Islamic banks are opening every day all over the world. This Shari’ah (It is the bod of Islamic law, it literally means “way” or “path”) compliant banking is expected to withstand the financial crises and to enhance economic growth. In this paper, the purpose is to analyse the relationship between Islamic banking development and economic growth in the UAE from Q1: 2004 to Q4: 2011 using co-integration and Granger causality tests. This study reveals that no relationship does exist between Islamic banking development and economic growth in the UAE. Such a result can be attributed to the small component of Islamic banking in the global banking sector and to its declining profitability in the period of study. The study enriches the literature on Islamic finance development and economic growth, which is still an under-researched area, especially in the MENA region.
- Influence of Foreign Direct Investment on Gross Domestic Product; an
Empirical Study of Pakistan
Abstract: Empirical study was conductedto assess the relationship and impact of Foreign Direct Investment (FDI) on theeconomic growth of Pakistan. FDI plays critical role in the development ofeconomy. There is a positive relationship between the GDP (Gross DomesticProduct) and FDI (Foreign Direct Investment). With the increase of FDI, GDP ofthe country also increases. It has been observed that in the developingcountries GDP growth is more dependent on foreign direct investment. PeopleRepublic of China is from one of the recent examples. Chinese companies areinvesting a large amount in the different sectors of Pakistan. FDI is boostingcountry GDP and attracting multinationals organizations towards makinginvestment in the country. It is found that world see Pakistan as an importantdestination for outward FDI projects because of its cheap labor cost, strategiclocation and investment incentives. It is expected that this research will behelpful to investors to comprehend an overall investment scenario as well asgovernment policy makers to take necessary steps for creating a favourableinvestment climate for foreign investors in Pakistan. It has been observed thatin 2012, there is 11.9% decrease in financial assets and direct Investment hasincreased by 10.6%. Direct Investment is 6.6% of total assets. Till 2011,Direct Investment in Pakistan was US $20,916 million but in 2012, with theincrease of US$ 2,209 million it became US$23,126 million. During 2012, portfolioinvestment increased 24.1%.
- Roles of Macroeconomic Variables on Agricultural Diversification in
Abstract: Thestudy examined the trend in agricultural diversification index from 1960 to2014 in Nigeria. It also determined the influence of some macroeconomicvariables on the estimated index. Augmented Dickey-Fuller-GLS unit root testshowed that all series were integrated of order one. The long-run and short-runelasticity of the agricultural diversification index with respect to thespecified macro-economic variables were determined using the techniques ofco-integration and error correction models. The trend analysis revealed that,the country has witnessed appreciable level of agricultural diversificationwith 0.3%, 0.5% and 2.3% annual exponential growth rate in entropydiversification index, Herfindhal diversification index and Ogive diversificationindex respectively. The estimation of the error correction model supported thelong run stability of agricultural diversification index in Nigeria. Theempirical results revealed that, in the long run inflation, viablemanufacturing sector, credit to agricultural sector, external reserves, percapita income, unemployment and energy consumption are positive drivers ofagricultural diversification; whereas, crude oil prices, lending capacity ofcommercial Bank, foreign direct investment in agricultural sector and non-oilimport are long run negative drivers of agricultural diversification inNigeria. However, in the short run, inflation, external reserves and non-oilimports stimulated agricultural diversification; while energy consumption andmanufacturing capability retard agricultural diversification in the country. Aten-year forecast was made on the estimated diversification indices and theresult showed a progressive growth. The empirical results were furthersubstantiated by the variance decomposition and impulse response analysis ofthe dependent variable with respect to changes in the explanatory variables.Results obtained were in line with the previous results. It is recommendedthat, the Nigeria government should re-aligned its macroeconomic policies toachieve stability in inflation rate, external reserves, industrial production,electricity consumption, agricultural credit institution if sustainableagricultural diversification is to be achieved in the long run.
- Withholding Certificates and Self-Certifications under FATCA
Abstract: This review article analyzesthe term withholding certificate and self-certification under the ForeignAccount Tax Compliance Act (FATCA). It shows which types of forms exist inorder to establish an account holder's FATCA status (chapter 4 status). Itproofs in particular under which conditions a Participating Foreign FinancialInstitution may use its own form in lieu of an official IRS form.
- Big Data Driven Supply Chain Management and Business Administration
Abstract: Big Data helps improve visibility throughout the supplychain, provides an integrated view of operational performance and customerinteraction and gives businesses real-time insights that help make criticaldecisions. Big Data also has a potential to yield new management principles.This paper introduces the Big Data concept, its characteristics and some majorissues of Big Data in supply chain management and business administration.These issues include supply chain and business data, Big Data benefits and itsapplications and opportunities. Methods and technology progress about Big Dataare presented in this study. General challenges of Big Data and Big Datachallenges in supply chain management and business administration are alsodiscussed.
- Creating a Link between HR Department and Budgeting: What do HR Managers
Abstract: This research endeavours to investigate the involvement ofthe Human Resources (HR) department throughout the budgeting process and theutilization of budgets to further perform HR activities. Study seeks empiricalevidence based on the responses elicited from HR department managers in 100Pakistani companies with a distinct HR department. Results suggest that the HRdepartment has limited involvement in the budgeting procedures, which in turncould explain the limited use of budgets as a means of performance evaluationand communication. Evidence from survey showed that HR departments in Pakistando fully capitalize on the budgets as a mean of achieving organizational goals.This study contributes to the literature by analysing the responses of HRdepartment managers and their views towards the budgeting function from HRmanagement perspective in Pakistani companies.
- An Economic and Environmental Evaluation of the Em-Ferro Plastic Sorting
Abstract: Recycling has been continually practiced since the dawnof mankind; however, increasing production costs as well as environmentalimpacts of the conventional waste disposal methods have shed a light on theimportance of recycling as a sustainable way to produce goods and services.Recycling has proven to be beneficial, economically and environmentally: Itsaves resources, prevents pollution, supports public health and creates jobs. Recyclingcan be applied to different materials present in the Municipal Solid Waste(MSW). Plastics constitute a substantial portion of the MSW. In 2012, plasticsaccounted for 12.7% of the total MSW generated in the United States. However,only of the total amount of plastic generated in 2012 was recovered forrecycling. Currently, the major part of the plastics generated is disposed ofthrough incineration or landfilling. These conventional disposal methods imposeserious threats to the environment such as greenhouse gas emission and soil andunderground water contamination. These effects along with the versatility ofthe plastic waste have led the development of more environmental friendlyplastic recycling methods. Prior to recovery, the plastic waste should besorted into the different plastic types itis composed of. Traditional plastic sorting methods used optical or manualsortation which was not only costly but also susceptible to high nonconformancerates. Newer technologies have been developed that have higher output and aremore economically justifiable. This thesis performs and economical andenvironmental comparison between five plastic sorting methods that arecurrently in use and one emerging technology which uses Electromagnetic (EM)waves and ferrofluid to sort plastics. Economic Input-Output Life CycleAssessment (EIO-LCA) is the method used to collect the data and perform theanalyses. Two economic measures are used to evaluate the methods from aneconomical point of view. The objective is to study how the new method comparesto the existing methods both economically and environmentally using a casestudy in Toledo, Ohio. The data related to cost, energy requirements and carbonemissions were collected through contacting local vendors. The results of thestudy showed that all of the methods have positive economic performance withminor variations in energy use and carbon emissions.
- An Investigation of Causality between Advertising and Operating Activity:
Macro and Micro Evidence from Japan
Abstract: The relationship betweenadvertising and operating activity is one of the topical issues in marketingand economic research. However, micro data have not been analyzed. In this paper,causality between them is empirically examined by using macro and micro dataand applying four models-conventional Vector Autoregressive (VAR) model, vectorerror correction model, homogeneous parameter panel VAR model and heterogeneousparameter panel VAR model. Granger causality tests are applied to Japaneseadvertising and operating activity data. Empirical results indicate thatoperating activity causes advertising and not vice versa.
- Macroeconomic Determinants of Non-Performing Loans: An Empirical Study of
Some Arab Countries
Abstract: The issue of non-performing loans is one of the factorsthat reflect the soundness of the banking sector. The main objective of thisstudy is to identify macroeconomic determinants of non-performing loans in someArab countries through the period 2000-2012 using the dynamic panel dataapproach. The outcomes of this paper suggest that inflation rate has a negativeimpact on NPLs, whereas improvement in macroeconomic and financial conditionsseems to have a negative impact on the level of NPLs. Regarding the impact ofthe global financial crisis, the results show that the crisis had a negativeimpact on the level of NPLs. With regard to household consumption, the outcomespoint out to mixed results where this effectseems to be negative in non-petroleum countries but positive in petroleumcountries, whereas increasing of government spending is associated with lowlevel of NPLs in both groups of countries. Moreover, an increase of theaggregate debt burden has a positive impact on the level of bad loans whereasexpansionary monitory policy and improvement of terms of trade in petroleumcountries have a significant negative effect on NPLs but this effect is notclear in non-petroleum countries.