Forthcoming articles

International Journal of Economics and Business Research

International Journal of Economics and Business Research (IJEBR)

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International Journal of Economics and Business Research (38 papers in press)

Regular Issues

  • Can Bitcoin diversify significantly a portfolio?   Order a copy of this article
    by Stavros Stavroyiannis 
    Abstract: The overall performance of a portfolio is the utmost measure of success for the skills of the portfolio manager. The Sharpe ratio and the modified Sharpe ratio have been some of the most referenced standards used in finance, to evaluate the efficiency of funds and hedge fund managers, however; such an ordering should be accompanied by proper statistical inference. In this work we examine whether Bitcoin can diversify significantly a reference portfolio composed from the five best performers of the Dow Jones Industrial Average in 2017 that is, Apple, Boeing, Caterpillar, Visa, and Walmart. The portfolios are constructed via analytical solutions in the mean-variance framework, constrained optimization for the cases of long-only and risk-parity portfolios, and an equal weight strategy. The statistical significance of the Sharpe and modified Sharpe ratio differences is examined via a variety of tests. The results indicate that Bitcoin can significantly improve only the Sharpe and modified Sharpe ratios of the minimum variance and risk-parity portfolios. On the efficient frontier, the tangent portfolios are dominated by the traditional stocks.
    Keywords: Bitcoin; portfolio optimization; Sharpe ratio; modified Sharpe ratio; statistical significance.

  • Do Institutions Matter for Informal Employment in Jordan, Egypt and Tunisia?   Order a copy of this article
    by Asmaa Ezzat, Hanan Nazier, Racha Ramadan 
    Abstract: The paper shed light on the role of institutions, in addition to values and individual characteristics on the likelihood of being in informal employment in Jordan, Egypt and Tunisia. Using the Labour Market Panel Surveys of the three countries, in addition to the World Value Survey and the World Governance Indicators, we examine determinants of informal employment. Our results show education and values play an important role in the decision of being in informal employment. Moreover, institutions matter in the informality decision.
    Keywords: informal employment; informal institutions; formal institutions; Egypt; Jordan; Tunisia.

  • The Impact of Export Instability on Economic Growth: Sample of MENA Countries   Order a copy of this article
    by Samer Abdelhadi, Ala’ Bashayreh, Mohammad Alomari 
    Abstract: This study aims mainly at investigating the relationship between export instability and economic growth in a sample of MENA countries. For this purpose, the study tested the stationarity of variables using Augmented Dickey-Fuller Test, applied the Johansen cointegration method, and estimated the Error Correction Model using annual data over the period (1990-2016). Results show that there is a stable long run relationship between export instability and economic growth in Jordan and Egypt. On the other hand, results show a positive effect of export instability on economic growth for both KSA and Algeria on the long run but the effect is not significant. The study suggests further work and investigation to find innovative ways, to overcome the natural barriers of monopoly placed by developed countries as well as to diversify exports as a procedurethat could mitigate the bad effect of export instability. It is recommended also to enhance investment which stimulates economic growth and hence overcomes the instability problems.
    Keywords: Economic Growth; Export Instability; MENA countries.

  • The Effect of Culture and Organizational Culture on Administrative Corruption   Order a copy of this article
    by Salem Al-Jundi, Ahmed Shuhaiber, Shaban Al-Emara 
    Abstract: There is extensive literature on corruption, such as political and corporate corruption, some of which examines factors influencing administrative corruption. However, to the best of our knowledge, the multivariate influences of culture and organizational culture on administrative corruption have not been tested using an integrative approach. This paper attempts to fill the gap by building and testing a comprehensive model. We test a sample of 677 responses that reflect the prospective view of the public in Basra, Iraq, using the partial least squares structural equation modelling (PLS-SEM) approach. Our study finds that corrupt culture and weak organizational culture have direct effects on administrative corruption, while corrupt culture leads to weak organizational culture. The latter mediates the impact of corrupt culture on administrative corruption. The higher level of social class, the lower the impact of corrupt culture on administrative corruption.
    Keywords: administrative corruption; culture; organizational culture; public sector; social class; structural equation modelling; partial least squares; Iraq.

  • Assessing the effectiveness of Monetary and Macro-prudential Policies in GCC Economies   Order a copy of this article
    by Hisham Abdelbaki 
    Abstract: This paper aims to evaluate the effectiveness of the monetary and macro-prudential policies in GCC economies during the period 2000-2013. The main results are that the macro-prudential policies are more powerful compared to monetary policy where the macro-prudential policy shocks explain 14.2% and 10.3% of credit and output fluctuations respectively, while monetary policy shocks explain only 5.5% and 6.4% of credit and output fluctuations, respectively. The main recommendations of the paper are that the GCC countries must move forward and faster in diversifying their economies and should improve the data availability which may require establishing a financial stability coordination committee.
    Keywords: monetary policy; macro-prudential policy; GMM estimator; VAR model,GCC countries.

  • Short and long-run linear and nonlinear causality between FDI and GDP for the US   Order a copy of this article
    by Iias A. Makris, Stavros Stavroyiannis 
    Abstract: Recent severe recessions demonstrated an urgent need for identifying and forecasting on the impact of specific macroeconomic indicators. Investment spending is considered to be a crucial factor of growth, with many researchers to focus on the crucial contribution of foreign investment in recipient economies. However, findings are not clear, on whether the relation is bi-directional or not. That issue is crucial for macroeconomic policy spurring a vivid economic debate in regard to whether FDI affects growth, or it is growth that attracts FDI. The purpose of this work is to examine the direction of short and long-run causality of quarterly data of the US gross domestic product (GDP), and the rest of the world, foreign direct investments (FDI) in the US. A well-specified vector error correction model (VECM) identifies a unidirectional short and long-run causality from FDI to GDP. Taking into account that a VECM model is linear, the nonparametric Diks and Panchenko (2006) causality test have been used to examine the direction of any remaining, strictly nonlinear in nature, causality. The results show a unidirectional long-run nonlinear causality from FDI to GDP, and application of the test on the VECM residuals for a variety of embedded dimensions, the same remaining short-run nonlinear unidirectional relationship holds.
    Keywords: Foreign direct investments; Gross domestic product; linear and nonlinear Granger causality; Vector error correction model.

  • The Effect of Organizational Silence on Work Alienation in Service Enterprises   Order a copy of this article
    by Ali Sukru Cetinkaya, Selcuk Karayel 
    Abstract: Human source is one of the most important resources for organizations in the present competitive work environment. But this resource may, consciously or not, be treated in a way that may drive them into silence, and in result alienation, in the organizations. This quantitative research aimed to find out the relationship between organizational silence and employee alienation in organizations. In this context, human-intensive service sectors, mainly health and tourism and hospitality sectors, were surveyed, and 425 valid responses obtained from randomly selected employees working in such service providing organizations. Data was analyzed by employing Explanatory Factor Analysis and linear regression modeling. Results of the research revealed that there was a significant relationship between organizational silence and alienation. Organizations
    Keywords: organizational silence; work alienation; service enterprises; health services; tourism and hospitality services.

  • Corporate social responsibility and accounting conservatism   Order a copy of this article
    by Soonwook Hong 
    Abstract: This study aims to clarify the relationship between sustainability management and accounting conservatism. Perspectives on sustainability management are diverse, including positive, negative, and neutral perspectives. It is worth studying sustainability management given that it has not reached a consensus. This study analyzes sustainability management using ESG rating provided by KCGS as a proxy variable of sustainability management for the listed companies in Korea Exchange from 2010 to 2016. The result demonstrates that the higher the ESG rating, the lower the conservatism. The contribution of this paper is to verify the relationship between sustainability management and conservatism of Korean companies which have not been done recently. In addition, there is an implication in that it provided a starting point for the utilization of the ESG ratings announced by KCGS.
    Keywords: Korea Corporate Governance Service (KCGS); corporate social responsibility (CSR); accounting conservatism; accounting transparency.

  • Evidence for using the CCC (Cash Convertion Cycle) to test the relationship with the corporate profitability: an empirical analysis on a sample of textile Italian SMEs   Order a copy of this article
    by Paola Saracino, Roberta Provasi, Patrizia Riva 
    Abstract: The Cash Conversion Cycle (CCC) is a financial index with increasing importance in recent years since analysts and investors consider it effective for financial analyses. The index provides a correct and truthful situation of the companys ability to cope with its liabilities and allows the company to monitor the cash cycle with reference to purchase operations, production, and sales of products. The CCC is an index expressed by days, so it is necessary to know the Days Inventory Outstanding, the Days Sales Outstanding, and the Days Payable Outstanding to calculate it. The purpose of this research is to analyze characteristics of the CCC and differences with respect to the other liquidity ratios and its relationship with the most relevant financial ratios through empirical applications to verify if it is a reliable index for making decisions regarding a companys cash flow strategy.
    Keywords: CCC Cash Conversion Cycle; Crisis early warning; Insolvency KPI; Financial Index; Cash Flow; WCM Working Capital Management; DIO Days Inventory Outstanding; DPO Days Payable Outstanding; DSO Days Sales Outstanding.

  • Implementation of accounting standards as a company marketing strategy to attract shareholders   Order a copy of this article
    by Mohammed Nuseir 
    Abstract: The present review paper has examined the possibilities of implementing accounting standards and principles as a strategy of the companies to motivate shareholders for investment decisions. This in-depth search of the literature was to find specific financial records and information that could be worthy for marketing to prospective shareholders. There are many views and opinions about the components of financial information that can be mesmerizing shareholders for buying an investment portfolio. Therefore, the ability of organizational accountants is crucial for such stimulation. The accurate, relevant, and appropriate knowledge of the financial activities of an organization can be a useful instrument for marketing. The significant parameters Suggested are Profit and Earnings Information, Expansion of the company, Past Trends in Earnings per share and Dividends of the company, Information relating to the debt and debt levels, Information on companies assets and prospects of additions to the assets. These variables may be crucial, but not conclusive because still closer parameters of an attractive financial information have been suggested as Income Statement, Cash Flow Statement, Balance Sheet, information on number of units and cost of goods sold, annual revenues, gross profit, expenses, Net cash from financing activities, and Cash balance at the end of year.
    Keywords: Accounting standards; Financial information; Shareholders; Marketing strategy; Parameters of financial information.

  • The Role of Business Intelligence in a Knowledge-Based Economy: The Case of Saudi Arabia   Order a copy of this article
    by Jamal Aburashed, Ibrahim Almafdali 
    Abstract: This paper examines the role of business intelligence in creating a more knowledge-based economy in Saudi Arabia. It identifies major enablers that could be utilized to close the existing gaps between business and competitive intelligence. We assess the fundamentals of Saudi Arabias economy to make recommendations for that economy for the long term. Our recommendations are based on our experiences with Saudi culture as well as the current state of the economy. Saudi Arabia has embarked on an ambitious plan to reduce or end its dependency on crude oil as a revenue generator. We have identified seven major issues that may enable movement toward a more knowledge-based and innovative economy. These issues, if addressed, may help decision-makers transform Saudi Arabias markets to a more knowledge-driven economy that is less dependent on oil.
    Keywords: business intelligence; knowledge economy; normative economics; Saudi Arabia; Saudi National Transformation Programme; Vision 2030; private-public sector partnership; educational institutions; higher education; skilled labour force; open economy; political will; infrastructure.

  • The Unfair Competition Lawsuit for Protecting the Unregistered Trademark which is Accompanying a Sound under the UAE Legislation   Order a copy of this article
    by Ramzi Madi, Mohammad Almistarehi 
    Abstract: Sound mark as a type of unconventional trademark is becoming more accepted and registered around the world. The UAE Trademark Law No. (37) of 1992 and its amendments requires registration of any type of trademarks to be protected. However, due to the lack of guidelines for protecting and registering trademark which is accompanying a sound, this raises the question regarding the infringements taking place on such unregistered trademarks. Should they be left without any protection as their holders failed to register them? The aim of this paper is to find out the position of the UAE Trademark Law regarding the unregistered trademark which is accompanying a sound. Authors focus on case law as it was found, when referring to UAE judicial rulings, that they approved protection for unregistered trademarks. Many judgments were based on the general principles of civil liability stipulated in the Civil Transactions Law or unfair competition. However, this article will tackle only the unfair competition lawsuit.
    Keywords: Unfair Competition Lawsuit; Unregistered Trademark; Sound Mark; UAE Legislation.

  • The Impact of Public Relations on Judicial Institutions Performance   Order a copy of this article
    by Muhammad Noor Al Adwan, Majed Ahmad Al-Adwan 
    Abstract: This study tackles the problem of whether or not public relations practice within different judicial institutions follows a refined style by discussing the concept of public relations and its importance in the development of the judicial system. Besides that, the study identifies procedures for compliance with the rules and standards of this relationship upon considering lawsuits by the judge and dealing with the accused. The study also examines whether or not the procedures of notification and response from all parties of the lawsuit follows a refined style to maintain the performance of the judicial institution in its work to the fullest, and in exchange, preserve the dignity of the accused. The evidence from this study suggests that an internal communication system in the litigation scope should be applied for all litigation proceedings from beginning to end. These procedures must be regulated legislatively in a manner consistent with the general rules and principles governing litigation while taking into consideration the special nature of the judicial system.
    Keywords: accused; court; judge; judicial institutions; public relations.

  • Firms profitability: Evidence from Bahrain and Qatar   Order a copy of this article
    by Yomna Abdulla 
    Abstract: In this paper, we investigate the profitability of Bahraini and Qatari firms during the period 2007-2016. The study focuses on two aspects of profitability, first, its determinants, and second, the impact of the recent decline in oil prices on firms profitability. Using two measures of profitability and applying various panel regression techniques, we find that the main significant determinants of profitability are fixed asset turnover, size, leverage, liquidity and age. The results also document the significant impact of the decline in oil prices on firms profitability. This impact is similar and evident in both countries. Finally, the findings suggest the need for further government aid to be provided to firms during periods of declining oil prices.
    Keywords: Profitability; Performance; GCC; Oil Prices; Macroeconomic Variables.

  • Hainan Province the Chinas New Free Trade Zone and Hainan Medical Tourism   Order a copy of this article
    by Khalid Usman 
    Abstract: The Government of China has promoting the free trade zones of the country to captivate the largest overseas investment. The association between development of tourism and foreign trade is widely recognized. This study discussed the impact of Hainan free trade zone on medical tourism in Hainan province. The Hainan free trade zone plan not only promotes growth in South China, but it also donates to the growth of economy in the Pacific Asia region and the World. Under the free visa entry policy the government can attract tourists from all over the world, and can increase the industry of tourism and to fulfill the requirements of international tourists.
    Keywords: Free Trade Zones; Hainan Province; Visa Free Access; Medical Tourism,.

  • A method for the evaluation of bushmeat as a livelihood for rural subsistence communities in Ecuador   Order a copy of this article
    by Elvira Rodriguez Ríos, Benjamín García Páez 
    Abstract: In this paper, a holistic method is proposed to account for the indices of the relative abundance of game species and their relational value to human communities. The method allows for the consideration of economic, ecological, and cultural factors. Based on econometrics, three regression models are specified: (i) the total cost model, which is used to analyze the costs involved in hunting; (ii) the private economic value model, which is used to assess hunting as an economic activity in terms of the hunter's private profit; and (iii) the social value model, which is used to estimate the net benefits accrued by society from the entire process of bushmeat consumption. This method provides not only empirical findings to show how bushmeat consumption contributes to enhance social welfare but also relevant information for public policy makers concerning the sustainable management of game species.
    Keywords: method; valuing methods; bushmeat; livelihood; rural subsistence communities; Ecuador; economic value; social value; relational value; public policy; sustainable use.

  • BOARD SIZE, MULTIPLE DIRECTORSHIP AND PERFORMANCE OF INDIAN LISTED FIRMS   Order a copy of this article
    by Apu Manna, Tarak Nath Sahu, Krishna Dayala Pandey 
    Abstract: The present study is an endeavor to empirically investigate the impact of board size and multiplicity of directorship on the performance of Indian firms. The study uses a set of strongly balanced panel data consisting 168 firms of BSE 200 indices of India for the period of 2010-11 to 2016-17 and adopts panel data regression analysis to establish the relationship among the variables. The study observes a significantly positive relationship between board size and multiplicity of directorship with the corporate performance of the sample firms. Based on the findings, the study infers that the large boards are more efficient in performing supervisory, controlling and decision making role. Again, a director with multiple directorships is highly able to build his reputational capital through his excellence, knowledge, precious experience and effective decision-making capabilities. The study is highly expected to provide important implications in strategy making in the domain of corporate finance and governance and act as a piece of supplementary information for the academicians, corporate strategists and business analysts.
    Keywords: Board Size; Multiplicity of Directorship; Firm Performance; Panel Data Analysis.

  • Technological capabilities and rent eroding battles: Scandinavia centric evidence on firm profitability   Order a copy of this article
    by Muhammad Azeem Qureshi, Tanveer Ahsan, Saqib Aziz, Muhammad Yousaf 
    Abstract: This paper furthers our understanding towards determinants of firm profitability using the data of listed firms from Scandinavia over the period from 2002 to 2015. Applying robust Generalized Method of Moments (GMM) and ANCOVA techniques, we show that firm size, capital intensity, leverage, and growth are the major drivers of firm profitability in Scandinavia. A predominantly positive effect of size over profitability is in line with the broader prior evidence while a simultaneous negative capital intensity-profitability relationship is in contrast with the evidence from rest of the Europe. This contrasting effect may potentially be explained as an outcome of a suboptimal deployment of technological investments and/or rent-eroding battle among the incumbent firms operating in Scandinavia. Our results are robust to reverse causality and alternate proxies of capital intensity.
    Keywords: Profitability; capital intensity; firm size; Scandinavia; panel data analysis.

  • The development of Local Innovation Systems and firm performance: empirical evidence from the South of Italy   Order a copy of this article
    by Marco Ferretti, Eva Panetti, Adele Parmentola 
    Abstract: By positioning in the literary stream that considers the performance of Local Innovation Systems (LIS) in terms of their contribution to the regional economic growth and, more specifically to the increase of entrepreneurial capacity, this paper explores the effect of LIS development on firm performance in the particular case of top-down initiatives to promote cooperation among industry and universities in the region of Campania (South of Italy). Main findings show that these initiatives are associated to a greater firm performance in two districts, focused on the Biotechnology and Cultural Heritage respectively, suggesting that the effect of LIS development on firm performance is dependent upon sectorial characteristics such as the knowledge intensity and the level of basic research needed for the conduct of firms innovation activities as well as their need of recurring to complementary capabilities.
    Keywords: Local Innovation Systems; Firm Performance; Campania; High-Technology Districts.
    DOI: 10.1504/IJEBR.2020.10021641
     
  • Management of Non-Performing Loans by Bhutanese Commercial Banks   Order a copy of this article
    by ALKA RATHORE 
    Abstract: This paper included four commercial banks of Bhutan to find out the impact of NPAs on profitability indicators of Banks. Secondary data collected from annual reports of the banks, recovered from the respective bank sites and the staff of the banks with regard to data on the various internal determinants. The study used the estimated ratios, and calculated ratios from annual reports of four commercial banks of Bhutan namely Bank of Bhutan, Bhutan National Bank, Druk Panjab National Bank, and Tashi Bank over the period of 2010 to 2015. To measure and analyses the data money related ratios, regression analysis, Analysis of Variances (ANOVA) used. This investigation uncovers that private sector bank has lower Non-Performing Loans than public sector banks
    Keywords: Bhutan; Banks; NPA; Regression Analysis; Tashi Bank; Profitability; Bank of Bhutan; Druk Panjab National Bank; Bhutan National Bank; Determinant.

  • The Impact of Interest Rates on Household Debt Accumulation in Malaysia: A Structural Break Analysis   Order a copy of this article
    by Hafizah Hammad Ahmad Khan, Hussin Abdullah, Shamzaeffa Samsudin 
    Abstract: Interest rate plays a significant role on household borrowing activities since it affects the household demand for loans. Although the banking sector can boost its loans distribution by offering a lower interest rate, this will eventually lead to a higher debt accumulation that could bring a harmful effect in the future. Therefore, this study aims to investigate the long run impact of the cost of borrowing on the household debt in Malaysia in order to determine whether the interest rate targeting method could provide solutions to control high debt accumulation. Since the household debt has increased remarkably following the Global Financial Crisis, hence, taking into consideration the presence of structural break in the analysis is crucial to avoid biased estimation. By using the Autoregressive Distributed Lag (ARDL) modelling approach, findings of this study suggest that, although the cost of borrowing has a negative impact on household debt, the effect is relatively low compared to the income level, housing markets and demographic effects on the debt accumulation. As a result, the low interest rate policy adopted by the country since the Asian Financial Crisis is not the basis that brings towards the bulk of household debt in the country and thereby the interest rate targeting method is not the effective mechanism to control the high debt level. Although the banking sector can continue offering a lower interest rate to boost its loans allocation, their lending activities should be done cautiously mainly during a crisis period while their risk management policies should also be strengthened to mitigate any risks associated with high household debt.
    Keywords: Household debt; Interest rate; Life Cycle Model; Structural break; Unit root; Quandt-Andrews breakpoint test; Autoregressive Distributed Lag (ARDL) modelling approach; Malaysia.

  • An Institutional Perspective to International Development   Order a copy of this article
    by John Marangos 
    Abstract: The purpose of this paper is to develop an alternative scheme and recommendations for international development based on the institutionalist tradition. Such an exercise of contrasting the institutional tradition with the Washington Consensus and the After the Washington Consensus (AWC) has not been endeavored. Students of international development would benefit from these findings that distinguish between mainstream and institutionalist perspectives on international development programs. A classification strategy is adopted using the WC and AWC as starting points. The alternative institutionalist development program is scrutinized according to how it varies from the WC and AWC features. The original WC and the AWC are both based on the prevailing mainstream discourse on the relationship between institutions and economic development that requires only institutions that maximize market freedom and protect private property rights. As well, the Washington Consensus and the AWC have a poor understanding of evolutionary character of institutional change, habitually being either overly optimistic or pessimistic about the feasibility of institutional change.
    Keywords: Institutionalism; Washington Consensus; International Development; Economic Development.

  • The Application of Corporate Governance Rules in the UAE   Order a copy of this article
    by Mahmoud Nassar, Ammar Jreisat 
    Abstract: The main objective of this study is to measure the compliance of corporate governance rules in UAE, and their correspondence with the global governance rules. To achieve this, questionnaires were designed and distributed over all companies listed in both Dubai and Abu Dhabi markets. In the study methodology, the researcher distributed around (197) questionnaires for the study sample consisted of board of directors members in the companies, general managers, financial managers who have relation to the application of governance rules inside companies. rnResults showed that UAE companies comply with the application of governance rules of all study variables that hadnt any effect with a statistical significance (company size measured with the current number of the companys employees, sector type and ownership type) on the mechanisms of governance system application in the UAE companies. The study concluded a set of recommendations that include: disseminate and promot governance culture through relevant parties by providing training programs that would promote governance culture and practices, invite the UAE companies to pay the greatest attention to the human in terms of training and continuous development of skills, as well as calling universities for proposing a course that takes company governance in faculties of commerce and law; in order to strengthen the culture of university student on company goverance before engaging in the labor market that can raise their level inside the company they work in.rn
    Keywords: Corporate Governance; UAE Companies; Audit Committee.

  • Relooking the import demand function of China: evidence from asymmetric cointegration   Order a copy of this article
    by SUDESHNA GHOSH 
    Abstract: This paper examines the association among quantity of imports expressed in real terms, relative import prices, exchange rate volatility, foreign exchange reserves and real GDP in the aggregate import demand function for China during the period 2000Q12015Q4. The nonlinear Autoregressive Distributed Lag model was applied to test for the long run association among the variables and also to explore the short run dynamics. The study obtains a long run cointegrating association between the variables. An increase in income of China by 10 percent leads to the rise in imports by 6.7 percent, again a fall in the income level by 10 percent leads to the drop in the import demand by 39 percent. The impact of exchange rate volatility is rather mixed, a phase of rising fluctuations generates a decline in the imports by 21 percent, however when the fluctuations are diminishing imports are not impacted significantly. The study lends support to the hypothesis that volatility of the exchange rates discourages imports. The study further shows that foreign exchange reserves do not impact imports in China. Such investigation will be important in making policy decisions related to trade and balance of payments in China
    Keywords: China; import demand function; exchange rate; volatility; GDP; relative price; time series; NARDL.

  • Revisiting CAPM model with quantile regression: creating investment strategies on the Zagreb Stock Exchange   Order a copy of this article
    by Tihana Škrinjarić, Marina Slišković 
    Abstract: This research explores whether conditional CAPM holds at different points of the return distribution by focusing on data from the Zagreb Stock Exchange and quantile regression methodology. There are several reasons for this specification of modelling: quantile regression does not require strong assumptions on return distributions and handles heteroskedasticity of data. Moreover, the CAPM model has not yet been observed by using quantile regression on the Croatian and several similar CEE markets as well. In that way, it can be observed if this methodology is useful for estimating systematic risk on the Croatian stock market conditioned on different quantiles of the return distribution. Weekly data on 5 sector indices, market return on CROBEX and return on Treasury bills (91 days) for the period January 2012 April 2018 will be collected in order to empirically evaluate the CAPM model via quantile regression. Economic interpretations of results are given as guidance for investors. Moreover, the contribution of this research is given in the simulation part, where several specifications of investment strategies based on estimation results are discussed. Previous literature does not focus on utilizing estimation results as guidance for dynamic investment strategies. Based upon simulations of several strategies, it was shown that quantile regression strategies could be beneficial for more conservative investors. Since this study is one of the few which try to link statistical aspects of estimating finance models with investment strategies, there is hope that this research contributes to the existing literature on the aforementioned matters.
    Keywords: downside beta; quantile regression models; stock market; volatility; systematic risk.

  • Can Cooperative Network Promote Enterprise Innovation in China?   Order a copy of this article
    by Xiaoli Wang 
    Abstract: Based on the institutional background of China's economic development and transformation, in this paper, we investigate whether cooperative networks promote enterprise innovation in China using the World Bank's 2012 survey data on Chinese companies' operations. We found that (1) the diversity of cooperative networks significantly increased the enterprises probability of carrying out innovative activities; (2) different cooperation networks have different impacts on corporate innovation: i.e. bothenterprise-customer corporative network and the enterprise-research organization corporative networks have significantly increased the probability of enterprise innovation, but the enterprise-supplier network has hindered the corporates process innovation. (3) After considering the characteristics of corporate heterogeneity, the cooperation network will benefit high-tech enterprises more than for the low- and medium-tech enterprises in China. Our research contributes to the literature by providing significant insights for the companies to understand their innovation mechanism and also offering meaningful enlightenments for relevant policy-making departments.
    Keywords: Corporative Network; Enterprise Innovation; Innovative Value Chain; Network Diversity.

  • Implied Equity Duration (IED) as a measure of risk and its simultaneous endogeneity with performance in European companies.   Order a copy of this article
    by Pedro Reis 
    Abstract: This work, in addition to applying the adapted Implied Equity Duration (IED) concept through incorporating the dividends returned by the stock markets of France, Germany, Spain, Portugal and the United Kingdom, creates and tests new concepts both for firm risk and of business life expectancy, entitled the Implied Enterprise Value Duration (IEVD), for those countries. Furthermore, this article provides proof of the simultaneous endogeneity between IED and performance through recourse to a simultaneous equations system approach with 3sls and, additionally, studies the implications of company expected life, capital structure, size, market expectations, historic growth and risk both on IED and on performance. This paper reaches an IED based on dividends for European companies of 9.93 years, contributing to the existing IED paradox and confirming that IED is a risk measure. Furthermore, it concludes that IED does not provide a proxy for company life expectancy.
    Keywords: Duration; implied equity; bonds; life; risk; valuation; performance.

  • The Economic Effects of Private Social Security Accounts   Order a copy of this article
    by Katarina Keller 
    Abstract: Since the 1980s, over 30 countries have implemented various kinds of personal social security accounts. Most counties have adopted them as a part of their social security systems, to also continue to fund their public pay-as-you-go system. This paper analyzes the effects of adopting private accounts, as well as the percentage of income paid into private accounts, on GDP per capita growth. Global panel-data regressions over time are used, as well as sample splits for developing countries and separately for Latin America, where many countries adopted some form of private accounts following Chiles ground-breaking example of a complete switch from public to private social security system. The paper estimates statistically significant effects of privatizing parts or all of social security on countries GDP per capita growth. Private accounts also benefit stock market growth and enrollment rates in secondary and higher education, as well as in reducing government expenditures and national debt.
    Keywords: privatizing social security; private social security accounts; economic growth.

Special Issue on: SEDD 2018 Globalisation, Governance and Empowerment

  • Real Exchange Rate and the Development Stages in Selected Oil Exporting Countries   Order a copy of this article
    by Majidah Ashour, Chen Chen Yong, Kee Cheok Cheong 
    Abstract: This study aims to evaluate the effect of the oil boom on the competitiveness of non-oil exports across development stages. A total of 52 net oil-exporting countries is selected as the study sample. The results indicate that the oil boom affects developing economies more than developed economies, where the effect is reduced. The study provides supporting evidence on the Dutch Disease hypothesis, in which the structural composition of countries is important and the real exchange rate provides a perfect benchmark for monitoring and reforming export diversification.
    Keywords: real exchange rate; development stages; oil export; oil boom; economies.

Special Issue on: ICONMASTER 2018 Business and Economy in the Changing World

  • The Influence of Intellectual Capital on Earnings Management through Real Activities Manipulation in Indonesian Manufacturing Companies   Order a copy of this article
    by Nuryaman Nuryaman, Eriana Kartadjumena, Sendi Gusnandar Arnan 
    Abstract: This study examines the influence of intellectual capital (IC) on earnings management through real activities (EMTRA) manipulation in Indonesian manufacturing companies. This study measured IC elements by employing the value added intellectual capital (VAIC) model developed by Pulic (1998) that consists of human capital, structural capital, and capital employed efficiencies. Meanwhile, earnings management was measured by employing the Roychowdhury model (2006), which is known as EMTRA manipulation. EMTRA manipulation is conducted on activities of sales operation, reduction of cost discretion, and over-production. This study analysed data from 69 financial statements of Indonesian manufacturing companies that are listed on the Indonesia Stock Exchange in 2016. The result shows that the integration of intellectual capital elements can reduce earnings management behaviour through sales operation activity manipulation. Moreover, partially, the intellectual capital of capital employed and structural capital efficiencies can lower the practice of EMTRA of cost discretion.
    Keywords: intellectual capital; earnings management through real activities manipulation.

  • Attitudinal ambivalence towards green products: an empirical study in an emerging market   Order a copy of this article
    by Angelina Nhat-Hanh Le, Megha Jain, Duong Tam Truong, Thanh Tam Le 
    Abstract: Attitudinal ambivalence is an emerging concept in marketing and only limited articles have attempted to explore the concept of attitudinal ambivalence in the context of green consumption. This study is one of the pioneer works that examines four negative antecedents (i.e., greenwashing, consumer skepticism, green confusion, and green risk) of attitudinal ambivalence. The largely-ignored concept of resistance to change from non-green to green products is also investigated as the outcome variable of attitudinal ambivalence. Based on a sample of 310 Vietnamese consumers, the results indicate that green confusion is the strongest negative predictor of consumers attitudinal ambivalence towards green products followed by consumer skepticism, greenwashing, and green risk, respectively. Furthermore, attitudinal ambivalence is found to significantly increase consumers resistance to change. This study provides implications for marketing practitioners regarding attitudinal ambivalence and resistance to change, from which appropriate strategies can be formulated and applied to target green consumers.
    Keywords: Attitudinal ambivalence; Greenwashing; Consumer skepticism; Green confusion; Green risk; Resistance to change.

  • TVET Teachers's Perceptions on Competencies: An Application of Malaysian Human Resource Development Practitioners Competency Model   Order a copy of this article
    by Chee Sern Lai 
    Abstract: Competency of TVET teacher is one of the major factors that influences the quality of TVET graduates and TVET system. This paper attempted to investigate the TVET teachers perceptions on the competency needs in Nigerian Higher Learning Institutions based on the Competency Model of Malaysian Human Resource Development Practitioners (MHRDP) which focused on Thinking Competency, Organisational Competency, and Application Competency. This study employed a survey design in which a set of questionnaire was used for data collection. A total of 205 TVET teachers from Universities, Polytechnics, and Colleges of education were involved in this research. Descriptive statistics which involved mean and standard deviation was ultilised to analyse the data. The findings revealed that the Nigerian TVET teachers perceived that all elements related to Thinking Competency, Organisational Competency, and Application Competency are important for TVET teachers for Higher Learning Institutions in Nigeria. Therefore, this research suggests that the Nigerian policy makers and the TVET Higher Learning Institutions should provide training to the TVET teachers in order to equip those teachers with the competency elements that are important and relevant to TVET.
    Keywords: TVET; Competency Model; Teacher; Competency; Perception.

  • The Roles of Employee Work Well-being on Innovative Work Behavior Mediated by Organizational Commitment   Order a copy of this article
    by Rizal Nangoy, Mohammad Hamsal, Nogroho Juli Setiadi, Yosef Dedy Pradipto 
    Abstract: In the era of industry 4.0, innovation has become more important for companies for maintaining their competitive advantage. Nevertheless, research has shown that implementing innovation in corporate strategy is challenging. One of the foundations for successful innovation is the employee innovative work behavior. In the digital business industry, this behavior has been considered as a key performance indicator. Individual performance becomes the basis of the company performance which will further increase the value of the company. This study employs the paradigm of positive psychology, focusing on how performance improvement can be achieved by increasing employee work well-being. Previous studies show that there is an inconsistency in the relationship between work well-being and performance. So, it needs to be understood further through the role of mediation variables that can explain when an employee work well-being can improve performance. This study aims to examine the role of employee organizational commitment as a mediator of the relationship between employee work well-being and innovative work behavior. Taking the digital business industry in Indonesia as a research context, this research reveals that employee organizational commitment fully mediated the relationship between employee work well-being and innovative work behavior. This study contributes to the development of theory in human capital management which explains how a positive psychology-based paradigm strategy can improve employee performance
    Keywords: Industry 4.0; Innovative Work Behavior; Organizational Commitment; Positive Organizational Behavior; Work Well-being.

  • Creating Innovative Work Behavior: The Roles of Self Efficacy, Leader Competency, and Friendly Workplace   Order a copy of this article
    by Henny Santoso, Connie Heng 
    Abstract: Continuous innovation is integral for an organization to get sustainability and growth. Adopting new technological advancements will bring benefits but might have a negative impact on current business modes. Adopting new technology leads to the question mark that is it always true that innovation alone will result in organizational sustainability. The focus of the study is to highlight that sustainability is a linkage between the importance of employees work behavior, their adaptability coupled with technological advancements. Furthermore, other factors such as employee self-efficacy, perceived leader's proficiency, and perceived employee-friendly workplace plays a significant role to innovate work behavior. This conclusion for other factors impacting innovate work behavior was made based on the survey conducted at various telecommunication companies across Indonesia comprising of 208 participants. Based on the above results, further theoretical and managerial research topics are recommended that will allow predicting organizations growth and sustainability better.
    Keywords: Business Management; Human Factors; Innovative Work Behavior; Strategic Management; Sustainability.

  • Exploration of the Need Analysis for Technopreneurship Scientific Learning Models in Higher Vocational Education   Order a copy of this article
    by Hendra Hidayat, Zadrian Ardi, Yuliana Yuliana, Susi Herawati 
    Abstract: The unemployment rate for high education graduates has been increasingly worrying, especiallyin Indonesia. One of the reasons is the graduates ability to survive, character and competence of entrepreneurship, which are still low. This paper aims to explore and explain the needs analysis of entrepreneurial learning in Higher Vocational Education. The need analysis is a very important early stage of learning, in order to to design the technopreneurship model. The research method used was descriptive. The respondents of this research were 30 students from universities that have an entrepreneurial vision in West Sumatra. The measurement of validity, reliability and statistical data analysis were using the Rasch model approach, which use the Winstep software. Data analysis was done by descriptive statistic analysis and Differential Item Functioning (DIF) by Rasch model analysis. The results obtained were; (1) there is generally no entrepreneurial learning model specifically used in learning in higher education, (2) there is very little entrepreneurial learning taught oriented towards products and commercial potential, (3) entrepreneurial learning taught has not adopted technological elements, (4) In general. It strongly agrees if there is a model of entrepreneurial learning, in particular, such as the technopreneurship scientific learning model used in entrepreneurial learning in higher education. So it can be concluded that learning model for entrepreneurship learning that adopts the elements of technology, product-oriented learning and has the commercial potential is needed. One of them is technopreneurship scientific learning model.
    Keywords: Technopreneurship; Scientific; Learning Model; Entrepreneurship.

  • Social Media and Financial Institutions in the Indian context   Order a copy of this article
    by SNEHAL BAWRE, SUJATA KAR 
    Abstract: This paper aims to identify the extent to which social media is used by Indian financial institutions (FIs) for various purposes including generating financial awareness. We consider a total 32 FIs which are listed with Bombay Stock Exchange (BSE)/ National Stock Exchange (NSE), India; 22 of them being banks and ten non-banking financial companies (NBFCs). Managers of all the FIs were interviewed using self-administered questionnaire. The result shows that Facebook, Twitter and LinkedIn are the most widely used social media platforms for exploring new markets, developing new ideas, selling financial products, connecting with the customers and customer relationship management (CRM). Further, banks and NBFCs are found to adopt these media pages to post important financial announcements, which increases customers interest in investment options. The study provides a view on social media usage in terms of cost reduction and customer satisfaction. However, there are some risks associated with social media such as reputational risks, operational risks, data and information risks etc. Furthermore, managerial discussions highlighted their contribution to the use of social media to increase financial literacy.
    Keywords: Social Media Platforms; Financial Institutions; Banks; NBFCs; Financial literacy.
    DOI: 10.1504/IJEBR.2019.10022594
     
  • Digital Transformation: A Transformational Performance-based Conceptual Model through Co-creation Strategy and Business Model Innovation in the Industry 4.0 in Indonesia   Order a copy of this article
    by Leonardus Wahyu Wasono Mihardjo, Sasmoko Sasmoko, Firdaus Alamsjah, Elidjen Elidjen 
    Abstract: Industry 4.0 is driven by the significant influence of digital technology in the industry. Corporations are required to transform their operations, products, and services to show distinctive organization capability, and to have the ability to respond to market changes and to provide customers experience services to sustain competitive advantage. The main drivers of Industry 4.0 are long-term innovations, especially for business model innovations integrating with vertical and horizontal capabilities and co-creation strategies, which is a collaborative strategy to grow together with customers and partners. Information Communication and Telecommunication (hereinafter abbreviated ICT) plays an important part in enabling the digital transformation. At this stage, research on business model innovations to transform organization capabilities within the ICT Industry is still very limited. This paper seeks to portray the conceptual model of ICT companies in transforming their business and organization capabilities to face Industry 4.0 through co-creation strategies and business model innovations in Indonesia markets. The Indonesian market is unique in terms of its ICT infrastructure, but still left behind compared to other countries. However, the market has tremendous opportunities in terms of digital capability innovations. The strategic management outline used as a framework for this paper. Mediating variables were co-creation strategies and business innovations with distinctive organizational capability as an internal factor and consumer orientation as the external independent factor. The construct of co-creation strategy and transformational performance were discussed. This model of digital transformation was a suitable model for senior leaders to transform digital business capability and academics. Moreover, the model and construct of variable can be used to further develop the theory of digital transformation.
    Keywords: Industry 4.0; Digital Transformation; Business model innovation; Co-creation Strategy; Transformational Performance.

  • ROLE OF FREIGHT & FORWARDING COMPANY IN FACILITATING THE EXPORT IMPORT PROCESS IN KELANTAN MALAYSIA   Order a copy of this article
    by Mohd Azian Husin Che Hamat, Muhd Fadhlullah Rashid 
    Abstract: This case study discusses the role of freight & forwarding companies in facilitating the export import process related to the Malaysian Quarantine and Inspection Service (Maqis) agency under the Ministry of Agriculture and Agrobased Industry in Kelantan, Malaysia. This case study used qualitative interview method to collect descriptive data on freight and forwarding companies and also from Maqis role, problems faced and suggestions for improvement on the smoothness of the import and export process. The findings of this case study showed that the Maqis needs to issue a specific standard to facilitate the process of aligning the work by informing the Standard Operating Procedures (SOPs) to freight & forwarding companies located in Kelantan, particularly those dealing with import export of products from Thailand. In addition, the Maqis shall also disclose in details the incremental costs or fees incurred in the process of inspection and sampling of the product. To implement quarantine process, the customer should be referred to the appointed Maqis officer to provide registration, sharing information and payment rate to facilitate freight and forwarding companies. This case study can contribute in terms of ideas and suggestions towards continuous improvement either for the Maqis or the freight & forwarding companies. Suggestions for future researchers need to see the effectiveness of the export import process among customers who use Maqis services from aspects of customer satisfaction and service quality.
    Keywords: freight; forwarding; export-import; quarantine.