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 (35 papers in press)

Regular Issues

  • Foreign Direct Investment Learning of the Productivity in Chinese Regional Economy   Order a copy of this article
    by Yonghun Jung, Seong-Hoon Lee, Joanne McLaughlin 
    Abstract: This paper examines the effect of learning by FDI on TFP using Chinese provinces dataset. The study employs endogenous growth model that takes place in the various capital goods including foreign capital goods as vehicle for the technology transfer. The study derives TFP as a function of FDI stock, indicating that its contribution is through the channel of technological progress, rather than capital accumulation in the hosting country. The theoretical prediction is that FDI learning has a negative level effect in the short run on the TFP, but has a positive rate effect in the long run. These predictions are empirically confirmed using a fixed effects panel model. Empirical findings show that the FDI learning plays an important role in the process of technology diffusion, controlling for other factors that may affect TFP. The study also discusses a policy implication of the FDI on the Chinese regional economic growth.
    Keywords: Keywords: FDI; Productivity; Chinese regional economy.
    DOI: 10.1504/IJEBR.2020.10027845
     
  • Investigating the Factors Influencing Consumers’ Purchase Intention for Electric Cars: An Emerging Market Perspective   Order a copy of this article
    by Jay Trivedi, Kaushal Kishore 
    Abstract: Research attempting to identify factors leading to consumers’ adoption of electric cars is limited and inconclusive. Hence this study explores the factors which influence Indian consumers’ attitude towards the electric car brands, further leading to brand love and finally resulting in purchase intentions. The mediating role of brand attitude and brand love between the independent variables and purchase intentions is also observed. Descriptive research design was used for the study and data were collected from 539 respondents. The proposed hypotheses were tested using structural equation modeling and Hayes PROCESS method for mediation. The results exhibit that vivacity, online reviews, and accessibility are the top three factors which influence consumers' brand attitude, which results in brand love and further purchase intentions. Brand love was empirically established as a stronger predictor of purchase intentions as compared to brand attitude. The mediating role of brand attitude and brand love was also established.
    Keywords: Electric cars; Emerging Market; Brand Love; Brand Attitude; Purchase Intentions.
    DOI: 10.1504/IJEBR.2021.10028668
     
  • Attitude towards Foreign Product Purchase: Malaysian Consumers Perspective   Order a copy of this article
    by Khairul Anuar Mohammad Shah, Hazril Izwar Ibrahim, Nurliyana Maludin, Zurina Ismail 
    Abstract: This study examines the Malaysian consumers attitudes towards foreign purchase products. Specifically, this study investigates the consumers attitude whether they have the feeling of boycott, animosity, ethnocentrism, patriotism and worldmindedness towards foreign made products. It also has examined how these constructs can affect the foreign product judgment and their willingness to purchase such products. This study surveyed on 512 consumers from Penang, Kuala Lumpur, Melaka and Terengganu (East Cost). Methodology and practical implications were discussed at the end of this study. The findings show that consumer patriotism and consumer worldmindedness mediates the relationship between product judgment and purchase willingness of foreign made products. The results also indicated that consumers with the attitude of animosity and ethnocentrism was negatively judge foreign made products and consumer worldmindedness was positively judge of foreign made goods and products. Surprisingly, only consumer worldmindedness was positively related to purchase willingness of foreign made goods. In conclusion, this model of study s was performed well by testing the goodness of fit analysis. Discussion of findings and direction of future research are highlighted.
    Keywords: boycott; animosity; ethnocentrism; purchase willingness; product judgment.

  • Online Financial Reporting Disclosure in Islamic Banking: Evidence from Bahrain   Order a copy of this article
    by Adel Sarea, Azam Khalid, Amanuddin Bin Shamsuddin, Iqbal Hawaldar, Zakir Hossen 
    Abstract: This study aims to investigate the level of disclosure of Islamic banking in Bahrain by the web-based disclosure. The web-based disclosure method was implemented to determine the quantity of the level of web-based disclosure of Islamic banks in Bahrain by using index consists of 90 items. The findings of the descriptive analysis indicated that the overall level of web-based disclosure was 73.3 %. The regression results showed a positive relationship between the independent variables (firm size, age, and profitability) and the level of web-based disclosure. The results of this paper help the Islamic banking in Bahrain to increase the level of web-based disclosure to reach full Online Financial Reporting Disclosure (OFRD) to satisfy the stakeholders. The outcomes of this study will be useful elsewhere.
    Keywords: Online Financial Reporting Disclosure (OFRD); Islamic banking; Bahrain.

  • Assessment of Reputational Risk Impact on Commercial Banks Financial Performance   Order a copy of this article
    by Viktorija Skvarciany, Daiva Jurevi?ien?, Ksenija Kravec 
    Abstract: The current study aims to determine criteria linked to a bank’s reputation and evaluate the effect of reputation on the commercial bank’s performance. In order to estimate the impact of reputation on a commercial bank’s performance, the expert evaluation method was chosen. The research was conducted in two steps: first, the unstructured (informal) interview was applied to extract the factors; second, the multicriteria decision methods such as SAW, COPRAS and geometric mean were employed for evaluating the determined factors. The research results showed that the weakest position of the commercial bank in terms of reputational risk implied the performance efficiency decrease. The conducted research contribute to the scientific literature by providing a methodology for assessing the impact of reputational risk on commercial bank’s performance. However, the proposed methodology could be applied to those banks that do not provide services for individual customers but work with business clients only.
    Keywords: Reputation; reputational risk; multicriteria decision-making methods (MCDM); SAW; COPRAS; geometric mean; banking.
    DOI: 10.1504/IJEBR.2021.10029659
     
  • Investigating the Impact of Trade Shocks on Productions in Iranian Manufacturing Industries   Order a copy of this article
    by Parham Parsva 
    Abstract: In this study, using the panel vector autoregression model, the impact of trade shocks on production in Iranian manufacturing industries is investigated. For this aim, the time series data of the period from 1995 to 2017 as well as the impulse response and variance decomposition functions are used. The results of the model's estimation show that Iran's industrial development is heavily influenced by the import of capital and intermediate goods. Also, the results of this study indicate that various industries are affected differently by trade shocks, as some industries receiving a downward effect and some industries receiving an upward effect from these shocks.
    Keywords: Manufacturing Industries; Trade Shocks; Impulse Response Functions and Analysis of Variance Decomposition.
    DOI: 10.1504/IJEBR.2021.10029660
     
  • ALTERNATIVE CAPITAL REQUIREMENT FOR INSURERS: POSSIBILITIES AND ISSUES   Order a copy of this article
    by ILZE ZARI?A, IRINA VORONOVA, GAIDA PETTERE 
    Abstract: Solvency II framework regulates how much capital the insurance companies of the European Union must hold. Although the framework lasts four years, there is still place for improvements considering experience. The goals of the research are to propose an alternative capital model methodology using copulas for reserve risk and to show the case study of potential capital shift impact. To conduct the research, the authors have used the extensive literature review, analytical methods and modelling. Research scope is non-life insurance companies under the Solvency II framework with a focus on reserve risk. The research will help avoid that alternative models are only a modern risk management tool and add risk management reality. Higher capital surplus can be achieved if a copula approach is used for risk aggregation in the Baltic non-life market. The Baltic market does not use alternative capital requirement and internal models. Using an alternative model is the right insurer’s approach in modern risk management.
    Keywords: Solvency II; Value-at-Risk; risk management; insurance; internal model; reserve risk; best estimate; copula; solvency capital requirement; alternative capital requirement; t copula; normal copula.
    DOI: 10.1504/IJEBR.2021.10029780
     
  • Philips versus Matsushita: A Critical Review and Comparison   Order a copy of this article
    by Victor Chang, Yian Chen 
    Abstract: This paper examines the rise of two global companies Philips and Matsushita. The aim is to identify factors that contributed to the companies becoming the most successful in the industry. Furthermore, it evaluates and analyses the strategic choices the companies have made from the start of the establishments until the beginning of the new millennia. This paper aims to analyze how these strategies helped Matsushita overtake Philips as number one in the consumer electronics industry. However, the evolved organizational structure also creates disadvantages for the company to speed up growth. Finally, in the last part of this report, recommendations are made for Matsushita about appropriate strategies that can be adopted in the new millennium.
    Keywords: Philips and Matsushita comparison; centralization and decentralization in management.
    DOI: 10.1504/IJEBR.2021.10029892
     
  • Emergence of Behavioural Finance: A Study on Behavioural Biases during Investment Decision-making   Order a copy of this article
    by Dhruv Sharma, Vandana Mishra, J.P. Pathak 
    Abstract: In 1950’s & 1960’s standard finance evolved & thereafter got wide acceptance among the academia However, standard finance paradigm faced difficulties and was questioned, when cracks began to appear due to the growing market inefficiencies and the fact that humans are not always rational Thus, the inherent flaws in traditional finance led to the emergence of behavioural finance, a new science which is a harmonious blend of research principles derived from subjects like finance, cognitive psychology, and behavioural economics It propounds psychological based theories to illustrate stock market anomalies, its core focus is to study the erroneous or less than perfect human behavior that influences individual investment decision and its subsequent effect on the market This paper aims to critically analyse the traditional financial theories, how behavioral finance supplemented these theories by introducing behavioural aspects and also uncovers the psychological impact of individuals on their decision making behaviour.
    Keywords: behavioural; psychology; finance; anomalies; rational.
    DOI: 10.1504/IJEBR.2021.10029893
     
  • Non-Performing Assets: Drag for Stability of Indian Banking Sector   Order a copy of this article
    by Dolly Gaur, Dipti Ranjan Mohapatra, Pratap Ranjan Jena 
    Abstract: The positive and strong performance by banks is imperative for stable growth of Indian economy However, Non-Performing Assets (NPA) of banks are proving to be a substantial hurdle for India becoming a strong and stable economy Thus, the present work is an attempt to find and analyse the factors influencing NPA trends The proposed model for the mentioned subject matter comprises of a set of varied bank-specific, industry specific and macroeconomic variables The study includes some less used factors like, technical efficiency indicating bank performance, which has been measured using stochastic frontier model, and funding risk Considering the time frame of 14 years (2005-2018), 46 scheduled commercial banks in India have been studied For the purpose of analysis 2-step system generalised method of moments approach has been followed The findings indicate that NPA in India are time persistent and get discouraged by positive bank performance.
    Keywords: Non-performing assets; India; Technical Efficiency; Dynamic panel; System generalized method of moments.
    DOI: 10.1504/IJEBR.2021.10029894
     
  • Trademark Cancellation and the Impact on Investment in terms of Commercial and Administrative Law: A Comparison of the UAE and Jordan   Order a copy of this article
    by Firas Massadeh, Moustafa Elmetwaly Kandeel, Ali Abdel Mahdi Massadeh 
    Abstract: This paper concerns the method of judicial review in the dismissal of a trademark, from a procedural judicial perspective. The research examines the impact procedural laws can have on substantive laws, in terms of the influence of commercial litigation and civil procedures on one hand, and administrative law procedures on the other, regarding the potential outcomes for dismissing a trademark. In the UAE’s unified legal system, the civil/commercial courts review decisions to register trademarks, while in Jordan’s dual legal system it is the administrative courts, which do so. This paper investigates if this difference plays any role in cancelling trademarks, and whether it has any subsequent impact on investment and commerce.
    Keywords: Trademarks; Commercial Litigation; Administrative Judiciary; Absolute Grounds for Dismissal; UAE; Jordan.
    DOI: 10.1504/IJEBR.2021.10029908
     
  • ON THE RESILIENCE AND THE RISK SPILLOVERS IN INNOVATION CLUSTERS   Order a copy of this article
    by Laura Gudelyte 
    Abstract: In this paper we provide the determination of systemic risk in a networked structure that appears together with synergistic effect as a result of collaboration in innovation clusters. The interpretation of proposed conceptual model of evaluation of systemic risk can be at least twofold: core-periphery, business entities-R&D institutions, etc. The systemic risk is treated as a generalized risk impacting directly or non-directly the performance of an innovation cluster. The conceptual model of evaluation of systemic risk should be useful for understanding and further treatment of measuring risk in a case of innovation management. Also, the structure and further properties of systemic risk and contagion within innovation cluster are discussed in this paper.
    Keywords: contagion; structure of innovation cluster; systemic risk; uncertainty.
    DOI: 10.1504/IJEBR.2021.10029909
     
  • Onion Dehydration Industry in Gujarat State of India: Issues of Competitiveness, Expansion and Diversification   Order a copy of this article
    by Subrata Dutta 
    Abstract: The fruits and vegetables processing industries have tremendous potentials in creating income and employment for rural population. This study is concerned with the problems and prospects of the cluster of onion dehydration industry located in Bhavnagar district of Gujarat state in India. Gujarat ranks second in India, after Maharashtra, in terms of onion production, and ranks first in terms of productivity. This is the reason for why we have selected Gujarat for this study. Dehydrated onion has very limited market in India; so this industry mainly markets their products in foreign countries. However, in international market, India faces tough competition from China and Turkey. India’s international competitiveness is found to be contingent upon several local/regional factors that have been thoroughly investigated in this article. In addition, we have carried out econometric analyses to identify the determinants of financial expansion and diversification of the processing industry.
    Keywords: Onion dehydration industry; White onion processing; White onion supply chain; Competitiveness; Firm expansion; Product diversification; Regional development.
    DOI: 10.1504/IJEBR.2020.10030097
     
  • A Fresh Look at Environment Friendly Customers' Profile: Evidence from India   Order a copy of this article
    by Ishani Patharia, Sanjay Rastogi, Ravinder Vinayek, Sheetal Malik 
    Abstract: Increasing environmental concern has led to global pressure on companies to produce environment friendly products. There is an analogous need to improve environment friendly purchase behaviour. This paper provides precise psycho-graphic profile of environment friendly customers of electronic products by performing logistic regression analysis. Data was collected from 589 Indian customers who had purchased electronic products during the six months prior to participating in the survey. The results reveal that people with high environmental concern, having good knowledge about environmental problems and their solutions through environment friendly buying behaviour will buy environment friendly electronic products if they have trust in product attributes and believe that their personal actions really contribute towards environmental sustainability. These findings provide very important clues to design pragmatic strategies to improve environment friendly purchase behaviour.
    Keywords: Environment Friendly Customer Profile; Green Purchase Behaviour; Theory of Planned Behaviour; Perceived Consumer Effectiveness; Government Efforts; Logistic Regression Analysis.
    DOI: 10.1504/IJEBR.2021.10030154
     
  • Service Quality and Financial Performance Analysis in Low-Cost Airlines: An Integrated Multi-Criteria Quadrant Application   Order a copy of this article
    by Mahmut Bak?r, ?ahap Akan, Emrah Durmaz 
    Abstract: This study aims to evaluate the financial performance and service quality of major LCCs (Low-Cost Carriers) operating in Europe. For this purpose, 6 LCCs were evaluated based on 7 service quality and 10 financial attributes. Due to the multidimensional nature of the performance phenomenon, integrated MCDM (Multi-Criteria Decision Making) methods, including the CRITIC, TOPSIS, and EDAS; were adopted in the study. After the performance evaluation, the airlines were positioned on the Quadrant matrix according to their performance in two measurements. The study shows that Ryanair is located in region A, which is the best region in the matrix. In addition, it is found that the increase in service quality has an adverse effect on financial performance. Finally, a sensitivity analysis was conducted to test the robustness of the calculation and the stability of the ranking. As a result of the analysis, the applicability of the proposed approach was confirmed.
    Keywords: Airline; Low-Cost Carrier; Quadrant Analysis; Financial Performance; Service Quality; MCDM Methods.
    DOI: 10.1504/IJEBR.2020.10030358
     
  • Credit Risk, Economic Growth and Profitability of Banks   Order a copy of this article
    by Ammar Jreisat 
    Abstract: The main determinants of banking profitability targeting the UAE banking sector was the main purpose of this study, in order to achieve this objective, it is necessary to obtain data that will help us to draw conclusions that serve the desired results. The most important indicators of profitability are non-interest income, economic growth, and loan amount, based on the report findings we will find that the most important to improve the financial performance of banks are increase non-interest income such as commissions and credit card fees and thus have a positive impact on banking profitability, which means that there is a positive relationship between economic growth and non-interest income with profitability, as well as the positive impact of economic growth on banking profitability, which would lead to the conclusion that higher GDP comes with higher bank profitability.
    Keywords: profitability; Credit Risk; Inflation; Economic growth; banking sector; panel regression; ordinary least square (OLS) panel regression; fixed effects panel regression ; United Arab Emirates.
    DOI: 10.1504/IJEBR.2020.10030359
     
  • Budgetary Choice and Its Path to Economic Growth in the U.S. States: Does Total Expenditure Stabilisation Work as a Mediating Factor?   Order a copy of this article
    by Soyoung Park, Sungchan Kim 
    Abstract: The three roles of government (Musgrave, 1959) are closely related to the fourth role: economic growth (Moreno-Dodson, 2008). At the state level, state governments play a similar role in pursuing economic growth by adopting two budgetary choices; the first choice, the allocation role, is investing in capital expenditures while the second choice, the stabilisation role, is saving money for the future. However, compared to the central government, little is known about the effectiveness of budgetary choice at the subnational level. Thus, this article investigates whether spending on capital expenditures and saving for the future are effective for state governments in the United States and how another role of government affects economic growth. The empirical results show that making capital expenditures and saving for the future are positively related to economic growth for state governments. However, the volatility of the total expenditures does not have any significant relationship with economic growth.
    Keywords: capital expenditure; state government saving; economic growth; total expenditure volatility.
    DOI: 10.1504/IJEBR.2020.10030360
     
  • The impact of financial inclusion on consumers saving and borrowing behaviours: A retrospective cross-sectional evidence from the UAE and the USA   Order a copy of this article
    by Ibrahim Niankara, Riham Muqattash 
    Abstract: This paper highlights the impact of financial inclusion on borrowing and saving decisions in the United States (US) and the United Arab Emirates (UAE). It does so, using data from the 2014 Global Findex database, and an empirical strategy that contrasts the fully parametric and semi-parametric specifications of the saving and borrowing functions. Based on the AIC model performance indicator, the semi-parametric bivariate probit specification is found to better describe the two processes of saving and borrowing, with a 12.3% correlation coefficient value. Although no significant difference is found in the likelihood of borrowing between consumers of the two economies, we found however, that consumers in the US are 31.4% more likely to save than their UAE counterparts. In addition, and in line with the “Permanent Income Hypothesis”, the results reveal the absence of an income based saving or borrowing gradient in the two countries.
    Keywords: Borrowing; economic growth; financial inclusion; saving; UAE; USA.
    DOI: 10.1504/IJEBR.2020.10030418
     
  • Can statistical methods help prove excessiveness of dominant firm's prices? Evidence from the Tunisian Competition Council   Order a copy of this article
    by Walid Gani 
    Abstract: This paper proposes a statistical algorithm for proving excessiveness of dominant firm's prices centered on the following elements: (i) an analysis of the trend of dominant firm's prices, (ii) a statistical comparison between prices of the dominant firm and those of its competitors, and (iii) an assessment of the dominant firm's mark-up using control charts. Through a real case study on the Tunisian industry of bituminous waterproofing membranes, the implementation of the proposed statistical algorithm is shown. Findings reveal that excessiveness of dominant firm's prices is due to excessiveness in its observed mark-up over cost, in comparison with the prevailing mark-up levels. An analysis of the daily sales of the dominant firm from the first quarter of 2012 to the fourth quarter of 2014, shows that economic theories on mark-up and price elasticity of demand may fail to meet the observed data.
    Keywords: abuse of dominant position; competition law; decision sciences; excessive prices; mark-up; statistical tests.
    DOI: 10.1504/IJEBR.2020.10030419
     
  • Analysing the mediating effect of leader-member exchange on the relationship between servant leadership and organisational commitment   Order a copy of this article
    by Arun Aggarwal, Kamrunnisha Nobi, Dinesh Jaisinghani, Geeti Sharma 
    Abstract: The objective of the current research is to analyse the mediating role of leader-member exchange on the relationship between servant leadership and organizational commitment. In order to achieve this objective, the data was collected from 524 full time employees working in five companies of information technology sector operating in northern India. Results of the structural equation modelling analysis revealed that servant leadership has significant and positive impact on leader-member exchange. Further, servant leadership has positive impact on organizational commitment. Leader-member exchange has positive impact on employees’ commitment level except continuance commitment. Finally, results of the mediational analysis shows that servant leadership mediates the relationship between leader-member exchange and affective, continuance and normative commitment.
    Keywords: Servant Leadership; Leader-Member Exchange; Affective Commitment; Continuance Commitment; Normative Commitment; Structural Equation Modeling.
    DOI: 10.1504/IJEBR.2021.10030420
     
  • Practising internal marketing in secondary public education: development of an integrated model   Order a copy of this article
    by Christina Thomaidou Pavlidou, Andreas Efstathiades 
    Abstract: The aim of this study is to investigate the existence of internal marketing (IM) strategies in secondary public schools, providing suggestions to principals and policy-makers for their application. Based on the literature review, a conceptual model of IM strategies has been developed to test on secondary public schools in Cyprus. The structural equation modelling (AMOS) software used for data analysis showed that a range of IM strategies are absent from secondary public schools and there is a positive relationship between relationship development, human resource management (HRM) and education process and internal customer segmentation (EPICS) strategies respectively to IM in the public secondary schools.
    Keywords: internal marketing; education; high schools; secondary public education; HRM; human resource management; relationship development; education process; internal customer segmentation.
    DOI: 10.1504/IJEBR.2020.10030001
     
  • The suitability of the small and medium-sized enterprises in Dubai to the requirements of International Financial Reporting Standards   Order a copy of this article
    by Mahmoud Nassar, Khalil Nimer, Abu Reza Momammad Islam 
    Abstract: The objectives of this paper are to identify and address the benefits of applying IFRS and its suitability by targeting SMEs licensed to practice auditing in Dubai at the end of 2017. We sent out questionnaires targeting 240 auditors; received 189 responses. Out of this 135 responses were considered. Others were discarded as they were not suitable for statistical analysis. There are a number of results obtained from this study based on the results of statistical tests. They are as follows. The consideration of SMEs (as an important part of the national economy) is that the requirements of IFRSs for these companies are compatible with their environment, in terms of presentation of financial statements ensuring proper presentation of their financial statements. They must prepare their accounting records in accordance with accounting standards in a timely and accurate manner, which in turn, would eventually, enable these companies to make right decisions.
    Keywords: IFRS; International Financial Reporting Standards; SMEs; small and medium size enterprises; international standards; financial reporting; accounting regulations; Dubai.
    DOI: 10.1504/IJEBR.2020.10029293
     
  • A study of small business owners' perceptions and experiences of government policies in Suzhou, China   Order a copy of this article
    by Victor Chang, Fatima Khaleel, Fangyu Zhang, Qianwen Xu 
    Abstract: The purpose of this study is to explore the Chinese government policies towards small businesses and the perspectives of the business owners on the implemented policies. The research adopts an in-depth interview with five business owners in Suzhou, China and the data collected from the interview are analysed by the SWOT method. Our findings reveal that businesses are satisfied with government intervention. However, over intervention may cause discouragement and may lead to the failure of businesses in China. In addition, the analysis of the findings reveals that most businesses require policy changes and policymakers should consider the weaknesses and opportunities for the future growth of the economy. Our paper provides a contribution to the literature of Chinese businesses and government policies, and helps the owners to understand the business context and challenges. The inability to investigate more entrepreneurs all over the country is the limitation of the study.
    Keywords: economic growth; government policies; business owners; entrepreneurs; China.
    DOI: 10.1504/IJEBR.2020.10028635
     
  • The linkage between stock and inter-bank bond markets in China: a dynamic conditional correlation (DCC) analysis   Order a copy of this article
    by Ahmed Hassanein, Hanaa Elgohari 
    Abstract: This study applies the Dynamic Conditional Correlation (DCC) model to investigate the correlation between stock and inter-bank bond markets in China over the period from 2002 to 2016. The study finds no conditional correlation between China's stock and bond markets over the sample period. However, after dividing the sample into four different time scales, we find a significant correlation for the following periods: bond market fluctuations (2002-2005), recovery and persistence (2010-2013), and stock market shock (2014-2016). However, there is an insignificant correlation during the Global Financial Crisis (2006-2009). Further, we apply the BEKK model as a confirmatory analysis and find the presence of spillover effects between the stock and bond markets in both directions during the following periods: bond market fluctuations, recovery and persistence, and stock market shock. These results suggest that the correlation between the stock and bond markets in China is a time dependent.
    Keywords: DCC; dynamic conditional correlation; BEKK; spillover effects; financial markets; China.
    DOI: 10.1504/IJEBR.2020.10027846
     
  • Oil and growth challenge in Kazakhstan   Order a copy of this article
    by Mira Nurmakhanova 
    Abstract: Kazakhstan possesses substantial amount of petroleum and natural gas and relies extensively on revenues from the export of these commodities. We use Kazakhstan's dependence on revenues from the oil sector to demonstrate commodity producer vulnerability to external commodity price fluctuations. The goal of this paper is to examine the nature of the relationship between real gross domestic product (GDP), fiscal revenues, real exchange rate, price level, and oil prices. We employ Bayesian approach to time series data for the period 2000-2017. We find evidence of significant effect of oil prices on Kazakhstani economy where one of the key channels playing a role in the effect of oil prices on real activity is related to the real effective exchange rate. Additionally, results of this research indicate that one possible channel for oil price shocks to affect the real exchange rate is through the upward pressure on domestic price level.
    Keywords: oil prices; real exchange rate; GDP; gross domestic product; fiscal revenues; Bayesian VAR.
    DOI: 10.1504/IJEBR.2020.10027623
     

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.

  • Student enterprise intentions: The effects of founders characteristics, university roles, entrepreneurial environments, and perception of barriers   Order a copy of this article
    by Abdul Rahman Zahari, Puteri Fadzline Muhamad Tamyez, Noor Azlinna Azizan, Elinda Esa 
    Abstract: The study of student enterprises intention can be found in many developed countries whereas the similar study is very limited in developing country. This study aims to examine the effect of founders characteristics, university roles, entrepreneurial environments (enablers) and perception of barriers on student enterprises intention in Malaysian higher educational institutions. A cluster sampling technique was applied and able to obtain 369 samples from the founders of student enterprises in eleven Malaysian public universities. Data was analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). Results indicate that the founders characteristics such as the need for achievement, innovativeness, propensity of risk taking and self-efficacy are positively related to student enterprises intention. Moreover, the perception of barriers is negatively related to student enterprises intention. In addition, locus of control, university roles and entrepreneurial environments are unable to show positive relationships with student enterprises intention. The findings suggest that a holistic understanding about the enablers and barriers in the formation of student enterprises intention.
    Keywords: founders’ characteristics; university roles; entrepreneurial environment; perception of barriers; student enterprise intentions.

  • Board Characteristics and Director Remuneration Disclosure in Malaysia   Order a copy of this article
    by Elinda Esa, Abdul Rahman Zahari, Noor Azlinna Azizan, Nor Raihan Mohamad 
    Abstract: As a result of the Enron era and the global financial catastrophe in 2008, stakeholders ' interest in director remuneration disclosure issues has remained acute, robust and persisted in recent years and has become a significance that triggers discussions and works among practitioners and academics. Director remuneration is usually the subject of intense scrutiny by regulators, investors and the public due to the issue that many directors continued to receive large pay packages despite many structural and financial problems. In addition, the gap between the level gained by managers and the rest of their workers has also become a point of contention for many. As a result, increased transparency requirements are under a microscope. Therefore, this study was intended to assess the level of transparency of director remuneration among Malaysian public listed companies. It also aims to investigate whether corporate governance attributes such as board characteristics influence the transparency of director remuneration in the corporate annual report of Malaysian public listed companies. Six board characteristics were chosen for this purpose, namely independent directors, the board size, female on board, board ethnicity, board meeting frequency, and board experience. The transparency of board remuneration in Malaysian public listed companies is measured using director remuneration scoreboard. The results show that the board ethnic and company size has influences on the extent of directors remuneration disclosure, while other board characteristics are found to not be associated with the extent of directors remuneration disclosure.
    Keywords: director remuneration; disclosure; board ethnics; Malaysia.

  • NEXUS BETWEEN HUMAN CAPITAL AND WAQF REGULATIONS WITH WAQF PERFORMANCE IN MALAYSIA: THE MODERATING ROLE OF GOVERNANCE   Order a copy of this article
    by Nur Azni Mohd Zeni, Noraina Mazuin Sapuan 
    Abstract: Over the years, waqf institutions have played an important role in addressing a wide range of socio-economic development for the ummah (society) all over the world. The growth of waqf with time has led to increasing expectation surrounding the role of waqf institutions. Nevertheless, there has been an inefficiency issue regarding waqf institutions in Malaysia. The literature emphasises that inefficiency is usually associated with internal factors such as governance and management. Hence, the present study examines whether governance moderates the relationship between human capital in Waqf institution and waqf regulations (both as a proxy of waqf management attribute) with the performance of waqf institutions in Malaysia. In particular, the current research employed a quantitative research methodology by analysing a selected sample of 99 respondents in waqf institutions. The developed model was tested using the Structural Equation Model (SEM) technique through the Partial Least Square (PLS) approach. The results revealed a positive relationship between waqf management attribute and waqf performance which becomes stronger with high governance. Moreover, it should be noted that the use of governance as a moderator between waqf management attribute and waqf performance is very limited in past research. Therefore, the result of the present study is expected to enhance the understanding of existing conceptual literature on the importance of governance in influencing the relationship between waqf management attribute and the performance of waqf institutions in Malaysia.
    Keywords: Human capital; waqf regulations; waqf governance; waqf performance; Malaysia.

  • Corporate Governance of Banks In Asia Emerging Market: The Relationship between Board Governance Enhancement and Bank Performance   Order a copy of this article
    by Abdul Hadi Zulkafli 
    Abstract: This study is conducted to analyse the impact of corporate governance mechanisms specifically board governance enhancement on the performance of banks in emerging Asia from 2011 until 2015 of post 2007 global financial crisis. A total of 109 banks with 545 observations from eight countries are selected into this study. The board governance enhancements are represented by the proportion of directors who had qualifications in banking and/or finance, the proportion of directors who had experience in banking and/or finance and the majority number of independent directors on board. Meanwhile, net interest margin (NIM) is the proxy for bank performance. Evidently, all the three variables under board governance enhancement have significant relationship with bank performance. Concerning board qualification and experience in banking and finance, the finding of this model signifies that the appointment of more directors with qualification in banking and finance enhanced NIM of emerging Asia banks. In relation to board independence, this model documented negative relationship with NIM. Therefore, bank performance deteriorated with more independent directors on board.
    Keywords: corporate governance; board structure; bank; Asia; emerging market.

  • The impact of organisational trust on employee loyalty: analysis of employment length differences using multi-group structural equation models   Order a copy of this article
    by Mohd Alwi, Siti Baharuddin 
    Abstract: The study of trust and loyalty in management setting has been covered widely where recent study focused on trust as a condition on predicting workplace outcome based on employee behaviour. The purpose of this study is to examine the effects of employee trust on loyalty. Respondents of this study are the insurance agents from various insurance companies. Data is collected through questionnaires and analysed using structural equation modelling. The results show that employee trust has a direct effect on employee loyalty. According to the result of multi-group analysis, the standardized parameter estimates for high working length is lower than low working length. Thus we can conclude that the effect of employee trust on loyalty is more pronounced in shorter working length compared to longer working length.
    Keywords: Employee trust; Employee loyalty; Working length.

  • DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN YEMEN: THE ROLE OF FINANCIAL DEVELOPMENT AND ENERGY CONSUMPTION   Order a copy of this article
    by Noraina Mazuin Sapuan, Khaled Al Sayed Mohamed 
    Abstract: Yemen is facing with lots of developmental challenges such as an increase in poverty, rapid population growth, increasing unemployment and so forth. These issues require strategic leadership, or else, the Yemeni economy will not withstand future economic shocks. Foreign Direct Investment (FDI) is one of the impetuses highlighted in the literature to have a significant effect on economic growth, but in the context of Yemen this view is still unclear. Hence, this study aims to investigate the long run and the short run relationship between FDI and economic growth in Yemen. The semi-annual time series data is used from 1990 to 2014 and Autoregressive Distributed Lag (ARDL) approach is employed to explore the long run relationship between FDI and economic growth, and other macroeconomic variables in Yemen. The findings from the study revealed that FDI, energy consumption, real GDP growth, financial development, exchange rates, exports and inflation rates have a long run relationship in Yemen, with energy consumption and economic growth having a significant positive impact on FDI. On the contrary, the study found financial development to have a significant but negative relationship with FDI in the long run.
    Keywords: Foreign direct investment; Economic growth; Yemen.

  • Determinants of workplace green behaviour: Higher learning institutions in Malaysia.   Order a copy of this article
    by Zalina Hashim, Hutkemri Zulnaidi, Salina Daud 
    Abstract: This paper aimed to investigate the influential factors that motivate employees to perform pro-environmental behaviour in their workplaces by using the social exchange theory. A correlational survey was carried out to examine the determinants of green workplace behaviours among higher learning institutions in Malaysia. A structured questionnaire was used to gather data from 505 business and engineering lecturers from several selected private and public universities in the country. The data was analysed using the SPSS and AMOS 20.0, which revealed results that indicated that the perceived organisational support positively corresponds with job commitment, job satisfaction and PEB. Results of the analyses also showed that job commitment and job satisfaction partially played as positive mediators in the relationship between perceived organisational support and pro-environmental behaviour; hence, offer further empirical evidence to the current literature. Pertinent practical implications and suggestions are also proposed for future research.
    Keywords: Job commitment; job satisfaction; perceived organisational support; pro-environmental behaviour; Social Exchange Theory; green workplace behaviour.

  • Islamic Financial Development and Income inequality in the selected Organisation of Islamic Cooperation (OIC) countries   Order a copy of this article
    by Tajul Ariffin Masron, Muslimah M.J, AZAM ABDELHAKEEM KHALID, AMAR HISHAM B.I.N. JAAFFAR 
    Abstract: The purpose of this paper is to examine the effect of Islamic financial development on income inequality in OIC countries. It seeks to explain whether the existence of Islamic financial development helps the OIC countries in reducing the income inequality. Out of 56 of OIC countries, only 25 countries are having the Islamic financial system. Several databases are used for the data collection for the period of 2006 to 2014. Generalized methods of moment (GMM) is adopted for analyzing the data collected. This study shows that the Islamic financial development gives significant impact in reducing the income inequality in OIC countries. This study helps in assessing the existence of the Islamic financial intermediaries regarding their roles in helping the society through the income gap reduction and assisting policy planning for poverty alleviation programme.
    Keywords: Islamic financial development; income inequality; OIC.

  • Applying Partial Least Square in Human Governance Index   Order a copy of this article
    by Zulkefli Muhamad Hanapiyah, Salina Daud, Nur Azizah Mohamad Parij, Wan Mohammad Taufik Wan Abdullah 
    Abstract: High quality workforce depends on how good governance practices are. The establishment of governance has produced a concept of human governance that aims to communicate the development and practice of good values among employees. Human governance is a significant element to improve the value and ethical behavior of employees in the organization. This study seeks to establish the human governance determinants. The selected organizations involved in this study are based on the information provided by Malaysia Anti-Corruption Commission (MACC). The unit of analysis for this study is the employees whom were involved in the decision making within the organization. partial Least Square Structural Equation Modelling (PLS-SEM) was utized to analysis the collected data. This study adopts the stratified sampling technique. The results of this study revealed that the factor loading for each item is above 0.60, average variance extracted is above 0.50, composite reliability is above 0.70, and Cronbachs Alpha is above 0.60. The finding shows that human governance index consists of 8 determinants namely: Leadership, Integrity, Religiosity, Spirituality, Culture, Training and Development, Recruitment and Selection, and Internal Policy Control.
    Keywords: Human Governance; Measurement; Ethic; Corruption Risk; Partial Least Square (PLS).