Template-Type: ReDIF-Article 1.0 Author-Name: Qiang Gong Author-Name: Xingli Fan Title: The Neutrality of Fuel Surcharge Abstract: Airline companies usually collect a fuel surcharge rather than increase airfares when fuel prices surge. This paper initiates a theoretical model to analyze the properties of fuel surcharges. We show that the role of fuel surcharges is neutral under the present fee collection scheme, which means that the fuel surcharge policy cannot help the airline industry improve its profits. In addition, the equilibrium results of air fares with fuel surcharge policies are identical to that of the fuel-cost-driven air fares without it. Therefore, the effects on social welfare are the same. We also offer an analysis to clear up the common misunderstanding in which the fuel surcharge policy was in favorable to the airline companies at the expense of the consumer welfare. The empirical facts from Chinese airlines support our theoretical findings. Journal: Global Journal of Business Research Pages: 1-10 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:1-0 Template-Type: ReDIF-Article 1.0 Author-Name: Arvin Ghosh Title: The Rise and Fall and Rise Again of the United States IPOS Abstract: Initial Public Offerings (IPOs) of securities are among the most significant phenomena in the United States stock markets in recent years. In the so-called New Economy of the 1990’s, IPO’s ushered in the information technology revolution of the world. In this paper, the rise and fall of IPOs in the United States during 1990-2001 are examined. During 1996-2000, the first-day return of NYSE from 1996-2000 are found to be IPOs was on average 11.97%, while for the NASDAQ IPOs, were 63.33%, and for Internet IPOs it was a whopping 90.28%, resulting in first-day return for all IPOs of 15.24%. But the one-year return for all IPOs was a very modest 3.23%, and for the NASDAQ IPOs, it was only 11.49%. The regression results show consistently positive association between the first-day closing price and the return statistics. Finally, the paper discusses the ten recent trends that have become evident since the revival of the IPO market in the United States in 2004. Journal: Global Journal of Business Research Pages: 11-23 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:11-23 Template-Type: ReDIF-Article 1.0 Author-Name: Irene Herremans Author-Name: Robert Isaac Title: Relationships Among Intellectual Capital, Uncertain Knowledge and Culture Abstract: This exploratory study examined the uncertainty of knowledge within an organization’s environment and its impact on the retention and development of intellectual capital (IC). It further explored the extent that certain internal cultural features impact IC. Findings suggest that as knowledge uncertainty increases, IC opportunities are lost in greater numbers, there are more individual and organizational disconnections, and there is a greater suppression of IC. These outcomes suggest the need for a greater emphasis on IC where knowledge uncertainty is high. Cultural characteristics relating to organizational individualism, high power distance, and short-term orientation can be detrimental to the retention and creation of IC. Journal: Global Journal of Business Research Pages: 24-35 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:24-35 Template-Type: ReDIF-Article 1.0 Author-Name: Alan K. Reichert Title: International Economic Growth and Environmental Pollution Abstract: This paper estimates the relationship between the level of economic growth and the extent of environmental pollution for a wide range of both industrialized and emerging countries. Using data from 28 countries over the period 1975-1998, the paper finds support for an inverted U- shaped economic growth-pollution relationship. Using the aggregate level of CO2 as the measure of pollution and real GDP per capita as the measure of economic growth, the following countries appear to be operating on the rising portion of the inverted U relationship: India, China, Nigeria, and Thailand. On the other hand, the following eight countries appear to lie on the declining portion of the inverted U- relationship: Brazil, South Korea, Spain, United Kingdom, Canada, France, United States, and Japan. Furthermore, ten of the remaining fourteen countries, with per capita GDP below $4,000 exhibited a positive regression coefficient, although none were statistically significant. The turning point appears to occur at a level of GDP per capita, perhaps as low as $3,000-4,000. The paper explores the energy prospects and environmental polices of three of the worlds largest and fastest growing economies, China, India, and Brazil. These three countries are found to play a key role in the empirical findings of this study. The study demonstrates that growth in knowledge and improvements in environmental technology can compensate for an inevitable increase in the use of natural resources in production. Journal: Global Journal of Business Research Pages: 36-46 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:36-46 Template-Type: ReDIF-Article 1.0 Author-Name: Vicente Safon Title: How to Compete and How to Compete Profitably, A Model of Competitive Positions and Business Performance Abstract: Competitive strategy still lacks a widely accepted analytical framework. Indeed, to this day, there is still no consensus on its key dimensions and types, and their relationship with performance. This paper proposes a new framework for the study of competitive strategy, which divides the topic into two questions: how to compete and how to compete profitably; related both to market and financial performance. With this aim in mind, the author develops a dynamic causal model of competitive strategies, called the performance and competitive positions model, based on three dimensions: perceived price, perceived differentiation, and costs. Journal: Global Journal of Business Research Pages: 47-59 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:47-59 Template-Type: ReDIF-Article 1.0 Author-Name: Rafiu Oyesola Salawu Title: The Determinants of the Capital Structure of Firms in Nigeria: The Financial Managers' Perspectives Abstract: The paper examined the considerable factors in deciding on the appropriate amount of equity and debt in the Nigerian banking industry, and the factors influencing banks’ capital structure. Data were gathered through questionnaires administered to the financial managers of 25 listed banks in Nigeria. Cross tabulations and Chi-square were used for data analysis. The result suggests that credit-rating, volatility of earnings and cash flow, bankruptcy or near-bankruptcy, financial distress, transaction costs, fees for issuing debt, and financial flexibility are the important factors in choosing appropriate amount of debt. The most important factor that affects banks’ choice between short- and long-term debts is matching the maturity of debt with life of the asset. The study also reveals that ownership structure and management control, growth and opportunity, profitability, issuing cost, and tax economics associated with debt are the major factors influencing bank’s capital structure. It is, therefore, recommended that banks should adopt a mixed source of financing and choose appropriate ownership structure and management policy. Journal: Global Journal of Business Research Pages: 60-69 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:60-69 Template-Type: ReDIF-Article 1.0 Author-Name: Adriana Carolina Silva Arias Author-Name: Juan Carlos Guataqui Roa Author-Name: Patricia Gonzalez Roman Title: The Effect of Internal Migration on the Columbian Labor Market Abstract: Internal migration in Colombia has led to demographic transformation. These migratory movements have been greatly influenced by available employment opportunities in different urban areas and by increased internal armed conflict. The effect of migratory flows on the probability of finding a job and income from work in Colombia’s ten main urban areas from 2001-2005 were estimated using Logit analysis and Heckman’s selection bias correction model. Evidence shows that age had a positive but decreasing incidence on the probability of being employed. Individuals with a higher level of education, male, married or cohabiting, and households with more employed members, had a greater probability of being employed. Elasticity of worked hours to produce income increased up to 2002 then decreased. Evidence also suggests that return to education is lower for migrants and forcibly-displaced population people. Moreover, the study shows that forcibly-displaced workers earn the lowest wages and face the lowest probability of finding a job. Journal: Global Journal of Business Research Pages: 70-82 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:70-82 Template-Type: ReDIF-Article 1.0 Author-Name: Marianne Ojo Title: The Financial Services Authority: A Model of Improved Accountability? Abstract: Prior to the adoption of the FSA (Financial Services Authority) model, supervision of UK banks was carried out by the Bank of England. Although the Bank of England's informal involvement in bank supervision dates back to the mid nineteenth century, it was only in 1979 that it acquired formal powers to grant or refuse authorization to carry out banking business in the UK. Events such as the Secondary Banking Crisis of 1973-74 and the Banking Coordination Directive of 1977 resulted in legislative changes in the form of the Banking Act 1979. Bank failures through the following years then resulted in changes to the legislative framework. This article looks into the claim that the FSA model has improved in terms of accountability in comparison to its predecessor, the Bank of England. It considers the impact the FSA has made on the financial services sector and on certain legislation since its introduction. Through a comparison with the Bank of England, previous and present legislation, reports and other sources, an assessment is made as to whether the FSA provides more accountability. Evidence provided here supports the conclusion that the FSA is both equipped with better accountability mechanisms and executes its functions in a more accountable way than its predecessor. Journal: Global Journal of Business Research Pages: 83-96 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:83-96 Template-Type: ReDIF-Article 1.0 Author-Name: Diane-Gabrielle Tremblay Author-Name: Elmustapha Najem Author-Name: Renaud Paquet Title: Work-Family Balancing and Working Time: What Measures are Available to Canadian Workers and What Measures should Employers Develop? Abstract: This article examines work-family balance. Data from the Workplace and Employee Survey (WES) was used to assess the overall situation of this phenomenon in Canada. Representative statistical data was used to determine to what extent employers have taken the work-family challenge into account. Our data indicate that the progress observed regarding the social debate on work-family balance has not necessarily translated into a marked improvement in facilitating conditions in workplaces and that there have even been setbacks. Indeed, the number of workdays per week has slightly increased, reaching almost 5 days on average for men and 4.6 days for women in 2002. Moreover, a significant percentage of the Canadian workforce is on flexible work schedules or rotating shifts, which were identified as a source of difficulty for work-family balance. On the other hand, a great proportion of Canadian workers report that they work a number of hours at home, which may foster balance but can also be a source of encroachment on private life. The WES data show that people work at home because of work demands and not for reasons of work-family balance. In brief, work spills over into their personal lives. Moreover, although the most pressing desire of Canadian parents with children under the age of 3 is that employers offer help with daycare and on-site childcare services, barely more than one-quarter of Canadian workers report that their employers offered childcare services in 2002. Also, employers offer help with eldercare services to only one-tenth of Canadian workers. As regards the impact of the number of children, its effect on work time, schedules and preferences related to work time is ambiguous. As regards interest in work time reduction, the effect is also ambiguous but workers with one child or two children expressed a slightly greater desire to reduce their work hours. On the other hand, a link was found between the number of children and the desire to work extra hours since the more children workers have, the less they want to work extra hours. Journal: Global Journal of Business Research Pages: 97-113 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:97-113 Template-Type: ReDIF-Article 1.0 Author-Name: Martha G. Ugeuto M. Author-Name: Neyda T Cardozo S. Title: Human Capital: Productive Benefits and Labor Competences Abstract: It is widely argued that intangible assets, specifically human capital, are vital to business sustainable growth and differentiation. Thus, extensive research has been conducted on the relationship between human capital, strategy and performance. In this paper, a process to identify the human capital critical competences and to measure their economic benefits/impact is introduced. A total of 40 manufacturers located in San Cristobal-Venezuela were included in this study. From these businesses, 167 lathe/turning machine operators were initially observed and a sample group of sixteen workers across four categories (expert, professional, apprentice and assistant) were analyzed to model their core competences and economic contribution. Evidence suggests that mapping human capital competences with corporate strategies allow businesses to make better decisions in terms of human capital investment, and cost reduction. Journal: Global Journal of Business Research Pages: 114-126 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-10.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:114-126 Template-Type: ReDIF-Article 1.0 Author-Name: Isaac Oluwajoba Abereijo Author-Name: Abimbola Oluwagbenga Fayomi Title: The Attitude of Small and Medium Industrialists to Venture Capital Financing in Nigeria Abstract: The principal objective of this paper is to ascertain the extent to which Myers’ Pecking Order Theory (POT) of business financing explains the financial structure of Small and Medium Manufacturing Enterprises (SMEs) in Nigeria. The goal is to examine their attitude with regard to the venture capital financing known as Small and Medium Enterprises Equity Investment Scheme (SMEEIS) introduced by the government in 1999. The data employed were from the database of the survey of manufacturing SME’s in Nigeria. The findings provide evidence suggesting Pecking Order financing behavior is prevalent among manufacturing SMEs in Nigeria. A small proportion of SMEs that consider equity financing for both business start-up and expansion is found. Hence, equity financing through venture capital has not become as popular as other financing alternative in Nigeria. Debt financing appears to dominate their preference, apart from their personal saving and retained earning. Consequently, the paper suggests policy formulation that will address the mindset of the people and encourage greater commitment of banks to actually undertake promotional activities. Among such activities suggested are the identification, development and packaging of viable industries with enterprising customers, and readiness to provide the complementary services to ensure their success. Journal: Global Journal of Business Research Pages: 127-138 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-11.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:127-138 Template-Type: ReDIF-Article 1.0 Author-Name: A. S. MacKewn Author-Name: K. W. VanVuren Title: A Study of Moral Decision-Making: Business Majors Versus Non-Business Majors Abstract: In the field of psychology there is a theory of ethical grounding that distinguishes between people on the basis of idealism versus relativism. An idealistic person is one who believes in absolute truths, values, and rules. A relativistic person, on the other hand, believes that truth is relative to some context; and for them there are no, nor should there be, any absolute values or rigid ethical rules of conduct. This study surveyed undergraduate business and non-business students at a mid-sized southern university to examine whether business majors differed from non-business majors on idealism/relativism and moral decision-making. This research question has important implications not only for pedagogical purposes but also practical implications in the hiring of persons by employers. The results of the study produced evidence that on theoretical terms business students are more relativistic than non-business students but when presented with practical real-world situations in which to apply relativistic thinking, the two groups were not significantly different. Journal: Global Journal of Business Research Pages: 139-146 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-12.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:139-146 Template-Type: ReDIF-Article 1.0 Author-Name: Jorge Hernandez Palomino Author-Name: Rodolfo Rincones Delgado Title: Management Ethical Behavior: The Automobile Industry in Juarez City Abstract: This research study investigated the relationships between ethical behavior, ethics codes, gender, age, work tenure and education of managers working in the automobile industry in Juarez, Mexico. This industry was chosen because of its importance in the economics fields. The ethical behavior was measure using the Defining Issues Test (DIT). A demographic questionnaire asked the participants their gender, age, work tenure and education level. The results indicate that there is not relationship between the existence of ethics codes and ethical behavior of the managers. Additionally, the results of the analysis provide significant statistical support to establish that there is no statistical significance between age, work tenure and education. Furthermore, the study revealed a statistical difference between ethical behavior and gender. The findings in this study suggest that there is something in this industry that shows women have a lower level of ethical behavior. The final considerations and suggestions in this study have theoretical and methodological value for the specialists who have the responsibility of teaching and research about organizational issues. The industry implications of the results are outlined, along with the limitations of the study and recommendations for future research. Journal: Global Journal of Business Research Pages: 147-156 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-13.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:147-156 Template-Type: ReDIF-Article 1.0 Author-Name: Alex Coram Title: A Marketing Competition with a Finite Termination Time: Some Differential Games Abstract: This paper attempts to develop some theoretical insights into the dynamics of marketing campaigns. It studies a model where two firms are competing in an advertising campaign with sales at a specified termination date and asks how the trajectory of resource expenditures would change over time. Among its main findings are that the dynamics of competition force the firms to accelerate their expenditure on advertising throughout the entire time period. Journal: Global Journal of Business Research Pages: 157-167 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-14.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:157-167 Template-Type: ReDIF-Article 1.0 Author-Name: Johan Martins Title: The South African Consumer Market Abstract: Investors interested in the private consumer market of South Africa have to take note of the size of the market but also of the diversity of its population as well as the methods of segmentation followed by the advertising media. South Africa houses 47 million people of different race groups and has 11 official languages. The country consists of nine provinces and vast differences occur among some of them in their population composition and economic activities. In the light of the above, this paper concentrates on the calculation of the size of the South African consumer market segmented by 23 main expenditure groups, province, Living Standards Measure (LSM)® group and race. The size of the market is estimated at US$146 billion. Segmentation by province is necessary because population density and personal disposal income of the inhabitants of the provinces differ considerably. Segmentation by Living Standards Measure (LSM)® group, enables marketers to do more informed media selection for promotion. Segmentation by race is necessary since a number of cultural differences prevail. Journal: Global Journal of Business Research Pages: 168-183 Volume: 1 Issue: 1 Year: 2007 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v1n1-2007/GJBR-V1N1-2007-15.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:1:y:2007:i:1:p:168-183