Template-Type: ReDIF-Article 1.0 Author-Name: Yating Yang Author-Name: H.W. Chuang Title: A DYNAMIC FINANCIAL RATIO ADJUSTMENT MODEL Abstract: This paper proposes an alternative model for analyzing the dynamic adjustment process of financial ratios; the model includes a firm’s internal effect, industry-wide effect, and strategic management. The model can explain (1) that a firm’s financial ratios reflect unexpected changes in the industry, (2) active attempts to achieve the desired target by management, and (3) an individual firm’s financial ratio movement. We consider the internal effect of the dynamic adjustment process of financial ratios to an equilibrium state on a firm, and use quarterly data rather than annual data for examining these effects. Empirical findings indicate that the specific effect on the firm indeed improves the explanatory ability of the dynamic adjustment process of financial ratios. Further, optimal target financial ratios may be affected by a firm’s internal movement, external shocks, and strategic adjustment by the management. Classification-JEL: C51; G17; M41 Keywords: Financial ratio adjustment, Industry-wide effect, Lev’s model Journal: Global Journal of Business Research Pages: 1-10 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:1-10 Template-Type: ReDIF-Article 1.0 Author-Name: Neil Terry Author-Name: Anne Macy Author-Name: Amjad Abdullat Title: STOCK MARKET VOLATILITY: A COMPARISON OF COMPUTER AND CELLULAR HARDWARE COMPANIES Abstract: Stock market volatility has been omnipresent in the information technology sector. This manuscript compares the stock performance of computer and cellular hardware companies across six different twenty-month periods between the years 1996-2006. The focus periods include the browser era, the Y2K era, the post-Y2K era, the post-9/11 era, the outsourcing era and the mobile/wireless era. The lowest stock market returns are in the Y2K or post-9/11 eras for all eight firms. The highest stock market returns for the eight companies in the study focus on four different eras. The results imply that while computer and cellular hardware companies have a tendency to decline in price in a down market, positive return periods in a bull market are not highly correlated within the industry. Classification-JEL: D0; G1; L8 Keywords: Abnormal Stock Returns, Cellular Hardware, Computer Hardware, Stock Market Journal: Global Journal of Business Research Pages: 11-24 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:11-24 Template-Type: ReDIF-Article 1.0 Author-Name: Putu Anom Mahadwartha Title: STATES OF NATURE AND INDICATORS OF MANAGER’S CORRUPTION IN INDONESIA Abstract: This research investigates private sector corruption. The research focuses on a firm’s life cycle as it relates to corruption. Free cash flows to dividends and leverage are used as indicators of private sector corruption. The research examines Non-financial firms listed on the Indonesia Stock Exchange from 1994 to 2006 including 1,680 observation years. Six hypotheses are tested using the Generalized Methods of Moments and Wald tests. The results demonstrate that leverage policy is a major indicator of firm micro level corruption while dividend policy is not. The results show maturity stage firms have the highest corruption levels and declining stage firms have the lowest levels. Classification-JEL: G3; G30; G38 Keywords: Growth, maturity, star, decline, free cash flow, dividend, leverage, corruption Journal: Global Journal of Business Research Pages: 25-45 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:25-45 Template-Type: ReDIF-Article 1.0 Author-Name: Ehab K. A. Mohamed Title: MULTIDIMENSIONAL PERFORMANCE MEASUREMENT IN ISLAMIC BANKING Abstract: Most of the studies that have examined management accounting practices have done so irrespective of the nature and characteristics of organizations. Little is known about the impact of the difference in the nature of organization on management accounting practices. Hence, this study investigates the impact of the nature and characteristics of organizations on management accounting practices, in particular on non-financial performance measurement practices in the banking sector. Several Islamic Banks have been selected in the Gulf Cooperation Council (GCC) countries in order to explore the impact of the nature and characteristics of these institutions on management accounting practices. This study reveals that the nature and characteristics of organization have a great impact on performance measurement practices in different Islamic banks. Classification-JEL: G21, G24, M21, M31 Keywords: Islamic Banking, management, accounting practices Journal: Global Journal of Business Research Pages: 47-60 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:47-60 Template-Type: ReDIF-Article 1.0 Author-Name: Wei-Hsi Hsu Author-Name: Yung-Shi Liau Author-Name: Jack J.W. Yang Title: EVIDENCE ON HEDGE RATIOS CHANGES AROUND THE SUBPRIME MORTGAGE CRISIS Abstract: During the subprime mortgage crisis period, the New Century Financial Corporation was the biggest subprime mortgage lender in the United States and declared bankruptcy on April 2, 2007. This paper compared two types of hedge ratios--the hedge ratio before April 2, 2007 and the hedge ratio after April 2, 2007. We applied the hedge ratios of American, British, Canadian, German, Hong Kong and Japanese stock futures markets to examine the hypothesis. It is shown that the serious subprime mortgage crisis has led to a greater average hedge ratio in all six markets and the average hedge ratio has had a more obvious change in America, Britain, and Hong Kong. In other words, the results show that when the investors are in the asymmetry return of the financial assets they are inclined to weigh adverse evidence more heavily. The results are consistent with the findings of Lien (2005). These findings are helpful to risk managers dealing with stock index futures in the above markets. Classification-JEL: G01, G15 Keywords: Hedge ratios, Subprime mortgage crisis, DCC GARCH Journal: Global Journal of Business Research Pages: 61-71 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:61-71 Template-Type: ReDIF-Article 1.0 Author-Name: Naser Abdelkarim Author-Name: Khadija Ijbara Title: EVIDENCE ON CORPORATE GOVERNANCE COMPLIANCE BY PALESTINE SECURITIES EXCHANGE LISTED FIRMS Abstract: Good corporate governance is widely recognized as essential for the creation of a better and more attractive investment climate. The key objective of this descriptive research is to examine the extent of compliance of firms listed at Palestine Securities Exchange (PSE) with corporate governance best practices from managerial perspective. The study provides evidence that the PSE listed firms do not comply satisfactorily with corporate governance best practices specially when it comes to Board Composition and Independence. On the other hand, the non-compliance level in the area of transparency and disclosure was not as obvious. The study identifies a number of factors that may contribute to this non-compliance including the non-existent of enforceable code of corporate governance and the outdated Company Law that is still in effect in the Palestinian Territories, and finally the family dominance over corporate affairs . The value of this study stems from providing an evidence on compliance with good corporate governance by firms operating in under developed country with a small and simple but growing economy. The findings of this paper are considered relevant and helpful when evaluating the maturity of Palestinian economy, as well as the degree of PSE efficiency. Classification-JEL: G34 Keywords: Corporate Governance, CEO Duality, Boards' composition, Boards' effectiveness, Transparency and Disclosure. Journal: Global Journal of Business Research Pages: 73-88 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:73-88 Template-Type: ReDIF-Article 1.0 Author-Name: Francisco Sousa Fernández Author-Name: María Mercedes Carro Arana Title: COMPREHENSIVE INCOME IN TIMES OF CRISES: EVIDENCE FROM SPANISH COMPANIES Abstract: Given the increasing importance of comprehensive income as an indicator of corporate performance internationally, especially since the revision of International Accounting Standard 1 (IAS 1) by the International Accounting Standards Board (IASB) in 2007, in this paper we intend to assess its impact on the more traditional net income during the period 2004-2008 for the select group of the Spanish IBEX-35 listed companies, pursuant to the information disclosed in accordance with said IAS. This will allow us to verify the importance of comprehensive income for the corporate groups at a time of serious financial and economic crisis as was 2008. The non-parametric Wilcoxon Signed-Rank Test was used to perform the corresponding statistic comparisons, as the variables did not conform to normalcy. The results showed a statistically significant impact of comprehensive income on net income for three of the five years that were studied, especially for 2008, when there was a spectacular decline in corporate performance when considering the impact of the first on the second. This confers more informational relevance to comprehensive income, being much more in tune with market reality than traditional net income. Classification-JEL: M41 Keywords: Comprehensive Income, Net Income, Times of Crises, Spanish Companies (IBEX-35) Journal: Global Journal of Business Research Pages: 89-100 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:89-100 Template-Type: ReDIF-Article 1.0 Author-Name: Hsueh-Ying Wu Author-Name: Chun-Chun Lin Author-Name: Cheng-Lung Li Author-Name: Hsing-Hui Lin Title: A STUDY OF BANK CUSTOMERS’ PERCEIVED USEFULNESS OF ADOPTING ONLINE BANKING Abstract: As information technology rapidly changes the fabrics of industries in recent years, the trade of online banking has become more diversified. Specializing in unlimited, speedy and convenient services, online banking has transformed traditional banking in many countries. The managements’ ability to anticipate and respond to such changes in the financial marketplace, thus, has a decisive influence on the success or failure of many retail banks. The present study, exploratory in nature, was intended to develop a comprehensive conceptual framework from which researchers could empirically examine and explain the relationship between customers’ perceived usefulness of online banking and the relative advantages of online banking, its website quality, knowledge & support, information quality and customer trust in Taiwan. Multiple regressions were conducted to test the above-mentioned relationships. The statistical results show that relative advantages, trust and perceived ease of use .are more important and critical to customer’s intention of online banking adoption. This study further offers a marketing insight for managers to effectively deploy online system and service. In designing online banking services, software developers should pay close attention to informative content that will be, above all, perceived by customers as useful and relevant. Classification-JEL: Keywords: Online banking, technology acceptance model (TAM), perceived usefulness , perceived ease of use, relative advantage, website quality, knowledge & support, information quality, trust. Journal: Global Journal of Business Research Pages: 101-108 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:101-108 Template-Type: ReDIF-Article 1.0 Author-Name: Constance J. Crawford Author-Name: Raymond Rigoli Title: A COMPARATIVE ANALYSIS OF SOCIAL SERVICES AND SOCIAL SECURITY PROGRAMS IN THE INTERNATIONAL ARENA Abstract: Providing social services to meet the needs of society is at the foundation of the United States political system. Social Security and related social services, created to protect the integrity of our political system, has been a moral triumph. But an important question remains: Are we adequately meeting the needs of our at-risk population when compared to the international community? The research in this paper will be based on both primary and secondary research. The research results will be analyzed and presented as viable alternatives and recommendations for improving the current crisis in the United States social welfare programs. Classification-JEL: M41 Keywords: Social security, social welfare programs, political system Journal: Global Journal of Business Research Pages: 109-118 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:109-118 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Harris Author-Name: Paul R. Kutasovic Title: DID FASB 157 CAUSE THE FINANCIAL CRISIS? Abstract: In light of the financial meltdown that followed the bankruptcy of Lehman Brothers in the fall of 2008, there is considerable debate in the financial community on the appropriate accounting methodology used to value financial assets. In fact, many analysts on Wall Street argue that much of the blame for the current financial and economic crisis is due to fair value accounting and the implementation of FASB 157, which regulators put into effect for financial statements released after November 15, 2007. The argument is that with assets trading in illiquid markets, financial institutions reported outsized losses by writing down the value of their security and loan holdings even if they had the intent and ability to hold the assets to maturity. The critics of FASB 157 charge that these sharp write-downs contributed to the failure of banks and forced others firms into a difficult financial situation. This study examines the issues surrounding fair value accounting and looks at the role accounting played in the financial crisis. We conclude that fair value accounting played no significant role and is the preferred accounting framework for financial institutions. Classification-JEL: G01, G10, G21, M41 Keywords: Fair-value accounting, FASB 157, mark to-market, level 1, 2 and 3 assets Journal: Global Journal of Business Research Pages: 119-125 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-10.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:119-125 Template-Type: ReDIF-Article 1.0 Author-Name: M. Shahadat Hossain Author-Name: Vinod Kumar Author-Name: Uma Kumar Title: INNOVATION PROCESS IN CANADIAN AND US HOTELS Abstract: This study explores the innovation (NSD) process in hotels. We review the existing NSD models and investigate if they explain the innovation process in hotels both in Canada and the US. Six new services are identified and examined closely. Based on the results we find distinct differences in the innovation process in hotels from other service industries and propose an activity based innovation process model for hotels. The study also attempts to understand if the development process is an informal or a formal one and reveals that is as much systematic as it is creative. The study provides a guideline for managers to adopt, in implementing an NSD process. Classification-JEL: Keywords: Journal: Global Journal of Business Research Pages: 127-137 Volume: 4 Issue: 3 Year: 2010 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v4n3-2010/GJBR-V4N3-2010-11.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:4:y:2010:i:3:p:127-137