Template-Type: ReDIF-Article 1.0 Author-Name: Mu-Shun Wang Author-Name: Shaio Yan Huang Author-Name: An An Chiu Title: LIQUIDITY, MANAGEMENT EFFORT AND PERFORMANCE Abstract: This research examines reform in China. We argue the reform will lead the socialist-market-economy into capitalism. Reform offers opportunities to alter ownership of equity and frees management from control of the communist party. This research discusses the relation between market liquidity, investment decision and financial performance. The results from an analysis of 1002 firms show that reforms have significant impacts on the investment decisions. We discover there is a nonlinear relationship between market liquidity and financial performance. We argue this explains a high ratio of tradable-shareholders shareholdings. We divide tradable shareholders into five groups by different ranges ownership percentage. The results were significant but the directions of influence in each group were different. We suggest that the province-policy may be an important variable in the future research. Classification-JEL: G12, G34, P2 Keywords: Liquidity, division of equity tradability, consideration, investment decision, nontradable share. Journal: Global Journal of Business Research Pages: 1-14 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 Author-Name: Chien-Jen Wang Author-Name: Po-Chin Wu Author-Name: Yu-Ming Lu Title: TWIN-RATE UNCERTAINTY, DEBT AND INVESTMENT DECISIONS– EVIDENCE FROM DOW JONES PANEL DATA Abstract: This article modifies the intertemporal optimization model proposed by Bo and Sterken (2002) by considering firm debt composition to derive a more suitable physical investment function and evaluates how twin-rate(i.e., interest rate and exchange rate) uncertainty, derived from the issuance of domestic and foreign debts, influences firms’ investment decisions. The new model focuses on the effects of financial leverage—the use of debt and its role in the financial structure of a company—on firm decisions under uncertainty. Empirical results reveal that from the viewpoint of market standing, companies in Dow Jones Indexes decrease their investment as uncertainty increases. Moreover, when the foreign interest rates are lower along with lower exchange rate volatility, companies in the Dow Jones Indexes are inclined to increase the issuance of overseas firm debt in order to finance their planned investments. Classification-JEL: G10; G32 Keywords: Twin-rate uncertainty, debt, investment decisions Journal: Global Journal of Business Research Pages: 15-26 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:15-26 Template-Type: ReDIF-Article 1.0 Author-Name: Rajesh Mohnot Title: FORECASTING FOREX VOLATILITY IN TURBULENT TIMES Abstract: The present study is an attempt to evaluate the predictability of the foreign exchange volatility in thirteen countries. The data covers the period of 2005-2009. To effectively forecast the volatility in the exchange rates, a GARCH model is used. The study compares the results between crisis period and a set of normal periods. The empirical results reveal that almost all countries except Thailand witnessed non-existence of volatility shocks at least once in a three year pre-crisis period but all the sample countries had volatility shocks in the crisis period of 2008-09. This apparently indicates that forecasting can be made at least for the next day given the high degree of volatility in the crisis period. The paper also reveals that exchange rates tend to have persistent conditional heteroskedasticity, and hence, could be predicted with one lag term. Classification-JEL: C53; F31; G17 Keywords: Forecasting, GARCH, Foreign exchange rates, Volatility, Financial Crisis Journal: Global Journal of Business Research Pages: 27-38 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:27-38 Template-Type: ReDIF-Article 1.0 Author-Name: Faris Nasif ALShubiri Title: THE EFFECT OF WORKING CAPITAL PRACTICES ON RISK MANAGEMENT: EVIDENCE FROM JORDAN Abstract: Working capital does not receive a great deal of attention in financial decision making. Perhaps this is because it involves investment and financing for the short term. Nevertheless, it is an important component of firm financial management. This study investigates the relationship between aggressive/conservative working capital practices and profitability as well as risk. The sample includes 59 industrial firms and 14 banks listed on the Amman Stock Exchange for the period of 2004-2008. The results indicate a negative relationship between profitability measures and working capital aggressiveness, investment and financing policy. Firms have negative returns if they follow an aggressive working capital policy. In general, there is no statistically significant relationship between the level of current assets and current liabilities on operating and financial risk in industrial firms. There is some statistically significant evidence to indicate a relationship between standard deviation of return on investments and working capital practices in banks. Classification-JEL: E44, G11, G30, G31, G32 Keywords: Banks, Degree of aggressiveness/conservativeness, Working Capital Practices, Profitability, Market Rate of Return, Tobin’s q, Operating risk and Financial risk. Journal: Global Journal of Business Research Pages: 39-54 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:39-54 Template-Type: ReDIF-Article 1.0 Author-Name: Ting-Kun Liu Title: LOCAL MONOPOLY, NETWORK EFFECTS AND TECHNICAL EFFICIENCY – EVIDENCE FROM TAIWAN’S NATURAL GAS INDUSTRY Abstract: This paper examines the optimal number of natural gas firms in each region of Taiwan. In order to separate large local monopoly companies from the small ones, this paper constructs a firm-level panel data analysis for the industry covering the period 1995-1999. The optimal number of firms in each region is estimated by using the minimum efficient scale theory. In addition, a non-neutral stochastic frontier production function is used to detect the impact of the local monopoly, the network effects and cost structure on the natural gas firms’ technical efficiency. Classification-JEL: D42, L95, O30 Keywords: Local monopoly, network effect, non-neutral stochastic frontier production function, technical efficiency, natural gas industry Journal: Global Journal of Business Research Pages: 55-63 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:55-63 Template-Type: ReDIF-Article 1.0 Author-Name: Angela Coscarelli Author-Name: Domenica Federico Author-Name: Antonella Notte Title: EVIDENCE ON HOUSEHOLD SAVINGS IN ITALY Abstract: Recent financial crises have revealed the importance for the industrial and financial development of countries. In Italy, in the first quarter of 2009, growing concerns about personal economic prospects and the evolution of the labor market have impaired consumers confidence providing motivation for increasing precautionary savings. Generally the savings propensity of Italian households is undergoing a series of changes that are related not only to the dissemination of innovative financial instruments but also to the changing demographic structure of the population. The aim of this research is to analyze the relationship between population structure and Italian household savings. Data is collected on Italian household saving published by the Bank of Italy, and data related to some demographic and economic indicators. The study finds that, in the current Italian population, saving choices are markedly different between generations, geographic areas and qualifications. Classification-JEL: E21, G20, G21, J10, J11 Keywords: Household saving, demographic transition, financial data Journal: Global Journal of Business Research Pages: 65-75 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:65-75 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Godfrey Author-Name: Andrew Manikas Title: GOING GREEN: INCENTIVES FOR THE ELECTRIC POWER INDUSTRY Abstract: The electric power industry finds itself at a critical juncture—increased regulation of its emissions combined with a shift in U.S. energy policy to emphasize renewable energy. Industry executives must determine the timing and the extent of their investments in clean technology to preserve the use of coal as a viable option. It is time for those executives to question whether they should make investments merely to comply with new regulations or to go beyond meeting regulations to enhance the industry’s environmental (green) performance and reputation. We argue that an industry with a poor reputation in some areas (e.g., emissions) should want to improve its reputation. This could lead to enhanced profits for the industry, reduced pressure from regulatory bodies, and enhanced goodwill in the community. We investigate the company and industry-wide profit incentives for firms in the electric power industry to use clean versus dirty coal technology. Our model provides equations to show the total industry profit as a function of the participation percentage of players in the industry. We conclude with managerial implications and suggestions for future research. Classification-JEL: C02, C61, M10, O21 Keywords: Green, n-person prisoner’s dilemma, clean coal, tragedy of the commons Journal: Global Journal of Business Research Pages: 77-84 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:77-84 Template-Type: ReDIF-Article 1.0 Author-Name: Robert D. Green Author-Name: Ghensy Antoine Title: DO FEMALE CONSUMERS HAVE HIGHER ETHICAL PERCEPTIONS OF MARKETING? Abstract: Studies have found either females being more ethical than males or no significant differences. Ethical evaluations and judgments lead to intentions, and behavior. Furthermore, marketing activities create positive, e.g., ethical, or negative, e.g., unethical, perceptions of firms’ market offerings. The purpose is to make an initial study of consumers’ ethical perceptions of firms’ marketing strategy and to clarify prior findings of these somewhat inconsistent results of gender differences toward marketing ethics. Two propositions are presented with each under different cues and intensiveness levels. The conclusion is that under certain conditions – it depends – there are differences between male and female consumers’ ethical perception of firms’ marketing strategy. Classification-JEL: D11; M31 Keywords: Consumer behavior, ethical perceptions of marketing, gender differences of ethics Journal: Global Journal of Business Research Pages: 85-100 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:85-100 Template-Type: ReDIF-Article 1.0 Author-Name: Renata Myskova Title: A NEW MEASURE OF EMPLOYEE SATISFACTION Abstract: Employee satisfaction involves not only efficient usage of human resources, but also preservation and securing vital company information. Satisfaction lowers fluctuation of employees, positively influences productivity indicators, and thus overall company output. Therefore it supports long-term stability and competitiveness. The problem with evaluating and interpreting gathered knowledge is that it can be greatly influenced by subjective evaluator criteria. It this article a methodology for evaluating employee satisfaction is developed. The goal is to quantify employee satisfaction by means of a factor that indicates employee satisfaction. The indicator was empirically tested in a selected company in 2003 and 2009. Results indicate that the employee satisfaction indicator developed here has predicative ability. However, it is necessary to update partial indicators and their weights over time to reflect the current economic situation. Classification-JEL: J53, M12, O15 Keywords: employee satisfaction valuation survey, employee satisfaction indicator, company information securing Journal: Global Journal of Business Research Pages: 101-110 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:101-110 Template-Type: ReDIF-Article 1.0 Author-Name: Kenton B. Walker Author-Name: Gary M. Fleischman Author-Name: Eric N. Johnson Title: PERCEPTIONS OF MANAGEMENT ACCOUNTING SERVICES Abstract: Internal service quality is important to management accounting (MA) service providers and users to promote good communications, ensure high standards of service, and to support good organizational decision making. However, there is little research concerning MA quality issues despite the prevalence of service quality research in other service areas. The purpose of this paper is to investigate differences, and their sources, between perceptions of management accounting services as reported by accounting service users and providers in a corporate organization. We collected qualitative interview data from managers and staff from different functional units about specific MA services by asking questions about user-provider perceptions of MA services in the areas of communication and satisfaction while applying the internal customer service perspective. We supplement our analysis with quantitative data based on the interviews. Our findings show evidence of user-provider perception gaps and provide a foundation for management actions to improve MA service quality. Classification-JEL: M41 Keywords: Management accounting services, user-provider perceptions, service satisfaction, service quality Journal: Global Journal of Business Research Pages: 111-123 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-10.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:111-123 Template-Type: ReDIF-Article 1.0 Author-Name: Albert D. Spalding, Jr Title: MARK-TO-MARKET AND THE WIDENING GAP BETWEEN FINANCIAL AND TAX ACCOUNTING Abstract: In the wake of the recent financial meltdown, financial reporting under both North American generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS) has involved renewed attention to the structures and constraints of mark-to-market and similar expressions of fair value accounting. Despite some significant opposition by banks and other financial institutions (and their political champions), mark-to-market has enjoyed a relatively high level of support by securities regulators and by the accounting profession. Meanwhile, mark-to-market as a tax accounting concept has recently been subjected to a sustained attack by the Internal Revenue Service, courts, and legislators. This paper examines the recent Treasury regulations, revenue rulings, court cases, legislative proposals and other legal regulatory and administrative promulgations and pronouncements that comprise this renewed opposition to mark-to-market, in an effort to identify and articulate this widening gap between financial and tax accounting in the United States. Inductive research methods include legal research and analysis, and case studies. Classification-JEL: M4, M40, M41 Keywords: Tax accounting, fair value, mark-to-market, tax administration. Journal: Global Journal of Business Research Pages: 125-137 Volume: 5 Issue: 1 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n1-2011/GJBR-V5N1-2011-11.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:1:p:125-137