Template-Type: ReDIF-Article 1.0
Author-Name: Perunjodi Naidoo
Author-Name: Prabha Ramseook-Munhurrun
Author-Name: Ashwin K. Seetaram
Title: MARKETING THE HOTEL SECTOR IN ECONOMIC CRISIS EVIDENCE FROM MAURITIUS
Abstract: The rapid spread of the economic crisis has affected the number of international tourist arrivals and the hotel industry in many regions of the world with dwindling occupancy rates. Tourists are more likely to be price sensitive and change their buying patterns during periods of economic hardship. The economic crisis affected different regions of the world including the small island developing destination of Mauritius where uncertainty and doubts in the markets caused a decrease in tourist arrivals which resulted in a reduction in occupancy rates for its hotels. This study attempts to investigate the marketing mix strategies of product, price, place and promotion used by the hotel industry in these turbulent times to reduce decreasing occupancy rates. A survey was undertaken among 75 Marketing Managers of the hotel industry in Mauritius. As this is an exploratory study, the survey enabled the researcher to probe into the marketing mix strategies used by hotels during the economic crisis. The information gathered was analyzed using descriptive statistics and recommendations were suggested.  
Classification-JEL: M31 
Keywords: Economic Crisis, Hotel Sector, Marketing Mix, Mauritius, International Tourism
Journal: Global Journal of Business Research
Pages: 1-12
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-1.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:1-12

Template-Type: ReDIF-Article 1.0
Author-Name: Dun Jia
Title: TIME-SERIES ANALYSIS OF SWEDISH CENTRAL BANK’S INTEREST RATE OPERATION RULE
Abstract: This paper estimates a forward-looking Taylor-type interest rate reaction function for Swedish central bank’s inflation-targeting policy and a developed model with the exchange rate taken into account. Based on real-time quarterly macroeconomic time-series from Sweden in the first decade of this century, The evidence suggests that the Swedish central bank, Sveriges Riksbank, was not merely adjusting its repo rate in response to the changes in expected inflation and output deviations. An approach that is known as one of a central bank’s classic regulation tools to deal with domestic inflation first proposed by economist John Taylor. The results show that the targeted exchange rate could be Sveriges Riksbank’s third policy concern in real practice, though in an extraordinarily implicit way. Swedish central bank’s underlying emphasis upon exchange rate stability may shed light on why the inflation record of Sweden in the recent years missed its monetary policy objective. However, the argument that unyielding exercise of the classic Taylor Rule would enhance policy effectiveness in a small open country like Sweden remains in question.  
Classification-JEL: C32; E52; E58; G28  
Keywords: Exchange Rate, Inflation, Monetary Policy, Taylor Rule
Journal: Global Journal of Business Research
Pages: 13-25
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-2.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:13-25

Template-Type: ReDIF-Article 1.0
Author-Name: WaQar I. Ghani
Author-Name: Omair Haroon 
Author-Name: Junaid Ashraf
Title: BUSINESS GROUPS’ FINANCIAL PERFORMANCE: EVIDENCE FROM PAKISTAN
Abstract: We examine comparative financial performance of business groups in Pakistan employing samples of firms listed on the Karachi Stock Exchange. Our descriptive results show that group firms are larger in size and have higher operating profits. Group firms also exhibit lower sales growth variability over a five year period than non-business group firms. Our statistical analysis reveals that business group firms have significantly higher liquidity and significantly lower financial leverage than the non-business group firms. More importantly, business group firms are more profitable (higher ROA) than non-group firms. Our results based on superior financial performance of business groups indicate that business groups in Pakistan are efficient economic arrangements that substitute for missing or inefficient outside institutions and markets, hence supporting the market failure argument.  
Classification-JEL: G00, G32 
Keywords: Business Group, Financial Performance, Emerging Economy, Pakistan.
Journal: Global Journal of Business Research
Pages: 27-39
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-3.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:27-39

Template-Type: ReDIF-Article 1.0
Author-Name: Rogelio J. Cardona
Title: CHANGES IN EQUITY COMPENSATION PLANS: EVIDENCE FROM THE U.S. CAPITAL MARKETS
Abstract: The Financial Accounting Standards Board and the United States Congress enacted new legislation and regulations in 2002 requiring corporations to recognize stock option grants as an expense (voluntarily) on their financial statements. In 2004 option, expensing became mandatory. This paper describes the different changes made by a sample of U.S. public corporations to their Equity compensation plans after the mandatory expensing of stock options went into effect. The results suggest that firms seem to have reacted to the required option expensing by accelerating the vesting of their outstanding options with a contemporaneous reduction in the use of stock options as a compensation incentive. Executive (employee) compensation practices seem to have shifted from stock option grants to performance and restricted stock awards. An unexpected finding of this investigation was observing that besides employees and Board directors, non-IT firms are also granting equity compensation to non-employees such as vendors and consultants.  
Classification-JEL: G38; J33; M41
Keywords: Equity compensation plans, stock options, performance stock, restricted stock
Journal: Global Journal of Business Research
Pages: 41-52
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-4.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:41-52

Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Jurickova Heglasova
Title: CREATING VALUE THROUGH CORPORATE DEBT CONTRACTS RESTRUCTURING
Abstract: The purpose of this article is to analyze the possibility of financial restructuring, featuring changes to the structure of the debt contracts. The firms being restructured are unprofitable or overleveraged. The theoretical findings are compared with restructuring possibilities applicable in Czech Republic. The analysis concentrates especially on the legal environment of the country, possibility to provide debt restructuring under the court supervision. The paper includes statistics on application of the new Insolvency Act. No. 182/2006 Coll., valid from January 2008. The paper empirically analyzes companies which were subject to the Insolvency Act. and in case of their reorganization determines how much the value of the company was increased.  
Classification-JEL: G34. 
Keywords: financial restructuring, debts, company's value.
Journal: Global Journal of Business Research
Pages: 53-61
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-5.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:53-61

Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Wang
Title: THE EFFECTS OF TAIWAN DIRECT INVESTMENT IN CHINA ON TAIWAN
Abstract: Foreign direct investment (FDI) is an important area of research in Finance. Taiwan capital is flowing to China at an increasing rate. Taiwan direct investment in China has reached a sum of more than U.S. $200 billion. Taiwan now suffers a serious economic downturn and high unemployment, when Taiwanese firms close their factories at home and move them to China. In addition, the Taiwan government recently lifted all controls on capital flows and transfer of technology from Taiwan to China. This policy action has further worsened economic conditions in Taiwan. The concerns of Taiwan’s business over dependence on China set in motion political events and the military threat of annexation by China. These events prompted this study. Using a survey approach, the study aims identify major effects of Taiwan direct investment in China on Taiwan’s economy and methods for coping with the effects. The study also analyzes some related issues related to government policies and administrative efficiency. The model can serve as a reference source for policy makers to cope with the ill effects of FDI.  
Classification-JEL: F21 
Keywords: Taiwan Direct Investment (TDI), Foreign Direct Investment (FDI), Economic Cooperation Framework Agreement (ECFA)
Journal: Global Journal of Business Research
Pages: 63-72
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-6.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:63-72

Template-Type: ReDIF-Article 1.0
Author-Name: Zhengwei Ma
Author-Name: Luying Ma
Author-Name: Jinkun Zhao
Title: EVIDENCE ON E-BANKING QUALITY IN THE CHINA COMMERCIAL BANK SECTOR
Abstract: In the global bank sector, cost savings potential and speed of information transmission are reason to rapidly develop E-banking. In China, there are 130 commercial banks, most of which supply E-banking service to their customers. This paper analyzes factors that influence E-banking quality in the commercial bank sector in China. The results will help financial organizations formulate appropriate marketing strategies for E-banking, and commercial banks to increase customer satisfaction. Based on the literature review, a research model was developed. Eleven factors were selected from nine areas to gain a better understanding of E-banking service quality. Multiple regression was used to analyze the data. This result shows that Security, Reputation and Customer Service are the major factors affecting the adoption of E-banking services in China. Furthermore, the results show that 20% of sample respondents have already adopted E-banking services is encouraging and suggests a bright future for virtual-banking in China. 
Classification-JEL: G2 
Keywords: Commercial bank, E-banking quality, China, Dimensions
Journal: Global Journal of Business Research
Pages: 73-83
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-7.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:73-83

Template-Type: ReDIF-Article 1.0
Author-Name: Maurizio Rija
Author-Name: Paolo Tenuta
Title: FORMS OF ASSOCIATION OF ITALIAN MUNICIPALITIES: EMPIRICAL EVIDENCE
Abstract: For several decades a process of transfer of functions and services from the highest levels of government to local authorities has occurred in Italy. This has resulted in new and broader responsibilities for Italian municipalities that are, in most cases, small (called "Dust Commons"). This presents new challenges for these municipalities who often have difficulty managing the sevies and in strategic planning to devellop appropriate strategies. A real risk in recent years is that functions transferred to lower levels of government can not be carried out quantitatively and qualitatively with incurring excessive costs. One pontential solution to this problem is implementation of associated forms of services and functions management whereby municipalities cooperate in providing the services. The aim of this paper is to show how this form of partnership can reduce costs and improving the effectiveness of services.  
Classification-JEL: M10 
Keywords: Municipalities, Unions of Municipalities
Journal: Global Journal of Business Research
Pages: 85-96
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-8.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:85-96

Template-Type: ReDIF-Article 1.0
Author-Name: Peter Harris
Author-Name: Paul R. Kutasovic
Title: DID EXIT PRICING UNDER FASB 157 CONTRIBUTE TO THE SUBPRIME MORTGAGE CRISIS?
Abstract: The current financial crisis has revived the debate surrounding fair value accounting especially in the case of illiquid markets and for assets that lack marketability. Many analysts argue that it was issuance of FASB 157 (ASC 820) and the use of fair value accounting that caused the financial crisis to spread from the subprime mortgage market to the rest of the economy. The move by FASB to present all financial assets at fair market value is appropriate as this improves the reliability, relevance and transparency of the financial statements. Presenting assets at historical cost when unrealized losses are material is not proper financial reporting and distorts the current financial position of a firm. However, the exit price requirement under FASB 157 is too strict and results in an overly conservative financial presentation. The use of exit prices to define fair value was the problem, had a negative effect on the economy, and contributed to the financial crisis as it forced firms to overstate their losses. Instead of exit prices, the IFRS definition of fair market value should be adopted. The IFRS definition does not use entry or exit price but is an arm’s length exchange price between unrelated parties.  
Classification-JEL: G10, G21, M41 
Keywords: Fair-value accounting, FASB 157, ASC 820, IFRS definition of fair value, mark-to-market, subprime mortgage crisis
Journal: Global Journal of Business Research
Pages: 97-104
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-9.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:97-104

Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Manikas
Author-Name: Michael Godfrey
Title: ENABLING TRIPLE BOTTOM LINE COMPLIANCE VIA PRINCIPAL-AGENT INCENTIVE MECHANISMS
Abstract: A corporation that wants to fully embrace sustainability must address all three pillars of the triple bottom line. Among profit, planet, and people, it is this last category that is hardest to measure directly. When a company has remote locations and cannot directly observe effort, the compliance must be inferred from other metrics. We introduce a game-theoretic model to influence plant compliance to corporate goals.  
Classification-JEL: C02, C61, M10, O21 
Keywords: Sustainability, Triple-Bottom-Line, Principal-Agent
Journal: Global Journal of Business Research
Pages: 105-114
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-10.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:105-114

Template-Type: ReDIF-Article 1.0
Author-Name: Mine Aysen Doyran
Author-Name: Juan J. DelaCruz
Title: LESSONS FOR LATIN AMERICA FROM THE ASIAN TEXTILE INDUSTRY EXPERIENCE
Abstract: This paper examines recent statistics in US textile and clothing trade with selected Latin American and Asian economies, comparing data on textile exports from the top 10 suppliers between 1995 and 2003. It evaluates the initial effects of the Agreement on Textiles and Clothing (ATC) of 1995, which provided for a 10-year quota phase-out process for WTO member countries. Since its accession into WTO, China has replaced Mexico as the top supplier of goods to the US. In addition, a brief comparison with other international experience of emerging economies is provided in order to elucidate the relevance of the textile industry in the region and world economy. This empirical work can be the starting point for policy-makers to design long-term policies that are needed for Latin America to compete successfully in the US market and promote the restructuring of clothing and textile production at the country level.  
Classification-JEL: F13, F14 
Keywords: Textile Industry, Asian Economies, Latin America, International Trade
Journal: Global Journal of Business Research
Pages: 115-129
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-11.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:115-129

Template-Type: ReDIF-Article 1.0
Author-Name: Peter Géczy
Author-Name: Noriaki Izumi
Author-Name: Koiti Hasida
Title: FOUNDATIONS FOR EFFECTIVE PORTAL SERVICE MANAGEMENT
Abstract: Organizational portals are vital parts of knowledge-intensive organizations. They play several critical roles: a) provide a platform for deployment of web-based services; b) envelop distributed internal resources; and c) present a centralized access to resources and services. Portal services often incorporate digitalized organizational business processes. Digitalization enables automation of business processes and facilitates improved management and operating efficiency of organizations. Despite advancements in technology and significant investments, it is commonly observed that web services implementing business processes have low usability. Generally, low usability results from misalignment between natural characteristics of human interactions with services in digital environments and their design and implementation. Human-service interaction analytics expose hidden difficulties and enable effective innovation and management of portal services. We present pertinent managerial implications of analytic findings from a case study of a large-scale organizational portal with a significant number of services. The findings provide actionable knowledge for effective evidence-based management, reengineering and innovation of portal services.  
Classification-JEL: M15; O32; O33; L86; L89 
Keywords: analytics, portals, web services, management, knowledge-intensive organizations, actionable knowledge discovery.
Journal: Global Journal of Business Research
Pages: 131-141
Volume: 5
Issue: 2
Year: 2011
File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n2-2011/GJBR-V5N2-2011-12.pdf
File-Format: Application/pdf
Handle: RePEc:ibf:gjbres:v:5:y:2011:i:2:p:131-141