Template-Type: ReDIF-Article 1.0 Author-Name: John Shon Title: ECONOMIC SANCTIONS AND THE SOURCE COUNTRY: HOW ECONOMIC SANCTIONS IMPOSED ON CHINA AFFECT THE U.S. Abstract: We perform an event study to assess one potential effect of economic sanctions on source countries. Specifically, for publicly-traded firms in the U.S. that report China as a geographic segment, we examine the stock price reaction to the Tiananmen Square Massacre, which occurred on June 4, 1989. Such firms experienced an economically- and statistically-significant negative market reaction to the Massacre. This finding suggests that the event increased the probability of economic sanctions against China, and that this increased probability adversely impacted at least one segment of the source-country’s population. Prior studies have examined the adverse effects to the target country (e.g., China), but have not been able to document systematic evidence of the effects to the source country (e.g., U.S.). Classification-JEL: F51, G14 Keywords: economic sanctions, Tiananmen Square Massacre, event study Journal: Global Journal of Business Research Pages: 1-9 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:1-9 Template-Type: ReDIF-Article 1.0 Author-Name: Guglielmo D’Amico Author-Name: Giuseppe Di Biase Author-Name: Raimondo Manca Title: IMMIGRATION EFFECTS ON ECONOMIC SYSTEMS THROUGH DYNAMIC INEQUALITY INDICES Abstract: In this paper we propose a stochastic model to analyze the time evolution of inequality within an economic system. The classical inequality indices, Herfindahl-Hirschman, Gini and Theil’s entropy, are thereby turned into a dynamic form. We show, by using a simulative approach, how it is possible to study the time evolution of inequality in a closed or open economy. We pay particular attention to immigration effects on the inequality. The model is able to manage different behaviors of the inequality indices and it may help decision makers calibrate the economic policies of inequality containment. Classification-JEL: C63 Keywords: Income distribution, Dynamic inequality index, semi-Markov reward processes. Journal: Global Journal of Business Research Pages: 11-25 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:11-25 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Wong Author-Name: Massimiliano Versace Title: CONTEXT SENSITIVITY WITH NEURAL NETWORKS IN FINANCIAL DECISION PROCESSES Abstract: Context modifies the influence of any trading indicator. Ceteris paribus, a buyer would be more cautious buying in a selling market context than in a buying market. In order for automated, adaptive systems like neural networks to better emulate and assist human decision-making, they need to be context sensitive. Most prior research applying neural networks to trading decision support systems neglected to extract contextual cues, rendering the systems blind to market conditions. This paper explores the theoretical development and quantitative evaluation of context sensitivity in a novel fast learning neural network architecture, Echo ARTMAP. The simulated risk and cost adjusted trading results compare very favorably on a 10-year, random stock study against the market random walk, regression, auto-regression, and multiple neural network models typically used in prior studies. By combining human trader techniques with biologically inspired neural network models, Echo ARTMAP may represent a new tool with which to assist in financial decision-making and to explore life-like context sensitivity. Classification-JEL: G11, G17 Keywords: Recurrent neural networks, context sensitivity, financial forecasting, investment decisions Journal: Global Journal of Business Research Pages: 27-43 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/REPEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:27-43 Template-Type: ReDIF-Article 1.0 Author-Name: Elvis Mujacevic Author-Name: Ana Vizjak Author-Name: Andrea Cindric Title: EVIDENCE ON THE IMPACT OF INTERNATIONAL FINANCE CORPORATION TOURISM INVESTMENT ON LATIN AMERICAN AND CARIBBEAN ECONOMIES Abstract: The International Finance Corporation (IFC) as a member of World Bank Group is the largest multilateral source of loan and equity financing for private sector projects in developing countries. Particular focus of International Finance Corporation is to promote economic development by encouraging the growth of productive enterprise and efficient capital markets in its member countries. The purpose of this article is to show the correlation between International Finance Corporation investments and economic development of the region, country, national economies and private enterprises or companies that make partnership with International Finance Corporation. The main object is to evaluate in details the connection and difference between International Finance Corporation and investments in different projects and the difference if the Organization is not investing in some projects or in the specific country. The research objective is to determine the role and significance of International Finance Corporation investments in tourism and hospitality industry on the example of Latin America and Caribbean, and analyze interrelationship between investments and development of specific country in which investments are made, and development of its whole economy and to draw attention on need for stronger implementation and importance of International Finance Corporation as a source of investment funds. Classification-JEL: F21; L83; O1; O16; P45 Keywords: International Finance Corporation, investments, tourism, hospitality, economic development, Latin America and Caribbean Journal: Global Journal of Business Research Pages: 45-60 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:45-60 Template-Type: ReDIF-Article 1.0 Author-Name: I Putu Sugiartha Sanjaya Title: THE INFLUENCE OF ULTIMATE OWNERSHIP ON EARNINGS MANAGEMENT: EVIDENCE FROM INDONESIA Abstract: Governance of public companies in Indonesia is concentrated in a particular group of controlling shareholder. The group is constituted in various ways like family, government, widely owned financial institutions, widely owned companies or others as a controlling shareholder. The controlling shareholder has two rights, control rights and cash flow rights. Differences between the two rights affect agency problems. Siregar documents that 99% of public companies in Indonesia have a concentrated ownership structure with a cut off of 10% control rights. Febrianto (2005) suggests that 92% of public companies have concentrated ownership structures in Indonesia at a cut off of 20%. Based on this phenomenon, the objective of this study is to investigate whether cash flow rights and leverage influence earnings management. This study collected data from Indonesian Stock Exchange regarding manufacturing companies during the period 2001-2007. There are 786 firms year at a cut off of 10% control rights. The results suggest that the cash flow leverage rights positively influence earnings management. The result indicates that larger differences between control rights and cash flow rights, imply it is easier for the controlling shareholder to manage earnings for his/her personal benefit. The controlling shareholder manipulates earnings to hide the acquired private benefits through expropriation. Classification-JEL: G32; M41 Keywords: Ultimate Ownership, Control Rights, Cash Flow Rights, Cash Flow Right Leverage, and Earnings Management Journal: Global Journal of Business Research Pages: 61-69 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:61-69 Template-Type: ReDIF-Article 1.0 Author-Name: Uzma Ashraf Author-Name: Irfan Munawar Gill Author-Name: Douglas W. Arner Title: A ROAD TO FINANCIAL STABILITY Abstract: This article provides a road map to financial stability. The roadmap is created by analyzing successive episodes of financial crisis at various points in time and the regulatory-cum-supervisory responses devised to reduce the chance of future threats to systemic stability. This article provides a glimpse of historical events that led to the establishment of Basel Committee and then critically evaluates committee’s efforts to make financial markets more certain and secure. This article also highlights the efforts of supervisory authorities in creating an effective regulatory framework through the Basel Capital accords. A critique of the Basel accords is sketched showing how Basel I and Basel II did not help contain successive episodes of financial crisis. This paper also draws upon Basel III regulations currently under deliberation and highlights vulnerable areas that may continue to threaten systemic stability even after the implementation of Basel III. Classification-JEL: G01, G15, G18, G28 Keywords: Financial Crises, International Financial Markets, Government Policy and Regulation, Regulation of International financial Institutions Journal: Global Journal of Business Research Pages: 71-79 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:71-79 Template-Type: ReDIF-Article 1.0 Author-Name: Angy Geerts Author-Name: Nathalie Veg-Sala Title: EVIDENCE ON INTERNET COMMUNICATION MANAGEMENT STRATEGIES FOR LUXURY BRANDS Abstract: Luxury brands and the Internet communication media seem to be inconsistent at first sight. On the one hand, luxury brands have to maintain the control of their elitism and their image; on the other hand, Internet is defined as a mass media of communication that is basically not selective. However, some years ago, all the luxury brands started to set up their own websites and some of them have gone as far as opening online shops. Then, regarding these paradoxes and a literature review, the purpose of this article is to analyze how luxury brands can manage scarcity and the use of Internet. To answer this question, a structural semiotic methodology on luxury brands and their communication is used. The purpose is to bring about a better understanding of how luxury brands use Internet in their communication strategy and how this media may or may not fit into a luxury brand’s management of the values of rarity. The methodology analyses factors that can impact the success or the failure of Internet communication for luxury brands. The results show that Internet is not entirely incompatible with luxury. It all depends on how it is used. Internet can strengthen the core values of brands thanks to original and interactive applications. But sometimes if not enough attention is paid, Internet may dilute the brand values. So many precautions have to be taken to avoid the dilution of brand narratives and some managerial implications are developed in this article, especially concerning e-shopping. Classification-JEL: M31, M37 Keywords: Brand management, Internet, Communication, Luxury, Semiotic analyses. Journal: Global Journal of Business Research Pages: 81-94 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:81-94 Template-Type: ReDIF-Article 1.0 Author-Name: Chiang-Chuan Lu Author-Name: Ruey-Feng Chen Title: DIFFERENCES IN TOURISM IMAGE AMONG CRUISE PASSENGERS ACROSS THE TAIWAN STRAITS Abstract: This study conducts an investigation of cruise passengers across the Taiwan Straits in an attempt to compare travel destination features among the three major port cities of Shanghai, Hong Kong, and Taipei (Keelung), and to obtain findings regarding passengers profiles. Data were collected in two phases, 2006 and 2010; 163 statistically valid samples were obtained. The results show that up to 66% of cruise passengers have distinct impressions of these three cities. In addition, the cross table of indicators in this study shows that the 10 indicators of destination attractions are evaluated positively. However, differences exist. Cruise passengers put more emphasis on reasonable expenses, convenient transportation, sufficient fundamental facilities, and abundant cultural and historical landscapes than on other impression indicators. Passionate and friendly residents, for example, is evaluated as relatively less important. The results of this study provide research findings for the shipping and tourism industries in both China and Taiwan. This study also hopes that some new directions be established for future studies of cruise passengers. Classification-JEL: M31 Keywords: Cruise Port, Cruise Passengers, Tourism Image Journal: Global Journal of Business Research Pages: 95-108 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:95-108 Template-Type: ReDIF-Article 1.0 Author-Name: W. Christian Buss Author-Name: Rosalie Kuyvenhofen Title: PERCEPTIONS OF EUROPEAN MIDDLE MANAGERS OF THEIR ROLE IN STRATEGIC CHANGE Abstract: The middle management role in strategy execution remains a critical issue in the success of strategic initiatives. The management literature has viewed middle managers as 1) implementers of topmanagement defined strategic changes, 2) relationship managers in strategic-change programs and 3) key strategic actors in the emergence of the strategic change. The paper summarizes the development of these three views of the strategic implementation role of middle management. The perceptions of experienced European middle managers are used to validate and augment the three formulations. Conclusions are drawn that yield 1) insights into the middle-management roles in strategic changes, 2) a preliminary typology of these middle-management roles and 3) an exploratory test of the sufficiency of this typology in covering the breadth of middle-management role behaviors in strategic change initiatives. Implications for further research on the role set of middle managers in the implementation of strategic-change initiatives are drawn. Classification-JEL: L25; M14 Keywords: Strategy implementation, middle-management roles, middle management Journal: Global Journal of Business Research Pages: 109-119 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:109-119 Template-Type: ReDIF-Article 1.0 Author-Name: Yu-Chi Wu Author-Name: Chin-Shih Tsai Author-Name: Chia-Yun Lo Title: CONSUMER PERSONALITY-PRODUCT IMAGE CONGRUENCE: EVIDENCE FROM TAIWAN Abstract: This study investigates the congruence between consumer personalities and product images based on the self-congruity perspective. In addition, consumer personality-product image congruence was examined to determine its influences on consumer product preference. Data were obtained from 335 respondents recruited from the customers of furniture stores such as IKEA and HOLA in Taiwan. A between-subjects experimental design was used, with t-tests and regression analysis. The finding showed that6 TABP consumers prefer products with a hard product image that gives strong, tough and strict feeling that is congruent with their own personality characteristics such as pressure for vocational advancement, aggressiveness, and desire for competitive achievement. In addition, TBBP consumers prefer products with a soft product image giving a mild, pleasant and gentle feeling, congruent with their own personality characteristics such as accommodating attitude, cooperativeness, and an easy going approach to life. In practice, determining how the consumer personality-product image congruence affects consumer product preference is helpful to manufacturers in designing products and stimulating product sales. Classification-JEL: M31 Keywords: Personality, product image, product preference, self-congruity. Journal: Global Journal of Business Research Pages: 121-127 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-10.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:121-127 Template-Type: ReDIF-Article 1.0 Author-Name: Payam Vaseghi Author-Name: Alireza Vaseghi Title: PREFERABLE EXECUTIVES’ COGNITIVE STYLE BY STAGE OF THE ORGANIZATION LIFE CYCLE Abstract: There are too many different perspectives in strategic decision-making process within the literature. The rational normative model suggests that organizations, first, based on internal and external analysis determine some objective criteria to achieve value-maximization, and then based on those objectives make decisions. However, many research findings indicated that rational model is moderated by many individual-level and environmental-level factors. At individual-level, rational decision-making model has been found to be affected greatly, by the characteristics of executives. Among those characteristics, cognition has significant effects on decision-making process. Executives have different cognitive style that makes them follow steps of decision making process -including information gathering, alternative generation, alternative evaluation, and decision finalizing- very differently. From the other side, organizations at different stages of organization life cycle (Introduction, Growth, Maturity and Decline) have different administration needs and required types of decisions. The aim of this conceptual paper is to find out the desirable cognitive style for executives, at each phase of organization life cycle. Additionally, strategy, as the third construct that is related two both cognitive style and organization life cycle help us to explain the cognition-life cycle linkage with more confidence. Based on literature, executives with similar cognitive profile are more likely to follow similar type of strategies; and at each stage of organization life cycle, specific types of strategy is dominant. These findings implicitly support our proposition, indicating that at each stage of organization life cycle, executives with specific cognition profile will outperform. The proposed framework in this paper links strategy, organization life cycle and cognitive style of management. Classification-JEL: M10 Keywords: cognitive style, organization life cycle, executives’ characteristics, strategic choice model Journal: Global Journal of Business Research Pages: 129-138 Volume: 5 Issue: 5 Year: 2011 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v5n5-2011/GJBR-V5N5-2011-11.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:5:y:2011:i:5:p:129-138