Template-Type: ReDIF-Article 1.0 Author-Name: Vijay Kumar Vishwakarma Title: FORECASTING REAL ESTATE BUSINESS: EMPIRICAL EVIDENCE FROM THE CANADIAN MARKET Abstract: In this paper, we compare the out-of-sample forecasting ability of three ARIMA family models: ARIMA, ARIMAX, and ARIMAX-GARCH. The models are tested to forecast turning points and trends in the Canadian real estate index using monthly data from April 2002 to March 2011. The results indicate that the ARIMAX model, which includes exogenous macroeconomic variables such as the gross domestic product, the consumer price index, the difference in long-term and short-term interest rates, and the exchange rate of the Canadian dollar against the US dollar and their lags, provides the best out-ofsample forecasts. Overall, the models are suitable only for short-term forecasts. Classification-JEL: R3, G01, O51, C53 Keywords: Real Estate, Financial Crisis, Canada, ARIMAX, GARCH Journal: Global Journal of Business Research Pages: 1-14 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:1-14 Template-Type: ReDIF-Article 1.0 Author-Name: Adora D. Holstein Author-Name: Brian O’Roark Author-Name: Min Lu Title: DETERMINANTS OF THE HOME PRICE- INCOME RELATIONSHIP: 1990-2011 Abstract: Many studies have attributed the housing bubble or misalignment of home price and income to inefficient markets, irrational behavior, excessive leverage, financial innovations, macroeconomic imbalances, the Fed’s easy money policy, and repeal of the Glass-Steagal Act. However, no study has actually looked at data for the past two decades to determine whether these factors do explain the movement in the home price relative to income in the United States. This study uses reduced form models to find the determinants of the income/home price ratio using data over the period 1990 to 2011. We find empirical support that lagged values of household debt and foreign indirect investment are significant predictors of movements in the income/home price ratio. Our results confirm that although the conventional mortgage rate has a stronger negative association with the income/home price ratio, the federal funds rate is a significant determinant as well. This supports the view that keeping the federal funds rate target too low for too long could prolong a misalignment between disposable income and home price. This study also identifies the inception of a housing bubble on a national scale by using the 20-year trend in a home affordability index as a benchmark. Classification-JEL: E50, G18 Keywords: housing bubble, debt, macroeconomic imbalance, monetary policy, financial deregulation Journal: Global Journal of Business Research Pages: 15-30 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:15-30 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel Yaw Akomea Author-Name: Michael Adusei Title: BANK RECAPITALIZATION AND MARKET CONCENTRATION IN GHANA’S BANKING INDUSTRY: A HERFINDAHL-HIRSCHMAN INDEX ANALYSIS Abstract: Using Concentration Ratio and Herfindahl-Hirschman Index techniques, the paper investigates the concentration levels of the banking industry in Ghana and forecasts the future concentration levels of the industry should consolidations triggered by the new bank recapitalization policy occur in the industry. The study finds that the HHI indices provide evidence for the contention that for the past eight years the banking industry in Ghana has been highly competitive with no signs of concentration. Evidence also exists to underpin the conclusion that any consolidation of four banks or less stimulated by the new bank recapitalization policy will not upset the existing market concentration. However, consolidation of five or more banks will culminate in high concentration which will be inimical to the interest of customers. The paper, therefore, recommends that, all things being equal, policy makers should permit consolidation of four or less banks if that is the only way the banks will meet the new bank recapitalization requirement. Classification-JEL: D40, D41, E02, G21 Keywords: Banking, Market Concentration, Herfindahl-Hirschman Index, Ghana Journal: Global Journal of Business Research Pages: 31-45 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:31-45 Template-Type: ReDIF-Article 1.0 Author-Name: Te-Kuang Chou Title: EFFECTS OF INSIDER SHAREHOLDING ON CORPORATE GOVERNANCE IN EMERGING MARKETS: EVIDENCE FROM TAIWAN Abstract: Ownership structure is one of the key determinants constituting internal corporate governance, which is especially crucial in emerging markets. This study explores the effects of insider shareholding, an obvious characteristic of ownership structure, on corporate governance. The empirical results demonstrate partial support for the convergence-of-interests argument. This means that a higher insider shareholding structure tends to benefit corporate governance. However, the results also show possible moderating effects from different industrial settings; further studies are needed to deepen the understanding of these effects. Policy implications are provided for legislation and investing in emerging markets. Classification-JEL: G32; G34; G38 Keywords: corporate governance, ownership structure, insider shareholding, agency theory Journal: Global Journal of Business Research Pages: 47-58 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:47-58 Template-Type: ReDIF-Article 1.0 Author-Name: YonJin Suh Author-Name: JaeJoon You Author-Name: PhilSoo Kim Title: THE EFFECT OF INNOVATION CAPABILITIES AND EXPERIENCE ON CROSS-BORDER ACQUISITION PERFORMANCE Abstract: Due to the integration of the European market, the globalization process, and the rising importance of technological innovation, there has been a surge in cross-border acquisition strategy for European firms. Innovative technology and experience are the main drivers behind firms’ acquisition imperatives to realize sound performance. Based on the resource-based view and organizational learning perspective, our empirical research focuses on the effects of European firms’ innovative capabilities and experience on their acquisition performance when targeting United States firms. The results indicate that both innovative capabilities and experience have a positive effect on acquisition performance. This suggests that in order to have successful acquisition performance, European firms need to reinforce their innovative capabilities and commit to accumulating experience in articulating cross-border acquisition strategy. In addition, we discuss the interaction effect that relatedness has on the acquisition performance of European firms. Our findings indicate that related acquisitions associated with redundant or similar innovative capabilities and acquisition experience hinder acquisition performance. We posit that relatedness has a negative moderating effect on acquisition performance. Classification-JEL: M16 Keywords: Resource-based view, organizational learning, cross-border acquisition, innovation capability, acquisition experience, relatedness. Journal: Global Journal of Business Research Pages: 59-74 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:59-74 Template-Type: ReDIF-Article 1.0 Author-Name: Chris Y. Tung Author-Name: Chun-chieh Wang Title: LUMP-SUM QUOTA BONUSES AND OTHER VERTICAL RESTRAINTS WITH COURNOT RETAILERS Abstract: Lump-sum quota bonuses are a specific type of quota bonus that provides a lump-sum transfer from a manufacturer to a retailer when the retailer’s sales exceed a pre- determined quota. This paper explores whether lump-sum quota bonuses and two other vertical restraints, two-part tariffs and resale price maintenance, can resolve the double marginalization problem when the market size is uncertain. It emerges that only lump-sum quota bonuses can always resolve the double marginalization problem in our two-state case. Classification-JEL: L42, L13, D89 Keywords: Vertical Restraints, Lump-Sum Quota Bonuses, Cournot Competition, Uncertain Market Size Journal: Global Journal of Business Research Pages: 75-88 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:75-88 Template-Type: ReDIF-Article 1.0 Author-Name: Julián Pando García Author-Name: Virginia Rincón Diez Title: SALES FORCE’S ATTITUDES TOWARD TECHNOLOGY: EVIDENCE FROM SPAIN Abstract: Technology has changed company activity. It has equipped companies with elements which give them better and greater knowledge of their target audiences and clients. Within the commercial scope of organizations, it is important to understand which factors explain the use of technology. In this project, a study on vendors’ attitude toward technology and on their use of technology is developed. We analyse different sales force opinions toward technology and develop a segmentation of vendors, characterizing each segment identified based on the variables used. The results show, technological use is related to the sales force job, the industry, the size of the organization, in relevance to the different vendors’ segments. Classification-JEL: M31 Keywords: Sales Force, Attitudes Toward Technology, Market Segmentation Journal: Global Journal of Business Research Pages: 89-100 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:89-100 Template-Type: ReDIF-Article 1.0 Author-Name: Gurudeo Anand Tularam Author-Name: Bhuvaneswari Subramanian Title: MODELING OF FINANCIAL CRISES: A CRITICAL ANALYSIS OF MODELS LEADING TO THE GLOBAL FINANCIAL CRISIS Abstract: The causes of financial crises are multiple but the models of financial crises revolve around four generational models. In this paper, the authors analyzed these models and highlighted the fact that each model was adapted to specific situations to explain the financial crises faced rather than being visionary or systematic in approach. These models suggest crises may develop without significant change in economic fundamentals, since policies usually respond to changes in economy and agents consider these when forming expectations. Therefore, any set of indicators together may not provide an over-all picture but interactions among indicators should be pursued. Common sense and guesswork is used but is not sufficient for representing real behavior. Modeling suggests that stressed or fraudulent companies should be removed to avoid further crises. While the new models handle a wider range of nonlinear behavior, little new work is in fact evident. Apart from a patchwork-like approach of the past, financial or currency crises modeling has not been dealt with systematically. A new way thinking is not emerging suggesting a visionary and dynamic robust mathematical modeling approach is needed with attention to the many possible risks. Classification-JEL: G01 Keywords: Applied Mathematics, Generational Models, Financial Crisis Models, Macroeconomic Fundamentals, Financial Indicators Journal: Global Journal of Business Research Pages: 101-124 Volume: 7 Issue: 3 Year: 2013 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v7n3-2013/GJBR-V7N3-2013-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:7:y:2013:i:3:p:101-124