Template-Type: ReDIF-Article 1.0 Author-Name: Ya-Fang Wang Author-Name: Yu-Ting Huang Title: TYPES OF RESTATEMENT DECISIONS AND EX-ANTE RED FLAGS OF INTERNAL CONTROL QUALITY Abstract: We investigate the association between financial restatements and internal controls by examining whether voluntary restatement decisions are associated with internal control quality. We focus on companies’ voluntary restatements because they are more susceptible to the numerous provisions imposed by SOX. Empirical results show that voluntary restatement decisions are associated with internal control deficiencies, particularly when companies of voluntary restatements suffer higher restatement severity. Our findings imply that voluntary restatement decisions may interpret as signals of internal control quality. Classification-JEL: K22, M41, M49 Keywords: Internal Control, Voluntary Restatement Journal: Global Journal of Business Research Pages: 1-8 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:1-8 Template-Type: ReDIF-Article 1.0 Author-Name: Intiyas Utami Author-Name: Indra Wijaya Kusuma Author-Name: Gudono Author-Name: Supriyadi Title: HALO EFFECT IN ANALYTICAL PROCEDURE: THE IMPACT OF CLIENT PROFILE AND INFORMATION SCOPE Abstract: Many auditors use risk-based audit as a methodology that emphasizes assessing audit risk. A holistic perspective during strategic assessment encourages the auditor to focus on the big picture. They understand the industry and client business and determine the risk of material misstatement asan initial hypothesis about the client. Previous research found that a holistic perspective in strategic assessment causes a halo effect. This study focuses on the phenomena of a halo effect in analytical procedures, the impact of a client’s profile and scope of information that be presented to auditor in planning an audit. We propose that auditor judgment is impacted by the client’s profile and professional judgment will be different in a holistic perspective. This study is motivated by bounded rationality of individuals and uses representative heuristics to evaluate clients. The holistic opinion of the person tends to be consistent when analyzing detailed diagnostic information about the person. In an analytical procedure context, understanding of the industry and client business influences the extent to which they adjust account-level risk assessment. We propose two hypotheses. The first hypotheses is that the risk of material misstatement after presentation of client’s profile is positively correlated with the risk of material misstatement after get financial information of client. The second hypothesis is an auditor who obtains information about a client in the scope of holistic information would determine the risk of material misstatement lower than auditor who obtains information in scope of specific information. Data from laboratory experiment using various levels of auditor were collected. The finding suggest a halo effect is generated during analytical procedures and when auditors obtain information about the client in holistic scope. Classification-JEL: M42 Keywords: Halo Effect, Analytical Procedure, Scope of Holistic Information, Specific Scope Information Journal: Global Journal of Business Research Pages: 9-26 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:9-26 Template-Type: ReDIF-Article 1.0 Author-Name: Raghava Rao Gundala Author-Name: Hanin Khawaja Title: BRAND MANAGEMENT IN SMALL AND MEDIUM ENTERPRISE: EVIDENCE FROM DUBAI, UAE Abstract: The study aims to explore the owner-managers’ attitudes and opinions towards branding and brand management in small and medium enterprises across Dubai, UAE. The study also explores the causes that are acting as barriers to brand building. The data collected is through questionnaires from a sample of 62 respondents and interviews with Small and Medium Enterprises owners-managers. The research found that many Small and Medium Enterprises do not practice branding strategies and most of the respondents believe that incorporating branding strategies is insignificant for the success of Small and Medium Enterprises (SME). Classification-JEL: M31 Keywords: Small and Medium Enterprises (SMEs), UAE, Marketing, Branding, Strategies Journal: Global Journal of Business Research Pages: 27-38 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:27-38 Template-Type: ReDIF-Article 1.0 Author-Name: Li-Su Huang Author-Name: Cheng-Po Lai Title: KNOWLEDGE MANAGEMENT ADOPTION AND DIFFUSION USING STRUCTURAL EQUATION MODELING Abstract: Knowledge management facilitates the firms and employees to deliver better products and services and hence achieve competitive advantages and profits. The issues of knowledge management have drawn much attention form industry and academia. However, few reports have been found available investigating how knowledge management is adopted and diffused in organizations. This paper adopts structural equation modeling to investigate employees’ cognitions pertaining to knowledge management and their impacts on knowledge management activities based on Innovation Diffusion and Technology Acceptance Model with empirical data collected among the life insurance enterprises in Taiwan. The results indicate that perceived usefulness and subjective norm significantly influence the employees’ attitudes toward knowledge management, and the attitudinal factor significantly affects knowledge management practice. The findings assist organizations to recognize the value and associated obstacles of knowledge management. This paper also presents the instrument and comprehensive model which provides directions for future research. Classification-JEL: D83, M10 Keywords: Knowledge Management, Structural Equation Modeling, Life Insurance Journal: Global Journal of Business Research Pages: 39-56 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:39-56 Template-Type: ReDIF-Article 1.0 Author-Name: Yvan Nezerwe Title: SOUTHERN AFRICAN DEVELOPMENT COMMUNITY FREE TRADE AGREEMENT IMPACT ON SOUTH AFRICA STOCK RETURNS Abstract: This paper examines the impact of the Southern African Development Community free trade agreement on the stock returns on South Africa Stock returns. The free trade area was officially implemented on August 18th 2008. The available literature shows that free trade areas create positive returns for investors. In this study, the author examined daily data and used an OLS regression. The Event Window covered 90 days. The results showed that the free trade area had a positive impact on the stock returns in South Africa. Classification-JEL: F13, F15, F36 Keywords: South Africa, Event Studies, Free Trade Agreement Journal: Global Journal of Business Research Pages: 57-63 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:57-63 Template-Type: ReDIF-Article 1.0 Author-Name: Brad Sago Author-Name: Craig Hinnenkamp Title: THE IMPACT OF SIGNIFICANT NEGATIVE NEWS ON CONSUMER BEHAVIOR TOWARDS FAVORITE BRANDS Abstract: This research examines how negative corporate news in the form of a significant product related crisis impacts consumer behavior towards the company’s brand. This study analyzed changes in consumer behavior towards favorite brands after a significant product related news event happened to the makers of those brands. The research found that negative corporate news had some adverse impact on aspects of consumer affinity towards favorite brands, as well as other consumer behavior variables including, brand perception, price levels willing to pay, and willingness to purchase.. Classification-JEL: M31, M300 Keywords: Brand Equity, Brand Attachment, Brand Image, Consumer Behavior, Negative Corporate News Journal: Global Journal of Business Research Pages: 65-72 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:65-72 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Odongo Oronje Author-Name: Charles M. Rambo Author-Name: Paul A. Odundo Title: AGENCY LEVEL MANAGEMENT OF ROADS MAINTENANCE LEVY FUND: EVIDENCE FROM KENYA Abstract: The Road Maintenance Levy Fund came into existence in 1993 through an Act of Parliament, to facilitate the maintenance of public roads. The Kenya Roads Board administers the Fund and works in collaboration with various implementing agencies. However, anecdotal information suggests that the management of the fund at the agency level is constrained by various challenges, which no systematic academic investigation had ever documented. This study sought to identify key challenges experienced by road agencies to justify reforms towards better management and utilization of the Fund. We applied the cross-sectional survey design to source information from 146 key informants. The study found that political interference, 71.9%, procurement malpractices, 67.1%, funding inconsistency, 64.4%, understaffing, 54.1%, inconsistent communication (28.8%) and delay in auditing (40.4%) were the key challenges affecting operations of road agencies. Initiating appropriate institutional and procedural reforms targeting the Board and road agencies is likely to address the issues. The study recommends the need for new clearer rules, regulations and procedures to curb political interference, linkage between road agencies and enforcement agencies for the procurement law, electronic transfer of funds directly to agency accounts, human resource needs assessment to justify recruitment and rationalization. Classification-JEL: O16 Keywords: Road Maintenance Levy Fund, Kenya Roads Board, Road Agency, Political Interference, Procurement Malpractices, Funding Inconsistency Journal: Global Journal of Business Research Pages: 73-85 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:73-85 Template-Type: ReDIF-Article 1.0 Author-Name: Karen C. Castro-González Title: FINANCIAL LITERACY AND RETIREMENT PLANNING: EVIDENCE FROM PUERTO RICO Abstract: This study evaluates knowledge regarding financial and retirement planning in Puerto Rico. Most people seem to be unprepared to take charge of financial decisions and retirement. Lusardi and Mitchell (2006) study shows that many households are unfamiliar with even the most basic economic concepts needed to make savings and investment decisions. This study uses a questionnaire to evaluate financial knowledge and retirement planning in Puerto Rico. For the most part, this questionnaire was developed using Lusardi and Mitchell (2007, 2001a, 2011b) questionnaires. The results suggest a lack of knowledge in these matters; although respondents answered they get informed about financial and retirement matters. Most of them state they prepare a household budget but results suggest they do not use them appropriately. Many respondents are unfamiliar with even the most basic economic concepts needed to make savings and investment decisions. When asked about retirement, near 60 percent have tried to estimate the amount needed for retirement but less than 50 percent of them have tried to design a plan for their retirement. Of those who have made plans, less than 40 percent have met their goals and only 14 percent are very confident that they will have enough resources at retirement. Classification-JEL: D140, J260 Keywords: Retirement Planning, Financial Literacy Journal: Global Journal of Business Research Pages: 87-98 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:87-98 Template-Type: ReDIF-Article 1.0 Author-Name: Alexander Katkov Title: ECONOMIC GOALS RANKING APPROACH INCOMPARATIVE ANALYSIS OF ECONOMIC SYSTEMS Abstract: Three main economic systems that have coexisted during last 100 years: pure market, pure command, and mixed economies, have the same mission: to satisfy unlimited human needs and wants using a set of limited economic resources. Each of them is pursuing the same major economic goals: economic efficiency, economic growth, economic stability, economic equality and economic self-sufficiency. But these systems are very different. One reason why they are different, in our opinion, is the difference in the priorities and ranking order of these five major economic goals. This ranking order is different for every system. As a result, each system has established its own economic structure, has determined its own role for the government, and has used a different strategy for its function and economic development. In this paper I will compare the correlation of the perceived priorities in the ranking orders of economic goals of selected countries of the world: USA, China, Russia and Costa Rica, with ranking orders of so-called pure market, pure command, and ideal mixed economies using the Kendall rank correlation coefficient as the instrument for measuring the correlation between ideal orders and perceived real orders of economic goals. Classification-JEL: P5, P51, C40 Keywords: Economic Systems, Comparative Analysis, Ranking Approach Journal: Global Journal of Business Research Pages: 99-108 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:99-108 Template-Type: ReDIF-Article 1.0 Author-Name: Sam B.A. Tende Title: GOVERNMENT INITIATIVES TOWARD ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA Abstract: Government policies and programs promote entrepreneurship and investing in new ventures. This paper examines various government policies and programs towards the development of entrepreneurship in Nigeria. A random sample of 1,159 beneficiaries of EDP-NDE programs were selected and structured questionnaires were used to obtain information from the selected EDP-NDE beneficiaries. The result shows that government credit policies and programs have no significant effect on the development of entrepreneurial beneficiaries of the EDP-NDE program. We recommend that governments enforce laws and regulations that link institutional development and the entrepreneurial endeavor and to create an environment that will encourage entrepreneurs to develop business and new ventures. Classification-JEL: L26 Keywords: Government; Initiatives; Entrepreneurship Development; Nigeria Journal: Global Journal of Business Research Pages: 109-120 Volume: 8 Issue: 1 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v8n1-2014/GJBR-V8N1-2014-10.pdf File-Format: Application/pdf Handle: RePEc:ibf:gjbres:v:8:y:2014:i:1:p:109-120