Template-Type: ReDIF-Article 1.0 Author-Name: Rashiqa Kamal Title: New Evidence from S&P 500 Index Deletions Abstract: Kamal, Lawrence, McCabe, and Prakash (2012) argue that information asymmetry exists in the financial markets and additions to S&P 500 Index convey new information about the added firms to the uninformed investors. They further argue that because of important changes and regulations in the financial markets, like, Regulation Fair Disclosure, Sarbanes-Oxley Act, and Decimalization of the exchanges, in or after the year 2000, information asymmetry has decreased. In support of their arguments, they find that for additions, the positive abnormal returns on announcement day have decreased, and added stocks’ liquidity changes have become marginal in the post-2000 period. We extend their work and for a sample of deletions between October 1989 and December 2011, we find that the negative abnormal returns on the announcement day are not significantly different in the post-2000 period, but the negative returns are reversed earlier in the post-2000 period. Contrary to our expectation, liquidity changes after deletion are significant in the post-2000 period. However, when we divide our sample into optioned versus nonoptioned stocks and control for other factors that affect liquidity, we find that liquidity changes after deletion are insignificant in the post-2000 period. Classification-JEL: G12,G14 Keywords: S&P 500 Deletions, Information Asymmetry, Liquidity Changes Journal: The International Journal of Business and Finance Research Pages: 1-10 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:1-10 Template-Type: ReDIF-Article 1.0 Author-Name: Dan Lin Author-Name: Lu Lin Title: The Interplay between Director Compensation and CEO Compensation Abstract: This paper empirically examines the determinants of director compensation and CEO compensation and investigates whether director compensation has an effect on CEO compensation. Based on 713 firms (or 2,852 firm-years) between 2007 and 2010, we find that CEO tenure is related to the ability of the CEO in influencing the board’s pay determination process. However, sitting on the board does not strengthen the CEO’s power over the board during the pay negotiation process. More importantly, we find evidence of a mutual back scratching relationship between CEO and the board of directors. Excess director compensation and CEO compensation are positively related. The results thus support Jensen’s (1993) argument that as the CEO is involved in the selection of directors, the monitoring role of the board of directors becomes less effective. Classification-JEL: J33, M52 Keywords: Director Compensation, CEO Compensation, Board of Directors Journal: The International Journal of Business and Finance Research Pages: 11-26 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:11-26 Template-Type: ReDIF-Article 1.0 Author-Name: Ya-Hui Wang Author-Name: Cing-Fen Tsai Title: The Relationship Between Brand Image and Purchase Intention: Evidence from Award Winning Mutual Funds Abstract: Mutual funds represent one of the most popular investment instruments. Some institutions offer fund awards to recognize strong performing funds and fund groups that have shown excellent returns relative to their peers. Many fund companies also use awards won in their advertising and marketing material. This brings rise to the question: Do investors think award winning funds have a better brand image? Can awards increase investors’ purchase intention? The purpose of this study is to investigate the relationships and effects of brand image, perceived quality, perceived risk, perceived value, and purchase intention, as well as to examine the effects of demographic variables on these five dimensions. The research findings show significant relationships between brand image, perceived quality, perceived value, and purchase intention. In addition, some demographic variables may lead to significant differences in these five dimensions. Finally, the results from structural equation modeling show that there are positive and direct effects among brand image, perceived quality, perceived value, and purchase intention. Brand image indeed increases investors purchase intentions. The purchase intention is affected mainly by perceived quality, not by perceived risk. Classification-JEL: G1, M1, M5 Keywords: Brand Image, Perceived Quality, Perceived Risk, Perceived Value, Purchase Intention Journal: The International Journal of Business and Finance Research Pages: 27-40 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:27-40 Template-Type: ReDIF-Article 1.0 Author-Name: Ikechukwu Kelikume Author-Name: Adedoyin Salami Title: Time Series Modeling and Forecasting Information: Evidence from Nigeria Abstract: A major concern of entrepreneurs and monetary authorities in Nigeria in the past decades was successful prediction general price level movements. The results allow successful planning on the part of monetary authorities and continued profit drive on the part of entrepreneurs and investors. This study uses a univariate model in the form of Autoregressive Integrated Moving Average model developed by Box and Jenkins and multivariate time series model in the form of Vector Autoregressive model to forecast inflation for Nigeria. This paper use changes in monthly consumer price index obtained from the National Bureau of Statistics and the Central bank of Nigeria over the period 2003 to 2012 to predict movements in the general price level. Based on different diagnostic and evaluation criteria, the best forecasting model for predicting inflation in Nigeria is identified. The results will enable policy makers and businesses to track the performance and stability of key macroeconomic indicators using the forecasted inflation. Classification-JEL: E3, E17, E31 Keywords: Modeling Inflation, Forecasting, ARIMA, VAR Journal: The International Journal of Business and Finance Research Pages: 41-51 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:41-51 Template-Type: ReDIF-Article 1.0 Author-Name: Turki SF Alzomaia Title: Capital Structure Determinants of Publicly Listed Companies in Saudi Arabia Abstract: This paper investigates the capital structure of listed firms in Saudi Arabia, using firm specific data to study the determinants of leverage. The study is based on an analysis of the capital structure of 93 Saudi listed companies. The study extends from 2000 to 2010 and employs cross-sectional pool data methodology. The results suggest there exists a positive relationship between size, growth of the firm and leverage. On the other hand, the results show there are negative relationships between tangibility of assets, profitability, risk and leverage. Classification-JEL: G32 Keywords: Capital Structure Determinants, Leverage, Saudi Arabia, Tradeoff Theory,Pecking Order Theory Journal: The International Journal of Business and Finance Research Pages: 53-67 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:53-67 Template-Type: ReDIF-Article 1.0 Author-Name: Kofi Adjei-Frimpong Author-Name: Christopher Gan Author-Name: Baiding Hu Title: Cost Efficiency of Ghana's Banking Industry: A Panel Data Analysis Abstract: This study analyzes the efficiency of the banking industry in Ghana over the period of 2001–2010 using the data envelopment analysis. The study investigates the impact of size, capitalization, loan loss provision, inflation rate and GDP growth rate on Ghana’s bank efficiency using both static and dynamic panel data models. The static model is estimated by the fixed effects estimator whereas the dynamic mdoel is estimated by the two step system GMM estimator. The results suggest that Ghana banks are inefficient. This study reveals that well-capitalized banks in Ghana are less cost efficient. In addition, bank size has no influence on bank cost efficiency suggesting that larger banks in Ghana have no cost advantages over their smaller counterparts. The findings also exhibit that loan loss provision ratio has no effect on bank efficiency in Ghana. This study finds GDP growth rate negatively influences bank cost efficiency and that lagged cost efficiency tends to persist from year to year. Classification-JEL: E44, E50, E60 Keywords: Data Envelopment Analysis, Bank Efficiency, Cost Efficiency Journal: The International Journal of Business and Finance Research Pages: 69-86 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:69-86 Template-Type: ReDIF-Article 1.0 Author-Name: Yi-Fang Yang Author-Name: Lee-Wen Yang Author-Name: Yahn-Shir Chen Title: Effects of Service Innovation on Financial Performance of Small Audit Firms in Taiwan Abstract: This study examines the effects of service innovation on financial performance of proprietorship audit firms in Taiwan. This study divides total sample into three business strategy categories, including conventional, non-conventional, and general firms. Non-conventional firms have the highest degree of service innovation followed by general firms. Conventional firms have the lowest degree of service innovation. Empirical results indicate that non-conventional firms financially outperform general firms, and the latter outperforms conventional firms. Classification-JEL: M42 Keywords: Service Innovation, Financial Performance, Audit Firms Journal: The International Journal of Business and Finance Research Pages: 87-99 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:87-99 Template-Type: ReDIF-Article 1.0 Author-Name: Khaled Aljifri Author-Name: Abdulkareem Alzarouni Author-Name: Chew Ng Author-Name: Mohammad Iqbal Tahir Title: The Association between Firm Characteristics and Corporate Financial Disclosures: Evidence from UAE Companies Abstract: This paper provides empirical evidence of the impact of firm specific characteristics on corporate financial disclosures amongst UAE companies. A total of 153 public, joint-stock companies, listed and unlisted, were incorporated at the time of study. Both descriptive statistics and multiple regression analyses are used to test the relationship between the characteristics of UAE firms and the extent of their financial disclosure. Eight hypotheses were established to examine the relationship between a number of explanatory variables (namely, type of industry, listing status, return on equity, liquidity, market capitalization, foreign ownership, non-executive directors, and audit committee) and the extent of disclosure in corporate annual reports. The results of this study show that listing status, industry type, and size of firm are found to be significantly associated with the level of disclosure. This finding not only provides support for previous studies, but also is of relevance to those in the UAE who want to understand corporate disclosure and should also be of interest to UAE user-groups. Conclusions drawn from this study may be of interest to policy makers and regulators who want to improve corporate financial disclosure in their countries. Classification-JEL: M4, M48, M49 Keywords: Corporate Financial Disclosure, Firm Characteristics, UAE Firms, Corporate Annual Reports Journal: The International Journal of Business and Finance Research Pages: 101-123 Volume: 8 Issue: 2 Year: 2014 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v8n2-2014/IJBFR-V8N2-2014-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:8:y:2014:i:2:p:101-123