Template-Type: ReDIF-Article 1.0 Author-Name: Yoko Mimura Author-Name: Kim Love-Myers Author-Name: Janine E. Aronson Title: RELATIONSHIP BETWEEN FEMALE ILLNESS AND SAVINGS: EVIDENCE FROM JAPANESE WOMEN Abstract: Unexpected life events, such as the onset of illness, can alter our ability to follow the life cycle model of personal financial planning, yet there are limited studies at a micro-level examining such impacts among households in Japan. We assessed the association between the onset of illness and the presence and amount of financial savings among marrie7d and single middle-aged women, using the Japanese Panel Survey of Consumers (2005-2009) and Analysis of Covariance (ANCOVA). Compared to married women (n=27), single women (n=16) spent more on life insurance premiums following an illness than the year before. Unlike married women, none of the single women had savings or investments prior to the onset of illness, not to mention following such events. In conclusion, middle-aged single women, a growing population in modern Japan, are further disadvantaged following the onset of illness than their married counterparts Classification-JEL: D140, J120 Keywords: Health, Investments, Japan, Life Insurance, Marital Status, Savings, Women Journal: The International Journal of Business and Finance Research Pages: 1-10 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:1-10 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Isaksson Author-Name: Björn Lantz Title: OUTSOURCING STRATEGIES AND THEIR IMPACT ON FINANCIAL PERFORMANCE IN SMALL MANUFACTURING FIRMS IN SWEDEN Abstract: Outsourcing, i.e., the strategic use of outside resources to perform activities traditionally handled by internal staff and resources, have received increased attention in management practice around the world over recent decades. However, even though the main goal of outsourcing must be assumed to be improved financial performance, few researchers have been able to empirically establish this relationship. Furthermore, because most studies have been focusing on large firms, there is also a lack of knowledge on how small firms adopt outsourcing strategies. Therefore, the purpose of this study is to explore outsourcing strategies among small manufacturing firms, and to test how these strategies can be linked to financial performance. The study is based on questionnaire and financial data collected through a stratified sample of 700 small (<50 employees) manufacturing firms in Sweden (with a response rate of 56 percent or 400 firms). Measures of outsourcing were collected from the questionnaire, and performance indicators were collected from annual reports published one year later. We used Principal Component Analysis to identify four outsourcing strategies: Back office activities, Primary activities, Accounting activities, and Support activities. However, in line with previous research, multiple regressions did not reveal any significant relationship between these strategies and financial performance Classification-JEL: M55 Keywords: Outsourcing, Financial Performance, Small Firms, Sweden Journal: The International Journal of Business and Finance Research Pages: 11-20 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:11-20 Template-Type: ReDIF-Article 1.0 Author-Name: Xin Li Author-Name: Tih Koon Tan Title: GOVERNANCE CHANGES FOR FIRMS ADDED TO THE S&P 500 Abstract: What happens to corporate governance after a firm is added to the S&P 500 index? Using firms added from 1994 to 2007, this paper examines how governance mechanisms change for these firms. Specifically, we look at both the overall governance and details on how each mechanism changes. We find that governance improves after being added to the index. Controlling for firm size, leverage, prior firm performance, and growth opportunities, the market reacts positively to governance improvements as a whole. In addition, changes in governance are positively associated with changes in operating performance Classification-JEL: G340, G390 Keywords: Corporate Governance, S&P 500, Firm Performance Journal: The International Journal of Business and Finance Research Pages: 21-35 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:21-35 Template-Type: ReDIF-Article 1.0 Author-Name: Carlos Moslares Author-Name: E. M. Ekanayake Title: THE IMPACT OF EXCHANGE RATE VOLATILITY ON COMMODITY TRADE BETWEEN THE UNITED STATES AND SPAIN Abstract: In this paper we analyze the effects of the real exchange rate volatility on disaggregated sectoral data on the trade flows between the United States and Spain. This study uses monthly trade flows on United States exports to and imports from Spain over the period from January 1993 to December 2012 and the method of bounds testing or the Autoregressive Distributed Lag (ARDL) approach to cointegration analysis. Our results reveal that exports depend positively on the levels of foreign economic activity but negatively on relative prices. However, the exchange rate volatility tends to provide mixed effects. In addition, imports depend positively on the levels of domestic economic activity but negatively on relative prices. As in the case of exports, the exchange rate volatility tends to provide mixed effects. Furthermore, in the case of both exports and imports, the effects of exchange volatility are found to yield mixed effects in the shortrun and in the long-run Classification-JEL: F14, F31 Keywords: Spain, Imports, Exports, Exchange Rate Volatility Journal: The International Journal of Business and Finance Research Pages: 37-49 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:37-49 Template-Type: ReDIF-Article 1.0 Author-Name: Yi-Fang Yang Author-Name: Lee-Wen Yang Author-Name: Min-Ning Lee Title: SERVICE QUALITY, SIZE, AND PERFORMANCE OF AUDIT FIRMS: CONSIDERATION OF MARKET SEGMENTS AND BUSINESS STRATEGIES Abstract: This study investigates the relative importance between service quality and firm size in the performance determinants of audit firms under different market segments and business strategies. This study extracts a human capital-based service quality by the principal component analysis technique. In terms of market segment, total samples are divided into national, regional, and local audit firms. Further, based on the business strategies audit firms take, regional and local firms are classified into two categories: stability and expansion type firms. Empirical results indicate that service quality is a more important performance determinant than firm size in the national firms. However, firm size is more important in the regional and local firms. Next, operating performance of expansion regional firms is better than that of stability regional firms. The extent of performance effects of service quality and firm size differs between audit firms taking varied business strategies Classification-JEL: M42 Keywords: Service Quality, Firm Size, Performance, Market Segment, Business Strategy Journal: The International Journal of Business and Finance Research Pages: 51-66 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:51-66 Template-Type: ReDIF-Article 1.0 Author-Name: Rufo R. Mendoza Title: FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) IN THE PHILIPPINES Abstract: The study analyzed the financial performance of selected micro, small, and medium enterprises using secondary data from financial statements for the past three years. Results showed the enterprises performed favorably in liquidity, activity and leverage but suffered from a low-level profitability. Using correlation analysis, the results show a significant linear relationship between liquidity and activity, liquidity and leverage, and activity and leverage. However, each of these measures has no significant relationship with profitability. Using t-tests, the results show no significant difference in the liquidity, profitability, and inventory turnover of the enterprises when grouped according to organizational form, business type, and asset size. However, a significant difference exists in receivable turnover, asset turnover, and debt ratios. The study recommends the MSMEs should revisit their strategies for improving profitability and use financial performance information in making critical decisions. Firms should connect financial performance to the larger external environment of the business so they will continue to play an important role in the growth of the economy Classification-JEL: M00, M400 Keywords: Financial Performance, Organizational Form, Business Type, Asset Size Journal: The International Journal of Business and Finance Research Pages: 67-80 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:67-80 Template-Type: ReDIF-Article 1.0 Author-Name: Woradee Jongadsayakul Title: DETERMINANTS OF SILVER FUTURES PRICE VOLATILITY: EVIDENCE FROM THE THAILAND FUTURES EXCHANGE Abstract: This research studies determinants of silver futures price volatility in Thailand Futures Exchange using generalized autoregressive conditional heteroskedasticity model. The sample data consist of daily closing price, volume, and open interest of silver futures from the period June 21, 2011 to December 26, 2012 for the nearby month contract with 376 sample data points. I construct data sample by switching or rolling over to the next maturing contract one day before the expiration date. The empirical results reveal there is no significant relationship between volatility and time to expiration. There are a negative role for trading volume and a positive role for open interest in determining silver futures price volatility. The analysis of silver futures price volatility insists the Clearing House that margin requirements for silver futures should not be affected as the time to maturity of the contract decreases. The findings are also helpful to risk managers dealing with silver futures and predicting silver futures price volatility Classification-JEL: C32, G13, G32 Keywords: Futures Price Volatility, Silver Futures, Samuelson Hypothesis Journal: The International Journal of Business and Finance Research Pages: 81-87 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:81-87 Template-Type: ReDIF-Article 1.0 Author-Name: Bienvenido S. Cortes Author-Name: Michael Davidsson Author-Name: Michael McKinnis Title: GROWTH AND VOLATILITY OF MICROPOLITAN STATISTICAL AREAS IN THE U.S. Abstract: A micropolitan statistical area is defined by the U.S. Department of Commerce as A core based statistical area associated with at least one urban cluster that has a population of at least 10,000, but less than 50,000. Recently, the U.S. Census Bureau also identified the micropolitan area as an emerging metropolitan area. Despite its growing importance, the literature on the economic characteristics of micropolitan areas so far has been limited. The objectives of this study are: (1) to describe the geographic distribution, growth, and volatility of the U.S. micropolitan areas during the 1969-2012 period; and (2) to identify and measure the determinants of growth and volatility of micropolitan areas. Findings show that micropolitan area growth is dependent on sectoral composition, initial market size, and spatial/locational effects Classification-JEL: R11, R12 Keywords: Micropolitan, Volatility, Central Place Journal: The International Journal of Business and Finance Research Pages: 89-102 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-8.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:89-102 Template-Type: ReDIF-Article 1.0 Author-Name: Ikechukwu Kelikume Title: INTEREST RATE AND CREDIT SENSITIVITY OF SECTORAL OUTPUT IN NIGERIA Abstract: The Keynesian framework for the transmission of monetary policy to real sectors of the economy proposes that changes in the cost of capital will lead to changes in investment culminating to a change in output measured in GDP. Conventionally, a reduction in interest rate will all things being equal stimulate economic activities that will trigger substantial growth in the economy. The existence of structural rigidities in most developing countries like Nigeria renders monetary policy ineffective and distorts the link between interest rates and sectoral output performance. This study seeks to investigate the relative responsiveness of sectoral output to changes in interest rate and credit allocation in Nigeria. The study will make use of quarterly time series data spanning over a period of 23 years, sourced directly from the CBN and the National Bureau of Statistics. The paper utilized the impulse response function and Granger causality test to examine the sensitivity of sector output to changes in interest rate and credit. The intention is to understand the dynamic sensitivity of sectoral output to changes in interest rate and credit allocations. The result obtained from the study show the various sectors of the Nigerian economy responds significantly to credit allocation but not to interest rate. The result concludes that the use of interest rate to influence sector output growth for Nigeria is in-effective while efforts should be channelled at selective credit allocation and a mix of monetary and fiscal policy to achieve the desired macroeconomic short term and long term goals Classification-JEL: E43, E51, E23 Keywords: Interest Rates, Credit Sensitivity, Sectoral Output Journal: The International Journal of Business and Finance Research Pages: 103-114 Volume: 9 Issue: 4 Year: 2015 File-URL: http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v9n4-2015/IJBFR-V9N4-2015-9.pdf File-Format: Application/pdf Handle: RePEc:ibf:ijbfre:v:9:y:2015:i:4:p:103-114