The Business Review Journal

Vol. 11 * Number 1 * December 2008

The Library of Congress, Washington, DC  *  ISSN 1553 - 5827

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Accounting Expert Systems and the Treatment of Uncertainty

Dr. Awni Zebda, Texas A&M University-Corpus Christi, Corpus Christi, Texas

Dr. Michelle McEacharn, University of Louisiana at Monroe, Monroe, Louisiana



Recent years have witnessed a rising growth pattern in the development and use of expert systems in accounting and auditing.  A very important consideration in expert system development is the treatment of uncertainty.  New approaches to handling uncertainty have been explored but, in accounting and auditing expert systems, probabilistic logic has been the typical solution method.  This paper will briefly describe the expert system environment within accounting and auditing, illustrate a major criticism in the design of these systems, and introduce fuzzy logic as a potential solution to the weakness.  In particular, this paper serves to encourage the use of fuzzy logic in accounting and auditing, arguing for its continued application to the discipline. Expert system development has been experiencing a rising growth pattern.  The introduction of special programming languages and "shells" has contributed to the growing popularity of expert systems.  Advances in computer capabilities and declines in computing costs have also helped the growth.  The events have made expert system technology more accessible to users.  Though the technology arose from the research and development laboratories of medicine and the military, expert system development has experienced a significant involvement in the business world.  The design of XCON by the Digital Equipment Corporation provided evidence of the economic benefits in improved efficiency and quality associated with an expert system [Giarratano and Riley 1989]. Published reviews (e.g., Brown and Phillips [1990], O’Leary and Watkins [1995], Coakley and Brown [2000]) show that expert system research has been substantial in accounting and auditing context.  Many of the problems faced by accountants, auditors, and tax practitioners are ill-defined and unstructured problems which are well-suited for expert system application.  There has been recent expert system development in such areas as capital budgeting, internal control evaluation, going-concern decisions, bankruptcy prediction, materiality judgments, and tax planning.  This paper will describe the expert system environment within accounting, auditing, and tax, illustrate a major criticism in the design of these systems, and introduce a potential solution to the weakness. The remainder of the paper is organized as follows. 


Cited by: 5

The Unintended Effects of the HIPAA Privacy Protections on Health Care Treatment

Team and Patient Outcomes

Dr. Kimberly Jarrell, SUNY Institute of Technology, Utica, NY

Dr. Jan Welker, SUNY Institute of Technology, Utica, NY

Dr. Donna Silsbee, SUNY Institute of Technology, Utica, NY

Dr. Francis Tucker, Syracuse University, Syracuse, NY



This study looked for unintended consequences of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), legislation related to privacy of health care information. More specifically, the study examined effects of the legislation on health care teams and patient care outcomes.   Findings revealed that both the quality and flow of information between team members, including patients and their families as co-producers of health care services, declined following the implementation of the HIPAA Privacy Rules (Rules).  Change in information flow had significant negative effects on flow of services, patient satisfaction, team satisfaction and quality of care.  Change in information quality had no significant effects on any of the outcome variables.  Implications for policy and practice are discussed by the authors. Key words: health and hospital administration, teamwork, unintended consequences, public policy, co-production. The United States Congress enacted the Health Insurance Portability and Accountability Act (HIPAA) August 21, 1996 with a threefold intent: provide better access to health insurance, limit insurance fraud and abuse, and administrative simplification (New York State Office for Technology 2004).  The latter intent included requirements for the standardization of information transactions, the privacy of individually identifiable health information, and the security of health information and electronic signatures.   The Rules actually took effect on April 14, 2003 (U.S. Department of Health & Human Services 2005) and the privacy portion of the Rules is the subject of this research. While HIPAA was originally written to address the privacy of electronic health information, the final Rules were expanded to include health information in any form (oral, electronic, paper, other media). 


Cited by: 9


Market Success Requirements, Capability Requirements and Positioning:

A Tool for Identification and Linking

Dr. Sandra J. Burke, Macquarie University, Macquarie Graduate School of Management



To choose a competitive position, firms must have a clear understanding of: 1) the specific market deliverables required to fulfill consumer expectations of the position, and 2) the corresponding assets and capabilities required for a business unit to fulfill those expectations. The firm must then determine whether there is a fit between the positional opportunity and organizational capabilities in terms of their ability to achieve the desired position in the market. In this paper, a tool is proposed to aid organizations in making these strategic assessments. The tool incorporates choice modeling to identify specific market drivers required to achieve a position and also incorporates systems dynamics to identify the specific assets necessary to deliver the drivers. Finally, the tool links the market needs and required assets to model the entire value delivery system and to identify interactions. The model can be used to assess and compare the relative fit of various positions under consideration, as well as to simulate the effects of investments in specific assets on the achievement of market positions. Thus, it enables firms to systematically assess the overall fit of various positions to the firm's capabilities and determine their relative likelihood along with the investment costs of success.  It is widely acknowledged that choosing a competitive position is a critical step in developing a marketing strategy. Competitive positions combine a firm's choice of target market with the differentiated value proposition it intends to deliver to that target. It defines to whom the firm is trying to be what and, as such, guides internal investment and process decisions as well as go-to-market planning.


Cited by: 5


“Google Earth, Microsoft Virtual Earth and Yahoo! Maps Dictate Global Mapping Models”

Dr. Shawana P. Johnson, President, Global Marketing Insights, Inc. Independence, OH



 Many global corporations would like to identify global sources of satellite imagery to be used as raw data for on-line hand held device products with the goal of building a commercial business for their technology. The fast paced, easy access to data and imagery has caused a skyrocketing demand for three Dimensional (3-D) data and elevated data. Existing and planned commercial radar and optical mid- and high-resolution satellites that are able to produce stereo pairs are potential sources of imagery for digital elevation models(DEM) and 3-D models. Organizations worldwide would like to know who owns each of the satellites, who are the intended value-added processors for the imagery, who are the intended customers and what the primary intended application is. There is a competitive “global” space race occurring to see who can provide this type of data in order to be the data source for all our “hand-held” devices, such as cell phones, GPS’, and mobile location based service devices such as Garmin, TeleAtlas, etc.  The increased availability of satellite imagery of the Earth’s surface since the successful launch of the first high-resolution commercial satellite in 1999 has had a significant impact on the remote sensing industry. Although aerial photography continues to provide a large share of the data for a variety of applications, satellites as a source of imagery worldwide are invaluable. The ability of satellites to capture data globally with frequent repeat coverage, especially in remote areas has changed the public’s expectations.


Cited by:


Role of Micro-Finance Institutions in Reducing World Poverty: An Overview

Jamaluddin Husain, Professor. Purdue University Calumet, IN



 This study provides an overview of the role Micro-Finance Institutions (MFIs) play in the alleviating poverty internationally. Poverty is defined and the poor are classified as either ‘transitory poor’ or ‘chronically poor’. Of those chronically poor, most are victims of lack of opportunity and assets. There is accumulating evidence on the impact MFIs have in assisting the poor, perhaps with the exclusion of those classified as ‘destitutes’. Research findings are cited, leading to the conclusion that self-sustaining MFIs are more likely to impact poverty than those dependent on outside subsidies and grants to remain operational. The authors recommend a global shift away from the ‘welfarist’ approach and more towards the ‘institutionalist’ approach to supporting MFIs, which is more in line with the free market economy ideals. There is a need for continuing studies to understand the phenomenon of self-sustainability and an increased emphasis on helping MFIs become self-sustaining.  The fact book of the Central Intelligence Agency (July 2007), reports that there are over 6.6 billion people on this planet ( Of this, approximately 1.2 billion people live on less than one dollar a day, and 2.8 billion people live on less than two dollars a day (Holvoet, 2004; Stiglitz, 2002).


Cited by: 17


Survival Strategies of Cable Television Firms After the Telecommunications Act of 1996

Dr. Johannes Snyman, Metropolitan State College of Denver, Denver, CO



The development of digital technologies, deregulation and the relaxation of entry and exit barriers into the cable television industry by the Telecommunications Act of 1996 dramatically changed the scope and intensity of competition during the 1990s and early 2000s.  Only twenty five of the top 100 companies in 1995 survived.  This study discovered that in order to survive the newly created hypercompetitive environment, cable operators had to employ a variety of survival strategies.  They preferred a strategy of consolidation to rapidly increase their number of basic cable subscribers and internal development to develop new telephone and internet services for their basic cable subscribers.  Strategic alliances provided additional services such as voice over the internet protocol.  Related and unrelated acquisitions played a smaller role in directly changing subscriber count.  The cable television industry has undergone dramatic change since the early 1990s.  In 1996, President Clinton signed into law the Telecommunications Reform Act, also known as the Telecom Act, which put to an end cable rate regulation and increased competition.  Cable and telephone companies were allowed to enter one another’s markets on March 31, 1999.  In addition, the development of new technology further contributed to the reshaping of the industry.  The old tree-and-branch coaxial cable was replaced with a laser-driven hybrid fiber-coaxial (HFC) cable that combines optical fibers and coaxial cables, thereby increasing the band width so that more services can be offered via the same cable and modem. 


Cited by:


Use of the Designation “CPA” Mobility and the Adverse Regulatory Effects of Professional

Scrutiny of CPAs by States in Depriving the Foreign CPA of her Constitutional

Guarantee of Freedom of Speech:  A Case Study - South Carolina

Dr. Scott K. Campbell, Francis Marion University, Florence, SC

Dr. Brad R. Johnson, Francis Marion University, Florence, SC



 “Experience should teach us to be most on our guard to protect liberty when the government’s purposes are beneficent. .  The greatest dangers to liberty lurk in insidious encroachment by men of zeal, well meaning, but without understanding.” (1)  By means of a case study approach, this article analyzes selected provisions of Chapter 2 of Title 40 of the South Carolina Code of Laws dealing with the regulation of CPAs and proffers the following conclusions of law: S.C. Code § 40-2-20 (15)(b) and S.C. Code § 40-2-30 (G) are unconstitutional as applied, where said provisions violate the First Amendment as applied through the Fourteenth Amendment of the U.S. Constitution under the constitutional theory of prior restraints, in that said provisions deprive the foreign CPA of her liberty interest in her personal right to freedom of speech (i.e., the use of the designation “CPA” with the name of the foreign CPA, as lawfully granted by one of the several states) without due process of law.  It follows that the purpose of this article is to enhance the awareness of the General Public [including (1) the Division of Professional and Occupational Licensing (POL) in the South Carolina Department of Labor, Licensing and Regulation (LLR) and (2) the South Carolina Board of Accountancy (BOA)] as to the constitutional implications of adverse regulatory effects of the system of laws enacted in South Carolina to regulate the practice of accounting by CPAs (i.e., Chapter 2 of Title 40 of the South Carolina Code of Laws).


Cited by:


Rounded Numbers of Stock Price Highs

Mei-Ling Yang, National Cheng Kung University and

Lecturer, Shih Chien University, Kaohsiung Cumpus, Taiwan

Dr. Andrew Ming-Long Wang, National Cheng Kung University, Taiwan




 This study explores whether the numbers of stock price highs are affected by people’s psychological reactions to numbers and whether investors use multiples of 10 as the point of psychological satisfaction and the benchmark for their judgments of the appropriate stock price of a firm. This study finds that the frequency of 0 is particularly high, but that of 1 and 2 is particularly low in the position of the trailing digit of the historic highs of stock prices. The empirical results of this study also showed that the frequencies of stock price highs achieving round numbers are higher in the following three situations: when they are records of Taiwanese TSE firms rather than those of emerging stock firms, when they are records of firms with high trading volume rather than those of firms with low trading volume and when they are records of firms with high centralization of stock capital rather than those of firms with low centralization of stock capital, as a result of the fact that stock prices of such firms are paid more attention to and are easily sensationalized by the stock market. The turnover of trading volume and the centralization of stock capital are the important factors affecting stock price rounding phenomenon. The findings of this study suggest to investors that once a stock price is unable to continue climbing in the short term after historic highs have reached multiples of 10, investors should seriously consider selling these stocks.


Cited by:


Using Cluster Method for Estimating Value at Risk (VAR) in US Stock Futures Market

Hae-Ching Chang, Associate Professor, National Cheng Kung University, Taiwan, R.O.C.

Cheng-Te Chen, National Cheng Kung University, Lecturer, Far East University



 The conventional methods of VAR (Value at Risk) estimation all use a percentile method to determine the VAR. In this study, we propose a cluster method to compare the conventional method (Historical Simulation, Variance-Covariance, and Monte Carlo Simulation) for estimating VAR in US stock futures market. Empirical results demonstrate that the cluster method has outperformed the conventional methods in term of accuracy.  Over the past few decades financial markets around the world have undergone huge volatility in interest rates, exchange rates, and commodity prices. Hence, the investor must be to assessing market risk of the investment portfolio. Value at Risk (VAR) has emerged as a standard measurement tool for controlling portfolio risk. There are three conventional methods to calculating VAR include historical simulation (HS), variance/covariance (VCV), and Monte Carlo simulation (MCS) methods. Jorion (1996) documented the fact that VAR summarizes the worst expected loss over a target horizon and within a given confidence interval. Linsmeier and Pearson (2000) defined VAR as a measure of losses resulting from normal market movements. Badík (2005) pointed out that VAR is the value of the negative result (loss) that for a certain period and with a certain probability will not be exceeded. Consequently, estimating VAR requires the determining of the two parameters of holding period and confidence level.


Cited by:


Equity Mutual Funds Versus Market Performance: Illusion or Reality?

Viviane Y. Naimy, Ph.D., Notre Dame University, Louaize, Lebanon



 Mutual funds constitute a major component of many individuals’ investment plan.  They have been beneficial for many investors for a long period of time.  Yet more and more investors are realizing that mutual funds are not the best choice.  This paper compares the return of the actively managed funds with the one of the market.  It showed through some hypothesis and independence tests that mutual funds do not always overmatch the market performance and that despite the advantages of diversification, this latter is not able to make equity mutual funds the star of all investment alternatives.  The empirical rule has been applied and curious doubts about the absolute efficiency of mutual funds were receded.  There is much good news about mutual funds. In 2006, the total number of mutual funds worldwide exceeded 61,500 (Investment Company Institute Fact Book, 2007). Fifty two million U.S. households and 88 million individual with USD 10.4 trillion invested in more than 8,100 funds can’t be all wrong (Investment Company Institute Fact Book, 2007).  Obviously, mutual funds constitute a major financial asset for numerous investors, and in many ways they play a key role in today’s investing world. However, mutual funds require to be critically evaluated.  Typically, investors follow only one direction of the issue: why they should invest in mutual funds.  In fact, they fail to remember the downside of such investment in terms of inflexibility with regard to taxable distributions, the costs of owning funds, and particularly the continuous treadmill of chasing the top performing funds, a search that often leads to failure. 


Cited by: 6


Trading Strategies and Volume in Taiwan Stock Market

Dr. Yi-Wen Chen, Hsing-Wu College, Taiwan

Dr. Hamid Rahman, Alliant International University, San Diego, CA



 Since 1990, Taiwan’s market has seen some of the fastest growth of the Asian economies. However, the Taiwan Stock Exchange (TSE) still faces conditions different from those of the stock markets of developed nations. Based on prior research, this study examines the application of momentum and contrarian trading and portfolio strategies by investors in the Taiwan stock exchange (TSE), to determine whether momentum or contrarian strategy can produce better returns. This study also considers trading volume in the context of TSE trading strategies.  Using an empirical research design derived from prior research, the current study develops a portfolio model and tests its validity using data from the TSE. The research focuses on establishing means of comparing trading strategies over various time periods. The research design can be considered non-experimental in nature, as it primarily tests whether data retrospectively gathered from the TSE supports the explanatory model of stock and investor behavior under consideration.  The study developed 2 research questions with 7 hypotheses based on some of the models used by previous researchers, and tested these hypotheses using data obtained from the Taiwan Economic Journal’s TSE reports. The study focuses on the period of January 1990 and December 2005.


Cited by: 2


The Relationships Between Service Quality and Customer

Satisfaction in a Leading Chinese Web 2.0 Company

Dr. Jovan Chia-Jung Hsu, Kun Shan University, Tainan, Taiwan

Dr. Chao-Min Hsu, Kun Shan University, Tainan, Taiwan



 As Internet continues to popularize and the number of internet users continues to increase tremendously, there are many new forms of applications on the Internet these days. The virtual environment of internet is shifting from interacting users to facilitating collaboration and sharing between users. For example, a newly invented internet application, Blog, has already become one of the most interactive applications between Internet users. Internet applications emerged from previous Internet technology and featured with a do-it-yourself (DIY) style, a richer Web user experience and lighter-weight Web development model are called "Web 2.0" application as an improved form of the World Wide Web. Tim O”Reilly started to popularize Web 2.0 in 2005 and referred it to a perceived second generation of web-based communities and services, such as social networking sites, wikis, and folksnomies. Examples of such famous communities are Wikipeida, Friendster, MySpace, OpenBC, Facebook, YouTube, weblogs (Blogs) and others.  The purpose of this study is to investigate the relationships among service quality and customer satisfaction in Chinese Internet industry based on 308 valid surveys from users of a leading Chinese social networking company to explore the importance of service quality in Chinese Web2.0 sector.  A new type of online communities has been gaining momentum and reshaping online communication as well as the way information is consumed and produced as a new collaboration pattern. It all started in 2004 with a Web 2.0 conference organized by O'Reilly Media and CMP.  Web 2.0 refers to a perceived second generation of web-based communities and hosted services, such as social networking sites, wikis, and folksnomies, which aim to facilitate collaboration and sharing between users.  The purpose of this study is to investigate the relationships among service quality and customer satisfaction in Chinese Internet industry based on 308 valid surveys from users of a leading Chinese social networking company to explore the importance of service quality in Chinese Web2.0 sector. 


Cited by: 41


The Role of Innovation Capability in Organizational Change: The Case of J&S Bank

Dr. Day-Yang Liu, National Taiwan University of Science and Technology, Taipei, Taiwan

Shou-Wei Chen, National Taiwan University of Science and Technology, Taipei, Taiwan

and Lecturer, Technology and Science Institute of Northern Taiwan, Taipei, Taiwan



 The processes of organizational change are a central issue for managerial researchers. Previous organizational change studies in the service industry have focused primarily on management styles, culture, and performance. However, these studies have not addressed the capability perspective for innovation in organizational change. Since the banking industry is a dynamic and turbulent environment, there is an increasing challenge to build innovation capabilities for change. Using resource-based theory and innovation literature, this paper draws on an in-depth case study of a Taiwanese bank, posits innovation as a firm’s needed capability, and explores the role of innovation capability in a bank’s organizational change. An organizational change process model is offered, and four features of innovation capability are identified. Each innovation capability reflects its innovative aspects in terms of bank organizational change. The study also offers researchers and practitioners a detailed and complete view of the innovation capability of an organization.  Organizational change has long been a topic of great interest in academia and organizational practice since significant organizational change regularly occurs in all industries working in a dynamic business environment. A growing number of research studies have shed light on organizational change that occurs in service industries. Bhatt (2000) emphasizes the importance of developing organizational capabilities for business transformation based on the resource-based view (RBV), which describes a firm as a specific collection of resources and capabilities that can be deployed to gain competitive advantage.


Cited by: 15


Social Interaction, Technological Capability and Innovation:  

An Empirical Study in the Taiwanese High-tech Industry

Ming-Tien Tsai, Ph.D., National Cheng Kung University, Taiwan (R.O.C.)

Shuang-Shii Chuang, Ph.D., National Cheng Kung University, Taiwan (R.O.C.)

Cheng-Chung Chen,  National Cheng Kung University, Taiwan (R.O.C.)



 The main purpose of this study is to investigate how social interaction affects a firm’s technological capability and innovation. Therefore, we focus on the relationships that exist among social interaction, technological absorptive capability, technological applied capability, and innovation performance. Structural equation modeling (SEM) was carried out on data gathered from a sample of 130 usable questionnaires filled out by product managers in the Taiwanese high-tech industry. The empirical results include: First, social interaction significantly contributes to a firm’s technological absorptive capability and technological applied capability. Second, technological absorptive capability has significantly positive effect on a firm’s technological applied capability. Third, the influences of social interaction and technological absorptive capability on innovation performance are completely mediated through technological applied capability. The results also contribute the theoretical development by proving the feasibility of linking the social network perspective and knowledge-based view that both are the specific issues of the time.  Faced with keen intra-industry competition on a global scale, and the rising costs of technological progress and knowledge diffusion, high-tech firms have to cope with ever-shorter product life cycles and a reduced product development cycle time to meet market needs and consumer preferences promptly. Under conditions of time pressure, it is essential for firms to rely on up-to-date external market knowledge and unique technological capabilities, and to leverage accessible relational resources to keep pace with the speed of product innovation.


Cited by: 11


R&D Funding Sources and R&D Project Performance

Dr. Tsung-Chi Liu, NCKU, Taiwan

Mo-An Chu, NCKU, Taiwan



 The purpose of this article is to analyze the phenomenon of funding sources in research and development (hereafter, R&D) projects and relates various types of R&D funding sources with the R&D project performance of external R&D relative to internal R&D. More specifically, R&D funding has been broadly conceptualized along at least two sources: subsidized R&D and own R&D. Because these dual roles of government and business R&D funding sources may have strategic implications for R&D project performance, separately, it is worth considering briefly the differences between subsidized R&D and own R&D. This paper provides empirical evidence on the relationship among subsidized R&D, own R&D, and R&D project performance in Taiwan manufacturing firms’ R&D projects. Regression analysis was used to test the hypotheses in a sample of 182 cases. The estimation results of this study indicate that various depending on the R&D funding sources have different effects on R&D project performance: subsidized R&D has a negative effect on R&D project performance while own R&D is positively associated with R&D project performance. Overall, R&D project performance of high own R&D is statistically and significantly greater than high subsidized R&D. Finally, this study discusses managerial implications and highlights future research directions.


Cited by:


Using the Refined Kano’s Model to Measure University Education Quality:

The Case Study on the Department of Food and Beverage Management in Southern Taiwan

Mean-Shen Liu, Far East University



Kano’s model has been widely applied in measuring service quality. The refined Kano’s model presented by Yang (2005) further improved the Kano’s model to categorize quality attribute more precisely in order to provide more accurate information. The purpose of this study is to use the refined Kano’s model to understand education demand. By analyzing the difference of each fundamental element of education quality between objects of different attributes, those education quality elements can be categorized as excellence, need to be continuously improved, cab be ignored, and superfluousness. The results can be the bases when making strategies of improving education quality for a university to increase students’ learning quality.  The results show that, in satisfaction indices, the most valued attributes are quick network, plenty of audiovisuals, perfect labs, promptly dealing with events, and kind attitude. In I-S Model attribute category, the excellent attributes are perfect labs, quick network, kind attitude, promptly dealing with events, practical software, plenty of audiovisuals, plenty of books, good presentation, good communication, and curriculum planning.


Cited by: 9


The Comparison of Diagnosis on Business Crisis by Using CART and Logistic Regression

Huey-Der Hsiao, Far East University, Taiwan, ROC

Dr. Ming-Shing Lee, Far East University, Taiwan, ROC



 This research is aimed to establish the diagnosis models against business crisis through CART to optimize the learning and classification on data. After actual modal operation, reach the diagnosis accuracy up to 85.29% for all the tested business data. Additionally, compared with Logit, However, there were 6 mainly influential features after selecting operation.  Among them, they included features with intellectual capital and financial, the 6 features are ordinary and widely available everywhere in business public information. It was also available for business managers to conduct self- diagnosis anytime that could realized whether firms really face the business crisis.  Recently, there had been numerous scholars conducting the researches relevant to business bankruptcy. So far, there are also some classifying tools for the diagnosis techniques were developed that include the traditional statistical methodologies, non-parametric methods and artificial intelligence methods, etc.  Beavers(1966) was the first one to investigate the business failure by means of statistical methods,  he used the single finance ratio feature as the explanatory variable and the dichotomy of both failure and non-failure as the response variables, however, the single finance feature used to discern the firms would show the variance, because of different the predicting direction and capabilities on finance ratios even with the conflicting results happening to result in wildly deviated prediction.


Cited by:


Corporate Reporting of Intellectual Capital: Evidence from China

Dr. Huafang Xiao, Huazhong Agricultural University, Wuhan, PRC



 This study examines the annual reports of each of the top 50 firms listed on the Shanghai Stock Exchange (SSE) in 2007, using the content analysis method. The findings indicate that companies in China do not attach importance to disclosing intellectual capital (IC) information. The most reported IC information was human capital and the least reported was external capital, which differed from those found in other countries. After excluding the mandatory disclosure of IC information, however, human capital information disclosure comes to the last, and the highest level of disclosure was internal capital information. It is hoped that the findings of this pioneering study can be used as a benchmark for future studies in China.  Today, in every region of the world, knowledge is fueling economic growth and social development. Building and using knowledge assets efficiently is the key to economic competitiveness for all types of economies. Intellectual capital (IC) is at the heart of knowledge-based growth. Waterhouse (1999) argues that IC assets are strategically now more important to wealth creation than they ever were in the past. Current accepted principles and practices by convention usually only enable the construction of balance sheets that accounting solely for a firm’s physical capital. The relative lack of recognition of intangibles in accounting, coupled with their growing importance in the value creation process, means that financial statements have lost some of their value for shareholders. If other information does not fill the void, there could be misallocation of resources in capital markets.


Cited by: 41


Business-to-Business Marketing: A Study on the Communication of Logistical

Services in the Former Yugoslavia Nations

Dr. Vojko Potocan, University of Maribor, Maribor, Slovenia



 This paper focuses on business-to-business marketing communications of industrial firms in the Slovenian, Croatian, Bosnian, Serbian, and Montenegro markets. The paper presents three main research issues: 1) the most important communication tools in the business-to business markets; 2) the most important characteristics of logistical providers when communicating to business-to-business markets; and 3) understanding differences between the two issues across the spectrum nations in the Former Yugoslavia. A study explored the issues from a customer's perspective and surveyed industrial customers of logistical services regarding appropriate communication tools. It was found that logistics services are subject to several existing differences across the Former Yugoslavia and indicated a need to use different marketing communications tools for different logistics providers in these markets. The paper concludes with a discussion of results, implications, and possibilities for future research.  The development of marketing communication in Former Yugoslavia countries is faced today with new opportunities and challenges. This process of transformation from underdeveloped to international competition resulted in overall economic liberalization and intensive growth of the logistics sector in these newly formed countries. Slovenia has already joined to European Union, and other transition countries i.e. Croatia, Bosnia and Herzegovina and Serbia and Montenegro will face their time of accession to the European common market as well.


Cited by: 5


Analysis of Colored Local Liquor Marketing Strategies among

Companies before Liquor Liberalization

Dr. Sinee Sankrusme, Ramkhamhaeng University, Bangkok, Thailand



 Every marketing strategy is unique. If we remove individual characteristics associated with any particular industry, a generic marketing strategy evolves. There are a number of ways of categorizing these generic strategies. Strategies based on market dominance - In this scenario, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: leader, challenger, follower, and niches. The study analyzes market leader, challenger, follower, and niche strategies of colored local liquor in Thailand during 1990-2000. Mekong liquor was the market leader up to 1993. While Hongthong liquor was a challenger. The turning point was happened in 1994. Hongthong liquor beated up to be market leader instead and pushed Mekong liquor to be challenger during 1994-1998. Later in 1999 and 2000, Mekhong liquor became a follower. How Hongthong liquor turned to be a market leader was interested to study.  The largest major local liquor brand name is “Mekhong.” Later distributed into two majors of Sura Maharas Company the producer of “Mekhong liquor” under the Ministry of Industry and the Sura Thip Group Company, the producer of “Hong  Thong Family” under the Excise Department, Ministry of Finance. These have been competing for the local liquor market share for many years.  At this time Mekhong, Hong Thong and Sang Som liquor were still under the hand of “Mr. Charoen Srivadhatanabhakdi” completely, as well as Lao Kao. 


Cited by:


Commitment-Based Human Resource Practices: Through Creating Service Climate to

Enhance Market Performance in the Service Industry

Dr. Ming-Tien Tsai, National Cheng Kung University, Taiwan

Dr. Shuang-Shii Chuang, National Cheng Kung University, Taiwan

Chao-Wei Chin, National Cheng Kung University, Taiwan



 Strategic human research management researchers have often suggested that individual human resource practices can be regarded as a set of commitment-base human resource (HR) practices, affecting business performance via a “black box.” The purpose of this study is to establish a framework that provides a better understanding of how commitment-based HR practices affect market performance via service climate in the service industry. A sample of 134 front-line employees were surveyed and the data analyzed using structural equation modeling. Results show that commitment-based HR practices not have a direct effect on market performance, but will create a positive service climate, which in turn affects market performance. Thus, this study suggests that service organizations should foster excellence in service climate through commitment-based HR practice for improved market performance.  Research into strategic human resource management and business performance relationship has moved from a focus on individual HRM practices to investigation of the overall set of HRM practices from the macro-level viewpoint (Arthur, 1992, 1994; Bowen & Ostroff, 2004; Delery & Doty; 1996; MacDuffie, 1995).


Cited by: 11


Discuss the Impact of Customer Interaction on Customer Relationship in Medical Service

Dr. Ye-Chuen Li, Diwan College of Management, Taiwan

Dr. Yung-Ching Ho, National Chung Cheng University, Taiwan



 The purpose of this study is to discuss the relation of customer interaction, relationship quality and customer value. Since the medical service industry is an industry with one of the highest degrees of interaction, this study assumes it as the research objective and subsequently surveyed inpatients of 32 hospitals in Taiwan. The study uses Structural Equation Modeling (SEM) to analyze the data through combining variables and simplifying the model. The results show that interaction quality of customer interaction is positively related to relationship quality and relationship quality is positively related to customer value. While, interaction strength and interaction length do not have any significant relation with relationship quality. Therefore, retaining nursing staff with enough specialization, right attitude and fast and precise processing behavior to obtain patient trust and satisfaction is the key to improving customer relationship quality.  The core concept of marketing is changed from product oriented, market oriented to relationship oriented and customer oriented. In other words, trading oriented marketing has been changed to be relationship marketing (RM). For these service businesses and the manufacturers which provide service as part of the whole product mix, customer relationship management is the most beneficial way than others (Grönroos, 2004).


Cited by: 14


Accounting Information Quality, Free Cash Flow and Overinvestment: A Chinese Study

Dr. Jianguo Yuan, Huazhong University of Science and Technology, P.R. China

Yufeng Jiang, Huazhong University of Science and Technology, P.R. China



 This paper studies the relationship between accounting information quality and overinvestment on a sample of Listed Corporations of Manufacturing Industry in China between 2004 and 2006.We found that accounting information quality is negatively associated with firm overinvestment, and that high quality accounting information can prevent overinvestment. Further, accounting information quality is more strongly associated with overinvestment for firms with more free cash flow, which implies that improving quality of accounting information has more effect on preventing over-investment in these firms.  Overinvestment at the company level has led to low investment efficiency and increased economic overheating and inflation, has severely damaged the interests of the shareholders and the sound development of macro economy, and has been a mainstream topic in the field of modern corporate finance research. Scholars have brought forward methods to constrain the overinvestment of the companies from various angles. Jensen (1986) thinks distribution of cash dividends and incurring debts could constrain overinvestment; further, Jensen and Murphy (1990) have found that managers holding shares could prevent the risk of moral hazard of the managers, and thus reduce the likelihood of overinvestment. Shleifer and Vishny (1997) have found that institutional investors have a strong motive to monitor managers and can control overinvestment in enterprises.


Cited by: 63


Diagnosing Taiwan Tourism Industrial Problems from the Perspective of WTO Service Trade

Tsuifang Hsieh, Taiwan Hospitality & Tourism College, Taiwan

Dr. Yungkun Chen, ChungChou Institute of Technology, Taiwan



 International service trade will become the prevailing force in the global economy and trade in which the international tourism service trade is expected to play a significant part. Tourism is one of the industries currently being promoted and is expected to become one of the most important economic development indices in Taiwan. However, it is not known whether Taiwan’s tourism industry is worthy of being classified as a strategic industry, nor what the problems are facing Taiwan today. This research tried using economics theory to analyze the problems of tourism development. Game theory was used to explore the system reform of tourism management, and Porter’s competition strategy was used to explore the enterprise management of the tourism industry. Results of the study provide alternative ideas for the tourism industry and service trade development.  According to predictions by the World Bank and other international economic organizations, the total amount of international service trade will reach US$5000 billion and account for as much as one third of the total international trade for the year. Rapid development of international service trade is expected to break the global economic and trade framework that has been dominated by goods trade, and it is projected that by 2050 international service trade will become the prevailing force in the global economy and trade, in which international tourism service trade is expected to play a significant part. In 1999 global tourism income made up the largest portion, namely 8.1%, of global goods export income, followed by automatic electronic appliances (8.0%) and medical/pharmaceutical products (7.6%), and established the position of the tourism industry as the largest foreign-currency-generation industry (World Tourism Organization, WTO, 2002).


Cited by:


The Mediating Effects of Internal Marketing on Transformational Leadership and Job

Performance of Insurance Salespersons in Taiwan

Dr. Hsin Kuang Chi, Nan Hua University, Taiwan

Dr. Huery Ren Yeh, Shih Chien University, Kaohsiung, Taiwan

Dr. Cherng-Ying Chiou, The Overseas Chinese Institute of Technology, Taichung, Taiwan



 The purposes of the study are (1) to understand the effects of supervisors’ transformational leadership and internal marketing on employees’ job performance in the insurance companies, (2) to discuss the predictability of supervisors’ transformational leadership between organizational commitment and job performance, and (3) to discuss the predictability of internal marketing on organizational commitment of insurance salespersons. In addition, the study aims to discus the effects of internal marketing on transformational leadership and job performance of insurance salespersons in Taiwan. The results of the study show that (1) transformational leadership is significantly related to  organizational commitment, (2) transformational leadership is significantly related to internal marketing, (3) internal marketing is significantly related to organizational commitment, (4) organizational commitment is significantly related to job performance, (5) internal marketing is significantly related to job performance, (6) effort and identification of organizational commitment has a partial mediation effect between vision setting of transformational leadership and contextual performance, and (7) vision setting of transformational leadership can affect job performance through internal marketing.


Cited by:


On Calling Convertible Securities – New Empirical Evidence

Dr. Camelia S. Rotaru, St. Edward’s University, Austin TX



 This study shows that cash redemptions of convertible securities are associated with a positive abnormal market reaction on the day following the announcement. I am attributing this positive reaction to the coupon savings resulting from the redeeming the convertible security for cash. Results also show that companies do not force conversion of their securities in order to avoid financial distress. Rather, it appears that companies choose to force conversion even though the average amount of dividends paid on the common shares to be issued as a result of the conversion is higher than the amount of coupons saved through forced conversion. Moreover, results show no relationship between the abnormal return to a forced conversion announcement and the company’s probability of bankruptcy.   The call provision allows the issuer to repurchase a bond at a specified call price before the maturity date. In most cases, the redemption price of a callable bond is initially set equal to the public offering price plus one year’s interest on the bond. However, the call price usually decreases over the life of the bond. The schedule of call prices typically scales the call premium to zero by a date up to one year prior to the maturity of the bonds.  Previous studies look at the call feature of convertible securities. Some studies attempt to explain the role of call protection on convertible securities. Other studies analyze the stock price reaction to announcements of redemptions of convertible securities.


Cited by:


Work Locus of Control and Job Performance in the UAE:  The Mediating

Role of Individual and Organizational Factors

Dr. Hossam M. Abu Elanain, University of Dubai, Dubai, UAE



 The relationship between work locus of control and job performance is examined for the first time in the UAE and the Middle East. The study tested the mediating role of conscientiousness, self-esteem and organizational justice in the work locus of control-job performance relationship. Results from 350 employees working in Dubai showed that work locus of control, conscientiousness, self-esteem and organizational justice are valid predictors of job performance. Self-esteem was found to fully mediate the work locus of control-job performance relationship. Also, both conscientiousness and organizational justice partially mediated the relationship. The implications of the study outcomes for both managers and researchers are also discussed in the paper.  There is increasing empirical evidence that personality affects individuals’ performance once they are hired into an organization (e.g., Barrick & Mount, 1991; Caldwell & Burger, 1998; Tett, Jackson, and Rothstein, 1991). There have been a large number of studies that examined the relationship of personality traits to job performance. These studies have shown that there are significant relationships between personality traits and job performance (e.g., Barrick & Mount, 1991; Barrick, Mount, and Judge, 200; Barrick, Parks, and Mount, 2005; Hurtz & Donovan, 2000; Salgado, 1999). 


Cited by:


What Types of Companies Choose CEOs with a Marketing Background?

Dr. Charlie Cullinan, Bryant University, Smithfield, RI



 CEOs can come from many backgrounds including marketing, accounting/finance, technical/scientific, and general administration, yet there is limited information in the literature regarding why companies choose CEOs with particular functional backgrounds and experiences. This study examines the characteristics of firms that select a CEO with a marketing background. Results of the study suggest that firms selecting a CEO with a marketing background are more likely to be in a retail business, are older firms, and have higher gross profit margins. Taken together, these results imply that firms with a material focus on brand management are more likely to choose a CEO with experience in the marketing functions.  An organization's chief executive officer (CEO) can have a material effect upon the success of the organization. Yet, there is rather limited empirical information on the fit between a CEO's experience and the nature of the firms that hire that CEO (e.g., Rajagopalan and Datta, 1996). There is also a stream of literature on CEO characteristics related to whether the CEO was already working for the hiring firm in another capacity or was hired from outside the firm (e.g., Ang and Nagel, 2008).


Cited by:


Unicredit Bank CEO’s Dilemma Agenda: Grow Internationally Preserving a Strong Cultural Identity

Dr. Gabriele Carbonara, Professor, Parthenope University of Naples, Italy

Rosa Caiazza, Parthenope University of Naples, Italy



 A critical task of leadership is recognizing and interpreting the enterprise’s core dilemmas. Defining and prioritizing dilemmas assists the organization to prepare itself to respond to real current and emerging forces. In defining dilemmas, leaders establish focus and determine the terms of engagement at a moment in time. Every leader needs to have a dilemma agenda that addresses the shifting needs, drivers and opportunities occurring around them, and they should be actively working at understanding, defending and capitalizing on these dilemmas. Previous literature has investigated the critical role of leadership in recognizing and interpreting the enterprise’s core dilemmas, less attention has been focused on the elements of leadership’s dilemma agenda that lead firms to achieve a sustainable competitive advantage.  The aim of this research is to identify the key elements of CEO’s dilemma agenda that affect firms’ performances in situations of environmental uncertainty. At this aim we first analyzed the impact of dilemma agenda of Unicredit’s CEO on the Bank’s process of fast grows in the European market. Then through an inductive method we identified the main elements of a leader’s dilemma agenda that lead to the firm’s success. We conducted a longitudinal analysis of Unicredit Bank’s process of external growth from 1998 to 2007.


Cited by: 8


Attaining a Greater Understanding of How Job Attitudes of New MIS Professionals

Impact Their Turnover Intentions at the Socialization Stage

Dr. Jau-Rong Chen, Mingchi University of Technology, Taipei, Taiwan



 Turnover intentions have been a topic of great interest and extensively studied by MIS researchers.  Yet there is little research that links the antecedents of job attitude, job attitudes, and turnover intentions with the socialization stage of new MIS professionals.  This paper proposes an analytical model that employs a number of constructs: Pre-entry experience, establishment of relationships, job satisfaction, organizational commitment, and turnover intention.  The model tests both the direct and mediating effects of job attitudes on turnover intentions of MIS professionals at their socialization stage.  Empirical testing of the model is based on a sample of 136 newly graduated MIS professionals from Taiwanese enterprises. The results show that organizational commitment and job satisfaction have direct effects and mediating effects on turnover intentions. The implications of the findings for the management of personnel issues are discussed.. Recent studies in MIS have focused on varying personnel issues, such as role adjustment (King & Sethi, 1998), work exhaustion (Moore, 2000), organizational commitment and ethical behavior (Oz, 2001), growth need, job satisfaction and turnover (Lee, 2000), etc.  The central theme of this research is the turnover of MIS professionals, which remains one of the most troubling issues in today’s turbulent business environment. 


Cited by: 9


Analyses of the Relationship between Turkish Banking Efficiency and Macro Economic Indicators

Dr. Birgul Sakar, Kadir Has University, Istanbul, Turkey



 This paper considers the study of the relations between the efficiency of financial sector and macroeconomic growth. The data used in this study covers the period from 1997 to 2007. Correlation Analysis has been adopted. Correlation analysis method has been employed to measuring the relationship between banking sector variables and macro economic variables.  The analysis uses sixteen banking ratios and sixteen macro-economic indicators as 1. Net Profit  / Average Equity.  2. Total Assets / GNP. 3. Total Loans /Total   Assets.  4. Bad Loans / Total Assets.  5. Equity + Profit / Total Assets.  6. Total Incoming / Total Outgoing.  7. Total Loans/ GNP. 8. Loans / Deposits.  9. Securities / Total Assets.  10. Total Deposits / GNP.  11. Total Deposits / Total Assets.  12. Net Interest Margin.  13. Loans Lent to Private Sector / Total Commercial Loans.  14. Reel Interest.  15. Consumer Loans / Total Commercial Loans. 16. Foreign Currency Assets / Foreign Currency Liabilities.  The analysis uses sixteen macro-economic indicators as 1. Dept  Stock  / GNP. 2. Foreign Trade Deficit / GNP. 3. GNP Change.  4. Real change in GNP per capita. 5. Ratio of comparison of export to import. 6. Deficit /GNP. 7. Short Term Debt / Total Debt. 8. Private Sector fixed capital investments / GNP. 9. Capacity Usage Ratios of Private Sector Manufacturing Industry. 10. Private Last Consumption Expenditure. 11. Reserves / Import. 12. Industrial Manufacturing Index Change.


Cited by:


Cross-cultural Consumer Behavior of General Merchandise for Taiwan, Hong Kong, and Shanghai

Dr. Kuo-Ming Chu, Cheng Shiu University, Kaohsiung, Taiwan

Hui-Chun Chan, National Cheng-Kung University, Tainan, Taiwan



 The net growth of general merchandise retail industry has played a significant role in the world economy. This study evaluated reference and consumer behaviors in general merchandise purchasing in Taiwan, Hong Kong, and Shanghai. Understanding of the diverse consumer behaviors and life styles could benefit firms in Taiwan and Hong Kong which plan to invest in the Mainland China market. Results indicate significant differences in consumer life styles, behaviors, advertising media and promotion activities among three regions consumers. As for the satisfactory attributes of store image of the general merchandize product, Taiwanese consumers favor product brand, packaging, labeling and efficiency while purchasing, Hong Kong consumers emphasize the abundance of supply and display of goods while Shanghai consumers respond to product diversity and market ambiance.  Given the continuous growth of the global market, the general merchandise retail (GMR) industry plays a pivotal role in the service industry. Tohmatsu (2000) pointed out that, the development of the general merchandise retail industry provides a major index of how fast a country or a society develops. For instance, the contribution of the U.S. service industry now outweighs the manufacturing industry and has therefore become the dominant element in the U.S. economy (Fisk, Bitner and Brown, 1993). In Taiwan, similarly the amount of GDP contributed by the service sector output reached NT$6.7 trillion, account for 71.5% in 2007, thus becoming Taiwan’s core economic sector.


Cited by: 5


Entrepreneurial Orientation in Small Family Firms in Istanbul

Dr. Mujdelen Yener, Marmara University, Turkey

Dr. Sinem Aykol, Marmara University, Turkey



 The main objective of this study is to understand the entrepreneurial orientation of small family firms in Istanbul.  In order to understand this phenomenon, as Miller (1983) stated, entrepreneurship must be considered as organizational rather than personal. From this perspective, the impact of family influence and organizational structure on the entrepreneurial orientation of small family firms is investigated in this study. The developed scale is applied to 75 independently owned and operated small family firms in Istanbul. Our findings show that, for entrepreneurial orientation to exist, the components of family influence must be supported by mechanistic organizational structure. The implications are crucial since strategic thinking and entrepreneurial orientation would increase the competitive advantage of small family firms in the national and international arena.  The relationship between entrepreneurship and organizational context has long had the attention of researchers. Research on entrepreneurship at the individual level has found some empirical evidence to support the idea that entrepreneurship is influenced from the organizational context, but literature about entrepreneurship at the corporate level is rare. In fact, a growing stream in these studies indicates that organizational context plays an important role in corporate entrepreneurship (Naldi et al., 2007; Lyon et al., 2000; Covin and Slevin, 1989).


Cited by: 6


  A Two-Factor Model for Valuation of Interest Rate Swaps: Case Study of Pre-EMU Swaps in Pesetas

Dr. Pilar Abad-Romero, University of Barcelona, Spain

Dr. M. Dolores Robles, Universidad Complutense de Madrid, Spain



 Our main purpose in this paper is to build an interest rate swap valuation model that explicitly considers the risk of default and liquidity in line of the model of Duffie and Singleton (1997). Using the new efficient estimation method proposed in Duffie, Pedersen and Singleton (2002) to estimate affine term structure models, we estimate a two-factor valuation model for interest rate swaps denominated in pesetas. The factors estimated correspond to the level and the slope of the interest rate curve.  In spite of the rapidly expanding market for interest rate swaps, there are few specific valuation models for this type of asset. This fact is directly related to the inherent characteristics of swaps, such as the default risk and the liquidity risk, which cause that the valuation models for other fixed income assets such as public debt are not useful. Regardless of this, banks and investors have been calculating the discount rates required for the valuation of interest rate swaps based on the forward rates obtained from the swap term structure. However, this approach, as shown in Abad (2003), is not appropriate since the forward rates are not unbiased predictors of the future cash rates in this market.


Cited by:


Human Capital, Exports, and Economic Growth:  A Causality Analysis for Pakistan, 1975-2005

Dr. Arshad Hasan, Scholar, Mohammad Ali Jinnah University, Islamabad

Dr. Muhammad Shoaib Abdullah, International Islamic University, Islamabad



 Human capital and exports play a vital role in the economic growth of a country. This article examines the causal relationship between human capital, export, and economic growth using data for Pakistan from 1975 to 2005. Results of multivariate cointegration analysis indicate the presence of at least one cointegrating equation. Bivariate Cointegration analysis discovers the long term relation ship between export and economic growth. Granger causality test also confirms the presence of unidirectional causality between exports and GDP. It is also found that in the long run there exists a unidirectional Granger causality between human capital and GDP. However no relationship is found in human capital and exports. Therefore, government should concentrate on developing human resource which  will serve as engine for economic growth and prosperity.  Role of human capital in determining the level and growth of GDP per capita has been emphasized during last few decades. Various theoretical models include human capital as a factor of production and assess the accumulation of human capital as an element of the growth process. But most of the work is mainly theoretical and focuses on different growth model specifications and their associated economic properties.. Economic theory suggests that human capital would be an important determinant of growth, and empirical evidence for a broad group of countries confirms this linkage.


Cited by: 3


The Economy Machine

Dr. Serdar Ongan, Istanbul University,Turkey



 Relating a technological concept such as a machine, which functions based on certain physical rules, with economy, in other words, an attempt to explain (demonstrate) an economic theory should be quite interesting. This study is an attempt to provide quite fundamental and practical information on the functioning of a machine produced about fifty years ago, the theoretical framework of which is constituted by the IS-LM model in an open economy. However, before this point, an outline of the relations between economy and many other social and natural sciences including physics, which may be considered quite distinct from economy, is provided as they become tangible thanks to this machine that works on a hydrodynamic principle.   Before you buy a book on biology, you can suppose that you will be reading about living organisms. Similarly, when you start a chemistry course, it is possible that you would envisage that you will be studying the combination ways of different substances. However, when many people considering that they know economy very well as a result of their lifestyles are asked about what economy is, they have difficulties in defining (Callahan, 2004). Likewise, sometimes teasing or sometimes ignorant description that an economist is an accountant is frequently encountered and sometimes approved by economy students is an indication that economy is perceived as a routine, boring, and quite shallow social science, at least by those who make this description and by those students who agree (Colander, 2000). However, as defined as A Study of Mankind in the Ordinary Business of Life by Alfred Marshall, economics today has become not only a social science (Reynolds, 2006) but also a much more complex science with diverse areas of study.


Cited by: 2


Industrial R&D Performance in Korea: An Inter-industry Comparison of Technology

Trade Competitiveness

Gyungmin Pyo, IITA (Institute for Information Technology Advancement), Daejeon, Korea



 Korea’s national competitiveness has been an on a steady uptrend for almost a decade.  In the Global Competitiveness Report 2007-2008, WEF (World Economic Forum) ranked Korea 11th of 131 countries.  However, this improvement in competitiveness hardly affected Korea’s technology trade deficit.  In this paper, we construct a simple index to measure technology trade competitiveness, based on existing methodologies, compare technology trade competitiveness of individual sectors of the Korean industry, and discuss strategies and policies capable of enhancing national competitiveness in this area.  In the World Competitiveness Yearbook recently released by IMD (International Institute for Management Development), Korea moved up three rungs from the previous year to claim the 29th place among 55 countries evaluated.  Ranked 7th in scientific infrastructure and 6th in technological infrastructure, Korea’s national competitiveness continued the uptrend begun since the end of the financial crisis of the late 1990s.  This type of national competitiveness ranking is also published by the World Economic Forum (WEF) and the Japan Center for Economic Research (Ministry of Science and Technology (2007a)). 


Cited by:


Perceptions of Proper Ethical Conduct of Russia’s Future Managers:

 A Replication of Deshpande, Joseph and Maximov

Dr. M. P. Ludlum, University of Central Oklahoma

Dr. Sergey Moskaloinov, Ulyanovsk State University, Russia

Dr. Michael Machiorlatti, Oklahoma City Community College



 In 2000, Deshpande, Joseph and Maximov surveyed Russian business managers with a variety of ethical questions. The present study is a replication of those findings within a population of business students. We wanted to contrast the previous research with the next generation of business managers. Significant differences were found between male and female ethical views. Several significant differences with the previous survey were found.  Recent studies in the United States shows a link between unethical views during college and unethical behavior in the workforce (Nonis and Swift, 2001a; Knotts, Lopez and Mesak, 2000; Sanders, 2002; Silver and Valentine, 2000, Nonis and Swift, 2001b, Johns and Strand, 2000; Rawwas and Isakson, 2000). While these findings are preliminary, they point to the importance of this line of research. The attitudes students have now translate into behaviors they will have in the business world. Today’s college students will be the next generation of business employees, owners, managers, and regulators. Reiss and Mitra (1998, p. 1581) explained, “In order to study the attitudes and behaviors of future organizational leaders one can look to current university business students.” If correct, the future of Russia’s views on business ethics depends on the attitudes of the current students.


Cited by:


The Synergistic Interaction Between Point of Purchase Communications and Public Relations

Dr. Nurhan Babur Tosun, Marmara University, Turkey



 From a theoretical perspective, there is an emergent trend toward the planning of point of purchase communications strategies in order to build store image, store atmosphere and store organization. But according to our view, the benefits of strategising and planning cannot be fully realized unless they are supported by the corporate public relations. In this paper we explore the idea that to create market value in store there should be a synergistic interaction between corporate public relations and point of purchase communications. Corporate public relations and it’s associated activities should work alongside POP communications to support it and create maximum efficiency in the system.  Point of purchase communications are a powerful integrated marketing communications tool since they reach consumers at the moment and the place where they are taking decisions. Purchase intentions often don’t result in an actual purchase because of the situational factors such as out-of-stocks, competitive brands that are on promotion and attention-grabbing displays. Many consumers seem to make choices at the point of purchase and don’t know in advance what brand they are going to buy (Pelsmacker et al.,, 2001;349).  According to Park(1989:124); besides altering purchase intentions, the store environment also significantly influences consumer behaviour in the sense that about one-third of unplanned purchases can be attributed to the fact that the point of sales environments makes consumers recognize new needs while they are shopping.


Cited by:


Why Did Foreign Firms Upgrade Their US Listings?

Dr. Kam C. Chan, Pace University, Pleasantville, NY

Dr. Annie Wong, Western Connecticut State University, Danbury, CT



 This study examines whether foreign firms upgraded their American Depositary Receipt listings from over-the-counter market and PORTAL to major US stock exchanges is to facilitate future financing activities or is to increase investor interest. Using a sample of American Depositary Receipts upgraded to major US stock exchanges in 1994-2002, we find that there was a significant increase in brokerage firm coverage after the upgrades. However, there is no significant increase in financing activities for the foreign firms after they have upgraded their US listings.  The rapid globalization of financial markets is reflected by the increasing number of foreign firms that cross-list their shares in the US as American Depositary Receipts (ADRs). An ADR represents a certain number of underlying shares of a foreign firm in a foreign country. They can be categorized as Level 3, Level 2, Level 1, and privately placed under Rule 144A. Depositary shares may be exchange listed and non-exchange listed in the US. For the exchange listed form, they include Levels 3 and 2 ADRs traded on the New York Stock Exchange (NYSE), the American Stock Exchange (ASE), and the National Association of Securities Dealers Automated Quotation System (NASDAQ).


Cited by:


Education and Environment:  Dilemma Between Economic Growth and Environment in China

Yan Qin, The City University of New York, NY



 This paper will use two-stage Durbin method to analyze Chinese economic growth, we find that in China, labor market has redundant and labor elasticity of GDP is negative. Physical capital investment has wrong direction and physical capital elasticity of GDP is negative also, the GDP growth reasons are human capital and “pollution”. So, if China plans to make a harmonious society, achieves its GDP target and control “environment”, the only way is increasing human capital investment to support China’s sustainable and green growth. We find China faced a policy dilemma between economic growth and environment. At the conclusion, we give following three suggestions: Increase investment in human capital, protect intellectual property right and privatization property right, “One Family, One Car” policy.  Since economic reform and opening up to the world, China has achieved rapid economic growth, industrialization, and urbanization. Annual GDP growth rate is more than 8%. But at the same time, lack of property protection and lower proportion resource investment on human capital, people no incentive to prove technology; few original, creative men would like to stay in China and the resources that such growth demands and the environmental pressures it brings have raised grave concerns about the long-term sustainability and hidden costs of growth. Harmonious society and green GDP are the government targets. But they did not make the specific strategy plan to achieve this target.


Cited by:


The Impact of Business Strategy on Regional Sustainable Development

Dr. Constantin Bratianu, Academy of Economic Studies, Bucharest

Dr. Alina Mihaela Dima, Academy of Economic Studies, Bucharest

Simona Vasilache, Academy of Economic Studies, Bucharest

Drago Talvescu, Academy of Economic Studies, Bucharest



 Sustainable development is an ambitious objective undertaken worldwide from various angles, whose implementation takes place most appropriately at regional level. It is essentially linked to economic growth and –above policies set up by the authorities – the most tangible contribution to the wellbeing of the community comes from the business environment as creator of added value. Regional sustainable development is influenced by the ability of the enterprise, especially SMEs to create strategies that confer them sustainable competitive advantages on the local and global market, so as to be profitable and pass on their wealth to the community. Romania is a perfect example for studying the lack of sustainable development, with South West Oltenia distinguishing as one of the poorest regions in the entire European Union. The poverty of the region was perceived through the eyes of the regional authority and numerous indicators calculated based on secondary data, suggesting that the business infrastructure is very weak and that management capabilities are poor. The actual assessment of this hypothesis was tested in a survey of managers from throughout the region, revealing that they are mostly unaware of their internal and external business environment, they cannot correctly identify business opportunities following the European integration and do not do much to improve the standard of living of the local communities since they are far from being prosperous themselves.


Cited by: 4


A Quantitative Review of Organizational Outcomes Related to Electronic Performance Monitoring

Dr. D. Scott Kiker, Auburn University Montgomery, AL

Dr. Mary Kiker, Auburn University Montgomery, AL



 We employ meta-analysis to assess the relationships between electronic performance monitoring (EPM) and subordinate job performance, stress, and job satisfaction.  We found that EPM has a positive effect on performance quantity but a negative effect on performance quality.  However, the EPM-performance quality relationship was moderated by task difficulty such that EPM improves performance quality when the task is simple, but detracts from it when the task is complex.   EPM was also shown to be negatively correlated with employee job satisfaction and positively associated with job stress.  Implications of these findings, as well as recommendations for future research are discussed.  The widespread proliferation of computer technology has significantly altered many traditional business practices.  In the context of monitoring employee performance, the availability of these technologies has the potential to more accurately quantify indicators of employee performance without the inherent shortcomings of human processing.  In addition, there may be significant cost savings associated with assessing employee performance electronically.  Electronic performance monitoring (EPM) systems use electronic technologies to collect, store, analyze, or report the actions or performance of individuals on the job (Nebeker & Tatum, 1993).  A 2001 survey of U.S. corporations attests to the pervasiveness of EPM systems in today’s organizations. 


Cited by:


Technology Readiness for Innovative High-Tech Products: How Consumers

Perceive and Adopt New Technologies

Dr. Ahmet Emre Demirci, Anadolu University, Turkey

Dr. Nezihe Figen Ersoy, Anadolu University, Turkey



 The products and services companies offer sometimes become commodities long before they are diffused and adopted at desired levels by their target audiences. Shortening life cycles of products and services as well as rapidly shrinking technology s-curves are forcing businesses to better structure their innovation efforts. While these trends are vital to business sustainability and survival, understanding potential customers’ technology readiness and their perceptions concerning certain products and services could provide businesses with a leading-edge position in their domain. This study is a replication and an extension of Parasuraman’s study on the Technology Readiness Index (TRI). Our research aims to uncover the possible differences between the number and the structure of factors with regard to the technology readiness of potential customers.  As the intensity of competition is rapidly increasing, more companies are offering technology-based products and services to satisfy and exceed the ever-changing expectations of the customers. While the number of innovative high-tech products and services is increasing as we speak, consumers’ experiences with these products and services are becoming a focal point for companies striving to survive in today’s digital world. Thus, the question of “why do certain individuals adopt new technologies, whereas others don’t?” is highly important for companies offering technology-based products and services (Tsikriktsis, 2004).


Cited by: 59


Financial Liberalization and Time-Varying Stock Price Volatility:

Firm Level Evidence from South Africa

Dr. Daniel Makina, University of South Africa, South Africa



 Focusing on the South African stock market, the paper addresses two questions at firm level. First, it examines whether stock price volatility changes over time and whether it is predictable. The objective is to test if the phenomenon of volatility clustering or volatility pooling observed in developed markets such as the U.S. also exists in a small emerging market like South Africa. Second, the paper examines whether financial liberalization impacts on stock price volatility. Using the GARCH model, the paper finds evidence of predictable time-varying volatility in many of the top 40 companies listed on Johannesburg Stock Exchange (JSE). Also, the paper finds little evidence in support of the hypothesis that the process of liberalization increases volatility in an emerging market. Furthermore, GARCH effects are found to be more pronounced in the post-liberalization period than in the pre-liberalization period for most firms, thus showing that financial liberalization brings about volatility clustering as is also obtaining in developed markets.  One of stylized facts of high frequency financial time series is that they exhibit volatility clustering meaning that periods of high volatility are likely to be followed by subsequent periods of volatility, and periods of low volatility are likely to behave similarly. Engle (1993) has argued that these clustering phenomena suggest that volatility has an important predictable component with real practical importance as investors can make improved portfolio adjustment and hedging decisions.


Cited by: 2


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