Current Strategies in Economics and Management Vol. 4

Dividend Theory Controversies and Nigerian Firms

2021-08-25T11:12:21+00:00

This study examined the endless arguments between dividend policy and firms’ value in Nigeria. This study made use of 24 quoted companies selected from 10 sectors of Nigerian economy from firm’s annual reports and accounts for the period of 2012-2017. The results found as follows; few numbers of companies are paying high dividends, while the rest companies are paying very low or no dividends that leverage firms are likely to pay lower dividends in Nigeria. It was also found earnings exerting positive and significant influence on the firms’ value, whereas dividend per share insignificantly impacts firms’ value. Therefore, firms are advised to improve on their operations by managing the resources of their firms effectively and efficiently in order to increase earnings.

Does Quality of Financial Statement Affected by Internal Control System and Internal Audit? Global Perspective

2021-08-25T11:14:19+00:00

The purpose of this study to examine and analyze the influence internal control systems and internal audit to financial statement quality of local government. Usefulness of research as input for local government to improve implementation internal control, effectiveness of the internal audit function and improve quality of financial reports. Data conducted by taking 66 local government unit tool of the 15 districts and city in Indonesia. Analysis data study using path analysis. The conclusion is internal control system and internal audit partially and simultaneously have positive effect on the quality of financial statements.

Models for Ordering Multiple Products Subject to Multiple Constraints, Quantity and Freight Discounts: Scientific Perspectives

2021-08-25T11:17:26+00:00

One of the most important responsibilities of a supply chain manager is to decide “how much” (or “many”) of inventory items to order and how to transport them. This paper presents four mixed-integer linear programming models to help supply chain managers make these decisions for multiple products subject to multiple constraints when suppliers offer quantity discounts and shippers offer freight discounts. Each model deals with one of the possible combinations of all-units and incremental quantity discounts and all-weight and incremental freight discounts. The models are based on a piecewise linear approximation of the number of orders function. They allow any number of linear constraints and determine if independent or common (fixed) cycle ordering has a lower total cost. Results of computational experiments on an example problem are also presented.

Scientific Approach on Radical Uncertainty, Dynamic Competition and a Model of the Business Cycle: The Implications of a Measure and an Explanation of What Is Supposed Non-Measurable and Non-Explainable

2021-08-25T11:20:10+00:00

The influence of radical uncertainty and expectations on economic behaviour is indisputable, whether on entrepreneurship, innovation, investment, or the behaviour that contributes to the business cycle. It is rather surprising, therefore, to see widespread ambiguities in accounts of this crucial aspect of business life and indeed, human existence. In particular, the frequent assumption ex hypothesis that radical uncertainty is non-measurable and non-explainable constitutes a major misunderstanding that obstructs the analysis of economic growth and development and more generally, the study of economic dynamics.

This essay first of all underlines the conceptual difference between uncertainty and expectations. It then establishes the possibility and delineates a method of measuring true or radical uncertainty by means of the monthly EU business tendency surveys. This method allows the derivation from these surveys of both more and better information than they at present provide and also some indicators that are relevant mainly in an evolutionary perspective. In order to obtain a deeper understanding of such procedures, some applications have been carried out. A model of dynamic competition and the business cycle centred on the relation between innovation and uncertainty is then specified and tested using a FIML estimator.

The Details of Workplace Spirituality, Job Satisfaction and Organizational Citizenship Behaviors: A Theoretical Model

2021-08-25T11:22:46+00:00

Workplace spirituality has steadily been gaining attention in the last couple of years. Many researchers have investigated the role of “workplace spirituality” with the aim of generating research data that would firmly entrench this construct as vital in the workplace. This article proposes the relationships between workplace spirituality, job satisfaction and organizational citizenship behaviors. It examines the relationship between three workplace spirituality components – meaning and purpose in work, recognition of an inner life or spirit and interconnectedness with the various forms in which organizational citizenship behaviours manifest, mediated by the job satisfaction experienced by the employees. This study can provide significant inputs to promote managerial effectiveness, change management, leadership, holistic performance and growth of organizations, through environments which promote workplace spirituality.

Market Expectation Theory

2021-08-25T11:24:57+00:00

The market expectation theory is a theory that explains the behavior of security prices upon a company making a public announcement of an event such as earnings, dividend, and merger announcements. The theory suggests that investors and market participants project the company's overall anticipated performance/outcome at a particular moment in time, based on the market, economic, political, and environmental factors. The theory also suggests that investors and market participants have forecast information about the performances of the company. Any information outside the forecasted results will trigger a reaction that affects the current security holders' value, as reflected in the expected future economic earnings of the company. Thus, the price of a security is determined by the market expectations (buyers and sellers) of the firm's future performance. The market expectation theory is founded on the principle of market efficiency. It is useful to the event studies and the market efficiency studies in analyzing the abnormal returns of security prices upon a company making public announcements. The theory is also useful in analyzing the effect of events on the value of the firm.

Estimation of Production Efficiency for Wheat Producing States in India Using Stochastic Frontier Approach

2021-08-25T11:27:47+00:00

The paper examines the production efficiency of wheat producing states of India using state level data for the periods 1990-91 to 2004-05 and 2005-06 to 2013-14 using stochastic production frontier model proposed by Battese and Coelli (1995). The results show that inefficiency is present in agricultural production of the states where mean efficiency estimates ranges from 0.8776 to 0.6634 for 1990-91 to 2004-05 and from 0.9611 to 0.6167 for 2005-06 to 2013-14. For both sub-periods, institutional credit, net irrigated area and consumption of fertilizers are seen to have a significant positive impact on agricultural production in these states. Total state road length per unit of area is seen to be statistically significant in reducing inefficiency for the period 1990-91 to 2004-05. For 2005-06 to 2013-14, the variables found to be statistically significant for the variations in technical efficiency are rate of rural literacy, rate of technical education, share of agricultural NSDP to state NSDP and total state road length per unit of area.

Descriptive Models of Organization and Management within an Economic Entity as System: Scientific Approach

2021-08-25T11:31:33+00:00

The systemic approach in management does not oppose holism to reductionism nor a global approach to a local approach but rather tries to reconcile analytical images to integrative images, showing that the whole is reflected in each of its parts and each part is a small-scale projection of the whole. The systemic approach does not give up the logical and analytical tools which investigate reality by dissecting, fragmenting and decomposing it into its constituents, but it recovers them to obtain morphological, synthetic, dynamic and lively development of this reality. The principle of system approach uses deduction and induction, analysis and synthesis, to discover internal interrelationships and connections that drive complex organized assemblies. The true values of this approach are found not in simplistic schemes such as "input-output" or in "circular" models that economics and management textbooks are full of and which, ultimately, establish a different kind of formalism.

We are interested in the formulation and implementation of the descriptive management, i.e. what managers decide to do, the alternatives of action and final stage of implementation and the feedback absolutely necessary.

Marketing Strategy for Murabahah Financing Products at Islamic Rural Banks in East Java Indonesia

2021-08-25T11:36:13+00:00

This study aims to identify the characteristics of the marketing strategies used by Islamic Rural Bank (IRB) in East Java. A number of recommendations were further explored in the results of individual studies that had been carried out previously on IRB in East Java. Marketing in this study is intended as an effort to acquisition and retention of IRB customers. This research is a literature study using secondary data to answer research questions. Secondary data is obtained from scientific literature published and published online. The search engine used is Google Scholar with the keyword [BPRS murabahah "East Java" marketing]. Using this keyword, 271 search results were obtained. This number is quite relevant to the situation of Islamic economic research in Indonesia. About 90% of this amount can be accessed completely by researchers. After that, the researcher reads one by one the article to get a description of the marketing strategy that is carried out in association with the results of the research concerned. Only research that discusses murabaha or wider (general funding) is taken for further analysis. Through this procedure, 16 relevant studies were found and could be used for further analysis. Data is then analyzed using the logic of research, related theories, the results of similar research from data and the results of research in a broader context. At the end, a number of recommendations can be taken to develop a better framework and therefore a better marketing strategy. This study recommends the use of alternative SWOT methods to formulate strategies such as SPACE marketing strategy and AWOT marketing strategy.

Using the LMDI Decomposition Approach to Analyze the Influencing Factors of Carbon Emissions in Tunisian Transportation Sector: Critical Approach

2021-08-25T11:41:24+00:00

The transportation sector plays a key role in the economic and commercial development of Tunisia. However, it is an energy-intensive sector that is responsible for 25.3% of Greenhouse Gas (GHG) emissions. In this paper, we use the LMDI decomposition approach of CO₂ emissions stemming from the transportation sector with its different modes (highways, railways, civil aviation and waterways). Our objective is to evaluate the contribution of each of the main factors responsible for these emissions, namely the energy efficiency, the structure and the level of development of the transportation sector. The empirical analysis of CO₂ emissions data concerning this area for the period 1991-2016 shows that the rapid growth of these emissions is mainly due to the increase in the level of transport development in Tunisia with a particular predominance of road transportation. As for the transportation sector energy efficiency, it was shown that there is an inhibition of CO₂ emissions.

Mortgage Lending Discrimination and Differential Volatility in Neighborhood Property Values

2021-08-25T11:47:14+00:00

Observations of significant differences in loan terms between demographically distinct groups of borrowers are often interpreted as evidence of demographic discrimination. The competitive nature of mortgage lending undermines explanations of such differences based on managerial preferences for certain demographic groups while the ease and accuracy of measuring credit risk render common theories of lending discrimination based on exogenous asymmetric information increasingly implausible. Statistical procedures lacking economic foundations may also expose empirical tests for discrimination to model risk. Seeking the simplest possible explanation for these observations, we consider the valuation of secured mortgages by lenders in a classical asset-pricing model having complete markets, common knowledge and arbitrage-free valuation. Using both analytical and numerical solutions, we show that the effect of neighborhood variations in housing price volatility and the irretrievability of the value of housing services on the strategic exercise of the options embedded in common mortgage contracts induce rational lenders to offer different loan terms and balances to borrowers who exhibit identical measures of credit risk and are distinguished only by observable demographic traits.

Recent Perspectives of the Impact of Financial Structure on Return on Equity: Evidence from Wholesale of Motor Vehicle Parts and Accessories Industry

2021-08-25T11:50:21+00:00

A widely debated topic during the last years is represented by the choice of financial structure of companies, especially in developing or emerging countries, characterized by economies without a tough and a mature financial system. The purpose of this research is to determine whether there is a relationship between capital structure and firm performance of firms active in Romania in the wholesale of motors vehicle parts and accessories (NACE 4531). Capital structure refers to how a firm chooses to finance their assets and future growth by dividing debt into subcategories (bank, commercial) and time horizon, while firm performance is evaluated by the return on equity (financial return). By determining this relationship, firms in these sectors should have a better understanding of how to select the financing for their future growth. The main output of the study consists in the fact that the financial structure divided by debt components of the companies does not influence significantly the return on equity during periods of low interest rates, like the case of Romania during 2016.

Do the Rigorous Listing Requirements Matter for IPO Assessment in the Chinese Stock Market?

2021-08-25T12:00:17+00:00

With the context that the Chinese government reforms its IPO assessment mechanism to registration-based system, this study, using two multivariate regression models based on prior studies, aims to examine whether the Chinese rigorous listing requirements are able to help the stock exchange to screen high quality IPO firms. It suggests that the approved IPO companies have better performances than failed ones, but the listing requirements lose IPO-screening functions, because the majority of listed companies performed poorly rather than better after their IPOs. This result is different from previous findings that regard an IPO market as a screening device in the developed stock markets.