Open Access Original Research Article

Testing Herding Effects on Financial Assets Pricing: The Case of the Tunisian Stock Market

Abderrazek Elkhaldi, Yosra Ben Abelfatteh

Journal of Economics, Management and Trade, Page 1046-1059
DOI: 10.9734/BJEMT/2014/8973

This paper highlights the contribution of behavioral finance to explain market anomalies since the eighteens. Particularly, we use herding behavior approach to elucidate financial asset pricing. Our study is based on Hwang and Salmon methodology [1], in which we use a state space approach based on Kaman’s filter to detect herding behavior in financial market [2]. We use a data of ten listed firms in the Tunisian Stock Exchange Market during the period June 2002 and May 2013. Our results seem to confirm that Tunisian Stock Exchange Market is affected by herding anomaly and that securities return must not deviate significantly from the overall profitability of the market. This can be explained by the fact that in such situation, investors tend to ignore their own information and pass align their investment decisions according to general market tendency.


Open Access Original Research Article

Steadiness and Mobility of Trade Patterns in the Baltic States

Grigori Fainstein

Journal of Economics, Management and Trade, Page 1060-1082
DOI: 10.9734/BJEMT/2014/8848

This paper describes specialisation dynamics in the Baltic States using Revealed Comparative Advantage (RCA) measured. We analyse the development of the distribution of the comparative advantage using descriptive statistics, Galtonian regression, and Gini coefficient. Intersectoral specialisation dynamics is investigated using Markov transition probability matrix. Trade patterns dynamics aggregated by factor endowments are also discussed.

Despite some contradictory results obtained using different methodologies the following general conclusions can be formulated.

Diversification is the general trend in the development of the comparative advantage structure in the Baltic States. The most polarized structure of specialization in the considered period is in Latvia, the most diversified is in Estonia. However the degree of mobility varies significantly between countries. The most mobile structure of specialization is in Latvia. In Estonia the mobility is the lowest.

For all the Baltic States trade patterns are highly persistent for the sectors with strong comparative advantage and strong comparative disadvantage. It is shown that the probability of remaining in the same class for analysed sectors is high. Commodity groups that belong to the intermediate classes exhibit higher mobility.

The share of primary products and the comparative advantage in this group decreased most significantly in Estonia. In Latvia the share of the product groups with a comparative advantage increased. The share of natural-resource intensive products decreased in all three countries, the share of commodity groups with comparative advantage also reduced. Multidirectional dynamics is observed in unskilled labour intensive products. While in Estonia this group has lost comparative advantage, the opposite trend is observed in Latvia and Lithuania. The share of technology-intensive goods rises in all countries. However only in Estonia and Lithuania the comparative advantage in this group increased significantly.


Open Access Original Research Article

The Cultural Diversity of German Companies’ Executive Boards and the Success of Their Internationalisation

Sebastian Weusthoff, Jana- Maria Grieser, Reinhard Meckl

Journal of Economics, Management and Trade, Page 1083-1101
DOI: 10.9734/BJEMT/2014/9144

The sociocultural composition of executive boards has a long-term relevance for the success of their companies and their organisation’s internationalisation. Companies must weigh the possible advantages of having employees from different cultural backgrounds against possible inefficiencies caused by cultural misunderstandings. Using on Upper Echelon theory and Social Capital theory we hypothesised that cultural diversity has a positive effect on internationalisation success. We used the “Blau Index” to calculate cultural diversity and measured internationalisation success as the level of internationalisation, a common success measure in internationalisation studies. Data were generated from companies’ annual reports. SMT members’ citizenships were additionally validated by internet-based business-oriented social networks. Controlling for team size and company size effects did not change our conclusions. Using a panel analysis, this article examines the effect of the level of cultural diversity in the boards of the DAX30 companies on their success in internationalising. Complementing previous studies, a slight but significant positive correlation was evident, assuming that a higher internationalisation success can be found in firms having a culturally diverse senior management team. Our study revealed a positive correlation between cultural diversity in SMTs and internationalisation success. The results of our study might serve as a good reason for adapting the social structures of German SMTs to the firms’ economic reality. Furthermore, it may encourage the legislative body to reexamine the German Corporate Governance regulations from an international perspective. Future research could investigate this correlation on a broader basis and reinforce our argumentation, possibly by including cultural studies.


Open Access Original Research Article

Investigate of Intellectual Capital in Nonprofit Organizations (NPOs)

Reza Najafbagy, Farhad Ghaffari, Nakisa Araghi

Journal of Economics, Management and Trade, Page 1102-1114
DOI: 10.9734/BJEMT/2014/7065

Aims: In recent decades, the management of the intellectual capitals has turned into one of the noteworthy and appealing issues. The main objective of the present research was to evaluate the components of intellectual capitals in nonprofit organizations. To this end, Procurement, Development and Renovation Organization of schools of Tehran province, which is considered as a nonprofit organization, was selected as the statistical population.

Study Design: Research paper.

Place and Duration of Study: In order to investigate the threefold components of intellectual capital, a nonprofit organization was particularly selected. The main activity of this organization is Construction of school buildings in order to achieve society educational goals. This research was done since September of 2012 to February of 2013.

Methodology: Therefore, at the initial stage theoretical study was carried out through library studies. Considering the fact that the research method applied was of descriptive type, the instruments employed for data collection was interviewing and questionnaire. The questionnaire includes 40 items and is adapted from a standard questionnaire that are cited in the Appendix A. This questionnaire was then distributed among the samples who were computed to be 124 (100 Men, 24 Women, age range24-68 years) participants utilizing Cochran formula. In order to test the hypotheses, structural equation modeling technique and PLS software have been employed.

Results: The results obtained from the concurrent studying on the components of intellectual capital on each other in the above-stated organization indicated that human capital has a large effect on the structural capital while human capital showed no relationship with relational capital. Also, structural capital has a significant impact on relational capital.

Conclusion: According to the resource-based view, the resources are considered as worthwhile that lead to efficiency development and potential investment in opportunities and confronting threats. With respect to the resource-based view and that structural and relational capital present at an acceptable level, the lack of human capital component indicates that human resource as a valuable source in the organization studied does not have proper planning and has not yet received a rightful place in the organization.


Open Access Original Research Article

Determinants of Market Participation among Maize Producers in Oyo State, Nigeria

Adetola I. Adeoti, Isaac B. Oluwatayo, Raheem O. Soliu

Journal of Economics, Management and Trade, Page 1115-1127
DOI: 10.9734/BJEMT/2014/7826

Smallholder farmers constitute the largest share of farm households in Nigeria and many of them are poor.  A way out of poverty for them is to address market related problems. In this paper, the market options available to these farmers, as well as market related factors that are problematic were investigated. Primary data were collected from 100 maize farmers in Saki Agricultural Zone of Oyo State, Nigeria. Seventy five maize farmers participate in the market while 25 farmers produce only for subsistence. The farmers are well experienced and cultivate about 5.6 hectares of land. About 90% do not have access to market while 64% do not have access to good roads. The study identified 4 market options and the most patronized was the farm gate market option. The censored tobit result, market price show that, member of a producer group, farm size, educational and total maize produced, road condition, primary occupation and transaction costs significantly affect farmers’ market participation. Policy interventions that seek to improve these factors are very important to market participation.



Open Access Original Research Article

Challenges of Civil Society Networks in Ghana: A Comparative Study of Four Networks

Seidu M. Alidu, Bossman E. Asare

Journal of Economics, Management and Trade, Page 1143-1158
DOI: 10.9734/BJEMT/2014/5856

Ghana is the first country within Sub-Saharan Africa to become independent from British colonial rule and one of Africa’s most promising democracies. Ghana’s adoption of the 1992 Constitution and its return to democratic rule in 1993 created viable political environment for civic groups to freely operate. Article 21(1) of the 1992 Constitution provides considerable space for the growth of participatory civil society and associational life, and Article 37(2) gives enormous powers for the formation and participation of civil society in the process of development. These constitutional provisions, coupled with the Ghanaian culture of self-help and donor-driven programs such as the Poverty Reduction Strategy Paper (PRSP), have improved Civil Society Organizations’ (CSOs) participation in both development and decision-making processes. Civil Society Networks serve the purpose of being a unified force for marginalized CSOs thereby consolidating democracy and also holding governments to account. 

Yet, some CSO networks in Ghana have not been able to fully utilize the available political opportunity to influence government policies. Notwithstanding this relatively favorable environment for CSO operation, it is still difficult for them to constructively engage government in the policy arena and influence decisions in favor of their constituents. This research, seeks to examine CSO networks in Ghana, specifically to ascertain the challenges they face in their effort to influence government policies as well as the various ways in which the identified challenges can possibly be overcome. It will address the following questions: how do we conceive civil networks in Ghana? What types of networks exist in Ghana and how do they strategically operate? What challenges do they face and what is the way forward?

Open Access Review Article

Recruitment and Selection in the Nigerian Public Service: Nature, Challenges and Way Forward

Ibrahim Yaro

Journal of Economics, Management and Trade, Page 1005-1017
DOI: 10.9734/BJEMT/2014/7941

Aim: To identify the irregularities of recruitment and selection exercise in the Nigerian Public Service being the government’s tool for increasing the workforce and filling in the vacant positions of those who left the service.

Study Design: This paper adopts a qualitative research strategy using comprehensive document review.

Place and Duration of Study: The study was conducted within the context of Nigeria Public Service from July to November, 2013.

Findings: It was identified that sentiment and other primordial issues like ethnicity, nepotism and favoritism are given more consideration in terms of employment than merit. This adversely led to labour turnover and increased costs of governance. The major challenges identified are constant political interference which manifested out of the desire of the politicians to get their relatives in the service; recruitment purely based on skills rather than good attitude and the principle of federal character that further compounded the problem in the form of ethnic balancing.

Conclusion: In order to refurbish sanity in the exercise, the Nigerian Public Service should lay more emphasis on meritocracy irrespective of applicant’s background and/or affiliation and the issue of political obstruction should be brought to a halt. Candidates to be considered for recruitment should have good and moral attitude in addition to skills and recruiters be accorded the desired independence and freedom as this will enable them to use appropriate methods of conducting the exercise in order to get it right.

Open Access Review Article

TQM Practices and Innovation Performance: A Review of Current Literature

Mohammad Waqas Raja, Song Wei

Journal of Economics, Management and Trade, Page 1018-1032
DOI: 10.9734/BJEMT/2014/7106

This study explores the trends identified in previous research studies in the area of quality management and innovation performance and has reviewed many research articles from various industries. The study explains why different quality practices are used for better innovation performance in different industries and also explains different scenarios in which the quality practices have a positive or negative influence on innovation performance. The paper firstly categorized these studies according to the journal in which these studies are published then further divide them according to their research design into quantitative, qualitative and review types. The studies are analyzed on set criteria of industry, quality indicators, outcome indicators and results. The trends identified in this paper shows that irrespective of type of industry most studies have found a positive relationship between quality practices and firms innovation performance and in cases where the relationship is week or negative is because of various contextual factors like uncertainty in business environment, firm size, financial resources and firms culture that has modified this relationship.


Open Access Review Article

Credit Market Development and Investment Efficiency in Nigeria

Ogbuagu Uchechi Rex, Chijioke Mercy Ihuoma, Peter Nwachukwu

Journal of Economics, Management and Trade, Page 1033-1045
DOI: 10.9734/BJEMT/2014/8830

Stock markets provide important source of investment capital at relatively low cost. A well-functioning and liquid stock market helps investors to reduce unsystematic risk and increase the marginal productivity of capital. Developed credit market improves the efficiency of investments and resource use thereby contributing to higher economic growth and development of a nation. Unfortunately foreign private inflows in Nigeria are direct contributions by large parent-multi-national to their subsidiaries that dominate the oil and communication industries. Thus, institutional investors in Nigeria suffer dearth of investible surpluses characterized by inefficient investment and consequently is unable to match her huge export earnings with appreciable level of development.  Investment efficiency is necessary for resources to be channeled to core growth activities of the private sector. This paper therefore examines the relationship between credit market development and investment efficiency in Nigeria using standard econometric methods of error correction mechanism. The results show at 5% level of significance that there is inverse and significant relationship between investment efficiency and interest rate in agreement with Keynesian theory of investment and provide evidence for the existence of a negative relationship between investment efficiency and trade openness to credit market development in Nigeria. It is recommended that interest rate management be used to promote investment efficiency, motivate savings and provide credits for investors at a competitive price. Perhaps a re-emphasis on use of cost and social benefit analyses for evaluation of investment will not be out of place.


Open Access Review Article

The Shipping Marketing Strategies within the Framework of Complexity Theory

Alexandros M. Goulielmos, Evi Plomaritou

Journal of Economics, Management and Trade, Page 1128-1142
DOI: 10.9734/BJEMT/2014/9220

This paper examined the shipping marketing strategies within the framework of complexity theory. Then using prevailing models in both services marketing and complexity theory, core elements like dynamic life cycle of products and industries, strategy, leadership, team-work as well as safety and security culture are presented. Shipping industry is in this paper contrasted and compared with other service industries for peculiarities that exist and make this industry unique for business-to-business marketing. Analysis is based on case studies of leading shipping companies of bulk and liner markets.