Open Access Original Research Article

Consolidation in Banking Industry – A Cross Country Experience

Sriprakash Srivastava, Brajesh Kumar Tiwari

Journal of Economics, Management and Trade, Page 1323-1334
DOI: 10.9734/BJEMT/2014/7709

Aims: This Briefing Paper aims to know mergers and acquisitions activity in banking sector all over the globe.

Study Design: Cross-sectional study.

Place and Duration of Study: Selecting Countries of the World with different time period.

Methodology: The analysis has been made on the basis of regression equation and percentage with digram and figure.

Results: Number of international bank mergers has steadily increased overtime, but the percentage of bank mergers that are cross-border has been small. The percentage climbed during the late 1980s to reach a plateau around 15 percent in the early1990s. Between the mid-1990s and 2000, the share grew steadily to reach almost 30 percent in 2000. After a dip between 2001 and 2003, the percentage of cross-border mergers grew to over 35 percent in 2006. Table looks further into the regional structure of cross-border M&A in banking. It shows that Europe and the Americas experienced a significant growth in the share of cross-border bank mergers in the years 1996 to 2006 compared with to the years 1985 to1995. Asia, Africa/Middle East and Australasia, saw no significant change in the percentage of bank mergers represented by cross border transactions. While in some countries M and A activity accelerated in recent years, in some other countries, it slowed down.

Conclusion: The goal of a bank merger is to increase the bank's value in one way or another. Consolidation in banking industry is the need of the hour.  A lot of companies have merged with other companies to make a mega company. Consolidation will positively amplify the business prospects of the industry in the domestic as well as international market place. “Collectiveness is strength” will hold true on consolidation in Banking Sector. The pressures on capital structure to meet prudential capital adequacy norms necessitate the need for Consolidation in the banking industry. Consolidation will provide banks the ‘size advantage’. There is a need for consolidation in the banking industry to compete for the pie in the domestic as well as global market. No doubt everyone knows the criticality of the issue and urgent requirement of mergers in banking sector, But then river also have to face various rocks, pebbles and other interruptions in its natural flow and so does Banking sector has to face various challenges for mergers.

 

Open Access Original Research Article

Remittances and the National Household Disposable Income in Nigeria (1980-2025): Dynamic Forecasting Approach

Ernest Simeon Odior

Journal of Economics, Management and Trade, Page 1335-1355
DOI: 10.9734/BJEMT/2014/4879

This paper uses a data from the National Bureau of Statistics (NBS) from Nigeria and World Bank to analyze how the receipt of international remittances (from the rest of the world) affects the National Household Disposable-Income in Nigeria being one of the top 10 remittance-receiving countries in the world, with about 10,045 billion US$ in 2010. The study employs a dynamic forecast model to analyse the nature of this effect for both the short run (1980-2015) and long run (1980-2025). To ensure stationarity of the data, the study uses the individual root of Im, Pesaran and Shin unit root test. From the result, it is found that remittances have a significant effect on the national household disposable-income both in short and long run in Nigeria. These findings support the growing view that remittances can help increase the level of investment in human and physical capital in remittance-receiving countries. It was recommended that policies should be designed to ensure that remittances sent through the banks and other transfer institutions attract little or no interest.

 

Open Access Original Research Article

The Impact of Marketing Strategy Alignment on Supply Chain Performance

Ali Alavi, Mohammad Faryabi, Seyed Kamal Sadeghi

Journal of Economics, Management and Trade, Page 1356-1375
DOI: 10.9734/BJEMT/2014/8864

Aims: Considering competition concept changed from an inter-organizational concept to competition in Supply Chain level and made organizational competition concept to have competitive and survival ability in its activity area in current complicated environment by planning marketing strategies and aligning these strategies in Supply chain level. So, planning such strategies is very important.

Place and Duration of Study:  In this research chemical industry in Zanjan province and in Iran are discussed for 2 months and questionnaires are used to collect the data.

Methodology: In first part of this research, the subject importance and investigating theoretical background of this research is addressed and the relations between hypothesis and cohesion and coherence of model are investigated precisely. Because of limited scope of the research, total of the Population that includes managers and marketing experts and Supply chain of 80 companies are analyzed. Researchers used the Structural Equation Modeling to Investigate research Model, So LISEL Software is used to solve the Model. Also SPSS Software is used to analyze descriptive Statistics.

Results: There the results are analyzed which are divided in to two descriptive and deductive sections. The results indicate that the two main hypotheses of this research and all in all the variables of model have positive and significant relationship with each other. At last, some recommendation for future research and results and applicable suggestions are presented.

Conclusion: Considering insufficient studies and practical steps in this area, the results of this research are considered as a guideline for managers and experts to find their ways in marketing strategies and especially in chemical products industry.

 

Open Access Original Research Article

Should Water Resources be Managed as a Public or as a Private, Economic Good – the Croatian Dilemma

Zdravko Zekić, Luka Samaržija, MirjanaGrčić Fabić

Journal of Economics, Management and Trade, Page 1376-1392
DOI: 10.9734/BJEMT/2014/9545

The goal of this work is to provide a new outlook on the possibilities of water-resource management in the Republic of Croatia. Water resources and water supply systems are of vital and strategic significance for Croatia. Therefore, it is essential to develop a sustainable model for managing them. This will in turn ensure the access to drinkable water for the maximum number of people, the maintenance of high water quality levels, high quality water supply systems and the sufficient water reserves for the future generations.

The process of selecting the model for managing water resources is difficult and consists of many uncertainties, especially because of the negative economic trends occurring in Croatia over the last couple of decades. This created an unfavorable climate for  independent decision making concerning the management of  the country's strategic water resources. The current public opinion nurtures a belief that Croatia is being forced to privatize the governmental institutions which manage the water resources and that will lead to an array of negative trends resulting in water price increase, overexploitation and even restrictions of use for the most vulnerable sections of the society.

Privatization is the often used as a model of dealing with the state property, especially after the change of the socio-economic system. It has often been put to use in Croatia, but unfortunately, in a great number of cases it has not created the desired results. In this work,  cases from Argentina, United Kingdom, India and Bolivia will be analyzed, which will in turn provide a new outlook on this problem. The findings may also serve as assistance to the decision makers regarding the management of water resources. In this work, both arguments in favor and against the privatization of water have been analyzed and backed by the examples. In the conclusion, the authors propose a franchise model as alternative which that may satisfy the interests of the private investors, the state and ordinary citizens.

 

Open Access Original Research Article

Financial Markets and the Privileged Choice of the Uninformed Traders: The Role of Derivatives

Shiraz Ayadi

Journal of Economics, Management and Trade, Page 1393-1418
DOI: 10.9734/BJEMT/2014/8003

In this article, we will shed light on the importance that occupies the derivatives for the best functioning of the financial spot market. These products facilitate the intervention of the informed traders and constitute the privileged choices of these non informed ones that generate a concentration of activities in the derivative market. We will also show the appearance of the volatility in the French financial market. The latter generates a stimulus to the coverage against the risk through the intensive use of the derivatives and consequently to an increase of transactions volumes in the future markets and in the options. These mechanisms invented in the French financial market, encourage the informed investors, and especially these less informed ones to stick to these products in order to be covered against the risks of variability of the CAC40 index.

 

Open Access Original Research Article

How People Respond to Different Types of Humorous Advertising

Yueh- Hua Lee

Journal of Economics, Management and Trade, Page 1419-1433
DOI: 10.9734/BJEMT/2014/9947

Aims: This study examined the different types of humorous advertising on attitude toward advertising and brand in order to analyze the effect on brand recognition and brand recall.

Study Design: This study focused on three types of humorous advertisings: cognitive, affective, and social orientation, and used an experimental method to understand the influence of humorous advertisements on advertising attitude and brand communication effects.

Place and Duration of Study: The study was conducted in companies in the city of Taipei, Taiwan, between May and June 2012.

Methodology: This study used a 4 (affective, cognitive, social and non-humorous advertising) × 2 (low and high degree of advertising involvement) between-subjects factorial experimental design and the group of non-humorous advertisings as control groups. A total of 268 subjects were randomly and equally assigned to one of the four ads. Removing 28 copies of unusable questionnaires because of incomplete answers, 240 copies of the questionnaires were usable, resulting in a response rate of nearly 90%.

Results: Findings indicate that humorous advertisings do promote brand message comprehension, and are superior to those of non-humorous advertising.  In addition, the results indicate that different types of humorous advertising have different effects on brand recognition and brand recall.

Conclusion: The different types of humorous ads have statistically significant differences on various dimensions of brand communication. The humorous advertising of affective has greater brand recall than those of the humorous advertisings of social and cognitive. Furthermore, presenting an advertisement with humorous elements can transfer the consumers’ positive perceptions on the advertising to the brand itself, thus achieving effective brand communication.

 

Open Access Original Research Article

The Impact of Accounting Ethics in Improving Managers' Behavior and Decision Making in the Jordanian Companies

Nabil Alnasser, Osama Samih Shaban, Ziad Al-Zubi

Journal of Economics, Management and Trade, Page 1441-1456
DOI: 10.9734/BJEMT/2014/9682

The key to maintaining confidence of clients and the public is a professional and ethical conduct that make accountant act with integrity, objectivity, and independently, even to the sacrifice of personal benefit. The current study aims to examine the impact of accounting ethics in improving manager's behavior and decision making, and to examine the factors affecting accountants and managers' ethical behavior. A questionnaire has been designed for this purpose, and it was distributed to selected accounting employees working in different business environments. The number of questionnaires analyzed were (92) questionnaires. Resolution data were analyzed using the statistical program Smart PLS,(Partial Least Square). The study concluded that there is a significant influence of accounting ethics on improving managers' behavior and on decision making. Accountants must understand how factors such as values, norms, convictions, integrity, choices and courage interact with each other to impact managers' behaviors and decision making, and every company should have a code of ethics that can minimize risk, and ensure reliable financial statements, and the best ethics guide that staff can follow is their manager's real behavior, and a strong ethical values that reinforce the norms of ethical decision-making.

 

Open Access Original Research Article

Enhanced Index Tracking-an Extension of the Elton and Gruber (1976) Model

Davis Nyangara, Batsirai W. Mazviona, Taonaziso Chowa

Journal of Economics, Management and Trade, Page 1457-1474
DOI: 10.9734/BJEMT/2014/8687

Aims: The purpose of the study is to make a case for the development of middle-range models for use in developing markets by modifying the Elton and Gruber (1976) model to come up with semi-optimized index-tracking models with desirable tracking and excess return features.

Study Design:  Non-experimental empirical design.

Place and Duration of Study: Zimbabwe, Department of Finance and Department of Insurance and Actuarial Science, covering the period between February 2009 and June 2010.

Methodology: We use weekly data of 71 industrial closing prices from the Zimbabwe Stock Exchange (ZSE) for the period starting February 2009 to June 2010 to compare the return and tracking performance of the adapted models against simple capitalization-based tracking models.

Results: We find that the semi-optimized models yield tracking and excess return results that are not statistically significantly different from simple capitalization-based models, at the 1% significance level, yet only utilizing about half as many stocks.

Conclusion: The use of semi-optimized index-tracking models has potential to significantly reduce transaction costs while keeping tracking error within reasonable limits. However, their use results in inferior excess return performance on a risk-adjusted basis when compared to simple capitalization-based models. The use of the correlation coefficient in filtering stocks to include in a tracking portfolio yields superior tracking error results but inferior excess return results compared to the use of the ratio of beta to idiosyncratic risk. Portfolios with higher Active Share measures produce poorer tracking error and excess return results compared to lower Active Share portfolios. The use of passive portfolio management strategies on the ZSE is supported by our findings.

 

Open Access Original Research Article

Differences in Perceptions among Managers, Academics, and Students of the Importance of Various Aspects of Marketing Knowledge and Skills

Tina Vukasović

Journal of Economics, Management and Trade, Page 1475-1490
DOI: 10.9734/BJEMT/2014/10300

Aims: Knowledge and skills needed to be possessed and used by marketing practitioners in order to improve marketing management and firm performance are identified in this paper.

Study Design: The data from a survey, where marketing managers, academics and senior students in Slovenia took part, relating to the essential skills for working as a marketing manager, were analyzed by the analysis of variance in order to assess the extent of convergences or divergence among the responses of the three groups.

Place and Duration of Study: The study was conducted in companies in Slovenia, between March 2013 and May 2013.

Methodology: It was decided that a questionnaire-based survey would be the most appropriate way to gather primary data, as it would allow a comparison of the opinions of samples of marketing managers, academics and students. The questionnaire for business respondents was distributed by e-mail to a single respondent in each firm, generically described as the “marketing manager”. Third and fourth year marketing students at the different faculty in Slovenia received a shorter version of the questionnaire, excluding the section relating to managers’ knowledge and skills. The questionnaire for students respondents was also distributed by e-mail. Additionally, faculty members were asked to distribute a version of the questionnaire throughout their departments. The questionnaire for marketing academics respondents was also distributed by e-mail. Total sample size was 375.

Results: In general we can say that marketing professionals widely used marketing knowledge and skills. However, the academic marketing knowledge only is not enough for a successful work in the marketing department. For a successful transfer of knowledge into practice it is necessary to gain more skills.

Conclusion: The study reports the opinions on a vital aspect of marketing education shared by the three stakeholder groups. The study could easily be replicated in other countries and other institutions for assessing the generalizability of the results.

 

Open Access Mini Review Article

Education or Experience: The Potentiality in Yielding the Best Productivity at the Working Environment

Ehren Lee Sze Tseng, Rashad Yazdanifard

Journal of Economics, Management and Trade, Page 1434-1440
DOI: 10.9734/BJEMT/2014/8493

Till this day, knowledge surpasses strength in a way we handle different situation. Action may speak louder than words but by doing the wrong action it may bring us unpredictable misfortunes. The society of today is therefore in a dire need of essential knowledge through the use of the education system and experience accumulated from various encounter in life. This article is about a review between education and experience, the potentiality of either two or both in resulting to a better productivity. The combinations of the knowledge will result in better quality of work and productivity in the working environment.