Open Access Original Research Article

The Effects of Supervisory Mechanism in Taiwan

Pao- Chen Lee

Journal of Economics, Management and Trade, Page 86-101
DOI: 10.9734/BJEMT/2015/14265

This study empirically explores Taiwan Supervisory mechanism affect firm performance on a data base of 537 listed firms. The regression results yielded statistically significant effects indicate more independent supervisors; less pledge and remuneration and more expertise with lecturer, certificate and business experience which the Supervisors have and the quantity of the supervisors’ members did play a role in monitoring firm performance. The results prove the Supervisors in Taiwan’s supervisory mechanism have some effects on firm performance, which may help refine general knowledge on the role of corporate governance and may provide impetus for further research in the Taiwan setting.

 

Open Access Original Research Article

The Impact of Working Capital Management on the Profitability of Smart Bags Limited Manufacturing Firm in Zimbabwe

Leonidas Ngendakumana, Nelson Jagero, Francis Gondo

Journal of Economics, Management and Trade, Page 102-111
DOI: 10.9734/BJEMT/2015/14078

Since the adoption of the multiple currencies, the Zimbabwean economy has been on a growth path, however liquidity challenges have been stifling further growth prompting most businesses to reposition themselves. With the liquidity situation worsening, it has become important for businesses to understand how working capital management, as a key business driver, is impacting performance of their businesses. This research project seeks to critically examine the impact of working capital management on the profitability of manufacturing firms in the multi currency environment in Zimbabwe using the case of Smart Bags (Pvt) Ltd. The paper makes an attempt to study the relationship between measures of working capital management efficiency and profitability. The study is based on secondary data collected from [1,2]. The study was conducted using descriptive statistics and correlation analysis specifically Pearson’s correlation coefficient to measure the pair-wise association between dependent and independent variables. The study outlined the significant and non significant of the relationship between the dependent variable (profitability) and the independent ones. It was found that there is a weak negative correlation between Average Collection Period and profitability as well as between the Cash Conversion Cycle and profitability.  It was also revealed that there is a weak positive relationship between Average Payment Period and profitability. According to the findings it was revealed that there is a strong positive relationship between Inventory Turnover Ratio and profitability as well as between a company’s liquidity and profitability. The study also revealed that there is a strong negative relationship between the debt ratio and profitability and also between a company’s aggressiveness of working capital financing policy and its profitability.

 

Open Access Original Research Article

Foreign Direct Investment and Resources Utilisation: Implications for Nigeria’s Economic Development

K. E.Uma, F. E. Eboh, Ikechukwu D. Nwaka

Journal of Economics, Management and Trade, Page 112-128
DOI: 10.9734/BJEMT/2015/14334

The paper focuses on the effects of resources used by foreign investors and its implications on the economic development of Nigeria from 1980-2012. The annual time series data on foreign direct investment, average manufacturing capacity utilisation, unemployment rate and real gross domestic product were investigated for stationarity using Augmented Dickey-Fuller test. A Johansen Co-integration test revealed one co-integrating relationship. Vector Error correction model was employed to analyse the formulated equations. Findings show that unemployment is indeed growth retarding. Impressively, foreign direct investment including all other variables impacted significantly on economic development.  On the innovation accounting, variations in RGDP are explained more by unemployment in the longer period of about 21%. This implies that economic development is accelerated by creating jobs for the teaming populace. On that basis, we made the following recommendations, among others: Security of life and property must be resolved once and for all; crime rate must be seriously and sincerely addressed by the Federal Government; cost of doing business should be drastically minimised to encourage both domestic and foreign investors; and the power sector has to be practically tackled.

 

Open Access Original Research Article

Corruption Effects on Private Enterprises Productivity in Developing Countries: Firm Level Evidence from Burkina Faso

Akouwerabou B. Denis, Bako Parfait

Journal of Economics, Management and Trade, Page 129-144
DOI: 10.9734/BJEMT/2015/15017

It is difficult to thoroughly explain what leads private enterprises in Burkina Faso into the practice of corruption. The argument most often offered is that corruption provides some gains. In this article, we have attempted to determine if the practice of corruption helps small and medium-sized enterprises (SME) improve their productivity. The data were collected from 351 private SMEs in the two largest cities in Burkina Faso. The survey only covers enterprises dealing in the supply of materials and office supplies. After checking the endogeneity of corruption under the methods of Two-stage Probit least squares (TSPLS) and Heckman two stages, the results indicate that corruption negatively affects the SMEs that practice it at the scale of the entire sector studied. Nevertheless, when considering only the SMEs that take part in the government’s tender invitations, we notice that the SMEs that give bribes are more productive than those that do not.

 

Open Access Original Research Article

Evaluating Performance of Chest Diseases Departments Using Hospital Efficiency Indicators in Turkey

Aykut Ekiyor

Journal of Economics, Management and Trade, Page 145-150
DOI: 10.9734/BJEMT/2015/13864

This study aims to investigate the performance of chest diseases departments using hospital performance indicators as specified in Pabon Lasso Modal (PLM). It is also intended to draw attention of hospital management on hospital performance issues to achieve a better level of functioning. This is a descriptive cross-sectional study analyzing chest diseases departments of state university and private university hospitals in Turkey. Convenient sampling method was chosen based on data availability of the hospitals and limitations of the PLM. Three major cities in Turkey (Ankara, Izmir and Istanbul) were chosen based on population and obtainable data for the sampling purposes. A total of 10 hospitals were selected, 5 of which were state university hospitals and the remaining 5 private university hospitals. The results indicated that all chest diseases departments of private university hospitals were in a higher zone from the public university hospitals according to the PLM.

 

Open Access Original Research Article

Strategic Management of Growth in Manufacturing Companies in Sub-Saharan Africa: A Case Study of Nigeria

S. A. Alayemi, R. I. Akintoye

Journal of Economics, Management and Trade, Page 151-160
DOI: 10.9734/BJEMT/2015/13796

Our paper aims at assessing the relationship between sustainable growth rate and growth indices  in manufacturing companies in sub-saharan Africa with special reference to Dangote group of companies in Nigeria between 2008-2012.  The general objective of the study is to investigate the determinants/components of sustainable growth rate. R2   measured as the proportion of the variation in the dependent variable (GRO) that was explained by variations in the independent variables (ROA, CST, TAT, DPR and CFR). We carried out correlation analysis to show the relationship among the variables as well as regression analysis to show the impact and effect of independent variables; ROA, CST,TAT, DPR and CFR on  dependent variable; GRO. The result showed that 1% increase in ROA and CFR is expected to lead to 67.1 % and 18.5% in GRO respectively. In addition, 1% increase in CST, TAT and DPR led to 1%, 2.3% and 58.1% in GRO respectively.  The result of the correlation showed that null hypotheses 1, 4 and 5 were rejected while hypotheses 2 and 3 were accepted. ANOVA method was used to assess the overall significance of the model. The outcome revealed that the model is significant with F- value of 30.684 and P- value of .000. The result indicated that the model is significant as shown in the value of F-value of 30.684 and a P-value of .000 which is less than 0.05. The effect of the growth components on growth was assessed through regression analysis. The result showed that there was positive relationship between GRO and ROA and CFR. Similarly, there were inverse relationship between GRO and CST, TAT and DPR. It was concluded that the overall sustainable growth rate is enhanced if ‘target variables’ are well managed.

 

Open Access Policy Article

Foreign Direct Inflows and Economic Growth Nexus in Kenya: Co-integration and Causality Analysis

Mutuku Cyrus, Koech Elias

Journal of Economics, Management and Trade, Page 161-171
DOI: 10.9734/BJEMT/2015/8612

The study focused on the co-integration and causality analysis between FDI and GDP for Kenya using annual data spanning 1970 t0 2013. It was established that though the two variables are I(1), they are co-integrated. The VECM framework revealed that FDI has a significant influences GDP both in the long run and short run. A unidirectional causality was established from FDI to GDP, while impulse response functions revealed that a shock in any of the two variables significantly affects each other for a period of one year. The study concludes that FDI enhancing policies would be necessary for economic growth in Kenya.