Open Access Original Research Article

Study the Impact of Customers’ Loyalty and Satisfaction on Bank’s Financial Performance (A Case Study of Resalat Bank)

Sajad Shah Hosseini, Behrooz Shahmoradi

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/23925

Purpose: This study attempts to provide a holistic approach of the Iran's banking sector
and how it's financial operates by focusing on customer's loyalty and satisfaction.

Design/Methodology/Approach: Using standard questionnaires a survey was carried out in the banking sector of Iran in order to collect information regarding customer satisfaction and loyalty, and their impact on financial performance. To test the customer satisfaction and loyalty the questionnaires spread between the customers of Resalat Bank and to test the financial performance it has been spread between staffs, assistants, and managers of the bank. At the end structural equation modelling was used to test the related hypotheses.

Findings: The final findings of the research indicated the positive and significant impact of loyalty and satisfaction of the customer on the financial performance of Resalat Bank.

Originality/Value: There are some few studies that have incorporated customer satisfaction, loyalty and the financial performance of banks, therefore, in this study can contribute in this regard. To take it one step further, some more factors were included to present a more holistic approach of how customer satisfaction and loyalty are enhanced.

Open Access Original Research Article

Urban Tourism in Jordan: Challenges and Opportunities Case Study: Amman

Malek Bader, Ramzi Alrousan, Ismaeil Abuamoud, Hussein Abu Alasal

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/24589

This paper examines the challenges and opportunities of urban tourism in Jordan with a case study from Amman the capital city of Jordan. Jordan has tourism of sites not tourism of cities and towns, but lately Jordan paid a good attention on this subject and began to rehabilitate many cities especially in the Jordanian capital Amman.  

The definition of urban tourism has initially been discussed, particularly because the definitions of urban tourism range from the downright abstruse to the straightforward. From all the definitions it is concluded that urban areas are very important for this type of tourism because they are: Destinations in their own right, gateways for tourist entry, centres for accommodation, and ideal bases for excursions bringing the tourists along interesting cultural as well as natural itineraries. The discussion then evaluates the aspects of urban tourism through identifying trends, developments and challenges within the tourism sector in Jordan.

The paper discussed also the key elements that can enhance the visitor-friendliness in urban areas. It also considers new sector opportunities and acknowledges the difficulties and challenges associated with the development of the city of Amman as a centre for urban tourism. 

Bibliographic documentation and descriptive-analytic method were used as a methodology for this paper to improve and deepen the knowledge to understand thoroughly the concept of urban tourism. From the main results of this research is that the country has a number of attributes that will likely contribute to the continuing growth of its urban tourism sector, including an enormous array of cultural-heritage destinations, a well developed transportation infrastructure and a hospitality sector that can accommodate budget-minded tourists as well as the needs of the most discriminating affluent travelers.

Finally, the paper indicates the suggestions that Amman require to become a true destination city in the region.

 

Open Access Original Research Article

The Relationship between Corporate Performance and Financial Structure: An Empirical Study of Construction and Real Estate Firms in Nigeria

Echekoba Felix Nwaolisa, Ananwude Amalachukwu Chijindu

Journal of Economics, Management and Trade, Page 1-17
DOI: 10.9734/BJEMT/2016/24754

This paper evaluates the relationship between corporate performance and financial structure as well as the effect of financial structure on corporate performance of construction and real estate firms in Nigeria. The data were collected from Nigerian Stock Exchange factbook for the period of twenty one years from 1993 to 2013. The unit root test was conducted on the variables and was found to be stationary at the second difference. The Johansen Co-integration was applied to assess the relationship while the pooled OLS was used to determine the effect of financial structure on corporate performance. Two models were developed with two dependent variables: return on assets and return on equity representing firm corporate performance and five independent variables: total debt to equity ratio, total debt to total assets ratio and short term debt to total equity ratio reflecting financial structure; growth opportunity and taxation as control variables. The Johansen Co-integration analysis shows the presence of a long run relationship between corporate performance and financial structure. When return on assets was used as a measure of corporate performance of firms, only debt to equity ratio and growth opportunity exhibited a positive relationship while total debt to total assets ratio, short term debt to total equity ratio and taxation indicated a negative relationship. On the other hand, when return on equity was applied as corporate performance proxy, all the financial structure variables and taxation signalled a negative relationship while growth opportunity showed a positive relationship. Therefore, the findings disclosed that firm’s corporate performance and financial structure are correlated and financial structure negatively affect firm corporate performance. This supports the pecking order theory and consistent with previous studies that financial structure and corporate performance are negatively related. Based on the findings, we may conclude that the optimal financial structure does not play a significant role in the construction and real estate firms listed in Nigerian Stock Exchange. This paper will assist financial managers in making healthier decisions and scholars can develop new idea for further research on the nexus between financial structure and corporate performance of firms.

 

Open Access Original Research Article

Effect of Trade Receivables and Inventory Management on SMEs Performance

Abdullahi Hassan Gorondutse, Rahima Abass Ali, Abass Ali

Journal of Economics, Management and Trade, Page 1-8
DOI: 10.9734/BJEMT/2016/24507

This paper investigates the effect of trade receivables and inventory management on SMEs profitability in Malaysia. 66 sample of SMEs Manufacturing covering from 2006-2012 was used for the analysis. Ordinary least square (OLS) regression is used to estimate the relationship between independent and dependent variable. The result indicated that days account receivable and inventory turnover in days are negatively related to SME profitability proxies i.e. return on assets (ROA), return on equity (ROE) and net operating profit (NOP). The result implies that profitability of SME manufacturing depends upon effective of working capital components management. Therefore, the paper suggests that SME manufacturing can improve their Profitability upon managing working capital properly. Recommendations for future study were also discussed.

 

Open Access Original Research Article

Paradigm Evolution and Sustainability Thinking: Using a Sustainability Inversegram to State Paradigm Death and Shift Expectations under Win-Win and No Win-Win Situations

Lucio Muñoz

Journal of Economics, Management and Trade, Page 1-15
DOI: 10.9734/BJEMT/2016/24697

The history of science is one based on revolutions and discourse where a new paradigm arrives challenging the status quo with the promise of progress and if the evidence is there to justify paradigm shift on the basis of that promise the consensus will be to shift paradigms. Apparently the shift from Adam Smith’s traditional market paradigm to the eco-economic or green market paradigm formalized in 2012/RIO conference meets all the requirements for paradigm shift listed above, but it was based on the accumulated environmental evidence for change only (e.g. pollution and degradation) leaving out the accumulated social evidence for change (e.g. poverty and inequality), but a progress towards sustainability none the less. 

Not much seems to be written from the point of view of sustainability about paradigm changes such as paradigm death, paradigm shift and paradigm mergers. General goals of this paper are a) to introduce a sustainability inversegram that can be used to state paradigm death and shift expectations under win-win and under no win-win situations; and b) to use this expectation framework to show the structure before and after the paradigm shift from the traditional market to the green market under win-win eco-economic conditions.

 

Open Access Original Research Article

Analysis of Financial Efficiency and Constraints of Smallholder Cotton Farmers in the Northern Region of Ghana

Awal Abdul-Rahaman

Journal of Economics, Management and Trade, Page 1-11
DOI: 10.9734/BJEMT/2016/24728

This study examined the financial efficiency and constraints faced by smallholder cotton farmers in some selected districts in the Northern Region of Ghana. Multistage sampling approach was employed to solicit cross-sectional data from 150 smallholder cotton farmers in three selected districts and six communities spread across the region using a structured questionnaire. The data was collected during the 2009 cotton growing season. Financial efficiency measures were estimated to reveal the financial efficiency levels of cotton farmers. These measures include Asset Turnover Ratio, Operating Expense Ratio, Depreciation Expense Ratio, and Net Farm Income Ratio. These were estimated and compared with benchmarks and valid conclusions drawn. Constraints faced by smallholder cotton farmers were also identified and analyzed using Kendal’s Concordance analysis and agreement among the rankings of constraints by cotton farmers tested. The results show inconclusive financial efficiency levels of smallholder cotton farmers. Comparing financial efficiency ratios to the bench mark figures, Asset Turnover Ratio (20.28%), Operating Expense Ratio (74.1%) and Net Farm Income Ratio (19.14%) show that smallholder cotton farmers in the Northern Region are financially inefficient but efficient in terms of Depreciation Expense   Ratio (3.29%). Several constraints were also identified as hindering the successful cotton production in the Northern Region. Poor pricing of seed cotton appeared as the most limiting constraints followed by untimely supply of farm inputs whilst lack of access to land was ranked as the least constraint. Kendal’s Concordance analysis revealed that there was about 87.4% agreement among the rankings of the constraints. The government, NGOs in the cotton sector, private cotton companies and other cotton stakeholders should step up their efforts in building capacities of smallholder cotton farmers in both technical and financial management to enable them handle efficiently the cotton production business. Management of cotton companies as well as government should regularly meet with smallholder cotton farmer associations in the Northern Region to negotiate fair prices for seed cotton. This will inevitably entice the farmers to remain in the cotton production business for improved livelihoods. There is the need for the formation of cotton stakeholder committees with the mandate of carrying out monitoring on timeliness of input supply by cotton companies to cotton farmers.

 

Open Access Review Article

Applications of Corporate Social Responsibility- A Brief Review and Future Outline

Animesh Debnath, Jayanta Kumar Dey, Samarjit Kar

Journal of Economics, Management and Trade, Page 1-32
DOI: 10.9734/BJEMT/2016/24082

Many studies are available to explore the approach of Corporate Social Responsibility (CSR) development and implementations; there is no paper on CSR review evaluate the various methodologies under this elucidation. Although a few review papers have been published to discuss CSR application, these only covers a small portion of the applications for specific areas. In this study, an extensive review covering the literature from 2000-2014 and several analysis on CSR development are provided mainly to explore how various CSR methodologies have been developed during this period. However, this paper mainly highlights the methodologies, domains, and Major results/conclusion of the CSR articles. A summary table and some figures are also provided along with the discussions and limitations. Finally, conclusions and future research directions and presented.