Journal of Applied Business Research最新文献

{"title":"Style Influences And JSE Sector Returns: Evidence From The South African Stock Market","authors":"W. Small, H. Hsieh","doi":"10.19030/jabr.v33i5.10011","DOIUrl":"https://doi.org/10.19030/jabr.v33i5.10011","url":null,"abstract":"A distinctive phenomenon on the Johannesburg Stock Exchange (JSE) is the market segmentation between the resource sector and the financial and industrial sectors documented in empirical literature. The dominance of the resource sector in the cap-weighted FTSE/JSE All-Share index (ALSI) implies that the ALSI index might not be mean-variance efficient due to the potential lack of diversification. We estimate and compare the historical sector exposures of the ALSI index to its hypothetically optimal sector exposures over the examination period from 2003 through 2013. It is found that to achieve mean-variance efficiency on the JSE over the examination period, one should maintain substantial investments in the industrial sector and tactically allocate the remainder of the investments to the financial sector and/or the resource sector. It is also observed that the sector exposures of the ALSI index have shifted significantly from the resource sector to the industrial sector. To gain a better understanding of the investment style influences on the JSE sector returns, we further investigate the exposures of the prominent JSE sector returns to the style risks using the Carhart (1997) four-factor model. It is found that investments in financial stocks are exposed to significant value risk and, to some degree, influenced by the performance of large caps on the JSE. In addition, excess returns on the industrial sector are attributed to value, small cap and momentum risk premiums to some degree. The performance of the resource sector, on the other hand, is mildly biased towards the growth, large cap and contrarian investment styles on the JSE.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"863"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49336778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Effect Of Internal Capital Market Of Korean Large Business Groups On Investment Efficiency","authors":"Minwoo Lee, Yuwon Choi, Sang-Il Moon","doi":"10.19030/JABR.V33I5.10014","DOIUrl":"https://doi.org/10.19030/JABR.V33I5.10014","url":null,"abstract":"This study examines whether the effect of funding through internal capital markets on investment efficiency is differentiated by the incentives of controlling shareholders as measured by the divergence between cash flow rights and voting rights of controlling shareholders (hereafter, wedge). \u0000To empirically analyze hypotheses of this study, 1,189 firm-year observations were collected from Korean firms listed on the Korea Composite Stock Price Index (KOSPI) belonging to a large business group designated by the Korea Fair Trade Commission over the period from 2005 to 2012. The results of the analysis are as follows. \u0000First, we find that the magnitude of internal funding, as measured by total payables to the related parties, is positively (+) associated with investment inefficiency. Second, the interaction variables of total payables to the related parties and the wedge have a significant positive (+) effect on investment inefficiency. In other words, the deterioration of investment efficiency due to the increase in total payables to the related parties was mainly caused by firms with a big wedge. This result suggests that the effect of internal capital markets on investment efficiency of large business groups may be differentiated by the wedge that is proxy of the controlling shareholder’s incentive. \u0000This study provides additional evidence on previous studies on the investment efficiency of large business groups by considering both the internal capital market and incentives for funding using the internal capital market, which are important factors affecting the investment of large corporate groups. Also, the results of this study are expected to provide implications for the regulatory policy of large business groups which have recently become an issue in Korea.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"903-918"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46818241","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Determinants Of The Use Of Special Purpose Companies (SPCs) On Pre- And Post-IFRS: Empirical Evidence From Korea","authors":"Su-in Kim, Heejeong Shin, Hyejeong Shin","doi":"10.19030/jabr.v33i5.10020","DOIUrl":"https://doi.org/10.19030/jabr.v33i5.10020","url":null,"abstract":"We investigate which factors determine the use of a special purpose company (SPC) by a sponsoring company and whether those determinants differ before and after IFRS (International Financial Reporting Standards) adoption. Using financial data from Korean listed companies, our results indicate that use of an SPC is associated with financial reporting incentives (e.g., lowering leverage) and economic benefits (e.g., fundraising). However, the effect of leverage on the use of SPCs is not significant after the adoption of the IFRS. These results suggest that, although companies are generally motivated to use SPCs for both financial reporting and economic purposes, only economic motivation influences the use of SPCs after IFRS adoption. This implies that the regulation for reporting an SPC’s consolidated financial statement under IFRS plays a role in decreasing the use of SPCs for financial reporting discretion. We extend the prior literature on SPCs by documenting the effects of IFRS adoption on the determinants of the use of SPCs.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"979"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43180531","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Stress Tests By The European Banking Authority: The Immunity Of Italian Cooperative Banks","authors":"A. Quintiliani","doi":"10.19030/jabr.v33i5.10012","DOIUrl":"https://doi.org/10.19030/jabr.v33i5.10012","url":null,"abstract":"Purpose. The objectives of the paper are two-fold. The first objective of the research is formulated with the intent to analyze the existence or not of a possible “European Banking Authority (EBA) effect” on the credit offer of local banks compared with national banks subject to the requests of capital from European Authority. The second research objective aims to understand what are the conditions that allow to develop a model of a local bank capable of supporting SMEs, with a suitable risk-return profile. Methodology. This paper presents an empirical comparative analysis between Cooperative Credit Banks (BCCs) and Italian banking groups. Findings. The empirical analysis shows how the financial then real crisis has not induced BCCs to restrict credit to firms. In particular, the BCCs not included in stress exercises, show, unlike national banks, a substantial “independence” of credit trend from the advices of the Authority. The survey evidences have however highlighted some critical elements that are reflected inevitably on the local bank’s risk-return profile. Research Limitations. The quantitative nature of the empirical analysis must be followed by a qualitative analysis in order to strengthen the validity of the results. Implications. This work will be useful to stimulate the debate on the studies of local banks and their anti-cyclic role in favor of the SMEs. Originality. The work affects an aspect which has hitherto been little studied.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"873"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43492106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Changes In Special Items And Future Firm Growth","authors":"Young-Zik Shin, Yong Gyu Lee","doi":"10.19030/JABR.V33I5.10010","DOIUrl":"https://doi.org/10.19030/JABR.V33I5.10010","url":null,"abstract":"This study examines the effect of changes in special items on future firm growth. We find that a decrease in special items reverses almost completely through one-year-ahead earnings, whereas an increase in special items is positively associated with the next year’s earnings growth. We also find that the information embedded in changes in special items is incremental to that of fundamental signals documented in the literature, thereby identifying changes in special items as an additional fundamental signal. Furthermore, we find that both an increase and a decrease in special items lead to decreases in future sales and net operating assets, suggesting an inverse U-shaped relation between changes in special items and growth in these measures. Overall, our findings underscore the importance of considering various growth measures in understanding the implication of changes in special items for future firm growth.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"853-862"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46813647","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Effect Of Corporate Governance On Unfaithful Disclosure Designation And Unfaithful Disclosure Penalty Points","authors":"Young-man Moon, Soo-yeon Park","doi":"10.19030/JABR.V33I5.10013","DOIUrl":"https://doi.org/10.19030/JABR.V33I5.10013","url":null,"abstract":"This paper investigates the relation between Unfaithful Disclosure Corporations (“UDC”) and corporate governance using listed firm (KOSPI and KOSDAQ) data in Korea. Prior literature reports that corporate governance has an impact on the level of disclosure and the quality of disclosure provided by companies. However, it is hard to find the studies about corporate governance and UDC at the term of disclosure quality. Compare to some financially advanced countries, Korea established corporate governance in a relatively short period of time; hence concerns have been raised the corporate governance have not played effective role to monitor management. We question how corporate governance affects companies’ unfaithful disclosure by using several corporate governance proxy variables and UDC data which is unique system in Korea. From the empirical tests, we find a negative association between the proportion of outside directors, an indicator of the board’s independence, and UDC designation, among companies listed on both KOSPI and KOSDAQ. On the other hand, there is a significant positive association between the proportion of outside directors and UDCs’ imposed and accumulated penalty points among KOSDAQ-listed companies. This implies that outside director system effectively play a monitoring role however due to different natures of members included in outside directors, the system often fails to control regarding based reasons for penalty points imposition. In addition, we find the percentage of foreign equity ownership showed statistically significant positive association with UDC designation and a significant positive association with the imposed and accumulated penalty points among KOSPI-listed companies. We interpret this results that foreign investors with a short-term investment propensity may not enough to play a proper monitoring role in Korea and thereby they cannot effectively control the disclosure quality provided by the management. We also find that there is a significant positive association between the percentage of managerial ownership and UDC designation in the KOSDAQ market. This study will contribute to academics and disclosure-related practitioners by documenting about corporate governance and its impact on unfaithful disclosure corporations. corporate governance influence companies’ unfaithful disclosure and UDC designation/imposition of penalty points. Using percentage of outside directors, the percentage of foreign ownership and that of managerial ownership as a proxy for corporate governance and more detailed data of UDC, we conducted an empirical analysis examining the link between corporate governance and UDC designation/imposition of penalty points.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"887"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43497712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Expatriates Cultural Adjustment: Empirical Analysis On Individual Cultural Orientation","authors":"W. Tsegaye, Q. Su","doi":"10.19030/jabr.v33i5.10019","DOIUrl":"https://doi.org/10.19030/jabr.v33i5.10019","url":null,"abstract":"Previous researches have shown that expatriates` failure rate has steadily increased in recent years. The failure of expatriates mainly related with the cross-cultural challenges. The purpose of this study was to identify factors which have a paramount implication on expatriates’ cultural adjustment. Hierarchical regression and MANCOVA were applied in data analysis. Hofstede’s (1980) cultural dimension scores were used to measure culture at national level. The individual cultural orientation was measured using a scale that used Hofstede (1980) dimensions as a framework. Moreover, a recently developed model was adopted to analyze the expatriate adjustment. Cultural adjustment found to be affected more by individual cultural orientation than national culture differences among expatriates` home and host countries. The alignment of the expatriate cultural orientation with the national culture found to be critical for effective expatriate cultural adjustment. The result indicated that gender difference does not have a significant role in expatriate cultural adjustment. This research would have a conceptual contribution in comprehensively assessing individual cultural orientation with cognitive expatriate adjustment. The study indicated factors that MNCs managers would use for effective selection and assignment of expatriates.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"963"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44005063","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Consuming For Recognition: South African Youth Consumption Of Status Clothing","authors":"H. B. Dondolo, N. Madinga","doi":"10.19030/jabr.v33i5.10015","DOIUrl":"https://doi.org/10.19030/jabr.v33i5.10015","url":null,"abstract":"Buying expensive and fashionable brands to portray social status is increasing rapidly among South African township youth. The South African youth mainly spend their income on status-depicting clothing in order to conform to social settings and groups and to be noticed by their community. This study investigates the factors influencing the need to consume status-depicting clothing items among South African township youth. A self-completing survey questionnaire was administered to 400 youth consumers from three township malls in the Sedibeng district, Gauteng region of South Africa. Regression analysis was employed to analyse the data. The results suggest that materialism, fashion clothing involvement and group identity are key factors predicting status consumption among South African township youth consumers (aged 18-24 years). Marketers interested in targeting status conscious township youth consumers are advised to devise their advertisements in such a way that they emphasise the brand or product’s ability to indicate status.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"919"},"PeriodicalIF":0.0,"publicationDate":"2017-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45965278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic Freedom And Investment Efficiency In The MENA Region","authors":"A. Al-Amarneh","doi":"10.19030/JABR.V33I4.10005","DOIUrl":"https://doi.org/10.19030/JABR.V33I4.10005","url":null,"abstract":"The purpose of this study is to investigate the effect of economic freedom level on investment efficiency; predicted by market return and volatility; using data covering the period from 1996 tell 2015 for the MENA region countries. Simple regression models and multivariate regression models were applied to test our hypothesis. The results show that the economic freedom level has a little impact on market return, and the capital market performance get better as the government regulations get highly efficient and the financial system is accessible and effi­ciently functioning. In the same time, the evidence points out that economic freedom decrease market returns’ volatility (risk), indicating that; if government’s regulation in banking and financial systems doesn’t assure transparency and honesty, then financial markets efficiency will be hindered, the cost of financing will increase and the completion will be limited. Keeping in mind that the two fundamental aspects of investment are risk and return; it is obvious that economic freedom enhances the risk-return investment efficiency in the MENA region.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"843-852"},"PeriodicalIF":0.0,"publicationDate":"2017-07-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46033947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An Economic Multipoint Gravitational Model Expression Of A Transactional Analysis Game: An Application To Recreational Private Land Use Decisions","authors":"R. Johnson","doi":"10.19030/JABR.V33I4.10000","DOIUrl":"https://doi.org/10.19030/JABR.V33I4.10000","url":null,"abstract":"The outcome of interactions between various economic actors has a decided subconscious component. Transactional analysis (TA), which was developed in the late 1950s, provides a cognitive theory about the way that human beings interact with each other on a subconscious level that can be applied to investigation of economic decision making. TA, founded by physician Eric Berne, explains a number of potential human interactions, or social transactions, by framing them as subconscious games. Individual economic actors in markets interact with each other. Those interactions may be influenced at least somewhat by subconscious cognitive processes and TA games. Additionally, because individuals gain experience through each interaction, there may reasonably be expected to exist an historical component in which the subconscious response of economic actors to others in the market and to the subconscious games of others in the market may change over time based on their experiences in prior games. As an extension, an individual’s subconscious response to other economic actors may in part be based on the influence of information, either conveyed through games or via other sources. This study investigates decision strategy in the context of marketplace interaction in which outcomes are influenced by subconscious social transaction games played between individuals. The decision by land owners of whether or not to open private land to outside parties for recreational use is considered as an example. Because interaction necessarily involves some form of influence, the interaction and decision strategy are modeled mathematically by an economic multipoint gravitational model in which each actor both influences all other actors and is influenced by them.","PeriodicalId":40064,"journal":{"name":"Journal of Applied Business Research","volume":"33 1","pages":"791-800"},"PeriodicalIF":0.0,"publicationDate":"2017-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41512860","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}