Volume 4, Issue 2, Published in December 2015
Hui Li* and Ye Zhang
School of Economics and Management, Zhejiang Normal University
PO Box 62, 688 YingBinDaDao Street, Jinhua, Zhejiang 321004, PR China
Abstract
Using data collected from a sample of 42 companies, 11 different financial indicators are tested from which 4 are identified as good predictors of the performances of specially treated (ST) companies after asset restructuring. Different possible combinations of the four indicators are developed from which an optimal set consisting of three indicators are identified using linear discriminant function. The three optimal set of variables are total asset growth, asset-liability ratio, and return on equity. A linear discriminant function is developed, using these three indicators as variables, for predicting company performance after asset restructuring. Using out-of-sample testing, the predictive accuracy of this model was tested to be 79.3%. This shows that the model is an effective and useful tool for predicting a company’s performance after assets restructuring. Further examples and illustrations with the data collected from the sampled companies also show that: (1) Companies which kick off the cap of ST successfully after asset restructuring will have a significant performance improvement in the year of asset restructuring and in the year after,
(2) Performances of the companies that kick of the cap of ST successfully may not improve in the second year after assets restructuring, and (3) Companies that are still labeled as ST after asset restructuring may not be able to improve their performances in the following years if no other actions are taken.
Keywords: capital market, cross-validation, financial ratios, kicking off the cap of special treatment, out-of-sample testing, performance improvement, prediction accuracy.
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O.F. Osemene*, A.S. Kasum, and K.A. Yahaya
Department of Accounting and Finance, University of Ilorin, PMB 1515, Kwara State, Ilorin, Nigeria
Abstract
The study assessed environmental audit practice as well as the effectiveness of environmental laws in small and medium scale enterprises (SMEs) in Nigeria. It also evaluated the impact of SMEs activities on the environment and on human health. This was with a view to determining the extent of compliance of audit practice with environmental laws. Relevant data were obtained from workers using judgmental sampling technique in ten different SME categories across the country with the aid of pre-tested questionnaire, interview schedule and Focus Group Discussion. The data was analyzed using descriptive statistics and analysis of variance. The results of the analyses revealed that: (1) some of the ten different SME categories in Nigeria are significantly influenced by existing environmental laws, (2) some of the activities of the SMEs have negative effects on human health and on the environment, (3) managements of SMEs are keen on implementing environmental audits that do not attract additional production cost and that facilitate quick access to funds from financial houses, and (4) generally, the extent of compliance of SMEs to the requirements of the existing environmental laws is poor. Among many others, the study also revealed that there are significant differences among: (1) different SME categories with respect to the extent of implementation of each type of environmental audit in Nigerian SMEs, (2) different SME categories with respect to the influence of environmental laws on their audit practices, (3) different SME categories from different zones with respect to the extent of implementation of each type of environmental audit types, and (4) among zones with respect to the degree of influence of environmental laws on SME audits practices.
Keywords: analysis of variance, compliance, hypothesis, international financial reporting standards, pollutions.
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Charles Andoha*, Ebenezer Agyakwa Millsb and Daniel Quayec
aDepartment of Finance and cDepartment of Marketing and Customer Management University of Ghana Business
School, Legon, Accra, Ghana bGhana Highway Authority, P.O. Box GC 1641, Kimbu Road, Accra, Ghana
Abstract
This paper assesses the profitability of a private entity going into partnership with the Ghanaian government for the construction and management of highways. The paper derives the conditions under which public private partnership highway financing can be viable in Ghana. A mathematical model that can be used by a businessman or an organization (or a concessionaire) to determine the optimal profit, the optimal number of different vehicle sizes, and the optimal toll rates for a given concessionary period are developed. The model is a very good and useful planning and decision-making tool for any business man or organization interested in venturing into partnership with any government with regard to highway construction and management. Using the model and data from the Ghana Highway Authority, we show that public private partnership financing is applicable on a number of roads through the right mix of two variables, the concession period and the road toll rate. Our findings can be useful to investors interested in partnering with government in highway financing on the type of highway to choose and its accompanying cost. Furthermore, this paper will provide the government with better insight when partnering with the private sector in highway financing.
Keywords: Concessionary period, mathematical model, optimization, reconstruction, rehabilitation, toll rate, upgrading.
Pumela Msweli*
aFaculty of Management and Law, University of Limpopo
Private Bag X1106, Sovenga 0727, South Africa
Abstract
There is a great need to attract and retain younger generations of faculty to ensure long-term sustainability of higher education institutions. The research reported here provides empirical evidence that Generation X academics in higher education institutions are likely to quit as a result of both lower job satisfaction and reduced organisational commitment. The data also showed that performance or research productivity is not a predictor of job satisfaction. Implications of these findings and avenues for further research are discussed.
Keywords: generation Xers, South African higher education system, quitting behaviour of academics, brain drain, employee turnover, organisational commitment.
Collette M. Arens Batesa* and Joe Dobsonb
aDepartment of Business, Mount Mercy University 1330 Elmhurst Drive NE, Cedar Rapids, IA 52402, USA
bDepartment of Management & Marketing, Western Illinois University 1 University Circle, Macomb, IL 61455, U.S.A.
Abstract
Our society continues to indicate real remnants of gender discrimination. One artifact of this discrimination is the gender gap in pay that remains after all other known factors are controlled for. While many explanations are offered for this, one is that women are willing to work for less money by accepting lower salaries. Research suggests there may be gender differences in negotiating styles, but there is a lack of understanding in the role gender plays in negotiating context and behaviors. Further, artifacts of the study design and implementation may play a role in our lack of understanding. The goal of this study is to understand gender differences in initial salary requests so that we, as teachers and mentors, can assist our students, particularly female students, in increasing their earning potential. Subjects were students at a regional midwestern university enrolled in the introductory management course. The results of the study indicate real differences between men and women in initial salary requests. Women asked for less wages than what the men asked for, regardless of their college major. One of the benefits of this study is that, with this result, a program aiming at improving the negotiating skills of our female students can be developed. This can help reduce the gender gap in pay.
Keywords: gender discrimination, pay equity, negotiation.
Abel Fumey*
Department of Economics, University of Ghana, Accra, Ghana
Abstract
The study examines the relationship between the real exchange rate and economic growth in Ghana with emphasis on the channel through which the impact is transmitted by using an annualized data from 1980 to 2010. The long run and short run dynamics of the variables of interest are captured by estimating an error correction model using Johansen cointegration approach. Empirical results obtained suggest that there is a significant long run relationship between real exchange rate and economic growth and that real exchange rate impacts positively on gross domestic product. This implies that an appreciation of real exchange rate improves economic growth. Therefore, adopting a suitable exchange rate policy may help improve output capacity and achieve a higher economic growth. Importantly, the study also reveals that real exchange rate in Ghana operates through aggregate supply channel to impact economic growth. Based on the results obtained from the study, we recommend against allowing real exchange rate appreciation to exceed the equilibrium rate. Our recommendation is aimed at protecting domestic industries from massive importation of goods. Additionally, we recommend that fiscal, monetary and exchange rate policies be designed to ensure sustainable and suitable macroeconomic stability which would stimulate real appreciation of the exchange rate in order to enhance economic growth.
Keywords: direction of influence, economic performance, aggregate supply, Ghana cedi, cointegration, error correction.