Journal of Business & Financial Affairs

The purpose behind leading this review is to highlight the behavioral issues with respect to organization directors as a noteworthy contributory variable to the failures subsequent to examining some current and significant failures. The occasions which prompted the corporate failures in organizations, for example, Lehman Brothers, BCCI, Enron, WorldCom, RBS and Maxwell Group represent the improper moves and choices made by the directors and how these decisions added to their failures. The review looks at behavioral risks in corporate governance, and tries to discover behavior constitution. This study suggests that “personality” and “situations” are components which add to behavior. In corporate governance, thought of risk management components shows that the behavioral risks have persisted unidentified to a great extent. Considering the antagonistic financial and social effect of corporate failures in connection to public organizations, which incorporates capital and occupation misfortunes, loss of trust in private enterprise, lessened markets for products and ventures; and the support for the state to intercede keeping in mind the end goal to protect society from the event and results of these failures, this review proposes a hybrid regulatory model to determine impact of personality risks as a major aspect of the corporate governance process. The basic necessities of a viable risk management process are examined and connected with during the time spent building up a reasonable structure for personality risk management from which the approach and arrangements in the proposed model are drawn. The hybrid model comprises of hard law provisions in the areas where they are deemed most essential in order to create effectiveness and soft law provisions in the areas in which it is thought that flexibility is necessary and would not negate the overall aims of the model.

In this paper we study how does bank–borrower relationships benefits differ depending on three factors identified in the theoretical literature: verifiability of information, bank’s organizational structure and interbank competition. We employ an empirical model that simultaneously accounts for all three of these factors to analyse how relationship lending affects credit cost. Our key result is that that borrowers with long relationship length are likely to be captured and deprived of larger rents and that the diversification of banking products moderate the hold-up problem. These latter findings suggest the possibility that relationship borrowers may suffer from capture effects. Moreover, we find evidence that close relationships benefit on credit cost is larger in a more competitive loan market. So, banks consider relationships as a device for product differentiation.

Aim: The purpose of this study is to investigate the impact of managers’ information behaviour on the decisionmaking process. Method: Simon’s four decision-making stages (intelligence, design, choice and review) and three information behaviour dimensions (information sources, information types, and information characteristics) were included in this analysis. Results: The initial findings of the data analysis indicated that there was a significant statistical evidence for the relationship between information behaviour and decision-making without looking at the inside dimensions of each variable. However, after extra three steps of data analysis, the final findings indicated that all information types dimension were found significant as a source of variation in decision-making four stages. Conclusion: The general finding is that information behaviour does have an impact on decision-making stages; thus it plays a vital role in decision-making effectiveness and efficiency.

Research by cognitive psychologists is challenging the rationality paradigm. It has started to penetrate economic modeling with a vast experimental documentation of cognitive limitations that has been accumulated so far raising the questions: Does behavioral decision models, which capture hope or expectation to risk in experimental settings, can help us comprehend investor behavior in financial markets. We try to portrait a whole picture on the attention hypothesis we have developed around pricing patterns within the innovative pharmaceuticals sector firms. We try to encompass it from several aspects: first, we lay a general psychological framework for Attention theory describing cognitive mechanisms such as the rule of selective attention in processing information in short-term. Second we explore financial aspects of selective attention, and last we explore real life investors` behavior around a major milestone within the drug development process – advisory committee milestone. Our findings based on 78 events dating for 2002-2014, a puzzling investors` behavior. We observe that higher trading is held around regulatory event in what seems like a speculative “micro bubbles”. In this paper, we try to portrait a whole picture on the attention hypothesis and merge it with these “micro bubbles” we assume to be in the drug development industry.

Top management plays a pivotal role in adding value to the company by using smartly designed strategies, which can help strengthening the company’s position. In this report main emphasis is placed on leadership, innovation and change practices in Shiraz Industries private limited. This report identifies the problematic areas and suggests workable and doable solutions to solve the problems. To analyze and understand the company’s current position SWOT analysis is undertaken to identify the strengths and weaknesses internally of the company, and opportunities and threats externally of the company. Two models of innovation and change are used to propose and implement organizational change through adoption of the innovation and change management practices and lead a new initiative. The company top management has a bureaucratic style of doing the things in the company. The company has not proper structure and hierarchy especially no formal marketing department. By using the innovation Genome Framework, which gives the top management the clear understanding that they should give employees more freedom and the team, act should be more autonomous. And within the organization they should create sense of cohesion amongst the employees. Top management should look for measures of improvement not just the task accomplishment and goals. The Pentathlon Framework model of innovation is used to see the company innovation strategy and give the idea, prioritization and the implementation of complete process. The role of innovation, services and business process must be communicated to the workforce by the top management. Managers need to look at the things with and operate from a broader perspective especially when generating ideas, improving processes, products and services. Customers demand and need should be focused on and given priority. Goals can be achieved faster by effective cross-functional development testing and prototyping. Kotter’s change model and its implication can cater for the company’s sense of urgency, and, top management should take the pulse of their company employees. True leaders and key stakeholders in the company are to be identified for change. Create a powerful vision and to communicate amongst the masses, and people anxieties and concerns to be properly addressed. Top management should plan and create the short-term wins. McKinsey 7s models of change for what should be the company strategy and how the structure and system should be for the proper check and balance and exact job description for the work place. The shared values, style, staff and skilled and focused to achieve the desired goals. If the company applies all the above models strategy and implement, it is hopes that the company will definitely improve its performance.

For ages, there has not been a mathematical model that measures agency conflict. While all and sundry agree that there may not exist business activities without the concept of agency, little on development of a standard measure of the same has been achieved. This study attempts to develop a quantitative model for agency conflict measurement by utilizing entropy-q rationality model using data from select credit unions in Kenya. Analysis of 47 members and 14 management staff of Stima credit union, 133 members and 16 management staff of Unitas credit union, and 91 members and 16 management staff of Mwalimu National credit union showed overall existence of agency conflict as indicated by the negative value of the rationality difference. The conflict was more severe in Mwalimu National credit union. However, Stima credit union posted a positive agency conflict of 20.64%; on which basis, the regulator may set an appropriate index for the sector financial performance monitoring.

Today’s Business area has no boundary. It conducts its activity all over the world with its own trends but the marketers must consider the external business factors to run the business successfully all over the world. Cross-Cultural Etiquette is one of the most important factors that must be considered to grow the business globally. The aim of this article review is to analyze the Cross-Cultural Etiquette in respect of strategic Business Manager. The author of this article tries to give an overview about Cross-Cultural Etiquette and its necessity for fruitful business communication for the strategic business manager. In twenty first century this article is related to the current business Etiquette and communication and maintains the accuracy, currency and stability so it is highly credible and relevant to the current business environment.

The main purpose in attracting and using of investments is an achievement of leading positions in economic development and supply world’s market with local products of Uzbekistan. There is no doubt that to achieve such targets needs accordance plan and forecasting based on scientific researches. Hence, here in this article were given conclusions of effective using of investments on the basis forecast related to econometrics modeling of such indexes as, GNP, basic funds, conditions of industrial investments, also, inflation rates and employment in the country.

The purpose of this paper is to investigate how the Chinese SMEs in the Free State Province (FSP) perceive the external environment of doing business in South Africa and identifying the external environmental factors impacting foreign businesses investing in South Africa. A standard questionnaire was designed and self-administered to Chinese SMEs operating in different industries and towns in the Free State province. A total of 96 Chinese SMEs owners participated and the data obtained was analysed using descriptive statistics, frequency distribution tables and T-tests. Exploratory factor analysis identified four major external environmental factors (economic, political/institutional, sociocultural and legal systems factors) which included 36 sub-factors or items. The research findings showed that the Chinese SMEs have a negative perception about the external business environment of South Africa as they perceive the political/institutional factors (3.31), socio-cultural factors (3.05) and the legal system (3.20) as negative while the economic factors (4.01) are perceive as neutral. Crime, theft, security and xenophobia were being perceived the most negative sub-factors/items. Also external factors such as crime, corruption, labour regulations and xenophobia were being reckoned as the main external factors severely impacting the foreign businesses in SA.

Bancassurance is a new concept where bank and insurance company collaborate to sell insurance through bank’s distribution networks. After liberalization, the financial industry has used this growth strategy to best utilize their same channels to sell multiple financial products. In India, a number of banks have joined hands with insurance companies and vice versa to use this bancassurance model to sell selected products. It has become a win-win strategy for bank and insurance companies both. The purpose of the study is to understand and analyze the benefit of Bancassurance to Axis bank because of acquiring stack in the Max New York Life Insurance Co. Ltd. It is a case study method of research. It is found that after acquiring the stake in Max New York Life Insurance, the financial performance of Axis Bank has improved. However, in the short term there is no impact visible in the stock market due this acquisition.

The optimization of profits and profitability of a product or firm depends on the perfectness in arriving at the equilibrium among the costs, price and volume of product(s) of a business. As the volume and price of product are inter related and they are commonly decided in correlation. The profit and profitability depends on costs and cost implications apart from the price and the volume. The price and costs may not be perfect constant and subject to changes in accordance with changes in internal and external environments. The basic and most important decision of every organization is the planning for profits and profitability. The determinants of profits are the costs price and the volume. Hence the core factors in planning for profits are a decision on price and the volume inconsideration of costs and cost functions apart from economic environment implications. Therefore, perfection in planning for profits is subject to finding a perfect equilibrium among the three factors i.e., the price, costs and the volume in accordance with the economic environment implications. Theoretically the economic analysis explained the point of equilibrium as MR=MC i.e., the point or volume of output and the price at which the additional (marginal/variable cost) costs are exactly equal with the marginal revenues (marginal price) and the MC curve should intersect the MR curve from below subject to the condition that there is no change in fixed costs and the investment outlay. In practice, the BEA is serving the purpose. Due to the compulsion of assumptions, it is suffering from inflexibility and imperfection. Though the BEA featured of ensuring direct relation among the costs prices and volume, it is not in a position to give perfect answers for economic environmental implications of “what if”. In the light of this it is felt that addition of the feature of flexibility enable to answer the queries of ‘what if’ and it became the most reliable and simple analysis and a perfect profit planning technique. This research is projected in this direction.

Intellectual capital (IC) is the main part of intangible assets and provides competitive advantages for organizations. Therefore, evaluating these assets has a significant value for companies. The aim of this study is to determine the relative importance of IC determinants. Two kinds of questionnaires related to IC were used to collect data for Artificial Neural Network (ANN) and Analytic Hierarchy Process (AHP) methods. In the next step the accuracy of ANN is compared with Multiple Linear Regression and Nonlinear Least Square Fitting methods. Factor analysis is also applied to validate the model and reduction of indicators. Finally, to gain assurance about the ANN results, the results are compared with the AHP’s outcome. The obtained importance order of three IC determinants in the studied banking system is relational capital, human capital and structural capital respectively.

The purpose of this paper is to investigate the validity of the free cash to risk assets ratio (FCRAR) to predict some bank performance indicators, including, but not limited to, risk and return. This is a proposed alternative to the Basel accords’ capital adequacy measure which failed to predict bank insolvency, especially at times of economic downturn. Data were collected for the banking industry in the Gulf Cooperation Council of Arab Countries (GCC) region for the period from 2004-2013 to study the effect before and after the 2008 global financial crisis. Nonparametric mean rank tests and general linear model (GLM) with panel regression were used to investigate the predictability power of the proposed capital adequacy ratio. Our results provided evidence of FCRAR ability to predict changes, with the expected signs, for all bank performance indicators, before and after the crisis, except for the overall bank risk. As a result, we call upon scholars to keep the quest for a better capital adequacy measure that can monitor and predict bank insolvency. Bankers are advised to strive to strengthen their capital positions and not to depend totally on regulators-proposed measures to be able to prevent financial distress. The originality of this paper is drawn from the wider data covering a whole region of countries and the newly proposed alternative of capital adequacy measure.

Recent research on organizational justice around the world has established a number of empirical studies. The objective of the present study is to investigate the role of organizational justice perception in a social network within a game theory frame. The paper discusses distributive justice consideration in a team context and the way variations in talent and effort makes a difference to the perceived fairness in teams. The study also aims to contribute to scholarly efforts being undertaken to develop a strong theoretical foundation for understanding organizational justice perception in a social network, by using game theory modelling. The methodology used is an experimental study, which is a modified dictator game, with a production and distribution phase, played first individually then on a team basis.

‘Love is also an exchange’ has become a more and more common saying in these few years. Humans, both males and females, demand love from their ideal partners. Whenever demand and supply exist, a market exists. In this research, it is found that mating, to a certain extent, could be seen as an exchange. The fact is that human share a common pattern in their mating behavior, i.e., basing on the other party’s criteria.

Shenzhen is called a ‘migration city’ in the general public. This city is unique for its level of economic development and the huge percentage of immigrants. How young females’ mate selection behavior is shaped in this unique city is therefore an interesting topic to study.

This research project has investigated three main aspects by choosing Luohu District, Shenzhen as a target place. Firstly, it is found that some marketing concepts could be applied into Luohu females’ mating behavior to a certain extent. For example, results show that high quality men are more ‘demanded’ by Luohu females. Secondly, the degrees of importance of different mate selection criteria in affecting females’ mating intention are investigated. It is found that instead of monetary aspects, men’s health is the most important criterion affecting females’ mating intention. The least important criterion is appearance. Thirdly, Luohu females generally think women’s most important criteria are youthfulness and being kindhearted.

By studying the ‘love market’, it is hoped that the results could provide some directions or hints for men to enhance their competitiveness, i.e., their criteria, in finding a mate in the love market in Luohu District, Shenzhen.

The process of assessment is a continuous process which is periodically being analyzed and planned for the efficiency of labor wherewith it enables achievement of successful strategic goals of the enterprise. The basis goal of assessment is study from the past and improvement of the future. To assess means to collect information about the outcome of the labor, about the behavior at work, to analyze these information, to identify the criteria and the indicators for assessment in order to support the feedback loop with the employees. The essence of assessment comprises of measurement and assessment of the outcomes and the manner how people achieved that, in order to create conditions for development of rightful awarding. Today the process of implementation of assessment in many developed countries is treated as an integral part in the field of development of policy of human potential.