Business and Economics Journal 

About: Business and Economics Journal is an academic journal. The journal publishes majorly in the area(s): Monetary policy & Human capital. It has an ISSN identifier of 2151-6219. It is also open access. Over the lifetime, 407 publications have been published receiving 3521 citations.

The Relationship Between Working Capital Management And Profitability: Evidence From The United States

Abstract: The paper seeks to extend Lazaridis and Tryfonidis’s findings regarding the relationship between working capital management and profitability. A sample of 88 American firms listed on New York Stock Exchange for a period of 3 years from 2005 to 2007 was selected. We found statistically significant relationship between the cash conversion cycle and profitability, measured through gross operating profit. It follows that managers can create profits for their companies by handling correctly the cash conversion cycle and by keeping accounts receivables at an optimal level. The study contributes to the literature on the relationship between the working capital management and the firm’s profitability.

Government Expenditure And Economic Growth In Nigeria, 1970-2008: A Disaggregated Analysis

Abstract: The paper observes that rising government expenditure has not translated to meaningful development as Nigeria still ranks among world’s poorest countries. In an attempt to investigate the effect of government expenditure on economic growth, we employed a disaggregated analysis. The results reveal that government total capital expenditure (TCAP), total recurrent expenditures (TREC), and government expenditure on education (EDU) have negative effect on economic growth. On the contrary, rising government expenditure on transport and communication (TRACO), and health (HEA) results to an increase in economic growth. The authors’ recommendations include among others the following. Government should increase both capital expenditure and recurrent expenditure, including expenditures on education, as well as ensuring that funds meant for the development of these sectors are properly managed. Secondly, government should increase its investment in the development of transport and communication, in order to create an enabling environment for business to strive. Thirdly, government should raise its expenditure in the development of the health sector since it would enhance labour productivity and economic growth. Lastly, government should encourage and increase the funding of anti-corruption agencies in order to tackle the high level of corruption found in public office.

Social Media and Its Role in Marketing

Abstract: Social media nowadays is among the ‘best possibilities available’ to an item to get in touch with potential customers. Community social networking websites are the method to interact socially. These new media win the believe in of customers by linking with them at a deeper level. Community online marketing is the new mantra for several manufacturers since early a season ago. Promoters are considering many different social media possibilities and beginning to apply new social projects at a higher rate than ever before. Community online marketing and the companies that utilize it have become more sophisticated. One cannot afford to have no existence on the social programs if the competitor is creating waves with its solutions and items. The blast of social media trend is as amazing as that and the speed at which it is improving is frustrating. International companies have identified social media promotion as a potential promotion system, used them with enhancements to power their marketing with social media promotion. This paper discusses about the ideas of social media and social media promotion and other aspects like the development and advantages, aspect and importance of social media in promotion, social media promotion methods. It also presents an outline on social media promotion in Bangladesh.

CEO Compensation and Company Performance

Abstract: This paper examines the relationship of CEO pay and company performance for 280 firms listed on the New York Stock Exchange for a period from 2006 through 2009. The time frame of the study is a period after the adoption of the Sarbanes Oxley Act and after the SEC approval of the corporate governance rules affecting executive pay for New York Stock Exchange companies. I find there to be a positive and significant relationship between total CEO compensation and company performance measured by return on equity. The size of the firm appears to be the most significant factor in determining the level of total CEO compensation, according to the results, and the tenure of the chief executive officer is another significant variable.

Tax Rates and Tax Evasion: Evidence from Missing Imports in Tanzania

Abstract: Tax evasion is the basic characteristic of many developing countries. De facto tax collections are consequently far below revenue implied by published or de jure tax rates. This paper empirically examines tax rates (tariff plus VAT rates) as the determinants of customs revenue evasion across products, based on a systematic analysis of discrepancies in trade declarations for trading partners, United Republic of Tanzania, Republic of South Africa and China. The results indicate that trade gap is highly correlated with tax rates, that is, much more value is lost for products with higher tax rates. The results also show that the trade gap is correlated with tax rates on closely rated products from Republic of South Africa, implying that evasion takes place through misclassification of imports from higher-taxed categories to lower-taxed ones. However, there is no evidence of misclassification of imports from China. The wide divergences between the effective and statutory tax rates in Tanzanian tax system indicate that there is a scope for raising tax revenue without increasing tax rates by reinforcing tax and customs administrations and reducing tax evasion.