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Showing papers in "Oradea Journal of Business and Economics in 2019"


Journal ArticleDOI
TL;DR: In this article, a linear regression model was fitted and collinearity between predictors was detected using Variance Inflation Factor (VIF) using principal components as predictors.
Abstract: The impact of ignoring collinearity among predictors is well documented in a statistical literature. An attempt has been made in this study to document application of Principal components as remedial solution to this problem. Using a sample of six hundred participants, linear regression model was fitted and collinearity between predictors was detected using Variance Inflation Factor (VIF). After confirming the existence of high relationship between independent variables, the principal components was utilized to find the possible linear combination of variables that can produce large variance without much loss of information. Thus, the set of correlated variables were reduced into new minimum number of variables which are independent on each other but contained linear combination of the related variables. In order to check the presence of relationship between predictors, dependent variables were regressed on these five principal components. The results show that VIF values for each predictor ranged from 1 to 3 which indicates that multicollinearity problem was eliminated. Finally another linear regression model was fitted using Principal components as predictors. The assessment of relationship between predictors indicated that no any symptoms of multicollinearity were observed. The study revealed that principal component analysis is one of the appropriate methods of solving the collinearity among variables. Therefore this technique produces better estimation and prediction than ordinary least squares when predictors are related. The study concludes that principal component analysis is appropriate method of solving this matter.

13 citations


Journal ArticleDOI
TL;DR: In this paper, the authors identify and support mediating roles to improve product development with resource-based innovation that is based on the competitive advantage of local product SMEs with an initial market orientation and the role of mediating entrepreneurial skills and driving skills.
Abstract: This research is to improve product development with resource-based innovation that is based on the competitive advantage of local product SMEs with an initial market orientation and the role of mediating entrepreneurial skills and driving skills. This study is based on product cases in the domestic market and develops markets for local SME products with interviews and quantitative methods in 30 Small and Medium Enterprises in Central Kalimantan with PLS SEM analysis tools. The findings in this study included identifying and supporting mediating roles. Entrepreneurial orientation towards product innovation in increasing proactive knowledge and risk-taking, innovative market-oriented ideas in product innovation. This research only has results and research units from the scale of local SME products and then for research and theoretical research can be examined on a large scale with additional literature on market orientation. The research implications of research and analysis in product research in local products with market orientation and entrepreneurial orientation can increase revenue and sales, SMEs can implement EO as an important role after market control to improve innovation products and as a strategy in competition with cultural values. The novelty in research is the contextual business strategy and the theory of RBV in a significant positive competitive advantage from EO support in local SME product innovation.

7 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigated the effect of Leverage, Total deposit to total assets, Total loans to total asset, Retained earnings, and Tangible book value per share ratios on banks' financial performance for Return on Assets (ROA) as the dependent variable.
Abstract: This study investigates the effect of Leverage, Total deposit to total assets, Total loans to total assets, Retained earnings to total assets, and Tangible book value per share ratios on banks’ financial performance for Return on Assets (ROA) as the dependent variable. The data were obtained from the financial statement (Income statement and Balance sheet) of the selected banks. The results were found by analyzing the financial ratios of five commercial banks in Al-Kuwait throughout five years (2013–2017). We used analytical methods which led us to the presented results. MANOVA and ANOVA analysis were used to show the difference between banks in their financial situation and performance, and then the panel regression model used to study relationships among variables. The Hausman test was applied to compare fixed and random effect models which were shown that the random effect model gives the better result. Our findings show that the independent variables “Total deposit” to “total assets” and “Retained earnings” to “total assets” have a strong significant impact on our dependent variable ROA. “Leverage” and “Total loans” to “total assets” have a less significant effect on the banks’ financial performance (ROA) while Tangible book value per share does not affect the ROA.

7 citations


Journal ArticleDOI
TL;DR: This paper found that student moral reasoning does not improve by joining a business ethics course at university and used the paired T-test to test the score between pre-test and post-test.
Abstract: This research aims to identify and measure the effectiveness of business ethics courses on student Moral Reasoning. In-depth interview and a pilot test were conducted to examine the understandability of the experimental instrument. Quasi-experimental methods were conducted on students who join a business ethics course. One hundred twenty-two participants were valid from the manipulation check of pre-test and post-test. Paired T-Test was used to test the score between pre-test and post-test. Moral reasoning was measured using a defining issue test (DIT) to categorise High and Low Moral Reasoning on Participants. The result shows no difference in moral reasoning score between pre-test and post-test on a student who joins the business ethics course. This study finds that student moral reasoning does not improve by joining a business ethics course at university. These results imply that we should evaluate and re-examine the business ethics course syllabus for future research.

5 citations


Journal ArticleDOI
TL;DR: In this article, an analysis of products attributes, customer satisfaction and brand loyalty in the electronic appliances sector is presented, where the main goal is to determine the influence of a product's physical and service-related attributes on customer satisfaction, and eventually on brand loyalty.
Abstract: This paper shows an analysis of products attributes, customer satisfaction and brand loyalty in the electronic appliances sector. The main goal of the research is to determine the influence of a product’s physical and service-related attributes on customer satisfaction and eventually on brand loyalty. In particular, the objective of this paper is to answer the following question: if the attributes of a product influence in a customer satisfaction and in that way on a brand’s loyalty? We defined Customer satisfaction as the satisfaction of customers with any products. Therefore, the satisfaction was examined through a survey using questionnaires. The population included all customers of two of the branches from SmartBuy (one of the biggest companies in the IT sector in Jordan) in Amman. We designed the questionnaire and distributed it randomly to the respondents in two branches of the mentioned company. The questionnaire conducted was distributed to 150 respondents; we excluded 43 questionnaires from the analysis due to the incomplete data. So (107) questionnaires were valid for the study. The results show a correlation between the main factors, but more extensive researches in terms of the number of companies used in sampling must be conducted to verify this relation due to more factors mostly statistically insignificant.

5 citations


Journal ArticleDOI
TL;DR: In this paper, the authors point out two connections between financial indicators and strategic decision making, namely, financial indicators used in supported strategic decision-making, in strategic indicator systems, and cases in which financial indicators complement the methods of strategic management.
Abstract: Traditional financial indicators calculated from financial statements cannot provide adequate information for the management, do not support strategic decisions. The reason for this is the methodology used in producing financial statements and the operational logic of financial accounting. Financial accounting thinks in terms of business year that is 12 months. It deals with events of the past, more accurately, with so called economic activities. Financial accounting evaluates such economic activities in terms of monetary processes, which means that the traditional financial indicators have their limits in application. Could it mean that traditional financial indicators cannot be used in the long-term strategic decision making? In our study we point out two connections between financial indicators and strategic decision making. Firstly, we focus on financial indicators used in supported strategic decision making, in strategic indicator systems. Secondly, we focus on cases in which financial indicators complement the methods of strategic decision making, add something to the tools available in strategic management.

4 citations


Journal ArticleDOI
TL;DR: In this article, the effect of commercial bank sectorial credit to the manufacturing and agricultural sub-sectors on economic growth in Nigeria with time series data from 1981 to 2015, using co-integration and error correction mechanism for the empirical work.
Abstract: The study examined the effect of commercial bank sectorial credit to the manufacturing and agricultural sub-sectors on economic growth in Nigeria with time series data from 1981 to 2015, using co-integration and error correction mechanism for the empirical work. A three equation model was specified to analyze this study, and the variables include; real GDP, bank sectorial credit to manufacturing and agriculture subsectors, monetary policy rate, financial market development, sourced from CBN statistical bulletin and also the interaction variables,. The variables were tested for unit root using the Augmented Dickey Fuller approach and were found to be stationary. The empirical result revealed that commercial bank credit to the manufacturing and agricultural subsectors significantly affects economic growth in Nigeria both in the short run and in the long run. Furthermore, development of the financial sector enhances the growth effects of commercial banks credit to the manufacturing and agricultural subsectors of the economy. It was therefore recommended that the Nigerian apex financial authorities should encourage banks via deliberate policy to increase credits to these subsectors of the economy.

3 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigate the nexus between oil price volatility and infrastructural growth in Nigeria, utilizing cointegration and error correction modeling approach for the period 1981-2015.
Abstract: Since the discovery of crude oil in Nigeria in 1957, the Nigerian economy has remained a mono-product economy largely impacted by the effects of oil price volatility with its attendant adverse consequences on the nation’s revenue profile and infrastructural growth. Accordingly, this paper attempts to investigate the nexus between oil price volatility and infrastructural growth in Nigeria, utilizing cointegration and error correction modeling approach for the period 1981-2015. The data for this study were sourced from the Central Bank of Nigeria Statistical Bulletin, 2014 and 2016 editions. The results suggest that both oil price volatility and inflation rate tend to exert negative impact on infrastructural growth, while the appreciation of real exchange rate tend to trigger investment in infrastructure. Accordingly, we recommend, among others, the need to design and implement effective diversification policies with a view to raising the nation’s revenue trajectory, while strengthening local crude oil refining capacity so as to minimize the adverse consequences of such external shocks on the domestic economy.

3 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined the impact of mobile broadband on economic growth in Nigeria using the Endogenous Growth Model and employed ARDL Bounds testing approach and Toda Yamamoto Granger Causality test on quarterly data from 2001 to 2016, to estimate the growth effect of Mobile broadband.
Abstract: The scale of diffusion of mobile wireless broadband technology and its transformational effect across all sectors of the economy cannot be over emphasised. It enables the creation of new business processes/product innovation, thereby boosting job creation, as well as raising economic growth and productivity. This suggests that the mobile broadband is a general-purpose technology capable of producing a protracted critical mass effect at a certain threshold of penetration. It is against this backdrop that this paper examines the impact of mobile broadband on economic growth in Nigeria. Using the Endogenous Growth Model, we employ ARDL Bounds Testing Approach and Toda Yamamoto Granger Causality test on quarterly data from 2001 to 2016, to estimate the growth effect of mobile broadband. The findings show that mobile broadband is impacting economic growth positively in the Nigerian economy. It is therefore imperative for policymakers to design policies that will increase access to broadband infrastructure to both the unserved and underserved. It is also imperative to enact policies and regulations that can stimulate the economic impact of mobile broadband technology by strengthening the capacity of the economy to fully absorb the transformational benefits and make productive use of it as a General-Purpose Technology.

2 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examined migrants' remittances, public expenditure on education and their implications for educational development in Nigeria, using Secondary School enrolment rates (SSER) as a proxy for the latter for the period 1981 to 2017.
Abstract: This study examined migrants’ remittances, public expenditure on education and their implications for educational development in Nigeria, using Secondary School enrolment rates (SSER) as a proxy for the latter for the period 1981 to 2017. The study utilised Cointegration and error correction modelling approach in order to minimise the likelihood of producing explosive regression estimates. The empirical findings of the study indicate that Migrants’ remittances received, Public expenditures on Education and Per Capita Income growth rate exert statistically significant positive impacts on educational development in the country, while the association turned negative in the case of population growth rate. The fundamental role played by both migrant’s remittances received and Public expenditures on Education in stimulating educational development was evidently established in the study. The study therefore recommends, among others, the adoption of strategic measures that will help boost the rate of school enrolment in the country by encouraging migrants’ remittances through continuous engagement of Nigerians in the Diaspora in the country’s political and socio-economic affairs, progressive increment in budgetary allocations to the nation’s education sector, as well as enhancing the per capita income of the country through investments in key sectors of the nation’s economy.

2 citations


Journal ArticleDOI
TL;DR: In this paper, the importance of audit services both for investors and for professional accountants and auditors is discussed, and the correlation between the variables is tested on the basis of a sample of seven companies listed at Bucharest Stock Exchange in the energy field and utilities included in index BET, for period 2013 - 2018.
Abstract: Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the quality of audit services both for investors and for professional accountants and auditors. Audit quality factors can be structured according to several criteria and were represented by the size of the auditor, rotation, duration of the contract, types of services provided. In order to support this hypothesis, the correlation between the variables was tested on the basis of a sample of seven companies listed at Bucharest Stock Exchange in the energy field and utilities included in index BET, for period 2013 - 2018. The data was collected from the annual financial statements and reports issued by financial auditors. The results show that there is a correlation between variables, but of different intensities depending on the indicators chosen. Increasing the quality of financial reporting and the quality of audit leads to increased investor confidence in professional accountants.

Journal ArticleDOI
TL;DR: In this article, the authors focused on the construction industry as it is the base of the economy development and the accounting principles for this sector are very complex, and they used two different models of multiple linear regression analysis to estimate the level of discretionary accruals and tested the influence that entity size, indebtedness ratio, and financial difficulties exert on accounting creativity.
Abstract: Most research on accounting creativity in our country have approached the companies that had securities admitted on trading in the capital market. But the phenomenon may occur at the level of SME which are not listed on the stock exchange as well. This motivated us to consider this type of entities for our analysis. We focused on the construction industry as it is the base of the economy development and the accounting principles for this sector are very complex. The data was requested directly from entities and manually processed. Using two different models of multiple linear regression analysis, we have estimated the level of discretionary accruals. By comparing the results, we highlighted that for our sample the first model was more relevant. We then tested the influence that entity size, indebtedness ratio, and financial difficulties exert on accounting creativity. The results of our study did not determine a relevant impact of these determinants. We conclude that further research is needed to analyse in a qualitative approach the managers' motivations for creative accounting techniques.

Journal ArticleDOI
TL;DR: In this paper, the authors analyzed the distribution of the number of registered companies with foreign participation in the share capital between the counties of North-West region of Romania and also analyzed the evolution of the value of subscribed capital in companies with participation in share capital within this region.
Abstract: Foreign investments represent a well known topic in the literature which has resulted from their economic, financial, technological, managerial and social contribution at the national and regional level of the receptive country. North-West region is part of the richer and more developed regions of Romania. Based on the statistical data provided by NTRO (2018, p.24), North-West region of Romania is ranked on the third position by the number of companies with foreign participation in the share capital and on the fourth position in terms of the value of the total subscribed capital in companies with foreign participation. The main objective of our study is to analyze the distribution of the number of registered companies with foreign participation in the share capital between the counties of North-West region of Romania and also to analyze the evolution of the value of subscribed capital in companies with foreign participation in the share capital within the counties of this region. We also analyzed the evolution of some selected indicators that we consider relevant for assessing the level of economic development of the counties located in North-West region of Romania. After pointing out the existing disparities in the level of development of the region’s counties, an important finding of our study is that there are major intra-regional disparities regarding both the value of subscribed capital and the number of registered companies with foreign participation in the share capital. There is a clear separation between the counties Cluj, Bihor and the rest of the region’s counties. Between 1991 and 2017, Cluj and Bihor counties attracted the largest number of foreign investors and recorded the highest values of the total subscribed capital in companies with foreign participation. At the opposite pole there are Bistrita-Nasaud and Salaj counties. This paper also provides a ranking of North-West region’s counties according to the two aspects regarding foreign participation, subject to analysis, i.e. the number of registered companies with foreign participation in the share capital and the value of subscribed capital.


Journal ArticleDOI
TL;DR: This article presents in a comparative perspective the case of two health resorts, i.e. Baile Felix (Romania) and Baladuc-les-Bains (France), which benefit from rich natural resources, especially thermal waters, but also accommodation and treatment facilities enabling them to provide high quality medical and tourism services.
Abstract: Health tourism is becoming more important as people are more concerned about their health. Meanwhile, traveling for healthcare and consuming medical tourism packages has increased significantly in the last decades. Moreover, many tourists travel abroad, with the intention of benefiting from quality treatments at lower prices, and sometimes benefiting from medical procedures which are unavailable in their home countries. Consequently, health and medical resorts make constant preparations to provide services conforming to the customers’ standards. In this article we present in a comparative perspective the case of two health resorts, i.e. Baile Felix (Romania) and Baladuc-les-Bains (France). Both resorts benefit from rich natural resources, especially thermal waters, but also accommodation and treatment facilities enabling them to provide high quality medical and tourism services.

Journal ArticleDOI
TL;DR: In this article, the authors propose mAgriculture tools such as mobile phones and its applications from throughout the world as an instrument to draw attention of young people to agriculture, showing useful and best examples how farmers could increase their profit and yield through them.
Abstract: According to the UN forecasts, by 2020 the world population will be over 9 billion people, to feed this huge amount of people the food production should grow by 70%. It means that the number of farmers, who are the main suppliers in food production, should be increased. How to enlarge the number of rural farmers? By getting young people interested in farming and agriculture. But nowadays young people are prone to move to big cities. Why young people are not involved in agriculture, what initiatives are being taken to support youth in agriculture and what recommendations can be given, so that young people stay in it? Using the potential and energy of youth in agriculture, comprehensive and integrated policies, programs for markets and trade should be available with special attention to promotions and conditions for young people, who are going to be farmers. In this paper we propose mAgriculture tools such as mobile phones and its applications from throughout the world as an instrument to draw attention of young people to agriculture, showing useful and best examples how farmers could increase their profit and yield through them. These applications help to display information about current prices of agricultural products, historical charts and future prices, comparing the prices of products at different intervals, helps to find significant trends and correlations, also farmers receive information on contracts and the latest news from the agricultural area etc.

Journal ArticleDOI
TL;DR: In this article, a porcelain factory, named S. Apulum S.C.A. has been investigated in order to identify the changes due to the implementation of a quality management system based on ISO 9001 standard in the company.
Abstract: The issues approach in this research show the benefits of the implementation of ISO 9001 standard in different companies as well as the importance of certain criteria with respect to customer satisfaction and confidence. This standard specifies requirements for a quality management system and it is based on a number of quality management principles including a strong customer focus, the motivation and implication of top management, the process approach and continual improvement. The criteria taken into account help to improve the quality management system of the organization. The purpose of this paper is to identify the changes due to the implementation of a quality management system based on ISO 9001 standard in a porcelain factory, named S.C. Apulum S.A. and to analyse the customer satisfaction and confidence within the company considered through the implementation of the standard mentioned above. The analysis of customer satisfaction and confidence was achieved by taking into account certain measurable criteria established in the company considered, criteria that have been introduced into a formula. In conclusion, it is obvious that after the implementation of the requirements of ISO 9001 standard the situation regarding the quality process and product has been improved considerably. Also, the results show that there were several variations in the period considered (2010-2017).

Journal ArticleDOI
TL;DR: In this paper, the authors try to find the answer to the following questions: Is the accounting information relevant to the social responsibility assessment of the organization? What are the tools for measuring the degree of social responsibility achievement and what are the sources of information on which they are based?
Abstract: At present, accounting efforts have been extended to assessing the state of society and social programs, not for the satisfaction of any individual or group, but for the application of evaluation procedures in the allocation of resources to a better social welfare. In this paper we try to find the answer to the following questions: Is the accounting information relevant to the social responsibility assessment of the organization? What are the tools for measuring the degree of social responsibility achievement and what are the sources of information on which they are based? What are the characteristics and benefits of knowing and applying social accounting? The product provided by accounting is the information and, like any other product, in order to be accepted by customers, it must meet certain qualitative criteria, certain standards to satisfy the needs of the beneficiaries. Social objectives are less common in organizations' strategies, but with a rapid growth trend over the last decade, especially for large and medium-sized organizations, with these objectives referring to: pollution control, cooperation with authorities, waging and working conditions of employees, customer satisfaction through the quality, durability, flexibility and price of the products and services offered, making suppliers permanent in return for offering quality products at affordable prices and upon the agreed deadlines.

Journal ArticleDOI
TL;DR: In this paper, the authors present the relevant aspects of the evolution of audit reporting, especially on the underlying issues that expressing qualified opinions or disclaimer of opinion can lead to a distortion of the primary purpose of the financial audit.
Abstract: In a market economy with frequent changes, audit is an area that can provide some stability at the economic and social lever, even if the economic and financial crises have questioned the audit work and led to a decrease in the trust of the intended users in the auditors work, leading to a distortion of the primary purpose of the financial audit. The article presents the relevant aspects of the evolution of audit reporting, especially on the underlying issues that expressing qualified opinions or disclaimer of opinion. The content of paper includes a review literature, national and international, and a case study that identified and analyzed the qualified opinions expressed in the auditor’s independent reports, after analysis the financial statements of companies listed on the Bucharest Stock Exchange for the period 2015, 2016 and 2017. The entities were grouped on 9 sectors of activity and researched for each industry if the auditors expressed an unqualified opinion or a modified opinion and if the auditor is part of a Big4 company or belongs to another auditor category. The reasons behind the modified opinions were analyzed and grouped according to the frequency of their appearance in the audit reports. The most important conclusion of the case study was that in all cases, the reasons that led to express modified opinions, was detailed in the auditor’s report, this being considered as a reference guide for the future auditor’s missions, as well as, a recommendation for improving the highlighted aspects.

Journal ArticleDOI
TL;DR: In this article, the authors present the influence that the sustainable development strategy has over the economic environment and especially over the national accounting model, where the function of foresight from within the accounting model is used to showcase the strategy and to establish the mission that the economic entity has.
Abstract: This paper presents the influence that the sustainable development strategy has over the economic environment and especially over the national accounting model. Generally, the strategies of the sustainable development are carefully monitored and the periodic evaluation of them is a defining element. The processes involved in the evolution of the economic activities support the pylons of sustainable development and it integrates in this process the future request and offer. The elaboration of these strategies in the long run represents a primordial objective of the economic entities. The function of foresight from within the accounting model is used to showcase the strategy and to establish the mission that the economic entity has. By actively involving the accounting model, the internal and external information is contained into one single process. A different reason for which the accounting model is headed towards this direction is the fact that the objectives established in the long run contain at least one of the different environmental, social and economic factors, achieving at least one specific pylon of the sustainable development. Discussing assumed objectives, organizing programs and strategies of education and improvement in the field of sustainable development are key elements. These can be analyzed carefully within the entity and can guide the economic activity towards planning the strategy starting from its own accounting model. Respecting everything that has been mentioned, the integration of the sustainable development’s aspects needs to complete the process of sustainable development specific to the economic entity’s objectives and the accounting model.