Showing papers in "Procedia. Economics and finance in 2012"
TL;DR: In this article, the authors investigated the relationship between CO2 emission, economic growth, energy consumption, trade liberalization and population density in Pakistan with yearly data from 1971 to 2008.
Abstract: In this study, the Environmental Kuznets Curve (EKC) is hypothesized to investigate the relationship between CO2 emission, economic growth, energy consumption, trade liberalization and population density in Pakistan with yearly data from 1971 to 2008. The cointegration analysis using Auto Regressive Distributed Lag (ARDL) bounds testing approach is incorporated. The results support the hypothesis both in short-run and long-run and inverted U-shaped relationship is found between CO2 emission and growth. Interestingly we found trade support the environment positively and population contributes to environmental degradation in Pakistan. The energy consumption and growth are the major explanatory variables which contribute to environmental pollution in Pakistan. Moreover, the time series data analysis is used and the stability of variables in estimated model is also assessed.
154 citations
TL;DR: In this article, the empowerment of the local community has been made possible through tourism and some case studies have been given to show how local community empowerment has been achieved through tourism. But there are some issues arise as impact of tourism development.
Abstract: Tourism development in Indonesia aims to alleviate poverty, to conserve nature, environment and resources, to develop culture, to improve nation's image, and to strengthen relationship with other country. Bali as the leading tourism destination in Indonesia is able to increase welfare of its people from tourism sector, however in tourism development there are many things to be care of in order to achieve Bali tourism sustainable for the future. There are some issues arise as impact of tourism development. An issue on tourism development in Bali is it is blamed as a cause of damage in agriculture sector as the land use has significantly changes. Also, tourism also creates impacts to culture. Some efforts have been made to reduce the negative impacts of tourism, including the empowerment of local community on tourism development. This paper aims to show how local community empowerment has been made possible through tourism. The paper also gives some case studies. Empowerment of the community will become a main key for tourism development because with empowerment and involvement of the community in tourism development, the community where the tourism is developed will participate in keeping their culture and nature so that at the end the sustainable tourism development will be reached and maintain.
121 citations
TL;DR: In this paper, the authors proposed a conceptual framework explaining the relationship between entrepreneur traits and firm performance in the context of SMEs, and investigated the relationships among the seven constructs in a comprehensive framework as a basis for further studies.
Abstract: Only a small fraction of SMEs are successful in achieving exceptional performance and sustainable growth, The literature shows that there is still a gap for effective ways to increase the size of that fraction. This paper aims to contribute in filling the gap by identifying factors affecting SME performance and, hence, their development; and to develop a conceptual framework explaining their relationships. The literature reveals that although there is positive relationship between entrepreneur traits and firm performance in the context of SMEs, the relationship is still inconclusive; suggesting that there are intervening constructs between the two constructs. Field observations and literature reviews suggest five second- order constructs serving mediating roles between entrepreneur traits and firm performance that may clarify the relationship, i.e., (1) innovative performance, (2) innovative capacity, (3) organizational search, (4) market orientation, and (5) entrepreneurial orientation. Although the relationships among the seven constructs have been extensively studied in the extant literature, this paper is one of the few efforts, if any, in investigating the seven constructs in a comprehensive framework as a basis for further studies. If empirically supported, the proposed framework may provide an effective alternative in assisting entrepreneurs and SMEs’ owners to develop their firms more effectively.
107 citations
TL;DR: In this paper, the authors identify the potency of SMEs and reasons for their inability in competing in global market and the outcome will be obtained in measurement form consisting several barrier factors faced by SMEs.
Abstract: Facts that Indonesian SMEs have a great potency related with the ability to survive in crisis times do not lead to products capability Moreover, several factors became reasons why the image of Indonesian SMEs does not emerge significantly; even though the product could meet market's interests This study seeks to identify the potency of SMEs and reasons for inability in competing in global market and the outcome will be obtained in measurement form consisting several barrier factors faced by SMEs The methodology adopted in this research is critical literature reviews, quantitative and qualitative data collection through questionnaires to 200 respondents and in-depth interviews with each of them The research showed there are ten major barriers faced by SMEs: competition barriers; financial access; price of energy; technology; inefficient production cost; economic factors; management skill; process; limitation of sales; and raw material Most SMEs agreed that government should dedicate more efforts in certain actions to eliminate SMEs barriers, like security standards improvement, development programmes, good financing policy, rational energy policy, continuous performance evaluation, commitment of corruption termination, and many supporting program needed by SMEs Hereinafter, this research could contribute government programmes for empowering SMEs as the pillars of Indonesian economy
102 citations
TL;DR: In this article, the authors identify the factors that influence bank liquidity through a multiple regression model, over a panel of commercial banks in Romania, with the aim of identifying the factors with which bank liquidity can be improved.
Abstract: Recently, the global crisis has proven that the lack of bank liquidity was the main trigger of all the negative events. Many profitable banks faced difficulties in managing their own funds due to the misunderstanding of liquidity risk. I conducted this research paper with the aim of identifying the factors that influence bank liquidity through a multiple regression model, over a panel of commercial banks in Romania. The results reflect both common and different determinants for the two liquidity rates analyzed and are consistent with the previous literature on this topic. The pre-crisis years are observed separately from the crisis period (2008- 2010). An important indicator for bank stability, Z-score, has a significant influence over bank liquidity in the crisis years. In the pursuit of designing efficient liquidity management tools, I built the conceptual and empirical framework for enhancing bank liquidity, as a variable difficult to stress test.
93 citations
TL;DR: In this article, the determinants of net interest margin of commercial banks in Kenya using secondary data were investigated using pooled and fixed effects regression to a panel of 44 Kenyan banks that covers the period 2000-2009.
Abstract: This study investigates the determinants of net interest margin of commercial banks in Kenya using secondary data. We apply pooled and fixed effects regression to a panel of 44 Kenyan banks that covers the period 2000-2009. The estimation results show that operating expenses and credit risk has a positive and significant effect on net interest margin of the commercial banks in Kenya. The paper also finds that the higher the inflation, the wider the net interest margin, while growth and market concentration a have negative effect on net interest margin.
85 citations
TL;DR: In this article, the authors analyzed the stock market in Central and Eastern Europe under the impact of macroeconomic imbalances, emphasizing the volatility of the foreign capital inflows and showed that the current economic and financial crisis has had a strong influence on stock market performances.
Abstract: The current economic and financial crisis has had a strong influence on stock market performances in the process of financing the economic activities. This paper aims to analyze the dynamic of the stock market in Central and Eastern Europe under the impact of the macroeconomic imbalances, emphasizing the volatility of the foreign capital inflows. The data selected for the study will be used to test the impact of stock market development on the correlation between foreign capital inflows and economic growth. The result will allow comparisons between the macroeconomic performances and identifying the adequate measures through which national capital market can become more attractive for investors.
68 citations
TL;DR: In this article, the authors put in connection sustainable entrepreneurship and sustainable development from both the perspectives of conceptual reflection in literature and a research on the European Union countries, and pointed out that sustainable entrepreneurship, seen through the perspective of innovative SMEs, is part of the support system for sustainable development, as entrepreneurial enterprises are increasingly recognized as a driving force for innovation and competitiveness, as one of the keys to achieving sustainable development.
Abstract: The nexus of entrepreneurship, innovation and sustainable development is a subject of great interest nowadays, as society is looking for solutions leading to sustainable development. Given this context, the paper aims to put in connection sustainable entrepreneurship and sustainable development from both the perspectives of conceptual reflection in literature and a research on the European Union countries. The methodology is based on methods of analysis and synthesis, of interpretation and relevant comparisons. The research results point out that sustainable entrepreneurship, seen through the perspective of innovative SMEs, as considered in the research, is part of the support system for sustainable development, as entrepreneurial enterprises are increasingly recognized as a driving force for innovation and competitiveness, as one of the keys to achieving sustainable development. The research may be particularly important for both researchers and policy makers and offers opportunities for future studies on the subject.
68 citations
TL;DR: In this article, the authors present a short review of the literature on the relevance and role of innovation and entrepreneurship on economic growth and development, and analyze the relation between entrepreneurship, innovative entrepreneurship and economic development in EU.
Abstract: It is widely acknowledged that entrepreneurship contributes to the positive growth of different economical indicators. Adam Smith 1776 already observed different features of innovation in the 18th century and later generations of specialists have showed that innovation is a great force of economic activity. Nowadays, it is well known worldwide that innovation is the engine of growth being an important element of development achievements Fagerberg et al., 2011 . In Europe, after 1980, the first programs, which promoted innovation and SMEs, started EC, 2000 . The impact on the growth of the innovative SMEs is significant as official data show. Therefore, innovative entrepreneurship started to be considered a key factor of modern economic development UN, 2012 . This paper presents a short review of the literature on the relevance and role of innovation and entrepreneurship on economic growth and development. This study intends to analyze the relation between entrepreneurship, innovative entrepreneurship and economic development in EU. For the statistical data processing, we used the SPSS software package.
65 citations
TL;DR: In this paper, the authors proposed a methodology to overcome Indonesian SMEs' problem, because several Indonesian SME characteristics match with open innovation implementation, and the innovation value chain framework is used to explain how open innovation could help to succeed and sustain Indonesian small and medium enterprises.
Abstract: Small and Medium Enterprise (SME) in Indonesia plays an important role in social and economic growth, due to great number of industry, GDP contribution, and total employment. SMEs’ characteristic more agile and adaptable that capable to survive and raise their performance during economical crisis than larger firm. But the increasing of business competition, in particular against large and modern competitor, put SMEs in a vulnerable position. The development of sustainable SMEs becomes important step to strengthen and sustain Indonesian economy. According to previous studies, factors affecting success among Indonesian SMEs are marketing, technology, capital access and human resources quality. Unfortunately, all of these factors still becoming problem in Indonesian SMEs. Open innovation is a proposed methodology to overcome Indonesian SMEs’ problem, because several Indonesian SMEs’ characteristics match with open innovation implementation. The innovation value chain framework is used to explain how open innovation could help to succeed and sustain Indonesian SMEs.
62 citations
TL;DR: In this article, a microfinancing business model is proposed to fund micro-businesses involving donors/funders, volunteers, field partners, coaches and non-profit organizations that work together in the process of screening, supervising, and managing the use of funds.
Abstract: Economy crisis that hit Indonesia in the year 1997/1998 and 2008/2009 shows that small and medium-sized businesses have proven as a self-sufficient business group that has a strong resistance. Unfortunately, these independent business groups, especially small and micro businesses that have low income are not easy to get capital or financing from the banking institutions due to lack of financial history. One of the funding solutions to small and micro businesses is microfinancing. There are some institutions in Indonesia that have already engaged in microfinancing, but none of them have maximized the use of internet technology, particularly the use of interactive and social media sites that have the ability as a catalyst and mobilizer of the mass. In this study, we would like to propose a microfinancing business model to fund micro-businesses involving donors/funders, volunteers, field partners, coaches and non-profit organizations that work together in the process of screening, supervising, and managing the use of funds. This model is adapted to the behavior of Indonesian society, raising the confidence of lenders and the transparency of partners and organizations so that funds can be distributed to the right persons, be managed in an appropriate manner so as to improve the quality of life for borrowers and to achieve the highest possibility of refund rate. This business model will be implemented through a web-based system that enables all parties involved to communicate and support each other.
TL;DR: The authors investigates the trend away from current traditional technologies to the next generation of custom manufacturing, additive manufacturing, as a cure for "ills" like: intermediation, stocks flow, divergence of functions, workforce productivity and labor cost savings.
Abstract: The tremendous flux of innovations are likely to funnel and channel the most rapid change of overarching activities. The wider needs of the society are the impetus for the development of new technological substitution processes. Additive manufacturing using inkjet have broken new ground in rapid manufacturing and transform the way some products are made. The advent of this embryonic technology will born the aptness of applying judgement in assessing the implications and consequences on business, accounting and tax, rather than relying on the application of predefined rules. In this light, the article investigates the trend away from current traditional technologies to the next generation of custom manufacturing, additive manufacturing, as a cure for “ills” like: intermediation, stocks flow, divergence of functions, workforce productivity and labor cost savings. Connections to practice may become a double edged sword because these recent technological advances are the springboard for charging, billing, accounting and tax to evolve.
TL;DR: In this article, the authors apply the theory of reasoned action (TRA) and theory of planned behaviour (TPB) to explain individual investor behaviour, and make an attempt to study the influence of social factors such as social interactions, media and internet.
Abstract: Individual investors’ trading behaviour has drawn the attention of academicians and investment practitioners globally. The emergence of behavioural finance as a new domain in the capital market research is a case in point. Studies indicate that individual investors are characterized by excessive trading and often to their detriment (Barber and Odean, 2000).In this study, we apply the theory of reasoned action (TRA) and the theory of planned behaviour (TPB) to explain individual investor behaviour. Further, an attempt has also been made to study the influence of social factors such as social interactions, media and internet.
TL;DR: In this article, the authors evaluated the determinants of inward FDI particularly volatility of exchange rate in Iran by using the Johansen and Juselius's cointegration system approach model covering the period 1980Q2-2006Q3.
Abstract: The flows of foreign investment are the fundamental elements in the economical evolution of countries within the globalization process of economy. Previous research on exchange rate shows its significance as a key role in trades and flows of FDI. Although exchange rate and FDI are empirically investigated but the relationship between the volatility of exchange rate and flows of international investments is generally not identified. Therefore, considering the importance of the subject discussed, it is needed to consider the determinants of FDI specially the volatility of exchange rate and provide better situations for attracting FDI in Iran. The main goal of this study is evaluating the determinants of inward FDI particularly volatility of exchange rate in Iran by using the Johansen and Juselius's cointegration system approach model covering the period 1980Q2-2006Q3. The findings of this study reveal that gross domestic product, openness and exchange rate to have positive relationship with foreign direct investment but, world crude oil prices and volatility of exchange rate have negative relationship with foreign direct investment. The empirical results obtained in this paper recommend the economy Politicians in Iran to implement exchange rate policies that promote stability of exchange rate, which could help reduce exchange rate volatility in order to attract more FDI.
TL;DR: In this article, an exploratory study was conducted among 13 managers from different companies in Bucharest, with three hypotheses tested and confirmed, to underline those aspects that influence employees' performance, the strategies that are being used to stimulate their potential and to retain them, to show how their performance results contribute to company's growth and development, as well as management's implication in this process.
Abstract: It is well known that the companies which know how to use and invest in their resources can grow faster, making from this a business strategy on the emerging markets. This is mainly considered a managerial responsibility and the results depend not only on management's capabilities, but also on the hired employees. We can discuss here about the performance management concept, which is mandatory to be put into practice when referring to the company's most important resource – the employee. Thus, a high performing employee will be targeted to remain within the company as long as possible for the benefits he brings and for the positive image he creates. But together with high performance, also the expectations increase, for both the employee and employer. This paper aims to underline those aspects that influence employees’ performance, the strategies that are being used to stimulate their potential and to retain them, to show how their performance results contribute to company's growth and development, as well as management's implication in this process. This exploratory study was conducted among 13 managers from different companies in Bucharest, with three hypotheses tested and confirmed.
TL;DR: In this article, the authors developed and tested a customer loyalty scale based on cognitive, affective, conative and action, and used both exploratory and confirmatory factor analysis.
Abstract: The goal of this research is to develop and test a customer loyalty scale. The main tested hypothesis is that loyalty is a process with four distinct phases: cognitive, affective, conative and action. We conducted a qualitative and a quantitative research. The sample is represented by 676 young buyers of cosmetic products from direct selling companies. We selected items for loyalty scales and pre-tested the questionnaire. We used both exploratory and confirmatory factor analysis.
TL;DR: In this paper, the authors examined the relationship between the risk tolerance of individual investors and their demographic features and found that most of the anticipated relationship between financial risk tolerance and each of the demographic features from the literature were found to be relevant.
Abstract: Financial risk tolerance is the level of risk that a client believes they are willing to accept. Risk Tolerance must be measured simply because it is an aspect of utility for any investment decision and maximizing the expected utility is considered to be the ultimate goal in any financial activity. The paper reports the results of the study that was designed to examine the association/relationship between the risk tolerance of individual investors and their demographic features. Most of the anticipated relationship between financial risk tolerance and each of the demographic features from the literature were found to be relevant.
TL;DR: In this paper, several energy indicators are used as independent variables in panel data regression models for several European Union countries with very high and high human development, and their contribution to the changes in Human Development Index (the dependent variable from the equations) is revealed.
Abstract: The purpose of this study is to provide evidence for the role of energy in development, with focus on human development. Aspects regarding the influence of energy on sustainable development and economic development are also highlighted. Several energy indicators are used as independent variables in panel data regression models for several European Union countries with very high and high human development. Their contribution to the changes in Human Development Index (the dependent variable from the equations) is revealed. Both fossil and renewable energy consumptions are included in the analysis in order to declare their capability of attaining human development in the context of consequences on health and environment. In the same time, as energy consumption is accompanied by carbon emissions, we included the CO2 intensity among the explanatory variables. In our trial to determine if energy drives or hinders human development, energy intensity was also used; it resulted that mainly, high levels of energy intensity of a nation poses threats to its human development.
TL;DR: In this paper, a qualitative approach with semi-structured interviews was used to explore in depth all the factors and the interaction of all stakeholders within a social media networks adoption process by Indonesian SME.
Abstract: We observed how an Indonesian SME using social media networks (Facebook and Twitter) for their business. The adoption of social media network to promote and conduct business in SMEs is quite new. We used Actor Network Theory ( Callon, 1999 , Latour, 2005 , Law, 1999 ) to explain the adoption social media networks due to its ability to explain the adoption phenomenon as an interactive process between organisations and its environment rather than focusing on individual factors that may affecting the adoption ( Kautz, 2004 , Slappendel, 1996 ). The qualitative approach was deemed appropriate for this study since the use of a process-based perspective required a thorough analysis and understanding of the social media networks adoption process. The qualitative approach with semi-structured interviews allowed us to explore in depth all the factors and the interaction of all stakeholders within a social media networks adoption process by Indonesian SME( Creswell, 2003 , Leedy and Ormrod, 2005 ). As a result we found a number of factors that enable the success of using social media networks for supporting business.
TL;DR: In this article, the authors assesses management education student's expectation, perception and satisfaction of services experienced across four categories of institutions in Coimbatore, and find that a significant difference was found between the perception of students across four classes in all six dimensions of institution quality factors.
Abstract: This study assesses management education student's expectation, perception and satisfaction of services experienced across four categories of institutions in Coimbatore. Institution quality factors were captured using structured questionnaire across six dimensions namely, location, academics, infrastructure, image, cost and personnel and overall satisfaction. A significant difference was found between the perception of students across four categories of institutions in all six dimensions of institution quality factors. All five factors except cost significantly influence the overall satisfaction of students towards the institution.
TL;DR: In this paper, the authors examined the relationship between board of directors characteristics (educational level diversity, nationality diversity, board interlocking, board size and number of independent directors) and intellectual capital performance in a sample of 147 banks in Gulf Cooperation Council (GCC) countries for the period 2008-2010.
Abstract: This paper examines the relationship between board of directors’ characteristics (educational level diversity, nationality diversity, board interlocking, board size and number of independent directors) and intellectual capital performance in a sample of 147 banks in Gulf Cooperation council (GCC) countries for the period 2008-2010. The results show that IC performance of GCC listed banks is low. In contrast to our expectation, the number of independent directors has a significant negative relationship with IC performance of GCC listed banks. All other variables are not associated with IC performance.
TL;DR: In this article, the authors focus on certain factors related to the entity's internal characteristics, consisting mainly in how the entity is managed, in order to identify if good corporate governance practices explain the voluntary environmental reporting.
Abstract: Because environmental reporting remains voluntary on an international level, there are major differences in terms of the quality and quantity of environmental information, reported by entities from varied industries and countries. Starting from the agency theory, the company is accountable for the decision to report environmental information, decision which is made by the management to serve for the best interest of the shareholders ( Buniamin et al., 2011 : 56). Within this study, we would therefore focus on certain factors related to the entity's internal characteristics, consisting mainly in how the entity is managed, in order to identify if good corporate governance practices explain the voluntary environmental reporting. The research is conducted as an empirical study which explains how the disclosure of environmental information varies across the largest entities operating in the petroleum industry and reflects factors that could account for these variations. The paper identifies the corporate governance characteristics such as the percentage of independent directors and the existence of an environmental committee as factors that explain the variation in environmental information disclosure. We conclude that in order to secure the transparency of environmental performance within a company, the board should ensure a sufficiently number of independent members able to exercise an independent reasoning for solving potential conflicts of interests. Also, the environmental committee monitors the company's activity in terms of its environmental impact, bringing about increasing transparency regarding the environmental aspects. We can therefore consider that implementing good corporate governance practices by establishing environmental, safety or responsibility committees that monitor the environmental impact of the company and introducing a sufficient numbers of directors ensuring transparency and objectivity can solve the agency's theory conflict and determine companies to report more voluntary information regarding their environmental performance and other aspects. The paper contributes to an understanding of the correlations between corporate governance practices and voluntary environmental reporting.
TL;DR: This paper considers Reinforcement Learning (RL) type algorithms, that is algorithms that optimize their behavior in relation to the responses they get from the environment in which they operate, without the need for a supervisor.
Abstract: The construction of automatic Financial Trading Systems (FTSs) is a subject of research of high interest for both academic environment and financial one due to the potential promises by self-learning methodologies and by the increasing power of actual computers. In this paper we consider Reinforcement Learning (RL) type algorithms, that is algorithms that optimize their behavior in relation to the responses they get from the environment in which they operate, without the need for a supervisor. In particular, first we introduce the essential aspects of RL which are of interest for our purposes, then we present some original automatic FTSs based on differently configured RL algorithms and apply such FTSs to artificial and real time series of daily financial asset prices.
TL;DR: This paper presents the place and the role of Business Intelligence in SME's activity and to identify their level of use and the main components of a Business Intelligence System and identifies the BI solutions for SMEs on the global market and on the Romanian market.
Abstract: The economy globalization has generated the globalization of information each manager has to deal with rapidly and efficiently in decision making process. SME's are more vulnerable to changing business conditions than larger competitors. To survive in the unstable economic environment in which they operate, SMEs must be able to monitor their business and use all their resources efficiently, especially the information resources. In the last decade the use of information systems in management activities became a must. The main objective of this paper is to present the place and the role of Business Intelligence in SME's activity and to identify their level of use. After a short literature review we will analyze the main components of a Business Intelligence System and we will identify the BI solutions for SME's on the global market and on the Romanian market.
TL;DR: In this paper, the authors investigated the relationship between the recent global financial and economic crisis and FDI flows and found that economic growth has a significant influence over the level of FDI and moreover a positive influence.
Abstract: Few studies have investigated the relationship between the recent global financial and economic crisis and FDI flows. This paper aims to analyze such a relationship for Central and Eastern European countries (EU members). The crisis had a major impact on capital flows to the region, although the magnitude of the impact differed notably, depending on the type of capital inflows and the receiving country. In order to highlight this, we use a regression model and panel data methodology, trying to find if there is some difference between the analyzed countries. The results will be very useful if there is a pattern for different countries regarding the main effect of the financial crisis and the interaction with economic growth over the FDI. Taking into consideration the fact that we found that economic growth has a significant influence over the level of FDI and, moreover, a positive influence, the present study is very important in supporting the regulatory environment of those specific countries, in order to attract more FDI, as a solution for recovery of the economies affected by crisis.
TL;DR: In this paper, the authors find empirical evidence whether corporate governance mechanisms (ownership structure, independent commissioners, and audit committee characteristics) affect the level of voluntary disclosure of Internet Financial Reporting (IFR).
Abstract: The purpose of this study is to find empirical evidence whether corporate governance mechanisms (ownership structure, independent commissioners, and audit committee characteristics) affect the level of voluntary disclosure of Internet Financial Reporting (IFR). Populations used in this study are all of 420 Indonesian companies listed in Indonesian Stock Exchange (IDX) in the period of 2010. The sample of this research is determined using purposive sampling method. There are 95 companies fulfill the criteria. Data were analyzed using multiple regression analysis. The result indicates that among corporate governance mechanisms, only audit committee meeting frequencies influence voluntary disclosure of IFR.
TL;DR: In this paper, the authors investigate environmental disclosures on websites by companies in the Stock Exchange of Thailand (SET), and test for a possible relationship between the amount of disclosures and a variety of factors.
Abstract: This study aims to investigate environmental disclosures on websites by companies in the Stock Exchange of Thailand (SET), and test for a possible relationship between the amount of disclosures and a variety of factors. Findings indicated that 88 percent of sampled Thai listed companies provided environmental information on their websites, and there was a relationship between the amount of disclosures and type of industry, ownership status, and audit firm.
TL;DR: In this article, the authors explored women entrepreneurs who made a change from salaried employment to ownership of small and medium businesses using a convenience sample comprising 153 women who started their own businesses and found that the main factors that spurred women to leave employment for business ownership were a need to achieve personal growth, independence and the economic payoff.
Abstract: This study explored women entrepreneurs who made a change from salaried employment to ownership of small and medium businesses. The study used a convenience sample comprising 153 women started their own businesses. The study focused on; first, the factors that cause women to leave employment for business ownership; second, their personal and entrepreneurial characteristics and; last, the challenges they faced during the transition from salaried employment to business ownership. A self-administered questionnaire was distributed by hand, email and fax. The main factors identified to have spurred women to leave employment for business ownership were a need to achieve personal growth, independence and the economic payoff. Passion for the business, listening and communication skills, and self discipline were among the most common personal skills. The prime entrepreneurial skills that were indicated include confidence, leadership, creative thinking in problem solving, being efficient and effective in executing plans, entrepreneurial and business knowledge, being analytical, balancing skills between personal and business life, and flexibility. The challenges faced by the respondents were a shortage of professional staff, shortage of general staff, issues of development and growth, financial constraints due to high overheads and a lack of consultation advice from experts.
TL;DR: In this article, a decision tree model is proposed by applying data mining methodology for credit risk assessment for secured loans in a rural bank in Bali, aiming on the reduction of number of non-performing loans.
Abstract: Credit risk assessment for secured loans is an important operation in banking systems to ensure the lenders pay the loans on schedule and to classify the bank as a well performing bank due to regulation. This paper aims to identify factors which are necessary for a rural bank (Bank Perkreditan Rakyat) to assess credit application. By aiming on the reduction of number of non-performing loans, current decision criteria on credit risk assessment are evaluated. Subsequently, a decision tree model is proposed by applying data mining methodology. The credit risk assessment model is applied to PT BPR X in Bali that had 1082 lenders (11.99%) who had non-performing loans and were identified as bad loan cases. This made PT BPR X was categorized as a poorly performing bank. Data mining is used to suggest a decision tree model for credit assessment as it can indicate whether the request of lenders can be classified as performing or non-performing loans risk. Using C 5.0 methodology, a new decision tree model is generated. This model suggests that new criteria in analyzing the loan application. The evaluation results show that if this model is applied, PT BPR X can reduce non-performing loans to less than 5% and the bank can be classified as a well performing bank.
TL;DR: In this article, the influence of corporate governance characteristics on the corporate failure of listed companies in Sri Lanka is examined by using logistic regression analysis, and the authors found that board size, CEO duality, outside directors, outsiders' ownership, audit opinion, presence of an audit committee and remuneration of board members are associated with the probability of corporate failure.
Abstract: The purpose of this research is to examine the influence of corporate governance characteristics on the corporate failure of listed companies in Sri Lanka. This study utilized publicly available data from annual reports of a sample of 70 failed firms and a sample of matched 70 non failed firms listed on Colombo stock market for a period covering the 2002 to 2008 financial years with logistic regression analysis. Corporate governance characteristics comprises with board size, CEO duality, outside directors, outsiders’ ownership, audit opinion, presence of an audit committee and remuneration of board members. Outside director ratio, presence of an audit committee and remuneration of board members turn out to be negatively associated with the probability of corporate failure, While CEO duality is positively related with the likelihood of corporate failure. Board size, auditor's opinion and outside ownership do not appear to be significant determinants. The paper offers evidence on the extent to which corporate failure associated with corporate governance. It would be educational to investors, financial analysts, accounting professionals, management and be helpful for regulatory authorities in making decisions, evaluations and policies.