A New Issue of the Corporate Ownership and Control Journal

The recent issue of the journal Corporate Ownership and Control pays attention to issues of financial performance, bond market, small business sector, risk factors, etc. More detailed explanation is given below.

Tasawar Nawaz examines the effect of intangible and financial resources on accounting- and market-based performance of two bank business models i.e. conventional and Islamic banks operating in fourteen different countries worldwide for two periods referred as pre (2006-2007) and post (2009-2010) financial crisis (568 observations). The required data to calculate different constituents of intangible (i.e. intellectual capital (IC)) and financial resources is derived from Bankscope database. The results reveal that both IC and financial capital resources are necessary for banks being conventional or Islamic to create value at all times i.e. pre- and post-crisis period.

Adalto Barbaceia Gonçalves and Felipe Tumenas Marques expand the existing literature on modeling the term structure of Brazilian interest rates evaluating all the yield curves of Brazilian market using the methodology proposed by Nelson and Siegel. Authors use Non Linear Least Squares (NLLS) to estimate the model parameters for almost 10 years of monthly data and model these parameters with the traditional VAR/VEC model. The results show that it is possible to estimate the Nelson Siegel model for the Brazilian curves.

Bonginkosi Keith Zwane and Celani John Nyide has chosen a sample on a non-probability basis using convenience sampling of small business owners within the eThekwini Municipality, KwaZulu-Natal, South Africa. 83 participants completed the questionnaire. The data collected was analysed using descriptive and inferential statistics. The findings regarding awareness of financial bootstrapping as a source of funding remains unknown. The evidence in the study shows that a number of respondents unknowingly used some of the bootstrapping methods.

Aki Lappalainen discusses the theory that risk factors divide to the company specific and asset specific risk factors. The first group affects to the expected value of an equity of a company whereas the second only to the positive cash outflows for a specific asset. The author finds that equity market, value, and quality factors are indeed possible company specific risk factors with influence on an expected equity of a company and dividend and volatility factors are possible stock specific risk factors affecting positively to dividends and other cash payments from a company to shareholders. These results are statistically significant and important for our understanding of risk factors and their characteristics.

Inna Sousa Paiva and Isabel Costa Lourenço analyze the determinants of the level of earnings management in a wide sample of listed firms from the hotel industry in 15 countries. The empirical study relies on the discretionary accruals, as an indication of earnings management, and examines the firm and country characteristics that are potentially associated with those discretionary accruals. The results suggest that firm characteristics, including the leverage ratio, cash flow from operations, investment opportunities and the frequency of losses, are the major determinant of earnings management in the hotel industry around the world.

Krismiaji and Adi Prabhata discuss empirical research examining the impact of International Financial Reporting Standards (IFRS) on cost of capital. Using a sample of 1.173 observations of publicly listed companies on the Indonesian Stock Exchange for the fiscal year that ends on December 31, 2006 through 2013, this research finds evidence of positive relationship between IFRS implementation and cost of capital. This means that in post adoption period, the cost of capital increase. This result is inconsistent with investor’s expectation, in which IFRS implementation will reduce information asymmetry which in turn decreases cost of capital.

Ophillia Ledimo aims to evaluate the role of leadership on employees’ job satisfaction; using a sample of n= 80 participants who are employees of a debt collection division. Data was collected using the Multifactor Leadership Questionnaire (MLQ) and the Job Satisfaction Survey (JSS). Descriptive and inferential analysis results indicate that there are significant relationships between transformational, transactional and laissez-faire leadership with job satisfaction dimensions. This study indicates that to improve employees’ job satisfaction it is essential that the current leadership in the organisation reflects an ideal or preferred leadership approach for its employees. Practical implications of the findings are discussed and recommendations for future research are explained.

Sisimogang Tracy Seane, Gisele Mah and Paul Saah examine the cointegration and causal link among household disposable income, household savings, and debt service ratio, lending interest rate, consumer price index and household debt in South Africa. An Autoregressive Distributed Lag and Granger causality techniques was used to analyse data collected from the South African Reserve Bank and Quantec from 1984 to 2014. The results of Autoregressive Distributed Lag test revealed cointegrating relationships between household debt and debt service ratio as well as household debt and lending interest rate. However, there is no long run cointegrating relationship between household disposable income, household savings and consumer price index with household debt.

Muhtar Muhtar, Abdul Rohman and Anis Chariri investigate the determinants of opportunistic behavior of executives in the local governments in Indonesia. The authors study 502 regional governments over the 2008-2013 periods. Opportunistic behavior is measured by the level of social spending and capital expenditures. The main determinants of opportunistic behavior come from the composition of local government income. The researchers also include the integrity of apparatus as the determinant of opportunistic behavior. The results reveal that the composition of income matters to explain the budget allocation. Some policy implications are discussed.

Rebecca Tladinyane examine the relationship dynamics between employees’ psychological career resources (measured by the Psychological Career Resources Inventory) and their work engagement (measured by the Utrecht Work Engagement Scale). A quantitative survey was conducted involving a non-probability purposive sample of adults (N = 318) employed in the field of industrial and organisational psychology. A multiple regression analysis indicated that psychological career resources constructs positively and significantly predicts work engagement.

A. Seetharaman, Indu Niranjan, Varun Tandon and A. S. Saravanan methodically identified and analysed four factors, namely, data source, data analysis tools, financial and economic outcomes and data security and data privacy, to gauge their influence on the impact of Big Data in the retail industry. This research analyses the impact of big data analysis on retail firms that use data and business analytics to make decisions, termed a data-driven decision-making (DDD) approach. The new finding is arrived that financial and economic outcome showed a strong support and have direct relationship with data analysis tools of retail industry.

Shamsul Nahar Abdullah, Nor Hafizah Zainal Abidin, Intan Suryani Abu Bakar and Anis Ur Rahman examine the appointment process for independent directors in public listed companies (PLCs) in Malaysia. To this end, open-ended interviews were conducted with chairmen of nomination committees of PLCs in Malaysia in order to understand the appointment process. The results revealed that nominations may come from various sources, including from the firm’s board members, CEO or owners. It was also found that the nominees are those within the personal network of the board members, CEO or owners.

Tariq Mohamed SalihAtiya, Muawya Ahmed Hussein and Khalid Al Maashani investigate the extent to which the family businesses ownership is separated from their management in the governorate of Dhofar, in Oman. The objective is to examine the impact of ownership and management separation on the performance of the family businesses. The study uses the descriptive survey method and a sample of 36 family owned businesses for the survey. A questionnaire is used to collect data. The findings of study shows positive relationship between the separation of ownership and customer as well as employees satisfaction also has statistical significance on the different dimensions of the dependent variable (corporate performance).

To browse papers in the issue visit this page.