International Journal of Commerce and Finance

Number 2, 2021

21-49
Comparative Analysis of The Effect of Loan/Financing to Deposit Ratio, Labor Costs Growth and Promotion Costs Growth to Returns on Assets in Islamic Banks and Conventional Banks in Indonesia

Authors: Lucky Nugroho, Erik Nugraha, Ahmad Badawi, Yananto Mihadi Putra

Abstract

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Number of views: 76

The banking industry is the locomotive of economic growth in a country. Therefore, the performance of the banking industry must be the focus of all stakeholders. This study compares the factors that influence the performance represented by the Return on Asset (ROA) ratio in both the Islamic banking industry and the conventional banking industry. The factors that affect the ROA used in this study are the distribution of financing (FDR/LDR), growth in labor costs, and growth in promotion costs. The method used in this research is quantitative by using a panel data regression test. The data used are primary data from Islamic banks and conventional banks for four years, namely in the 2014-2018 period. Moreover, the research questions are: (i) Are there differences in FDR's effect on ROA between Islamic banks and conventional banks?; (ii) Are there differences in the effect of growth in labor costs on ROA between Islamic and conventional banks?; (iii) Are there differences in the influence of the growth in promotion costs on ROA promotion between Islamic banks and conventional banks? The results of the study show that the distribution of financing (FDR) to Islamic banks and conventional banks positively and significantly affects ROA. The growth of labor costs in Islamic banks and conventional banks has a negative and significant effect on ROA. At the same time, the growth in promotion costs between Islamic banks and conventional banks is different. Promotion cost growth in Islamic banks has a negative and significant effect on ROA growth. However, in conventional banks, the growth in promotion costs has a positive and significant effect on ROA.

50-70
The Effect of Banking Sector Efficiency on the Economic Development in West Africa

Authors: Aboubacar Doucoure, Serkan Çankaya

Abstract

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Number of views: 92

The primary goal of this research is to analyze whether the financial efficiency of the banking sector in the Economic Community of West African States region estimated by financial indicators as Return on Asset (ROA), Return on Equity (ROE) and Net Interest Income (NIM) affects the economic development measured by the Gross Domestic Product (GDP) growth. The choice of these profitability and rentability variables is inspired by the World Bank’s indicators of financial institutions efficiency at country level. This research investigated the impact of banking sector efficiency on the economic development in country members of the Economic Community of West African States (ECOWAS) from 2010 to 2019. This study uses quantitative methodology in order to attain the main objective. The research proposes to develop a methodology, through theoretical study as well as making use of related literatures, which can be used in determining the impact of banking sector performance and economic development in West African region. The required data can be classified into two main categories: the factors that determine bank efficiency, and the economic indicator that explains growth in the region. The goal is to analyze whether the financial efficiency of banks lead to growth in the economies of countries. In our model, the banking sector efficiency measured by financial indicators as ROA, ROE, and NIM indicates the explanatory variables while annual growth rate of GDP for economic development measures the predicted variable. The model uses Panel Generalized Method of Moment (GMM) to test the hypothesis from EVIEWS software. The result of our survey suggests that among all the explanatory variables only the return on asset (ROA) has statistically significant influence on the gross domestic product (GDP) growth rate meaning that the banking sector financial performance measured by ROA has significant impact on the economic growth in West Africa. The research shows that the main actors in banking sector and authorities should focus on the efficiency of banking system in order to drive a sustainable economic growth. In addition, this research obviously provides some important information to researchers, governments, financial analysts, banking policy makers and supervisory authorities

71-100
Reverse Culture Shock among International Business Administration Exchange Students

Authors: Ola M.A. Agha

Abstract

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Number of views: 77

Reverse Culture Shock (RCS) is concerned with the readaptation process to the home country the expats go through upon their return after leaving the host country. The purpose of this research is to understand whether the respondents faced reverse culture shock upon reentry and to establish the relationship between RCS and demographic factors of the respondents. A cross-sectional survey design is used to fulfill the objectives of the study. Primary data was collected from 136 respondents by completing an online questionnaire adopted from (Austin, 1986; Church, 1982; Freedman, 1986; Koester,1985; Martin,1984; Sussman, 1986; Uehara, 1986). The data is analyzed by the use of SPSS 25 using independent t-test and one-way ANOVA. The results indicate that the Business Administration/ MBA international students who participated in exchange programs and went back home differ significantly in their RCS regarding their education level. However, they do not differ significantly in their RCS in terms of gender, age, length of trip, and time since returning home.

101-121
Global or Local Strategies? McDonald’s Turkey Example

Authors: Sertaç Hamza, Ahu Tuğba Karabulut

Abstract

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Number of views: 323

This study aims to explore how a global franchisor applies global and local strategies in its Turkish franchisees. McDonald’s is a global franchisor which has a distribution licence agreement with Anadolu Group in Turkey. The effect of the agreement is discussed interms of global and local strategies in the fields of Supply Chain Management, Operations Management, Marketing Management, Finance Management, and Human Resources Management. In dept interviews were conducted with functional managers of McDonald’s Turkey to find out the approach of the company. According to the findings of the in depth interviews, it is found out that the company applies both global and local strategies in Turkey for decreasing its costs, increasing its efficiency and alligning its strategies with its headquater. However, it focuses on local strategies more than global strategies due to the effect of its local distribution licencee Anadolu Group.

122-139
The Effect of Taxation on The Gross Turnover of SME's in Uganda

Authors: İsmail Dirie

Abstract

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Number of views: 76

This study was undertaken to assess the relationship between tax liability and gross turnover of small and medium enterprises over a period from 2002 to 2018 in Uganda. It aimed to determine the relationship between taxation and gross turnover of small and medium enterprises, as well as economic growth. The specific objective of the research was to evaluate the effect of tax rates on the gross turnover of small and medium enterprises. Primary data was obtained from respondents inform of surveys while the secondary data, tax liability and gross turnover, was collected from Uganda's revenue authority sources. The study adopted the Granger causality test, unit root test, and stability test and the following findings were determined: first, taxation negatively affects the gross turnover of SMEs.The outcome of the Granger causality test indicates that there is a statically significant negative relationship from taxation to gross turnover by 0.0372 at a 95% significance level. Second, there is a negative relationship between taxation and gross turnover which hurts the growth of the economy. This means an increase in taxation causes a decrease in economic growth. The study concluded that the effect of taxation on the gross turnover of SMEs is due to high rates of tax on one hand and taxpayers who don't know their tax obligation on the other hand. The study provides evidence that help policy makers and the state to balance the requirements and the objective of SMEs for profit and growth. There is a need for tax restructuring, as well as tax education to taxpayers.

140-164
The Impact of Hofstede's Cultural Dimensions on Consumer Behaviour Intentions

Authors: Mehmet Sağlam, Maryama Dahir Abdullah

Abstract

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Number of views: 152

The purpose of this research was to examine the impact of Hofstede's culture dimensions (long-term/short term orientation, power distance index, masculinity/feminity index, uncertainty avoidance, and individualism/collectivism) on consumer behavior intentions (word of mouth, complaining behavior, purchase intention, price sensitivity) on two countries namely Turkey and Somalia. Primary data was collected using a questionnaire sent electronically via Google Forms to the respondents’ emails. Convenience sampling was used in the study. the sample size used here included 305 respondents–153 respondents from Somalia and the other 152 respondents from Turkey. SPSS 22 and LISREL 8.7 Packages Program was used for Statistical Analysis. As a result of the study, it was determined that Hofstede culture dimensions did not have an effect on consumer behaviour intention for the Somalia sample, while power distance and uncertainty avoidance had a positive effect on word of mouth communication and long term orientation had a positive effect on price sensitivity and complaining behavior intention for the Turkish sample.

165-183
Good Corporate Governance, Leverage, Firm Size And Earning Management Evidence from Indonesia

Authors: Dwi Asih Surjandari, Minanari Minanari, Lela Nurlaelawati

Abstract

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Number of views: 107

The purpose of this study is to analyze the effect of Good Corporate Governance, Leverage and Firm Size on Earning Management in manufacturing companies listed on the Indonesia Stock Exchange for the period 2015 to 2019. The study involves secondary data in the form of annual financial reports from 66 companies that meet the criteria obtained from the IDX website and the research object is Good Corporate Governance, Leverage, Firm Size as the independent variable and Earning Management as the Dependent variable. The analysis uses regression with E-views version 11.0. The results showed that all independent variables represented by Good Corporate Governance, Leverage and Firm Size had a weak effect on Earning Management and partially, only Leverage had a significantly negative effect on Earning Management. The implication of this research, is that the parties who concern with the limitation of Earning Management activities supposed to consider Leverage in their decision making.

184-205
The Relationship Between Mindfulness and Self-Efficacy

Authors: Çiğdem Şükran Cede, Aylin Gözen

Abstract

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Number of views: 117

This study was written to contribute to the literature regarding the relationship between mindfulness and self-efficacy. Mindfulness is a way of directing attention that is rooted in the Eastern meditation tradition. It has started to be discussed and applied more and more in Western culture. It is aimed to direct the mind's attention with a specific method in mindfulness meditation. On the other hand, Self-efficacy as the sub dimension of positive psychological capital focuses on the belief that a person will perform successfully in a specific area. Self efficancy considers the feeling of believing individual's self and abilities in a work or a situation. In this regard, the aim of this study is to examine the relationship between mindfulness and self-efficacy by conducting a literature review regarding those two concepts. As a result of the research, it is concluded that there is a positive and significant relationship between mindfulness and self-efficacy.