Jornal of Management, Economics and Industrial Organization

1-30.

Authors: Tasin Alif

For a country like Bangladesh, ensuring financial access to all level of business, entrepreneurship and individual should be a critical priority. In the development of any country, a well trusted financial system is a prerequisite. Non-Banking Financial Institutions (NBFIs) were established for meeting the special and growing financial needs of the country. Only a few of NBFIs are running their operation effectively. One of the listed NBFIs, People’s Leasing , are currently on liquidation due to the collapse of its financial condition in the last several years. The NBFIs sector is new and small as compared to Banks, the event of liquidation is the first event of liquidation in this sector which made this sector vulnerable. Many more NBFIs are already at stake, which could be subject to liquidation or similar types of actions in the near future. This paper examined all the listed NBFIs and found that more NBFIs may face the same types of regulatory risk as like as the PLFSL in the near future. Finding alternative sources of funds should be a priority of this industry as the higher cost of funds continues to rise over the years. In 2018, the cost of weighted average fund of NBFIs was 70% upper than Banks. The Non-performing Loan (NPL) of NBFIs is continuously increasing. At the end of 2018, their NPL raised at 7.77% of their overall Leases, loans and advances. This paper shows that the retained earnings of listed NBFIs industry, is in decreasing trend over the last five years, their retained earnings goes down to negative in 2017 at 1.68 billion and at the end of 2018 it was negative 2.90 billion. After the liquidation of PLFSL, a systemic risk was evolved in the industry. Investors and depositors are confused about whether to keep their investment or not. Annual growth of deposit falls to 5.86 % in 2018. This sector also experienced a negative trend of NIM from the last five years. Also, some NBFIs are experiencing negative Interest rate spread (IRS). NBFIs are engaged in direct competition with the banks now, specially, after banks entry in the leasing activity. NBFIs firstly come into seen with the leasing products but currently the overall leasing activities of NBFI industry is at the level of 13.6 %. The annual growth of total asset was not satisfactory due to the fall of the growth rate of their asset in 2018. Total asset as compared to GDP was also reduced to 2.75% (2018) from 3% of 2017. This sector may be able to act significantly in our financial sector if we can handle the current situation. If this sector is given appropriate support for overcoming their condition, this sector can also be a sustainable sector.

39-64.

Authors: Cemil Kuzey, Muhammet Sait Dinc, Farzan Ullah Khan, Victor Raj

Foreign direct investment (FDI) is a key element of the global economy, which is an engine of employment, technological progress, productivity improvements, and, ultimately, economic growth, especially within emerging countries. As an emerging country, India has attracted the attention of multinational enterprises in recent years. This study aims to explore a variety of foreign direct investment decision-making motives of multinational enterprises which have entered the market in India. Qualitative research methodology was incorporated in this study to investigate different FDI decision-making motives by means of interviews with the representatives of eight companies who hold enterprises in India in which the study findings regarding the various entry modes, location choices, strategies, opportunities and challenges faced by multinational entities in the Indian market were explored.

86-99.

Authors: Puman Hou, Benny Lim

China celebrated the 70th anniversary of its founding in 2019, and this has triggered heightened imagination towards traditional Chinese arts and culture. In the same year, its Ministry of Culture and Tourism rolled out a comprehensive plan to conserve traditional artforms by promoting active revitalization. This exploratory research investigates the possible strategies, as well as areas of contention, in commercializing traditional performing arts, specifically, Chinese crosstalk. An in-depth case study of well-known Chinese crosstalk company, Deyunshe, is carried out. Case study involves in-depth investigations and the eventual understanding of real-world situations and phenomena. Deyunshe is one of the very few established Chinese crosstalk companies in China dedicated to revitalizing the art form. Research outcomes show that Deyunshe has been successful in revitalizing and commercializing Chinese crosstalk with its effective product, place, price, people, and physical evidence strategies. This in turn creates a viable model for traditional performing arts in China, crosstalk or otherwise, to be revitalized and made marketable. Nevertheless, the over-revitalization/commercialization of traditional performing arts may also result in the subordination of the artistic values of the artforms.

1-19.

Authors: Abdurrahim Emhan, Serkan Bayraktaroğlu, Sinem Güravşar Gökçe, Gökşen Topuz, Mehmet Fatih Yaşar

In this study, leadership style perceptions, emotion regulation abilities, and organizational performance perceptions of employees in the banking sector, and mediating effect of emotion regulation on the relationship of performance and leadership styles were measured. To test the model, a questionnaire was applied to the banking sector employees working in the Diyarbakır province of Turkey. As a result of the Structural Equation Model (SEM), emotion regulation mediates between performance and transformational leadership. The relationship between performance, transactional leadership style, and laissez-fair leadership style was not significant. A mediating effect of emotion regulation between organizational performance and leadership perception was examined by the same model. Also, some differences were found in terms of demographical variables.

52-63.

Authors: Wong Kok Yaw

Halal food industry is expanding in international marketplace due to the increasing number in Muslims. Enterprises from the globe are encouraged to invest in this market since many countries have lowered their restriction on foreign investment. Vietnamese market is viewed as a strong potential for the growth of Halal foods with its national trade promotion program to encourage local and foreign firms to produce halal foods. Getting more Malaysia small and medium enterprises (SMEs) are entering into Vietnam Halal food industry in recent years and the number is increasing in recent years. They are advised to conduct country environmental analysis and entry mode evaluation in order to discover the potential impacts on their foreign investment. It is also useful for SMEs to identify the opportunities in Vietnamese market.

75-88.

Authors: Rahji Ohize Ibrahim, Kamaldeen Ibraheem Nageri

Erstwhile studies proved that debt can positively or negatively affect firm's performance. This study tests the long run and short run dynamic of debt on firm‘s performance in the context of the negative and positive effects. The panel cointegration model, fully modified Ordinary Least Square and error correction model were employed. The panel cointegration result indicates existence of long run relationship between debt and firm performance. 19.85% long run disequilibrium is corrected within a year while there is significant short run relationship between debt and return on investment. In the same vein, 1.52% long run disequilibrium is corrected within a year while there is significant short run relationship between debt and return on assets. This implies that the use of debt on investment and asset, should be properly scrutinise within the fine line of investment and asset to determine optimal use.

1-27.

Authors: Arafat Zahan, Md. Shohel Rana

The major objective of this study is to identify whether dividend announcement convey any information to the market that results a price reaction. With the objectives in mind, this paper used only secondary data from DSE. The study comprised a total of 21 companies these are listed by DSE. The research is only quantitative in nature. The empirical part of this study employs a standard ‘event study methodology’ to analyze the stock price reaction to dividend announcement. With the help of ‘event study methodology’ MAAR and CAAR to analyze the effect of dividend announcement on stock prices taking 21 listed companies of Dhaka Stock Exchange (DSE) in Bangladesh. The results were showed by using chart, table, descriptive statistics and t-statistics. The finding indicates that some companies are efficient, and some are inefficient. The results are statistically significant both before declaration date and after declaration date. In this paper, before declaration date of third and eight are efficient and after declaration date of five and eight are inefficient.

41-58.

Authors: Adedapo Odebode, Osman Nuri Aras

We explore dynamic non-stationarity panel data estimators namely, mean group (MG) and pooled mean group (PMG) for investigating the extent to which trade policies such as trade liberalisation and tariff rates matter to trade performance using the case of Sub-Saharan Africa (SSA). We found that increasing tariffs has the potential of particularly worsening export growth in SSA but increasing openness via liberalisation policy is likely to spur decline in the import dependence of the SSA economy. Thus, we concluded that while trade liberalisation seems to exhibit no significant impact on export growth in SSA, the same policy may yet be explored to encourage decline in the region’s import activities, particularly those import activities that might threaten the growth of domestic industries.

77-88.

Authors: Helen Nwobodo, Fola F. Adegbie, O. O. Banmore

The increasing trend of declined in bank efficiency and operational performance in recent years raised unquestionable concerned and pose serious threats to the stability and survival of deposit money banks across the globe. Studies have shown that most deposit money banks in Nigeria have experienced declined in bank efficiency and operational performance due to weak internal control system thus caused financial losses to banks and loss of public confidence in the banking sector. The study employed a survey research design and the population was 568 staff and the sample size used was 292 using Cochran sample size determination. The reliability coefficient ranged from 0.71 to 0.94. The study found out that internal control system has positive and significant effect on bank efficiency and operational performance of the selected quoted deposit money banks with (P<5%). The study concluded that internal control system has effect on bank operational performance and efficiency. The study recommended that the management should ensure that their banks have strong internal control environment and embrace inform policies and procedures that are adequate in order to achieve operational performance and bank efficiency.

109-129.

Authors: Monorith Sean, Chanmary Yim

This research paper aims to examine the impact of fiscal policy on Cambodia’s economic growth. More than that, this research also figures out fiscal stance on whether fiscal policy in Cambodia is contractionary or expansionary to stimulate the economy over the past two decades. Due to the limited observation, from 1994 through 2019, a totally of 26 years, this study employs Bayesian inference based on Bayesian Model Averaging (BMA) and Markov Chain Monte Carlo (MCMC) which uses Gibb Sampling to approximate posterior mean. By comparing these two approaches, the empirical results are identical. The empirical result revealed that Def, Debt, Faids, Er and Ex which represent government deficit, public debt, foreign aid, nominal exchange rate (KHR/USD) and export, respectively, are positive correlation with output growth in Cambodia. The increase in the deficit, public debt and foreign aid, means the government utilizes the fiscal policy to fine-tune the economy. Furthermore, this study also confirms that fiscal policy in Cambodia is conducted as a consolidated and stabilized policy. It can be concluded that the increase in the deficit, public debt, and foreign debt could stimulate the economy during the recession period where fiscal policy is acted as expansionary policy. During a post-recession, on the other hand, Royal Government of Cambodia (RGC) will conduct a contractionary fiscal policy to cool down the economy especially when the economy is overheating.

1-21.

Authors: Md. Shakhaowat Hossin, Md. Ataur Rahman

Asset liability mismatch in balance sheet of Sonali Bank Limited, Bangladesh posed serious challenges as the bank was following the traditional methods of recording assets and liabilities at the book value. The liberalization process in the economy coupled with multifaceted global developments exposed banks for various kinds of risks viz. interest rate risk, liquidity risk, exchange risk, operational risk etc. which have direct impact on their operations, profitability and efficiency to compete with. The volatility in interest rate during the last decade has witnessed risk in earnings or capital due to movement of interest rates which has affected the overall profitability of banks. Hence, there is a need for accurate measurement and control of Interest Rate Risk associated with a bank’s entire portfolio. This research paper makes an attempt to measure the Interest Rate Risk in Sonali Bank Limited by using Asset-Liability Mismatch, Relative Interest Sensitive Gap, Interest Sensitivity Ratio and Gap Analysis Technique. The findings revealed that Sonali Bank Limited, Bangladesh is greatly exposed to interest rate risk.

40-62.

Authors: Shabiha Akter, Md. Shohel Rana, Tanvir Hasan Anik

In this research paper, attempt has been made to explore the dynamic relationship between stock market and macroeconomic variables i.e. DSE index and three key macro-economic variables (Exchange rate, Industrial production in and Reserve), by using unit root stationary tests and Johansan co-integration test. Monthly data has been used from June, 2003 to June, 2015 for all the variables, like, DSE index, Exchange rate, Industrial production in and Reserve. Results showed that the variables contained a unit root and were integrated of order one. The vector error correction model (VECM) (Johansen (1991)) is utilized to determine the impact of selected macroeconomic variables on stock market. Empirical results show that the stock market and macroeconomics variables have no long-term equilibrium relationship.

76-99.

Authors: Ngboawaji Daniel Nte, Kenneth Nduka Omede, Bribena Kelvin Enokie, Onyeka Bienose

Competitive intelligence has remained a significant intervening variable on competitive advantage in the business world as part of survival and expansion. This reality exists in both the advanced and developing economies of the world. This study therefore examines the influence of competitive intelligence on competitive advantage of pharmaceutical firms in Lagos State, Nigeria. To achieve this objective, four hypotheses were formulated to establish whether a relationship existed between the two variables i.e. competitive intelligence and competitive advantage. The study adopted survey research design; data were obtained from structured questionnaire and analyzed using the one sample T- Test statistic. The result of the analysis revealed that a significant relationship existed between competitive intelligence and competitive advantage in pharmaceutical firms. Based on the findings, it was concluded that the role of competitive Intelligence on competitive advantage is to provide strategic information that will guide pharmaceutical firms in the task of improved marketing innovations to meet the need of the customers. Among other things the study recommended that for pharmaceutical firms to gain competitive advantage and increase their performance, they should leverage on useful information gathered in their environment to engage not only in product development but also in constantly making relevant innovations/modifications to their existing marketing strategies.

1-11.

Authors: Vichea Tan, Kongkoon Tochaiwat

The tremendous transformation across market sectors in Cambodia is the result of the country’s rapid economic growth over the past decades. Subsequently, the market demand and consumer behavior, in real estate industry especially, has also become more complex and diverse. The research aimed to explore a different variety of marketing strategies used by real estate developers in Cambodia that respond most effectively toward the changing and demanding market spectrum with a focus on middle-class households. This study involved three in-depth interviews with practitioners in real estate marketing who engaged in main-class subdivision housing development projects in Phnom Penh. Afterward, Content Analysis Technique was used to examine the outcome and generate the results of the interviews. The analysis of the interview’s outcome demonstrated that each developer shows different interests in Segmentation, Targeting, and Positioning (STP), while some components of the marketing mix (4Ps) such as product and price played a significant role in the success of the project. The result of this study will be beneficial to those subdivision real estate businesses who look to improve their marketing strategies to better meet the demands of the consumers.

27-45.

Authors: Wendra G. Rohmah, S. Asmaul Mustaniroh, Panji Deoranto, D. A. Nharawasthu

UKM Indah Lestari is one of SMEs in Tulungagung, East Java, which produces gadung yam chips. Having good institutional structure is one of the supporting success of this SMEs development. All this time, this SMEs has no inter-party relationship and institutional structure in integrated supply chain. The aim of this study were to determine the institutional structure of the supply chain and to show the relationship between elements on the institutional supply chain. Interpretive Structural Modeling (ISM) approach was a term used to analysis it. The results indicated that the institutional of gadung yam chips consists of suppliers, SMEs, retailers and government who are directly involved in the supply chain of gadung yam chips. The relationship among agents in the institutional structure of gadung yam chips supply chains has influence and linkage with each other that will move the business progress of that SMEs. Relation to the needs element and all sub-elements are key elements. In constraint element, sub-element consistency of quality and quantity of gadung yam tubers as well as lack of capital become sub-key elements. In the objective element, the availability of guaranteed raw materials becomes the key sub-element. It shows that government becomes the key sub-elements. Meanwhile within the element of improvement which is possible for all sub-elements has key sub-element.

60-77.

Authors: Adedapo Odebode, Osman Nuri Aras

Nigerian government has put in considerable effort at improve bilateral relation in the economy; its net effect is yet unclear. This raises concerns about the tradeoff benefit between trade openness as a proxy to globalization and contributions to the manufacturing output in Nigeria. This study examines the impact of globalization on manufacturing output in Nigeria. Using structural vector autoregressive (SVAR) approaches, from 2010Q1 to 2018Q4, the findings reveal that manufacturing output and transportation responded significantly to the foreign shocks emanating from globalization. The study established that the manufacturing output reacted negatively to exchange rate fluctuations, implying that exchange rate is very important to manufacturing sector in Nigeria. On the same vein, transportation, financial integration and globalization respectively were affected positively and significantly by exchange rate fluctuations to manufacturing sector.