Eurasian Journal of Business and Economics

Number 18, 2016

1-16.
Impact of Caring Climate, Job Satisfaction, and Affective Commitment on Employees’ Performance in the Banking Sector of Bosnia and Herzegovina

Authors: M. Sait DINC, Vesna PLAKALOVIC

Abstract

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Number of views: 413

The main purpose of this paper is to examine the impact of caring climate, employees' job satisfaction, and affective commitment on employees' job performance in a banking sector. This study proposes that caring climate has a significant direct effect on overall job satisfaction, affective commitment, and job performance. Moreover, it suggests that caring climate has an influence on job performance through overall job satisfaction and affective commitment. Additionally, affective commitment is considered to be a mediator in the relationship between overall job satisfaction and job performance. In this study, the relationships among the variables were evaluated using factor analysis, descriptive statistics, correlations, and regression. The results based on a sample of 152 employees from one public and three private banks in the Federation of Bosnia and Herzegovina support the hypotheses. This study demonstrates that caring climate has a significant direct influence on overall job satisfaction, affective commitment, and job performance. Furthermore, caring climate has an indirect effect on job performance. Finally, this research discovers an indirect relationship between overall job satisfaction and employees’ job performance through a mediating role of affective commitment.

17-39
Romanian Young Consumers Perception of Car Brands: A Personal Construct Theory Approach

Authors: Manuela Rozalia GABOR

Abstract

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Number of views: 399

Owning a “renown” car brand, a “latest hour” model, with a futuristic design, etc. is the ultimate dream of any driver. Thus, the car producers always take into account the real or the ideal needs of consumers, including on the emergent market. The research of car brand perception among consumers is possible with quantitative and qualitative methods statistics, respectively. The combine use of these leads to the qualitative improvement of the research, in the sense that it fathoms the aspects belonging to endogenous and exogenous variables, direct noticeable, of the consumers. This research regarding the perception of the car brands most often encountered on Romanian highways, among young Romanian consumers is based on a combined use of a repertory grid and the Principal Component Analysis method for the data elaborating and construing phase. The results show: the perceptions of consumers are grouped in: the ideal image of the future, youth – sportivity, reliability; a strong perception of the symbolic significance, subjective related to car brands; good perceptions according to the history of the car brands; good perceptions according to aspects connected to reliability and maintenance of the car brands; good perceptions according to the design of the body car and aspects connected to it.

41-59
Impact of Knowledge Capital on Performance of Firms: A Case of Firms in Finland

Authors: Jorma LEHTIMAKI , Jonne LEHTIMAK

Abstract

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Number of views: 408

Knowledge capital has become a major factor in a firm’s success. Depending on the owner knowledge capital can be divided into individual and organisational capital. The former is an individual’s knowledge which is comparable to liabilities in the balance sheet. The latter is connected to a firm’s structure and resources, and is comparable to equities in the balance sheet. Measuring knowledge capital is challenging, as it is often necessary to study private information from within a firm. This article approaches knowledge capital from a different perspective by studying public information in order to measure the financial value added by knowledge capital observed from a firm’s financial statement. This information was used to explain the financial performance of a firm. The results of the study indicate a statistically significant effect between the change in individual capital and economic performance as well as between organisational capital and economic performance. The immediate effect of individual capital on economic performance as well as the change in organisational capital was found to be statistically insignificant. The results imply that a firm looking for short-term growth should invest in organisational capital whereas a firm looking for long-term growth should invest in individual capital.

61-79
Examining the Performance of Indian Exchange Traded Funds (ETFs)

Authors: Naman SETHI

Abstract

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Number of views: 410

Exchange traded funds (ETFs) are known to be a highly attractive mean of investment in today’s financial markets. The present study is an attempt to explain the risk and return features of Indian ETFs and their trading and expense characteristics. The performance of ETFs is measured and compared with their underlying indices. It is found that they underperformed the indices, the reasons being they load their investors with extra risk than their underlying indices. Further, it is found that tracking error is having a positive relationship with expenses and risk of ETFs. Interestingly, the average number of trades and the lagged return of previous day do not affect the volume of shares. The study uses daily closing prices, intraday high and low prices and the volume of the traded shares of 10 ETFs listed on the National Stock Exchang for the period 1st July, 2010 to 30th June, 2015. The non-included ETFs suffer from the restrictions of non-availability of historical prices for at least five years

81-97
The Linkage between China’s Foreign Direct Investment and Ghana’s Building and Construction Sector Performance

Authors: Kwasi BOAKYE-GYASI , Yao LI

Abstract

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Number of views: 403

Over the years, China has contributed immensely to the development process of Ghana through foreign direct investments; providing financial aids’ improved management training skills, and the transfer of innovation and technological techniques. This research examines the relationship between China’s foreign direct investment and Ghana’s building and construction sector performance. By using a robust regression model, the results show that China’s FDI in Ghana’s building and construction sector has significant positive effect on the economic growth of Ghana due to strong increase in investors’ confidence in the Ghanaian economy. Thus, FDI contributes to economic growth when there is an improvement of the infrastructure and operational skills of the local building and construction companies. This will lead to the increase of revenue for citizens who are employed in this sector and thus leading to the overall economic development of the country

99-112
Government Debt Reduction in the USA and Greece: A Comparative VECM Analysis

Authors: Gisele MAH , Itumeleng P. MONGALE , Janine MUKUDDEM-PETERSEN*

Abstract

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Number of views: 419

The purpose of this paper is to estimate comparative debt reduction models for the USA and Greece using Vector Error Correction Model analysis and Granger causality test. The study provides an empirical framework that could assist in policy formulation for countries with high debt rates as well as those experiencing debt crises. The US model revealed a negative and significant relationship between general government debt and inflation as well as negative significance with primary balance. In Greece, the relationship between general government debts with primary balance is found to be positive and significant while negative and significant with net transfer from abroad. Granger causality is from general government debts to inflation in the USA and from primary balance to general government debts in Greece.

113-134
Stochastic Convergence in Per Capita Carbon Dioxide (CO2) Emissions: Evidence from OECD Countries

Authors: Burcu OZCAN , Esma GULTEKIN

Abstract

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Number of views: 402

This study analyzes the validity of stochastic convergence hypothesis in relative per capita CO2 emissions in OECD (Organization for Economic Cooperation and Development) countries for the period 1960-2013. In other words, it is aimed to reveal the nature of shocks to relative per capita CO2 emissions. As such, divergence holds if shocks are permanent, whereas convergence holds if shocks are temporary. To that aim, the two-break LM (Lagrange multiplier) and three-step RALS-LM (residual augmented least squares Lagrange multiplier) unit root tests are employed. The results mostly provide evidence of convergence in case of two breaks. However, when structural breaks are not taken into consideration, divergence gains empirical validity. From the viewpoint of government policy, these results indicate that energy usage or environmental protection policies of OECD countries have not long-run impacts on the relative per capita emissions series of the sample countries. Concerning the break dates, the first breaks mostly cumulated around the two energy crises period, whereas the second breaks generally occurred in the 1990s.

135-152
Export Performance and Economic Growth in East Asian Economies – Application of Cointegration and Vector Error Correction Model

Authors: Neena MALHOTRA , Deepika KUMARI

Abstract

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Number of views: 483

East Asian Economies are considered to be most successful economies in the world. Following the footsteps of other East Asian economies such as Japan and South Korea, China also shifted towards export-led growth strategy in 80s. This study analyzes the effect of export performance on economic growth of three major East Asian economies i.e. Japan, South Korea, and China. This study has conducted the econometric analysis of macro data under multivariate framework for the period 1980-2012. In order to examine the causal relationship between exports and economic growth, the study has applied time series techniques such as Augmented Dickey-Fuller (ADF) and PhillipsPerron (PP) unit root tests to check stationarity of variables, Johansen cointegration test for long run relationship, vector error correction model (VECM) for short run dynamics and for estimating speed of adjustment towards long run equilibrium. The analysis also made use of techniques Impulse Response Function (IRF) and Variance Decomposition Analysis (VDA) to investigate the interrelationships within the system. The estimated results suggested that all variables were cointegrated for East Asian economies. The study concluded that export-led growth (ELG) was only long run phenomenon in China and South Korea. The results for Japan supported growth led exports (GLE) particularly for short run.