European Journal of Economics, Finance and Administrative Sciences

Issue 62
January, 2014

Examining the Role of Skills and Peer Pressure in Online Shopping in Jordan
Aziz Madi

This research taking a well-targeted sample, is trying to explore some factors that affect internet shopping, like lingual skills, skills of using the internet, attitude towards the internet, attitude towards online shopping, involvement and peer pressure. This research is not following the TAM trend, and trying to shed the light on some other factors that might be important also to consider, and also to add to the variety of perspectives that an important topic such as online shopping should be researched from. The data were collected using 100 well-structured and self-administrated questionnaires, distributed to students at the University of Science and technology in Jordan. However, the results –using regression analysis and factor analysis- show that lingual skills are related to attitude towards the internet, while internet usage skills are related to attitude towards shopping online, although peer pressure seems to be effective on both attitude towards the internet and attitude towards online shopping, involvement in the internet were relatively high for both buyers and non-buyers on the internet, also internet usage purposes were investigated, and some were correlated significantly, also it was differentiated between free and non-free access to the internet (whether at home or at university), purposes of usage were also related to place of usage. Implications for web selling companies, Recommendations and future research are also provided.
Keywords: Internet, Online shopping, Lingual skills, Usage skills, Attitude towards internet, Attitude towards online shopping, Involvement, Arab users, Purpose to use the internet.

Oil and GCC Stock Market Returns – An Analysis of Cointegration and Causality
S.N. Sarma

As a result of high oil prices, GCC Countries have developed in to hubs of global economic growth. With their dominating role in the world energy markets and also with their substantial financial inflows they have become important international investors and trade partners. There were many financial and regulatory reform initiatives made by these countries as a part of gelling with the globalization process taking place across the world. The expected outcome of these initiatives is some degree of market integration. This study is an attempt to investigate into the presence or otherwise of the long-run and short-run causality amongst the GCC markets and also to examine the extent of such relationships between these markets and the oil market. The latter objective is more relevant for these markets are overwhelmingly influenced by the oil revenues to the country. It is interesting to find that GCC markets have neither long-run nor short-run causality with Oil market. Even amongst the GCC markets, only Qatar is having a long-run causality from the other GCC markets. Saudi market has a short-run causality on all the GCC markets. The result indicates good scope for portfolio diversification across these markets and also highlights the need for further positive initiatives in terms of institutional and regulatory environments of GCC markets.
Keywords: GCC Markets, Causality, Cointegration.
JEL Classification Codes: N25/C59.

The Relationship between Risk and Regulatory Capital in the MENA Region
Ahlem Selma Messai and Fathi Jouini

The multiplication of crises in recent years explains the revising and the evolution of banking regulations. Following the 2008 crisis, banks in many advanced and emerging countries have tried to increase their capital and reduce their exposure to risk. Our study demonstrates the relationship between risk and capital for a sample of 89 banks belonging to the MENA region for a period from 2004 to 2011. Using the simultaneous equation model, we found that the relationship between capital and risk-taking by banks is negative and regulatory pressures push credit institutions to increase their levels of risk and capital levels.
Keywords: Capital ratio, non-performing loans, regulatory pressure.

The Corporate Governance and Stock Market Liquidity: the Case of Canadian Companies
Fathi Jouini and Mehdi Bouras

This study seeks to identify the relationship between the stock market liquidity and corporate governance score for 108 non-financial Canadian companies listed on the Toronto Stock Exchange for the period from 2009 to 2011. Our corporate governance score is calculated by Globe and Mail. To check the strength of this relationship we used sub-indices on board composition, ownership, compensation, shareholder rights and for disclosure. Our results demonstrate the presence of a positive relationship between liquidity and corporate governance.
Keywords: Governance Index, Stock Market Liquidity, Information Asymmetry.

Shareholder Wealth Implications of Bank Merger Announcements in India
T. Senthil Kumar and V. Srividya

This study was conceived to analyse the effect of select merger announcements on shareholder returns of acquiring and acquired banks in India. Four private bank mergers were considered for this study. All the selected mergers are bank-to-bank mergers. Event study analysis was done to evaluate the impact of merger announcement on shareholder returns of the acquiring and acquired banks. The first date of public announcement of merger was considered as the event date or ‘day zero’ for the event study. Overall, the stock markets seem to have reacted adversely for both acquiring and acquired banks. On a comparative note, the loss appears to be steep in case of acquired banks and the loss appears to be less pronounced in case of acquiring banks. However, in both cases the losses appear to reduce over time indicating the resilience of concerned banks stocks. The private sector banks in India appear to have pursued inorganic growth for their survival and development. However, conflict of interest between shareholders and managements would deplete the shareholder wealth. That being the case, bank managements would have to tread the merger route with caution considering the notion of shareholder wealth maximisation.
Keywords: Banking, Mergers and Acquisitions, Shareholder Returns, Event Study.

Selected Practical Issues in the Enforcement of Prudential Bank Supervision in Developing Countries
Giseok Nam

One of the critical issues encountered in the implementation of bank supervision is the principal-agent problem. Even in many industrialized countries like the United States where adequate banking rules and legal frameworks are firmly put in place, the issue is serious enough and satisfactory solutions to many of its problems are yet to be found. Undoubtedly the issue becomes much more intractable in developing countries with weaker legal and institutional underpinnings for the financial system.
Keywords: Principal-Agent Problem, Bank Supervision, Developing Country.
JEL Classification Codes: G21, G28

New Product Development Process Management and Benchmarkig with Competitors with Special Reference to Catepillar 40/50T Off-Highway Trucksin India
Saravanan. G and P. Vikkraman

One of the Principal determinants of business success is technological innovation. New product development is one of the most important components of product policy and product management. A progressive firm has to consider new product development as a cardinal element of its product policy. A business firm has to respond to these dynamic requirements of its clientele and these responses take the shape of new products and new services. Through such a response, the firm reaps a good deal of benefits. New Product Development is the process adopted by organizations worldwide to develop products and services for customers. Organization employees, suppliers, dealers and customers are involved throughout the process. Based on the Caterpillar New Product Development Framework and Competitive Benchmarking, the research objectives of the study are confined to evaluate the adherence of process steps in each of the phases of New Product Development framework ; to plan and build prototype and pilots of the new model of trucks and evaluate the performance of the trucks and to carry out Production Studies of the new model of trucks with the competitor machines and generate Production Study data to substantiate the advantages of the new trucks over the competitors. The results of this study determines how systematic adherence of New Product Development process at Caterpillar for the introduction of 40/50 ton rear dump trucks has paved way for the successful production launch of its products and how Caterpillar 40/50T products were subjected to competitive benchmarking with similar class products of competitors and emerged superior over competitors with regard to product performance and reliability. This study is related to the adherence of the New Production Introduction process and the results of the production studies to place the new product in the market. It is based on predetermined objectives and methodology. In the process of study, the objectives are pre-determined. The methodology has been designed to fulfill the purpose of the study.
Keywords: Competitive Benchmarking, New Product Development, Production Study, Product Launch.

Factors Influencing Supermarket Choice

Swamy and Nedunchezhian

The main purpose of this study is to find out the factors influencing the customers in their supermarket choice. The other objectives are to find out the customers’ perception about the performance of the selected supermarket chains and their preference for them. Descriptive Research Design and survey method were used for this study. The study was conducted in Coimbatore city in India and the respondents were the shoppers of the selected supermarket chains. The sampling method used was non-probability convenience sampling and the sample size was 450. This study has shown the top ten factors influencing the customers in their supermarket choice. Customers’ perception about the performance of the selected supermarket chains and their preference for them are the other findings. Providing the factors identified in this study to the expected levels of the customers would result in more customer satisfaction and loyalty, which in turn would lead to more market share and customers’ wallet share. The findings of this study would help managers of modern supermarket chains in devising appropriate marketing strategies.
Keywords: Supermarket choice criteria, Store choice, Store perception, Shopping behaviour, Food and grocery retailing.

Significance and Implications of First Year ESL Engineering Students to Select Appropriate Reading Strategies to Respond different Text Structures
A.K. Nalina and K Brindha

The surveillance of numerous reading strategy studies is recurrently affirming the unchanged practices and results of reading performance of the ESL university students. This has been a greatest challenge for the teachers of college to improve their reading process in connection with their expository text structure awareness. The systematic reading of science expository text demands the understanding of text structures and the ways in which the different text type has to be processed for reading and reproducing. Thus the teaching of different structures of expository text processing plays an important role in improving their reading performance. Hence this paper identifies and reports the change in the explicit teaching of expository texts to ESL readers and further measures the frequencies of using different strategies to different text structures.
Keywords: Xpository Text Structures, Reading Strategies, ESL readers.

Global Financial Crisis and Indian Capital Market:An Empirical Study on the Efficiency
S. Sabarinathan and D. Muruganandam

In this study we investigate whether the recent global financial crisis has affected the efficiency of the Indian Capital market. This study examines the extensive empirical study using efficient market hypothesis approach. The SENSEX index of Bombay Stock Exchange and NIFTY index of National Stock exchange are analysed in the three different periods viz., pre-financial crisis (1st Jan 2004 to 31st Dec 2007), financial crisis (1st Jan 2008 to 31st Dec 2010) and post-financial crisis period (1st Jan 2011 to 31st Dec 2012). The methods used in statistical approach are: descriptive statistics return analysis, Kolmogorov-Smirnov goodness of fit test, runs test and serial correlation tests. The period of analysis covers 9 years of monthly data, which is divided into three periods of pre, in and post-crisis period. Logical intuition suggests that markets are less efficient in pre crisis period, and rather more stable and better structured in their functioning. According to the past empirical research the markets are not entirely efficient in any period of time. The study enables the Indian stock market are more information efficient in the context of financial crisis. The first period 2004-2007 of analysis reflects average movements in stock indexes, where equity markets do shows average performance. The stock markets both Sensex and Nifty shows high growth rate. The second sub-period 2008-2010 indicates how stock markets are affected by financial crisis and how their indexes shows the high volatility. The third period of study shows how the markets recovering over the past 3 years. Non-parametric runs test indicates significant serial dependence in the stock markets during the period of 2010-12. The returns of all the indices which are examined in this study can be predicted by the Investors by using the historical information of the market. The reason being that indexes of these markets do follow certain pattern. The overall findings in this study suggest that during the observation period, both of markets provide evidences to the research’s hypothesis. The randomness behavior and significant result on correlation value have confirmed the weak form market efficiency. All of them conclude that during the period of 2004-2012, The Weak Form Efficient Market Hypothesis does exist in Stock Markets.
Keywords: SENSEX, NIFTY, Financial crisis, Efficiency, Random walk theory.
JEL Classification Code: G1

A Multi-Criteria Decision Analysis Framework for Prioritizing Investments Evaluation in Banking Sector: An Application on Asean Market
Giuseppe Galloppo, Luigi Mundula and Daniele Previati

The purpose of the present study is the development of classification model taking into account a set of different criteria that could be used in the evaluation of strategic investment alternatives in the banking sector. The model takes into account the main criteria required to enrich the quality of a company's information system. The global financial crisis has exacerbated the problem of seeking new markets for financial intermediaries as well as competition between them. The same crisis has also highlighted the problem of limiting errors in the strategic decisions for the development of each banking institution new business. The planning and appraisal of a new business projects involve rather complex tasks. Multi-criteria methods provide a flexible tool that is able to handle and bring together a wide range of variables appraised in different ways and thus offer valid assistance in supporting financial economic decision processes. Unfortunately a great number of determinants can create problems with the evaluation. Thus it is necessary to select a limited number of important indicators. In this paper we build a synthetic index, starting from a selection of a set of indicators, and weighting them via linear and non linear multivariate analysis. We use a sample of 42 criteria, extracted from World Bank, that includes indicators of the macroeconomic, institutional and regulatory environment, for all Asean countries, during 1995-2011, as well as basic characteristics of the banking and financial sector. Our ABA (Attractiveness of Banking activity) Index could be an useful tool in financial business opportunities evaluations.
Keywords: Multicriteria decision making, Comparison, Classification, Banking sector, Investment decisions.
JEL Classification Numbers: F21, F23, G21

Buying Behaviour of Consumers towards White Goods - A Comparative Study among Rural, Semi Urban and Urban Consumers
K.T. Kalaiselvi and D.Muruganandam

In India, after liberalization the country has been witnessing an impressive change, particularly in white goods industry the market has transformed from a predominantly sellers market to buyers market. In this emerging scenario, it is important to understand how consumers’ make their buying decisions. The main purpose of this study is to assess the buying behaviour of consumers towards selected white goods and to compare the behaviour between rural, semi urban and urban consumers. The aspects of buying behaviour assessed were choice of brand, source of information, factors affecting buying decision and satisfaction level about the products’ performance and after sales service. A sample of 354 households located in rural, semi urban and urban areas of Erode District, Tamilnadu have been selected for the study using non-probability convenient sampling method. The researchers have collected the data through interview schedule. The major findings are: brand name was the major influencing factor for both rural and urban purchases. Most of the rural respondents own the products of LG brand and in majority of the urban homes the brand possessed was Whirlpool. Samsung had a fine reach in semi urban area. Differences in opinion about satisfaction took place based on residential area towards the products’ performance and after sales service.
Keywords: Buying behaviour, rural, urban, semi urban, white goods, consumer, service.
JEL Classification Codes: M31, M11.

Russia’s Economic Structure and its Value in the Long-Term Sustainable Economic Development
Elena Kuzmenko, Karel Malec, Mansoor Maitah and Jirí Mach

The article examines the Russia's structural change and economic dynamics over the last 10 years, denotes the critical issues of the value of the Russia’s economy structure in the light of its long-term sustainable economic development. Through a comparative statistical analysis of the Russian economy structure by nominal value-added, non-oil countries close to Russia in GDP (PPP) per capita and several developed (raw-material-exporting in the past) countries, specific features and singularities of Russia’s economic dynamics were identified. Contemporaneously on the bases of the analytical overview of the most recent researches in this field, made by Russian and foreign economists, and synthesis of theoretical and empirical materials, the main directions and possible mechanisms of further economic development in Russia, taking into account existing impeding factors, were formulated.
Keywords: Russia’s economic structure, GDP, economic development, WIOD, natural resources.

Identifying the Characteristics of the Iranian Entrepreneurial Society
Saeed Jafari Moghadam and Ali Akbar Farjadian

Entrepreneurship is known to be one of the modern development solutions of societies. Through different definitions of entrepreneurship, innovation and utilization of that is emphasized. As entrepreneurship is known as the engine of economic development, knowledge is the heart of that. Recent years, researchers provided a new concept as “entrepreneurial society”, where entrepreneurship is turning point of economic growth and continuity of job creation and also competitiveness in global market exists in that society. This research is conducted to identify dimensions, indexes and parameters of the Iranian entrepreneurial society. For this purpose, literature review and Delphi method are used. A questionnaire was made out of Delphi results and was used to ask again about entrepreneurial society. Finally characteristics of the Iranian entrepreneurial society were identified in four dimensions, twelve indexes and seventy seven parameters. The most important dimension which should be prioritized is Technological one. Others include the sociocultural, economic and legal, which were categorized according to Friedman test.
Keywords: Entrepreneurial society, entrepreneurship, economic development, dimensions of entrepreneurial society.

Listening to Learn and Learning Language through Listening
Deepa Caroline Devaraj and K. Brindha

Mastering a language which is not one’s mother tongue is exigent in all aspects. In the present scenario mastering English is an indispensable skill to be a globally acknowledged professional. Though various methodologies are proposed by many educationists, some way or the other there are some pitfalls the learners as well as the facilitators face while implementing. Some of the pitfalls are due to the varied culture, the resources and the medium through which it is taught. When language proficiency is taken into account, listening plays a vital role. It is easier as well as effective when the language skill is taught through this essential skill so that the other skills of language like Reading, Speaking and Writing are also improved simultaneously. So a methodology based on the listening skill will make the learning process effective for the learners. This methodology named as Listening to Learn (Lto L) will comprise of listening clippings of both audio and video types and a list of exercises based on the clippings according to the needs of the learners. Though this seems to be simple the exercises and the way it is conducted makes the difference. This paper depicts the procedure of this methodology and tabulates the results obtained after it was tested with the first year engineering students.
Keywords: Listening to Learn, Language Acquisition, Listening Skills, Language Learning.