European Journal of Economics, Finance and Administrative Sciences

Issue 66
June, 2014

Market Informational Efficiency of Tunisian Stock Market: The Contribution of Shannon Entropy
Imen Mahmoud, Saber Sebai, Kamel Naoui and Hatem Jemmali

The aim of this paper is to examine current evolution of information efficiency of the Tunindex over the Tunisian financial market. The conducted empirical study uses a new technique borrowed from physical statistics suggested by Shannon (1948) 1. We also used the symbolic time series analysis to detect dynamics of the processes under investigation. A logit model is applied to study the relationship between efficiency and probability of having a crisis. To this end, we used a sample that covers the January 1998 to July 2012 period. The obtained results point to the presence of inefficient periods (2008, 2011). This result points also to the presence of a negative correlation between a crisis and a stock market’s inefficiency.
Keywords: Information Efficiency, Shannon Entropy Logit Model, Financial Crashes.

Exploring the Major Problem Faced by the Powerloom Enterprises Related to the Business Ecosystem Revealed with Henry Garrett Ranking Technique
S. Sudha and M. G. Sarvanaraj

The Indian textile industry is one of the largest in the world with a massive raw material for textiles industry. Indian economy is highly depending on the textile manufacturing and trade in addition to other major industries. About 27% of the foreign exchange earnings are on account of export of textiles and clothing. The textiles sector contributes about 14% to the industrial production and 3% to the gross domestic product of the country. Around 8% of the total excise revenue collection is contributed by the textile industry. The textile industry creates 21% of the total employment generated in the economy. People are directly employed in the textile manufacturing activities and Indirect employment including the manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million.

MSME Financing in India – An Overview
Saravanakumar and T. Maharaja

Small and medium sectors are crucial to the economic and social development of Indian economy. They play a major role in creating jobs and generating income for low income people. Financial services are vital in developing a vibrant MSME’s sector. However access to financial services to this sector remains severely constrained. Lack of access to financing is consistently cited by MSME's as one of the barrier to growth. The extent of financial exclusion in MSMEs is high and notwithstanding the increase in credit outstanding in recent years, access to adequate and timely credit from the banking system is still a critical problem being faced by this sector. Alternative sources of finance can, therefore, step in and assist MSMEs in their growth and development. In recent years, a plethora of alternative finance options have emerged and have proven to be an important source of financing for Indian MSMEs. The alternative financing avenues discussed above truly have the potential to bridge the financing gap for MSMEs from banks. Access to finance is essential for improving MSMEs competitiveness, as MSMEs have to invest in new technologies, skills and innovation. On their part, the MSMEs should be responsible borrowers, should use the above finance in a judicious manner and take advantage of the business opportunities both within and outside the country. They should improve their governance and risk management practices, maintain proper books of accounts, submit correct information to banks and all authorities, and make their operations more efficient and productive to get easier access to finance from banks and other investors. This way the MSME sector would become more competitive and efficient and contribution further to the economic development of our country.
Keywords: MSME, Off Balance Sheet Exposure, Adjusted Net Bank Credit, financial services, and venture capital.

The Relationship between Organizational Climate and Organizational Agility
Mohammad Hakkak, Ahmad Ghobadi Alvar and Masoud Ghodsi

The aim of the present study was to explore the relationship between organizational climate and organizational agility. To do so, a case study was used to examine the variables in question. The population under study included all employees working in the Transportation Department of Eastern Azerbaijan Province, Iran, of whom 80 employees were selected as the participants in the research sample. Organizational Agility Questionnaire was used to measure the components of agility such as responsiveness, competency, flexibility, and quickness. Besides, Organizational Climate Questionnaire (Litwin& Stringer, 1968) was used to measure the organizational climate dimensions such as responsibility, structure, reward, warmth, support, risk taking, conflict, and standards. Covariance-based structural equation modeling was also used to test the research hypothesis the showed a positive relationship between organizational climate and organizational agility.
Keywords: Organizational climate, Organizational agility, Relationship.

Unilateral Withdrawal from International Trade Treaty in the Indonesian Law

In order to improve national economic development, the Indonesian government passed Law number 7/2014 regarding trade. Article 85 of this law stipulated that Indonesia may withdraw from ratified international trade treaty based on national interest deliberation. The problem statements in this article is whether such unilateral withdrawal base on national interests consideration as stipulated in article 85 of Law number 7/2004 can obtain justification under The 1969 Vienna Convention on The Law of Treaties (VCLT). The research done by the author conclude that the formulation of article 85 which regulates on unilateral withdrawal over international trade treaty can be justified if the ratified international trade treaty provide the exit clause. If the ratified treaty does not insert exit clause, national interest consideration can be used only if accordance with article 46 and 62 VCLT.
Keywords: National interest, Unilateral withdrawal, Trade treaty.

Review of Islamic (Participation) Banking in Turkey
Cengiz Erol, Seref Turen and Dilara Kilinç

In Turkey, and in the world, there has been a customer group that shows sensibility to interest because of religious affiliations, and in this account, the funds those were not invested in conventional banks were remaining inactive. This condition constituted a loss for both the general economy and the savers. In order to bring in these funds to the economy and to provide fund transfer from the Middle East to Turkey, vital steps were taken in Turkey for the establishment of the institutions those furnish interest free services based on these purposes in 1980’s. As a result of this, interest free financial system in Turkey commenced to take place. The goal of this study is to connote the central cores of Participatory Banking in Turkey, the development of these banks within years.
Keywords: Islamic Banking, Participation Banking, Turkey.

Value Relevance and Environmental Contingencies: Evidences from Brazilian Market
Denize Demarche Minatti Ferreira, José Alonso Borba, Suliani Rover and Fernando Dal-Ri Murcia

The perception from the organizations that the environmental problems may have negative interference and these influences the stock markets have been crucial for them to adapt to concepts that esteem the environment and to minimally sustainable standards. This article analyzed the value relevance of the possible and remote environmental provisions provided by Brazilian companies and considered as off–balance sheet. The sample consists of 61 companies listed on the BM&FBOVESPA that exert potentially polluting activities. Were analyzed Reference Form, Notes to Financial Statements of the years 2010, 2011 and 2012. To test if the relationship among the available accounting information influences the stock price, it was used the evaluation model based on Ohlson. On the total of 61 companies, 21% have a high degree of potentially polluting activities and 79% exert medium degree activities. Among these, 48 companies ranked medium degree showed in 3 years around R$20 billion related to environmental contingencies, while 13 of high degree disclosed approximately R$60 billion. It was verified that the market prices the highlighted information regardless of its recognition in the balance sheet, once the coefficients of the net equity variables with and without adjustment of the environmental provisions are statistically significant at 5%.
Keywords: Value Relevance, Environmental Contingencies, Brazil.

A Study on Customer Satisfaction Towards Bharti Axa Life Insurance during the Financial Year 2010-2011 in Salem Region

J. Shanmuganathan and A. Somu

Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. The main aim of this article is to “A Study on Customer Satisfaction towards Bharti Axa Life Insurance Company during the financial year 2010-2011 in Salem region”. Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business groups with interests in telecom, agricultural business and retail, and AXA, world leader in financial protection and wealth management. For Purchase study data have been collected through primary survey. Questionnaire the sample size of the 120 expected, where collected acquiring to the systematically of the research percentage analysis and the chi-square test, have used for the percentage analysis interpretation per made based on the finding, and conclusion.
Keywords: Customer, Market, Life Insurance & Customer Satisfaction.

Board of Directors' Characteristics and the Stock Return Evidence from Tehran Stock Exchange (TSE)
Reza Rajabi, Mahdi Mahdavikhou and Mohsen Khotanlou

This study aims at finding a relationship between the board of directors' characteristics and the stock return. The characteristics of the directors which are assumed as the independent variable in this study are of five factors; autonomy, number of members, financial knowledge, the number of meeting the board of directors held and the duality of the managing director's obligation has also been added to the list so that the stock return can be considered as the dependent variable. The research hypotheses are based on the existence of a direct relationship between the boards of director's characteristics and the stock return. The statistical sample of the research consists of 65 companies chosen from among the body of corporate companies listed in Tehran Stock Exchange (TSE) during the years of 2009 to 2013.The statistics used to test the hypotheses are t-test and ANOVA. The findings of the study show that the boards of directors have not performed their duties efficiently so as to increase the profitability of the agency. Thus they do not exert significant effects on the stock return of the companies.
Keywords: Board of Directors' Characteristics, Stock Return, Tehran Stock Exchange (TSE).

An Empirical Study on Factors Influencing Consumers towards Branded Television in Tamilnadu- India
Arokiaraj. K. A. and G. Chandrakumar

The Indian market for entertainment devices like television has been expanding in the last two decades. Several players are introducing not only several features to the existing products but also new products like LCD (Liquid Crystal Display) TV and Plasma TV to capture various segments of the market. Consumers now have a wide choice for the selection of televisions. It is imperative for every organization to identify the factors that influences consumers towards purchasing their products. This study explores the various factors that influence the consumers towards branded televisions. The study is a descriptive study. Primary data has been collected through structured questionnaires administered to consumers by survey method. Questionnaires were used to find out “factors that influences consumers towards branded television” in Chennai with the help of the questionnaire, filled by 500 consumers 125 each from 4 main areas in Chennai .Convenience Sampling was used to select the sample of the respondent’s. Using Statistical Package for Social Science (SPSS) some of the relevant tests like 1) Factor Analysis 2) Multiple Regression and 3) Reliability have been administered in the study. To check the reliability and validity of the data collected Cronbach’s alpha test was administered and the value of Cronbach’s alpha is 0.862. Based on the test result some of the relevant finding were derived that will be use full to find the factors that really influences consumers towards branded televisions. The manufactures can come out with suitable strategies to enhance their business.
Keywords: Brand, Consumer, Television, Social Status etc.