Current Issue : July - September Volume : 2014 Issue Number : 3 Articles : 6 Articles
Credit rating agencies and corporate lifecycles\r\nhave been a subject of interest for practitioners and\r\nacademics during the recent period of worldwide\r\neconomic and debt crises. In this article, we examine what\r\ncorporate lifespan the credit rating agencies predict. We\r\nemploy the reliability theory commonly used in\r\nengineering and solve a Markov model based on the\r\ncredit rating transition matrices issued by the Standard &\r\nPoor�s rating agency. The results show that every\r\ncompany will eventually default in the long-term.\r\nHowever, the mean time to default differs according to\r\nthe initial conditions of the model, which are represented\r\nby the initial credit rating. We considered a company as\r\nhaving initial speculative grades of B and CCC/C and\r\ncalculated the mean time to default and the time after\r\nwhich the business can be considered safe, with a\r\nprobability of only 50%. We also determined the\r\nprobabilities of the individual rating grades. We suggest\r\nassessing corporate business cycles in probabilistic terms,\r\ntaking into account all possible states and initial\r\nconditions....
This paper investigates the impact that human\r\ncapital, information and communication technology (ICT)\r\nand foreign direct investment (FDI) have on GDP. Crosssectional\r\ndata from a set of 20 OECD and 24 non-OECD\r\ncountries in 2007 are analysed employing data\r\nenvelopment analysis (DEA) and classification and\r\nregression tree (CART) techniques. The paper illustrates\r\nthat the level and quality of access to ICT infrastructures\r\nplays an important role in determining a country�s level\r\nof technical efficiency. The paper also indicates the\r\npresence of a catch-up process, led by technological\r\ninnovation, on the part of emerging countries....
Intellectual Capital (IC) has become a prominent feature of business transactions and discourse. The rising\r\ninterests in IC and Intellectual Capital Disclosure (ICD) issues in both developed and developing countries have\r\nnecessitated insightful studies. This study explores ICD in Ghana and seeks to contribute to fill the dearth in the\r\nliterature on ICD from the perspective of developing countries. The study examines the ICD of 25 companies listed\r\non the Ghana Stock Exchange (GSE) over a five-year period (2006-2010) through content analysis of their corporate\r\nannual reports. The study revealed that the ICD level in annual reports in Ghana is quite high and descriptively\r\nreported and though disclosure of IC is improving but at a relatively marginal rate. Therefore looking at the trend of\r\nICDs by the companies, the study recommends the need for accounting regulatory bodies and oversight agencies\r\n(local and global) to develop specific standards or guidelines on identifying, measuring and reporting IC. This paper\r\nis one of the few studies to have investigated the disclosure of IC in corporate annual reports in Ghana....
In this paper, we present the impact of leadership and change\r\nmanagement strategy on organizational culture. At first, we present the\r\nnotion of culture. There are many attempts to describe ââ?¬Å?organizational\r\ncultureââ?¬Â, many of which are presented in this paper. After an assessment of\r\norganizational culture, the role of leader is pinpointed. We favor the view\r\nthat strategic leadership needs to be transformational if it is to serve the\r\norganization. Afterwards, the notion of change is focused on. Changing a\r\nculture is a large-scale undertaking and all of the organizational tools for\r\nchanging minds will need to be put in play. To change or to manage\r\ncorporate culture one has to be able to define and therefore pinpoint exactly\r\nwhat it is one is trying to change. The evidence in this study suggests that\r\nleadership is associated with organizational culture, primarily through the\r\nprocesses of articulating a vision and to a lesser extent through the setting of\r\nexpectations. The nature of this paper is explorative and theoretical, aiming\r\nat providing a bibliographical tool for further research. Thus, aim of this\r\npaper is a critical bibliographical review of important terms in the field, as\r\nwell as showing the interdependencies of these terms. Finally, with that\r\npaper, we offer managers and researchers a model on emphasizing the\r\nimportance of Management Strategy....
Studies on the role of remittances received on the recipient country�s\r\nfinancial development have given mixed results. The most notable empirical\r\nstudies try to assess this relation for a group of countries using panel data. In\r\nthis study we concentrate on the relation between these two variables for the\r\npost-communist Albania using annual time series data provided by the World\r\nBank. The multiple regression model developed is estimated using the\r\nARDL bounds testing approach which is highly recommended when the\r\nsample size is small. Results indicate a significant positive role of\r\nremittances in the country�s financial development. In particular, a 10%\r\nincrease in remittances is associated with approximately a 11.78% increase\r\nin the financial development. Other financial development enhancing\r\nvariables are trade openness and the sum of foreign direct investment and\r\nofficial development assistance, although with a smaller impact....
This study examines whether earnings surprise management is related to the time-series property of historical\r\nearnings series (i.e., earnings persistence). The findings from my analysis indicate that firms with a higher level of\r\nearnings persistence are less likely to manipulate the earnings surprise to achieve meeting or beating earnings\r\nexpectations (MBE) than firms with a lower level of earnings persistence. Further, I find that, while the market discounts\r\nthe managed earnings surprise, it is less likely for firms with higher earnings persistence. This suggests that\r\nthe capital market understands the role of earnings persistence in mitigating the manager�s incentive for managing\r\nthe earnings surprise to attain MBE....
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