Current Issue : July - September Volume : 2011 Issue Number : 3 Articles : 6 Articles
While several studies are conducted to identify drivers and inhibitors of Internet Banking (IB) adoption, little is known about the impact and the potential of offline corporate branding on the adoption of IB. Internet is broadly discussed as a mean of business differentiation and source of corporate branding. However it is still unclear whether the effects of the latter on consumer behavior have the same merit in the online banking context. The aim of this article is to clarify the relevancy of the corporate branding on customer behavior toward online banking. It reviews the previous results obtained until now by researchers and highlights some less explored avenues....
One of the most controversial issues in the aftermath of the Asian financial crisis has been the appropriate response of monetary policy to a sharp decline in the value of some currencies. In this paper, we empirically examine the effects on Asian exchange rates of sharply higher interest rates during the Asian financial crisis. Taking account of the currency contagion effect, our results indicate that sharply higher interest rates helped to support the exchange rates of South Korea, the Philippines, and Thailand. For Malaysia, no significant causal relation is found from the rate of interest to exchange rates, as the authorities in Malaysia did not actively adopt a high interest rate policy to defend the currency....
Many researchers have found relationships between a company�s financial performance and either corporate social responsibility (CSR) or intellectual capital. But this exploratory study investigates whether there is a relationship between intellectual capital and its components and corporate social responsibility disclosure. The method uses hypothesis testing of listed companies on the Indonesian Stock Exchange. The corporate social responsibility disclosure index is based on content analysis of a company�s annual report, whereas the Value Added Intellectual Coefficient (VAIC) for the fiscal year of 2007 is derived from financial information. The result shows that intellectual capital, in its aggregate value of the VAIC, does not have a significant relationship with corporate social responsibility disclosure. However, one of its components, capital employed efficiency, has a significant impact on CSR disclosure, while the other two, human capital efficiency and structural capital efficiency, have no significant impact. The results of the research could also infer that the perception of corporate social responsibility is still at a stage where companies conduct CSR on an ad-hoc basis rather than incorporating it into corporate strategy....
We study the stochastic dynamics of banking items such as assets, capital, liabilities and profit. A consideration of these items leads to the formulation of a maximization problem that involves endogenous variables such as depository consumption, the value of the bank's investment in loans, and provisions for loan losses as control variates. A solution to the aforementioned problem enables us to maximize the expected utility of discounted depository consumption over a random time interval, [t,t], and profit at terminal time t. Here, the term depository consumption refers to the consumption of the bank's profits by the taking and holding of deposits. In particular, we determine an analytic solution for the associated Hamilton-Jacobi-Bellman (HJB) equation in the case where the utility functions are either of power, logarithmic, or exponential type. Furthermore, we analyze certain aspects of the banking model and optimization against the regulatory backdrop offered by the latest banking regulation in the form of the Basel II capital accord. In keeping with the main theme of our contribution, we simulate the financial indices return on equity and return on assets that are two measures of bank profitability....
Financial inclusion (FI) by way of access to formal financial system is of critical importance for economic upliftment of the common man. With the objective of ensuring greater financial inclusion and increasing outreach of the banking sector, Reserve Bank, in January 2006 permitted banks to use intermediaries as Business Correspondents (BC) for providing financial and banking services.^ The BC model has the potential to speed up the process of financial inclusion and bring the vast majority of population within the banking fold. The process of financial inclusion involves the three critical aspects of (a) access to banking markets, (b) access to credit markets and (c) financial education. The BC model encompass each of the above three aspects & is able to address the issue of financial inclusion in a holistic manner. The benefits arising out of adopting the BC model and implementing the same with missionary zeal is to achieve the ultimate goal of financial inclusion. The BC model brings in the advantage of its outreach through its distribution network in unbanked areas to offer Banking services to the society. It caters to the banking needs of the most far-flung areas and remote locations in India. Business Correspondents are permitted to carry out transactions on behalf of the bank as agents, refer clients, pursue the customer’s proposal and facilitate the bank to carry out its transactions. BC model reduces customer acquisition costs by reducing burden of KYC. It facilitates condition for development of a credit bureau for the poor. BC model also augments governments policy to open ‘No Frills Accounts’ and to process Government payments (G2P) such as the National Rural Employment Guarantee Scheme, Pensions and other social payments. It also acts as a model for the Corporate Social Responsibility (CSR) activity. Hence the growth and the successes of the BC model is very vital for achieving financial inclusion in India....
Mr. Raju, Chairman of Satyam Computers Cheated the people and makes a huge money through false means, satyam was taken over by Mahindra and now is doing well after a downfall. Raju diverted Satyam funds to the companies headed by his sons, B. Teja Raju (Maytas Infra) and B. Rama Raju Jr Properties, to buy large tracts of land and win projects. He had chalked out a game plan to acquire the companies and in the process also reduce the alarming gap in Satyam’s accounts, between actual profit and the figure stated in the books, and keep the wealth within the family. Last December, Raju had proposed acquiring Maytas Infra and Maytas Properties, both run by his son, but gave up the idea after investors, the country’s largest information technology (IT) services companies admitted to years of falsified profits and an audacious financial fraud worth 1.5 billion dollars. Satyam lost over 125 clients, including big company like coke and caterpillar pulled out ,and its market cap sank by Rs.10,000 crore in one day alone....
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