1 Introduction Strategies of many contemporary companies are almost entirely focused on consumers. These companies, with the use of, inter alia, surveys or focus groups, constantly put their consumers under a microscope, aiming to understand their behavior. This is, however, not a straightforward task. Typically, companies tend to look at satisfaction measures, market shares, or sales figures. According to research undertaken by Bain Company, there exists a certain body of consumers, who, despite providing scores indicating “satisfied” in surveys, soon move
Milka Elena Escalera Chávez and Cristóbal Hernández
References Altman, E. (1968). Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy. The Journal of Finance, 23: 589-609. DOI: 10.1111/j.1540-6261.1968.tb00843.x. Altman, E. (2013). Predicting financial distress of companies: Revisiting the Z score and zeta models.in Edward Elgar Publishing (eds) Handbook of Research Methods and Applications in Empirical Finance, 428-455.DOI:10.4337/9780857936097.00027 Argenti, J. (1976). Corporate planning and Corporate Collapse. Long Range Planning
Samuel Ampaw, Edward Nketiah-Amponsah and Bernardin Senadza
-40. Barrett, C., Reardon, T., & Webb, P. (2001). Nonfarm income divesification and household livelihood strategies in rural Africa: Concepts, dynamics and policy implication. Food Policy, 26(4), 315-331. Becker, S. O., & Caliendo, M. (2007). Sensitivity analysis for average treatment effects. The Stata Journal, 7(1), 71-83. Becker, S., & Ichino, A. (2002). Estimation of average treatment effects based on propensity scores. Stata Journal, 2(4), 358-377. Bezu, S., Barrett, C., & Holden, S. (2012). Does nonfarm economy offer
The aim of this paper is to evaluate fiscal policy performance level in Nordic countries of Europe by quantifying the gap between their performance and an optimum benchmark value. In this study it was selected Denmark, Finland, Sweden and Norway. These countries occupy the first places in the ranking of countries with the highest rate of tax burden in Europe. The first part of paper contains general aspects of fiscal performance in international research and an overview of the Nordic tax systems model. The second part of paper focuses on evaluation of tax policy performance in these countries by using OptimTax scoring analysis. The research is based on a multivariate analysis instrument that uses quantitative data on various aspects of tax policy. OptimTax achieves a score for assessing the degree of optimization of fiscal policy. The results reveal high levels of tax performance in Scandinavian countries and a trend that seems to be more constant than ascending, except Norway.
Qunfeng Liao and Seyed Mehdian
In this paper, we follow Anderson et al. (2009) and suggest a simple approach to employ a set of financial ratios as inputs to estimate an aggregate bankruptcy index (ABI). This index is a within sample measure, ranges between 0 and 1, and ranks the firms on the basis of their relative financial distress. ABI can be used to predict the propensity of financial failure and corporate bankruptcy. For the purpose of comparison and assessment of the robustness of this index, we estimate Z-score by multivariate discriminant analysis, using the same set of financial ratios to compare the predictive accuracy of two approaches.
We find that, to some extent, ABI can predict the bankruptcy of the firms more accurately than Z-score. The empirical results of the paper suggest that ABI has relatively robust predictive power and, therefore, can be applied together with other, based on parametric and non-parametric models to predict corporate bankruptcy.
Andrew Holt and Joseph McGarrity
References Dougherty, Chrys, Lynn Mellor, and Shuling Jian, (2006), The Relationship between Advanced Placement and College Graduation , 2005 AP Study Series, Report 1.” National Center for Educational Accountability,1-35. Jackson, C. Kirabo. (2008), Cash for Test Scores: The Impact of the Texas Advanced Placement Incentive Program , Education Next, Vol. 8, no. 4, 70-77. Jackson, C. Kirabo. (2010a), A Little Now for a Lot Later A Look at a Texas Advanced Placement Incentive Program , Journal of Human Resources. Vol. 45, no. 3, 591
In this paper we test whether inter-country variation in individuals’ tendency to conform, as measured by the Lie (social desirability) scale used in the Eysenck Personality Questionnaire, can explain differences in the propensity to employ corporate earnings management around the world. Such a link is feasible, given that survey data suggest executives tend to be under severe pressure to meet earnings benchmarks, to which they often succumb by engaging in earnings management (to the detriment of the company’s long-term prospects). We hypothesize that in countries where the propensity to act in a socially desirable (outsider-satisfying) way is stronger, earnings management should be more prevalent. Research results support our hypothesis, and demonstrate the existence of a positive relationship between the prevalence of earnings management in a country and the mean score of individuals from that country on the Eysenck Lie scale, which further evidences that capital market pressure is a significant determinant of earnings management.
Alin Marius Andries, Vasile Cocriş and Ioana Pleşcău
This paper examines the impact of monetary policy on bank risk-taking and the influence of the recent financial crisis on this relation. We use a dataset of 571 commercial banks from Eurozone and analyze the relation on the period from 1999 to 2011, with emphasize on the period 2008 to 2011. We use non-performing loans, loan loss provisions and Z-score as measures for bank risk-taking, while for monetary policy the proxies are short-term interest rates (computed using a Taylor rule) and long-term interest rates. We determine the relation between the two by taking into account some specific control variables and analyze it using an entity fixed-effects model and Generalized Method of Moments, alternatively. Empirical results point to a negative relation between interest rates and bank risk-taking. In addition to this, results show that the crisis has led to an additional negative impact on the relation between interest rates and bank risk-taking for the turmoil period 2008-2011.
Anil Kshatriya, Vijay Dharmadhikari, Deepak Srivastava and P.C. Basak
This paper focuses on implementation, monitoring, and application of balanced scorecard (BSC) techniques in an organization involved in providing machine tool solutions to the industrial sector. The growth of the company considered in real time constituted improvements of both top and bottom lines. In the industry under consideration, it was observed that in our company, the top line was steadily growing but not the bottom line. This is when we started getting down to brass tacks and strategically focusing on growth in overall profits of the company. This included growing revenues by improving of EBITDA (earnings before interests, taxes, depreciation, and amortization) and by increasing efficiency (i.e., cutting costs). These improvements were implemented by chalking out a comprehensive BSC designed to suit the machine tool industry. The four perspectives of the management, namely, internal business process, organizational learning, financial perspective, and customer perspective, have been considered lucidly and enunciate the parameters that affect the BSC very aptly. The BSC designed considered 9 objectives and 27 relative measures of these factors to quantify the various quantitative and qualitative dimensions that affect the company’s performance. A Balanced Lean Index (BL Score) was used to measure the results for company X.
Mohammad Saiful Islam, Sharmin Akter Eva and Mohammad Zahed Hossain
The purpose of the study is to identify the main reasons of money laundering in Bangladesh among the twenty seven predicate offences of money laundering prescribed by Bangladesh Bank and position of Bangladesh among South Asian Countries regarding anti-money laundering practices. Besides, an anti-money laundering model has been developed to combat against money laundering as 14 percent bankers think that only existing know your customer form and transaction profile of banking sector are not enough to detect money laundering. To conduct the study, 91 bankers have been surveyed to take response through structured questionnaire regarding their opinion about the predicate offences of money laundering and sufficiency of existing KYC form of banking sector to detect money laundering. From the responses, factor analysis, test of hypothesis, correlation and regression analysis have been conducted using SPSS software. The study identifies that predicate offences of money laundering can be minimized mainly through scrutinizing the activities of local criminals with foreign network and strict anti-corruption measures through automation in National Board of Revenue, strict policy adoption of criminal detection and support from foreign experts. Besides, regression model shows that only six predicate offences of money laundering explains 87.2 percent of money laundering that should get more emphasize to combat against money laundering. From the comparative analysis, it has been found that Bangladesh in holding better position just after India among six South Asian Countries according to Basel AML Index score. This study provides a complete understanding of the position of Bangladesh in case of money laundering and anti-money laundering practices. The integration of four domains, i.e. AML model development, factor analysis, econometric analysis and comparative analysis of AML index will provide insights to managers and policy makers about the money laundering scenario in Bangladesh.