https://www.cluteinstitute.com/ojs/index.php/JABR/issue/feed Journal of Applied Business Research (JABR) 2018-02-23T18:08:23-08:00 Stephanie Clute journals@cluteinstitute.com Open Journal Systems <p><strong>Published since 1985</strong><br>ISSN 0892-7626 (print), ISSN 2157-8834 (online)<br>The Journal of Applied Business Research (JABR) welcomes articles in all areas of applied business and economics research.</p> https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10087 Earnings Management To Sustain Consecutive Earnings Increases 2018-02-23T18:08:19-08:00 Kyunga Na journals@cluteinstitute.com <p>In this paper, I examine the pattern of earnings management undertaken by firms with a string of at least five-year consecutive earnings increases. Results indicate that discretionary accruals of those firms intensify as firms move towards the end of an earnings string while the extent of discretionary accruals declines sharply when the string ends.</p> 2018-01-01T00:00:00-08:00 Copyright (c) 2018 https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10088 Application Of Path-Goal Leadership Theory And Learning Theory In A Learning Organization 2018-02-23T18:08:21-08:00 Bayan Yousef Farhan journals@cluteinstitute.com <p>This paper used learning theory and path-goal theory to propose a learning leadership model.&nbsp; The practical side of these two theories is suitable for this proposed model, its agenda, and its tools for improving organizational learning.&nbsp; The model is based on the assumption that leaders need to develop their competences and the competences of subordinates by creating a continuous learning process through sharing, exchanging, and improving knowledge and experiences.&nbsp; The model states that learning leaders act as facilitators of the organizational learning process and adopt the right attitude to motivate subordinates for learning by removing obstacles and creating a learning culture.&nbsp;</p> 2017-12-29T11:11:16-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10089 Job Satisfaction: Are Corporate Social Responsibility Initiatives Beneficial And Do Different Governance Structures Matter? 2018-02-23T18:08:21-08:00 Alfred E. Seaman Journals@cluteinstitute.com John J. Williams journals@cluteinstitute.com <p>The non-financial benefits of Corporate Social Responsibility (CSR) initiatives remain an understudied controversy in the literature.&nbsp; We draw on elements of stakeholder theory to investigate the effect of multiple CSR initiatives on job satisfaction for a widespread set of medium-sized Canadian companies.&nbsp; We explore this relationship further by focusing on the moderating effects of governance control structures.&nbsp; Data on these variables is captured through the lens of CFO/controller perceptions because of their intimate governance gatekeeping over firms’ control structure/systems.&nbsp; In this respect, we assume that CFOs are among the instrumental drivers in advancing an organization’s unfolding social consciousness.&nbsp; Research findings in this study reveal the criticality of examining this linkage within the context of the performance-based versus conformance-based dimensions of an organization’s corporate governance control structure – two governance dimensions championed by the International Federation of Accountants (2009). &nbsp;Results for low/high levels of performance-based control structures manifest different interaction configurations of statistically significant CSR variables that heighten job satisfaction.&nbsp; However, significant interaction effects under low/high levels featuring compliance-based control structures are not forthcoming, despite the presence of significant main effects in the CSR/job satisfaction relationship.&nbsp; These findings offer firms a more comprehensive practical understanding of benefits associated with investments in particular CSR strategies while grooming specific control structures, as well as offering researchers new control variables to model in the CSR domain.&nbsp;</p> 2017-12-29T11:29:24-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10090 Does The Implementation Of ERP Improve The Quality Of Accounting Information? Evidence From Chinese A-Share Listed Manufacturing Firms 2018-02-23T18:08:21-08:00 Peiyu Ou journals@cluteinstitute.com Hong Zhao journals@cluteinstitute.com Zhao Zhou journals@cluteinstitute.com <p>Using the data of Chinese A-share listed manufacturing firms, the study explores the influence of ERP implementation on accounting information quality from reliability and relevance. Also, the study verifies the difference of the influence in firms which have different sizes and different ownership types. Compared with the firms not implementing ERP, accounting information quality of the firms implementing ERP improves significantly. In addition, the positive influence differs in firms of different sizes and different ownership types. In large-sized firms, ERP implementation has stronger influence on reliability of accounting information. In non-state-owned firms, ERP implementation has stronger influence on accounting information quality in respect to reliability and relevance. Our study supplies the new evidence to gauge the impact of ERP implementation on accounting information quality in an emerging economy context.</p> 2017-12-29T11:46:15-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10091 Effect Of Changes In The Korean Accounting Environment On The Productivity Of Accounting Firms 2018-02-23T18:08:20-08:00 Sun Min Kang journals@cluteinstitute.com In Tae Hwang journals@cluteinstitute.com Kang Sung Hur journals@cluteinstitute.com <p>To investigate how changes in the accounting environment in Korea affect firm productivity, this study analyzes productivity by firm size and labor type from 2000 to 2014, using a Cobb–Douglas production function. We find that (1) the greater the management advisory (tax) revenue, the greater the total revenue in large (small) accounting firms; and (2) marginal revenue is greatest for partners, followed by certified public accountants and general employees. In particular, partners’ contribution to large accounting firms improved after 2007, whereas general employees made a significant positive contribution to total revenue before 2007.</p> 2017-12-29T12:02:06-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10093 The Impact Of The Joint Provision Of Non-Audit Services On Audit Firm’s Tenure: A Kuwaiti Evidence 2018-02-23T18:08:23-08:00 Meshari O. Al-Hajri journals@cluteinstitute.com <p>Concerns about the potential harm of the increased economic bond between the audit firm and the audit client resulting from the joint provision of audit and NAS have been investigated extensively in the audit literature. However, much of this research was conducted in developed countries’ settings, with very little, if any, carried out in the context of a developing country. The current study aims at filling this gap in audit research by investigating two important issues related to the joint provision using data from the Kuwaiti audit market. First, this study examines whether there is an association between the provision of NAS to the audit client and audit firm’s tenure as a surrogate of audit independence. Second, the current study aims at examining factors expected to influence clients’ purchase of NAS in the Kuwaiti audit market. Contrary to expectations, the results reveal a negative relationship between the joint provision and external audit firm’s tenure, suggesting that such a joint provision does not lead to the impairment of auditor independence. Results obtained from the NAS purchase logistic regression also show that audit client’s purchase of NAS from their audit firms is positively related to the amount of audit fees and client’s financial leverage.</p> 2017-12-29T00:00:00-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10096 The Influence Of Job Insecurity On Career Commitment And Attitude In Multinational Corporations 2018-02-23T18:08:20-08:00 Kyung Hee Yoon journals@cluteinstitute.com Sung-Ho Oh journals@cluteinstitute.com Bo-Young Kim journals@cluteinstitute.com <p>As the perception of lifelong work shifts into lifelong career in the job insecurity market, the career development of employees through professional and competitive career management has become more important than being loyal to a lifelong work. Furthermore, in the case of multinational corporations, such as differentiation from the head office policy, cultural differences in labor relations, and the liquidity of business withdrawal, such a feature has a higher possibility of job insecurity than general companies. Therefore, the purpose of this study is to verify empirically how job insecurity influences career commitment and career attitude through individual, job and career characteristics as intermediation with the members of multinational corporations as objectives. For this purpose, a total of 366 questionnaire data that targeted 27 multinational corporations were collected and analyzed. The result shows that the job insecurity of multinational corporations affects individual characteristic rather than job or career characteristic, and it is confirmed that individual characteristic has an effect on career commitment and career attitude. In the end, multinational corporations, unlike ordinary domestic companies, need active organizational career development program that corresponds to an open corporate culture as well as innovative and open systems and policies that balance both internal and external networking activities in terms of human resource management of corporations.</p> 2017-12-29T12:26:40-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10097 Factors That Affect The Nonpayment Of Municipal Services In Madibeng, Mamelodi And Soshanguve Townships Of South Africa 2018-02-23T18:08:19-08:00 Zeleke Worku journals@cluteinstitute.com <p>The study was conducted in Madibeng, Mamelodi and Soshanguve townships of South Africa in order to assess and evaluate the main reasons for the non-payment of municipal services by members of the community. The study was conducted based on a stratified random sample of size 428 households. Statistical data analyses were performed by using methods such as ordered logistic regression analysis and Bayesian analyses. The results showed that 22% of households in Madibeng, 54% of households in Mamelodi and 78% of households in Soshanguve were willing to pay for municipal services that were provided to them by their local municipalities. Reluctance to pay for municipal services was significantly influenced by employment status, level of formal education and race group.&nbsp;</p> 2017-12-29T12:40:00-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10098 Effect Of Constraints On Perceived Business Success Of Rural Entrepreneurial Activities: A Case Of Two Rural Municipalities 2018-02-23T18:08:23-08:00 Albert Tchey Agbenyegah journals@cluteinstitute.com <p>This study aims to evaluate the effect of selected entrepreneurial constraints on the perceived business success of small businesses. In this study the dependent variable, perceived business success is measured by two variables; business growth and existence of human capital. A 7 Likert scale structured questionnaires anchored on “1” strongly disagree and “7” strongly agree is used to source data from entrepreneurs. The convenience and snowball technique were used to source 300 entrepreneurs from the target population for data. Reliability of the measuring instrument was possible through the Cronbach alpha while the questionnaire was piloted for conceptual realities. In this study, the precise and individual constraints were operationalized as independent variables. Relationships between the independent variables and the perceived business success as dependent variable were investigated through multiple linear regression analysis. The outcomes of the study resolved that precise and individual constraints impact negatively on the perceived business success of small businesses and entrepreneurial activities. The findings further revealed adverse links between the independent and the dependent variable known as the perceived business success.</p> 2017-12-29T00:00:00-08:00 Copyright (c) 2018 https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10100 Evaluating Options For The Regulation Of Payday Loans 2018-02-23T18:08:19-08:00 Michael H. Anderson journals@cluteinstitute.com Raymond Jackson journals@cluteinstitute.com <p>This study discusses regulatory options that federal and state legislatures might consider for the payday loan industry. These options include outright prohibition; restricting the implicit annual percentage interest rate; limiting the amount per loan; limiting the number of concurrent loans; setting lower and upper limits on contract length; and defining the waiting period between loans. While other studies examining the payday loan industry have relied on user survey data or data from a specific lender, this study utilizes data collected by the administrative agent for all payday loan activity in several states, including Florida, Illinois, and Oklahoma. A comparison of key empirical results derived from the differing regulatory environments in these states provides guidance to those who consider imposing further regulation. The current regulatory constraints have resulted in a relatively low default rate, a high rate of loan denial, and a troubling industry reliance on the frequent borrower. An analytical framework is suggested for understanding the motivations of the low and high frequency borrowers.</p> 2018-01-17T00:00:00-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10105 Stock Market Volatility And Presidential Election Uncertainty: Evidence From Political Futures Markets 2018-02-23T18:08:22-08:00 David R. Bowes journals@cluteinstitute.com <p>Uncertainty about the economy can increase volatility in financial market returns. One potential source of uncertainty is the outcome of an upcoming national election. This paper uses a GARCH model to estimate the effect of uncertainty surrounding U.S. Presidential elections on the volatility of U.S. stock market returns from 1992-2012. Uncertainty in these elections is measured using asset prices from the Iowa Electronic Market (IEM), an on-line futures market based on real-world events, including U.S. elections. The empirical results show that the conditional variance in S&amp;P 500 returns increases when IEM presidential election futures market asset prices indicate greater uncertainty about the outcome of an upcoming election.</p> 2017-12-29T00:00:00-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10106 Towards Improving South Africa's Legislation On Tax Evasion: A Comparison Of Legislation On Tax Evasion Of The USA, UK, Australia And South Africa 2018-02-23T18:08:22-08:00 Ansia Storm Journals@cluteinstitute.com Katrina Coetzee journals@cluteinstitute.com <p>The fight against tax evasion in South Africa is an ongoing battle. The tools available to law enforcement boil down to legislation and the enforcement thereof.&nbsp; The purpose of the study that was done for this article was to compare available legislation of the United States of America, United Kingdom, Australia and South Africa to determine if South Africa’s legislation can be improved. This was done by studying the relevant literature and legislation of all four countries. The findings, that there is some clauses that can be added to improve South Africa’s legislation, were confirmed by analyzing the legislation available. In theory, the results have proven that although South Africa’s legislation can compete with that of the United States of America, United Kingdom and Australia, there is some improvement that can be considered. This is of value to the individuals and professionals who deal with the offence of tax evasion on a daily basis, ensuring that the reviewed legislation will deter perpetrators or that the charges brought against them in the court of law will ensure harsher punishment.</p> 2017-12-29T00:00:00-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10107 A Generic Model Of Predicting Probability Of Success-Distress Of An Organization: A Logistic Regression Analysis 2018-02-23T18:08:18-08:00 Shyam Bhandari journals@cluteinstitute.com Anna J. Johnson-Syder journals@cluteinstitute.com <p>Many bankruptcy prediction models have been created over the years using a mix of variables derived mostly from accrual-based accounting statements and were industry specific. The primary issue with using a model comprised of accrual-based variables is that firm management can manipulate different components and make the balance sheet and income statement misleading (Wanuga 2006). Thus, firms appear financially healthy yet unable to meet the day-to-day cash flow needs of the firm; these financial issues are less likely to be hidden in the cash flow statement (Sharma 2001). In this study, we use a binary regression model with theoretically supported variables obtained from the cash flow statement to forecast firm success versus distress. Of particular interest, we examine firms representing 85 industries using firm data during and immediately following the greatest recession in United States history (Fieldhouse 2014; Lee 2014). The model is generic in the sense that it can be used to predict the probability of success-distress of any entity using the three major financial statements. We find that the overall model correctly classifies organizations 90.290 percent of the time.</p> 2018-01-29T11:00:09-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10111 Efficient Market Hypothesis And Stock Market Anomalies: Empirical Evidence In Four European Countries 2018-02-23T18:08:18-08:00 Matteo Rossi journals@cluteinstitute.com Ardi Gunardi journals@cluteinstitute.com <p>The stock market efficiency is the idea that equity prices of listed companies reveal all the data regarding the company value (Fama, 1965). In this way, there isn’t possible to make additional returns. However, evidence against the Efficient Market Hypothesis is growing. Researchers studied Calendar Anomalies (CAs) that characterised financial markets. These CAs contradict the efficient hypothesis. This research studies some of the most important market anomalies in France, Germany, Italy and Spain stock exchange indexes in the first decade of new millennium (2001-2010). In this study, to verify the distribution of the returns and their auto correlation, we use statistical methods: the GARCH model and the OLS regression. The analysis doesn’t show strong proof of comprehensive Calendar Anomalies. Some of these effects are country-specific. Furthermore, these country-anomalies are instable in the first decade of new millennium, and this result demonstrates some doubt on the significance of CAs.</p> 2018-02-06T11:06:44-08:00 Copyright (c) https://www.cluteinstitute.com/ojs/index.php/JABR/article/view/10112 The Effects Of Foreign Strategic Investors On Pricing Of Wealth Management Products Of Commercial Banks In China: Does Ownership Structure Matter? 2018-02-23T18:08:17-08:00 Hong Zhao journals@cluteinstitute.com Xueyan Zhao journals@cluteinstitute.com Ning Hou journals@cluteinstitute.com <p>Allowing foreign strategic investors (FSIs) to hold minority stake in Chinese banks is very important for China’s banking. Based on data of 221 commercial banks from 2007 to 2015, we use difference in differences (DID) and propensity score matching (PSM) to investigate the effects of shareholding of FSIs on pricing of wealth management products (WMPs) for banks in China from single product view and every bank view. Besides, we further investigate the effects of bank ownership on above relationship. We find that FSIs’ acquisitions significantly enhance the expected rate of return of WMPs on both levels, however decrease the deviation of return of WMPs on single product level but have no evident effects on bank level. Finally, we find that the impact of acquisitions from foreign banks depend on Chinese banks’ ownership structure. Specifically, the effects of FSIs’ acquisitions on pricing of WMPs are positive for state-owned banks (SOBs), while are negative for city commercial banks.</p> 2018-02-09T07:45:55-08:00 Copyright (c)