Seasonality and cultural influences on four Asian stock markets

We use daily returns to identify seasonality on the Kuala Lumpur Stock Exchange (KLSE), The Stock Exchange, Bombay (SEB), the Stock Exchange of Singapore (SES) and The Stock Exchange of Thailand (SET). On all four, we find strong day-of-the-week effects. Month-of-the-year effects exist on the KLSE and the SES but not on the SET or the BSE. Strong Chinese New Year effects are evident on the SES and the KLSE. The Chinese New Year effect on the SET is among small capitalization stocks. On the KLSE, we also find Islamic New Year and Vesak effects, but no Aidilfitri effect. Only weak holiday effects concerning several Indian lunar holidays are evident on the BSE. In general we find that cultural holidays evidence a stronger effect than state holidays. These results confirm the importance of cultural influences in the pricing of stocks.M. W. L. Chan is Professor of Finance and Business Economics at McMaster University, Canada, Anya Khanthavit Associate Professor of Finance, Thammasat University, Thailand and Hugh Thomas Assistant Professor of Finance, McMaster University, Canada. The authors would like to thank the Association of Deans of Southeast Asian Graduate Schools of Management for the financial support that enabled this research to be undertaken and an anonymous referee for his many insightful and constructive suggestions. Please direct all correspondence to Hugh Thomas, School of Business, McMaster University, 1280 Main Street West, Hamilton, Ontario, L8S 4M4, Canada, tel: (905) 522-6861 ext 23983 or email thomas@mcmaster.ca..     

Swedish managers' perceptions of Singaporean work-related values

The purpose of this paper is to identify some of the fundamental work-related cultural values of middle managers of Chinese ethnic origin employed in Swedish companies in Singapore, and to draw comparisons with the perceptions of those values among the Swedish top managers. Using the same set of questionnaire items for both sets of respondents, the Swedish managers were asked to respond as they imagine their Chinese subordinates would do, as a projective technique. The main finding of this study is the considerable amount of misjudgment on the part of Swedish top managers in assessing work-related values of the Singaporean middle managers.Dr. Jan Selmer is Associate Professor of Business Administration at the Företagsekonomiska Institutionen, University of Stockholm, Sweden. He is a Board Director of the Center for Pacific Asia Studies, University of Stockholm. Presently Dr Selmer is a Visiting Senior Teaching Fellow at the School of Management, National University of Singapore.Acknowledgement is given to the Swedish Embassy in Singapore for help and support. The participation of the management of the Swedish companies included in the study (Appendix) is deeply appreciated.     

The effects of management policy on the performance of Islamic banks

This study examines the effects of management controlled variables on the performance of Islamic banks. Management controlled variables are related to assets, liabilities and expenses management. This study indicates that three major investment activities are revenue generating activities for Islamic banks, whereas savings and investment deposits are costs to the banks. As expected, total expenses are positively correlated with profitability.The author is Associate Professor of Banking and Finance at the School of Management, The Northern University of Malaysia, Malaysia. He wishes to thank an anonymous referee for providing helpful comments and suggestions.     

The management of Chinese small-business enterprises in Malaysia

This paper traces the development of Chinese business enterprises in Malaysia, a multiracial country where the Chinese comprise 30 per cent of the population. Most of the Chinese enterprises are very small. Reference is made to the sixteen Principles of Good Business Practices which originated from ancient China. It is argued that the strengths of the small Chinese organization such as strong family ties, sharing and pooling of resources, efficient use of manpower, practice of thrift, use of low gearing, flexibility of operations, etc., may become weaknesses if the business expands. ThePok Chow or labour contracting system, and the role of the Chinese business associations and guilds are also discussed. Since the promulgation of the new economic policy in 1970, there is greater urgency for Chinese enterprises to modernise, so as to adapt to changes in Malaysia.This paper has been submitted as a chapter of a forthcoming book entitled Managing in an Asian Plural Society. As one of the authors of this book, the writer of this paper is indebted to Tan Sri Datuk Hamzah Sendut and Mr. John Madsen, the other two authors, for permitting him to present this material at this conference.Professor Gregory Thong Tin Sin is chairman of the Division of Business Administration, Faculty of Economics and Administration, University of Malaya.     

Personal value systems of Japanese trainees and managers in a changing competitive system

A study of personal values held by Japanese and foreign students, trainees and managers showed recent Japanese trainees slightly more conservative than their 1979 cohorts. Foreign students and foreign managers held more pro-American work values than either Japanese managers or trainees. Finally, for the Japanese respondents, there was some evidence of specific shifts away from the Japanese employment system in the areas of thenenko compensation and promotion systems in their organisations.Roy J. Adams is a Professor of Industrial Relations in McMaster University; Richard B. Peterson is a Professor of Management and Organization in the University of Washington; Hermann F. Schwind is an Associate Professor in St. Mary's University.     

Linear programming for bank portfolio management in Singapore

James Tobin's portfolio theory can be applied to bank portfolio management in that a bank would maximise the rates of return of its portfolio of assets, subject to the expected degree of risk and liquidity. Chambers and Charnes (1961), Cohen and Hammer (1967), Booth and Dash (1979) and others apply the linear programming model to the management of bank funds. This paper carries out a linear programming analysis on the consolidated balance sheets of commercial banks in Singapore for the period 1978–1983. The results show that by and large banks do try to maximise the returns of their portfolio, subject to legal, policy, bounding and total asset constraints, which denote riskiness and liquidity of the portfolio of assets. In a direct way, banks conform to the portfolio choice theory; they have to balance yield and liquidity against security. Although the computer cannot replace a manager, linear programming can serve as a useful guide.Dr Lee Sheng-Yi is an Associate Professor (retired) in the National University of Singapore and a Visiting Senior Research Fellow in Chung Hua Institution for Economic Research, Taipei; and Dr Yeong Wee Yong is a Senior Lecturer, School of Management Faculty of Business Administration, National University of Singapore.     

Capital investment practices: A survey of large corporations in Malaysia,Singapore and Hong Kong

This paper presents the results of a survey on the capital investment practices of large corporations in Malaysia, Singapore and Hong Kong. Our findings are fairly consistent with those from similar U.S. surveys. However, Malaysia, Singapore and Hong Kong companies seem to use multiple techniques, both simple and sophisticated, in evaluating investment projects, while U.S. companies appear to make great use of discounted cash-flow rate of return. Although Malaysia, Singapore and Hong Kong companies often make annual cash-flow forecasts over the life of a project, they do not undertake much analysis of risk involved in the project. Moreover, there is room for improving the practice of project implementation, the post-audit of implemented projects, and the use of post-audit data.Dr Wong Kie Ann is with the School of Management, National University of Singapore; Dr Edward J Farragner is with the Department of Finance, DePaul University, U.S.A.; and Mr Rupert K.C. Leung is with the Department of Business Management, Hong Kong Baptist College.     

Efficiency in nuclear power pricing: A reply

Drs. Danielsen and Kamerschen are Professor and Distinguished Professor of Economics at the University of Georgia, respectively. Dr. Thompson is Director of Economics and Planning Division of the Public Utilities Staff at the Mississippi Public Service Commission.     

The regional character of Asian multinational enterprises

In recent issues of this Journal a debate has raged concerning the appropriate nature of academic research in the Asia Pacific region. While we support the desire for both rigor and regional relevance in this research, we wish to demonstrate a strong commonality between the performance of large Asian firms and others from Europe and North America. This prompts us to question the need for a new theory of the MNE based on the experience of Asian firms. Like their counterparts elsewhere, the large Asian firms mostly operate on an intra-regional basis. While in the literature it has been assumed that the path to success for Asian firms is globalization, we show that the data supporting this is confined to a handful of unrepresentative case studies. We also present a bibliometric analysis which shows an overwhelming case study sample selection bias in academic studies towards this small number of unrepresentative cases.

Customer orientation and buyer satisfaction: The malaysian housing market

This study examines the marketing of a high-involvement product, namely, houses in Malaysia, by focusing on the relationship between customer orientation, an important component of the marketing concept, and buyers' satisfaction. Using multi-item scales to measure these two constructs and employing factor analysis and stepwise regression for data analyses, the results and marketing implications drawn suggest the usefulness of these scales for developing well-defined, comprehensive and strategic marketing plans as well as providing a useful framework for formulating effective marketing strategies to enhance customer satisfaction.The first author is attached to the Faculty of Economics and Administration, University of Malaya, Kuala Lumpur, while the second author is the marketing manager of a local private firm.     

Assessing the rate of technological progress using hazard rate models of R&D communities

This paper describes the use of hazard rate models for assessing emerging technologies. It suggests that on a global scale the decisions of researchers, in terms of their entrance, continuance, and exit from a field, can serve as an indicator of the rate of progress in the emergence of a new technology. The approach is demonstrated using the literature on magnetic bubble memory technology as a source of data to determine the contribution-spans of researchers. Survival and hazard functions are estimated based upon the experience of more than seventeen-hundred researchers contributing to the field over two decades.
The author is indebted to Professor Raghu Garud (New York University) and Dr. Koenraad Debackere (Gent University) for their help in developing this avenue of research, and Professors Thomas Allen and Edward Roberts (MIT) for their support and encouragement.     

The investment opportunity set and disclosure policy choice: Some Malaysian evidence

Recently researchers have shown that certain corporate and accounting policy decisions are related to the firm's portfolio of growth opportunities or its investment opportunity set (ios). This paper augments the research by examining whether the firm's ios is also predictably related to disclosure policy decisions made by the firm. We hypothesize that because agency costs between managers and shareholders are an increasing function of the firm's growth opportunities, managers in high growth firms will be motivated to disclose information about the firm's future prospects in order to commit themselves to particular courses of action and thereby limit their future managerial discretion. Our empirical results indicate that for a sample of 67 Malaysian firms, this is supported only amongst a sample of lower growth firms.The authors are Associate Professor and lecturer, respectively, at the Department of Accountancy, Massey University, Palmerston North, New Zealand. Correspondence should be addressed to S F Cahan at the above address, e-mail: S.F.Cahan@massey.ac.nz.     

Performance criteria for production subunits in Australian manufacture

Forty-two measures of subunit performance are rated by 155 production managers, and these ratings are factor analyzed to yield performance criteria. Nine criteria emerged from this analysis and five of them are rated by the managers as significantly useful. One of the significant criteria suggests, rather surprisingly, that customer satisfaction is an important consideration to production subunit performance. The application of these results to managerial situations is discussed briefly.Dr Graham K. Kenny is a visiting Professor of Management from the Department of Management, College of Business Administration, San Diego State University; and Professor Alan S. Dunk is a Professor with the School of Economic and Financial Studies, Macquarie University. Thanks are due to John Brown, Bob Hinings, and John Waterhouse for their helpful comments on an earlier draft of this paper.     

Negative Externalities of Rail Noise and Housing Values: Evidence from the Cessation of Railway Operations in Singapore

The governments of Malaysia and Singapore reached a landmark agreement in May 2010 to end the operations of nearly 80‐year‐old railway lines and stations in Singapore. In our study, the cessation of the railway services operated by Keretapi Tanah Malaya (KTM), a firm owned by the Malaysian government, with effect from July 1, 2011 is used in a quasi‐experiment design to test the effects of the removal of train noise externalities on real estate values. Based on the nonlanded private housing transactions data from January 2005 to June 2013, we find that average prices for houses located within a 400‐m boundary from the railway lines increased by 3.5% relative to prices for houses located outside the 400‐m boundary after the cessation agreement has been announced. The removal of train noise externalities increases housing prices in the affected area by 13.7% on average in the postcessation period of the KTM railway services. Realized economic benefits associated with the railway services cessation were estimated at S$0.36 billion based on houses sold in the post cessation period of the KTM railway services.     

Credit scoring for commercial loans: The case of Singapore

This paper develops a credit scoring model which incorporates financial ratios as inputs by applying the statistical technique of discriminant analysis. The objective is to identify and analyse the common financial characteristics which distinguish bad from good accounts. The sample is drawn from the loan portfolio of a major local bank in Singapore. The results indicate that there is a 95 per cent classification accuracy for the model presented.Dr Kwan Kuen Chor is Senior Lecturer at the School of Management, National University of Singapore. Ms Julia Tan is with Paribas South East Asia Ltd. Singapore.     

Relating management practices to job characteristics of R&D: The case of Taiwan

Based on a study of researchers in three major R&D industries in Taiwan, this article found that while both supportive and directive styles of management are important in the supervision of R&D processes, the supportive behavior seems to be more effective than the directive strategy in motivating research professionals at work. Data also indicated that the job characteristics of R&D may be significantly influenced by industrial conditions. The management differences between industries are explained in the features peculiar to each particular industry. Implications of the findings for enhancing the management effect are also discussed.The author is an Associate Professor, Department of Business Administration, National Cheng-Kung University, Tainan, Taiwan, R.O.C. All correspondence should be sent to this address.     

Uniform accounting system for state-owned enterprises: The case of Taiwan

This article describes the uniform accounting system adopted by government enterprises in Taiwan. Several key elements of the system including the uniform chart of accounts, uniform accounting procedures, and external financial reports are discussed. Some unique accounting practices and special accounts used in the system are also described. The system is compared with the French and Norwegian uniform accounting systems. Similarities and differences among these systems are highlighted. The paper concludes with an evaluation of the effectiveness of the Taiwanese accounting system.The authors are respectively Associate Professor of Accounting at the University of Calgary and Professor and Chairman of the Department of Industrial Management, National Taiwan Institute of Technology. They are grateful to Professors Herbert L. Jensen and Haim Falk for their helpful comments on earlier versions of this paper.     

The protection of interests: Organizational change in the Australian services canteens organization

Outlined in this paper is a series of events pertaining to changes to the Australian Services Canteens Organization (ASCO). The behaviors of the officers of the armed forces and of the rank and file, who were employed at ASCO, in reaction to these changes are the central focus. These two groups are contrasted in the actions they followed to protect their interests in the light of anticipated change. The theoretical analysis explores the values, interests, issue clarity, legitimate action and power of the groups.Professor Graham K. Kenny is with the Department of Management, San Diego State University. Professor Phillip Morgan is with the School of Marketing, New South Wales Institute of Technology and Professor Bob Hinings is with the Department of Organizational Analysis, University of Alberta.     

The effect of political events on Japanese foreign direct investments

This article presents the findings of an investigation of the impact of conflictive and cooperative political events in 62 host countries on Japanese foreign direct investments during the period 1965 to 1980. In addition, the study provides evidence of the relative importance of economic conditions and intergovernmental relationships as determinants of foreign direct investments by Japanese firms. It is argued that in analyzing the effect of political events on foreign direct investments, one must not only take into account the conflictive political conditions within the host countries, but also cooperative political developments and changes in intergovernmental relationships. The findings of this study are compared with the results of investigating the impact of political events on foreign direct investments by United States and German multinational firms. Similarities and differences are highlighted as well as their probable causes. As such, this study makes a contribution to the conceptualization of political risk in an international business context.Dr. Hans Schollhammer is Associate Professor and Chairman of the International Management Program, Graduate School of Management, UCLA; Dr. Douglas Nigh is Assistant Professor of International Business, Pennsylvania State University, State College, Pennsylvania. The authors acknowledge with gratitude the financial support provided by the United States-Japan Friendship Commission for this research project.