Predicting rating changes for banks: how accurate are accounting and stock market indicators?

We aim to assess how accurately accounting and stock market indicators predict rating changes for Asian banks. We conduct a stepwise process to determine the optimal set of early indicators by tracing upgrades and downgrades from rating agencies, as well as other relevant factors. Our results indicate that both accounting and market indicators are useful leading indicators but are more effective in predicting upgrades than downgrades, especially for large banks. Moreover, early indicators are only significant in predicting rating changes for banks that are more focused on traditional banking activities such as deposit and loan activities. Finally, a higher reliance of banks on subordinated debt is associated with better accuracy of early indicators.     

Exchange-rate variability and industry trade flows between Malaysia and Japan

This research investigates the exchange-rate risk sensitivity of Malaysian bilateral trade flows with its important trading partner, Japan. To this end, bounds testing approach to co-integration is applied using industry level data over the monthly period 2000–2013. Findings suggest that above the one-third of the total co-integrated export (43.86%) and import (34.54%), industries experiences the ringgit/yen variability effect in the short run. However, this effect sustains in relatively less number of export (14.03%) and import (32.73%) industries in the long run. It is interesting to note that exchange-rate risk boosts trade flows in the majority of these affected industries.     

Bank Relationships and Firms' Financial Performance: The Italian Experience

We examine the connection between the number of bank relationships and firms' performance using a unique data set on Italian small firms for which banks are a major source of financing. Our evidence indicates that return on equity and return on assets decrease as the number of bank relationships increases with a stronger effect on small firms than large firms. We also find that interest expense over assets increases as the number of relationships increases. Particularly for small firms, these results are consistent with analyses suggesting that fewer bank relationships reduce information asymmetries and agency problems and outweigh hold‐up problems.     

Tackling one-sidedness in equality and diversity research: Characteristics of the current dominant approach to managing diverse workgroups in Iran

The primary aim of this paper is to investigate whether equal opportunity and diversity pronouncements, both internally through organizations’ own administrative policies or externally through imposed governmental legislations, benefit those who are the main subject of such initiatives (i.e., employees). While a majority of current research on equality and diversity has been dominated by writings on developed and specifically Western nations, this paper tackles such one-sidedness in previous research and takes the current understanding further by providing employee perspectives on equality and diversity in employment to encompass less developed nations with a particular focus on Iran. Using a qualitative research approach data were collected from employees across two construction and manufacturing industries. Based on the analysis of the data, we found, first, shared religious beliefs and language to be envisaged as playing a crucial part in establishing the ethnic minority workers’ affiliation to a workgroup; second, the prospects for implementing declared equality and diversity polices to fade away as the employee began to work; and third, the adoption of diversity and equality policies to be primarily driven by (1) the dire state of the economy, and (2) the need for a mechanism to fit only the management priorities.     

Transmission channels matter: Identifying spillovers from FDI

The empirical literature on the spillovers of foreign direct investment (FDI) has so far not analysed the well-established theoretical transmission channels through which FDI impacts on domestic firms. This paper shows how channels of transmission matter for productivity spillovers from FDI by providing more fuller and nuanced picture of the effects. We analyse a panel of eight sub-Saharan Africa countries spanning the period 2006–2014 and demonstrate the empirical relevance of distinguishing three channels – demonstration, labour mobility, and competition. We provide measures of these effects and also show that the size, significance, and sign of spillover effects depend on the local absorptive capacity, technology levels, geographical proximity, and foreign ownership structure. Overall, results suggest that demonstration spillovers are large and economically significant, whereas the patterns of labour mobility and competition spillovers are not stable across the various specifications and measures. Finally, the analysis involves several measures of further investigations and robustness checks. Results are robust to the construction of spillover and outcome variables, the introduction of additional explanatory variables and an alternative estimation method.     

Social Media and Purchasing Behavior: A Study of the Mediating Effect of Customer Relationships

Overwhelmed by the use of social media in augmenting human interactions, researchers have developed special interest in understanding the use of social media in developing strong and customized relationships with customers. In line with this, the current study aims to explore the impact of social media on purchasing behavior with mediating effect of customer relationship. The findings indicate that majority of the respondents use social media for purchasing purpose and there is a positive relation between social media and customer relationship, as well as social media and purchasing behavior, with customer relationships fully mediating and enhancing the relationship between social media and purchasing behavior. It has been also found that the majority of the respondents use social media for purchasing purposes. This study offers new insights into the conceptual development and understanding of social media in enhancing customer relationships and affecting purchasing behavior. The study acts as a strong support and aid towards developing and managing global customer relationships through the use of social media.     

Peginterferon beta-1a versus other self-injectable disease-modifying therapies in the treatment of relapsing-remitting multiple sclerosis in Scotland: a cost-effectiveness analysis

Aims: Peginterferon beta-1a 125?mcg administered subcutaneously every 2 weeks, a new disease-modifying therapy (DMT) for relapsing-remitting multiple sclerosis (RRMS), was approved in January 2015 by the Scottish Medicines Consortium. This study assesses long-term clinical and economic outcomes of peginterferon beta-1a compared with other self-injectable DMTs (interferon beta-1a [22?mcg, 30?mcg, and 44?mcg], interferon beta-1b, and glatiramer acetate 20?mg) in the treatment of RRMS, from the National Health Service and Personal Social Services perspective in Scotland.

Methods: A previously published, validated Markov cohort model was adapted for this analysis. The model estimates changes in patient disability, occurrence of relapses, and other adverse events, and translates them into quality-adjusted life years and costs. Natural history data came from the ADVANCE trial of peginterferon beta-1a, the London Ontario (Canada) database, and a large population-based MS survey in the UK. The comparative efficacy of each DMT vs placebo was obtained from a network meta-analysis. Costs (2015 British Pounds) were obtained from public databases and literature. Clinical and economic outcomes were projected over 30 years and discounted at 3.5% per year.

Results: Over 30 years, peginterferon beta-1a was dominant compared with interferon beta-1a (22, 30, and 44?mcg), and interferon beta-1b, and cost-effective compared with glatiramer acetate 20?mg. Results were most sensitive to variations in each DMT’s efficacy and acquisition costs. Deterministic and probabilistic sensitivity analyses confirmed the robustness of the results.

Limitations: The impact of improved adherence with peginterferon beta-1a on clinical and economic outcomes and the impact of subsequent DMTs after treatment discontinuation were not considered. Oral and infused DMTs were not included as comparators.

Conclusion Long-term treatment with peginterferon beta-1a improves clinical outcomes, while its cost profile makes it either dominant or cost-effective compared with other self-injectable DMTs for the treatment of RRMS in Scotland.     

Impact of Transformational and Servant Leadership on Organizational Performance: A Comparative Analysis

The purpose of this study is to examine the impact of two comparative leadership styles on organizational performance outcomes. The leadership styles undertaken is transformational and servant leadership. A sample of 155 participants is taken from profit-oriented service sector of Pakistan. Data through survey gathered on a five point likert scale from organizations. AMOS and SPSS are used for statistical analysis. The result shows that, transformational leadership has more impact on organizational learning than servant leadership. Furthermore organizational learning enhances organizational performance. Managers and leaders of corporate sector can get benefited from this study. Their main objective is to maximize the profitability of organization thus, they can choose leadership style which polishes their abilities and helps them to achieve profit maximization.     

Akbar's multiculturalism: lessons for diversity management in the 21st century

This paper challenges the hegemony of US‐centric perspectives in the diversity management literature by explaining how non‐Western histories and cultures may provide alternative contexts for understanding and managing diversity. In pursuit of this, the paper describes how Muslim ruler Jalaluddin Muhammad Akbar conceptualized multiculturalism in 16th century India, and how his principles of sulh‐i‐kul, rah‐i‐aql, and rawa‐i‐rozi may be adopted to develop a sociopolitical environment conducive to managing cultural diversity in organizations, an environment currently lacking even in the majority of democratic countries in the world today. Copyright © 2010 ASAC. Published by John Wiley & Sons, Ltd.     

JAPANESE MANAGERIAL PRACTICES IN THE MALAYSIAN ELECTRONICS INDUSTRY: TWO CASE STUDIES

The transferability of the Japanese management syndrome is examined through an analysis of the employment policies and practices of two major Japanese multinational electronics companies operating in Malaysia. the evidence suggests that the question of transferability must be considered in the specific historical context. While such companies operate from within a preferred managerial style, the case study evidence suggests that employment policy and practice is likely to be significantly constrained by business objectives and heavily conditioned by the local economic, political and legal conditions and socio-cultural values.