Abstract: The construction industry is the pillar industry in
China, accounting for about 6% of the gross domestic product. Along
with changes in the external environment of the construction industry
in China, the construction firm faces fierce competition. The paper
aims to investigate the relationship between diversified types of
construction firm and its performance in China. Based on generalist
and specialist strategy in organizational ecology, we think a generalist
organization can be applied to an enterprise with diversified
developments, while specialist groups are extended to professional
enterprises .This study takes advantage of annual financial data of
listed construction firm to empirically verify the relationship between
diversification and corporation performance establishing a regression
equation to econometric analysis. We find that: 1) Specialization can
significantly improve the level of profitability of listed construction
firms, and there is a significant positive relationship with corporate
performance; 2) The level of operating performance of listed
construction enterprises which engage in unrelated diversification is
higher than those with related diversification; 3) The relationship
between state-owned construction firms and corporate performance is
negative. The more the year of foundation is, the higher performance
will be; however, the more the year of being listed, the lower
performance will be.
Abstract: The main thrust of this paper is to assess the level of disclosure in the annual reports of non-financial Greek firms and to empirically investigate the hypothesized impact of several firm characteristics on the extent of mandatory disclosure. A disclosure checklist consisting of 100 mandatory items was developed to assess the level of disclosure in the 2009 annual reports of 43 Greek companies listed at the Athens stock exchange. The association between the level of disclosure and some firm characteristics was examined using multiple linear regression analysis. The study reveals that Greek companies on general have responded adequately to the mandatory disclosure requirements of the regulatory bodies. The findings also indicate that firm size was significant positively associated with the level of disclosure. The remaining variables such as age, profitability, liquidity, and board composition were found to be insignificant in explaining the variation of mandatory disclosures. The outcome of this study is undoubtedly of great concern to the investment community at large to assist in evaluating the extent of mandatory disclosure by Greek firms and explaining the variation of disclosure in light of firm-specific characteristics.
Abstract: This research seeks to investigate the frequency and
profitability of index arbitrage opportunities involving the SET50
futures, SET50 component stocks, and the ThaiDEX SET50 ETF
(ticker symbol: TDEX). In particular, the frequency and profit of
arbitrage are measured in the following three arbitrage tests: (1)
SET50 futures vs. ThaiDEX SET50 ETF, (2) SET50 futures vs.
SET50 component stocks, and (3) ThaiDEX SET50 ETF vs. SET50
component stocks are investigated. For tests (2) and (3), the problems
involve conic optimization and quadratic programming as subproblems.
This research is first to apply conic optimization and
quadratic programming techniques in the context of index arbitrage
and is first to investigate such index arbitrage in the Thai equity and
derivatives markets. Thus, the contribution of this study is twofold.
First, its results would help understand the contribution of the
derivatives securities to the efficiency of the Thai markets. Second,
the methodology employed in this study can be applied to other
geographical markets, with minor adjustments.
Abstract: This study analyzes characteristics determining
member’s willingness to invest in cooperatives using ordered logit
model. The data were collected in a field survey among 122
cooperative members in north-central China. The descriptive analysis
of survey evidence suggests that cooperatives in China generally
having poor ability to deliver the processing services related to
product package, grading, and storage, performing worse in
profitability, inability of providing returns to capital and obtaining
agricultural loan. The regression results demonstrate that members’
farm size, their satisfaction with cooperative price preferential
services, attitudes toward cooperative operational scale and
development potential have statistically significant impact on
willingness to invest.
Abstract: The goal of this paper is to segment the countries
based on the value of export from Iran during 14 years ending at 2005. To measure the dissimilarity among export baskets of different countries, we define Dissimilarity Export Basket (DEB) function and
use this distance function in K-means algorithm. The DEB function
is defined based on the concepts of the association rules and the
value of export group-commodities. In this paper, clustering quality
function and clusters intraclass inertia are defined to, respectively,
calculate the optimum number of clusters and to compare the
functionality of DEB versus Euclidean distance. We have also study
the effects of importance weight in DEB function to improve
clustering quality. Lastly when segmentation is completed, a
designated RFM model is used to analyze the relative profitability of
each cluster.
Abstract: In the present article, a new method has been developed to enhance the application of equipment monitoring, which in turn results in improving condition-based maintenance economic impact in an automobile parts manufacturing factory. This study also describes how an effective software with a simple database can be utilized to achieve cost-effective improvements in maintenance performance. The most important results of this project are indicated here: 1. 63% reduction in direct and indirect maintenance costs. 2. Creating a proper database to analyse failures. 3. Creating a method to control system performance and develop it to similar systems. 4. Designing a software to analyse database and consequently create technical knowledge to face unusual condition of the system. Moreover, the results of this study have shown that the concept and philosophy of maintenance has not been understood in most Iranian industries. Thus, more investment is strongly required to improve maintenance conditions.
Abstract: Study investigates the level and extent of voluntary disclosure practice in Croatia. The research was conducted on the sample of 130 medium and large companies. Findings indicate that two thirds of the companies analyzed disclose below-average number of additional information. The explanatory analyses has shown that firm size, listing status and industrial sector significantly and positively affect the level and extent of voluntary disclosure in the annual report of Croatian companies. On the other hand, profitability and ownership structure were found statistically insignificant. Unlike previous studies, this paper deals with level of voluntary disclosure of medium and large companies, as well as companies whose shares are not listed on the organized capital market, which can be found as our contribution. Also, the research makes contribution by providing the insights into voluntary disclosure practices in Croatia, as a case of macro-oriented accounting system economy, i.e. bank oriented economy with an emerging capital market.
Abstract: The aim of this research is to develop the
understanding of corporate social responsibility (CSR) from
consumers- perspective toward Thai mobile service providers.
Based on the survey from 400 mobile customers, the result
shows that four dimensions of CSR of Thai mobile service
providers consist of economic, legal, ethical and philanthropic
responsibility. These four CSR factors have positive impacts
on enhancing customer satisfaction except one item of
economic responsibility - profitability to shareholders. Ethical
dimension has the strongest impact on customer satisfaction.
Economic, legal, ethical, philanthropic responsibility and
customer satisfaction have major impact on loyalty, whilst
philanthropic component mostly affects loyalty.
Abstract: The purpose of this study is comparing and analysing
of the financial characteristics for development methods of the urban development project in the established area, focusing on the
multi-level replotting.
Analysis showed that the type of the lowest expenditure was
'combination type of group-land and multi-level replotting' and the type of the highest profitability was 'multi-level replotting type'. But
'multi-level replotting type' has still risk of amount of cost for the additional architecture. In addition, we subdivided standard amount
for liquidation of replotting and analysed income-expenditure flow.
Analysis showed that both of 'multi-level replotting type' and 'combination type of group-land and multi-level replotting' improved
profitability of project and property change ratio. However, when the
standard was under a certain amount, amount of original property for the replotting was increased exponentially, and profitability of project.
Abstract: This research proposes an Interactive 3D Experience to
enhance customer value in the fantasy era. As products reach maturity,
they become more similar in the range of functions that they provide.
This leads to competition via reduced retail price and ultimately
reduced profitability. A competitive design method is therefore
needed that can produce higher value products. An Enhanced Value
Experience has been identified that can assist designers to provide
quality products and to give them a unique positioning. On the basis of
this value opportunity, the method of Interactive 3D Experience has
been formulated and applied to the domain of retail furniture. Through
this, customers can create their own personalized styling via the
interactive 3D platform.
Abstract: The use and management of projects has risen to
a new prominence, with projects seen as critical to economic in
both the private and public sectors due challenging and dynamic
business environment. However, failure in managing project is
encountered regularly, which cause the waste of company
resources. The impacts of projects that failed to meet
stakeholders expectations have left behind long lasting negative
consequences in organization. Therefore, this research aims to
investigate on key success factors of project management in an
organization. It is believed that recognizing important factors
that contribute to successful project will help companies to
increase the overall profitability. 150 questionnaires were
distributed to respondents and 110 questionnaires were collected
and used in performing the data analysis. The result has strongly
supported the relationship between independent variables and
project performance.
Abstract: Co-integration models the long-term, equilibrium relationship of two or more related financial variables. Even if cointegration is found, in the short run, there may be deviations from the long run equilibrium relationship. The aim of this work is to forecast these deviations using neural networks and create a trading strategy based on them. A case study is used: co-integration residuals from Australian Bank Bill futures are forecast and traded using various exogenous input variables combined with neural networks. The choice of the optimal exogenous input variables chosen for each neural network, undertaken in previous work [1], is validated by comparing the forecasts and corresponding profitability of each, using a trading strategy.
Abstract: Capital structure is one of the most important financial
decisions in corporate financing strategy. It involves the choice of
debt and equity level in financing a company-s operations. This study
aims to investigate whether the capital structure choice of Malaysian
electrical and electronic manufacturing companies that are listed in
the Bursa Malaysia can be explained by factors that have been found
by most studies as dominant determinants of capital structure
(company size, profitability, asset tangibility, liquidity and growth).
Using debt ratio as the proxy for capital structure and applying
pooled ordinary least square multiple regression estimation, the
results showed that on average, Malaysian electrical and electronic
manufacturing companies used less debt in funding their business
operations. The findings also showed that size and asset tangibility
has a significant positive relationship with debt level, while liquidity
has a negative significant relationship with leverage.
Abstract: This paper focuses on robust design and optimization
of industrial production wastes. Past literatures were reviewed to case
study Clamason Industries Limited (CIL) - a leading ladder-tops
manufacturer. A painstaking study of the firm-s practices at the shop
floor revealed that Over-production, Waiting time, Excess inventory,
and Defects are the major wastes that are impeding their progress and
profitability. Design expert8 software was used to apply Taguchi
robust design and response surface methodology in order to model,
analyse and optimise the wastes cost in CIL. Waiting time and overproduction
rank first and second in contributing to the costs of wastes
in CIL. For minimal wastes cost the control factors of overproduction,
waiting-time, defects and excess-inventory must be set at
0.30, 390.70, 4 and 55.70 respectively for CIL. The optimal value of
cost of wastes for the months studied was 22.3679. Finally, a
recommendation was made that for the company to enhance their
profitability and customer satisfaction, they must adopt the Shingeo
Shingo-s Single Minute Exchange of Dies (SMED), which will
immediately tackle the waste of waiting by drastically reducing their
setup time.
Abstract: The need to increase the efficiency of health care
systems is becoming an obligation, and one of area of improvement
is the discharge process. The objective of this work is to minimize
the patients discharge time (for insured patients) to be less than 50
minutes by using six sigma approach, this improvement will also:
lead to an increase in customer satisfaction, increase the number of
admissions and turnover on the rooms, increase hospital
profitability.Three different departments were considered in this
study: Female, Male, and Paediatrics. Six Sigma approach coupled
with simulation has been applied to reduce the patients discharge
time for pediatrics, female, and male departments at hospital. Upon
applying these recommendations at hospital: 60%, 80%, and 22% of
insured female, male, and pediatrics patients respectively will have
discharge time less than the upper specification time i.e. 50 min.
Abstract: Every commercial bank optimises its asset portfolio
depending on the profitability of assets and chosen or imposed
constraints. This paper proposes and applies a stylized model for
optimising banks' asset and liability structure, reflecting profitability
of different asset categories and their risks as well as costs associated
with different liability categories and reserve requirements. The level
of detail for asset and liability categories is chosen to create a
suitably parsimonious model and to include the most important
categories in the model. It is shown that the most appropriate
optimisation criterion for the model is the maximisation of the ratio
of net interest income to assets. The maximisation of this ratio is
subject to several constraints. Some are accounting identities or
dictated by legislative requirements; others vary depending on the
market objectives for a particular bank. The model predicts variable
amount of assets allocated to loan provision.
Abstract: The aim of this paper is to investigate the influence of
market share and diversification on the nonlife insurers- performance.
The underlying relationships have been investigated in different
industries and different disciplines (economics, management...), still,
no consistency exists either in the magnitude or statistical
significance of the relationship between market share (and
diversification as well) on one side and companies- performance on
the other side. Moreover, the direction of the relationship is also
somewhat questionable. While some authors find this relationship to
be positive, the others reveal its negative association. In order to test
the influence of market share and diversification on companies-
performance in Croatian nonlife insurance industry for the period
from 1999 to 2009, we designed an empirical model in which we
included the following independent variables: firms- profitability
from previous years, market share, diversification and control
variables (i.e. ownership, industrial concentration, GDP per capita,
inflation). Using the two-step generalized method of moments
(GMM) estimator we found evidence of a positive and statistically
significant influence of both, market share and diversification, on
insurers- profitability.
Abstract: This paper aims to (1) analyze the profiles of
transgressors (detected evaders); (2) examine reason(s) that triggered a
tax audit, causes of tax evasion, audit timeframe and tax penalty
charged; and (3) to assess if tax auditors followed the guidelines as
stated in the 'Tax Audit Framework' when conducting tax audits. In
2011, the Inland Revenue Board Malaysia (IRBM) had audited and
finalized 557 company cases. With official permission, data of all the
557 cases were obtained from the IRBM. Of these, a total of 421 cases
with complete information were analyzed. About 58.1% was small and
medium corporations and from the construction industry (32.8%). The
selection for tax audit was based on risk analysis (66.8%), information
from third party (11.1%), and firm with low profitability or fluctuating
profit pattern (7.8%). The three persistent causes of tax evasion by
firms were over claimed expenses (46.8%), fraudulent reporting of
income (38.5%) and overstating purchases (10.5%). These findings
are consistent with past literature. Results showed that tax auditors
took six to 18 months to close audit cases. More than half of tax
evaders were fined 45% on additional tax raised during audit for the
first offence. The study found tax auditors did follow the guidelines in
the 'Tax Audit Framework' in audit selection, settlement and penalty
imposition.
Abstract: In Algeria, liberalization reforms undertaken since the 1990s have resulted in negative effects on the development and management of irrigation schemes, as well as on the conditions of farmers. Reforms have been undertaken to improve the performance of irrigation schemes, such as the national plan of agricultural development (PNDA) in 2000 and the water pricing policy of 2005. However, after implementation of these policies, questions have arisen with regard to irrigation performance and its suitability for agricultural development. Hence, the aim of this paper is to provide insight into the profitability of irrigation during the transition period under current irrigation agricultural policies in Algeria. By using the method of farm crop budget analysis in the East Mitidja irrigation scheme, the returns from using surface water resources based on farm typology were found to vary among crops and farmers- groups within the scheme. Irrigation under the current situation is profitable for all farmers, including both those who benefit from subsidies and those who do not. However, the returns to water were found to be very sensitive to crop price fluctuations, particularly for non-subsidized groups and less so for those whose farming is based on orchards. Moreover, the socio-economic environment of the farmers contributed to less significant impacts of the PNDA policy. In fact, the limiting factor is not only the water, but also the lack of land ownership title. Market access constraints led to less agricultural investment and therefore to low intensification and low water productivity. It is financially feasible to recover the annual O&M costs in the irrigation scheme. By comparing the irrigation water price, returns to water, and O&M costs of water delivery, it is clear that irrigation can be profitable in the future. However, water productivity must be improved by enhancing farmers- income through farming investment, improving assets access, and the allocation of activities and crops which bring high returns to water; this could allow the farmers to pay more for water and allow cost recovery for water systems.
Abstract: The review performed on the condition of energy
consumption & rate in Iran, shows that unfortunately the subject of
optimization and conservation of energy in active industries of
country lacks a practical & effective method and in most factories,
the energy consumption and rate is more than in similar industries of
industrial countries. The increasing demand of electrical energy and
the overheads which it imposes on the organization, forces
companies to search for suitable approaches to optimize energy
consumption and demand management. Application of value
engineering techniques is among these approaches. Value
engineering is considered a powerful tool for improving profitability.
These tools are used for reduction of expenses, increasing profits,
quality improvement, increasing market share, performing works in
shorter durations, more efficient utilization of sources & etc.
In this article, we shall review the subject of value engineering and
its capabilities for creating effective transformations in industrial
organizations, in order to reduce energy costs & the results have
been investigated and described during a case study in Mazandaran
wood and paper industries, the biggest consumer of energy in north
of Iran, for the purpose of presenting the effects of performed tasks
in optimization of energy consumption by utilizing value engineering
techniques in one case study.