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IJGMSP (v3:n1)

Volume 3, Number 1


CONTENTS

Share price anticipation of future earnings in the presence of financial leverage, proprietary cost and institutional ownership: Evidence from MENA emerging markets. Ben Othman Hakim, Hussainey Khaled, and Moumen Nejia

Promoting Employee Empowerment Practices in Small Firms in Developing Nations - The Case of Botswana. Temtime, Z.T., Tesfayohannes, M., and Nyakudya, M.N.

Accounting Processes Outsourced - Is it putting the last nail in the Coffin of 'Trust' in the Accounting Profession? Kiran Sahrawat and Denis Bourke

College Student Online Learning Readiness: A Comparison of Students in the U.S.A., Australia and China. J. Kirk Atkinson, Ray Blankenship, and Scott Droege





ABSTRACTS

Share price anticipation of future earnings in the presence of financial leverage, proprietary cost and institutional ownership: Evidence from MENA emerging markets

Dr. Ben Othman Hakim*

TBS-University of Tunis
LIGUE-University of Manouba

Dr. Hussainey Khaled

Senior Lecturer in Accounting
Stirling Management School
University of Stirling, UK

Moumen Nejia

PhD. Student at ISCAE,
LIGUE-University of Manouba, Tunisia


Contact Information:

Hakim BEN OTHMAN, Maitre de Conferences Agrege at Tunis Business School, University of Tunis
Street Address: Tunis Business School, Office N°1-12, El Mourouj 2074, TUNISIA
Mail Drop: PO.Box n°65, Bir El Kassaa 2059, TUNISIA
Tel.: (216) 71.470.570 / 71.476.600 (Extension: 272). Mobile: (216) 98.357.789. Fax.: (216) 71.477.555
E-mail: hakim.bo@planet.tn / hakimbenothman@tbs.rnu.tn


Abstract

This study investigates share price anticipation of future earnings in the context of Middle Eastern and North African (MENA) emerging countries. We also examine whether the relationship between stock return and future earnings vary with companies' financial leverage level, in the presence of proprietary costs and institutional ownership.In this paper, we use the modified future earnings response coefficient model (FERC) of Collins et al (1994) to measure the ability of stock prices to predict future earnings in the presence of institutional owners, political and proprietary cost for a sample of 69 firms in MENA emerging capital markets and during the period of 2005-2008. Our research model builds on multiple regression analysis and assumes interaction between current and future earnings and the above mentioned variables. We show that the informativeness of current earnings is negatively associated with financial leverage level, institutional ownership and proprietary cost. Our results indicate moreover that the presence of institutional owners do not help stock prices predict future earnings. Furthermore, neither firms' leverage nor lower market entries barrier seems to have an impact on current returns anticipation of future earnings.


Providing evidence on the information content of earnings and its interaction with some proprietary, political and governance factors in the context of MENA emerging markets helps to a better understanding for capital market participants of the value relevance of such financial information.

This study adds to the literature on share price anticipation of earnings in two crucial respects. First, on a theoretical basis we consider the effect of Proprietary Cost, political cost and institutional ownership on the future return earnings relationship. Second, we give some insight into the future return-earnings relation in MENA emerging countries.Promoting Employee Empowerment Practices in Small Firms in Developing Nations-The Case Of Botswana

Temtime, Z.T.

University of Botswana
Department of Management
temtimez@mopipi.ub.bw


Tesfayohannes, M.

Sigmund Weis School of Business
Susquehanna University
tesfayohannes@susqu.edu

Nyakudya, M.N.

University of Botswana
Department of Management
nyakudyam@mopipi.ub.bw



Abstract

This empirical paper critically examines the perceived importance and actual implementation of Employee Empowerment (hereafter EE) practices in Small and Medium-sized Enterprises (hereafter SMEs) in Botswana. We administered and analyzed a survey questionnaire to 85 owner/managers of SMEs in Gaborone (Botswana) using descriptive and inferential statistics supported by qualitative analysis. Our findings show that the level of actual implementation of EE practices is significantly lower than the degree of importance attached to them. Moreover, our study identified implementation differences between SMEs and large firms. Smaller firms seem to be less involved in formal EE activities than do their larger counter parts due to their informal nature, short term and unsystematic in their operational practices. We recommended that SMEs should be encouraged to develop strategic awareness about the potential advantages of practicing EE initiatives. Since our findings are based on intuitional and subjective perceptions of owner/managers of SMEs, the conclusions must be considered tentative and interpreted with care. We propose that future research should focus on the HOWs and WHYs of actual processes through which SMEs motivate and encourage employees to improve quality, productivity and performance. Our paper is the first of its kind in the context of Botswana and we believe that it will be an important contribution to the existing literature and foundation for further studies in the area.

Keywords: Botswana, Employee Empowerment, Human Resources Management, Small Firms, SMEs.
Accounting Processes Outsourced - Is it putting the last nail
in the Coffin of 'Trust' in the Accounting Profession?
Kiran Sahrawat

Centre of Accounting
Open Polytechnic
Box 31914, Lower Hutt
New Zealand
Phone: 0064-4-9135547
Fax: 0064-4-914-5656
Email: Kiran.sahrawat@openpolytechnic.ac.nz

Denis Bourke

Centre of Accounting
Phone: 0064-4-9145723
Fax: 0064-4-914-5656
Email: Denis.bourke@openpolytechnic.ac.nz


Abstract

Research and empirical studies have shown that culture, societal values, and accounting values impact on financial statements, disclosures and outsourced or off shored business processes different cultures and value systems.Although outsourcing in areas of some manufacturing and servicing industries seem to be loosing their sheen in the Anglophone countries, but there seems to be an increasing trend in outsourcing accounting processes used in the development of financial reporting. A case of an accounting firm outsourcing accounting processes to India has been evaluated in the context of accounting culture and values' literature relevant to International Accounting Standards (IASs) in the current accounting climate in India. It is the authors view that by evaluating risks in outsourcing relationships (principal and agent), best practices for outsourcing accounting processes and development of financial statements from Anglophone to non-Anglophone counties like India or Malaysia should be put in place.

Key words: offshore; outsourcing; accounting-processes; culture; values; best-practice.These findings have some serious implications for both IT managers and security experts consulting to business and industry.



College Student Online Learning Readiness:

A Comparison of Students in the U.S.A., Australia and ChinaJ. Kirk Atkinson
Assistant Professor - CIS/CIT
Western Kentucky University

Ray Blankenship

Associate Professor - CIS/CIT
Western Kentucky University

Scott Droege

Associate Professor - Management
Western Kentucky University


Abstract

Student online learning readiness continues to influence most universities including all areas from their curricular development and pedagogies to entire academic divisions. Measuring student readiness should also be of concern by universities in order to better face this challenge. The McVay Online Readiness Survey (2000, 2001) previously administered to Australian university students utilized a factor analysis to identify two primary factors for assessing the reliability and factorability of the instrument. Further research included U.S. undergraduate students at a public university in the United States seemed to confirm the findings. The results from the two studies are compared to new survey results for students from China. Significance in differences between multinational learners is useful as one predictor of success in online formal post-secondary courses. It may also determine whether online learning models that work in western culture will persist in other cultures around the world.


Keywords: online learning, factors, online readiness