FALL 2007
VOLUME 8, NUMBER 2

BUDGET DEFICITS, OIL PRICES AND INTEREST RATES

Sanjay Paul and Hossein Varamini

The study investigates the effect of budget deficits, economic growth, money supply and the price of oil on interest rates. We develop a theoretical framework to show how interest rates are determined. We test our model using quarterly data in the United States, Canada and

Germany, seeking to explain both short-term and long-term interest rates. The results show that, generally, interest rates are not affected by changes in budget deficits, lending (qualified) empirical support to the Ricardian equivalence proposition. We also determine the effects of GDP growth, money supply and the price of oil on short-term and long-term interest rates in the three countries.


https://doi.org/10.51240/jibe.2007.2.1          PDF

CO-MOVEMENTS OF PACIFIC-BASIN STOCK MARKETS: PORTFOLIO DIVERSIFICATION IMPLICATIONS

Ilhan Meric, Joe H. Kim, Lewis W. Coopersmith, and Gulser Meric

This paper studies the co-movements of and the linkages between twelve Pacific-Basin stock markets during the June 1995-May 2005 period. We use the principal components analysis (PCA) technique to group the stock markets into statistically significant principal components in terms of the similarities of their index return movements. The rolling correlation analysis results show that correlation between the Pacific-Basin stock markets has considerable time-varying volatility. The Granger causality test results indicate that the weekly index returns of most Pacific-Basin stock markets are weak-form efficient and that most Pacific-Basin stock markets have significant lead/lag linkages. The study investigates the portfolio diversification implications of the linkages between the Pacific-Basin stock markets.


https://doi.org/10.51240/jibe.2007.2.2          PDF

ON THE INTERNET, NOBODY KNOWS YOU'RE A GIRL: THE FEMALE PERFORMANCE ADVANTAGE IN ANONYMOUS VIRTUAL TEAMS

Emmeline de Pillis and Kimberly Furumo

As work is increasingly done across borders, the quality of this work depends upon electronically connected virtual teams. We examine the performance of women and men in face-to-face versus anonymous virtual teams. In anonymous virtual teams, women significantly outperformed men. The performance of face-to-face teams was better overall than that of anonymous virtual teams, and women’s performance was equivalent to that of men in face to face teams. While virtual teams experience lower performance and satisfaction than face to face teams overall, this difference appears to be due to lowered performance in men.


https://doi.org/10.51240/jibe.2007.2.3          PDF

DOMESTIC INDUSTRIAL ENVIRONMENTAL COST AND STRATEGIC CHOICE IN DEVELOPING COUNTRIES

Dechun Huang, Zhibiao Liu, Andrew F. Thompson, and Jie Chen

This paper examines competitive issues related to environmental policies like the European Union directives on Waste Electrical and Electronic Equipment and Restriction on Hazardous Substances implemented in 2006. In order to examine strategic environmental choice implications related to these directives, a vertical market model developed by Stephen F. Hamilton in analyzing competitive choice amongst domestic and foreign, downstream and upstream companies in the presence of environmental constraints was adopted. The main conclusion is that industrial and environmental policies in developing countries should be refocused so as to realize the integration of the environmental cost by internalizing the externalities.


https://doi.org/10.51240/jibe.2007.2.4          PDF

CORPORATE GOVERNANCE CHANGE AND MANAGEMENT PERFORMANCE: AN EXPLORATORY STUDY OF A KOREAN COMPANY - MANDO CORPORATION

Bryan Min and Dong-Jae Kim

Triggered by the Asian financial crisis in 1997, corporate governance has become an important topic for many Korean companies. Particularly, Korea‟s large family-owned conglomerates, chaebols, went through significant changes in terms of corporate governance. There has been a widely held belief that the lack of proper corporate governance in Korean companies, notably chaebols, forces them to suffer from low performance. Changes in corporate governance, therefore, is expected to enhance company performance. This paper is an exploratory study to address this issue. Specifically, it has an indepth look at the case of Mando Corporation to show how corporate governance improved management performance in terms of increasing shareholder value. The roles of the board of directors, large shareholders, and professional managers are explained and contrasted in the context of rapidly evolving dynamics of changes in the corporate governance of the company.


https://doi.org/10.51240/jibe.2007.2.5          PDF

HUMAN RESOURCES MANAGEMENT IN A BELGIAN PUBLIC COMPANY

Anne Goujon Belghit

Within the next few years, human resource management practiced in public companies will undergo some major changes. In this context we will address the following question: What are the human resource management practices in the bureaucratic-type public company in the years 2000 on the verge of opening national market to competition? The results, obtained thanks to the Alceste software, through semi directive interviews with SNCB representatives, have shown the originality and the complexity of the type of management applied in this structure.


https://doi.org/10.51240/jibe.2007.2.6          PDF