Search results for: theory of the firm

Authors: Murad Ali, Anderson Konan Seny Kan, Khalid A. Maimani

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Based on the theory of organizational design and the theory of knowledge, this study uses complexity theory to explain and better understand the causal impacts of various patterns of organizational structural factors stimulating absorptive capacity (ACAP). Organizational structure can be thought of as heterogeneous configurations where various components are often intertwined. This study argues that impact of the traditional variables which define a firm’s organizational structure (centralization, formalization, complexity and integration) on ACAP is better understood in terms of set-theoretic relations rather than correlations. This study uses a data sample of 347 from a multiple industrial sector in South Korea. The results from PLS-SEM support all the hypothetical relationships among the variables. However, fsQCA results suggest the possible configurations of centralization, formalization, complexity, integration, age, size, industry and revenue factors that contribute to high level of ACAP. The results from fsQCA demonstrate the usefulness of configurational approaches in helping understand equifinality in the field of knowledge management. A recent fsQCA procedure based on a modeling subsample and holdout subsample is use in this study to assess the predictive validity of the model under investigation. The same type predictive analysis is also made through PLS-SEM. These analyses reveal a good relevance of causal solutions leading to high level of ACAP. In overall, the results obtained from combining PLS-SEM and fsQCA are very insightful. In particular, they could help managers to link internal organizational structural with ACAP. In other words, managers may comprehend finely how different components of organizational structure can increase the level of ACAP. The configurational approach may trigger new insights that could help managers prioritize selection criteria and understand the interactions between organizational structure and ACAP. The paper also discusses theoretical and managerial implications arising from these findings.

Keywords: absorptive capacity, organizational structure, PLS-SEM, fsQCA, predictive analysis, modeling subsample, holdout subsample

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Authors: Abdel-Aziz M. Mohamed

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This paper presents a state-of-the-art survey of the operations research models developed for internal audit planning. Two alternative approaches have been followed in the literature for audit planning: (1) identifying the optimal audit frequency; and (2) determining the optimal audit resource allocation. The first approach identifies the elapsed time between two successive audits, which can be presented as the optimal number of audits in a given planning horizon, or the optimal number of transactions after which an audit should be performed. It also includes the optimal audit schedule. The second approach determines the optimal allocation of audit frequency among all auditable units in the firm. In our review, we discuss both the deterministic and probabilistic models developed for audit planning. In addition, game theory models are reviewed to find the optimal auditing strategy based on the interactions between the auditors and the clients.

Keywords: operations research applications, audit frequency, audit-staff scheduling, audit planning

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Authors: Caroline Kim

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The designation autism spectrum disorder (ASD) groups complex disorders in the development of the brain. Autism is defined essentially as a condition in which an individual lacks a theory of mind. The theory of mind, in this sense, explains the ability of an individual to attribute feelings, emotions, or thoughts to another person. An autistic patient is characteristically unable to determine what an interlocutor is feeling, or to understand the beliefs of others. However, it is possible that autism cannot plausibly characterized as the lack of theory of mind in an individual. Genes, the bran, and its interplay with environmental factors may also cause autism. A mutation in a gene may be hereditary, or instigated by diseases such as mumps. Though an autistic patient may experience abnormalities in the cerebellum and the cortical regions, these are in fact only possible theories as to a biochemical explanation behind the disability. The prevailing theory identifying autism with lacking the theory of mind is supported by behavioral observation, but this form of observation is itself determined by socially constructed standards, limiting the possibility for empirical verification. The theory of mind infers that the beliefs and emotions of people are causally based on their behavior. This paper demonstrates the fallacy of this inference, critiquing its basis in socially constructed values, and arguing instead for a biochemical approach free from the conceptual apparatus of language and social expectation.

Keywords: autism spectrum disorder, sociology of psychology, social construction, the theory of mind

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Authors: Jonathan H. Westover, Jacque P. Westover, Maureen S. Andrade

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Though learning theories vary in complexity and usefulness, a thorough understanding of foundational learning theories is a necessity in today’s educational environment. Additionally, learning theories lead to approaches in instruction that can affect student motivation and learning. The combination of a learning theory and elements to enhance student motivation can create a learning context where the student can thrive in their educational pursuits. This paper will provide an overview of three main learning theories: (1) Behavioral Theory, (2) Cognitive Theory, and (3) Constructivist Theory and explore their connection to elements of student learning motivation. Finally, we apply these learning theories and elements of student motivation to the following two context: (1) The FastStart Program at the Community College of Denver, and (2) An Online Academic English Language Course. We discussed potential of the program and course to have success in increasing student success outcomes.

Keywords: learning theory, student motivation, inclusive pedagogy, developmental education

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Authors: Ali Oveysi Sarabi

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The dimensions of nanostructures are in the range of inter-atomic spacing of the structures which makes them impossible to be modeled as a continuum. Nanoscale size-effects on vibration analysis of nanobeams embedded in an elastic medium is investigated using different types of beam theory. To this end, Eringen’s nonlocal elasticity is incorporated to various beam theories namely as Euler-Bernoulli beam theory (EBT), Timoshenko beam theory (TBT), Reddy beam theory (RBT), and Levinson beam theory (LBT). The surrounding elastic medium is simulated with both Winkler and Pasternak foundation models and the difference between them is studies. Explicit formulas are presented to obtain the natural frequencies of nanobeam corresponding to each nonlocal beam theory. Selected numerical results are given for different values of the non-local parameter, Winkler modulus parameter, Pasternak modulus parameter and aspect ratio of the beam that imply the effects of them, separately. It is observed that the values of natural frequency are strongly dependent on the stiffness of elastic medium and the value of the non-local parameter and these dependencies varies with the value of aspect ratio and mode number.

Keywords: nanobeams, free vibration, nonlocal elasticity, winkler foundation model, Pasternak foundation model, beam theories

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Authors: Elzbieta Babula, Juhyun Park

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Tversky and Kahneman’s cumulative prospect theory assumes symmetric probability cumulation with regard to the reference point within decision weights. Theoretically, this model should be invariant under the change of the direction of probability cumulation. In the present study, this phenomenon is being investigated by creating a reference model that allows verifying the parameter interactions in the cumulative prospect theory specifications. The simultaneous parametric fitting of utility and weighting functions is applied to binary choice data from the experiment. The results show that the flexibility of the probability weighting function is a crucial characteristic allowing to prevent parameter interactions while estimating cumulative prospect theory.

Keywords: binary choice experiment, cumulative prospect theory, decision weights, parameter interactions

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Authors: Manouchehr Amiri

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This article introduces a general notion of physical bit information that is compatible with the basics of quantum mechanics and incorporates the Shannon entropy as a special case. This notion of physical information leads to the Binary data matrix model (BDM), which predicts the basic results of quantum mechanics, general relativity, and black hole thermodynamics. The compatibility of the model with holographic, information conservation, and Landauer’s principles are investigated. After deriving the “Bit Information principle” as a consequence of BDM, the fundamental equations of Planck, De Broglie, Beckenstein, and mass-energy equivalence are derived.

Keywords: physical theory of information, binary data matrix model, Shannon information theory, bit information principle

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Authors: Mustafa Arda, Metin Aydogdu

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Carbon nanotubes (CNTs) have many possible application areas because of their superior physical properties. Nonlocal Theory, which unlike the classical theories, includes the size dependency. Nonlocal Stress and Strain Gradient approaches can be used in nanoscale static and dynamic analysis. In the present study, torsional vibration of CNTs was investigated according to nonlocal stress and strain gradient theories. Effects of the small scale parameters to the non-dimensional frequency were obtained. Results were compared with the Molecular Dynamics Simulation and Lattice Dynamics. Strain Gradient Theory has shown more weakening effect on CNT according to the Stress Gradient Theory. Combination of both theories gives more acceptable results rather than the classical and stress or strain gradient theory according to Lattice Dynamics.

Keywords: torsional vibration, carbon nanotubes, nonlocal gradient theory, stress, strain

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Authors: Alexander Gretchenko, Liudmila Goncharenko, Sergey Sybachin

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This article summarizes the history of the discovery of N.D. Kondratiev of large cycles of economic conditions, as well as the creation and justification of the theory of innovation-cyclical economic development of Kondratiev-Schumpeter. An analysis of it in modern conditions is providing. The main conclusion in this article is that in general terms today it can be argued that the Kondratiev-Schumpeter theory is sufficiently substantiated. Further, the possibility of making a forecast of the development of the economic situation in the direction of applying this theory in practice, which demonstrate its effectiveness, is considered.

Keywords: Kondratiev's big cycles of economic conjuncture, Schumpeter's theory of innovative economic development, long-term cyclical forecasting, dating of Kondratiev cycles

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Authors: A. Yacob, N. Hj. Ali, M. H. Yusoff, M. Y. MohdSaman, W. M. A. F. W. Hamzah

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Personalized learning becomes increasingly popular which not is restricted by time, place or any other barriers. This study proposes an analysis of Personalized Learning using Item Response Theory which considers course material difficulty and learner ability. The study investigates twenty undergraduate students at TATI University College, who are taking programming subject. By using the IRT, it was found that, finding the most appropriate problem levels to each student include high and low level test items together is not a problem. Thus, the student abilities can be asses more accurately and fairly. Learners who experience more anxiety will affect a heavier cognitive load and receive lower test scores. Instructors are encouraged to provide a supportive learning environment to enhance learning effectiveness because Cognitive Load Theory concerns the limited capacity of the brain to absorb new information.

Keywords: assessment, item response theory, cognitive load theory, learning, motivation, performance

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Authors: Lipeng Zhang, Limei Li, Yanming Pearl Zhang

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This paper takes a philosophical view as axiom, and reveals the relationship between information theory and Natural Intelligence and Artificial Intelligence under real world conditions. This paper also derives the relationship between natural intelligence and nature. According to communication principle of information theory, Natural Intelligence can be divided into real part and virtual part. Based on information theory principle that Information does not increase, the restriction mechanism of Natural Intelligence creativity is conducted. The restriction mechanism of creativity reveals the limit of natural intelligence and artificial intelligence. The paper provides a new angle to observe natural intelligence and artificial intelligence.

Keywords: natural intelligence, artificial intelligence, creativity, information theory, restriction of creativity

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Authors: Monika Zalewska

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Hans Kelsen was a versatile legal thinker whose achievements in the fields of legal theory, international law, and the theory of democracy are remarkable. All of the fields tackled by Kelsen are regarded as part of his “pure theory of law.” While the link between international law and Kelsen’s pure theory of law is apparent, the same cannot be said about the link between the theory of democracy and his pure theory of law. On the contrary, the general thinking concerning Kelsen’s thought is that it can be used to legitimize authoritarian regimes. The aim of this presentation is to address this concern by identifying the common ground between Kelsen’s pure theory of law and his theory of democracy and to show that they are compatible in a way that his pure theory of law and authoritarianism cannot be. The conceptual analysis of the purity of Kelsen’s theory and his goal of creating ideology-free legal science hints at how Kelsen’s pure theory of law and the theory of democracy are brought together. The presentation will first demonstrate that these two conceptions have common underlying values and meta-ethical convictions. Both are founded on relativism and a rational worldview, and the aim of both is peaceful co-existence. Second, it will be demonstrated that the separation of law and morality provides the maximum space for deliberation within democratic processes. The conclusion of this analysis is that striking similarities exist between Kelsen’s legal theory and his theory of democracy. These similarities are grounded in the Enlightenment tradition and its values, including rationality, a scientific worldview, tolerance, and equality. This observation supports the claim that, for Kelsen, legal positivism and the theory of democracy are not two separate theories but rather stem from the same set of values and from Kelsen’s relativistic worldview. Furthermore, three main issues determine Kelsen’s orientation toward a positivistic and democratic outlook. The first, which is associated with personality type, is the distinction between absolutism and relativism. The second, which is associated with the values that Kelsen favors in the social order, is peace. The third is legality, which creates the necessary condition for democracy to thrive and reveals that democracy is capable of fulfilling Kelsen’s ideal of law at its fullest. The first two categories exist in the background of Kelsen’s pure theory of law, while the latter is an inherent part of Kelsen’s concept of law. The analysis of the text concerning natural law doctrine and democracy indicates that behind the technical language of Kelsen’s pure theory of law is a strong concern with the trends that appeared after World War I. Despite his rigorous scientific mind, Kelsen was deeply humanistic. He tried to create a powerful intellectual weapon to provide strong arguments for peaceful coexistence and a rational outlook in Europe. The analysis provided by this presentation facilitates a broad theoretical, philosophical, and political understanding of Kelsen’s perspectives and, consequently, urges a strong endorsement of Kelsen’s approach to constitutional democracy.

Keywords: hans kelsen, democracy, legal positivism, pure theory of law

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Authors: Amir Hadi Ziaie, Mostafa Hashemi, Shahram Jalalzadeh

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It is now known that the end state of the collapse process of a dense star under its own gravity is the formation of a spacetime singularity. This is the spacetime event where the energy density and spacetime curvature diverge, and the classical general relativity breaks down. As we know, a realistic star is composed of fermions so that their spin effects could alter the final fate of the collapse scenario. The underlying theory within which the inclusion of spin effects can be worked out is the Einstein-Cartan theory. In this theory, the spacetime torsion which is defined as a geometrical quantity, is related to an intrinsic angular momentum of fermions (spin). In this work, we study the collapse process of a homogeneous spin fluid in such a framework and show that taking into account the spin effects of the collapsing cloud could prevent the formation of spacetime singularity.

Keywords: gravitational collapse, einstein-cartan theory, spacetime singularity, black hole physics

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Authors: Salah Eddine Ben Fadhel

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Lev Vygotsky (1896–1934) was one of the most significant psychologists of the twentieth century despite his short life. His cultural-historical theory is still inspiring many researchers today. At the same time, we observe in many studies a lack of understanding of his thoughts. Vygotsky poses in this theory the contribution of society to individual development and learning. Thus, it suggests that human learning is largely a social and cultural process, further mentioning the influence of interactions between people and the culture in which they live. In this presentation, we highlight, on the one hand, the strong points of the theory by highlighting the major questions it raises and its contribution to developmental psychology in general. On the other hand, we will demonstrate what Vygotsky's theory brings today to the understanding of the cognitive development of children and adolescents. The major objective is to better understand the cognitive mechanisms involved in the learning process in children and adolescents and, therefore, demonstrate the complex nature of psychological development. The main contribution is to provide conceptual insight, which allows us to better understand the importance of the theory and its major pedagogical implications.

Keywords: vygotsky, society, culture, history

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Authors: Arpine Maghakyan

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The purpose of this paper is to study the relationship between the level of industry digitalization and audit fees, especially, the relationship between Big 4 auditor fees and industry digitalization level. On the one hand, automation of business processes decreases internal control weakness and manual mistakes; increases work effectiveness and integrations. On the other hand, it may cause serious misstatements, high business risks or even bankruptcy, typically in early stages of automation. Incomplete automation can bring high audit risk especially if the auditor does not fully understand client’s business automation model. Higher audit risk consequently will cause higher audit fees. Higher audit fees for clients with high automation level are more highlighted in Big 4 auditor’s behavior. Using data of US firms from 2005-2015, we found that industry level digitalization is an interaction for the auditor quality on audit fees. Moreover, the choice of Big4 or non-Big4 is correlated with client’s industry digitalization level. Big4 client, which has higher digitalization level, pays more than one with low digitalization level. In addition, a high-digitalized firm that has Big 4 auditor pays higher audit fee than non-Big 4 client. We use audit fees and firm-specific variables from Audit Analytics and Compustat databases. We analyze collected data by using fixed effects regression methods and Wald tests for sensitivity check. We use fixed effects regression models for firms for determination of the connections between technology use in business and audit fees. We control for firm size, complexity, inherent risk, profitability and auditor quality. We chose fixed effects model as it makes possible to control for variables that have not or cannot be measured.

Keywords: audit fees, auditor quality, digitalization, Big4

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Authors: G. C. Surya Bahadur, Ranjana Kothari

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The paper attempts to analyze linkages between corporate governance and firm performance in India. The study employs a panel data of 50 Nifty companies from 2008 to 2012. Using LSDV panel data model and 2SLS model the study reveals that that good corporate governance practices adopted by companies is positively related with financial performance. Board independence, number of board committees and executive compensation are found to have positive relationship while ownership by promoters and financial leverage have negative relationship with performance. There is existence of bi-directional relationship between corporate governance and financial performance. Companies with sound financial performance are more likely to conform to corporate governance norms and standards and implement sound corporate governance system. The findings indicate that companies can enhance business performance and sustainability by embracing sound corporate governance practices.

Keywords: board structure, corporate governance, executive compensation, ownership structure

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Authors: Shazia Ali, Yves Mard, Éric Severin

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To the best of our knowledge, this is the first study to have analyzed the impact of a) firm-specific product-market power and b) industry competition on earnings management behavior of European firms in distress versus healthy years while controlling for firm-level characteristics. We predicted a significant relationship between firms’ product market power and earnings management tools and their trade-off under the moderation effect of financial distress. We found that the firm-level market power hereinafter referred to as MP (proxied by the industry-adjusted Lerner Index) is positively associated with both real and accrual earnings management. However, MP is associated with a higher level of real earnings management compared to accrual earnings management in distress years compared to healthy years. On the other hand, industry product market power (representing low competition and proxied by the inverse of the total number of firms in an industry hereinafter referred to as NUMB) and firms product market power (proxied by firm market share hereinafter referred to as MS) are associated with lower inflationary accruals and higher deflationary accruals respectively. On the other hand, they are found to be linked with higher real earnings management in distress versus healthy years. When we divided the sample into small and big firms based on their respective industry-year median total assets, we found that all three measures of industry competition (Industry Median Lerner Index (hereinafter referred to as IMLI), NUMB, and Herfindahl–Hirschman Index (hereinafter referred to as HHI) indicate that small firms in low-competitive industries in financial distress are more likely to inflate their earnings through discretionary accruals. While big firms in this situation are more likely to lower the use of both inflationary and deflationary discretionary accruals as indicated by IMLI and HHI and trade-off accruals earnings management for real earnings management as indicated by NUMB. Moreover, IMLI and HHI did not show any interesting results when we divided the sample based on the firm Lerner Index/Market Power. However, the distressed firms with high market power (MP>industry median) are found to engage in income-decreasing discretionary accruals in low-competitive industries (high NUMB). Whereas firms with low market power in the same industry use downward discretionary accruals but inflate income using real activities (abnCFO). Our findings are robust across alternate measures of discretionary accruals and financial distress, such as the Altman Z-Score. The finding of the study is valuable for accounting standard setters, competition authorities, policymakers, and investors alike to help in informed decision-making.

Keywords: financial distress, earnings management, market competition

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Authors: Reza Safari, Ali Rajabzadeh Ghatari, Raheleh Hossseinzadeh Mahabadi

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In the present world, there are different pressures on firms such as competition, legislations, social etc. these pressures force the firms to follow “survival” as their primary goal and then growth. One of the main factors that helps firms to reach their goals is proper financial performance. To find out about the financial performance, a firm should monitors its financial performance. Financial performance affected by many factors. This research seeks to clear which financial performance indicators are most important according to Environmental situation of a firm and what are their priorities. To do so, environmental indicators specified as presented on OECD Key Environmental Indicators 2008 and so the financial performance indicators such as Profitability, Liquidity, Gearing, Investor ratios, and etc. At this stage, the affections questioned through questionnaires. After gaining the results, data analyzed using Promethee technique. By using decision matrixes extracted from those techniques an expert system designed. This expert system suggests the suitable financial performance indicators and their ranking by receiving the environment situation given environment indicators weight.

Keywords: environment indicators, financial performance indicators, promethee, expert system

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Authors: Hussain Bohra, Pradyuman Sharma

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This study highlights the significance of Balance Sheet Indicators on the corporate performance in the case of Indian manufacturing companies. Balance sheet indicators show the actual financial health of the company and it helps to the external investors to choose the right company for their investment and it also help to external financing agency to give easy finance to the manufacturing companies. The period of study is 2000 to 2014 for 813 manufacturing companies for which the continuous data is available throughout the study period. The data is collected from PROWESS data base maintained by Centre for Monitoring Indian Economy Pvt. Ltd. Panel data methods like fixed effect and random effect methods are used for the analysis. The Likelihood Ratio test, Lagrange Multiplier test and Hausman test results proof the suitability of the fixed effect model for the estimation. Return on assets (ROA) is used as the proxy to measure corporate performance. ROA is the best proxy to measure corporate performance as it already used by the most of the authors who worked on the corporate performance. ROA shows return on long term investment projects of firms. Different ratios like Current Ratio, Debt-equity ratio, Receivable turnover ratio, solvency ratio have been used as the proxies for the Balance Sheet Indicators. Other firm specific variable like firm size, and sales as the control variables in the model. From the empirical analysis, it was found that all selected financial ratios have significant and positive impact on the corporate performance. Firm sales and firm size also found significant and positive impact on the corporate performance. To check the robustness of results, the sample was divided on the basis of different ratio like firm having high debt equity ratio and low debt equity ratio, firms having high current ratio and low current ratio, firms having high receivable turnover and low receivable ratio and solvency ratio in the form of firms having high solving ratio and low solvency ratio. We find that the results are robust to all types of companies having different form of selected balance sheet indicators ratio. The results for other variables are also in the same line as for the whole sample. These findings confirm that Balance sheet indicators play as significant role on the corporate performance in India. The findings of this study have the implications for the corporate managers to focus different ratio to maintain the minimum expected level of performance. Apart from that, they should also maintain adequate sales and total assets to improve corporate performance.

Keywords: balance sheet, corporate performance, current ratio, panel data method

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Authors: Halleh Nejadriahi, Kamyar Arab

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Computer-aided design (CAD) tools have been extensively used by the architects for the several decades. It has evolved from being a simple drafting tool to being an intelligent architectural software and a powerful means of communication for architects. CAD plays an essential role in the profession of architecture and is a basic tool for any architectural firm. It is not possible for an architectural firm to compete without taking the advantage of computer software, due to the high demand and competition in the architectural industry. The aim of this study is to evaluate the impacts of CAD on the architectural design process from conceptual level to final product, particularly in architectural practice. It examines the range of benefits of integrating CAD into the industry and discusses the possible defects limiting the architects. Method of this study is qualitatively based on data collected from the professionals’ perspective. The identified benefits and limitations of CAD on the architectural design process will raise the awareness of professionals on the potentials of CAD and proper utilization of that in the industry, which would result in a higher productivity along with a better quality in the architectural offices.

Keywords: architecture, architectural practice, computer aided design (CAD), design process

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Authors: Tarik Elaujali

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This study examines a new media effective theory was developed by the author, it is called ‘The Effervescent Disk Theory’ (EDT). The theory main goal is to affect the unaffected audience who are either not exposing to a particular message or do not show interest in it. EDT suggest melting down messages that means to be affected within the media materials which are selected willingly by the audience themselves. A certain set of procedures to test EDT hypotheses were taken and illustrated in this study. A sample of 342 respondents (males & females) was collected from Tripoli University in Libya during the academic year 2013-2014. The designated sample is representing students who were failing to pass the English module for beginners’. This study aims to change the students’ negative notion about the importance of learning English, and to put their new idea into action. The theory seeks to affect audience cognition, emotions, and behaviors. EDT was applied in the present study alongside the media dependency theory. EDT hypotheses were confirmed, study results denoted that 73.6 percentage of the students responded positively and passed their English exam for beginners after being exposed selectively to their favorite TV program that contains a dissolved messages about the importance and vitality of learning English language.

Keywords: effervescent disk theory, selective exposure, media dependency, Libyan students

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Authors: Ginés Hernández-Cánovas, Mª Camino Ramón-Llorens, Johanna Koëter-Kant

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This paper uses a survey data-set of 837 Spanish SMEs to analyze the association between borrower discouragement and prior firm´s strategic decisions, while controlling for firm and owner characteristics. While existing literature has neglected factors limiting the demand for resources by an overreliance on arguments which attempt to explain the existence of discouraged borrowers solely in terms of lack of access to supply of credit. The objective of this paper is to show that factors limiting the demand for resources and, therefore, reducing the availability of funds, can be traced back to the firm manager´s decision. Our hypothesis is that managers that undertake strategic decisions seeking growth or improvement in their business performance participate more in the banking market than those showing contentment with their current business situation. Our results shows that SMEs that undertake an active role in research and development activities and that achieve improvements in the operating performance of their business are less likely to be discouraged from applying for a loan. Who needs credit and who applies for credit is important for firms, prospective lenders and policymakers interested in the financial health of these firms. Credit constrained firms are less likely to invest in R&D and to introduce new products, possibly harming long-term economic growth. Knowing how important borrower discouragement is in Europe, is important for judging the priority which should be attached to government policies aimed at reducing its effects. For example, policy makers could encourage the transparency about credit eligibility and conditions in order to reduce discouragement.

Keywords: discouragement, financial constraints, SMEs financing

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Authors: Meiqun Yin, Jidong Zhang, Fan Liu

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The paper investigates the impact of social media on audit opinion. The numbers of posting and reposting negative reports from SINA Micro-blog are collected to measure the influence of social media. The research collected the samples from Chinese public firms from 2012 to 2014. It is found that the numbers of posting and reposting negative reports in SINA Micro-Blog would significantly relate to the qualified opinion while controlling firm size. Another finding is that the numbers of posting and reposting negative reports would be much more significantly impact on audit opinion if the firm received a qualified opinion in the previous period. It is also found that the involvement of more independent directors has no relationship with the influence of social media on audit opinion.

Keywords: association, social media, audit opinion, SINA Micro-Blog

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Authors: Leila M. Carvalho, Maria Erica S. Oliveira, Arnoud C. Neto, Elza I. Ida, Massami Shimokomaki, Marta S. Madruga

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The quality of broiler breast meat is changing as a result of the continuing emphasis on genetic selection for a more efficient meat production. Breast meat has been classified as PSE (pale, soft, exudative), DFD (dark, firm, dry) and normal color meat, and recently a third group has emerged: the so-called PFN (pale, firm, non-exudative) meat. This classification was based on pH, color and functional properties. The aim of this work was to confirm the existence of PFN and PSE meat by biochemical characterization and functional properties. Twenty four hours of refrigerated fillet, Pectoralis major, m. samples (n= 838) were taken from Cobb flocks 42-48 days old, obtained in Northeastern Brazil tropical region, the Northeastern, considered to have only dry and wet seasons. Color (L*), pH, water holding capacity (WHC), values were evaluated and compared with PSE group samples. These samples were classified as Normal (465.8), PSE meat (L*≥53; pH<5.8) and PFN (L*≥53; pH>5.8). The occurrence of control meat, PSE and PFN was 69.09%, 11.10% and 19.81%, respectively. Samples from PFN presented 4.0-5.0% higher WHC in relation to PSE meat and similar to control group. These results are explained by the fact that PSE meat syndrome occurs because of higher protein denaturation as the consequence of a simultaneous lower pH values under warm carcass sooner after slaughtering impairing the myofibril proteins functional properties. Conversely, PFN samples follow normal glycolysis rate maintaining the normal proteins activities. In conclusion, the results reported herein confirm the existence of this emerging broiler meat group with similar properties as control group and it should be considered as normal breast meat group.

Keywords: broiler breast meat, funcional properties, PFN, PSE

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Authors: Nana Kwasi Amoateng

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The paper uses secondary information to investigate some longstanding limitations in International Relations (IR) theory. Specifically, the analysis highlights IR theory through the lens of J. C. Sharman’s brilliant concept of outside-in state-building logic in which some states, particularly those in Africa, have relied mainly on foreign resources to address local threats. The key findings are that IR theory has been largely understood from the perspective of an inside-out state-building logic, whereby Western and other advanced states have heavily relied on local resources to address foreign threats. In this vein, IR theorists, including Critical Theorists, have not been able to fully grasp African states and states elsewhere that have generally relied on an outside-in logic of state-building. The paper helps to fill a major gap in IR theory, which has mainly addressed criticisms of being Euro- or Western-centric or failing to include the unique experiences of states and other actors in the Global South by developing critical theories such as post-colonial theory and neo-colonialism. Although this has helped to understand some experiences of actors in the Global South, the fundamental difference between state-building in the West and the Global South, particularly Africa, has not been adequately explored to fully comprehend why, despite the works of Critical Theorists, IR theory still fails to capture many political and socioeconomic realities in Africa and elsewhere.

Keywords: international relations theory, outside-in state-building logic, inside-out state-building logic, Africa

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Authors: Anmari Viljamaa, Elina Varamäki

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In this study we compare the profiles of transitory hybrid entrepreneurs and persistent hybrid entrepreneurs to determine how they differ. Hybrid entrepreneurs (HEs) represent a significant share of entrepreneurial activity yet little is known about them. We define HEs as individuals who are active as entrepreneurs but do no support themselves primarily by their enterprise. Persistent HEs (PHEs) are not planning to transition to fulltime entrepreneurship whereas transitory HEs (THEs) consider it probable. Our results show that THEs and PHEs are quite similar in background. THEs are more interested in increasing their turnover than PHEs, as expected, but also emphasize self-fulfillment as a motive for entrepreneurship more than PHEs. The clearest differences between THEs and PHEs are found in their views on how well their immediate circle supports full-time entrepreneurship, and their views of their own entrepreneurial abilities and the market potential of their firm. Our results support earlier arguments that hybrids should be considered separately in research on entrepreneurial entry and self-employment.

Keywords: hybrid entrepreneurship, part-time entrepreneurship, self-employment, Theory of Planned Behavior

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Authors: O. P. Rahi, Manoj Kumar

Abstract:

Power transformers are essential and expensive equipments in electrical power system. Dissolved gas analysis (DGA) is one of the most useful techniques to detect incipient faults in power transformers. However, the identification of the faulted location by conventional method is not always an easy task due to variability of gas data and operational variables. In this paper, an extension theory based power transformer fault diagnosis method is presented. Extension theory tries to solve contradictions and incompatibility problems. This paper first briefly introduces the basic concept of matter element theory, establishes the matter element models for three-ratio method, and then briefly discusses extension set theory. Detailed analysis is carried out on the extended relation function (ERF) adopted in this paper for transformer fault diagnosis. The detailed diagnosing steps are offered. Simulation proves that the proposed method can overcome the drawbacks of the conventional three-ratio method, such as no matching and failure to diagnose multi-fault. It enhances diagnosing accuracy.

Keywords: DGA, extension theory, ERF, fault diagnosis power transformers, fault diagnosis, fuzzy logic

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Authors: Miguel A. Orellana, Sonia E. Ruiz, Juan Bojórquez

Abstract:

Optimal load factors (dead, live and seismic) used for the design of buildings may be different, depending of the seismic ground motion characteristics to which they are subjected, which are closely related to the type of soil conditions where the structures are located. The influence of the type of soil on those load factors, is analyzed in the present study. A methodology that is useful for establishing optimal load factors that minimize the cost over the life cycle of the structure is employed; and as a restriction, it is established that the probability of structural failure must be less than or equal to a prescribed value. The life-cycle cost model used here includes different types of costs. The optimization methodology is applied to two groups of reinforced concrete buildings. One set (consisting on 4-, 7-, and 10-story buildings) is located on firm ground (with a dominant period Ts=0.5 s) and the other (consisting on 6-, 12-, and 16-story buildings) on soft soil (Ts=1.5 s) of Mexico City. Each group of buildings is designed using different combinations of load factors. The statistics of the maximums inter-story drifts (associated with the structural capacity) are found by means of incremental dynamic analyses. The buildings located on firm zone are analyzed under the action of 10 strong seismic records, and those on soft zone, under 13 strong ground motions. All the motions correspond to seismic subduction events with magnitudes M=6.9. Then, the structural damage and the expected total costs, corresponding to each group of buildings, are estimated. It is concluded that the optimal load factors combination is different for the design of buildings located on firm ground than that for buildings located on soft soil.

Keywords: life-cycle cost, optimal load factors, reinforced concrete buildings, total costs, type of soil

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Authors: Chiara De Amicis, Sonia Falconieri, Mesut Tastan

Abstract:

In this study, we analyze the language employed by Chief Executive Officers (CEOs) and Chief Financial Officers (CFOs) during earnings conference calls from a gender perspective. We find evidences that conference calls held by female CEOs and/or CFOs exhibit a higher level of optimism compared to conference calls held by male CEOs and/or CFOs. Moreover, female managers tend to present and discuss firm performances with less vagueness as compared to their male colleagues. We then observe the market reaction around each earnings conference call: while manager optimism is perceived as a good signal by investors, manager vagueness significantly dampens the market reaction around the call. Whether the gender of the CEO and/or the CFO delivering the conference call affects investors’ perceptions about the firm performance is still an open question. Some evidences show that the language employed by female managers conveys more valuable information for market participants as compared to the language employed by their male counterparts. This study contributes to a growing literature in finance and accounting that uses textual analysis to assess the informativeness of corporate disclosure. To our knowledge, this is the first paper that aims at answering the question whether the gender of firm’s top managers does matter when it comes to assess the informativeness of corporate spoken communication. We believe that our results will be of relevance for future research in the field. Moreover, our evidence may be used in support of the debate if a larger participation by women in the management of companies should be encouraged or not.

Keywords: conference calls, even study, gender, market reaction, textual analysis

Procedia PDF Downloads 153

Authors: G. Bruno, A. Ciavarella, N. Linciano

Abstract:

The proportion of women in boardroom has traditionally been low around the world. Over the last decades, several jurisdictions opted for active intervention, which triggered a tangible progress in female representation. In Europe, many countries have implemented boardroom diversity policies in the form of legal quotas (Norway, Italy, France, Germany) or governance code amendments (United Kingdom, Finland). Policy actions rest, among other things, on the assumption that gender balanced boards result in improved corporate governance and performance. The investigation of the relationship between female boardroom representation and firm value is therefore key on policy grounds. The evidence gathered so far, however, has not produced conclusive results also because empirical studies on the impact of voluntary female board representation had to tackle with endogeneity, due to either differences in unobservable characteristics across firms that may affect their gender policies and governance choices, or potential reverse causality. In this paper, we study the relationship between the presence of female directors and corporate performance in Italy, where the Law 120/2011 envisaging mandatory quotas has introduced an exogenous shock in board composition which may enable to overcome reverse causality. Our sample comprises Italian firms listed on the Italian Stock Exchange and the members of their board of directors over the period 2008-2016. The study relies on two different databases, both drawn from CONSOB, referring respectively to directors and companies’ characteristics. On methodological grounds, information on directors is treated at the individual level, by matching each company with its directors every year. This allows identifying all time-invariant, possibly correlated, elements of latent heterogeneity that vary across firms and board members, such as the firm immaterial assets and the directors’ skills and commitment. Moreover, we estimate dynamic panel data specifications, so accommodating non-instantaneous adjustments of firm performance and gender diversity to institutional and economic changes. In all cases, robust inference is carried out taking into account the bidimensional clustering of observations over companies and over directors. The study shows the existence of a U-shaped impact of the percentage of women in the boardroom on profitability, as measured by Return On Equity (ROE) and Return On Assets. Female representation yields a positive impact when it exceeds a certain threshold, ranging between about 18% and 21% of the board members, depending on the specification. Given the average board size, i.e., around ten members over the time period considered, this would imply that a significant effect of gender diversity on corporate performance starts to emerge when at least two women hold a seat. This evidence supports the idea underpinning the critical mass theory, i.e., the hypothesis that women may influence.

Keywords: gender diversity, quotas, firms performance, corporate governance

Procedia PDF Downloads 139