Emerald | Asia-Pacific Journal of Business Administration | Table of Contents

Biotech firm valuation in an emerging market – evidence from Taiwan

Fri, 31 May 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to explore the relationship of various financial and non-financial factors to corporate value and how these factors can be used for the purpose of firm valuation. The focus is placed on a developing high-tech industry. Design/methodology/approach – The authors collect and compare data from companies within the time window of 1997 through 2010. The techniques of stepwise regression and back-propagation neural network (BPNN) are applied to analyze this data, where the variables of operating profit margin, ROE, ROA, net income ratio, Tobin's Q and stock price are chosen to indicate firm value. Findings – Each firm value variable appears to have a different set of estimator variables consisting of financial and non-financial factors. The estimator variable in the set that has a high influence relative to the others tends to be financial factor. However, certain non-financial factors appear to be considered as an estimator variable for different firm value variables more often than financial factors such as employee productivity, wealth created per employee, revenue growth rate, management expense per employee, R&D expense to management expense ratio, and R&D expenditure to total assets ratio. Further, the incorporation of BPNN shows an improvement of the result of the regression method in terms of overall estimation error, especially for operating profit margin. Originality/value – The authors' investigation highlights the importance of the use of non-financial factors for firm valuation in developing biotech industries. The result can be helpful for investors who seek to examine information variables and indicators for the opportunity presented by the above industries. In addition, the significant estimation improvement by incorporating the BNPP method into the commonly used regression method suggests the beneficial use of BPNN in refining the traditional methods in the field.

A conceptual framework for cost measures of harm of HRM practices

literatinetwork@emeraldinsight.com (Sugumar Mariappanadar) — Fri, 31 May 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to propose a costs framework for harm of human resource management (HRM) practices to develop the cost measures for the psychological, social and work-related health aspects of harm of HRM practices on stakeholders (employees, their family and communities) so as to understand the implications of harm on the stakeholders. Design/methodology/approach – Initially, the cost components of health care are used to theoretically develop a costs framework for harm of HRM practices to measure cost for each of the psychological and the social aspects of harm of HRM practices. Subsequently, employee relative deprivation, spill over and crossover effects of work on family are the theories used to develop the cost measure for the psychological and the social harm of HRM practices. Finally, the direct costs associated with the psychological and the social harm of HRM practices on stakeholders are valuated using published research. Findings – The proposed costs framework of harm of HRM practices is a useful theoretical framework to identify, measure and valuate the cost of psychological and social harm of HRM practices on the stakeholders. Practical implications – The costs component framework of harm of HRM practices can facilitate the capture of the associated costs of the harm of HRM practices so as to understand organisations' ethics of care for stakeholders. Originality/value – The theoretical costs framework for harm of HRM practices provides a new technique to measure the cost of psychological and social harm of certain HRM practices imposed on the stakeholders so as to minimise the harm in the future.

Leadership and organizational citizenship behavior (OCB) in the financial service sector: The case of the UAE

literatinetwork@emeraldinsight.com (Abubakr Suliman, Hanan Al Obaidli) — Fri, 31 May 2013 00:00:00 +0100

Abstract

Purpose – This research aims at investigating, for the first time in the Arab world, the influence of leadership behaviors on organizational citizenship behaviors (OCB) in the Islamic banking sector. Also, it explores the role of OCB in affecting work outcomes. Design/methodology/approach – The study consists of two core concepts: leadership behaviors and OCB. The sample population for the study was drawn from 150 employees working for several Islamic banks in the United Arab Emirates (UAE). A self-administered questionnaire was developed by combining two instruments. Findings – The findings revealed that transformational and transactional leadership styles tend to play a significant role in employees' OCB. Nonetheless, passive/avoidant leadership style plays no role of statically evidence in the relationship. Practical implications – The theoretical and managerial implications of the findings are discussed in the paper, together with some recommendations for managing leadership and OCB in the service sector. Originality/value – The paper examines for the first time the links between leadership and OCB in the Islamic banking sector of the UAE and the Arabic context.

Foreign multinational banking in Malaysia: trends, motives and activities

literatinetwork@emeraldinsight.com (Syed Zamberi Ahmad) — Fri, 31 May 2013 00:00:00 +0100

Abstract

Purpose – The aim of this paper is to analyse and examine the factors affecting the international expansion and market entry of foreign multinational banks (MNBs) in Malaysia. While relevance of the theoretical perspectives is highlighted, the purpose of this paper is to contribute to the understanding of the present-day phenomenon of emerging multinational banks. Design/methodology/approach – The paper employs multi-method approaches combining both questionnaires survey data and qualitative interviews. Findings – The findings reveal the fact that profitability, trade financing, following the customers, diversifying the risk and pursuing new market opportunities are among important factors for the presence of foreign banks in the country. Research limitations/implications – The paper highlights relevance of further research on multinational banking and outlines research avenues. Practical implications – The paper offers important insight and practical implications for local regulators and policy makers and bankers to understand the behaviour of foreign multinational banking in emerging markets. Originality/value – The objective of this paper is to fill in some gaps in the literature regarding this research area. The paper provides preliminary research evidence and a framework to suggest hypotheses for further research.

Perceived vision-based leadership effects on staff satisfaction and commitment at a Thai energy provider

literatinetwork@emeraldinsight.com (Sooksan Kantabutra, Parisa Rungruang) — Fri, 31 May 2013 00:00:00 +0100

Abstract

Purpose – This paper aims to examine relationships between vision realization factors (vision communication, motivation and empowerment of employees), employee satisfaction, and affective organizational commitment in a state-owned energy provider in Thailand. Design/methodology/approach – Subjects are drawn randomly from employees working at the Thai state-owned energy provider who completed a questionnaire made up of valid and reliable instruments that measure each of the variables studied. Hypotheses are tested through a series of regression analyses. Findings – Findings indicate that vision communication, motivation and empowerment of employees, and follower affective organizational commitment are three direct predictors of enhanced employee satisfaction. Empowerment of employees and employee satisfaction are two direct predictors of employee affective organizational commitment. These findings indicate a reciprocal relationship between employee satisfaction and affective organizational commitment, with a stronger effect from employee satisfaction on affective organizational commitment than the reverse. Research limitations/implications – How supervisors empower and motivate their subordinates in the Thai state-owned energy provider still needs a further investigation. The relationship between employee satisfaction and affective organizational commitment needs to be re-examined by future research, using a different research design and statistical technique. Practical implications – Leaders at all levels of the state-owned energy provider should frequently communicate their vision to, motivate and empower their subordinates to enhance subordinate satisfaction and affective commitment. Originality/value – The body of knowledge about vision-based leadership in an Asian state-owned energy provider is scanty. The present study contributes to this area.