Gadjah Mada International Journal of Business
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THE ROLES OF CONSUMER’S KNOWLEDGE AND EMOTION IN ECOLOGICAL ISSUES: An Empirical Study on Green Consumer Behavior
Get PDFThis study examines the causal effect of existing relationship amongst green purchasing, which are attitudinal and behavioral approaches, consumer values, ecological affect, ecological knowledge, and green purchase intention. The survey result provides a reasonable support for the validity of the proposed model. Specifically, the finding from structural equation model confirms the influence of consumer values orientation, ecological affect, and ecological knowledge on their attitudes towards green purchase intention. The implication of this research is relevant to Indonesian government and green marketers to fine-tune their environmental programs
Cointegration analysis on trading behavior in four SELECTED asean countries BEFORE MONETARY CRISIS
Get PDFThis paper aims to analyze Indonesian position among the trading behavior in four selected ASEAN countries (according to their import-and-export products) using cointegration analysis. The demands for export and import are estimated before the monetary crisis erupted (1963 – 1995) using the dynamic OLS (DOLS) method. The Johansen Maximum Likelihood (JML) approach is also employed to compare the results obtained. The results show that foreign income has a significant impact on export demand, suggesting that foreign disturbance in the form of economic activities is likely to be transmitted to these countries. The Marshall Lerner conditions are easily met for the cases of Malaysia and Thailand (DOLS and JML). For Indonesia and the Philippines, the sum of the price elasticities of export and import demand are less than unity. This can be explained by the J-curve, in which the currency depreciations will first worsen the trade balance before it improves, and it takes a long time to affect the trade balance
The Indirect Costs of Financial Distress in Indonesia
Get PDFThis paper presents quantitative estimates of the indirect cost of financial distress and its determinants. In order to measure the cost, this study estimates the annualized changes in industry-adjusted operation profit and sales from a year before the onset of distress to the resolution year. Using those approaches, the median of indirect financial distress cost is estimated between three and 11 percent annually. To the extent that the direct cost of financial distress reduces reported operating income, the estimated costs are overstated. The simple regressions analysis suggest that the indirect cost of financial distress significantly increases with size, leverage, number of creditors, and poor industry performance, but is not related to degree of bank loan reliance. The findings provide a weak support for the financial distress theory which suggests that conflicts of interest render the costs of financial distress
Monetary Policy, Debt and the Cyclical Behavior of Inventories
Get PDFAn earlier study on the determinants of inventories investment has been proposed by Lovel (1961). However, the study fails to mention the effects of financial variables. The puzzle prevails on account of imperfect capital markets. This implies that interest rate generally affects inventory investment indirectly through the debt channel. For instance, in the period of tight monetary policy, increasing interest rates have a negative impact on the present value of firms’ collateralizable net worth. In addition, they also weaken firms’ balance sheets as interest expenses also rise up. In imperfect capital markets, this fact indicates an increase in the amount of external financing that firms need, a rise in the premium on external financing that they face, and a reduction in their accumulation of assets, their spending and their production. Given the low adjustment cost that characterizes firms, it will be inventories that firms will initially reduce. Therefore, this paper is contributes to the issue of monetary policy transmission in Malaysia. Our specific attention is limited to the channel of monetary policy on a firm’s inventory. Using micro data, we try to take into account the relevance of the firm’s balance sheet conditions in the transmission of monetary policy
Test FOR Dynamic Relationship between Financial Development and Economic Growth in Malaysia: A Vector Error Correction Modeling Approach
Get PDFThis paper purports to study the effectiveness of financial development to Malaysian economic growth utilizing quarterly data. In view of the priority given to dynamic relationship in conducting this study, Vector Autoregressive (VAR) method which encompasses Johansen-Juselius’ Multivariate cointegration, Vector Error Correction Model (VECM), Impulse Response Function (IRF), and Variance Decomposition (VDC) are used as empirical evidence. The result reveals a short-term and long-term dynamic relationship between financial development and economic growth. The importance of financial sector in influencing the economic activity is proven as a clear policy implication
Imaginative Experience: A Narrative-Dialogic Ethnography of the Community Who Adores Its Idol
Get PDFManaging customer loyalty becomes an important activity in marketing management. One of the reasons is that loyal consumers tend to make good financial performances to producer. Unfortunately, gaining a loyal customer is not a trivial activity since there are gaps to understand consumer experience comprehensively. To fulfill the gaps, this article explores imaginative experience of the community who adores its idol in the light of cultural perspective. The members of the community who adores its idol experience the imaginative experience. The author argues that those phenomena are cultural perspective, because they are meaningful to the members. Through narrative-dialogic ethnography, the author builds the concept of imaginative experience that through the imaginative media, the members do narrative-dialogic between “the realm of areal” and “the realm of afotik” then activate the imaginative relations in “the realm of aktinik”. Every member constructs its imaginative relations into imaginative constructions formed in a personal story. Managing imaginative experience could benefit the company. It can be the “Imaginative Experience Management” (IEM) that accommodates imaginative consumers’ experiences with the company’s products deeply and sustainably through managing the story of its consumers’ imaginative experiences. It can also be linked to the customer loyalty programs. In this matter, IEM should be integrated with brand management
Program Perceived Value and Program Satisfaction Influences on Store Loyalty: Insights from Retail Loyalty Progam
Get PDFInvestigations to determine whether program perceived value could influence program satisfaction, program card loyalty and store loyalty are critical to elucidate the roles and significance of the constructs and advancing management practice. Accordingly, in line with this research direction, this study aims to assess the effects of program perceived value offered by few leading retail superstores and departmental stores in Malaysia on its members’ loyalty towards the store. The data set utilized in this study has been obtained via quota sampling technique, where a sample of 153 retail loyalty programs’ members was analyzed. An integrative conceptual model was developed and tested using Structural Equation Modeling using AMOS program. The results exemplify that program perceived value is a strong driver of program satisfaction and program card loyalty. Unexpectedly, program perceived value is not a significant predictor of store loyalty but, it has an indirect effect on store loyalty mediated by program satisfaction. Continuous plea in marketing management is to make marketing instruments more efficient. In recent years introduction of customer relationship marketing instruments is strongly advocated, both in marketing theory and practice. Several researchers (e.g., Berry 1983; Berry and Parasuraman 1991; and Gronroos, 1994) have changed the focus of a marketing orientation from attracting short-term, discrete transactional customers to retaining long-lasting, intimate customer relationships. In fact Roberts, Varki, Brodie (2003), further suggested that it is best to describe relationship marketing as the formation of “bonds” between the company and the customer. Achieving an effective relationship in a consumer context is considered to be even more challenging than it is in a business-to-business context, given the generally more polygamous character of consumers as opposed to business customers (Keng and Ehrenberger 1984; Pressey and Matthews 1998)
Behavior of Stock Price Variability over Trading and Nontrading Periods, and Daily Return Volatility
Get PDFThis study examined the behavior of stock price variability over trading and nontrading periods, and daily return volatility. This study used intraday data in Indonesia Stock Exchange. Sample was taken from the firms listed in LQ 45 indexes for the year of 1999-2006. The behavior of stock price variability and daily return volatility, according to previous theories, is influenced by the array of public and private information.This study concludes that return variance over trading and nontrading periods, along with overnight and lunch break nontrading session, and the first and second trading session, has differed significantly. In addition, daily return volatility is also not identical significantly. Subsequently, this study used size, trading volume, bid-ask spreads and up-down market as control variables. This study contradicts to all prior studies. This study especially suggests contra evidence in comparisons with previous concepts and theories in regards to size, trading volume, bid-ask spreads, and up-down market as control variables
Coworker Exchange, Leader-Member Exchange, and Work Attitudes:P A Study of Coworker Dyads
No full textThe purpose of this study is to examine how leader-member exchange (LMX) similarity might affect exchange quality between coworkers. This research also investigates the relationships of LMX and CWX (coworker exchange) to employees’ organizational commitment and job satisfaction. Each respondent from 76 nurses at three hospitals in Semarang were asked to rate the quality of the relationship he/she had with his/her supervisor, resulting in 76 LMX ratings. They were also asked to rate the quality of their relationships with each of their coworkers. A dyad was created where we had complete information on two employees rating one another. Once paired, a total of 146 dyads with complete LMX, CWX, and work attitude data were acquired. The results of this research indicate that the interaction between two coworkers’ LMX scores predicts CWX quality for the coworker dyad. After controlling for CWX, LMX quality is positively related to job satisfaction, but not to organizational commitment. Furthermore, after controlling for LMX, a greater diversity in a worker’s CWX relationship is negatively associated to his/her organizational commitment, but not to his/her job satisfaction. The interaction of CWX quality and CWX diversity, however, does not predict work attitude
The Response of Corporate Dividend Policy to The Abolition of Tax Credit in the United Kingdom (U.K.)
Get PDFBy abolishing the tax credit on dividends received by tax-exempt financial institutions in 1997, the effective rate of tax for share-holders such as pension funds increases significantly, and the tax preference for dividends is significantly reduced. The tax-exempt shareholders mainly consist of pension funds and insurance companies with respect to their pension business. This tax-exempt community is the most influential shareholders in many U.K. companies, and their tax preference for dividends may have an important impact on corporate dividend policy.The objective of this study is to examine whether the aggregate dividend payment changes following the 1997 abolition of the tax credit. Using aggregate data in time series from 1974 to 1999, this study finds that the percentage of forecast error in Lintner’s model does not change significantly between the pre- and post-abolition periods. Hence, there is no evidence that aggregate dividend payment decreases following the abolition of tax credit. This could be interpreted that the aggregate sample of U.K. firms indicates a little intention of changing their dividend policies in response to the abolition of tax credit.This study also investigates whether individual U.K. companies respond to the 1997 abolition of tax-credit. The test results show that the majority of companies in the sample do not change their dividend policies after the abolition of tax credit. It is possible that companies are reluctant to cut their dividend payment since the existing dividend payout could be sustained in the long-run. They also avoid sending negative signals to the market. Thus, companies typically chose to keep a dividend level relatively stable following the tax change in 1997. Only the minority of the U.K. companies experience a decline in their dividend payment. This evidence supports the hypothesis that the abolition of tax credit on dividends results in a decrease in aggregate dividend payment in order to satisfy a tax clientele