beSMART

THE INFLUENCE OF INSTITUTION ON STRATEGY AND ITS RELATIONSHIP WITH THE PERFORMANCE OF INDONESIAN STATE-OWNED ENTERPRISES

Bustanul Arifin , Bambang Siswaji , Nunung Nuryartono & Muhammad Said Didu

Institution influences strategy that leads to performance of enterprise. If the relationships hold for state-owned enterprise, the improvement of institutional environment will have the positive impact on the improvement of state-owned enterprise’s performance. The aim of this research is to investigate the causal relationship of institution-strategy and strategy-performance in state-owned enterprise environment, and to further elaborate the relationship to institution-performance of state-owned enterprise. Likert-scaled data have been collected from expert’s opinion survey. Structural equation modelling (SEM) analysis found: 1) institution significantly influences strategy; 2) strategy does not influence performance significantly; and 3) institution directly affects performance of state-owned enterprise. This research showed the importance of favorable institutional environment as prerequisite for improving state-owned enterprise’s performance.

state-owned enterprise, institution-based strategy, structural equation modelling

COMPETITION AND EFFICIENCY OF SELECTED UNIVERSAL BANKS IN THE PHILIPPINES FOR THE YEAR 2011

Edralin Lim

The researcher based his sample on nine universal banks in the Philippines from 2003 to 2011. This research used a correlational analysis to determine the relationship between competition and bank efficiency. The scope of the study is limited to the removal of entry barriers which is one of the six policies of financial liberalization that allowed the entry of the ten foreign banks. To assess the competition among universal banks, Herfindahl index (HI) was used.  The study showed that financial liberalization brought greater competition, improved efficiency and less market concentration. It showed that Herfindahl index is negatively related with net interest margin to assets and loan to asset ratio. It also showed that Herfindahl index is positively related with provision for loan losses ratio.

Competition; Efficiency; Financial Liberalization

TECHNIQUES, MOTIVES AND CONTROLS OF EARNINGS MANAGEMENT

Md. Musfiqur Rahman, Mohammad Moniruzzaman & Md. Jamil Sharif

Earnings are the powerful indicators of the firms’ business activities. Since a company’s stock is measured by the present value of its future earnings, investors and analysts look to earnings to determine the attractiveness of a particular stock. Companies with poor earnings prospects will typically have lower share prices than those with good prospects. So, Earnings management plays a key role to determine the share price of a company as well as direct resource allocation in capital market.  This paper specially focuses on earnings management, quality of earnings and various techniques (like cookie jar reserve, big bath, and big bet) that are used to manage earnings in the business entity. Extent and type of earnings management depends on several factors like stock market incentives, personal incentives, political & regulatory motives. Finally, this paper concludes that rigorous accounting standard, awareness of audit committee, corporate governance and consciousness and the morality of the stake holders play a vital role to control earnings management.

Earnings management, Cookie jar reserve, big bath, big bet   

APPROACH TO COMMUNICATION CONTROLLER FOR CNC SYSTEMS

TAMER, I

CNC systems perform operations in 3-Dimensions. Equipment’s used in CNC systems; axis numbers change according to usage area and types. The movements performed on the axis point out changes. In this study, the effects of all these changes are explained. After that, a command and command set for each movement are shown. In continuation of study, information about controller design and system are given.

CNC, 3-D Motion, Communication.

   AFFECT OF ESQ TRAINING 
(TRAINING OF EMOTIONAL INTELLIGENCE AND SPIRITUAL INTELLIGENCE) TO ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION

   Adjie Sapta , Aji Hermawan, Musa Hubeis & M Joko Affandi

Spirituality is considered one of the key success factors of the organization in the long term. Organizations today are looking for ways to succeed by using all its potential to maximize commitment, job satisfaction and internal motivation of employees through various domains of spirituality. Emotional intelligence also affects the performance of the company. The purpose of this study are: 1) to analyze the effects of spiritual intelligence on organizational commitment (KO) and job satisfaction (KK), 2) to analyze the effects of emotional intelligence on organizational commitment (KO) and job satisfaction (KK). This research method is using a survey with 244 people in random and involves in-depth interviews to the management of the company. The analysis tool used is descriptive analysis and structural equation model (SEM). The results of this study indicate that spiritual intelligence (SI) and emotional intelligence (EI) affects to organizational commitment (KO) and job satisfaction (KK) directly.

ESQ, Job Satisfaction, Organizational Commitment, Spiritual Intelligence, Emotional Intelligence, Spiritual Human Resource Development, SEM

THE PERCEPTION LEVELS OF THE NOVICE TEACHERS’ PROBLEM-SOLVING SKILLS

Türkay Nuri Toka, Şükran Tokb & Sevda Doğan Dolapçıoğluc

This study aims to determine the perception levels of the novice teachers’ problem-solving skills as well as to what extent these skills change according to independent variables. This research is a general survey type research. The participants of the working group are 51 novice teachers. In this research Problem Solving Scale (PSS) has been used. PSS are made up of three sub-scales. These are "The Trust in Problem-Solving Skill", “Approaching-Avoiding” and "Personal Control”. When studied the views in “The trust in Problem-Solving Skill”, which is one of the sub-dimensions of Problem-Solving Skills, it has been realized that the novice teachers’’ faith in the ability of problem solving is weak. As for the “Approach-Avoid” sub-dimension, another dimension taken into account in the research, which exhibits the behaviors to face the problem or to avoid it, it has been found out that the novice teachers tend to avoid. It has also been realized that the results acquired from the sub-dimension “Personal Control” which is defined as people’s ability to keep their control in problematic situations are negative as well. As a result, thanks to the information taken from the sub-dimensions, it can be inferred that novice teachers do not trust their problem solving skills, that’s why they avoid looking for solution to the problems, and they feel personal control less. In the light of these findings, the following can be said: Also other experienced teachers at school, school directors and education supervisors can lead the problem solving skills to be improved and can be the models.

Novice teachers, problem-solving skills, approaching-avoiding, personal control

CRITICAL FACTORS DETERMINING CAPITAL STRUCTURE OF THE MALAYSIAN CONSTRUCTION COMPANIES

Reza Ramezanalivaloujerdi & Devinaga Rasiah

The main purposes of this study is to identify the critical factors determining the Malaysia corporate capital structure listed in Bursa Malaysia in the context of construction industry from period of five years from 2005 to 2009 and to find out which one of the theories used in the developed countries better explains the capital structure of Malaysia construction companies. The findings showed that profitability of the firm shows itself as the most critical factor determining the Malaysia capital structure in the field of construction companies due to the significant relationship with leverage for all years conducted in this study (p-value < 0.05). Pecking order theory and trade-off theory have been found out as the important theories in this study as well. Pearson Correlation analysis also presented that at least two out of five independent variables such as profitability, tangibility, growth, size and non-debt tax shield have a significant correlation with dependent variable, leverage. The results indicated that profitability of the firm is inversely related to the leverage as per pecking order theory for years 2005, 2006 and 2008.

Capital structure, profitability, tangibility, growth, size and non-debt tax shield