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Volume 10 Number 1, 2020

(Full articles will be available from Ebsco and GALE soon. For subscribing individual article, click here to send your request with the respective title)

The Impact of Design Thinking on Innovative Behaviors, With the Mediating Effect of Knowledge Sharing (Mohamad Hisyam Selamat, Yanyu Zhang)

This study investigate the impact of the design thinking (communication design, and create synergies) on the employees’ innovative behaviors, with the mediating effect of knowledge sharing. This study uses cross-sectional survey to verify the theoretical framework. The survey data used in this empirical study were collected from 432 employees engaged in design work (that is, designers working in graphic design company in Shanxi province of China were the main research objects). Multiple regressions were used to analyze the hypotheses. The findings showed that the effect of communication design on employees’ innovative behaviors was high. On the other hand, the effect of communication design on knowledge sharing was also high. Meanwhile, knowledge sharing as an intermediary variable affects the relationship between communication design and employees' innovative behaviors was substantiated in the practical setting.

Integration of Financial Reporting System and Financial Sustainability of Nonprofit Organizations: Evidence from Iraq (Akeel Hamza Amagtome, Furqan Alaa Alnajjar)

This paper aims to understand the connection nature between applicable financial reporting practices and the financial sustainability of nonprofit organizations in Iraq. The exploratory analysis reveals that the current financial reporting practices of NPOs are not compatible with the nature of these organizations and don’t meet the stakeholder’s requirements and the overall evaluation of financial reporting system of Iraqi NPOs is poor. The results of the data analysis using 70 NGOs registered in Iraq for three years 2015-2017 indicate that most financial sustainability indicators were low excluding current ratio that show that 69% of NPOs have an adequate liquidity. While, the results document an irregular decline in solvency ratio (39%), saving ratio (19%), and defensive interval (46%). Depending on both the poor Iraq's financial reporting practices and the low financial sustainability indicators, the paper concludes that there is an integration between NPOs financial reporting system and financial sustainability.

The conditional effect of culture on the relationship between IFRS adoption strategies and earnings management (Abdullah Alhammad, Asna Abdullah Atqa, Ahmed Razman Abdul Latiff, W. N. W. Azman-Saini)

The adoption of International Financial Reporting Standards (IFRS) is recognized as a transformational accounting regulation designed to limit earnings management. A country’s specific characteristics, such as cultural dimensions, may influence managers’ decisions. However, this research area has not received sufficient attention. Therefore, the purpose of this paper is to investigate the relationship between IFRS adoption strategies and earnings management and examine the conditional effect of culture on this link. The research was based on a sample of firms located in 35 developed and developing countries. The empirical results provided a strong evidence that there was a relationship between IFRS adoption strategies and earnings management. IFRS adoption strategies had substantial negative effects on earnings management and the relationship between them varied according to uncertainty avoidance and power distance. This study is considered important, innovative and useful for regulators and investors as it guides them to develop policies to improve accounting quality.

The Influence of Behavioural Finane Biases on Depositor Behaviour (Susara Johanna Ferreira, Zandri Dickason-Koekemoer)

The central function of a bank inherently exposes it to operational risk where this risk can influence depositor behaviour. The financial decision-making behaviour of depositors is dependent on behavioural finance biases. Results from this paper indicated that the representativeness bias was significant for all operational risk events except for business disruptions and system failures. Therefore, depositors who are subject towards this bias will be more likely to withdraw their money. The availability bias was significant for all operational risk events except for employment practice and workplace safety. The self-control bias was significant for all operational risk events except for internal fraud. Hence, behavioural finance biases influence depositors’ likelihood to withdraw during operational risk events.

Influence of Social Networks in Associativity Mechanisms and their Impact on Agricultural ResultsBehaviour (Fernando Uset-Ruiz, Jaime Ramiro Merizalde-Paredes, Reyner Pérez-Campdesuñer,Alexander Sánchez-Rodríguez,Gelmar García-Vidal, Rodobaldo Martínez-Vivar)

The objective of this research is to analyze the relationship between the results of agricultural associations in Ecuador and the behavior of performance indicators of social networks that are created around these associations. The results show that in spite of finding important differences in the conditions in which associations operate, such as the size in hectares or the number of members that integrate it, it is not possible to affirm that the observed productivity variations among them directly respond to these differences. However, when analyzing the relationship between the subjective level of associativity, measured through the density coefficient of the network, it corroborated the hypothesis that the degree of productivity can be affected by the degree of cohesion of the individuals that make up the network.

Factors Determining the Loan Repayment Performance of a Government Microcredit Program for the Handloom Weavers in Bangladesh (Mst Tania Parvin, Regina Birner, Farhana Arefeen Mila)

This study investigates the determinants of loan repayment performance of a government microcredit program for the handloom weavers in Bangladesh. The data for this analysis were collected from 151 credit beneficiaries from Sirajganj district of Bangladesh during 2015 using multistate sampling technique. The Probit model estimation results reveal that working adults, household assets, operational handloom unit, loan size, opportunity cost and loan utilization positively and work experience, occupational status, income, and distance variables inversely influences the borrowers’ successful repayment choice. Therefore, appropriate policy interventions are required based on negative determinants to cover up the gap in loan repayment.

Insurance Sector Development and Economic Growth: The Case of Indonesia (Toto Sugiharto, Novita Sulistiowati, Rina Nofiyanti, Eko Sri Margianti)

The objective of the study is to empirically examine the relationship between insurance sector development and economic growth in Indonesia in the period of 2002 to 2018. Time series regression analysis was performed to test the effect of insurance development indicators i.e. general insurance density, general insurance penetration, life insurance density and life insurance penetration on economic growth. Granger causality test was also performed to test the existence of granger cause between economic growth and insurance development indicators. It is revealed that insurance industry significantly affect economic growth. General insurance density and life insurance penetration are variables that partially affect economic growth in different magnitude and directions.