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Volume 4 Number 2

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The Journal Editor: Manager of an Academic Publication

The editor is the leader of the entire journal publication system. Editorial responsibility starts with receiving a manuscript and concludes with it being published in printed form. Meanwhile, several steps must be accomplished by the editor before publishing can be concluded, such as resolving disagreements between the author and the reviewer. The editor’s responsibility and commitment to the author is the key to the success of a journal. Publishing valuable papers and facilitating the development of a research community is a noble profession that enables knowledge to be accessed on demand and further developed.

Financial Development, Islamic Banking and Economic Growth Evidence from MENA Region

In this paper we assess the relationship between the financial development and growth in some countries in the Middle East and North Africa (MENA) region. We try to check the specific effect of Islamic sector on the economic growth using the amount of credit issued to the private sector by Islamic banks as measures of Islamic financial development. There are three main findings. First, empirical results show an insignificant relationship between banking and growth which reinforce the idea that banks don’t spur economic growth. Besides, we find that credit to private sectors affect negatively with economic growth. Second, Islamic banks don’t make the exception in the financial markets and show a weak relation with growth but it tends to act positively as theoretically demonstrated. Third, there is evidence that this relationship is quite heterogeneous across MENA countries where financial development does not cause economic growth in MENA countries without oil windfall and the relationship is negative for Petroleum Exporting MENA Countries.

External Agency Monitoring Mechanisms and Earnings Management for Improved Financial Reporting

This study focuses on discretionary-accrual type earnings management by examining the importance of multiple roles of external agency monitoring mechanisms, i.e. auditors, shareholders and bankers. Using a sample of 443 listed Malaysian companies of two years annual reports, the study investigates the extant of three types of mechanisms; audit quality, dividend and leverage to control firms from applying earnings management. Results indicate that dividend is significantly related to earnings management for the year 2008.  However, a positive relation between leverage, controlling mechanisms from lending institutions, and earnings management is not found. Results also shows that having a higher audit quality, through audit fees as a proxy, appears to be helpful in limiting this type of earnings management. These results should be of interest to the stakeholders who rely on the external governance mechanisms such as auditors to oversee the integrity of corporate financial reporting.

Different Parametric and Non-parametric Approaches to Model the Efficiency of Islamic and Conventional Banks in Bangladesh

This study empirically investigates the efficiency of Islamic and conventional banks in Bangladesh using different frontier approaches. These different measurements provide comprehensive and robust results of efficiency of individual bank compare to its peer group in every aspect considered. The results show that conventional and Islamic banks have been improving and converge to the highest level of efficiency. Results also show that conventional banks are only slightly more efficient than Islamic banks. But, IBBL alone t thso show that is slightly more efficient than conventional banks. However, they are improving and converging to a high level of efficiency. Study also finds that the Bangladeshi Islamic banking industry, especially Islami Bank Bangladesh Limited (IBBL), has in terms of assets, deposits, income, remittance collection, foreign exchange business and financing base, grown rapidly over the study period (2003 to 2008). Therefore, Islamic banks should redirect their marketing and communication strategies to focus more on targeting floating customers. The shortage in human resource should also be given serious attention with short term and long term strategies.

Corporate Organizational Change in a Carbon-Constrained World: The Case of the West Arnhem Land Fire Abatement Project in the Tropical Savannas of Australia

This article explores how carbon constraints can impact on sustainable development by examining the case study of the West Arnhem Land Fire Abatement Project in the tropical savannas of northern Australia. The West Arnhem Land Fire Abatement project is an interesting case study of how carbon-constraints can influence organizational management because the project evolved under the premise that government policy instruments would eventually create a cost for greenhouse gas emissions. The case study highlights how individuals with a strategic vision of sustainable development in northern Australia collaborated to become powerful change agents in local organizations (including indigenous organizations and not-for-profit land conservation advocates). Their creation of a ‘sustainable development conscience’ led to investment from a firm seeking to benefit from an improved reputation as a good corporate citizen and proactive manager of greenhouse gas emissions.