Oil and Methanol Price volatility
►Majid Delavari, Nadiya Gandali Ali khani and Esmaeil Naderi
Crude oil as one of the main sources of energy is also the main source of income for members of OPEC. So, the volatility of crude oil price is one of the main economic variables in the world and analysis of the effect of its changes on key economic factors has been always considered as significant. The reason might be the high sensitivity of oil price to political, economic and cultural issues worldwide and consequently its volatility on the one hand, and the high influence of the volatile prices on macroeconomic variables. On the other hand, for different reasons such as oil price volatilities and income from oil export, economic planners and policy makers in Iran have been mainly focused on the promotion of non-oil exports especially during the last few decades. Therefore, methanol as one of the most commonly used petrochemical products has a high potential for production and export of non-oil products in Iran. For this reason, in the present study there was an attempt to examine the relationship between the prices of Iran’s crude oil and methanol using FIGARCH model and based on the weekly time series data related to the research variables. The results of the study showed that the long memory parameter is equal to 0.32 which is meaning the shocks caused by volatility of methanol market and crude oil price to the methanol price were lasting and meaningful and were revealed in the long term.
Keywords: Methanol Price, Crude Oil Price, FIGARCH Model.
Explaining Successful Implementation of Logistics Information Technology (LIT): An empirical study
►Suhana Mohezar, Azmin Azliza Aziz and Mohd Aidil Riduan Awang Kader
This paper aims to examine the factors influencing successful logistics information technology (LIT) among third-party logistics (3PL) service providers. Cross-sectional data from 136 Malaysian 3PL service providers were collected. Our findings indicate that the existence of technological capability, top management support, effective enterprise-wide communication and business process reengineering are pertinent. Nonetheless, the result demonstrate that firm size do not play a role in such initiative.
Keywords: Logistics, Operations Management, Information Technology
Determinants of Foreign Direct Investment in Australia
Determinants of Foreign Direct Investment (FDI) in Australia were analyzed from 1986 to 2011, based on data availability. The determinants considered FDI inflows according to aggregate FDI inflows and FDI inflows by the top three source countries (USA, UK and Japan). Empirical studies identified four results. (1) For the determinants of FDI in Australia, a larger market size will attract more FDI, whereas more openness and a higher corporate tax rate will discourage FDI inflows into Australia. Lower customs duty and lower interest and depreciation of exchange rates will attract more FDI. The relationship between FDI inflows into Australia and wages was not significant. (2) For the determinants of US inward FDI in Australia, a larger market size will attract more US inward FDI in Australia, whereas more openness and an appreciation of the exchange rate will discourage US inward FDI in Australia. A negative and significant relationship was obtained between customs duty and US inward FDI in Australia. There were positive and significant relationships between US inward FDI in Australia and both the interest and corporate tax rates. (3) For the determinants of UK inward FDI in Australia, greater research and development in Australia will attract more UK inward FDI in Australia, whereas a higher corporate tax rate will discourage UK inward FDI in Australia. The positive relationship between market size and UK inward FDI in Australia was not significant. Openness, customs duty and inflation did not have significant relationships with UK inward FDI in Australia. (4) For the determinants of Japanese inward FDI in Australia, higher wages and greater research and development will attract more Japanese inward FDI in Australia, whereas higher customs duty and a higher corporate tax rate will discourage Japanese inward FDI in Australia. There was no significant relationship between Japanese inward FDI in Australia and either the interest or exchange rates.
Keywords: Foreign Direct Investment, Australia
Nigeria Ailing Industries and the Capital Structure Theory: A Need for Concern
►Ajeigbe Kola Benson, Fasesin Oladipo Oluwafolakemi and Ajeigbe Omowumi Monisola
It is necessary to identify that what are factors contribute to the firms’ capital structure composition in its operation. Hence the present study was undertaken with the objective of finding out the relationship between capital structure determinants and ailing manufacturing firms of the listed companies in Nigeria. Using a multiple regression analysis, ailing manufacturing companies in Nigeria stock exchange market was examined for the period of 2005-2010. The final sample consists of 14 manufacturing companies. In this study, dependent variable that is, leverage level of the companies, is measured by long-term debt ratio, short term debt ratio and total debt ratio. Capital structure determinants (independent variables) are measured by capital intensity, tangibility, profitability, firm size and non- debt tax shield. Findings showed that the direction of the explanatory variables such as tangibility, profitability, firm size and non-debt tax shields with total debt largely consistent with the explanations of trade-off theory and prove past empirical findings also.
Keywords: Capital structure determinants, Ailing firms, Non-debt tax shields, trade - off theory.
Technological Innovation: An Imperative Tool for Entrepreneurship Development in Nigeria
►OYEWALE I.O, ADEYEMO S.A and OGUNLEYE P.O
Sustainable economic development does not occur without entrepreneurship and entrepreneurship is the practice of starting new organizations or revitalizing mature organizations. This study therefore is done to analyse the impact of innovation, technology and on the entrepreneurial development activities in Nigeria. Simple random sampling technique was used to select a total of 12 entrepreneurs from Lagos State that constituted our sample size. The primary data consists of a number of items in well- structured questionnaire that was administered to and completed by the respondents. Regression analysis was used to analyse the data. The results showed that there is significant relationship between technological innovation and entrepreneurship development in Nigeria. It is therefore recommended that government should create a friendly or an enabling environment for entrepreneurship and consumer goods to boost the Nigeria economy.
Keywords: Entrepreneurship, Innovation, Technological Change and Nigeria