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The objective of the study is to predict corporate bankruptcy on the JSE-AltX (Alternative Stock Exchange) listed firms by employing Discriminant Analysis (MDA). Since its inception, the JSE-AltX has listed more than 100 firms and majority of them have migrated to the JSE main board. Motivated by the increasing number of delisted firms both pre and post their migration from JSE-AltX to the JSE main board, this study seeks to investigate the financial distress in the JSE-AltX listed firms. This study use a quantitative method to predict bankruptcy for a sample of 20 JSE-AltX listed firms that belongs to a wide range of industries, over the period from 1 January 2004 until 31 December 2015. Based on the previous literature it is evident that financial ratios play a significant role in the prediction of financial distress. Employing the same set of financial ratios (extracted from annual reports mainly the audited consolidated balance sheets and income statements) that are used in bankruptcy prediction as independent variables, the empirical results show that MDA has a statistically significant power in predicting default risk on the JSE-AltX listed firms. The findings show that the discrimination function is significant at the 5% level of significance. The MDA results reveal that, 7 out of the 20 sample firms are prone to bankruptcy, while the rest are not. Furthermore, the model classifies net profit margin (short-term profitability), current ratio (liquidity) and return on capital invested as the most important financial ratios in distinguishing the successful firms from unsuccessful firms post migration from the JSE-AltX to the JSE main board. Generally, this study results have policy implications which regulatory authorities, investors, employees and lenders will find interesting. Firstly, regulatory authorities can find this research useful as it provides effective review of the firm's financial distress conditions and subsequently signals default risk to various stakeholders. Secondly, this research will not only assist in identify potential default risks, but it will also enable different stakeholders to formulate mechanisms or relevant policies and procedures that will allow them to detect and prevent financial distress. JEL Classifications: G01, G17, G32, G33, O16 Keywords: Alternative Exchange (AltX), Johannesburg Stock Exchange (JSE), Multivariate Discriminant Analysis (MDA), Financial ratios; Bankruptcy, Migration, INTRODUCTION Prediction of financial distress firms has been one of the most important areas of research in corporate finance. Globally, private firms, especially small and medium-sized enterprises (SMEs) play a [...]

This research extends understanding of the relationship between chief marketing officer (CMO) presence and firm performance by investigating how it is affected by the presence of three other functional heads (or CXOs) under various environmental and strategic contingencies. Results based on a panel of 401 U.S. manufacturers reaffirm the positive CMO presence-firm performance relationship and establish that the linkage is (a) strengthened by chief sales officer presence when industry sales volatility is high, (b) strengthened (weakened) by chief technology officer presence when industry innovation and firm differentiation (cost leadership) are high, and (c) strengthened (weakened) by chief supply chain officer presence when firm diversification (differentiation) is high. The study: expands top management team research by investigating executive dyads formed by the pairing of heads of functions advocated in the organizationally embedded view of marketing; delineates CXOs' roles and orientations to clarify mechanisms that aid or hamper the CMO; and, identifies industry and firm-level contexts that affect the CMO-CXO interfaces. Additionally, the findings underscore the importance of appointing CMOs and, of CMOs spanning organizational silos., Author(s): Pravin Nath [sup.1] , Neeraj Bharadwaj [sup.2] Author Affiliations: (1) grid.266900.b, 0000 0004 0447 0018, Division of Marketing and Supply Chain Management, Michael F. Price College of Business, University [...]

Many successful individuals cite fate or luck as significant factors in their success. Between 1990 and 1995, the American professor of psychology Mihaly Csikszentmihalyi interviewed 91 extraordinary individuals. Throughout his [...]

Trust is a key element to successful organizations. This study adopts a multiple perspective approach to understanding the formation of trust perceptions within a network of leaders, followers, and coworkers. The spread or transference of trust from leader-follower dyads to the broader employee network is examined. This notion represents an extension of Lau and Liden s (2008) work that connects leader trust in a follower and corresponding network trust in the leader as antecedents to network-wide trust in the follower. Two boundary conditions of this relationship are hypothesized and tested in the form of two three-way interactions. Support for the interactive effects of leader trust in follower, network trust in leader, and leader communication were significant in predicting network-wide trust in the follower. This finding provides evidence linking the amount of communication between a leader and employees with the combined effects of trust transferring from leader trust in the follower and network trust in the leader to network-wide trust in the follower., Trust is a key component of workplace relationships (e.g., Kramer and Tyler, 1996; Mayer et al, 1995; Rousseau et al., 1998; Fulmer and Gelfand, 2012), and it has been linked [...]

In the first of a three-part series on science start-ups, Nature Careers explores how scientists with a sound business idea can thrive as entrepreneurs, and why leaving academia isn't required.Nature Careers explores how scientists with a sound business idea can thrive as entrepreneurs, and why leaving academia isn't required., Author(s): Amber DanceAuthor Affiliations:How business-savvy scientists can find success in the risky start-up world Geneticist Brittany Barreto (right), chief executive of dating company Pheramor, with her co-founders. [see PDF for [...]

Can any innovations come from China? Many influential people don't think so. As Forbes contributor Edward Tse noted last year, when Joe Biden was vice-president of the United States, he [...]

This article contributes to the literature on trust and small businesses in developing countries by linking the level of trust in others that entrepreneurs display in a lab setting to sales data outside of the lab. The results show a robust positive correlation between trust and business success (with sales used as a measure of success): The successful entrepreneurs invested in trust more than the less successful ones did. In the lab, trusting in others is highly profitable, with successful entrepreneurs doing so to the degree required to maximize revenue. However, I found no association between trustworthiness and business success. (JEL 017, L26, C91), I. INTRODUCTION Trust in others is an essential element of social interactions: When there is trust within an exchange, it can solve social dilemmas and achieve socially optimal equilibria (Ostrom [...]

Croatian companies need a new approach that will provide them with sufficient competitive strength, based on business excellence. Focusing only on financial indicators and measures is insufficient. Therefore new concepts should be introduced, especially by large companies that are traditionally inert and exposed to global competition, and situated in the countries with ongoing transition, such as Croatia. Today 75% of the source of value within a company cannot be measured by means of the standard accounting techniques anymore, and in the 21st century it is impossible to rely exclusively on measuring financial parameters. According to the authors, in addition to financial measuring, a way should be found to measure non-financial parameters within a company. The paper is therefore aimed at exploring the influence of business excellence and its values on business in the Croatian business practice. The authors carried out a research on 106 large Croatian enterprises with more than 250 employees, exploring the connection between the values of business excellence and company performance, Results show a positive correlation between applying the principles of business excellence and successful company performance in practice. Keywords: business excellence, company performance, performance measurement, large Croatian enterprises. Hrvatske tvrtke trebaju novi pristup, koji ce im pruziti konkurentsku snagu, a koji je zasnovan na poslovnoj izvrnosti. Stoga je nuzno uvodenje novih koncepata u poslovni svijet, posebno u velike tvrtke koje su tradicionalno inertne i izlozene globalnoj konkrurenciji, a nalaze se u tranzicijskim zemljama poput Hrvatske. Danas 75% izvora vrijednosti u tvrtci vise nije moguce izmjeriti standardiziranim racunovodstvenim tehnikama, pa se u 21. stoljecu vise nije moguce pouzdati iskljucivo u financijske pokazatelje poslovanja. Autori isticu kako je, uz financijsko mjerenje, potrebno pronaci nacin za mjerenje nefinancijskih parametara unutar tvrtke. Cilj ovog rada je istraziti utjecaj poslovne izvrsnosti i vaznosti iste u poslovnoj izvedbi za poslovne rezultate tvrtki u hrvatskoj poslovnoj praksi. Autori su proveli istrazivanje 106 velikih hrvatskih poduzeca s vise od 250 zaposlenih, istrazujuci povezanost izmedu vrijednosti poslovne izvrsnosti i poslovnih rezultata. Utvrdena je pozitivna korelacija izmedu primjene principa poslovne izvrsnosti i poslovnih rezultata., 1. INTRODUCTION The prevailing belief in the Croatian business practice is that the change in organisational structure itself will be sufficient for all other necessary changes, which should then occur [...]

Croatian companies need a new approach that will provide them with sufficient competitive strength, based on business excellence. Focusing only on financial indicators and measures is insufficient. Therefore new concepts should be introduced, especially by large companies that are traditionally inert and exposed to global competition, and situated in the countries with ongoing transition, such as Croatia. Today 75% of the source of value within a company cannot be measured by means of the standard accounting techniques anymore, and in the 21st century it is impossible to rely exclusively on measuring financial parameters. According to the authors, in addition to financial measuring, a way should be found to measure non-financial parameters within a company. The paper is therefore aimed at exploring the influence of business excellence and its values on business in the Croatian business practice. The authors carried out a research on 106 large Croatian enterprises with more than 250 employees, exploring the connection between the values of business excellence and company performance, Results show a positive correlation between applying the principles of business excellence and successful company performance in practice. Keywords: business excellence, company performance, performance measurement, large Croatian enterprises. Hrvatske tvrtke trebaju novi pristup, koji ce im pruziti konkurentsku snagu, a koji je zasnovan na poslovnoj izvrnosti. Stoga je nuzno uvodenje novih koncepata u poslovni svijet, posebno u velike tvrtke koje su tradicionalno inertne i izlozene globalnoj konkrurenciji, a nalaze se u tranzicijskim zemljama poput Hrvatske. Danas 75% izvora vrijednosti u tvrtci vise nije moguce izmjeriti standardiziranim racunovodstvenim tehnikama, pa se u 21. stoljecu vise nije moguce pouzdati iskljucivo u financijske pokazatelje poslovanja. Autori isticu kako je, uz financijsko mjerenje, potrebno pronaci nacin za mjerenje nefinancijskih parametara unutar tvrtke. Cilj ovog rada je istraziti utjecaj poslovne izvrsnosti i vaznosti iste u poslovnoj izvedbi za poslovne rezultate tvrtki u hrvatskoj poslovnoj praksi. Autori su proveli istrazivanje 106 velikih hrvatskih poduzeca s vise od 250 zaposlenih, istrazujuci povezanost izmedu vrijednosti poslovne izvrsnosti i poslovnih rezultata. Utvrdena je pozitivna korelacija izmedu primjene principa poslovne izvrsnosti i poslovnih rezultata., UDC 005.61:005.71-022.56>(497.5) 1. INTRODUCTION The prevailing belief in the Croatian business practice is that the change in organisational structure itself will be sufficient for all other necessary changes, which should [...]

This essay offers a counterpoint to Le Breton-Miller and Miller's argument that family firms are the ideal organizational form for arts-based businesses and creative work. While the notion of the [...]

This study explores interlocking directorates, with specific focus on those connections when a director sits as an inside director for an American corporation and an outside director for firm located outside of North America. The goal of this study is to explore the spatial relationship between the personal histories of directors and the headquarter's location of the corporate boards on which they sit. First, it was found that a geographical relationship in the interlocking network of American companies exists. Second, it was determined that domestic personal histories played a significant role as 96.5 percent of directors attended a university in the United States and 93.4 percent directors were born there. When North American universities and North American births were deleted from the sample, a geographical pattern also emerges for Asian firms. Finally, the study found that the lone region that consistently displayed greater firm performance where a director's personal history and the interlocked company were the same as Asia. Keywords: interlocking directorates, brain circulation, corporate geography., Historically, prosperous companies flourished by developing new products and processes through the generation of internal knowledge. In today's fast paced business climate though, competitive firms utilize external links more than [...]

Classical paradigm of management formulated over century ago started to receive substantial critics already in the second half of 20th century. First attack on the paradigm appeared by the end of 1960s when the environment finally started to be treated as an important element of management. The second significant attack appeared in 1978 when Tom Peters (1978) developed the concept of eight principles of excellence which were in complete contradiction with the principles of classical paradigm of management. Peter Senge created further deflection from the paradigm in the 1990 with the concept of learning organization, while in the same year Michael Hammer and James Champy founded the thesis of organization of work around processes, as opposed to organization around tasks. At the beginning of 21st century a significant attack on the traditional paradigm of management was carried out by Peter Drucker who pointed out the changes which will emerge and their implications on enterprise, its organization and management. The greatest attack on classical paradigm of management was carried out by Gary Hamel (2007), stating that many management principles and systems are based on inadequate paradigm(s), and therefore manager's innovations represent ultimate source of competitive advantages. All of this led some authors to ask themselves a question: Is the end of management on the way? In search for an answer to this question, this paper shows that the end of management has not come, but its future is yet to be devised. Klasicna paradigma menadzmenta, formulirana prije nesto vise od sto godina, pocela je vec u drugoj polovini 20. stoljeca dozivljavati udare. Prvi udar na tu paradigmu nastupio je krajem 60-ih kada se okolina konacno pocela tretirati vaznim elementom menadzmenta. Drugi znacajniji udar na tu paradigmu nastupio je 1978. kada je Tom Peters (1978) razvio koncept osam nacela izvrsnosti, koja su u potpunoj opreci s nacelima klasicne paradigme menadzmenta. Peter Senge je 1990. nacinio daljnji otklon od te paradigme konceptom ucece organizacije, a iste godine Michael Hammer i James Champy utemeljuju postavku o organizaciji rada oko procesa, a ne oko zadataka. Pocetkom 21. stoljeca znacajan atak na tradicionalnu paradigmu menadzmenta izvrsio je Peter Drucker koji ukazuje na promjene koje ce nastati i njihove implikacije na poduzece, njegovu organizaciju i menadzment. Najveci udar na klasicnu paradigmu menadzmenta izveo je Gary Hamel (2007), tvrdeci da je vecina menadzerskih principa i sustava utemeljena na potpuno nepotrebnoj menadzerskoj paradigmi, pa stoga menadzerske inovacije predstavljaju ultimativni izvor konkurentskih prednosti. Sve je ovo navelo neke autore da si postave pitanje: Je li dosao kraj menadzmenta? Trazeci odgovor na to pitanje, u ovom se radu ukazuje na to da nije dosao kraj menadzmenta, vec da njegovu buducnost tek treba osmisliti., 1. INTRODUCTION The history of management is as old as the history of human society. The emergence of human race is closely followed by the emergence of various social groups [...]

Though information technology (IT) transformation programs are gaining in importance, we know little about the nature of the challenges involved in such programs and how to manage them. Using grounded [...]

The study examined the effect of corporate culture on organizational commitment. The sample for the study consisted of three hundred and fifty (350) employees from seven randomly selected major oil companies in Nigeria. The study utilized both quantitative data (questionnaire) and qualitative data (interview). The spearman rank correlation coefficient and Multiple Regression Model using the Statistical Package for Social Sciences (SPSS) version 15 were utilized for the analysis of data. Our finding revealed a positive and significant relationship between corporate culture and organizational commitment. Specifically, a positive and significant relationship was revealed between competitive, entrepreneurial and consensual organizational cultures and organizational commitment. Conversely, a negative relationship was revealed between bureaucratic organizational culture and the various dimensions of organizational commitment used in this study. Based this finding, it was concluded that the prevailing organizational culture had a significant positive effect on organizational commitment. The managerial implications of these findings were also discussed. Keywords: Corporate culture, organizational commitment, major oil companies, Nigeria, CONTEXT OF THE PROBLEM Corporate culture and Organizational commitment have received significant attention in studies of the work place. On the one hand, corporate culture has received much attention in [...]

International entrepreneurs are often confronted with unfavorable normative, regulatory, and cognitive institutional environments. Those entrepreneurial firms that successfully navigate this uneven terrain appear to defy institutional constraint and create economic [...]

To sense and adapt to uncertainty by leveraging prior entrepreneurial knowledge is a critical ability. However, for many individuals, prior entrepreneurial knowledge is absent or underdeveloped. We investigate the ability [...]