Sasin Journal of Management, Volume 15, Number 1, 2009


Sasin Journal of Management, Volume 15, Number 1, 2009

Tests of the Fama and French Three Factor Model in Jordan

Dr. Khaled Abdelal Al-Zubi is the Dean of the College of Economics and Business Sciences at the Hashemite University, Jordan.

Dr. Hussein Mohammad Salameh is an Assistant Professor at the College of Banking and Financial Sciences, Financial Management Department, The Arab Academy for Banking and Financial Sciences, Jordan.

A dynamic capital market is an important segment of the financial system of any country in which it plays a significant role in mobilizing savings and channeling them for productive purposes.  The efficient fund allocation depends on the stock market efficiency in pricing the different securities trade in.
Sasin Journal of Management, Volume 15 November 1, 2009

The objective of this paper is to specify a model that may predict the stock return in the industrial companies sector in Amman Stock Exchange (ASE). Another objective is to find out if the applicable models employed in the developed markets explain the cross sectional variations on stock return at the industrial sector in Amman Stock Exchange. We used Generalized Methods of Moments (GMM) to regress the two main models. The results showed that two of the three factors of the Fama and French (FF) model were applicable in the industrial sector in ASE (Market return and Size). We also found that the FF model explains the common variation and captures the cross section variation in stock return better than the Capital Asset Pricing Model (CAPM).

In Jordan, specific evidence has not been published on the FF three factor model. One feature of the FF which reduces its appeal (when compared to its simpler counterpart, CAPM is the difficulty surrounding the nature and construction of the size and book-to-market factors. This is particularly so in smaller markets where extensive and reliable data over sufficiently long time-series are prohibitively expensive to compile or often simply do not exist. Consequently, the primary objective of the current paper is to identify a relatively simple way around this problem.

How System Thinking Can Be Applied in Service Marketing

Dr. Siripong Charoensuk holds Doctor of Business Administration (DBA) in Marketing Management from University of South Australia (Australia). Currently he is working as ISP Marketing Manager at TOT Public Company Limited.

This article reviews the integration of service marketing with the holistic viewpoint from the system thinking concept.  With the presentation of four assumptions, the applied model for adapting system thinking in service marketing is developed.  Moreover, this article also presents the opportunities and limitations of using system thinking in service marketing in practice.

The Impact of Corporate Downsizing on Innovation: A Preliminary Conceptual Framework

Dr. Franco Gandolfi is the Director of MBA/EMBA Programs and a Professor of Management at the School of Global Leadership and Entrepreneurship, Regent University, U.S.A.

Dr. Gary Oster is the Director of Doctor of Strategic Leadership Program and Associate Professor of Innovation & Entrepreneurship at the School of Global Leadership and Entrepreneurship, Regent University, U.S.A.

Organizations have practiced downsizing in the pursuit of increased efficiency and effectiveness for more than three decades. As a strategy of choice, downsizing is adopted to achieve bottom-line objectives. While an extensive body of literature has developed related to the overall consequences of downsizing, comparatively few studies have examined the impact of downsizing on innovation. This paper synthesizes the bodies of literature of both downsizing and innovation and develops three preliminary conceptual frameworks depicting a plausible impact of downsizing on the innovative capability of an organization. The paper concludes that more in-depth research is required to validate, modify, and extend the conceptual frameworks.

An Empirical Study of the Factors That Impact Medical Representatives’ Attitude toward the Intention to Use M-Learning   for Career Development

Kennedy D. Gunawardana, Ph.D. is a Professor of Accounting Information Systems at Department of Accounting, University of Sri Jayewardenepura, Sri Lanka.

Sangeeth Ekanayaka is a Research Assistant at A.C. Nelson Sri Lanka Branch.

The proliferation and popularity of mobile phone usage in Sri Lanka has created an untapped potential for educators and organizations. The very recent introduction of m-learning to the higher education sector of the country is set to exploit much of this opportunity, but there remains some doubt on the readiness of people toward this revolutionary distance learning method. This paper critically evaluates the factors that would affect the intention to use m-learning among medical representatives, and also intends to shed some light on the barriers that hold the pharmaceutical sector back from utilizing it as a training tool. A sample of 210 medical representatives was selected, from an urban population of 450. The instrument of data collection was a Likert scale questionnaire. Data analysis was carried out using the statistical software SPSS 16.0.  Correlation studies, simple linear regression and one-way ANOVA tests were conducted to establish relationships and test hypotheses. The results supported past literature through ten of the hypotheses with the exception of perceived self-efficacy and present level of education, which were not found to bear an impact on the intention to use m-learning. This empirical study is a first of its kind in Sri Lanka, and hopes to contribute to the existing body of literature on technology acceptance, in addition to providing invaluable insights to the pharmaceutical, mobile telephony and education sectors of this country.

Relationships between Organizational Citizenship Behaviors and Organizational Effectiveness in an Indonesian Financial Company

Dr. Tony Wijaya is a lecturer and researcher at the Department of Economic, Economic College of Isti Ekatana Upaweda Yogyakarta (STIE IEU Yogyakarta), Indonesia

When the labor market becomes tighter and the economy is uncertain, companies often respond by downsizing and by asking those employees who remain to be more productive and dependable. It is, therefore, of interest to both managers and researchers to better understand the relationship between organizational effectiveness and organizational citizenship behaviors.  Organizational citizenship behaviors (OCB) describe actions in which employees are willing to go above and beyond their prescribed role requirements.  Prior theory suggests and some research supports the belief that these behaviors are correlated with indicators of organizational effectiveness.  Studies have yet to explore whether relationships between OCB and organizational effectiveness are generalizable to Eastern samples.  The present study examines relationships between OCB and two indicators of organizational effectiveness — the efficient use of human resources and perceived service quality – for branches of a financial company in Indonesia. The results support a relationship between the OCB dimension of altruism and the efficient use of human resources.  Implications of these results are discussed.