Hazards to Effective Due Diligence
It is not surprising that many business deals fail to realize their expected future value because some deal makers fail to perform effective due diligence. Successful deal makers, however, know that due diligence is one of the most important tasks in successful deal making. Thus, they avoid the psychological and contextual traps that cause poor due diligence. In this article, I describe the hazards – the psychological biases and contextual factors – that might affect the due diligence task. These hazards include information availability bias; confirmation bias; over-confidence bias; time pressure; self-interested agents; deal fever; narrow focus; and complexity. Following this review, I provide a number of suggestions to help deal makers and organizations overcome these hazards.
Keywords: Deal Making, Due Diligence, Decisions, Biases, Hazards, Negotiation
The 2008 Global Financial Crisis: The Case of a Market with Consistent Losses Ever Since
Hadeel Yaseen, Ghassan Omet, and Ghassan Omet
Following the 2008 global financial crisis, and in common with many stock markets around the world, the Amman Securities Exchange (ASE) experienced some heavy losses. However, what makes the Jordanian market probably different is its inability to recover. The weighted price index fell from 7519.3 points in 2007 to 5520.1 points in 2009, to 4593.9 points in 2012, and to 4336.7 points by the end of 2013 respectively. With a statutory minimum tick which is equal to one pence, this observation has some serious implications to the liquidity cost that prevails in the Jordanian capital market, and the cost of financing listed firms. The primary aim of this research paper is to examine the impact of the stock market crash in Jordan on liquidity cost. Based on a total number of 108 listed stocks and daily data during the years 2007 and 2009, the empirical results indicate that liquidity cost on the Jordanian capital market is high. In addition, the results show that the 2009 stock market crash has led to a substantial increase in liquidity cost. In other words, the market must consider a number of remedial measures to improve its’ operational efficiency.
Keywords: Amman Securities Exchange, Bid-ask Spread, Minimum Tick Specialist
The Impact of Globalization on the Changes in Industrial Relations and Development of Employee Participation – Evidence from Poland
The process of globalization influences not only economic relations but also causes significant changes in the area of industrial relations and employee participation. The answer to the challenges of globalization has been the emergence of new transnational institutions of participation in the form of European Works Councils (EWCs) and European Companies (SEs) and the concluding of transnational company agreements. The aim of this paper is to examine the impact of globalization on the development of employee participation in Polish industrial relations. The paper argues that globalization leads to dissemination of forms of employee participation in Polish companies but the scope of the forms of participation is still lower than in companies in the old EU countries. The slow growth of participation in Poland has primarily resulted from an indifferent or even hostile attitude to participation on the part of the state and social partners.
Keywords: Employee Participation, Globalization, European Companies, European Works Councils, Transnational Company Agreements
The Marketing & Positive Impacts of Behavioral Control System on Societies & Countries
Ahmad Adel Mostafa and Ahmad Mohamed Tawfik
Behavioral control systems are one of the most prominent tools used by managers and marketers for different internal and external purposes. One of the most important external purposes they have been used for is influencing consumer behavior. This paper explores the positive effects of implementing such systems on societies. It discusses consumer perception of the systems, their influence on their financial behavior in different contexts, how can they create order and how as well as to what extent should it be implemented and finally how can minimize negative consumer behavior. A judgment based sample of typical consumers was surveyed using questionnaires for collecting primary data on these aspects. Secondary data from Egypt, Singapore and Malaysia was also used as an example of using behavioral control systems. Results show that consumers in general have a positive attitude towards imposing such systems. However, there were worries about misuse, abuse and overuse of theses systems’ policies. Consequently, data shows that behavioral control systems can positively enhance and influence consumer behavior as long as it is used to balance both consumer and retailer interests in a moderate, risk free manner.
Keywords: Behavioral Control System, Economics, Society, Financial, Egypt, Singapore, Malaysia
Aksemsettin Mah. Kocasinan Cad.
Erenoglu Is Merkezi
Fatih – Istanbul, TURKEY
Email: [email protected]
This work is licensed under a Creative Commons Attribution 4.0 International License.