The Journal of American Business

The primary goal of the journal will be to provide opportunities for business related academicians and professionals from various business related fields in a global realm to publish their paper in one source. The Journal will bring together academicians and professionals from all areas related business fields and related fields to interact with members inside and outside their own particular disciplines. The journal will provide opportunities for publishing researcher's paper as well as providing opportunities to view other's work. All submissions are subject to a double blind peer review process. The Journal is a refereed academic journal which publishes the scientific research findings in its field with the ISSN 1540-7780 issued by the Library of Congress, Washington, DC. The journal will meet the quality and integrity requirements of applicable accreditation agencies (AACSB, regional) and journal evaluation organizations to insure our publications provide our authors publication venues that are recognized by their institutions for academic advancement and academically qualified statue. No Manuscript Will Be Accepted Without the Required Format. All Manuscripts Should Be Professionally Proofread Before the Submission. You can use www.editavenue.com for professional proofreading / editing etc...The journal submission guideline can be seen at: submission guideline

The Journal is published two times a year, December and Summer. The e-mail: jaabc1@aol.com; Website: AABJ. Requests for subscriptions, back issues, and changes of address, as well as advertising can be made via the e-mail address above. Manuscripts and other materials of an editorial nature should be directed to the Journal's e-mail address above.

Are Instruction Expenditures Cost-Effective in Improving High School Completion in Hawai‘i’s Maui District?

Dr. Larson Ng, University of Hawai‘i at Mānoa, Honolulu, Hawai‘i

ABSTRACT

The following study attempted to analyze the cost-effectiveness of instruction expenditures on public high school completers in Hawai‘i’s Maui District comprised of the islands of Maui, Molokai, and Lanai. Using the high schools that comprise the Maui District, a correlation and bivariate regression procedure were employed to determine the nature and econometric relationship between instruction expenditures and high school completion from 2000 to 2007. Although instruction expenditures had predominately increased for all high schools, increases in completion were not observed for all schools. Hence, with the exception of Lahainalua High School, there was no conclusive econometric evidence to confirm the cost-effectiveness of instruction expenditures lending itself to higher numbers of high school completion in the Maui District during 2000 to 2007. Instruction is a critically important factor that contributes to high school completion. Although there are many techniques to measure the productivity of instruction, assessing its effectiveness through a financial perspective remains one practical way to accomplish this task (Beard, 2009). Consequently, this study will attempt to test whether increases in instruction expenditures result in higher numbers of high school completion by analyzing the Hawaii’s Department of Education’s (DOE) high school instruction expenditures (i.e., teacher salaries and benefits, substitutes, instructional paraprofessionals, pupil-use technology, software and instructional materials, trips, and supplies) and its econometric relationship with high school completers from the Maui District (Hawaii Department of Education, n.d.). With this research, it is hoped that the results will attempt to confirm whether increased instruction funding is cost-effective in increasing public high school completion. The following section will go over the high school instruction expenditures, size of its graduation classes, and high school completers for the DOE’s district of Maui as well as all of its individual high schools from 2000 to 2007.

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The Correlation Between Florida’s Blood Alcohol Concentration Testing Laws in Motor Vehicle Traffic Accidents Resulting in Fatalities and Florida’s Total Number of Confirmed Alcohol-Related Traffic Fatalities Reported From 2000 – 2015

Dr. Ashley Werdann, Public Policy Institute, Jacksonville University, FL

Dr. Richard Murphy, Davis College of Business and Public Policy Institute, Jacksonville University, FL

ABSTRACT

The purpose of this study was to determine if Florida’s blood alcohol concentration (BAC) testing laws in motor vehicle traffic accidents resulting in fatalities had a direct correlation with Florida’s total number of confirmed alcohol-related traffic fatalities reported from 2000 through to 2015. Florida statutes, case law, and policies governing BAC testing and reporting in motor vehicle traffic accidents were examined prior to reviewing annual reports written by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). The FLHSMV annual reports extracted information from Florida law enforcement agency reports of motor vehicle traffic accidents from all counties in Florida based upon the same criteria, which demonstrates how the reporting of motor vehicle traffic accidents of all types dramatically differs from county to county, as well as from investigating officer to investigating officer. The results indicate that Florida’s discretionary BAC testing and reporting affects both the total number of fatalities resulting from motor vehicle traffic accidents and the total number of confirmed alcohol-related traffic fatalities. This study concludes that mandatory BAC testing in alcohol-related motor vehicle traffic accidents resulting in fatalities in conjunction with accurate and complete reporting of BAC testing results is required to decrease the number of confirmed alcohol-related traffic fatalities in Florida. State legislation requiring BAC testing after alcohol-related motor vehicle traffic accidents resulting in fatalities varies from state to state (NHTSA, 1982). The chemical tests to determine BAC are the fundamental tools for enforcing state laws relating to driving under the influence (DUI) / driving while intoxicated (DWI) (NHTSA, 1982). According to the National Highway Traffic Safety Administration (NHTSA), all state laws indicate reliance on a model law that incorporates eight (8) general components (NHTSA, 1982).

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Regulation and Bank Performance

Dr. Zgarni Amina, University of Tunis El Manar, Tunisia

Dr. Hassouna Fedhila, Professor, University of Manouba, Tunisia

ABSTRACT

Banks are the cornerstone of all the economies of the world and the basis of all financial mechanisms. However, the context of deregulation and liberalization in which they operate risks affecting their financial stability, and calls for prudential regulation that is supposed to focus on their performance. The objective of this research is to assess the effect of prudential regulation issued by international regulators on bank performance in a Tunisian context. Empirical validation from a sample of all listed Tunisian commercial banks, observed over a period stretching from 2001 to 2016, shows that the prudential rules applied in the context of the Tunisian banking sector and measured by the solvency ratio and liquidity ratio improve the accounting performance of banks as measured by the return on assets (ROA). We have also shown from a robustness test that prudential regulation measured by the solvency ratio favors accounting performance measured by return on equity (ROE). It cannot be denied that banks enjoy a dominant position in all economies and that they are the main driver of economic growth (King and Levine 1993 and Levine 1997). This only serves to reinforce the challenges that supervisors may face, especially in the context of disintermediation, intense competition, excessive risk-taking, deregulation and diversification in which banks operate. Today, this new banking context is also characterized by internationalization fueled by technological progress and recent financial innovations that have been behind better risk management. Added to this is a new banking reality marked by the decommissioning of credits, the liberalization of foreign exchange, the open markets and the increasingly volatile rates that have led to an unprecedented vulnerability of market activities.

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The Effect of Information Security Management Systems Implementation on Organizational Culture

Dr. Wen-Lung Tsai, Oriental Institute of Technology, New Taipei City, Taiwan

Xin-Yu Bai, Oriental Institute of Technology, New Taipei City, Taiwan

ABSTRACT

In this paper, we theorized on the effect of organizational culture on the implementation of information security management systems. Using the findings of a case study, we identified general criticisms of security standards. Furthermore, we developed a cultural construction that illustrated the aspects of culture that best assist an enterprise in the implementation of information security management systems. Finally, we proposed that institutional management play a crucial role in the further growth of the adoption of security standards. Many organizations are increasingly dependent on information systems (IS) and spend much money on information security management systems (ISMS). However, Wright (2005) reports that half the organizations that had implemented ISMS were experiencing challenges, while the other 50% had failed (cancelled prior to completion or delivered and never used). Problems regarding the cost, timeliness, and effects of implementation still exist. To reduce costs, improve timeliness, and provide better effects, many standards and models related to the development process have been defined, such as ISO/IEC 27001:2013 (ISO, 2013). The adoption of ISO/IEC 27001 by organizations brought good results with regard to delivery time and the reduction of defects and costs. ISO/IEC 27001 spells out the minimum requirements of information systems and ISMS in different processes and in each PDCA (Plan, Do, Check, Action) phase. The model is used for two purposes. The first is to improve measures of control, and the second is to benchmark companies. After widespread adoption, ISO/IEC 27001 has become a standard for ISMS. However, results are disappointing and the failure rate high, despite the enormous amount of resources spent on ISMS.

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The Role of Volatility in Market Efficiency of Investment Banks During Financial Crisis

Dr. Han-Ching Huang, Chung Yuan Christian University, Taiwan R.O.C.

Su-Shin King, National Taiwan University, Taiwan R.O.C.

ABSTRACT

This study examines the investment bank spillover efficiency in financial crisis. Specifically, we aim to investigate the role of volatility in market efficiency of investment banks, especially in the situation of market turbulence before and after Lehman Brothers Holdings, Inc filed for Chapter 11 bankruptcy protection. We find that cross-effect, representing market maker hedging between two investment banks, existed among market makers in maneuvering inventories. Contrary to cross-effect, the autocorrelation-effects in investment bank show a better performance for market makers to mitigate price volatility. A nested causality approach, which examines dynamic return-order imbalance relationship during the price formation process, confirms the results. Market efficiency has been discussed for decades since Fama (1969). However, during market turbulences, investors are more skeptical toward market efficiency, such as the financial crisis in 2008. Brooks (2007) finds higher inefficiency during 1997 Asian financial crisis. Moreover, investors overreacted not only to local news, but also to news originating from other markets, especially when the news events were adverse. Bowe and Domuta (2004) examine Jakarta Stock Exchange (JSX) data and find evidences of herding and positive feedback behaviors by both foreign and domestic investors before, during, and after the 1997 Asian financial crisis. Choe et al. (1999) documents that investors who engage in herding and positive feedback trading push prices away from fundamentals and create return-generating noise with excess volatility. The financial crisis in 2008, after Lehman Brothers file bankruptcy protection, makes international capital markets in turbulence (Melvin and Taylor, 2009; Lins et al., 2017). In this study, we examine the market efficiency process in spotlight investment bank industry. Tracing back to Glass-Steagall Act (GSA) in 1933, investment banks were separated from commercial banking activities. However, Congress established the Gramm-Leach-Bliley Act to eliminate the GSA restrictions against affiliations between commercial and investment banks in 1999.

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