European Journal of Business Science and Technology, 2019 (vol. 5), issue 2

Hedging Currency Risks? An Evaluation of SMEs in Northern Germany

Jan Christoph Neumann

European Journal of Business Science and Technology 2019, 5(2):129-142 | DOI: 10.11118/ejobsat.v5i2.177  

One of the important issues for companies is liquidity from domestic and foreign trade. The market is classically defined by the number of available markets. Globalization and free trade zones set up the foreign market, which becomes increasingly important - even for SMEs. This paper analyzed approx. 60,000 bank transactions with foreign reference of Northern German SMEs by using Chi-square test and correlation analysis. The analysis proofs that an increasing number of foreign transfers increases the number of foreign currency accounts per company. The results also show that despite the existence of currency hedging tools, a significant proportion...

Smart Information System Capabilities of Digital Supply Chain Business Models

Jochen Nürk

European Journal of Business Science and Technology 2019, 5(2):143-184 | DOI: 10.11118/ejobsat.v5i2.175  

This study explores how supply chain management (SCM) information system (IS) capabilities can lead to superior business performance, and what are the detailed capabilities and methods to master volatility and uncertainties in business environments. Key concepts in SC modelling have been identified for decreasing SC complexity and increasing SC agility and key methods for supply network planning and synchronisation for optimising business performance and objectives that are often contradicting at the same time. The study developed a best practice recommendation for profit-optimised SCM for companies with capital intensive and capacity constrained resources...

Corporate Venturing Evaluation: How Start-Up Performance is Measured in Corporate Venturing During the Collaboration Phase

Steven Rottmann

European Journal of Business Science and Technology 2019, 5(2):185-199 | DOI: 10.11118/ejobsat.v5i2.179  

In the context of business performance assessment, current research often focuses on evaluating effects of innovation projects with start-ups. Subsumed as corporate venturing (CV), investigating the impact of these projects is becoming increasingly important. Thus, the number of studies on the ex-post value of corporate venturing projects (CVP) has steadily increased over the last years. In contrast, this research attempts to cover the evaluation of CVP in the period between from the contract conclusion to termination. By conducting interviews, this research primarily aims at identifying indicators applied for evaluating CVP performance during the...

Comparing Financial Performance of State Owned Commercial Bank with Privately Owned Commercial Banks in Ethiopia

Wesen Legessa Tekatel, Beyene Yosef Nurebo

European Journal of Business Science and Technology 2019, 5(2):200-217 | DOI: 10.11118/ejobsat.v5i2.174  

The main objective of this study is to examine the effect of ownership structure on financial performance of Ethiopian commercial banks. Hence, the financial performance of state owned commercial bank was compared with privately owned commercial banks in Ethiopia based on key financial performance measures. In order to achieve the stated objective, the study adopts a quantitative research approach by using financial ratio analysis and test for means equality analysis techniques. Samples of fifteen commercial banks were selected based on the year of establishment. Audited financial statement data covering from 2011 to 2017 analyzed. The result reveal...

The Effects of Short Selling on Financial Markets Volatilities

Kwaku Boafo Baidoo

European Journal of Business Science and Technology 2019, 5(2):218-228 | DOI: 10.11118/ejobsat.v5i2.183  

The paper investigates the relationship between short selling activities of stocks on the volatility of the US market and its sectors. We apply the multivariate DCC GARCH Model on the NYSE US 100 Index between November 2017 and October 2018. We find evidence that investments in some specific firms on the market reduce the market volatility and higher short selling activities reduce risk in the market. The study also finds that firms in the financial sector dominate the market and short selling activities in this sector has a greater impact on the market volatility. We also find portfolio managers to be better off investing in the market than creating...