An Attack Made By Either Former Vision Crisis or Change Management Principles

The purpose of this study is to examine and discuss current literature on financial crisis management within organisational development. The key characteristic of a crisis is that you cannot control it that’s why they call it crisis “management”. In order to be able to manage crises effectively and it sets out a theoretical framework for the decision-making process should understand the steps of effective crisis management. Management of change represents a significant responsibility for the managers and specialists, for those who have not only to assure the survival of the organization,  but  to  assure  the  fundamentals  for  future  development  and competitiveness. Results from the present investigation showed that the impact of the global crisis is being driven by the country’s high dependence on management of a financial crisis which led to regulation is rising and is creating new challenges that need managing. It is hoped that the study will be able to fill the gap in research in the area of crisis vision and change management regulation due to the limited literature on this area in emerging countries. Keywords: Crisis, Crisis management, Organizational development, Financial regulation, Decision-making, Systemic risk, Liquidit

The Development of Accounting Regulation in the Libyan Region Countries in Africa

This paper has identified the impact of Libya’s unique accounting regulation, economic, political, religious, social and cultural systems on the development of its accounting profession in this country, and, by extension, on the way accounting is practiced. In order to have a better understanding of Libyan’s present accounting practices, and its future development tendencies, we examine the path of transition in Libya from a planned economy to a market economy since the early days of the 20th century, which has resulted in fundamental changes such as the restructuring of state-owed enterprises, a noticeable growth in foreign direct investment, and an emerging private sector. These changes put immediate pressure on accounting practice to change to meet the demands of the new business environment. The examination, investigation and analysis have illuminated a number of important factors that have affected the development of regulation in Libya. We also examine Libyan’s using IAS/IFRS advantage is as a global comparability of financial report. The standard adjust/change from national GAAP to support IAS/IFRS implementation will have impact to the Libyan accounting environment due to the different principles used to report the corporation financial activity framework.The findings indicate that Libyan companies have experienced pressure from business environmental factors, such as new state disclosure regulations, competition, deterioration of financial performance and the need for more accounting practices. Our conclusions could be of interest to other countries, particularly developing or emerging economy, who want to improve the high-quality of their accounting regulation and practices for decision making. Keywords: Accounting regulation; Accounting practices; Auditing; IAS/IFRS; Liby

The Determinants of Capital Structure Choice: Evidence from Libyan Firms

This study investigates the determinants of capital structure of Libyan firms listed in the stock exchange. The investigation is performed using two models Generalised Method of Moments (GMM) for panel data and OLS cross-sectional regression estimator approach for eighth listed firms over the period 2008 to 2013. This study employs two alternative leverage measures including: equity book value (LEVB) and equity market value (LEVM) as dependent variables and three determinant factors including: financial market development variables, banking sector development variables and individual firm leverage variables as determinants of capital structure. Empirical findings reveal that both the trade-off and the pecking order theories can explain in Libyan firms’ financing decisions. These results indicate that high price-earnings ratios and high interest rates will cause firms to choose equity over debt, as both of these factors reduce the cost of equity finance. Furthermore, the results suggest an unimportant role for economic growth and inflation rates in explaining the variation in debt-equity ratios. Results show that further development in the stock market indicators are negatively and significantly related to the leverage ratios in (Libyan firms) suggesting that as equity markets become more developed and their liquidity improves, their importance as tools for corporate financing increase by allowing firms to issue more equity and reduce their reliance on debt, which implies that transaction costs for equity are high relative to debt, firms are credit constrained or that the issue cost of equity high due lack of competition among investment banks, or it is possible that improved information dissemination, monitoring and risk sharing, market firms better credit risks for bank loans,  while banking sector variables (especially bank deposits) are significantly and positively associated with debt equity ratio. Keywords: Capital Structure, Stock Exchange, Trade-off Theory, Pecking Order Theory, Agency Theory, OLS Cross-sectional Regression, GMM Estimation, Libyan Emerging Markets

Virtual Spider Threads Interconnecting Globally: From ‘Soft Power’ to MENA Stock Market Volatility

This study investigates the dynamic of the volatilities and the conditional correlations between the 4 world-stock market of London, France, Frankfort, US and 8 Middle East and North African (MENA) stock markets from Amman, Bahrain, Egypt, Morocco, Muscat, UAE, Saudi Arabia, and Tunis. Using the GARCH, TGARCH models that account for asynchronous data, conditional heteroscedastic, asymmetric volatility responses, and the joint dynamics of each country’s index with the world-market returns. Our results show that shocks originating in world-market conflicts and the associated uncertainty have increased the volatility of MENA equity markets. Secondly, regardless of its impact on volatility spillover transmission, there is little evidence to suggest that MENA markets have become more integrated with world-markets after financial crisis. Finally, these results are robust to model specification and consistent with the notion that uncertainty contributes to financial volatility spillover. It is worth mentioning that the findings from this paper will have a significant implication for investors, managers, market regulators, decision-makers, and scholars interested in the equity markets of MENA region in particular, and other developing nations in general. Keywords: GARCH, TGARCH, Conditional correlations, Stock market volatility spillover, World equity market, MENA equity markets

Accounting for Libya’s Economic Growth: Past Recent and Near Future

The aim of this paper is to explore which economic growth is essential for a strong, well-developed and efficient accounting in Libya. In connection with understanding the significance of subjective matter, this study seeks to explore the development of the accounting framework, assess recent efforts to create new deregulation, institutions and attract further foreign investment that could modernise the economic, and offer suggestions for growth that could stimulate additional economic development. In the main, the paper provides an assessment of the quality and effectiveness of the operation for the economic and infrastructure of the alternative framework called growth accounting to obtain a different perspective on the sources of economic growth. This study’s results will be useful in reaching policy decisions to develop accounting to increase economic growth in developing countries or/ emerging economies, in general, and within Libya, in particular. Furthermore, providing empirical evidence regarding this critical issue within specific emerging economies will add to the literature on economic reform related to the role of accounting framework development and its influence on economic growth and, thus, initiate an exciting topic for study. Keywords: Libya, Accounting, Economic growth, Cobb-Douglas production function

Twinkle, Twinkle, Little Star, How Wonder Islamic Finance: Up Above the World So High, Like a Diamond in the Sky

This study investigates empirically into the acclaimed positive role played financial market leading growth, with evidence from the MENA Islamic finance. Utilising, several econometric techniques models, such as unit root test, co-integration test and formal tests of ARDL framework developed by Granger causality and quarterly MENA data for the period 2000:1- 2014:2. Empirical findings revealed that both Engle-Granger and Johansen co-integration test support the view that there is a short and long-run relationship between financial Islamic banking development and economic growth in MENA. On the other hand, there was no evidence to support the view that financial Islamic banking development in MENA is a leading sector in the process of the country's economic development. In particular, the causality relationship between RGDP growth and finance of Islamic banks in MENA is a bi-directional long-run granger causality, which reflects positively growth contribution of financial Islamic banking development in the economic development. Higher development in the financial Islamic banking causes higher real economic growth. High economic growth in turn promotes development in the financial Islamic banking. This study's results will be useful in reaching policy decisions to develop financial Islamic banking to increase economic growth in developing countries or/ emerging economies, in general, and within MENA, in particular. Furthermore, providing empirical evidence regarding this critical issue within specific emerging economies will add to the literature on financial Islamic banking related to the role of Islamic finance development and its influence on economic growth and, thus, initiate an exciting topic for research as it is one of the pioneering studies of Islamic finance

Libya'a economic reform programme and the case for a stock market

This thesis was undertaken to develop a conceptual framework for a research model with a specific focus on the Libyan economic reform programme and the development of the Libyan stock market between 1999 and 2007

Libya’s economic reform programme and the case for a stock market

Libya is still in the early stages of its financial liberalisation and reform following eleven years of political chaos and nearly three decades of central planning control. However, it is advancing as a result of the removal of UN and US sanctions during the last few years, and there are signs of rapid development. Despite these advancements, no study has been found which explores the readiness of the Libyan financial market for the establishment of a stock market. This thesis was undertaken to develop a conceptual framework for a research model with a specific focus on the Libyan economic reform programme and the development of the Libyan stock market between 1999 and 2008. The empirical study investigates the determinants of economic reform and stock market performance within the Libyan economy utilising data from three different sources and a multi-method approach. Self-administered questionnaires were distributed to the entire target population of the Libyan financial market, banking sector and a number of companies. A total of 330 questionnaires were distributed and of these, 203 were returned completed and usable, a response a rate of 61.5 per cent. Fourteen semistructured interviews were held with managers in a subset of companies, selected via a stratified sample of respondents to the self-administered questionnaires. The third method of data collection used financial market data over the period 1995-2006 from 42 emerging market countries. This data was analysed to examine whether best practice from emerging stock markets is transferable to the Libyan context. As a result, this study provides some knowledge that might usefully be generalised to other developing countries, particularly to those with a similar economic structure. The primary contribution of this study lies in the fact that it is the first attempt to study the impact of stock market development on the economic growth process of a specific-country experience and evaluates the success of the economic reform programme and Libya’s readiness to complete its transition to a market-based economy. The key findings are; first, the economic reform programme variables have an impact upon various features of the stock market performance variables within a linear regression model; second, stock market development has a significant effect on economic growth, and this effect remains strong even after controlling for banking sector and other control variables using a growth model; third, although the evidence largely supports the view that there is a stable, long-term equilibrium relationship between the evolution of the stock market and the evolution of the economy, it provides no support for the view that the stock market is a leading sector in the process of Libya’s economic development. The evidence supports the view that the relation between stock market development and economic growth in emerging economies is bi-directional. The findings describe that the stock market and the banking sector in Libya in particular and emerging economy in general are complementary rather than substitutes in providing financial services to the economy. This study seeks to make an original contribution to knowledge on the academic and practical levels as one of the first attempts at empirically investigating the impact of an economic reform programme on stock market performance in an emerging economy. The research represents an applied study of a type that has not appeared elsewhere, and the framework offered may therefore not only be appropriate to Libya as a case study, but also to other countries in similar circumstances. The research provides an important introduction to this area and has attempted to explore its significance for both the economy and business. This research adds to the existing body of literature regarding development and application of a series of models of economic reform programmes, stock market performance and economic growth in a developing country. Additionally, brief recommendations are offered regarding potential useful directions for future research arising from the conclusions of this research. These develop into a strategic framework for the improvement of an economic reform programme and stock market performance

How to win the battle of ideas in corporate social responsibility: the International Pyramid Model of CSR

Abstract This paper reviews the definitions of Corporate Social Responsibility (CSR) as they have evolve over time. It traces the origins of the concept and creates a theoretical framework for international use, thus having the benefit of applicability in both developing as well as developed economies. The models of Carroll and Visser are integrated to produce The International Pyramid Model of CSR, which acknowledges the relative importance of economic, glocal, legal and ethical, and philanthropic aspects of the CSR concept. The primary innovation in the International Pyramid is the development of ‘glocal’ responsibilities, relating to the environment, socio-cultural matters, technology users, and political rights. Additionally, the International Pyramid condenses Carroll (Business Horizons 34(4):39–48, 1991) pyramid such that the separate legal and ethical responsibilities are merged into one ‘legal and ethical’ obligation. Furthermore, it offers flexibility by acknowledging that the various responsibilities it embodies can shift up or down the pyramid as priorities change, which is inevitable as businesses and economies differ cross-sectionally, and over time

Roles and Practices in Accounting: Did Fair-Value Cause the Global Financial Crisis?

This paper debates how did fair-value accounting (FVA) that were deeply affected by the global financial crisis (GFC). The GFC that started in advanced economies spreading to emerging markets and low-income countries, which has been affected in the middle of 2007 and into 2009, as have various empirical studies which have examined the role of FVA in the GFC. In this paper, using the quantitative methodology where value-relevance of fair value estimates of assets and liabilities reported under FVA provided by FAS 157, in terms of a simple theoretical and empirical analysis literature framework. This empirical study proposed that this is not a normal cyclical crisis of capitalism but a global crisis, which requires a change in the management policy to be tackled with new regulatory frameworks for financial institutions in order to stimulate economic activities. In other words, FVA may have amplified the crisis. These findings could be fruitful and helpful for outside users of accounting reports and also for regulators and legislators in their attempts to constrain the incidence of earnings accounting practises and to enhance the quality of accounting information. Future research is needed to meet up-to-date information regarding the nature of capital markets and financial institutions. This requires a new theory of economics; for instance, a change from equilibrium theory to reflexivity theory which requires a change in the underlying model of the economic activity framework and valuation challenges that arise from the use of FVA in financial reporting