Journal of Business and Management <p>The Journal of Business and Management is published by the School of Business, Faculty of Management Studies, Pokhara University, Pokhara, Nepal.</p> School of Business, Faculty of Management Studies, Pokhara University, Pokhara, Nepal en-US Journal of Business and Management 2350-8868 <p>Copyright © the School of Business. All rights reserved. No part of this volume may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by and information storage and retrieval system, without permission in writing from the publisher.</p> An Empirical Analysis of Export-Led Growth of Vietnam: Trade in Value Added (TiVA) Approach <p>This paper examines the long-run relationship between domestic value added exports and economic growth of Vietnam using ARDL bounds test of cointegration on annual data covering the period of 1995-2014.The bounds test establishes existence of both short-run and long-run relationship between exports and GDP of Vietnam and shows a substantial contribution of exports in the real GDP (0.73 percent for one percent changes in the domestic value added exports). The exports pattern of Vietnam portrays it following the footsteps of export-led growth model of Mexico, whereby it has turned itself into export production platforms for MNCs by suppressing the wages, rather than developing own indigenous industrial capacity. In such scenario, it seems challenging for Vietnam to sustain its export-led growth which it has achieved so far based on its cheap labour. With the rising living standards, ultimately the comparative advantages of cheap labour force would vanish in the future, which will cause a wave of assembly jobs to flow out of Vietnam. Moreover, two other low-cost countries in the region, Cambodia and Myanmar are likely to rise as close competitors of Vietnam in the low-cost assembly works in the near future. By that time, in case Vietnam fails to enter into higher value added activities, it will drag itself into the ‘middle income trap’. Therefore, the ‘assembly strategy’ shall be bonded with strategy to develop own indigenous industrial capacity, and national technological base. These will help Vietnam to upgrade its activities along value chains in forms of product upgrading, process upgrading, functional upgrading, and sectoral upgrading so that it can switch its role of ‘assembling agent’ to ‘indigenous producer’.</p> Nguyen Viet Khoi Shashi Kant Chaudhary Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 1 15 10.3126/jbm.v5i0.27383 The Dynamic Relationship between Tourism and Economy: Evidence from Nepal <p>The objective of this paper is to analyse the role of tourism in the Nepalese economic growth. I use a trivariate model of real Gross Domestic Product (GDP), international tourist arrivals and real effective exchange rate to investigate the long-run and short-run relationship between tourism and economic growth. The Augmented Dickey-Fuller ( ADF) test is used to determine the order of integration of the series, and I employ the Engle- Granger cointegration procedure to test for the presence of long-run relationship. By using annual macroeconomic data for Nepal for the period of 1962-2011, results reveal that there is a cointegrating relationship between tourism and economic growth.</p> Dipendra Karki Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 16 22 10.3126/jbm.v5i0.27384 Digital Financial Literacy: A Study of Households of Udaipur <p>Financial literacy has been center of discussion world over. Financial literacy can be generally defined as a person’s ability to understand, analyze, manage, and communicate personal finance matters. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances. It is the ability to make informed judgments and take effective decision regarding the use and management of money. Now the trend is change financial literacy become old wine people are moving towards digital financial literacy. The interesting side of digital financial literacy is more people are going of digital payments, the value of internet banking, debit card &amp; credit card, mobile banking are going high. Indian Government is also promoting Digital India recently they have launched many schemes like are Pradhan Mantri Jan Dhan Yojna, Jeevan Jyoti Bima Yojna, Suraksha Bima, MUDRA Bank Yojna, BHIM. The Vittiya Saksharta Abhiyan (VISAKA) also been launched by Ministry of Human Resource. The prime objective of the research is to know the digital financial literacy among the households of Udaipur city. The awareness about various digital platforms and their frequency of use is taken as digital financial literacy. The study further aims to diagnose the impact of personal characteristics on digital financial literacy. The sample of the study is taken from Udaipur city of Rajasthan state of India. A sample of 268 households was selected randomly. A well-structured questionnaire was used to survey and generate digital financial literacy data. The results of study will be a useful direction for both digital platform providers and government to promote citizen for digital transactions. The study also suggests that a wave of awareness campaign is required for bringing more people in the umbrella of digital transaction. Further, a cash transaction oriented economy like India needs to have dual edged sword, where in one hand it needs to bring more policies for lesser use of cash and on the other greater use of digital cash.</p> Hanuman Prasad Devendra Meghwal Vijay Dayama Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 23 32 10.3126/jbm.v5i0.27385 Market Structure and Performance of Commercial Banks: Empirical Evidence from Nepal <p>The study attempts to examine the relationship of market structure variable with the performance of Nepalese commercial banks over the period 2011-2015 using causal research design. The stratified sampling technique has been employed to select sample banks which include 10 commercial banks comprising 5 joint venture and 5 local private banks. A pooled OLS model is specified, and then the indicators of market structure are used as explanatory variables in the regression model. Study results have shown that market concentration has had a negative and significant impact on the performance of the Nepalese commercial banks. Where the Herfindahl-Hirschman index (HHI) is used the market shares as the main variable to measure the concentration (CONC). Empirical results revealed that lower the market concentration higher will be the performance of the bank. On the other hand, study concluded that market power has positive influence on profitability. The Data Envelopment Analysis (DEA) method was used to assess the efficiency scores. On the contrary, empirical results indicated that there is no relationship between the bank’s efficiency and performance in Nepalese commercial banks. As far as the ownership structure is concerned, study found that, ROA differences depend on bank ownership types. Study concluded that performance of the joint venture banks is better than local private banks in sample period.</p> Kripa Kunwar Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 33 41 10.3126/jbm.v5i0.27386 Stock Price Behavior of Nepalese Commercial Banks: Random Walk Hypothesis <p>Using the data set on daily stock prices during the fiscal year 2015/16 (Sept 23, 2015 through Dec 22, 2015), this paper attempts to analyze the random behavior of stock price of Nepalese Commercial Banks by using run test, serial correlation and run tests and martingale random walk hypothesis under heteroscedasticity assumption of standard error. The results conclude that the proposition of Random Walk Hypothesis (RWH) in Nepalese stock markets does not hold true. This conclusion corroborates with the conclusions of the past studies carried out in Nepalese context.</p> Nirajan Bam Rajesh Kumar Thagurathi Bipin Shrestha Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 42 52 10.3126/jbm.v5i0.27387 Socio-Cultural, Economic and Environmental Impact of Tibetan Refugee Settlement on Host Community in Pokhara <p>The study attempts to empirically investigate and assess the socio-cultural, economic and environmental impact of the refugee settlements on the local host community who are living around the Tashi Pakhiel Tibetan camp located in Hemja, Kaski district. A questionnaire survey was undertaken to collect opinion of 500 host community members on the issue. The findings reveal that there exists social harmony, mutual co-existence, and bonding between the Tibetan refugees and local residents of Hemja. The two communities involve in social exchange and participate in social events of each other. The social acceptance is revealed from the fact that the practice of intermarriages between the communities is also prevalent. The Tibetan refugee camp is found not to adversely impact the host community culture. Similarly, the refugee settlement has not brought any adverse effect on the local environment. The basic services and facilities like education and health is available on equitable basis to both the communities. Finally, the economic interaction between the communities has resulted in mutually beneficial economic condition for both in terms of increased business and employment opportunities. Moreover, the economic benefits to the host community are found to be relatively higher as compared to the benefits received by the refugees.</p> Santosh Kumar Gurung Bal Ram Bhattarai Shanti Devi Chhetri Anisha Bataju Ganga Ghale Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 53 63 10.3126/jbm.v5i0.27388 Event Study of Effect of Merger Announcement on Stock Price in Nepal <p>Events like merger and acquisition affect the value of merging firms and also generate a positive or negative wealth effect for shareholders of firms involved. The purpose of this study is to investigate whether a merger announcement has generated wealth effects for the shareholders of bidding and target firms as well as it has aimed to assess the impact on overall banking sector. Two models; mean adjusted model and market risk adjusted model has been used in the study employing the ‘event study’ methodology to examine whether there is presence of abnormal return associated with merger announcement. In this method, 50 days premerger and 30 days post merger period is assumed as estimation period and (-15 and +15) days are taken as the window period. Fifteen financial institutions which entered into merger between years 2010 to 2012 are selected as sample. The findings of this study demonstrated that surrounding the announcement of merger proposals, the premerger abnormal return of individual firms is not significant to zero i.e. return is not affected by the merger announcement. Similarly, the abnormal return of bidding and target firms is not significant which indicates there is no impact of merger announcements on shareholder wealth in Nepalese capital market. Finally, the abnormal return during the premerger and post merger period of individual firms as well as the overall banking sector shows the same result, there is no significant difference on return before and after the merger announcement.</p> Shanti Devi Chhetri Ravindra Prasad Baral Copyright (c) 2018 School of Business, Pokhara University 2018-12-31 2018-12-31 5 64 73 10.3126/jbm.v5i0.27390 Influence of Demographic Factors on Job Satisfaction of Financial Institutions Workforce of Nepal <p>This paper examines the influence of demographic factors on job satisfaction of employees of Nepalese Financial Institutions. The survey instrument was distributed to the employee of commercial banks, development banks and finance companies located at Lekhnath municipality and Pokhara Sub-metropolitan city. The sample size for this study was 150. The sample was selected using stratified sampling. This study presented communication, career development, and role of employee, working condition, recognition, and reward, immediate supervisor, and training pro-gram as factors of job satisfaction. Data were analyzed by using statistical tools like frequency, mean, and percentage. Moreover to test the hypothesis presented in this study, independent t-test, ANOVA analysis have been used. This research concluded that demographic variables (gender, job position, and age) influence the level of job satisfaction of employees of Nepalese financial institutions.</p> Indira Shrestha Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 74 79 10.3126/jbm.v5i0.27391 The Semiotics of Contemporary Visual Texts: A Study in New Rhetorical Analysis <p>This paper explores the semiotics of selected typical visual texts of our time and their implicatures. Some theoretical and conceptual tools for textual interpretation with regards to textual elements exist. However, contemporary visual texts are still prospective area of study. Considering such gap, I have chosen the visual texts that we encounter in our day to day and professional life. For delimitation purposes, only three types of visual communication events have been discussed, selected brochures of academic institutions, selected printed advertisements, and selected billboard advertisements. The analytical tools are predominantly critical discourse of the various motifs, images, structures and persuasive strategies used in the texts. The basic architecture of the discussion part is based on thick descriptions of the textual contents highlighting the semiotics of each. Findings of the study focus on semiotic implications and connotations of the key rhetorical elements. The major finding of the study is most of the visual texts principally try to glorify, glamorize and even exoticize the product or service. The conclusion derived is nothing like absolute conclusion. It is just an array of possible interpretations that pave path for a new discourse like– should we take them for granted? All in all, this is a new rhetorical analysis by outlook.</p> Bishwo Raj Parajuli Copyright (c) 2018 School of Business, Pokhara University 2018-12-01 2018-12-01 5 80 84 10.3126/jbm.v5i0.27392