Does Increasing Public Hospital Financial Autonomy Improve Performance? A Study of Indonesian Public Hospitals
- Page: 1
- Authors: Fitri HANDAYANI, Hasan BASRI, Heru FAHLEVI
- Abstract: This study aims to compare the financial and non-financial performance of Indonesian public hospitals after gaining improved autonomy in financial management (Badan Layanan umum/ BLU or Public Service Agency/ PSA). It is conducted in two public hospitals in Banda Aceh City, Indonesia. Qualitative research design and descriptive analysis were undertaken to obtain a clearer picture of the performance and to provide a comparative analysis. The financial performance analysis is measured by using trend analysis, profitability ratio, cost recovery rate, and independence level. The non-financial performance analysis is measured by using BOR (Bed Occupancy Ratio), TOI (Turn over Interval), BTO (Bed Turn Over), ALOS (Average Length of Stay), GDR (Gross Death Rate), and NDR (Net Death Rate). The results show divergent results. There is an increase in revenue and profit after gaining BLU, but profitability, cost recovery rate, and independence level have decreased. The ratios of BOR, TOI, and NDR after BLU has changed slightly. However, the BTO, ALOS, and GDR after BLU are far above the criteria/standard of hospital service performance.
- JEL Classification: H51
- Key words: Public Service Agencies, Financial Performance, Non-financial Performance
- DOI: 10.24818/mer/2019.06-01
Determination of Purchase Intensity in Online Shopping: Case on Syiah Kuala University Student
- Page: 14
- Authors: Teuku Roli Ilhamsyah PUTRA, Anzan HARIO
- Abstract: This study aims to examine the effect of mediating product risk perceptions on the relationship of shopping experience and the intensity of purchases on Syiah Kuala University students. The data were collected from 150 students using the purposive sampling technique. The results show that online shopping experience has a significant effect on purchasing intensity and product risk perception on students. Product risk perception also has a significant effect on the purchase intensity. Product risk perception is proven to partially mediate the relationship between shopping experience and the purchase intensity on Syiah Kuala University students. The result supports the theories and provides implications for both theory and practice. The limitation of this research is it uses only 3 variables and focuses in one object.
- JEL Classification: M3
- Key words: Shopping Experience, Product Risk Perception, Purchase Intensity
- DOI: 10.24818/mer/2019.06-02
Do Audit Committees Have Capacity to Monitor Management: The Case of Serbia
- Page: 23
- Authors: Savka VUČKOVIĆ-MILUTINOVIĆ
- Abstract: In this paper we examine audit committees composition and work in companies in Serbia. Audit committees are seen as integral part of the modern system of corporate governance worldwide which role is even reinforced with new EU Auditing Directive. According to the agency theory, this committee shell contribute to the prevention of management opportunistic behaviour by performing set of monitoring activities. In this study, we intend to illuminate actual capabilities of audit committees in Serbia. We perform content analysis to assess transparency of companies with regard to audit committees and formal assumptions for the design and work of audit committees. In addition, we conduct a survey of external auditors to uncover substance of the audit committee performance. Our results show that the current state of the audit committee in Serbia is not satisfactory. We find that the level of audit committee disclosure is low, formal standards for audit committee composition and responsibilities are not fully in line with EU regulation and audit committee substance is fairly missed. Management is not effectively monitored by audit committee and it still has more power than audit committee in the process of selection of the external auditor. This paper contributes to the discussion about audit committee effectiveness with focus on an emerging country where audit committee does not have long tradition. Our findings reveal that Serbian companies have to make significant improvements in order to have audit committees able to perform substantial monitoring.
- JEL Classification: M42, M48
- Key words: audit committee, corporate governance, institutional theory, Serbia
- DOI: 10.24818/mer/2019.06-03
Challenging the Status Quo: Steel Producer Case Study on the Enterprise Value for M&A
- Page: 41
- Authors: Mădălina Viorica MANU
- Abstract: The purpose of this paper is to analyze the enterprise value determinants, in order to help the interested parties make correct (investment) decisions by studying industry cases of mergers and acquisitions (M&A). In order to understand and identify value-adding opportunities for the companies, the paper investigates a divestiture within a major international steel group. The research questions refer to the understanding the relation between the enterprise value and market capitalization of the selected companies acting in the steelmaking field, including other factors such as the revenue, EBITDA, EPS or ownership structure. In order to understand how the enterprise value is determined, I have analyzed relevant theories, including Tobin’s Quotient (q) for a company/ aggregate corporations, for the study of the relation between the market value and its replacement value. If used empirically, Tobin’s q helps avoid issues of estimating shareholders’ risk-adjusted required return by the market prices. Besides using the graphical visualization of the share price, I have used the datasets available for several years on the value of several mature steel producing companies, market capitalization and other indicators. The methodology also includes Market Comparable method and own spreadsheet calculations. After analyzing the evolution of the share price for the global steelmaking leader (ArcelorMittal), between 2009 and 2018, I have not identified any growth potential; the market value of ArcelorMittal is a proxy for the market value of its assets.
- JEL Classification: L10
- Key words: enterprise value; market value; book value; EBITDA; Tobin’s q;
- DOI: 10.24818/mer/2019.06-04
Promoting Cities: Measures to Improve Urban Marketing Strategy
- Page: 57
- Authors: Ruxandra Irina POPESCU, Laura MINA-RAIU
- Abstract: This study aims to identify the perception of residents and tourists related to the current practices and the level of promotion of Bucharest, as well as to reveal ways and opportunities to improve the effectiveness of this activity. Data collection for this research is based on a survey, whose main findings reveal that Bucharest lacks an appropriate promoting strategy and a strong urban brand. Moreover, public authorities are the ones who should initiate activities for promoting the city, by developing a complex and long-term urban marketing strategy. Instead, private initiatives prove to be the most successful, thus public-private partnerships could be an effective instrument in this direction, together with the establishment of a specialised marketing department.
- JEL Classification: M37, O18
- Key words: Promotion, Urban Marketing, Strategy
- DOI: 10.24818/mer/2019.06-05
Improving the Management Process through IT&C for Increasing the Customer Satisfaction Level in Health Care Sector
- Page: 69
- Authors: Darko SHULESKI, Monica Adriana PANAIT, Cătalin Liviu PRICOP, Elena TALEVSKA
- Abstract: In order to become Client-oriented, an organization needs to improve each service and to align the business processes with its customer satisfaction strategy. Customer oriented means to place the client satisfaction at the core of the business decisions. To be customer-oriented means that you need to focus on customers’ needs and align them with the company strategy and objectives in order to satisfy clients. According to (Anderson et al., 1997) Customer satisfaction has been one of the top tools for a successful business. Customer satisfaction is defined as an overall evaluation based on the total purchase and consumption experience with the good or service over time. The evolution of Information Technology is accelerating at a very fast pace, organizations need to adopt new methods and already existent information technologies to improve their services, and become a customer oriented company. Business transformation management is a change management strategy, that align the employees, business processes and Information technology with vision and business strategy. Business transformation is the process or results of changing from one state or condition to another. It can be caused by internal or external factors, but the result is a shift in how the organization relates to its wider economic environment. In this article we will try to improve the customer satisfaction level by improving business decision making processes using the mathematical algorithms supported by information and communications technology. In our research we will use the quantitative and qualitative methods and will be applying fuzzy assets in healthcare business services, also using a case study for the Bucharest public health system.
- JEL Classification: I11, M15, O33
- Key words: Transformation Management, Client oriented, Decision making, IT&C, BI,
- DOI: 10.24818/mer/2019.06-06