The Business Review

Chief Advisor Advisor DrM. Azirar Rahman Eaysmin Ara Lekha Vice Chancellor Dgan, School of Education and UniversitY Physical Education Uttara UniversitY Editorial Board: Editor Executive Editor Dr Arifur Rahman A. A. M. Nurunnabi MPhil Professor of Economics & Business Assistant Professor, School of Dean, School of Business Business, Uttara UniversitY Uttara UniversitY Dr Mohammed Nasser Dr Salahuddin Ahmad Professor of Statistics Professor of Economics Rajshahi UniversitY Dr Monzurul Hoque Dr Anwar Hossain Professor of Finance USA Pro-Vice Chancellor Saint Xavier University' Chicago, American International University- Dr Nazrul Islarn (AruB) Professor of Management East-West UniversitY

Editorial Assistant Kazi Tareq Ullah Senior Lecturer, School of Business Uttara University

@ Copyright: acad.emic and' research i The joumal or any part thereof may be reproduced for the publication purposes with an ippropriate-acknowled.gernent and a c?py of when the sent to the editor:'Witnen permission-of the editor is required purposes. All information' intended reproduction is for'commercial .opi.nions, to the author(s)' otd data published. in the articles are oierall responsibility the views expressed The editorial board d.oes not accept any responsibility for in the papers. of hHisher: 'The Business Review' is a biannual journal, published by School Bangladesh' Business, Uttara University, -1230, - Ptore: 88-02-89323 25 , 88-02'8932541, Fax: 88-02-891 8047' E mnik [email protected]

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.TheBusinessReview'isaresearchjournalinthefieldsofbusinessand firr, issue of the lournal is a presentation of wide research ";;;;"..-in.selection of research articles. The objective of it is to encourage The journal io uring a deep understanding of dynamics in these areas. globalization providJs analyses o, business management' Ira irpfi"utions of technological".onofrics, advancement, and presents the research ii"did, carried out by e-conomists, financial analysts, academics, scholars and sPecialists' people iii, Illainrv aimed to persuade academics, young researchers,.and do research *f,o t profession'al interests, and studenti intend to research around""" the world. it ir .;ou*ul is for the dissemination of policy unury'"' and choices that also includes theoretical ".pt,u'i,i,eand methodological issues. The joumal ii an utt".pt to be involved with global readership, economists, financial analysts, scientists, especially among-of academics, *d business, governments, international agencies and institutions."*.irtives Articles are inieided to be accessible to non-specialist mathematical, readers as well but not necessarily proficient in advanced financial or econometric techniques. to the The contributors can send articles any time period addressed peer editor. Before being accepted for publication, all articles are would not be reviewed. Inconsiste"ncy wiih the policies of the Review gfounJio, rejection ofan article. bpinions expressed in the Review are fiose of *re authors and do not n-ecessarily represent the.views and p.fi"i", of the journal, Comments or briei notes responding to the to the ileview are highly *4.or" and will be accepted for publications to extent that space permits. Please address all editorial correspondences the Editor. Thematerialsinthejoumalarecopyrighted.Italway-ssupportsthe may be dissemination of alt ieJearch works. Ait materiats in the Review quot"a with an appropriate acknowledgement and a copy of the f*"it 'BOitor. publicaiion sent to ttre Permission is not required to make photocopies for classroom and similar use'

O*24srAl Professor Arifur Rahman PhD Editor The Business Review Vol. 01, No. 01 January 2009 Contents

Abdul H. Chowdhury Mohammad H. Rahman Adaptive Respo.nse Rate Exponential Smoothing Forecast 1 in Analyzing IBM's Revenue

A. A. M. Nurunnabi A. H. M. Rahmatullnh Imon Applications of Regression Diagnostics 13 in Business, Economics and Social Sciences

Abdullah M Noman Tamanna Z Khan Ishtiaque Arif Real Exchange Rates and Purchasing Power Paity in South Asia 31

Arifur Rahman Exchange Rates with an Application to Developing Economy 39

M. A. Yushuf Sharker M. Nasser Bootstrapping Covariate Augmented Dickey-FullerTest 49 for Small Sample: An Application in Modeling GDP and Carbon Dioxide Emission in Bangladesh

Kazi Tareq Ullah Mamun Abdul Kayeum Hunan Resource Accounting: 61 A Pathfinder in Internal-Extemal Decision Making

Md. Asif Kamal Envirorvnental Friendly Cultivation Method 77 and Profitable Agricultural Marketing -How Far bcing Implementing In Bangladesh

Md. Zahangir AIam Md. Mahmudul Huq Md. Badru z;zaman Bhuiyan Cash Flow Reponing Practices in Bangladesh: E9 A Sndy onTextile and Clothing Companies

Mahamudul Hasan Benazir Ahmed Siddiqui Saiful Kibria Chowdhury Highcr Education Marketing: 8S Marketi{g Mix 101 fur Private Universities irt Bangladesh

The Business Review QBR) Author's Guideline 115 The Business Review 2009, Vol. I, No. l, 1-ll, ISSN 1996-3637

Adaptive Response Rate Exponential Smoothing Forecast in Analyzing IBM's Revenue

s c hoo r fl$ll,T; ,$}nT$lJ,flrn i vers ity "rDhaka-l 21 3, Bangladesh E-mail : hannan @ northsouth.edu

Mohammad H. Rahman University of Windsor, Ontario, Canada

Abstract of appropriate forecasting method for time -ldentification series data is a dfficult job for most trnuwgers as forecasts are ofien inaccurate and uncertain.This paper explores several forecasting techniques in analyzing IBM's quarterly sales data for finding an appropriate method. Analysis of forecasts error has been performedfor best method identification. Comparisons have been made on the basis of forecast accuracy measures and tracking signal test. It was found thnt adaptive response rate exponential smoothing !#.RRES) technique is the optimal and best.predictive technique.

Keywords and Phrases: ARRES, forecasting, management decision, time series.

JEL Classification: C22; C32; C53. The Business Review 2009, Vol. l. No. L l3 -29. ISSN 1996-3637

Applications of Regression Diagnostics in Business, Economics and Social Sciences

,"n", * f;,Y; Slx*lth1u"^ ity Dhaka- 1230, Bangladesh E-mail: py all41 I @ yahoo.com

A. H. M. Rahmatullah Imon Department of Mathematical Sciences, Ball State University Muncie IN 47306, U.S.A. E-mail: [email protected]

Abstract- It is well recognized that even a high quality data set tends to contain a remarkable percent of unusual observations. Till to date most of applied researchers use ordinary least squares (lS) method in regression because of its computational simplicity. Nowadays it is evident that a single aberrant obserttation may totally disastrous to the LS analysis. Regression diagnostics is a remedy to coop up this situation. This paper expresses the necessity and views of regression diagnostics as well as shows its use in linear regression through tvvo numerical examples extracted from the fields of business, economics and social sciences.

Keywords and Phrases: High leverage point, influential observation, least squares method, outlier, robust regression.

JEL Classification: COl; C5l :C52;M21. The Business Review 2009,Vo\. l, No. 1, 31-37, ISSN 1996-3637

Reat Exchange Rates and Purchasing Power Parity in South Asia

Abdullah M Noman American International University Bangladesh Dhaka-1213, Bangladesh E-mail: amnoman@ aiub.edu

Tamanna Z Khan Ishtiaque Arif Southeast University Southeast University Dhaka- 12 I 3, Bangladesh Dhaka- 1 2 I 3, Bangladesh Email: z_tamanna @hotmail.com E-mail: ishtiaquearif @ yahoo.com

Abstract-The paper investigates time series properties of real achange rates of seven south Asian currencies. It employs two dtemative u.nit root tests, namely, the Augmented Dickey-Fuller {ADF) and the Phillips-Perron (PP) tests, to check whether these real aclwtge rates follow unit root process using 35 years of annual data ruqing from 1972 to 2006. The ADF test statistic rejects the unit root nll in 2 out of 21 cases only, while the PP test statistic rejects only 2 aoscs too. The overall results count against the stationarity ofthe South Asfum currencies. The findings suggest that the Purchasing Power Podty (PPP) does not hold in South Asia vis-d-vis USA, the major tding partner of South Asian countries.

Kcywords and Phrases: Purchasing power parity, real exchange r&, South Asia, unit root tests.

JEL Classification: F3 1. The Business Review 2009, Vol. l, No. 1, 39 - 47, ISSN 1996-3637

Exchange Rates with an Application to Developing Economy

Arifur Rahman School of Business, Uttara University Dhaka- I 230, B angl adesh E-mail: [email protected]

Abstract- This article reviews the literatures on exchange rates, remittances, balance of payment (BOP) and monetary theories. It is to emmine the impacts of certain policies on some macro-economic vaiiables in the developing economy, especially in the context of a nerging developing economy of Banglndesh by exercising econometric and theoretical models. h has focused on mocro- djustments of lump sum tax and govemment expenditure. It attempts to provide an understanding of direction of the impacts of policy changes to the policy makers.

Keywords and Phrases: Empirical simulation, endogenous variable, exogenous variable, general equilibrium, static macro- economic model.

JEL Classification: E52; F3t. The Business Review 2009, Vol. l, No. l, 49 -60, ISSN 1996-3637

BootStrapping Unit Root Test for Small Sample: Application on Gross Domestic Product and Carbon Dioxide Emission in Bangladesh

M. A. Yushuf Sharker PIDVS, HSID, ICDDR,B Dhaka- 1212, B angladesh E-mail : mayushuf @ gmail.com

M. Nasser Department of Statistics, Raj shahi University Rajshahi-6205, Bangladesh E-mail: [email protected]

Abstract power of conventional unit root tests Low -The is very and sSers a severe size distortion problem in small sample time series. A sitrudation-based study is done to extract the performance of bootstrap on Augmented Dickey-Fuller (ADF) and Covariance Augmented Diekey-Fuller (CADF) tests. It is found that for small sample.(n = 30) futstrapped CADF test performs relatively better than all other tests. Ve perform these test on GDP per capita and Carbon Dioxide (CO2) anission per capita of Bangladesh where data are available from l9n-2000 i.e. the data size is only 29. The test result shows that CO2 anission per capita and GDP per capita in Bangladesh are unit root pn cess. GDP per capita performs better as a covarinte for applying dDF test on CO2 emission in Bangladesh. ::r t:yrvords and Phrases: Bootstrap, small sample, time series, unit Et1ss1.

IE Classification: COI; Ct5 827. The Business Review 2009,Vot. 1, No. 1, 61 -75, ISSN 1996-3637

Human Resource Accounting: A Pathfinder in Internal-External Decision Making

Kazi Tareq Llllah School of Business, Uttara University Dhaka- 1230, Bangladesh E-mail: kazitareq@ gmail.com

Mamun Abdul KaYeum School of Business, Uttara University Dhaka- 1230, Bangladesh E-mail: makbangla @Yahoo.com

Abstract-The shift to a knowledge-based economy has created increased attention on entirely dffirent cateSories of asset known as human. Human counted as a part of intellectual capital is playing an increasingly important role in the wealth creating dynamic of the knowledge economy. However, this asset is less reJlective in traditional accounting system which is the principal supplier of such information, its gathering and presenting. It allows timely and informed decision making by management and stakeholders. This paper investigate the possible inclusion of human asset into the accounting system known as human resource accounting and analyze development of modern accounting approach which can contribute to the new age of Human Resource Management practices and the decision making of stakeholders.

Keywords and Phrases: Human resource accounting, intellectual capital management, valuating human resource.

JEL Classification: M4l; o15. The Business Review 2009,Vo|. l, No. 1, 77 -87, ISSN 1996-3637

Environmental Friendly Cultivation Method Far and Profitable Agricultural Marketing 'How being ImPtementing in Bangladesh

Md. Asif Kamal Faculty of Business, IBAIS University Dhaka-1209, Bangladesh E-mail: masifuk@ gmail'com

not This study investigates why farmels of Bangladesh-are '*g";Abstract- how are io d.wt envirini"ntaiftriendly-way of cultivation and ";;;;"w;ia a"ti,ii are using tands for 7ro* i'on*,'uosifir*ers in cuiivation iiii Wi'ia seedi and chemicat fertilizer ;ss;";;;; might c'ause yield surplus and iealthv profit margin that ;?';L; ; networks of unrepairable io'*L"i' in" axi'tuution 'iiiiiit "nuiron^"l,iiit bt intg.n.nedlary products are strongly-controlled. ^Sroups tini'iiiip"rot tn" tron teavins 't"i"nefit leaving "with I:::t:^!::-*:::: naturat twzards frraiTiikty farmers in't*i Bangladesh have droignietu and like crisis of it*" irii, ii;ine, .unrwtural-hazards this prod.uction inputs ";;;seeds,' 'i^"' iertilizers' insecticide etc' Reasonably' and consequences of not being i,rdt"';;td;;r;; returns' Zn iro"i"ir"l ftiendly by the framers and low financial

Kevwords and Phrases: Environmental friendly, intermediaries' nyu?ia, high yield varietY.

JEL Classification: Q13; Q18' The Business Review 1996-3637 2009,VoI. 1, No' t, 89 -100' $SN

i" Bangladesh: Cash Flow Reporting PP:!iI:: ;"Sdy on t'extile"and Clothing Companies

Md. Zahangir Alam School of Businets' IJffara University Dhaka-1230, Bangladesh zahangit @ Yahoo'com E-mail : -419

Mahmudur **:*#,f,?rffil*1,1"1,i1"" Md. Huq - Faculty of Business ""t;;;;th University ASA univlrsity Bansladesn ,#i;:iidd,;uneiuai't' 1207, Bangladesh Dhaka- E-mail: kanchan-accju@yahoo'com E-mail: mahmudulhuqai%"yu^t'oo'"orn

the-fn1ncial starcmen.t k an integral po't Abstract- Cash flow .o{ not of frow statemefi is statements. euno"u[n preparation t'ct iggt'^cash piati' liniited companies mandatory o, ii"'coinitri" per other are tu prepare-this statement as enristed with stock exchange with cash statutory laws and' regulations' Since flot :'"t:::::.,endows a operating'.investing information on ,i" cZsh flows ft9m 'oipo'y't to *'iui'i"' io enable users of its financial statements and financing cash and to predict ability of the company to gln"ite appraise the this starcme"' cash flows, are- now. yreyarins :1'':: "*poni"'oi-in"* This paper examtnes fundamental poi financii 1tarcment companies in o'a''ti'"' followed by'concludes sample empirically ''ii'"n-i and thnt sample preparation'o" of c:ash 1io* 'tot"*efi with the requirements of are in nne (with a few exceptions) companies (iAS-7) and Bangtadesh Internationat ;;;;;;;;;s itan4qrd-7 and suggests to overcome these Accounting s*t'i-".i" @es-o) excePtioni bY following 8A5-6' IAS' listed company' Keywords and Phrases: Cash flow statements'

JEL Classification: M41' The Business Review 1996-3637 2009,Vo|. 1,No. 1, 101 'tt3' ISSN Mix Iligher Education Marketing: 8S Marketing for Private Universities in Bangladesh

Mahamudul Hasan School of Business, Uttara University Dhaka- 1 230, Bangladesh E-mail : mahamudmkt @ Yahoo'com

Kibria ChowdhurY Benazir Ahmed Siddiqui Saiful Department of Business Administration School of Business, Uttara University Stamford UniversitY, B angladesh Dhaka- 1 230, Bangladesh E-mail : saifu lmkt @hotmail'com E-mail: benazir. ahmed @ gmail'com

private universitie.s Abstract-In higher educational landscape, many s.tudents; since quality in are competition for i*ing talentid facing with pedagogical activities' higher education X widity' Along "*pl't"a where it is executed and tnw higher education i;;;;8 aevitopea' |rom siudentt performing at the.ir ';rrf";,;;r;rh"tb what extent our Sraaitins -are ou ol"o-ti's;if i"t xsyes' Il this context' universities as mnemonic 85' It is can emphasir" on ,,'Jg'i'"i marketing .mixwho help n re1ai1 tle enormously needed' ii ott'o'ting oi"'t who have a stake in the institution with fund ["n"iotion ind others provides opportunities to outcomes of private universities' 8S education the overall communicate quality ti:'iir;"i i' higher for depicts the piority of dffirent success of university uiiu"'' This stuiy among dffirent groups. elements of 8S and finds correlation .of l"*i*i n, ,ona,itin'i marketing activities of private universities in Bangladesh. mix' 8S' higher Keywords and Phrases: Integrated marketing edrication marketing, private university'

JEL Classification: M31; M37' The Business Review 2009,Vo\. l,No. l, 115 -l18,ISSN 1996-3637

The Business Review (TBR) Author's Guideline (rssN 1996-3637) Enter Title Here (l4-Point Type Size, Upper and Lower Case, Bold Centered in A Single Column, Short Length) Author(s) Name (1 1-point type size, upper and lower case, bold, centered) Affiliation E-mail address ( 1 1 -point type size, upper and lower case, centered)

Abstract- Every submission should begin with an abstract of a maximum of I 50 words in ltalics with six-space indention from the both sides, followed by a set of keywords. Your paper should be in the same format as this file. The abstract should be a concise, accurate presentation of the contents of the paper. It should be self-contained and understandable by the general reader and it should bb free from specialized jargon and acronyms. The abstract should state the problem and indicate the purpose of the paper, the approach taken, and also the nature of results or conclusions that were reached outlining the contribution of y.our paper. Do not cite references in the abstract. This part is limited to one paragraph. Keywords and Phrases: Provide three to five keywords and/or phrases that clearly describe the subject matter of the paper.