Volume 3 Number 2	August 2004
		Special Article
		Article 1
		Article 2
		Article 3
		Article 4
		Article 5
		Article 6
		Article 7
		Article 8

Meeting the Challenges of the Knowledge Society

H.E. Fidel Valdez Ramos
Former President of the Republic of Philippines
Chairman of the Ramos Peace and Development Foundation [RPDEV]
Chairman of the Boao Forum for Asia [BFA]

Editor’s Note
The AIUB Journal of Business and Economics [AJBE] is going to start the second volume with the current issue – the sixth consecutive issue in the history of AIUB since January 2002. In celebration of this grand occasion, the editorial board of AJBE has decided to publish the Address of H.E. Mr. Fidel Valdez Ramos, Former President of the Republic of Philippines; and Chairman of the Ramos Peace and development Foundation [RPDEV] and the Boao Forum for Asia [BFA], at the 4th Convocation ceremony of the American International University – Bangladesh [AIUB] held at the Bangladesh-China Friendship Convention Center, Dhaka, on 10 January 2004. H.E. Mr. F. V. Ramos delivered the speech with a theme of “knowledge economy” as the Convocation Speaker in the ceremony. As the Vice-Chancellor of AIUB, I thank him for delivering a wonderful address to the graduating students in presence of their guardians, dignitaries representing various government and non-government bodies and from foreign diplomatic missions as well as, most importantly, the kind presence of the President of the People’s Republic of Bangladesh, Dr. Iazuddin Ahmed, as the Chancellor of AIUB.

… Dr. Carmen Z Lamagna
Vice Chancellor of AIUB
Editor of AJBE

Modeling and Simulations of Pedagogical Framework Documentation:
An Empirical Study for Prototyping in a Rapid Application Development Environment

Ho Sin Ban
Faculty of IT
Multimedia University, Cyberjaya, Malaysia
Ian Chai
Faculty of Engineering
Multimedia University, Cyberjaya, Malaysia
Tan Chuie Hong
Faculty of IT
Multimedia University, Cyberjaya, Malaysia

Abstract
Frameworks are a useful way to enable object-oriented reuse, but their size and complexity makes understanding how to use them difficult. Different people have proposed different ways to document frameworks, but it was unclear which ones actually were better. This study empirically investigated three documentation philosophies for new framework users, and discovered some guidelines for effective framework documentation, particularly in a Rapid Application Development environment. It is also found that different documentation styles are better for different goals.

Market Orientation’s Contribution on Economic and
Non-economic Performance of Business: Bangladesh Context

Dr. Mostaque Ahmed Zebal
Associate Professor of Marketing
School of Business
American International University - Bangladesh [AIUB]

Abstract
The article examined whether market orientation contributes both to the economic and non-economic business performance. For this purpose, a major survey of 120 consumer goods manufacturing companies in Bangladesh was undertaken. Two respondents, one from marketing and one from a non-marketing department, were interviewed from each company and a total number of 216 usable questionnaires were received. In order to seek answer to the research question, MANOVA was used to analyse the data. The findings showed that market orientation has a significant effect on both economic and non-economic business performance.

ICT in the Banking Sector in Bangladesh:
A Case Study on Extension & Further Development of Present Situation

Syeda Nuzhat Zaman
Assistant Professor of Economics
School of Business
American International University – Bangladesh [AIUB]
M Enamul Haque
Business Consultant
Braitrim Plastiform (BD) Ltd.
Bangladesh

Abstract
ICT transformed the financial sector in developed world and helped reducing costs while increasing efficiency simultaneously. In Bangladesh, recent offers, e.g., ATM, debit card, telephone banking, internet banking etc. have tremendously increased customer satisfaction. In today’s highly competitive environment, banking sector in developing world must embrace the fast pace ICT, even in order to be sustainable. Based on this concept, this study has focused on the extension and further possible developments of the ICT oriented new systems to provide high stability as well as high security levels in both local and multinational banking systems in Bangladesh. The study took the initiative to explore the present situation of ICT in banking sector and to determine the gaps between these electronic / digital services given by the local and the multinationals in Bangladesh with an eye to generate alternate strategies for the locals to compete with the giants to retain and increase their customers. The study investigated that most of the new generation banks are almost ready to embrace the latest technology and there is a very wide opportunities for the local vendors. The study suggests that the modest growth in our banking sector can be achieved to a great extent by implementing ICT, not for maintaining latest trend or fashion; but for creating competitive edges of the era.

The Effect of Dual Listing Announcement on Shareholders’ Value:
Evidence from Dhaka Stock Exchange

Dr. Md. Hamid Uddin
Assistant Professor
Institute of Business Administration
University of Dhaka, Bangladesh
Md. Mohiuddin
Lecturer of Accounting
School of Business
American International University-Bangladesh [AIUB]

Abstract
Academic literature suggests that the dual listing announcements should have significant positive impact on the shareholders’ value, as trading of stocks at more that one location would reduce the liquidity risk with increases of stock trading volume. This study has been conducted to find out the effect of dual listing announcement on the share holders’ value based 156 companies that were listed with the Dhaka Stock Exchange and subsequently listed on the Chittagong Stock Exchange. Using the market adjusted abnormal return, cumulative abnormal return and trade volume changes before and after the dual listing announcement, we have tried to find out the effect of dual listings. Empirical results however do not support the conjecture that dual listing has any positive effect on the shareholders value in Bangladeshi capital market. 

Water Quality Characterization and Management of the
Bhairab-Rupsha River System of Khulna City

Nando Dulal Das
Lecturer of Biotechnology Discipline
Khulna University, Bangladesh
Md. Abduz Zaher
Lecturer of Biotechnology Discipline
Khulna University, Bangladesh
Md. Anowar Hossain
Lecturer
Stamford University Bangladesh

Abstract
Industrial waste including municipal solid waste and human waste are the major sources of water pollution, among which industrial waste is the mostly noteworthy. Khulna city, which is one of the most important industrialized cities in Bangladesh for geographical location, is situated in the bank of the Bhairob-Rupsha River system. The major industries of the city are on the bank of the Bhairob-Rupsha River system and the effluents of these industries are discharged into the Bhairob-Rupsha River. The present research work is done for water quality characterization for this River system in order to investigate surface water quality for drinking purpose as well as for different industrial uses. For these purposes six sampling areas on the Bhairob-Rupsha River around some large industrial discharge points were selected. For water quality characterization, significant chemical parameters e.g., pH, Total Dissolve Solids (TDS), Electrical Conductivity (EC), Total Alkalinity, Dissolved Oxygen (DO), Biochemical Oxygen Demand (BOD) and Chemical Oxygen Demand (COD) were measured with seasonal variation. For example, the COD of river water 260-mg/L and BOD 156 mg/L are higher than the industrial standards for COD (200mg/l) & BOD (50mg/L) respectively. Findings of the study implied that some of the pollution parameters have crossed the acceptable standards. This research work, also, suggests some remedial measures through Environmental Biotechnology. 

Deceptive Advertising: A Case Study of Advertising
Claims in Bangladeshi Commercials

Dr. A. Salman Al-Azami
Post-doctoral Research Associate
International Centre for Development & Environmental Studies [ICDES]
Edge Hill University College
Lancaster University. UK

Abstract
The present paper looks at the claims in Bangladeshi advertising to find the elements of vagueness they possess. The paper builds upon the essay of Jeffrey Schrank (1949 – 1994) entitled “The Language of Advertising Claims” and analyzes some advertisements in Bangladesh where similar claims are made. The paper observes that the advertising copywriters in Bangladesh come up with some claims that very subtly fall between truth and falsehood. As there is no regulation in Bangladesh to monitor these claims, it is difficult to find a clear distinction between deceptive advertisements and ethically acceptable advertisements. 

Aggregate Consumption Tilting Behavior in Small Open Economies

Sheikh Tareq Selim
Economics Division,
School of Social Sciences,
University of Southampton
Sharke Chaman Khan
Ministry of Information
Government of Bangladesh

Abstract
This paper presents an empirical investigation of aggregate consumption tilting behavior in small open economies. In a standard infinite-horizon model of international borrowing and lending, we assume that agents smooth consumption over time through trade of foreign assets. This modeling approach allows us to show that the current account balance of the economy is a predictor of future changes in national cash flow. Economic agents, therefore, consume either more or less than current permanent cash flow depending on the observed current account balance. This can be referred to as agents’ aggregate consumption tilting behavior. We propose a simple econometric method of computing an un-weighted average measure of this consumption tilting behavior, and investigate this method for a class of small open economies. 

Assessment of Private Universities in Bangladesh:
A Quality Fuction Deployment Approach

Carmen Z Lamagna
Vice Chancellor
American International University – Bangladesh [AIUB]
Taimur Reza Sharif
Associate Professor, School of Business, and
Coordinator of Research & Publications
American International University – Bangladesh [AIUB]
Md. Shofiqul Islam
Assistant Professor of Accounting and Finance
School of Business
American International University – Bangladesh [AIUB]

Abstract
In light of the practical constraints associated with public tertiary educational activities in Bangladesh, a number of private universities have entered the new industry of private higher education of the country. The number of these private universities has been growing at a remarkable rate over the years creating a wider scope for the customers to choose among many options in consideration of quality. Keeping this observation in mind, this study adopts ‘external [peer group] evaluation procedure’ as a continuation of the previous study based on the ‘internal review procedure [ie, self-assessment] where American International University – Bangladesh was chosen as a case to study for logical reasons. This study conducts an empirical observation on the quality deployment state of private universities of Bangladesh. The research starts with identification of ‘quality function deployment [QFD]’ factors followed by an empirical assessment of the private universities through customer survey. The study ends with a suggestive discussion on the deployment strategy of the private universities. In this process, the study finally suggests for deployment of resources in certain areas such as establishment of permanent campus, credit transfer facilities, financial assistances to students, consulting hours for students, co-curricular activities, placement assistance and career development alumni, etc. Following a deductive approach, the findings of this study may be generally applied to university-specific cases – the universities which would require deployment of resources to overcome the above-said quality attributes. For greater empirical accuracy, the findings in this study, in many cases, are compared with those in Mamun and Jesmin [1999] which is believed to be a pioneering work in the context of Bangladesh.