Abstract: Over the years, the public spending, along with the GDP has been rising in Bhutan. For instance, the public expenditure in Bhutan rose to Nu. 56331.357 million in the Fiscal Year 2018/19 from Nu. 49,966.611 million in the previous year (AFS 2017-18). This paper attempts to validate Wagner’s law against the Keynesian hypothesis in the context of the Bhutanese economy from 1991 to 2019. Wagner’s law of government expenditure and real income is opposite to the Keynesian hypothesis. In Wagner’s postulation, the causal relationship runs from real income to real government expenditure and it is reversed in the case of the Keynesian hypothesis. The two-way granger causality test result indicated that Wagner’s law does not hold and the evidence supports the Keynesian proposition. This is because Bhutan is more of a public-led welfare state and with its sluggish private sector growth, the economy requires the substantial support of the government. To assess the association of government expenditure with other macroeconomic variables such as inflation and unemployment, correlation and regression tests was conducted. The result showed that both consumption and capital expenditure positively influence inflation. The rising consumption expenditure has a positive relationship with unemployment; however, the capital expenditure can reduce unemployment.

Keywords:expenditure, Wagner’s law, unemployment, inflation

Abstract: The stock exchange of Bhutan is considered one of the smallest stock markets in the world with market capitalization of BTN 49 billion . Since the inception of the stock exchange in 1993 to facilitate trading of both equity and debt securities, the performance of stock market with respect to the macroeconomic variables have not been studied by academicians and researchers in Bhutan. Similar to the asset-inflation relationship studies conducted in different countries, the objective of this research is in providing insights on the hedging features of the common stock returns against inflation as per the classical Fisher hypothesis postulated by Irving Fisher in 1930s. For this study, we selected nine different companies listed on the stock exchange and grouped them into banks, insurance and industry sectors. The data on the monthly consumer price index inflation rates is retrieved from the website of the National Statistics Bureau of Bhutan, and daily market closing price from website of the Royal Securities Exchange of Bhutan. To test the hypothesis, we used bivariate regression analysis for different groups of sectors. Other relevant information on the descriptive statistics of the nominal common stock returns and its variability with respect to the inflation is also discussed. Our result shows that the nominal common stock return does not act as a hedge against inflation. In addition, our study indicates a weak inverse relationship between the nominal common stock return and inflation, though the result is not statistically significant to support the negative relationship between the two.

Keywords:common stock return, inflation, Fisher hypothesis, bivariate regression

Abstract: This paper explores managing financial products and services by Bhutanese in some of the identified blocks (Gewogs) in Bhutan. It investigates various skills of managing financial products and services primarily on four financial management dimensions namely, Perception of General Financial Knowledge (PGFK), Perception of Savings and Borrowings (PSB), Perception of Insurance Planning (PIP) and Perception of Making Investment (PMI). The research is based on the baseline data collected from the respondents. Data were collected with the help of structured schedule. A total of 537 respondents were included from two blocks of Chukha district (rural) Thimphu, the capital city of Bhutan (urban). The data were analysed and interpreted based on qualifications of the respondents. Mean and standard deviation were used to describe the characteristics of the data. In addition, ANOVA was used to test the research hypotheses. The inferences of the study reveal current scenario of managing financial products and services among the Bhutanese. It portrays cases that people with higher education level obtained higher financial skills in almost all the dimensions (except that of PMI). The post-hoc tests, however, do not support research hypotheses in the study. The study is purely based on primary data and is expected to have some positive bearing on the key stakeholders of the country including that of policy framing agencies. Besides, the study may be taken as a case teaching material and may act as significant supplementary reference in the classroom teaching.

Keywords:perception, financial skills, financial products and services, qualification, Bhutan

Abstract: Microfinance Institutions (MFIs) provide financial services to those who have no access to finance and are hence considered a tool for poverty alleviation. However, the clear relationship between the depth of the MFIs and their sustainability is still lacking as there is an ongoing debate on whether the two components complement each other or whether there exists a tradeoff. This study applied the panel regression analysis to the data from 44 MFIs of Nepal from 1999 to 2019 and explored the inter-relationship between depth and sustainability of MFI in the Nepalese context. In addition to the two variables of interest, this study further analyses the interaction effect of operational efficiency. The findings show a significant tradeoff relationship between outreach and sustainability at a 99% confidence interval, further moderated by operational efficiency. As a result of increased operational efficiency, MFIs can have better outreach and sustainability. These findings can thus provide a better policy prescription that promotes operational efficiency and ultimately improve both the outreach and sustainability of MFIs.

Keywords:microfinance institutions, depth of outreach, financial sustainability, operational efficiency, Nepal

Abstract: The objective of the study is to bring out the linkages between HRM practices and organizational performance that continue to enthuse the researchers and practitioners as there are mediating and interacting variables in this relationship of distal nature. The black-box model approach was adopted to keep the options open for the researchers to unpack the box with intervening variables. In evaluating the extant literature, the methodology of the study, and intervening variables that link the relationship are derived from the organizational behavioural processes of individual, group, managerial and organizational structures and functions. The structural and functional integration suggested bridging the gap between HRM practices and performance.

Keywords:HRM-performance, HRM practices, OB processes, Strategic HRM, Black-Box Model.

Abstract: Over the years, the public spending, along with the GDP has been rising in Bhutan. For instance, the public expenditure in Bhutan rose to Nu. 56331.357 million in the Fiscal Year 2018/19 from Nu. 49,966.611 million in the previous year (AFS 2017-18). This paper attempts to validate Wagner’s law against the Keynesian hypothesis in the context of the Bhutanese economy from 1991 to 2019. Wagner’s law of government expenditure and real income is opposite to the Keynesian hypothesis. In Wagner’s postulation, the causal relationship runs from real income to real government expenditure and it is reversed in the case of the Keynesian hypothesis. The two-way granger causality test result indicated that Wagner’s law does not hold and the evidence supports the Keynesian proposition. This is because Bhutan is more of a public-led welfare state and with its sluggish private sector growth, the economy requires the substantial support of the government. To assess the association of government expenditure with other macroeconomic variables such as inflation and unemployment, correlation and regression tests was conducted. The result showed that both consumption and capital expenditure positively influence inflation. The rising consumption expenditure has a positive relationship with unemployment; however, the capital expenditure can reduce unemployment.

Keywords:expenditure, Wagner’s law, unemployment, inflation

Abstract: The stock exchange of Bhutan is considered one of the smallest stock markets in the world with market capitalization of BTN 49 billion . Since the inception of the stock exchange in 1993 to facilitate trading of both equity and debt securities, the performance of stock market with respect to the macroeconomic variables have not been studied by academicians and researchers in Bhutan. Similar to the asset-inflation relationship studies conducted in different countries, the objective of this research is in providing insights on the hedging features of the common stock returns against inflation as per the classical Fisher hypothesis postulated by Irving Fisher in 1930s. For this study, we selected nine different companies listed on the stock exchange and grouped them into banks, insurance and industry sectors. The data on the monthly consumer price index inflation rates is retrieved from the website of the National Statistics Bureau of Bhutan, and daily market closing price from website of the Royal Securities Exchange of Bhutan. To test the hypothesis, we used bivariate regression analysis for different groups of sectors. Other relevant information on the descriptive statistics of the nominal common stock returns and its variability with respect to the inflation is also discussed. Our result shows that the nominal common stock return does not act as a hedge against inflation. In addition, our study indicates a weak inverse relationship between the nominal common stock return and inflation, though the result is not statistically significant to support the negative relationship between the two.

Keywords:common stock return, inflation, Fisher hypothesis, bivariate regression

Abstract: This paper explores managing financial products and services by Bhutanese in some of the identified blocks (Gewogs) in Bhutan. It investigates various skills of managing financial products and services primarily on four financial management dimensions namely, Perception of General Financial Knowledge (PGFK), Perception of Savings and Borrowings (PSB), Perception of Insurance Planning (PIP) and Perception of Making Investment (PMI). The research is based on the baseline data collected from the respondents. Data were collected with the help of structured schedule. A total of 537 respondents were included from two blocks of Chukha district (rural) Thimphu, the capital city of Bhutan (urban). The data were analysed and interpreted based on qualifications of the respondents. Mean and standard deviation were used to describe the characteristics of the data. In addition, ANOVA was used to test the research hypotheses. The inferences of the study reveal current scenario of managing financial products and services among the Bhutanese. It portrays cases that people with higher education level obtained higher financial skills in almost all the dimensions (except that of PMI). The post-hoc tests, however, do not support research hypotheses in the study. The study is purely based on primary data and is expected to have some positive bearing on the key stakeholders of the country including that of policy framing agencies. Besides, the study may be taken as a case teaching material and may act as significant supplementary reference in the classroom teaching.

Keywords:perception, financial skills, financial products and services, qualification, Bhutan

Abstract: Microfinance Institutions (MFIs) provide financial services to those who have no access to finance and are hence considered a tool for poverty alleviation. However, the clear relationship between the depth of the MFIs and their sustainability is still lacking as there is an ongoing debate on whether the two components complement each other or whether there exists a tradeoff. This study applied the panel regression analysis to the data from 44 MFIs of Nepal from 1999 to 2019 and explored the inter-relationship between depth and sustainability of MFI in the Nepalese context. In addition to the two variables of interest, this study further analyses the interaction effect of operational efficiency. The findings show a significant tradeoff relationship between outreach and sustainability at a 99% confidence interval, further moderated by operational efficiency. As a result of increased operational efficiency, MFIs can have better outreach and sustainability. These findings can thus provide a better policy prescription that promotes operational efficiency and ultimately improve both the outreach and sustainability of MFIs.

Keywords:microfinance institutions, depth of outreach, financial sustainability, operational efficiency, Nepal

Abstract: The objective of the study is to bring out the linkages between HRM practices and organizational performance that continue to enthuse the researchers and practitioners as there are mediating and interacting variables in this relationship of distal nature. The black-box model approach was adopted to keep the options open for the researchers to unpack the box with intervening variables. In evaluating the extant literature, the methodology of the study, and intervening variables that link the relationship are derived from the organizational behavioural processes of individual, group, managerial and organizational structures and functions. The structural and functional integration suggested bridging the gap between HRM practices and performance.

Keywords:HRM-performance, HRM practices, OB processes, Strategic HRM, Black-Box Model.

Abstract: Employees are deemed to be happy when there is job satisfaction, job security and work-life balance. This study used quantitative approach. The foremost aims of the study were to assess the employees’ happiness in terms of time use in business colleges of Bhutan and to find out the difference between employees’ happiness in terms of time use for public and private business colleges of Bhutan. This study has adopted the time use dimension from GNH of Business which consists of working hours, work pressure, flexi-time, work-life balance, adequate break and sleeping hours. Using census survey method, all 141 academics from GCBS and RTC were enumerated. The study found that overall employee’s happiness in terms of time use is 67.34% where employees of GCBS are happier (73.52%) than employees of RTC (60.82%).

Keywords:Assessment, happiness, time use, work place, GNH

Abstract: Every organization prefers highly productive human resources which are directly revealed through performance and behaviour at work. Competency is the inner characteristics that control performance and behaviour. This study is aimed at analysing the right set of competencies of faculty, followed by evaluation and gap analyses. The evaluation and gap analyses are used for training needs identification followed by recommendations of the right sets of training and development programmes. The data is collected from 46 teachers of GCBS using a self-designed questionnaire following a census survey. SPSS 21 is used for data analysis. The results revealed that the level of GCBS faculty in each factor of behavioural competency is reported above average while the highest mean is reported in communication and interpersonal skills. In functional competency, the highest level is reported for punctuality and time management followed by teaching-learning effectiveness while the above-average score is reported for factors – quality awareness, academic administration, student development and information technology leverage. The level for research and publication, and industry interaction is reported below average.

The College Research Committee is suggested to organize workshop/seminar/webinar on research and publication for different subjects and or specialization of faculty. The college recommended providing access to online research papers from international level publishers. In addition, it is suggested to improve the industry interaction of faculty along with students on a regular interval of time to ensure active participation and involve faculty in consultancy projects.

Keywords:Competency, competence, functional, behavioural, faculty, training needs identification

Abstract: This paper aims at studying the perception of employees on the identified attributes associated with female leadership in government and corporate sectors in Bhutan. It was assessed with the help of variables which are closely associated with the attributes of female leadership such as affection, efficiency and collaboration. Descriptive and inferential statistics were used to describe the research data and to find the perception difference between male and female employees about female leadership respectively. The research results indicate employees’ perception about female leaders to be slightly more affectionate and efficient. However, they are perceived to be less collaborative across both government and corporate sectors. When compared to males, female employees rated female leadership significantly higher across all three attributes. A higher degree of perception is observed if the immediate supervisor whom employees report to is a female, and vice versa. The inferences drawn from the study may not be generalized to the whole nation as the data was collected only from government and corporate organizations. Also, given the nature of the study, the instances of social desirability bias may have occurred and the honest response might have been compromised. The outcome of this study demands educational interventions and awareness programs across organizations to eliminate the glass ceiling effect so that more females take part in leadership positions. This study could provide some key insights to the female leaders, both in-the-system and aspiring, to understand their stand and challenges in their pursuit to take up leadership roles both in and across the country. This research adds to the limited number of gender-based leadership studies in the country and therefore it could also be useful for concerned researchers, academicians and policy makers as an information input in their respective disciplines.

Keywords:Leadership, gender, employees, perception, affection, efficiency, collaboration

Abstract: Entrepreneurs’ characteristics have a major impact on their inclination towards new start-ups/entrepreneurship. This study attempted to assess the impact of entrepreneurial characteristics on entrepreneurial inclination and if students and existing entrepreneurs differ in terms of their characteristics. Six entrepreneurial characteristics were examined by researchers: the need for achievement, locus of control, propensity to take risks, tolerance for ambiguity, innovativeness, and self-confidence. A total of 352 students from the colleges of Royal University of Bhutan (RUB) and 35 established Bhutanese entrepreneurs participated in the study using an online structured questionnaire through Google Form with a quantitative research design. The results were analysed and presented using descriptive statistics, correlation analysis, regression analysis, and an independent sample t-test. The results showed that all six characteristics are positively correlated with entrepreneurial inclination in both students and established entrepreneurs, and these characteristics (predictors) also had a statistically significant effect on entrepreneurial inclination shown by regression analysis. The results also showed that there is a significant difference in mean values between the two study groups, i.e. established entrepreneurs and students, on Tolerance for Ambiguity, innovativeness, and Self-Confidence, where established entrepreneurs have higher of these characteristics compared to students. The key recommendations of the study are capacity building of the students and guidance from the educators in the area of entrepreneurial characteristics in which students are lacking by introducing Business incubation centers on the campus.

Keywords:Entrepreneurial characteristics, inclination, established entrepreneurs, students