Bhutan Journal of Business and Management
The Bhutan Journal of Business and Management (BJBM), ISSN-L 2079-7680 (Print) and 2663-1784 (Online) is published by Gedu College of Business Studies under the Royal University of Bhutan. It is a double-blinded, peer-reviewed, diamond open access scholarly journal and welcomes work relevant to Bhutan, the Himalayan region, South Asia, and comparable international contexts, while remaining open to research of wider regional or global significance. BJBM publishes contextually meaningful research in business, management, economics, finance, policy, governance, entrepreneurship, technology, and related interdisciplinary fields through research articles, review papers, methodological and analytical studies, qualitative, quantitative and mixed-methods research, policy and practice papers, case studies, book reviews, and invited editorials or commentaries. BJBM upholds editorial independence, double-blind peer review for scholarly submissions, transparent publication standards, conflict-of-interest management, research integrity, and responsible open access publishing. Through these commitments, BJBM seeks to become a trusted forum for high-quality scholarship that connects local relevance with regional and global significance.
Gedu College of Business Studies, Royal University of Bhutan
Problems and Prospects of Bhutanese Film Industry
The upcoming Bhutanese Film Industry seems to have potential to act as a medium to exhibit the Bhutanese culture around the world if it captures a part of share in the international market. However, there are many factors which would hurdle its growth. This research identifies four factors namely, quality of the films, piracy issues, theatre constraints and lesser audience, which seem to hurdle the growth of Bhutanese film production at current phase. In this research, the researchers studied about, to what extent these factors affect the film productions, based on the opinion of viewers, producers and governing bodies. The viewers in this research comprises of the viewers within the city of Thimphu only. This is with the assumption that it represents the typical character of the Bhutanese film viewers. Considering these views, the research has found out that the quality, piracy and audience do exist in the Bhutanese Film Industry and it affects on an average but the problem of theatre shortages is affecting the growth of film industry with relatively greater magnitude.
Bhutanese Film industry, piracy, quality, theater constraints
Copyright (c) 2011 Phub Dorji, Phuntsho Wangmo, Sangay Tenzin, Sonam Wangchuk, Thinley Penjor, Ugyen Chophel https://creativecommons.org/licenses/by/4.0
Entrepreneurial Intent amongst Business Students: A Perspective in Bhutan
Entrepreneurship in Bhutan is an emerging phenomenon both in terms of research and practice. Entrepreneurship is viewed as an alternative strategy to mitigate the rising youth unemployment problems. Against this backdrop, this research examines the entrepreneurial intent of the undergraduate business students in Bhutan. Perceived support, perceived barrier, attitude towards entrepreneurship and educational programme constitute determinants to examine the variation in the students’ entrepreneurial intent. The participants of the research include the second and the final year undergraduate business students of the Royal University of Bhutan from both the business programmes of Bachelor of Business Administration (BBA) and Bachelor of Commerce (B.Com) (n=300). A proportionate convenience sampling was applied where 30% students from every class were chosen to participate in the research. Self-administered survey questionnaires were used to elicit information. The multiple linear regression analysis has been used to analyse the data which shows that the four predictors explain 42.9% of the variation in the entrepreneurial intent of the students. The attitude towards entrepreneurship is the significant predictor. This research is amongst the initial studies conducted on entrepreneurial intent in the Bhutanese context and brings a newer perspective in the understanding of entrepreneurial intent among the present youth.
Attitude towards entrepreneurship, business students, entrepreneurial intent, entrepreneurship education, perceived barrier, perceived support,
Copyright (c) 2019 https://creativecommons.org/licenses/by/4.0
Globalisation in its current phase was expected to generate more employment not only directly but also indirectly through expansion of trade, income, FDI, etc. But for many developing economies of the world, this expectation could not be realised during the last two decades of its operation and in particular, it has resulted in to a jobless growth which often led to a voiceless and ruthless growth ultimately resulting into a futureless growth. The question of human rights protection in the field of employment under globalisation for women in EPZs in particular, is also important. This includes feminisation of poverty and subsequent denial of human rights. This paper introduces these problems and attempts to depict them at different levels and emphasises on the experiences of India which is the habitat of one-sixth of humanity. The paper organises as follows: Introduction; Globalisation and Jobless Growth- A Global Scenario; Globalisation and Jobless Growth- The Indian Case Study; and Conclusion and Policy Prescriptions to meet the Challenges.
Jobless Growth, Truncated Globalization, and Feminization of Poverty
Copyright (c) 2011 Raj Kumar Sen https://creativecommons.org/licenses/by/4.0
Integration of SAARC Nations: Growth, Trends and Challenges
South Asia is emerging as the most promising and energetic region in the global economy. Expansion of domestic economies, rising opportunities for incomes and investments, growing of financial markets, greater pursuit of peace and stability are major driving factors of the current pace of growth in South Asia. Economic growth of the region has picked up at the faster rate in the last two years. Seven out of eight countries in the South Asia region have registered economic growth rates over 6 percent a year, making it one of the dynamic regions in the world. According to Global Economic Prospects of the World Bank, real GDP growth in South Asia which was at 5.7 percent in 2009 is poised to take leap to 6.9 percent in 2010 and to 7.4 percent in 2011. As compared to other regions, the prospect for South Asia seems to appear much brighter in the near future. Financial markets encompass institutions, financial products, market mechanism and services, which can be convenient tools to build common economic market. Financial market in the SAARC region will be a powerful mechanism to foster economic development and enhance quality of life of the people in our respective countries. This paper tries to highlight the latest trends and developments of SAARC nations, especially the role of India in the bloc.
Integration, Export Trade, Tariffs, SAFTA
Copyright (c) 2011 Ramanjeet Singh, Ramita Verma https://creativecommons.org/licenses/by/4.0
Importance of business linkage in the marketing of Handicraft product: A Case Study of Handicraft Industry in Manipur
Handicraft industry is a major industry, and source of employment for rural as well as urban Manipur and India. But this industry has a big issue of sustainability in the present micro-and macro economics environment. To sustain in the present competitive environment, business linkage has been adopted as a strategy to make the industry competitive in terms of productivity and help better marketing. One of the main problems of handicraft industry is lack of marketing capability on the part of craftsman. This paper will study the importance of business linkage for sustainable growth of handicraft Industry and examine the type of business linkage which is prevailing in Manipur. The impact of business linkage type like commercial subcontracting, joint venture, buyback, arms length market transaction, licensing etc on the profit and sales of handicraft industry in Manipur are also examined. Logit model is used to examine the impact of these variables on the growth of handicrafts industry in Manipur.
Rural Industrialization, rural development, Business linkage,Handicraft Industry
Copyright (c) 2011 Elangbam Haridev Singh, Elangbam Bijoy Kumar Singh https://creativecommons.org/licenses/by/4.0
Value Education and GNH- A general Perspective
This article is an attempt to draw the similarities of the concept of GNH educational policy introduced in Bhutan with the general view of Value Education in other countries. It also deals with some general observations of some values still practiced by the general people. Lastly a perspective of the possible consequences of the GNH educational programme is given.
Copyright (c) 2011 Rajeeta Sapam https://creativecommons.org/licenses/by/4.0
Review and Reflections on the Moveable and Immoveable Property Act of Bhutan 1999
The Moveable and Immoveable Property Act of the Kingdom of Bhutan of 1999 is an act dealing with secured loans using moveable or immoveable property as security for the loan. This article reviews the main legal provisions of the Act and offers some suggestions on how to deal with issues of interpretation as well as with some provisions that could benefit from further analysis.
Moveable and Immovable Property; Bhutan; Loan; Security
Copyright (c) 2011 Kim Van der Borght https://creativecommons.org/licenses/by/4.0
Assessing the Relationship between Capital Structure and Financial Performance of Commercial Banks in Bhutan
This study examines the relationship between capital structure and the financial performance of Bhutan’s five commercial banks - Bank of Bhutan Limited (BOBL), Bhutan national Bank Limited (BNBL), Bhutan Developmental Bank Limited (BDBL), Druk Punjab Bank Limited (DPBL) and T Bank Limited from 2014 to 2023. Using audited annual reports, the study applied descriptive statistics and regression analysis to evaluate how debt ratio, equity ratio, and debt-to-equity ratio influence bank profitability measured through Return on Assets (ROA) and Return on Equity (ROE). Results show that debt financing and debt-to0equity mix have a statistically significant negative effect on ROA, while equity ratio demonstrates a statistically significant positive effect on ROA. In contrast, none of the capital structure variables exhibit a significant impact on ROE, suggesting that capital structure decisions affect asset efficiency more than shareholder returns for Bhutanese banks. The study concludes that reducing reliance on debt and improving equity-based financing may enhance asset profitability. Future research should incorporate boarder financial indicators and panel regression techniques to deepen understanding of capital structure dynamics within Bhutan’s financial sector.
Capital Structure, Financial Performance, Commercial Banks, Debt Ratio, Equity Ratio, Debt-to-Equity Ratio, Return on Assets (ROA), Return on Equity (ROE)
Copyright (c) 2025 Rinchen Lhaden, Pema Tshering , Pema Yangdon, Samten Norbu, Sonam Chokey https://creativecommons.org/licenses/by/4.0
Adoption of Green Finance in Bhutanese Commercial Banks: Challenges, Opportunities, and Strategies
This study examines the institutional challenges, emerging opportunities, and strategic solutions related to the adoption of green finance in three Bhutanese commercial banks. Despite Bhutan’s strong environmental policies and the introduction of the Green Finance Roadmap (2020) by the Royal Monetary Authority, the uptake of green finance within commercial banking remains limited. Using a qualitative phenomenological approach, semi-structured interviews were conducted with key banking professionals engaged in green finance operations. Thematic analysis identified four central themes: institutional and regulatory shortcomings, financial and market-based constraints, potential growth areas for green finance, and the need for coordinated strategic support.Major barriers include the absence of binding green finance policies, limited technical expertise, high perceived risks, and insufficient market incentives. However, the study also highlights significant opportunities in sectors such as mini-hydropower, solar energy, electric mobility, and sustainable housing, particularly when supported through blended finance models and international donor partnerships.The study offers practical recommendations, including the development of a national green taxonomy, implementation of concessional financing tools, and targeted capacity-building initiatives. These findings aim to support both academic research and evidence-based policymaking by offering actionable insights into how Bhutanese commercial banks can accelerate the integration of green finance and contribute to national sustainability objectives.
Green Finance, Sustainability, Bhutanese Commercial Banks, Green Finance Challenges, Green Finance Opportunities, Green Finance Roadmap
Copyright (c) 2025 Nigam Samal, Kinga Wangmo, Kinley Dorji, Lekzang Pema Seldon, Chencho Wangchuk https://creativecommons.org/licenses/by/4.0
Factors Influencing Consumer Purchase Intention on Products Communicated through TikTok Live Streaming among GCBS Students
This study investigates the factors influencing consumer purchase intentions during TikTok live streaming among students at Gedu College of Business Studies in Bhutan. As TikTok rapidly gains popularity as a digital marketing platform, understanding the dynamics of live streaming commerce becomes crucial for businesses. Employing a quantitative approach, the research utilizes structured surveys to gather data from 300 respondents, focusing on five key variables: Customer Trust in Seller, Information Quality, Ease of Use, Electronic Word of Mouth (eWOM), and Streamer Attractiveness. The analysis reveals that Customer Trust is the most significant predictor of purchase intention, followed by Information Quality and Streamer Attractiveness. Although Ease of Use and eWOM showed positive correlations with purchase intention, they did not emerge as significant predictors in the regression analysis. The findings underscore the importance of establishing trust, delivering high-quality information, and leveraging streamer attractiveness in enhancing consumer engagement and driving sales. This research provides actionable insights for digital marketers and entrepreneurs in Bhutan, highlighting strategies for optimizing TikTok live streaming practices. By fostering authenticity, ensuring clarity in product information, and enhancing the appeal of streamers, businesses can effectively influence purchasing behavior in this evolving digital landscape. The study lays the groundwork for future research on digital marketing trends in Bhutan, contributing to the broader understanding of consumer behavior in live-streaming environments.
TikTok Live Streaming, Consumer Purchase Intention, Customer Trust, Information Quality, Ease of Use, Electronic Word of Mouth (eWOM), Streamer Attractiveness
Copyright (c) 2025 Pingola Acharya, Sangay Choden, Pema Yangki , Samira Gurung, Sangay Nima https://creativecommons.org/licenses/by/4.0
Individual Work Plan (IWP) in Royal University of Bhutan: Challenges Faced by the Supervisors and Academics
Individual Work Performance (IWP) enhances accountability by aligning individual goals with organizational objectives. Royal University of Bhutan (RUB) adapted the IWP as a core element of its Performance Management System, with the aim of promoting professionalism, supporting evidence-based management, and ensuring a comprehensive measure of individual performance. This study attempted to assess the challenges faced by both academic staff and immediate supervisors regarding the IWP across eight constituent colleges under RUB. The data were analyzed using regression analysis, ANOVA, and Principal Component Analysis (PCA). The results indicate that, from the perspective of academic staff, factors such as Objectivity in Performance Appraisal (OPA), Fairness of Assessment (FOA), and time-consuming (TC) factors have a significant influence on IWP. Whereas, from the perspective of supervisors, the main challenge is the personnel relationship with the faculty members. The study concludes that the IWP system faces significant structural and perceptual hurdles. The study suggests a revision of the IWP on a regular basis to capture and reflect on users’ feedback.
Fairness of Assessment (FOA), Time-consuming (TC), Individual Work Performance (IWP), Objectivity in Performance Appraisal (OPA),
Copyright (c) 2025 Yeshi Pelden,Sonam Dema,Purnendu Basu https://creativecommons.org/licenses/by/4.0
Managing University Networks and Internationalisation
Using a meta-analysis of peer-reviewed scholarly research and policy documents, this paper analyses higher education Internationalisation. Cases from India, China, and the Himalayan University Consortium (HUC) are presented. Challenges of standardized quality assurance and ethical intentions of foreign institutions in developing cross-border education agreements emerge from the cases. Furthermore, the cases demonstrate the myriad potential benefits to be gained from international connectivity of universities ranging from improved teaching, learning, and research quality as well as the development and co-creation of best practices. Implications for the Royal University of Bhutan and other similar tertiary education institutions include the necessity of observing and adapting local approaches based in the experiences of other countries’ universities already well-versed and practiced in the beneficial and adverse repercussions of internationalizing and networking institutions of higher learning.
Higher education, Internationalisation, networks, cross-border education, quality assurance
Indian and Bhutanese Governments Support Platform towards E-Marketing in SBEs: An Exploratory Study
E-Marketing is often considered to be the future of marketing and the other related fields. The last two decades have been crucial for the E-marketing as the world is witnessing the biggest electronic revolution in the era of Information Technology and Computers. Today every organisation strives to mark its presence on the E-world along with the real world through different E-Sources available to it. The ever growing E-commerce is the biggest evidence of the presence of E-marketing in the modern world. This development in the field of marketing is possible because of the E-Infrastructure available in an economy which is the result ofgovernment policies and vision pertaining to the future of the respective nations. Many authors, researchers are of the opinion to develop the E-marketing practices so as to develop the economy as the E-marketing tends to target more number of customers, suppliers and other stakeholders. The present study is an attempt to analyse support platforms available for SBEs in the two neighbouring countries India and Bhutan. The study analyses the various government agencies available in these two nations and their contribution in providing the support platform towards E- marketing in SBEs. The study also compares the practices of the two nations based on the literature and tries to draw a meaningful conclusion and recommendations thereon.
E-Marketing, Small Business Enterprises (SBEs), Information Technology, Support platform, India, Bhutan, government agencies
Class Absenteeism and Exam Performance of GCBS Students
Literature on the importance of class attendance affirms the positive effect of attendance on student achievement. Royal University of Bhutan has therefore, developed attendance policies that mandate all students to attend at least 90% of the classes in each module. Consequence of the law, every semester many students are directly declared fail in the respective module(s) of attendance shortage which do not actually represent the real learning outcome of the students. Therefore, to evaluate the actual impact of attendance in terms of learning outcomes a correlation analysis is performed using Feb.-June 2015 semester data. Results indicate a statistically significant but weak positive correlation between lecture attendance and exam performance ( , suggesting the requirement to improve class deliveries and course designs. Students are also recommended to develop their personality towards class attendance and learning.
Attendance, Exam Performance and Correlation
Servant Leadership: A Componential Analysis
Servant leadership, an exceptional form of leading and interacting with the followers in the process of endogenous and exogenous goal achievement, generally involves ‘I serve’ form rather than the commonly practiced ‘I lead’ form. Conceived in the realm of spiritual and ethical form of influencing, the theory and practice of servant leadership is still in its evolving stage. The converging and diverging interpretations, however, do not dilute the essence of servant leadership. The differing analyses further illuminate the nature of servant leadership. In dissecting the components of this unique form influencing, the key psychological processes are subjected to study in the context of the general parameters of servant leadership.
Leadership, Servant leadership, Emotional processes, Cognitive processes, Motivational processes, Personality processes, Social relational processes
Self Help Groups - Imperative for Financial Inclusion in India
India, in the last couple of decades, has witnessed competent growth in the financial service sector. However, several questions have often been raised for majority of impoverished population that is excluded from formal financial system. The exclusion is very high in which one of the surveys shows that 59 percent of the rural household do not have deposit account and 79 percent of the rural households are outside the purview of credit from formal sources. The degree of such vast financial exclusion raise questions towards the Financial Inclusion Policies (FIPs) of the government and demands new mechanism and interventions to address the same. The Self – Help Groups (SHGs) in the recent past have been found as an effective tool to streamline poor with formal financial system. The present study, therefore, is a micro attempt where the current scenario of Financial Inclusion (FI) and the role of SHGs on the promotion of FI in India have been studied. The secondary data from NABARD, RBI, government departments, journals and websites form the sources of the study. The percentages and Linear Growth Rate (LGR) of different financial variables have been calculated to draw proper inferences. The study at the end infers that SHGs play pivotal role in bridging the hiatus between poor and financial institutions. The SHG Bank Linkage (SBLP) programme has been effective for streamlining poor with formal financial system. Over the years, the number of savings and credit linked SHGs have been increased. With the increased number of SHGs, the volume of loan outstanding and savings bank balance have also been increased. Besides, the roadmap prepared by the RBI for providing banking outlets in unbanked villages and preparation and implementation of board approved FIPs have been found significant for FI.
Financial Inclusion, Self Help Groups, Microfinance, Poverty
Gross Organisational Happiness (GOH): An Extension of the Gross National Happiness (GNH) Concept
This paper introduces the concept of Gross Organisational Happiness (GOH), an analytical tool that businesses, organisations, and communities could implement as a way to improve their working environment and productivity. The analogy of a structure of a house is used to describe the link between GNH, GOH and Gross Organisational Happiness Data System (GOHDS). Currently, the GOH concept is largely conceptual because its empirical evidence is limited to the findings of a case study. However, the potential exists for GOH to be widely applied in businesses to enhance the conventional profit-based notion of success. One obstacle of GNH to date has been its apparent lack of practicability, and so the new GOH expands upon GNH. This article first examines the meaning of ‘happiness’, its relevance to the concept of Gross National Happiness (GNH) and how it has led to the new concept, Gross Organisational Happiness (GOH).
Paradigm shifter, Gross National Happiness, Gross Organisational Happiness, data system, material and mental well-being.
Demonstration Effect among the students of GCBS
This paper is motivated by the work of James S. Duesenberry in which he tries to figure out human behaviour of excessive consumption without looking at his income. The paper however, highlights the importance and effectiveness of student’s consumption pattern in a college scenario by taking Gaeddu college as a particular area of study but the results of the research can be related to all college students. the research also identifies the factors that may determine student’s behaviour towards the consumption of products other than their basic necessities. It also aims at possibly solving the problems of student’s uncontrollable spending habits and finding out ways in which students can manage money and find more effective and economical ways of spending. the research was conducted with regard to Duesenberry’s demonstration effect which is based on the theory that people’s buying behaviour is influenced by others and not simply people around them but those that they look up to. The possible causes of student’s uncontrollable spending habits have been identified and analysis has been done by drawing nine parameters that are likely to have an impact on the student’s buying behaviour and collecting responses through questionnaires.
Income, demonstration effect, spending habits, students
Copyright (c) 2011 Tshering Yangzom, Rinchen Chopel, Dawa Tshering, Ugyen Wangchuk, Kesang Tshokey, Tashi Chozom, Chencho Wangmo https://creativecommons.org/licenses/by/4.0
Employees Stress Level: A Study on Bank Professionals in Bhutan
This study intends to understand organisational role stress experienced by employees of banks in Bhutan. In this study, Organisational Role Stress (ORS) scale developed by Pareek (1993) is used, which studies ORS from ten dimensions. Data are collected from 56 full-time employees working in two major banks (Bank of Bhutan and Bhutan National Bank) in Bhutan. Results reveal that employees have moderate level of work stress. Of which, female employees are more stressful than their male counterpart, young employees are under more stress than old employees and employees with high educational qualification are more stressful. The study may help organisations to deal with and manage effectively employee’s occupational stress.
Organizational Role Stress, Occupational Stress, Work Stress, Bank Professionals in Bhutan
Copyright (c) 2011 Md. Hassan Jafri https://creativecommons.org/licenses/by/4.0
E-commerce Impact on Retail Sector in Thimphu: Assessing Challenges, Willingness and Readiness for E-commerce
Despite the global surge in e-commerce, traditional brick-and-mortar retail continues to be the major part of Bhutan’s economy. This qualitative study investigates the growth of online platforms from the perspective of physical retailers in Thimphu, their obstacles, and their readiness and willingness to accept the digital sales channels. The study applied an exploratory design based on the Technology Acceptance Model (TAM) (Davis, 1989) and among the various qualitative methods used, thirty (30) semi-structured in-depth interviews were conducted during the month of May 2025 with a purposely chosen sample of 19 purely physical and 11 hybrid retailers in Thimphu. The interviews were recorded, transcribed, and analyzed by Braun and Clarke ‘s (2006) six-phase reflexive thematic analysis through both manual coding and NVivo 14 software. According to the statements made by the respondents, four key challenges were identified: decline in customer footfall (cited by 28 out of 30), the aggressive strategy of online lowering prices (26/30), and the constant burden of high fixed costs including rent and salaries (24/30), and lastly, the lack of a digital infrastructure together with low digital skills (21/30 and 19/30 respectively). Notwithstanding these obstacles, 22 respondents showed moderate to high willingness for the adoption of e-commerce, provided that they would receive training and financial assistance. The two main concepts of TAM, perceived usefulness, and perceived ease of use, were repeatedly mentioned as the most important factors, while external support (government training, subsidies, and fair taxation policy) came up as a significant moderator of adoption intention. The research supports the Technology Acceptance Model (TAM) by revealing how crucial the cultural and infrastructural moderators are in small and developing economies. Recommendations for practice include nationwide digital literacy programs, subsidized payment gateways, and fair tax treatment between.
Physical retail Store, E-commerce adaptation, Online competition, Retailer perceptions, Sustainable business practices, Business model changes
Copyright (c) 2025 Dorji Yuden, Namgay Wangmo, Karma Sherab Lhamo, Younten Lhamo https://creativecommons.org/licenses/by/4.0
Indian Cultural Values in Advertising: A Comprehensive Review
Culture significantly shapes individuals' daily lives by influencing the consumption decision. This, in turn, affects the communication strategies of brand marketing. In order to grab consumer attention, brand marketers usually incorporate various cultural elements of their target audience. This paper focuses on understanding how Indian culture is integrated into advertising practices. However, very few works are available in the public domain addressing this subject matter. This scarcity limits the understanding of how cultural elements can be used effectively in brand communication strategies and potentially limits marketers' ability to connect with target audiences effectively. Consequently, this study reviewed only eighteen research works focussed on the use of cultural values in advertisements. Besides, most studies focus on television commercials only. Cross-cultural studies using Indian culture as one of the cultural resources have also been observed in this regard. Additionally, content analysis is a major method that is employed to understand how culture-related aspects are used in advertisements. In addition to that, there has been no standard definition for culture and values so far as shown by this study. Similarly, a model based on Indian cultural values has not yet been established either. In extant literature, this study examines various aspects of the cultural content in advertisements and identifies possible areas for further investigation, such as exploring diverse cultural elements like language, symbols, customs, and rituals. Additionally, research should focus on newer media forms, such as digital and influencer marketing, and the integration of culture to address gaps in modern marketing communication.
Indian culture, Cultural values, Advertising, Marketing communication, Content analysis
Copyright (c) 2024 https://creativecommons.org/licenses/by/4.0
An Empirical Study on the Capital Budgeting Practices: Evidences from RSEBL Listed And DHI Owned Companies
Long-term investment decisions are one of the most complicated financial decisions and the need for investigation of its practices has become very crucial in Bhutan. It is evident from the total sample size of 29 RSEBL (Royal Securities Exchange of Bhutan) listed companies and DHI (Druk Holding and Investments) owned companies that they mostly prefer PI (Profitability Index) in capital budgeting decision-making in Bhutan. The findings from this study also reveals that, the project risk assessment tools such as scenario analysis and real options are the dominant approaches among RSEBL listed and DHI owned companies.
Capital Budgeting, Profitability Index, RSEBL, DHI, risk assessment
Copyright (c) 2024 Hita Nath Dhakal, Budha Raj Kafley, Ankit Bhujel, Bhim Bahdur Subba, Jamayang Chetsho https://creativecommons.org/licenses/by/4.0
Analysis of Liquidity, Credit and Operational Risk on Financial Performance of Banks in Bhutan (BOBL, BNBL, & DPNBL)
This research has been conducted to provide insight on how liquidity risk, credit risk, and operation risk affect the bank’s financial performance in three different banks (BOBL, BNBL, and DPNBL) in Bhutan measured by Return on Asset and Return Equity. This study is based on an exploratory and quantitative approach seeking to explain the impacts of risk components on banks’ performance. For this, liquidity risk, credit risk, and operation risk were employed as the independent variables whereas ROA and ROE were used as the dependent variable. The liquidity risk is measured by quick ratio and cash ratio, while credit risk is measured by non-performing loan and capital adequacy ratio, and the operational risk is measured by efficiency ratio and cost to income. Secondary datasets were extracted from the audit annual reports of the selected banks for 10 years (2013- 2022). The finding of the study reveals that the operational risk and credit risk has a statistically significant impact on the ROA however, the liquid risk has no significant impact on ROA. In case of ROE, the operational risk has a statistically significant impact but the liquidity risk and credit risk do not have a statistically significant impact.
Liquidity risk, Credit risk, Operational risk, Return on Asset, Return on Equity.
Copyright (c) 2024 Devindra Neopaney, Doot Kumar Ghalley, Karma Choden, Dechen Wangmo, Ganesh Rasaily https://creativecommons.org/licenses/by/4.0
Factors Influencing the Adoption of Digital Banking Platforms among the Customers of BoBL in Thimphu Dzongkhag
This research study was conducted to investigate the factors influencing the adoption of digital banking platforms among Bank of Bhutan Limited (BoBL) customers, specifically in Thimphu Dzongkhag of Bhutan. The study has employed the Technology Acceptance Model (TAM) as a theoretical framework to assess how each independent variables influence the dependent variable toward the adoption of BoBL’s digital banking platform. For this study, data from 408 valid respondents were collected for the analysis. The respondents for the study include only the users’ of BoBL’s digital banking platform residing in Thimphu Dzongkhag. The study found five factors affecting adoption: perceived security and digital trust, digital financial literacy, perceived ease of use, transaction speed and timesaving, and perceived usefulness. Three of these - perceived security and digital trust, digital financial literacy, and perceived usefulness – significantly influenced adoption, with digital financial literacy being the most important factor. Interestingly, the mobile app (mBoB) was used by 84% of respondents, while the BoBNET Retail platform had almost no users. Overall, 61% of respondents reported using BoBL’s digital platforms for daily transactions.
Digital banking, Adoption, Technology Acceptance Model (TAM), Principal Component Analysis (PCA), Bank of Bhutan Limited (BoBL), Thimphu Dzongkhag, mBoB, goBoB, BoBNET Retails
Copyright (c) 2024 Karma Yangchen, Kezang Wangchuk, Kinley Pelden, Pema Yangden, Pema Yangdon https://creativecommons.org/licenses/by/4.0
Influence of Teaching Faculty’s Financial Literacy on Investment Decisions: A Case Study of Gedu
This study examined the influence of financial literacy (FL) on the investment decisions (ID) of teaching faculty at Gedu College of Business Studies (GCBS) and Gedu Higher Secondary School in Bhutan (GHSS). This research sought to ascertain the level of FL and measure the influence of FL, specifically considering financial attitude (FA), financial behavior (FB), financial skills (FS), and financial experience (FE) on the ID made by the respondents. A quantitative, cross- sectional research design was employed. Out of the total population of 94 teaching faculty, only 77 completed the questionnaire. The questionnaire measured five variables: FA, FB, FS, FE, and ID. Descriptive analysis was used to measure the FL, correlation analysis was used to see the relationship, and regression analysis was used to see the influence of FL on ID. The findings indicated moderate levels of FL among the teaching faculty. There was a positive and moderate correlation between income level and ID. Additionally, the results showed that FL significantly influenced the ID of the teaching faculty. This suggested the importance of enhancing FL, especially among teachers, to enable them to make sound ID. Improving the FL of teachers can have a ripple effect, empowering them to make wise ID and impart essential money management skills to the next generation. The study provides valuable insights for policymakers and financial institutions to develop targeted financial education initiatives.
Financial Literacy, Investment Decisions, Income Level
Factors Affecting the Performances in Accountancy in BHSEC 2021
The current study was designed to examine the underlying causes behind low performance in accountancy in BHSEC 2021 by covering the perception of teachers and students. The sample size of 273 students (137 girls and 136 boys) from different schools and 68 teachers (16 females and 52 males) were chosen by using a simple random sampling method. Data were collected using a structured questionnaire in the google form. The data collected was tabulated and results were interpreted through mean values, frequencies, standard deviations and percentages. The study revealed different question patterns and more of competency-based question (CBQ) as the major cause of low achievement in accountancy by the perception of students and teachers. This study revealed that Bhutan Council for School Assessment and Examination (BCSEA) and Department of Curriculum and Professional Development (DCPD) have not oriented teachers on change of question pattern.
Accountancy, Performance, Teacher Experiences, Examination, New School Curriculum.
Copyright (c) 2023 https://creativecommons.org/licenses/by/4.0
Decision-making is primarily a mental activity of the decision-maker even when the decision-maker is confronted with the decision environment of data and context. This aspect of the psychological process is delineated into the intra- individual sub-systems of cognition, affect, motivation and personality traits. The sub-systems influence the decision-making process in interactive and integrative ways thereby the choice of the decision-maker become an outcome of cognition, affect and personality traits wherein it becomes interacting and intervening variables of significance. The mechanisms of cognition in the form of information- processing and knowledge structures, affect in the ways of the emotional processes of the decision-maker, motivation in the form of the pursuit of goals and personality traits in its constellation.
Decision-making, Cognition, Affect, Motivation, Personality traits
Modeling and Predicting Stock Market Volatility using ARCH Model: Evidence from Bhutanese Stock Market
The stock market is widely known for its high degree of volatility, making it more challenging for individuals to accurately model and predict it in real-time. In an attempt to forecast the stock price and its volatility, investors, stock market analysts and academicians have been developing models for quite some time. One such model, the Autoregressive Conditional Heteroskedasticity (ARCH) model, developed by Engle (1982), has found wider applications in time series analysis where the central issue lies with the volatility clustering phenomenon. This paper employs the ARCH model as an econometric model to forecast volatility of the share price of three companies listed on the 2Royal Securities Exchange of Bhutan, namely Sherza Ventures Limited (SVL), Bhutan Insurance Limited (BIL), and Bhutan National Bank Limited (BNB). For this study, we statistically tested the time series share price return data from January 2019 to December 2022 for stationarity using Augmented Dickey-Fuller unit root test and for conditional heteroscedasticity effect using the ARCH Lagrange Multiplier test before modelling the ARCH model. To model the ARCH model, we selected the optimal order of the model, q, using the partial autocorrelation function of the squared residuals. The ARCH (1) model provided the best fit, resulting in accurate forecasts of the volatility of the stock price return. Overall, our ARCH (1) model performed very well with a mean absolute error and root mean squared error of 0.02628 and 0.03139, respectively, for the volatility of SVL return, 0.01523 and 0.01943 for BIL return, and 0.01395 and 0.01666 for BNB return. The study is expected to benefit stock market investors for making a sound investment decision thorough their knowledge about the volatility of return. Also, it would enable the stock market regulators to develop effective regulations and policies to promote market efficiency and investor confidence. Additionally, the study may shed light to future researcher and academicians for potential future research on applications of the ARCH model beyond stock market.
ARCH, Augmented Dickey-Fuller test, ARCH-LM test, Volatility of Return, Modeling, Forecasting, Bhutan
Financial Performance Analysis of Telecom Industry of Bhutan: A Study on Bhutan Telecom Limited (BTL)
Telecommunication industries are the boosters of any economic growth. In Bhutan, Bhutan Telecom Limited (BTL) plays a significant role in providing quality network services. The study aims to assess the financial performance of the company from 2011 to 2021 and also identify the factors affecting its profitability. This study is based on hypothesis testing of the research design and tries to identify the best model to explain the performance of the company using regression analysis. The study considered the Return on Equity (ROE) as the dependent variable and Current Ratio (CR), Working capital to sales (WCS), Return on sales (ROS), and Debt-to-equity Ratio as independent variables. The test stated that DER, WCS, and ROS have a significant impact on the profitability. However, CR has no significant impact on the profitability. The finding portrays that the company’s profitability has increased continuously from 2019-2021, despite the interruptions from the COVID-19 pandemic.
Bhutan Telecom Limited, Financial Performance, Covid-19 Pandemic, Regression Analysis
A Qualitative Analysis of HR Managers’ Role in the Health Care Sector of Oman
This study aims to explore the role of HR managers in Omani hospitals through a qualitative analysis. The research involved in-depth interviews with HR managers and healthcare professionals in various Omani hospitals. The study found that HR managers play a vital role in developing the skills and knowledge of healthcare professionals through training, mentoring, and providing opportunities for professional development. However, several challenges, such as a lack of resources and limited budgets, hinder the effective implementation of HR strategies in healthcare organizations. Further, it was identified that most of the healthcare organizations do not have a dedicated HR department, and the HR activities are performed by the senior officials or medical doctors. The study recommends that every established health care system should have a dedicated HR department where the HR managers can collaborate with healthcare professionals to identify their learning needs and prioritize training and development programs to enhance their skills and knowledge.
HR Manager, Professional Development, Health Care Professionals, Performance, Training