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Muñoz, Oscar González, and Milagros Cano Flores. "Basic principles of economic policy and public decision in the 21st century." Journal of Social Sciences (COES&RJ-JSS) 9, no. 1 (January 1, 2020): 21. http://dx.doi.org/10.25255/jss.2020.9.1.21.31.
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In the midst of the new contributions to economic theory and the new challenges that represent globality as a means of integrating markets through the economic policy of the neoliberal order, versus the consolidation of a neo-institutional system through the defense of the Sovereignty as a nationalism of attention to the conditions of political life, it is necessary to conduct a respectful analysis of the new scenario of international life through current economic theory. The objective of this paper is to carry out an analysis of the known economic policy models through the theoretical contribution of classical economists. It is a theoretical exercise and bases its result on the concretion of the complexity of the economic model currently known.
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Betz, Frederick. "Models of Financial Markets." Asian Business Research 1, no. 2 (October 28, 2016): 30. http://dx.doi.org/10.20849/abr.v1i2.88.
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Computer-based algorithms & models have become important in trading in financial markets. We illustrate the significance of model analysis of financial systems by a case study of BlackRock’s analytical platform called ‘Aladdin’. The nature of the model used in a computer algorithm is central to its real performance. Unreal models in financial algorithms will yield inaccurate performances. We review five fundamental models of economic dynamics: (1) traditional price-equilibrium of a commodity market, (2) Keynes-Minsky financial transactions over time, (3) price-disequilibrium of a financial market, (4) investment bank market disequilibrium process, and (5) disequilibrium financial grid of international capital flows. Empirically-valid graphic models are necessary – in order to methodologically develop societal-useful normative economic theory -- based upon the real natural-experiments of societies in economic history.
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Sosa, Miriam, and Edgar Ortiz. "International Financial US Linkages: Networks Theory and MS-VAR Analyses." Revista Mexicana de Economía y Finanzas 14, PNEA (August 1, 2019): 459–84. http://dx.doi.org/10.21919/remef.v14i0.418.
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This paper aims to examine the impact of the Global Financial Crisis on portfolio investment flows, as well as on stock market activity. Network Theory is used to analyze structural changes of foreign portfolio investment flows (FPI) to a sample of 13 developed countries and 6 emerging Latin American countries. Additionally, using daily data from 2003 to 2015, the dynamics of returns are analyzed to test whether the US market influenced these markets or vice versa; univariate (MS-AR) and multivariate (MS-VAR) regime-switching models are used. The evidence confirms the presence of two different regimes, low volatility and a high volatility for all markets. Findings suggest strengthening local productive and financial institutions in order to anchor FPI. The MS-(V)AR study is limited to stock markets from the Americas and Europe. Previous literature has not applied the innovative and complementary methodologies employed here to analyze financial crisis impacts on FPI flows. We conclude that US financial markets keep a close financial relationship with the most important European and American countries’ stock markets, both by receiving and delivering FPI, and in addition influencing the behavior of stock indexes.
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FORNARI, FABIO, and ANTONIO MELE. "SIGN- AND VOLATILITY-SWITCHING ARCH MODELS: THEORY AND APPLICATIONS TO INTERNATIONAL STOCK MARKETS." Journal of Applied Econometrics 12, no. 1 (January 1997): 49–65. http://dx.doi.org/10.1002/(sici)1099-1255(199701)12:1<49::aid-jae422>3.0.co;2-6.
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Piras, Luca. "How psychology affects decisions in corporate finance: Traditional vs. behavioural approach." Journal of Governance and Regulation 1, no. 4 (2012): 76–87. http://dx.doi.org/10.22495/jgr_v1_i4_p6.
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The aim of this research is to draw a theoretical line to connect on a common conceptual base, behavioural fi-nance with what is internationally known as Modern Finance. The debate often involves discussions about the prevalence of rationality over irrationality. This paper will address mainly two questions: as an economist, should I propend for traditional or for behavioural finance? And, perhaps more important, are they in opposition to each other? Linking the principles upon which the traditional theory of finance is based to behavioural finance appears also to be useful to better understand recent global turmoil in the world financial system. In finding such links, behavioural finance studies will help on driving research to define market models much closer to reality than they are today. Thus literature recognition will be carried out, starting from the most important contribution to fundamental analysis, value theory, going through modern portfolio theory and efficient market hypothesis to seminal contributions on behavioural finance, reaching recent findings of Neuronomics, in order to establish some common theoretical base in corporate finance studies.
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Boutabba, Islem Ahmed. "Herd behaviour in stock markets: an international perspective." JOURNAL OF SOCIAL SCIENCE RESEARCH 3, no. 3 (April 30, 2014): 331–43. http://dx.doi.org/10.24297/jssr.v3i3.3261.
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In this paper, we study the behavioral finance as a theory that seeks to combine cognitive and psychological components with economic and financial aspects to explain irrationality of financial decisions. It is a paradigm where financial markets are studied using models that are less tight than those based on expected utility theory of Neumann Morgenstern and on arbitrage assumptions. Behavioral finance has two main parts: cognitive psychology and the limits to arbitrage.Cognitive refers to how people think. There is a large literature in psychology that claims people make asymmetric errors in thinking. Limits to arbitration refer to prediction data where forces of arbitrage circumstances will be effective or not. Our empirical validation focused on one of the cognitive components: herding. Indeed, we examined herd behaviour in an international context (the United States (DJU), Argentina (MERV), and France (CAC20)) using the model of Chang et al (2000). Our results led us to conclude that there is no herd behaviour.
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Boutabba, Islem. "Herd behaviour in stock markets: an international perspective." JOURNAL OF SOCIAL SCIENCE RESEARCH 4, no. 2 (June 4, 2014): 564–72. http://dx.doi.org/10.24297/jssr.v4i2.3150.
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In this paper, we study the behavioral finance as a theory that seeks to combine cognitive and psychological components with economic and financial aspects to explain irrationality of financial decisions. It is a paradigm where financial markets are studied using models that are less tight than those based on expected utility theory of Neumann Morgenstern and on arbitrage assumptions. Behavioral finance has two main parts: cognitive psychology and the limits to arbitrage.Cognitive refers to how people think. There is a large literature in psychology that claims people make asymmetric errors in thinking. Limits to arbitration refer to prediction data where forces of arbitrage circumstances will be effective or not Our empirical validation focused on one of the cognitive components: herding. Indeed, we examined herd behaviour in an international context (the United States (DJU), Argentina (MERV), and France (CAC20)) using the model of Chang et al (2000). Our results led us to conclude that there is no herd behaviour.
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Brem, Alexander, Daniel A. Gerhard, and Kai-Ingo Voigt. "Strategic Technological Sourcing Decisions in the Context of Timing and Market Strategies: An Empirical Analysis." International Journal of Innovation and Technology Management 11, no. 03 (May 29, 2014): 1450016. http://dx.doi.org/10.1142/s0219877014500163.
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In times of changing business models and international competition, there is an inherent need for companies to foster and develop mechanisms to absorb new technologies for innovative products and processes effectively. Such considerations lead to the strategic make-or-buy decision which was the subject of our research. This quantitative explanatory study in the German industry shows in particular that companies base their decision for internal or external sourcing on multiple weighted criteria with scoring models and, even more common, with portfolio matrices. These results are in common with recent research, however, other results are surprising, e.g. just a small minority of companies involve people from controlling and legal departments in these decision processes. The paper also reveals differences between companies with different timing and competitive strategies, which are in line with the proposed characteristics of these strategic focuses in literature. Implications for theory and practice are given to foster future research in this area.
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Nogueira, Nasaré Vieira, and Luiz Ricardo Kabbach de Castro. "Effects of ownership structure on the mergers and acquisitions decisions in Brazilian firms." RAUSP Management Journal 55, no. 2 (December 6, 2019): 227–45. http://dx.doi.org/10.1108/rausp-11-2018-0124.
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Purpose The purpose of this study is to examine the effects of ownership structure on merger and acquisition (M&A) decisions of Brazilian listed companies. Design/methodology/approach This paper is an applied and explanatory research based on secondary data. The sample is comprises non-financial companies listed on the BM&FBovespa between 1998 and 2007. Considering that the dependent variable is binary, the authors estimate panel data logistic regression models. Considering the existence of conflicts of interest among those who have the decision-making power and the supplier of capital for M&A transactions, they draw upon the Agency Theory to develop the theoretical hypotheses. Findings The results show that, for a sample of Brazilian non-financial companies listed on the BM&FBovespa (B3), from 1998 to 2007, Brazilian firms present, on average, a highly concentrated ownership structure and the major controlling shareholders are families or the State. These characteristics are negatively related to the likelihood of M&A transactions, as most of these controlling shareholders are reluctant to adopt mechanisms that reduce their control. Research limitations/implications With regard to the limitations, this study considered only the M&A definitions as stated by the Bureau van Dijk database. In this sense, future studies may analyze the effects of ownership structure based on other M&A definitions and typologies. In addition, the study is limited to the period from 1998 to 2007, which is prior to the international financial crisis. Future studies may extend the analysis period to include the post-crisis period (2008) to check if there are differences in M&A strategies before and after the crisis. Practical implications From a managerial perspective, the results show that minority shareholders have little or no influence over an M&A decision, so they cannot decide on the use of resources for fast growth and access to new markets through M&A. Thus, the investment decision must take into account the nature and the quality of the controlling shareholder. Social implications This study shows a significant and negative effect of ownership concentration on the likelihood of M&A transactions. In part, this result demonstrates the importance of understanding the behavior of controlling shareholders before inferring on other key aspects that the M&A literature tends to make fundamental in explaining M&A decisions in publicly traded companies, particularly, in an environment of low minority shareholder protection. Originality/value Previous studies have partly found that the M&A decision is motivated by individual advantages obtained from increasing the size of the firm, or from managerial hubris. The results show that these hypotheses do not hold in the Brazilian context. Moreover, the results indicate that M&A decisions are associated with the characteristics of the controlling shareholder, their level of ownership concentration and their typology, contributing to the agency debate on whether the incentive or the entrenchment effect prevails in the context of the agency problem between controlling and minority shareholders, particularly, in an institutional environment of low shareholder protection.
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HE, BAOGANG. "The Theory and Practice of Chinese Grassroots Governance: Five Models." Japanese Journal of Political Science 4, no. 2 (November 2003): 293–314. http://dx.doi.org/10.1017/s1468109903001105.
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Theories of governance and Chinese understandingsThere is a vast and eclectic literature about many forms of governance, including markets, bureaucratic hierarchies, associations and different types of networks. The Commission on Global Governance, for example, defines governance as ‘the sum of the many ways individuals and institutions, public and private, manage their common affairs. It is a continuing process through which conflicting or diverse interests may be accommodated and cooperative action may be taken. It includes formal institutions and regimes empowered to enforce compliance, as well as informal arrangements that people and institutions either have agreed to or perceive to be in their interest’. Thus, ‘at the global level, governance has been viewed primarily as intergovernmental relationships, but it must now be understood as also involving non-governmental organizations (NGOs), citizens' movements, multinational corporations and the global mass of dramatically enlarged influence’.
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Fernandes, Rui, Borges Gouveia, and Carlos Pinho. "EXPLORING MODES OF ENTRY INTO INTERNATIONAL MARKETS: DIRECT INVESTMENT OR CONTRACTUAL RELATIONS." Journal of Business Economics and Management 15, no. 1 (March 4, 2014): 56–73. http://dx.doi.org/10.3846/16111699.2013.809786.
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We consider the multinational company's decision on whether to enter a new foreign market using direct investment by establishing a subsidiary, direct exporting or contracting a local distributor, with the option to invest later. We develop two models, based on the real options theory, to support such decisions. The option on direct exporting or on a local distributor allows the firm to minimize risks by finding out if the market is large enough to support future direct investment. We find the direct investment to be the desirable mode of entry in large markets subject to low demand uncertainty. Overall, the investigation increases the knowledge related with exploring new markets subject to demand uncertainty, valuing the flexibility of present and future options.
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Rashid, Kashif, and Sardar M. N. Islam. "Board size and firm performance: A comparative and comprehensive analysis by using organizational theories and correct proxies." Corporate Board role duties and composition 6, no. 2 (2010): 35–52. http://dx.doi.org/10.22495/cbv6i2art3.
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An organization’s board is an important governance mechanism to incorporate corporate governance provisions in financial markets. Previous studies on board size and the value of a firm relationship (BVF) are inconclusive and lack a comparative and comprehensive analysis of this relationship which incorporates the role of additional factors present in the developing financial market. This study bridges the gap in the literature by providing some additional empirical evidence about the BVF relationship. This evidence is provided by performing a comparative and comprehensive analysis of the firms in developing and developed financial markets. Based on a sophisticated data set for the selected markets, two separate models are run and their results are compared. The results for this study suggest that in the developing market a bigger board improves the value of a firm, supporting the relevance of stewardship theory. On the contrary, in the developed market a smaller board improves shareholders’ value, supporting the agency theory. The study has reflected the differences in the efficiency of institutional framework and the sophistication of financial development in a selection of countries, in the results on the BVF relationship. Furthermore, these results make the applicability of different business theories explaining market operations in these markets different from each other. The results are innovative and valuable to academics, analysts and industry professionals in both developing and developed financial markets.
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Basu, Debarati, and Deepak Chawla. "An Empirical Test of the Arbitrage Pricing Theory—The Case of Indian Stock Market." Global Business Review 13, no. 3 (October 2012): 421–32. http://dx.doi.org/10.1177/097215091201300305.
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With increasing doubt about the validity of the one-factor Capital Asset Pricing Model in pricing financial assets, development of newer models or extensions has become the order of the day. This paper applies one of these developments—the multi-factor Arbitrage Pricing Theory (APT) to explore the relationship between portfolio returns and selected macroeconomic variables. While the chosen model has been extensively tested in developed markets, few such attempts have been made in emerging capital markets. Thus, the purpose of this study is to test the validity of the APT model in India, which has, over the years, gained immense importance in the investors’ minds, the world over. Moreover, the surge in volatility and growth in the Indian capital markets over the past five years makes it an interesting market to study given the rising significance of the risk-return trade-off in such a market. The paper examines ten portfolios, covering 50 stocks, over a five-year period from 1 January 2003 to 1 February 2008 to verify the efficiency and efficacy of the model and finds that APT is a suitable descriptor of asset prices in the Indian context. To overcome the problem of multicollinearity among the macroeconomic explanatory variables, a factor analysis was carried out that resulted in two factors namely the inflation factor and the market index. The excess portfolio returns were regressed on these factors. The regression results display accurate relationships that are significant for each of the 10 portfolios and moderate to high explanatory power. Thus, it concludes that APT is a good fit in India over the chosen sample period.
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Weyl, E. Glen. "Price Theory." Journal of Economic Literature 57, no. 2 (June 1, 2019): 329–84. http://dx.doi.org/10.1257/jel.20171321.
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I argue that there exists a coherent and relevant tradition in economic thought that I label “price theory.” I define it as neoclassical microeconomic analysis that reduces rich and often incompletely specified models into “prices” (approximately) sufficient to characterize solutions to simple allocative problems. I illustrate this definition by highlighting distinctively price theoretic approaches to prominent research practices (diagrams and problems sets) and substantive research topics (e.g. selection markets and media slant). I trace the origins of price theory from the early nineteenth century through its segregation into the Chicago School in the last quarter of the twentieth. I argue that price theory plays a valuable complementary role to two traditions, “reductionism” and “empiricism,” with which I contrast it and show how this contribution of price theory has fueled a resurgence in this style of research in fields ranging from market design to international trade. Approximations critical to price theory are less formally developed than tools used in other methodological traditions, suggesting a research agenda to clarify the accuracy and range of validity of these methods.(JEL B13, B21, B41, D00, D47, F10)
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Elmghaamez, Ibrahim Khalifa, Ali Meftah Gerged, and Collins G. Ntim. "Financial market consequences of early adoption of international standards on auditing: international evidence." Managerial Auditing Journal 35, no. 6 (July 2, 2020): 819–58. http://dx.doi.org/10.1108/maj-04-2019-2233.
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Purpose This paper aims to investigate the effects of the early adoption of International Standards on Auditing (ISAs) on Financial Market Indicators (FMIs) from a diffusion of innovation (DOI) theory perspective. Design/methodology/approach Using panel data from 110 countries in a period that spans from 1995 to 2014, this study applies an ordinary least squares regression model to investigate the financial consequences of adopting ISAs. This analysis was supplemented with estimating a fixed-effects and two-stage least squares regression models to address any concerns regarding the possible existence of endogeneity problems. Findings This study reports three key findings. First, the authors find that early ISAs adoption has a negative effect on several financial market consequences, namely stock market integration, market capitalisation, market turnover, market return, market development, stock price volatility and stock trading volume. Second, using an alternative measure to the one that is proposed by DOI theory, the authors found that some financial indicators have been significantly improved after ISAs adoption, but only for listed firms that prepared their financial statements under International Financial Reporting Standards and audited by ISAs simultaneously. Finally, the financialindicators of European stock markets, however, have insignificantly shrank post the mandatory adoption of ISAs in 2006. Practical implications The empirical evidence raises questions about how ISAs were enforced and implemented. For example, countries that adopted ISAs at early stages may have been dominated mostly by recently established stock exchanges. This implies a crucial need to determine and apply the best type of auditing regime that can increase investors trust and enhance the credibility of stock markets information, which might ultimately advance the FMIs over time significantly. Originality/value To-date, studies investigating the impact of the adoption of ISAs on FMI from a DOI theory perspective are virtually non-existent. The study, therefore, seeks to contribute to the extant literature by examining the influence of ISAs adoption on a wide range of FMIs.
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Cho, Man. "International Real Estate Review." International Real Estate Review 12, no. 3 (December 31, 2009): 295–324. http://dx.doi.org/10.53383/100116.
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The purpose of this study is two-fold: first, to explain the demise of subprime and Alt-A mortgage markets in the U.S. from the viewpoint of measuring and managing mortgage credit risk; and secondly, to discuss several policy lessons that can be learned from the market meltdown. To that end, three tiers of mortgage credit models are elaborated, including the scoring (or risk rank-ordering), risk-based pricing, and ¡§sizing¡¨ (or the analytics used in determining subordination levels of credit- sensitive mortgage backed security (MBS) deals) models. Using these as conceptual underpinning, empirical evidence is surveyed to document key contributing factors to the market demise. Those that are identified include the non-availability of reliable mortgage performance data, lack of theory as well as industry best-practices in performing simulation-based mortgage risk assessments, complex and arcane structures of mortgage backed securities, and information asymmetry among the parties involved in the security transactions. The overall conclusion derived is that the participants to these market segments surpass their risk management capabilities in globalizing funding for subprime and Alt-A mortgages. The policy lessons emphasized are the importance of the infrastructure of proper risk assessment and risk-based pricing, as well as prudent and transparent MBS products along with periodic information disclosure.
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Berger, Ron. "Mastering the Art of Jugaad and Guanxi." International Journal of Asian Business and Information Management 5, no. 4 (October 2014): 14–22. http://dx.doi.org/10.4018/ijabim.2014100102.
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Purpose: Successfully entering foreign markets is a major issue in the field of international business. Cultural ignorance increases uncertainty that hinders a firm's international performance. Research has shown that the impact of cultural differences is one of the biggest obstacles to entering the Chinese and Indian markets, which are seen as one of the more important and growing markets in the last decade. This paper builds a framework for analyzing and choosing effective business strategies across the divide between very different business systems and cultures. It assists western firms in how to enter these complex markets and increase the probability of success. Design/methodology/approach: the proposed conceptual model hinges on social networking theory. Three different strategies are presented based on the different cultural, political and historical settings of China and India. Findings: the paper builds a framework for India and China structured around three core attributes to building social networks. It shows what international firms need to do in-order to build social networks that allow access to the local markets and decrease business risks. Practical implications: the proposed conceptual models enable marketers to cope even with the most complex markets and improve their probability for success. Originality/value: the literature review demonstrates that researchers have not dealt in-depth with the social constructs of social networks, especially in India. The paper depicts the commonality and differences between the two countries and serves as a basic business model when penetrating these markets.
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diZerega, Gus. "Toward a Hayekian Theory of Commodification and Systemic Contradiction: Citizens, Consumers, and the Media." Review of Politics 66, no. 3 (2004): 445–68. http://dx.doi.org/10.1017/s0034670500038869.
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F. A. Hayek's theory of spontaneous order applies to more than the market. One implication is that different systems of rules generating different spontaneous orders are biased in favor of different values. Markets serve the values of consumers; democracies serve the values of citizens. No spontaneous order perfectly reflects human values because they simplify the context of choice in favor of core systemic values. This insight enables us to distinguish between systemic and individual resources, and tensions between them. It also enables us to develop models of systemic conflict. Of particular interest are interactions between democracies and markets whose rules reflect different values but influence one another. The increasing commodification of the press shifts this institution from reflecting both democratic and economic values more and more to purely economic values, undermining its capacity to serve citizens. Examples illustrating this argument are explored.
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Inkinen, Henri, Aino Kianto, Mika Vanhala, and Paavo Ritala. "Structure of intellectual capital – an international comparison." Accounting, Auditing & Accountability Journal 30, no. 5 (June 19, 2017): 1160–83. http://dx.doi.org/10.1108/aaaj-11-2015-2291.
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Purpose Academics and practitioners around the world have shown interest in what constitutes the relevant intellectual capital (IC) in firms. However, studies have largely neglected to examine whether IC has identical or different structural elements in various parts of the world. The purpose of this paper is to suggest that country-specific institutional structures may impact the perception of IC, and empirically analyse whether differences exist between five countries drawing on the institutional theory. Design/methodology/approach This study tests for the differences in the underlying categorizations of IC in a sample consisting of 708 firms across five countries. Confirmatory factor analysis and comparison of different possible IC models are conducted to empirically examine the IC structure. Findings The results demonstrate that IC has predominantly the same underlying elements across the examined countries. However, trust capital in Finland and renewal capital in Serbia are structurally different compared to other countries. Research limitations/implications Institutional theory and multinational corporate superculture can explain the similarity in the IC structures across countries. Specifically, globalized markets carry institutionalized rules, norms, and expectations for the participating firms; under the influence of this superculture, the firms begin to assimilate. Conversely, the differences suggest that some country- and culture-specific differences remain even during the transition to global markets. Originality/value This study is among the first to question the assumption that IC has identical structural elements across the world, and merges theories of IC and institutions to explain the possible origins of these differences.
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Stegemann, Klaus. "Policy rivalry among industrial states: what can we learn from models of strategic trade policy?" International Organization 43, no. 1 (1989): 73–100. http://dx.doi.org/10.1017/s0020818300004562.
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The economic theory of international trade has changed dramatically over the last decade by admitting into its mainstream a body of literature that focuses on the implications of monopolistic and oligopolistic elements in international markets. By applying the tools of the “new” industrial organization in an international context, two new classes of models have emerged: models of intra-industry trade and models of strategic trade policy. The policy implications of models of strategic trade policy were quite disturbing for the economics profession, since these models demonstrated that the classical harmony between national and cosmopolitan welfare maximization does not exist if one assumes opportunities for strategic manipulation of oligopolistic international industries. This article reviews two prominent models of strategic trade policy—the Brander-Spencer model and the Krugman model—and relates them to more familiar earlier concepts, such as Stackelberg's asymmetrical duopoly solution and the venerable infant-industry argument for government intervention. The primary purpose of this article, however, is to provide a synopsis of the large literature addressing the question of whether models of strategic trade policy can give guidance for government policy.
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Van Bockhaven, Wouter MG, Paul Matthyssens, and Koen Vandenbempt. "Drivers of institutional innovation in networks: unleashing the innovation potential of domesticated markets." Journal of Business & Industrial Marketing 30, no. 3/4 (May 1, 2015): 414–35. http://dx.doi.org/10.1108/jbim-10-2013-0220.
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Purpose – This paper aims to apply innovation networks (INs) theory to the context of domesticated markets, where innovation triggers deinstitutionalization. In such contexts, the success of INs depends on their capacity to transform the business field in which they are embedded, so that it accommodates innovative business models. Such “institutional INs” beget a meso-level finality, and this poses different requirement on their effectiveness. The purpose of this paper is to confront extant models of collaborative innovation in networks with this specific context to offer exploratory insights into how innovation can be achieved in domesticated contexts and what the differential implications are for network configurations and strategic “reinstitutionalization” practices. Design/methodology/approach – Based on an illustrative embedded case study in the Dutch steel industry, a framework offering indications on the effectiveness of discrete configurational dimensions and their fit with reinstitutionalization practices for institutional INs is suggested. The case builds on 26 semi-structured interviews and 4 focus groups with top managers in the industry. As the aim is to extend theoretical models of INs to this under-researched context, an abductive approach to theorizing, consistent with the extended case method, is adopted. Findings – Findings suggest that collaborating to redesign an institutionalized business field collectively implies a more explicit attention to interdependencies within the business field. Practical implications – Besides suggesting modifications to extant frames regarding heterogeneity in and the configuration of networks, this paper has some practical implications. The framework proposed offers managers some support in the largely ignored issue of developing a collective action network. With these findings, we aspire to stimulate further research into this relevant, yet underdeveloped, topic. Originality/value – The study extends IN theory toward innovation realization in domesticated contexts. In such contexts, IN’s success depends on their capacity to transform the business field in which they are embedded, so that it enables innovative ways of creating end-customer value. Besides suggesting a new area for theorizing about innovation networks, institutional innovation networks are also a useful template for institutional innovation and collective action research. The paper offers a framework to support managers in the largely ignored challenge of developing a collective action network. In an increasingly transparent, connected and consolidated business environment, such a challenge becomes ever more essential.
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Aagerup, Ulf, and Edson Roberto Scharf. "Obese models’ effect on fashion brand attractiveness." Journal of Fashion Marketing and Management: An International Journal 22, no. 4 (September 10, 2018): 557–70. http://dx.doi.org/10.1108/jfmm-07-2017-0065.
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Purpose The purpose of this paper is to investigate the effect of obese models vs normal weight models on fashion brands’ attractiveness. Design/methodology/approach An experiment was carried out in which 1,225 university students in Sweden and Brazil rated the attractiveness of a fashion brand worn by a normal weight model and an obese model. Findings The overall effect of obese models’ effect on fashion brand attractiveness was insignificant. Furthermore, neither culture nor the consumer’s own weight had a significant effect. There was, however, a significant effect of the participant’s own gender; women rate fashion brands worn by obese models significantly higher on attractiveness than they did fashion brands worn by normal weight models. Men displayed the inverse response. Research limitations/implications The effect of the model’s ethnicity was beyond the scope of the experiment, and the brand attractiveness scale captured only one aspect of brand character, leaving other potential brand effects for future studies. Practical implications Companies can use obese models with no overall brand attractiveness penalty across markets and for marketing to women of all sizes. Given men’s negative reactions, such models might however be unsuitable for the male-to-female gift market. Social implications The results support the use of obese models, which can lead to greater representation of larger women in the media, and consequently, reduced fat stigma. Originality/value The study validates the theory of user imagery, and it extends the theory by examining how different target consumers react to user imagery traits and thus provides evidence for gender bias toward obese models.
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Ladd, Ted. "Business models at the bottom of the pyramid." International Journal of Entrepreneurship and Innovation 18, no. 1 (January 11, 2017): 57–64. http://dx.doi.org/10.1177/1465750316686242.
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Social enterprises serve distributed electricity to the bottom of the world’s economic pyramid (BoP), where 4 billion people live on less than US$2 per day and 1.6 billion lack access to electricity. Current mainstream theories of business models do not fully explain the logic by which these ventures create and capture value. Through interviews with 30 practicing entrepreneurs selling distributed electricity directly to rural BoP consumers, we employ grounded theory to derive a new framework of business models for the BoP that embeds the venture’s offering into the context of the marketplace, including the consumer’s social network, daily habits, mental models, and product constellations. This framework also incorporates affordability and the influences of government regulation. With further research, several of the concepts proposed in this framework might also apply to business models in other BoP sectors and in developed, mature, competitive markets.
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Ledesma-Chaves, Pablo, Jorge Arenas-Gaitán, and Rosario Garcia-Cruz. "International expansion: mediation of dynamic capabilities." Marketing Intelligence & Planning 38, no. 5 (March 1, 2020): 637–52. http://dx.doi.org/10.1108/mip-05-2019-0269.
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PurposeTaking into account the resource-based view and the dynamic capabilities theory, the main aim of this research is to analyse how the intensification of the internationalisation process entails a solution for the problems generated by an economic crisis in the national market. To do so, we establish two specific goals. The first is to find out the mediator value of the dynamic marketing capability in the relation between the strategy of increasing markets and performance. The second is to determine if there exist differences in this relation between firms of incremental internationalisation and firms of early internationalisation, called international new ventures (INV).Design/methodology/approachThe study provides information on these problems via testing hypotheses of a conceptual model, which uses a sample of 145 Spanish export firms. The data analysis employs a structural equation modelling (SEM) through partial least squares (PLS) as a statistical instrument.FindingsThe results lead to two main conclusions: (1) in times of economic crisis, the dynamic marketing capability plays a mediator role between the increase of the number of international markets served and the international and national results; (2) the dynamic marketing capabilities bring about learning effects in the internationalisation process, which affect incremental firms and INV differently.Originality/valueThis work explores, in times of crisis, how internationalisation becomes a way out for firms to increase the levels of demand and improve their general performance. Furthermore, it also analyses the mediator role of the dynamic marketing capability in the relation between the increase of the level of internationalisation and the firm performance. In this relation, it establishes that there are significant differences in the results obtained between incremental internationalisation firms and INV, determining the notable strategic differences between the two management models when facing periods of economic recession.
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OLCZYK, Magdalena. "BIBLIOMETRIC APPROACH TO TRACKING THE CONCEPT OF INTERNATIONAL COMPETITIVENESS." Journal of Business Economics and Management 17, no. 6 (December 21, 2016): 945–59. http://dx.doi.org/10.3846/16111699.2016.1236035.
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The main aim of paper is to identify the growth pattern in the international competitiveness literature, its core publications and key research domains on the basis of bibliometric data from the years 1945–2015. Citation data is collected from the ISI Web of Science Website, Scopus and Google Scholar, and analysed using HistCite, Pajek and VOSviewer software. Bibliometric indicators, network citation, key-route path methods and term co-occurrence methods are used. The results show that the theory of international competitiveness starts not from neoclassical theories of international trade, but from models of competition, even though competitiveness is mostly measured using trade/export performance. Krugman’s work on imperfect competitive markets and increasing returns of scale plays a most important role in knowledge diffusion on international competitiveness. The scientific development of analyzed concept is connected with six topics: trade performance, technology, liberalization, environmental regulations, location and productivity. These results give us a background for conducting practical analyses of international competitiveness, especially ones using synthetic indices.
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Rozanova, N. "Network Competition as Determinant of Contemporary Markets’ Configuration." World Economy and International Relations 60, no. 4 (2016): 13–20. http://dx.doi.org/10.20542/0131-2227-2016-60-4-13-20.
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The latest phenomena in the area of industrial economics have turned out to be beyond the traditional models of industrial organization theory. This theory deals with the four basic market structures, namely that of free competition, monopolistic competition, oligopoly and monopoly, with a common evolutionary pattern from competition to monopoly. However, contemporary technological competition has engendered a brand-new type of market structure. Some key features of it are outlined in the article with the stress on contemporary trends in network market development that have arisen under the influence of digitalization. The traditional approach to network market is through escalation effect, when network spillovers exist either in technology or in demand, and companies or IT platforms should gain a benchmark mass of clients, as fast as possible, in order to have the whole market. All other consumers have tendency to buy the leader’s product; thus, the market becomes a natural monopoly of the leader (at least, natural oligopoly). With the advancement in ICT technology, especially with digitalization, a new configuration of network market structure is being developed. Niche players are gaining their positions. It is arisen a multiple offer of ICT products. Market is becoming more and more fragmented. Network products evolve from substitutes into complements. The market drives from natural monopoly (oligopoly) into a very competitive structure. The author examines the mechanisms and results of network market transformation in contemporary digital era. Unlike the previous period when network services were provided separately, the newest tendencies, starting from TV, demonstrate that the frontiers among network markets become blurred, the separation between markets and particular ICT products vanishes/ So far, the formerly independent network markets are being transformed into shapeless segments of a single and indivisible multimedia area. In this integrated area any ICT provider obtains an opportunity to successfully compete with any other. The differences between various electronic devices, between ICT, broadcasting and address services, and even non-ICT products disappear. Network market evolves from a very concentrated and monopolized structure into a fragmented competitive industry with tough price competition. This brand new structure could be titled as concentric (ring) market, or a center-periphery model. The relationships within it mean unknown possibilities and challenges both for market participants and governments.
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Ilie, Camelia, Gaston Fornes, Guillermo Cardoza, and Juan Carlos Mondragón Quintana. "Development of Business Schools in Emerging Markets: Learning through Adoption and Adaptation." Sustainability 12, no. 20 (October 14, 2020): 8448. http://dx.doi.org/10.3390/su12208448.
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The purpose of this study is to contribute to the understanding of the critical resources and capabilities that business schools (BS) have developed to achieve sustainable development. Framed within the resource-based theory, it analyzes seven of the top 50 BS from emerging markets (EM). It argues that these schools have grown through a development process of adopting and adapting business models, including teaching and research methodologies, organizational structures, and business practices; when they consolidated their local leadership, they started to follow a more idiosyncratic process. The findings shed light on the challenges that schools from EM face to deliver local impact while being measured by international standards and have implications for theory development, practice, and policymaking. In terms of theory, the findings show how the Global North model has exerted a determining influence in the development path of BS in EM, and, subsequently, how the pressure to respond to domestic demands has guided the acquisition of resources and the development of capabilities. For practice, the study reveals development patterns, clues about the challenges these BS face, and the range of solutions they have implemented. For policymaking, the case studies offer valuable lessons on how governments can design support systems for BS development.
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Crick, James M., and Dave Crick. "Coopetition and international entrepreneurship: the influence of a competitor orientation." International Journal of Entrepreneurial Behavior & Research 28, no. 3 (January 14, 2022): 801–28. http://dx.doi.org/10.1108/ijebr-06-2021-0519.
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PurposeGuided by a relational, stakeholder perspective of resource-based theory, the purpose of the current investigation is to help unpack the complexity of the performance-enhancing nature of coopetition for international entrepreneurs, namely the interplay between collaboration and competition. The context features under-resourced wine producers owned and managed by entrepreneurs that have implemented an internationalised business model. The focus of the study involves the influence of a “competitor orientation”, namely when decision-makers understand the short-term strengths, weaknesses, long-term capabilities and strategies of key current and potential rivals.Design/methodology/approachData collection primarily featured semi-structured interviews with owner-managers of wine-producing firms in New Zealand that reflected heterogeneity amongst international entrepreneurs' strategies targeting different product markets within their respective business models. Secondary data were also collected where possible. Specifically, interviewees' firms exhibited different portfolios involving wine sales (with varying export intensities) together with augmented sales of tourism-related products/services focussed on the domestic market.FindingsCoopetition activities amongst international entrepreneurs varied; i.e. influenced by respective owner-managers' competitor orientations. Illustrations of different decision-makers' business models within a 2 × 2 matrix feature those with a low- or high-export intensity, together with a narrow or augmented product portfolio. Internationalising entrepreneurs' perceptions varied regarding the extent to which their respective business model was oriented towards local cluster-based domestic tourism with limited export sales, as opposed to those with national and more importantly international wine sales. Possessing and acting upon relevant knowledge manifested in which competitors international entrepreneurs collaborated with and the extent to which this took place across product-market strategies. In turn, this enabled particular decision-makers to exhibit flexibility; hence, entrepreneurs enter and exit certain markets together with changing export intensities, as varying opportunities were identified and exploited.Originality/valueAlthough the performance-enhancing nature of coopetition is largely established in prior literature, the complexity of that relationship remains relatively under-researched, not least, amongst international entrepreneurs. More specifically, the extent to which decision-makers that are engaged in coopetition exhibit a competitor orientation remains under-researched. Unique insights feature a 2 × 2 matrix in order to provide originality regarding international entrepreneurs' respective product-market strategies within their business models that are underpinned by varying coopetition relationships and competitor orientations.
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Lesser, Kathrin, Felix Rößle, and Christian Walkshäusl. "International socially responsible funds: financial performance and managerial skills during crisis and non-crisis markets." Problems and Perspectives in Management 14, no. 3 (September 27, 2016): 461–72. http://dx.doi.org/10.21511/ppm.14(3-2).2016.02.
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Nofsinger and Varma (2014) provide evidence that U.S. socially responsible funds outperform conventional funds during periods of market turmoil and, therefore, grant some crisis insurance. To investigate whether the U.S.-based evidence can be transferred to international markets, the authors analyze a comprehensive sample of internationally-investing socially responsible equity funds in a period from 2000 to 2012. As abnormal returns are model-specific, the authors apply standard and q-theory based performance measurement models. At first glance, the authors observe no crisis protection for internationally-investing socially responsible funds. However, splitting their sample in funds domiciled in North America, Europe, and Asia-Pacific to account for biases due to the origin of a fund, the authors find that socially responsible funds from North America outperform their peers in crisis periods irrespective of the applied performance evaluation model. The authors suggest that the U.S.-based evidence is restricted to internationally-investing funds domiciled in North America, and discover that this outperformance seems to be owed to the stock-picking abilities of North American fund managers and their advantage due to the nature of the North American market. Keywords: socially responsible investments, mutual funds, international markets, performance evaluation, managerial abilities. JEL Classification: G11, G12, G15, G23, M14
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Djakovic, Vladimir Djuro, Goran B. Andjelic, and Aleksandar D. Petkovic. "Investment Environment Problems Analysis and Evaluation: An Ex Post Empirical Analysis and Performance Implications." Engineering Economics 30, no. 4 (October 30, 2019): 422–33. http://dx.doi.org/10.5755/j01.ee.30.4.20838.
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The research subject is the investment environment problems analysis and evaluation of the developing countries, namely, the Republic of Serbia, Croatia, Slovenia, and Hungary. The analysis was carried out by testing and implementation of the Value-at-Risk models, i.e, the historical simulation (HS VaR), the delta-normal VaR (D VaR) and the extreme value theory model (EVT), with the confidence level of 95% for 100, 200 and 300 days, in the period from 2012 to 2016. The basic hypothesis of the research is that there is a relation between the successful application of the historical simulation (HS VaR), the delta-normal VaR (D VaR) and the extreme value theory model (EVT) and the conditions and opportunities of the investment environment of the developing countries. The research results provide a concrete knowledge of the conditions and circumstances of the investment environment in the observed markets, with a simultaneous performance assessment of the tested VaR models.
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Nsibande, Mduduzi, and Douw Gert Brand Boshoff. "An investigation into the investment decision-making practices of South African institutional investors." Property Management 35, no. 1 (February 20, 2017): 67–88. http://dx.doi.org/10.1108/pm-09-2015-0050.
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Purpose The South African listed property market has changed its legal basis from property loan stock companies and property unit trusts to adopt the more familiar international structure, real estate investment trusts. The main distinction is how shareholding is structured and investment returns are paid out to shareholders, which results in a different tax treatment. It is hoped that this change would attract more foreign investment, but it is questionable if this is sufficient to convince global investors who, amidst a seeming worsening of the stability in the political and economic environment, would probably need more insight into aspects such as investment decision making within these South African organisations. The paper aims to discuss these issues. Design/methodology/approach Using a balanced scorecard (BSC) framework, this study investigates the relevance of investment decision-making frameworks in South Africa. A survey using a sample of institutional investors that are included in the South African Property Market Index was conducted. Findings The study found similarities in decision-making priorities of South African institutional investors to those of previous studies. With the focus on retail property, tenant mix and secondary to that, quality of the centre management team is found to be important for forecasting expected returns in a retail investment decision environment. Diversification strategies were found to have similar results to previous studies, leaning more towards geographic location than economic location. Further, the study suggested the use of a BSC framework, linking the financial information and different financial ratios to nonfinancial aspects that need specific consideration in a retail investment environment. Research limitations/implications Retail property is considered to be of particular concern due to the business enterprise value that could be created if superior management techniques are applied. The investment decision stage concerned with forecasting expected returns relies on financial and quantitative models such as those derived from Modern Portfolio Theory. In a shopping mall environment, however, future performance is driven by nonfinancial factors, for example, tenant mix and superior customer experience. Therefore, forecasting expected returns in a retail environment requires a nuanced approach relative to other commercial property sectors. Originality/value The paper is considered to be original in its analysis of the retail real estate market in South Africa. This offers new insight into retail properties specifically, but also how investors in South Africa react to decision-making practices. This adds value in the internationalisation of the property market and the consistency and transparent practices applied globally.
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Lang, A. Scheffer, Paul O. Roberts, and John P. Sammon. "Car Scheduling: What’s the Point?" Transportation Research Record: Journal of the Transportation Research Board 1707, no. 1 (January 2000): 3–12. http://dx.doi.org/10.3141/1707-01.
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During the past 35 years, the major railroad companies and the Association of American Railroads all have invested heavily in the development of computerized car-for-car scheduling systems designed to help keep carload rail traffic moving on schedule. Unfortunately, these systems have not worked as intended, because railroad operations do not really lend themselves to handling cars on an individual basis out in the field. The experience at Consolidated Rail Corporation (Conrail) has borne that out. Beyond that, rail markets have shifted steadily to the large, annual use-rate customers that move heavy carload shipments, and those heavy carload markets are less sensitive to transit-time unreliability than the small carload markets that were more typical in the early postwar era. Shipper cost models developed at Transmode and Science Applications International Corporation have been used to analyze the traffic moving in a number of typical carload markets on Conrail during 1998. That analysis shows why unreliable service, if planned for by shippers and receivers, will not unduly increase “nontransport logistics costs.” Thus, it can be concluded from both experience and theory that the railroads should give up trying to use car scheduling to control carload service quality in real time. They should concentrate, instead, on improving car cycle times and reconfiguring shipper supply chains to take advantage of the lower costs associated with large carload shipments.
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Massey, Douglas S., Joaquin Arango, Graeme Hugo, Ali Kouaouci, Adela Pellegrino, and J. Edward Taylor. "Uluslararası göç kuramlarının bir değerlendirmesi." Göç Dergisi 1, no. 1 (July 1, 2014): 11–46. http://dx.doi.org/10.33182/gd.v1i1.546.
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Gelişmiş ülkeler bugün, uluslararası göçün etkisiyle çeşitli ve çok kavimli bir yapıya ulaştılar. Uluslararası göçü açıklayan tek ve kapsamlı kuramsal açıklama henüz mevcut değil. Bu tartışmanın amacı çeşitli modellerin temel varsayımlarını ve hipotezlerini netleştirmek ve bütüncül bir biçimde sunabilmekti. Kuramlar göçün başlangıcı ve daha sonra uluslararası yaygınlaşmasını açıklamaya çalışanlar olarak ayrışmışlardı. Başlangıç kuramları arasında şunlar vardır: 1) yeni klasik ekonominin makro kuramı; 2) yeni klasik ekonominin mikro kuramları; 3) hasat sigorta piyasalarına, vadeli işlem piyasalarına, işsizlik sigortasına ve sermaye piyasalarına atıfta bulunan yeni ekonomi kuramı; 4) çifte pazar kuramı ve yapısal enflasyon, motivasyon sorunları, ekonomik dualizm ve emek arzının demografisi; ve 5) dünya sistemleri kuramı ve toprak, ham madde, emek, maddi bağlar, ideolojik bağlar ve küresel şehirler. Yaygınlaşma kuramları ise azalan risk ve maliyetlere vurgu yapan ağlar kuramı; kurumsal kuram; gelir ve toprak dağıtımı, tarımsal üretimin örgütlenmesi, göç kültürü, beşeri sermayenin bölgesel dağılımı, ve toplumsal adlandırma faktörleri üzerinden tartışılan biriken- kümülatif nedensellik; ve göç sistemleri kuramını kapsar. Bu kuramların varsayım ve önermeleri farklı olsa da esas olarak birbiriyle çelişmezler ancak çok farklı siyasetlerin oluşmasına yol açmışlardır. Önümüzdeki on yıllarda verilecek siyasi kararlar çok önemli olacak ve yanlış anlamalara ve çatışmalara yol açma potansiyeli taşımaktadırlar. Bu modellere dayanarak göç edilen ülkelerdeki ücret ve istihdam şartlarının düzenlenmesine yönelebilen siyasetler oluşturulabilir veya köken ülkelerde pazar ekonomisinin yapısal değişimini öngören kalkınmayı teşvik edici siyasetlere yol açılabilir. ENGLISH TITLETheories of International Migration: A Review and AppraisalENGLISH ABSTRACTThe configuration of developed countries has become today diverse and multiethnic, due to international migration. A single, coherent theoretical explanation for international migration is lacking. The aim of this discussion was the generation and integration of current theories that clarify basic assumptions and hypotheses of the various models. Theories were differentiated as explaining the initiation of migration and the perpetuation of international movement. Initiation theories discussed were 1) macro theories of neoclassical economics; 2) micro theories of neoclassical economics; 3) the new economics, with examples for crop insurance markets, futures markets, unemployment insurance, and capital markets; 4) dual labor market theory and structural inflation, motivational problems, economic dualism, and the demography of labor supply; and 5) world systems theory and the impacts of land, raw materials, labor, material links, ideological links, and global cities. Perpetuation theories were indicated as network theories of declining risks and costs; institutional theory, cumulative causation through distribution of income and land, organization of agrarian production, culture of migration regional distribution of human capital, and social labeling factors; and migration systems theory. The assumptions and propositions of these theories, although divergent, were not inherently contradictory, but had very different implications for policy formulation. The policy decisions over the next decades will be very important and carry with them the potential for misunderstanding and conflict. Policy options based on the explicated models range from regulation by changing wages and employment conditions in destination countries or promoting development in countries of origin to changing structural market economic relations.
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Danko, Taras V. "Conceptual Foundations for the Development of International Business Theory in the Context of Increasing Global Technological Dynamism." PROBLEMS OF ECONOMY 4, no. 54 (2022): 210–13. http://dx.doi.org/10.32983/2222-0712-2022-4-201-213.
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The article aims at elaborating the conceptual foundations for the development of international business theory in the context of increasing global technological dynamism. The article examines the relationship between the increase in technological dynamism in the modern world and the problematic issues in the theory of international business regarding the fragility or terminability of specific advantages of countries and specific advantages of firms that underlie the very basis of the existence of multinational corporations, their business models and, accordingly, their sustainability. The author proposes a comprehensive solution to this qualitatively new problem of international business by addressing the general task of ensuring firm sustainability in the context of increasing technological dynamism in the industry and determining what are the specific advantages of those firms that demonstrate an appropriate level of sustainability and which can be successfully internationalized and continue to compete in world markets in the current environment, despite the disruption of the classical paradigm of international firms. The article explores the evolution of management theories of firm competitiveness in the context of increasing environmental dynamism, which has led to the emergence of dynamic strategic management based on the integration of the theory of dynamic capabilities and the institutional approach with the traditional insrtumentarium for developing and implementing corporate strategies. The substantiation of the conception of specific advantages of global innovation ecosystems in the theory of international business has been further developed. With the practical application of the proposed conceptual framework for the development of international business theory, taking into account the continuous increase in technological dynamism in the modern world is meant to introduce dynamic strategic management tools in the activities of international firms, including the development and implementation of strategies for their participation in global innovation ecosystems.
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Selmier, W. Travis, and W. Kindred Winecoff. "Re-conceptualizing the political economy of finance in the post-crisis era." Business and Politics 19, no. 2 (June 2017): 167–90. http://dx.doi.org/10.1017/bap.2017.12.
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AbstractThis article introduces a special issue ofBusiness and PoliticsonProperty Rights, Financial Risk, and the Politics of a Networked Global Financial System. We introduce aspects of the articles in the issue and situate them within existing literatures in financial economics, public policy, political economy, regulation and governance, and network science. We do this through examining four key contributions in the special issue. First, we show that common conceptualizations of property rights in financial markets ignore the multidimensional nature of financial goods; examples of all goods types can be found in modern finance, and this fact has important implications for the politics and regulation of these markets. Second, we argue that models of financial actors as independent, atomistic agents neglect the relational nature of financial markets, and argue that theory and methodology from network science, financial economics and political economy provide useful ways to analyze these interdependent systems. Third, we discuss how the relational nature of risk leads to hierarchical patterns of financial interdependence, which bequeaths substantial amounts of power—within both market and political systems—to those actors that occupy core positions within the structure of interdependence. Fourth, we integrate ideas from papers in this special issue and related literature with concepts from the Ostrom School of political economy to consider how monitoring, self-governance, and polycentric applications might improve financial market governance. This issue's papers thus constitute one of the first combined attempts to bring the Ostrom School into substantive conversation with financial market governance and risk analysis through comparative and international political economy disciplines.
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Plakandaras, Vasilios, Periklis Gogas, and Theophilos Papadimitriou. "The Effects of Geopolitical Uncertainty in Forecasting Financial Markets: A Machine Learning Approach." Algorithms 12, no. 1 (December 20, 2018): 1. http://dx.doi.org/10.3390/a12010001.
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An important ingredient in economic policy planning both in the public or the private sector is risk management. In economics and finance, risk manifests through many forms and it is subject to the sector that it entails (financial, fiscal, international, etc.). An under-investigated form is the risk stemming from geopolitical events, such as wars, political tensions, and conflicts. In contrast, the effects of terrorist acts have been thoroughly examined in the relevant literature. In this paper, we examine the potential ability of geopolitical risk of 14 emerging countries to forecast several assets: oil prices, exchange rates, national stock indices, and the price of gold. In doing so, we build forecasting models that are based on machine learning techniques and evaluate the associated out-of-sample forecasting error in various horizons from one to twenty-four months ahead. Our empirical findings suggest that geopolitical events in emerging countries are of little importance to the global economy, since their effect on the assets examined is mainly transitory and only of regional importance. In contrast, gold prices seem to be affected by fluctuation in geopolitical risk. This finding may be justified by the nature of investments in gold, in that they are typically used by economic agents to hedge risk.
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Koul, Saroj, Uma Kumar, Vinod Kumar, and Sahil Singla. "Internationalization: Case of an Emerging Home Decor Family Business." South Asian Journal of Business and Management Cases 9, no. 3 (November 7, 2020): 433–44. http://dx.doi.org/10.1177/2277977920958083.
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Komal International, India is a family-run enterprise [also called small and medium enterprises (SMEs) in India] catering to the home decor business. In its mission to become a ‘direct’ business partner (supplier) to several MNCs1, Komal International noticed specific challenges to become a ‘compliance-ready’2 export company. Consequently, the company embarked on identifying the relevant external and internal factors. The external factors were identified after assessing several MNCs that indirectly procured products manufactured by Komal International or were listed as their prospective buyers. This assessment and restructuring of its internal functioning allowed alignment with the needs of ‘compliance-ready’ export business. And in turn it provided the ability to survive in a competitive market. Purpose: This case study aims to identify challenges faced by the prospective family businesses (a supplier) to become a ‘compliance-ready’ supplier for the offshore MNCs (buyer) in the home decor market. The challenges were identified by conducting a structured questionnaire followed by a personal interview with existing and prospective buyers; further, modifications in the internal company policies lead to making a ‘compliance-ready’ supplier, useful in finding new export markets. Methodology: The approach was qualitative and included a series of in-person interviews3 with the management of the company over one year, assessing the concepts of family business internationalization as a theory, and from secondary published sources on home decor sector. As such, it was a case analysis to comprehend best practices in a family business to fulfil its vision. Basis of the Case: Phenomenon based. Type of the Case: Applied decisional. Protagonist: Present. Theory: The approach is to examine the relevance of ‘internationalization theory’ for a family business in India. Specifically, we shall, through a case study, investigate the business model adopted by an export ‘compliance-ready’ small family business to thrive in a competitive environment. Research Question: Komal International is a decade-old family business with a vision to provide home decor items globally. The protagonist, having examined the existing business model by considering the internationalization theory and the regulatory environment, has identified two specific challenges. The first is to understand the ‘compliance-ready’ strategy that in turn necessitates the internal policies to be streamlined for its business growth as a ‘direct’ exporter to MNCs. And the second is to meet an ambitious export prospect. The research question is attempted by using the internationalization theory and analysing its role as a supplier to MNCs and becoming ‘compliance-ready’ by modifying its internal company policies. Findings: The significant results suggested are the possible best practices that family businesses such as were embraced by Komal International that are aspirant to become a direct supplier to offshore MNCs may be considered for adopting. These include reworking many internal policies of the company considering (a) the internationalization theory, (b) opportunities from the revised regulatory environment established for Indian SMEs and (c) the opportunities in the global marketplace. By adopting changes within the company, the supplier side (for the buyers’ acceptance as a compliance-ready company) can be strengthened. The findings can be useful to entrepreneurs, specifically family businesses, keen on internationalization. It will be of value to researchers and other SMEs (this definition includes family-run business) in India and globally. The limitations of the study include defining quality parameters based on product specifications and small sample size in interviewing MNCs. The research experiment can be extended to include country-specific analysis, trade trends and cultural analysis.
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Overby, Jeffrey W. "The creation of a market – LP South America (A)." CASE Journal 17, no. 1 (April 20, 2021): 146–74. http://dx.doi.org/10.1108/tcj-04-2020-0040.
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Theoretical basis One of the major issues present in this case is whether there is significant industry pressure to internationalize. Yip’s (1989) global strategy drivers are a helpful approach for examining this issue. This case also applies two important marketing concepts – the product life cycle and diffusion of innovation theory – and how differences across international markets impact these concepts. Finally, there are significant cultural issues at play in this case as well. Theoretical models of national culture, such as Hofstede, Hall and others, can be used to examine cultural influences on an industry that is not often associated with culture. Research methodology The case is based upon a combination of secondary research and primary research. The lead researcher and a team of graduate students conducted interviews with Louisiana-Pacific Corporation (LP) executives in the USA and Chile in 2017. Case overview/synopsis This three-part case examines the internationalization of LP into South America. Case A begins in 1999 as LP attempts to decide whether to take its oriented strand board product international. The reader is asked to consider where LP should go in South America. Case B examines the factors LP used to decide to enter Chile and then outlines the key decisions that led to its impressive growth between 2000 and 2015. Case C begins in 2015 as LP now considers whether to expand its markets into Argentina or Colombia. Complexity academic level Given the complexity of issues raised in the case and the need to narrow these issues down to an implementable decision, this case is most appropriate later in the schedule of a graduate or executive-level business course in international business or international marketing.
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Czech, Katarzyna. "THE RISK PREMIUM IN THE FOREIGN EXCHANGE MARKET. THE APPLICATION OF ARCH-IN-MEAN MODEL." Metody Ilościowe w Badaniach Ekonomicznych 21, no. 2 (December 23, 2020): 71–79. http://dx.doi.org/10.22630/mibe.2020.21.2.7.
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Forward premium anomaly is one of the most popular puzzles in the theory of international finance. The phenomenon is explained by, among others, the existence of non-zero risk premium in the foreign exchange market. The paper applies ARCH-in-mean models to assess whether there exists a time-varying risk premium in the USD/PLN and AUD/JPY foreign exchange markets. The results indicate the existence of a non-zero risk premium in the analyzed markets. As far as the USD/PLN is concerned, the risk premium takes negative values when the risk measured by conditional variance rises. The results suggest that when there is a surge in risk, the US dollar’s appreciation and Polish zloty depreciation increases. The results confirm the US dollar as a safe-haven currency that tends to appreciate during high-volatility and crisis periods. Moreover, the study shows that the risk premium in the AUD/JPY market takes positive values when the risk measured by conditional variance rises. It implies that when there is a mount in risk, the appreciation of Japanese yen increases. Furthermore, research results reveal the positive and significant relationship between stock market uncertainty and exchange rates conditional volatility.
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Predojevic-Despic, Jelena. "Towards understanding international migration determinants today: Theoretical perspective." Stanovnistvo 48, no. 1 (2010): 25–48. http://dx.doi.org/10.2298/stnv1001025p.
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In times of global migration flows and ever increasing mobility of the workforce in the world, the necessity for constant deepening of theoretical knowledge is imposed as a basis for understanding main determinants of this phenomenon, and with an aim of directing the focus of migration researches towards more efficient overcoming of challenges and making use of the advantages which international migrations could bring both to origin, destination and transit countries. The main goal of this paper is to give a critical review on the development of the economic migrations theory, to state the main similarities and differences between various approaches and to point out to the main drawbacks and problems which the theoretical perspective is facing when studying the determinants of contemporary international labor migrations. The focus of the study refers to voluntary labor migrations with reference to migrations of the highly educated population, while the stress is on economic theories, although some of them are closely connected to sociological, geographical and anthropological theories. The development of the theory on international migrations has been started by micro theoretical models, namely, through the conceptualization of theories which place the individual in the focal point of research, who estimates the positive, namely negative sides of moving from one location to another. Economic models on the micro theoretical level cede more space to models of macro structure which research the social and economic structure within and between countries. There are many theoretical models which offer possible answers to the question on what are the main determinants of international migrations on the macro analytical level. Although every one of them tries to give an answer to the same question, they use different concepts, assumptions and frameworks of research. The reasons which bring about the initiation of international migrations can be significantly different from those which lead to their stabilization in time and space. Although differences in the income height, risks, employment possibilities, market expansion can all influence the continuation of spatial movement of population, new conditions which arise during migration begin to act as independent factors: development of migratory networks, institutionalized support to the development of trans-national activities, as well as changing the social context of work in countries of destination. Therefore, in the analysis of contemporary international migrations the necessity arises for a systematic approach, namely dynamic perspective of research - from recognition to a detailed insight in changeable trends and forms of contemporary migratory movements in the world. In addition, at the same time with the development of new markets, regional economies and technology centers, there has been a 'trans-national turnabout' in the last fifteen years or so in researching migrations, namely a significant development in the approach which stresses the relations which migrants maintain with their families, communities and cultures which are out of the country in which they migrated in. The final part of the paper calls for the requirement of the following: coordination of theoretical concepts with new social conditions, post-industrial world and global processes of transformations in which migrations have an important role; overcoming inadequate coordination and isolation in studying migrations within special scientific disciplines, as well as poor connections of certain aspects of migration study; research of the causes and consequences of migrations as an inseparable part of the general process of social development. .
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Kharchenkova, Svetlana. "Bringing Art Market Organizations to China: Cross-Border Isomorphism, Institutional Work and its Unintended Consequences." China Quarterly 240 (April 11, 2019): 1087–107. http://dx.doi.org/10.1017/s0305741019000389.
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AbstractThis study proposes a new explanation for institutional differences of organizations in China. It focuses on how two organizational forms dominant in contemporary art markets – commercial galleries and auction houses – were first established in China in the 1990s. Based on archival and interview data, it argues that the organizational forms were introduced to China due to mimetic isomorphism, and that their divergences from the foreign models are the result of unintended consequences of institutional work. It highlights the role of individual agency, including the role of foreign nationals, in organization-building in China. The findings also have implications for institutional theory: the article shows how the political, cultural and institutional context in China shaped institutional work that needed to be conducted and led to unintended consequences of institutional work.
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Kordalska, Aleksandra, and Magdalena Olczyk. "Impact Of The Manufacturing Sector On The Export Competitiveness Of European Countries – A Spatial Panel Analysis." Comparative Economic Research. Central and Eastern Europe 17, no. 4 (December 30, 2014): 105–20. http://dx.doi.org/10.2478/cer-2014-0035.
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The purpose of this paper is to determine how changes in the export competitiveness of the EU economy (measured by exports and net exports) depend on changes in the competitiveness of processing industries, on the basis of manufacturing data from 19 EU countries over years 1995-2009 and using a spatial panel data model. The determinants of export competitiveness are selected in the light of predictions from international trade theory, growth theory and the theory of innovation. In particular, the paper explores how the size of foreign demand, the value of domestic demand, the level of ULC in the sector, the degree of openness of the sector to foreign markets, labour productivity and intermediate consumption in a sector affect the export competitiveness of the European economies selected. The results from spatial data models lead to a conclusion about the statistical significance of spatial dependencies in export competitiveness modelling. The analysis indicates the different determinants of export competitiveness, both if it is measured by export value and if it measured by net exports. The authors hope that the results will be a voice in the discussion on enhancing the competitiveness of European industrial sectors
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Kumar, Umesh. "Macroeconomic Signals and Indian Real Estate Firms." International Journal of Economic Policy 3, no. 1 (January 16, 2023): 1–16. http://dx.doi.org/10.47941/ijecop.1181.
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Purpose: India's real estate sector has been growing in size and influenced the country's economic growth. This paper studies the link between listed real estate firms in India and macro-economic activities and growth. Therefore, it examines the effect of rural production, foreign inflows, capital market growths, and money flows on the activities of real estate firms listed in the Indian stock exchanges.
Methodology: The paper uses data of 65 listed real estate firms from 2001 to 2016. It uses a multivariate regression model to examine the relationship, and the effect of the rural economy, financial markets, international flows, and money flows on real estate firms. The regression models use firm-specific measures and different determinants of macroeconomic variables for the analysis.
Findings: The findings suggest that macroeconomic variables signal a potential increase in the real estate industry's performance. An increase in foreign direct investment leads to increasing real estate activities. Personal remittances bring more revenues for real estate firms but not the stock returns of these firms. Capital markets growth has limited influence on this sector. Money flows, notably savings, positively affect the real estate industry. However, the rural economy does not significantly affect real estate activities.
Unique Contribution to Theory, Policy and Practice: The study proposes that Indian real estate sector needs more transparent and regulatory structures to reap the benefits of the expected growth of the economy. Government should bring policies to capital market reform specifically towards real estate industry to generate interests among domestic and international investors in this sector.
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Silva, Marcos Soares da, and José Angelo Divino. "Estabilidade Financeira e Estrutura de Mercado: Evidências Internacionais." Brazilian Review of Finance 10, no. 1 (April 21, 2012): 7. http://dx.doi.org/10.12660/rbfin.v10n1.2012.3264.
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Although the economic theory recognizes the ambiguous relationship between market structure and stability of the bank sector, some models, such as the one of competition-fragility by Allen and Gale (2004), suggest that increasing competition leads financial institutions to take more risks. As a result, financial markets that are more concentrated also present higher financial stability. To assess this hypothesis, we estimate a dynamic panel data model for 41 countries in the period from 1987 to 2007. The econometric model included covariates for level of income, characteristics of the financial market, economic environment, and macro prudential regulation. We used the following databases: “A new database on financial development and structure” and “Bank regulation and supervision”, from the World Bank, and “Systemic banking crises: a new database”, from the International Monetary Fund. The results indicate that the greater the market concentration the higher the stability of the banking system.
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Mitra, Aditi, and Sanjaya Singh Gaur. "Does environmental concern drive Asian firms’ governance?" Journal of Asia Business Studies 14, no. 4 (January 2, 2020): 481–503. http://dx.doi.org/10.1108/jabs-06-2019-0189.
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Purpose The sustainability issues faced by Asian firms, such as environmental destruction and depletion of resources, require the existing corporate social responsibility (COSR) models to be carefully examined and re-conceptualized. Both researchers and practitioners have indicated how social equity and having a long-term business perspective are imperative to address environmental concerns alongside fulfilling the wealth maximization goals among firms. The purpose of this study is to contribute to the literature by examining the interrelationships between COSR parameters among firms, with social equity perspective. Design/methodology/approach The data for this study comes from the Thomson Reuters Asset4 Index. The baseline sample of this study included 1,690 firms listed between 2011 and 2017. For hypothesis testing, fixed-effect panel analysis on 10,140 firm-year observations over seven years from 2011 to 2017 was conducted. These data points were drawn from four Asian countries (Malaysia, Thailand, Singapore and Hong Kong). Findings This study indicates that developed stock exchange markets among Asian markets such as Singapore and Hong Kong are transitioning from a strong focus on environmental issues to a more social equity-based economy, which is driving higher governance performance. This indicates the significance of the social dimension inherent in sustainable development and goes beyond just the ethical dimensions among the firms and the economy at large. The study also presents the challenges of re-modeling existing COSR framework among firms in Asia which do not have a clear road map on how to achieve environmental performance to achieve higher levels of human well-being, as well as the ethical considerations of achieving the wealth maximization goal. Originality/value This paper is unique in nature because it attempts to re-conceptualize the COSR models that support governance initiatives from an Asian market perspective by improving upon environmental performance, which in turn addresses critical issues around depleting resources and reducing wastage in the production process. The re-conceptualization model used in this study is based on the social exchange theory developed by George Homans in 1958. Accordingly, this study links the circular flow of resource procurement as well as production to the circular flow of resource replenishment seen in the chosen emerging Asian markets.
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Kozák, Michal. "What Matters in a Job? A Multi-Level Study of Job Preference Orientations and the Intrinsic Quality of Work in 25 Societies." Societies 10, no. 3 (August 21, 2020): 62. http://dx.doi.org/10.3390/soc10030062.
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This paper examines cross-national differences in job preference orientations from the perspective of job quality. In particular, it investigates the extent to which preferences of workers in 25 developed societies are shaped by the intrinsic quality of jobs and its institutional determinants, as highlighted by varieties of capitalism (VoC) and power resources theory (PRT). The study uses multi-level models with country-specific random intercepts fitted to individual data from the International Social Survey Programme’s 2015 Work Orientations module, paired with institutional indicators from various sources. The results show that workers within countries tend to be oriented towards the same types of rewards that their jobs offer, with the intrinsic quality of work standing out as the most important factor of all. This logic extends to the cross-national variation in job preference orientations, which is strongly related to the average intrinsic quality of jobs in national labor markets and its institutional factors emphasized by PRT, rather than VoC.
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SALMANOV, Oleg N. "The influence of the degree of the Russian stock market integration on the cost of equity." Finance and Credit 27, no. 10 (October 29, 2021): 2172–96. http://dx.doi.org/10.24891/fc.27.10.2172.
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Subject. This paper examines how to determine the cost of equity for a developing economy, if the latter is segmented from the leading developed economy of the world. Objectives. The aim is to establish the importance of determining the cost of equity in the Russian economy, depending on the country of the developed market. Methods. All well-known international methods for determining the cost of equity, taking into account the country risk, are involved in the analysis. For calculations, I use yields of the world’s important market indices. Results. The study shows that the value of equity capital (subject to country risk), which is established under all international methods for the reference market of European developed countries, will be lower. Conclusions. CAPM models, used for developed markets, produce too low cost of capital, when they are applied as-is to developing countries. Therefore, for developing countries, models are used, which rest on the idea of adding a country risk premium to the risk premium, for the reference market of a developed country. This theory does not regulate the choice of a reference market from among developed countries. However, some studies found that the US market is not the most influential for the Russian market. The paper states that the choice of European developed countries provides a 16.8% reduction in the cost of equity, which, in turn, provides an increase in company value by a third.
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Klein, Jennifer. "Introduction: The Class Politics of Privatization: Global Perspectives on the Privatization of Public Workers, Land, and Services." International Labor and Working-Class History 71, no. 1 (2007): 1–7. http://dx.doi.org/10.1017/s0147547907000300.
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Surveying countries in all continents, a recent international report sponsored by The Club of Rome declared privatization to be “one of the defining features of our era.” Any major phenomenon of our time must have historical roots. The purpose of this volume is to address privatization as an issue of globalization, to give it a history apart from the totalizing notion of neoliberalism and the prescriptive models of economic theory. The consensus among social theorists and observers is that this global process of privatization is a result of neoliberalism, a practice and ideology whose central tenet is the primacy of markets. Certainly, the rhetoric and policies of neoliberalism have been spreading rapidly throughout the globe, but the blanket use of this concept has not enabled us to get inside the real social and political transformations that marked the last decades of the twentieth century. The writers in this volume introduce the particularities of social and labor histories and locate privatization in narratives of class politics and struggle. Bringing social and labor history into the analyses of privatization, at the same time, these essays put labor history, often monographically focused, into larger discussions of the state and capitalism. These essays make the class agenda of privatization explicit, viewing it not just as the “opening of markets,” but as clear assaults on the working classes and on the public claims that workers and citizens are able to make on the economy's resources and productivity.
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Alon, Ilan, and B. Elango. "Franchising and initial public offering: a signaling perspective." International Journal of Retail & Distribution Management 46, no. 11/12 (December 10, 2018): 1193–208. http://dx.doi.org/10.1108/ijrdm-10-2017-0240.
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Purpose The purpose of this paper is to examine the factors associated with franchisors going public using signaling theory. Listing on the stock market is a sign that the business concept has reached a threshold level of acceptance and success. To increase the relevance of this study to practitioners, the authors focus on franchising-specific controllable variables. Design/methodology/approach This study uses a sample of 2,134 franchisors from US drawn from a survey by Entrepreneur magazine during the years 2015–2016. Binominal logistic regression models are used for analysis of the data. Findings Findings indicate that time to franchise, international operations, franchise association affiliation, disclosure and extent of top management commitment are factors positively related to the likelihood of a franchisor being publicly listed. Research limitations/implications Study findings are based on a sample of franchisors from North America, where financial markets are well developed, and due caution should be exercised before generalizations are made to other contexts. A major implication of this study is that signaling theory may provide an important supplement to the already well-entrenched resource-scarcity and agency theoretic explanations in franchising research. Originality/value While signaling theory is growing in importance in the franchising literature, this study is the first to uncover the relationship between company signals and initial public offering.
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Svoboda, Milan, and Pavla Říhová. "STOCK PRICE PREDICTION USING MARKOV CHAINS ANALYSIS WITH VARYING STATE SPACE ON DATA FROM THE CZECH REPUBLIC." E+M Ekonomie a Management 24, no. 4 (December 2021): 142–55. http://dx.doi.org/10.15240/tul/001/2021-4-009.
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The article describes empirical research that deals with short-term stock price prediction. The aim of this study is to use this prediction to create successful business models. A business model that outperforms the stock market, represented by the Buy and Hold strategy, is considered to be successful. A stochastic model based on Markov chains analysis with varying state space is used for short-term stock price prediction. The varying state spate is defined based on multiples of the moving standard deviation. A total of 80 state space models were calculated for the moving standard deviation with 5-step lengths from 10 to 30 in combination with the standard deviation multiples from 0.5 to 2.0 with the step of 0.1. The efficiency of the business models was verified for 3 long-term, liquid stocks of the Czech stock market, namely the stocks of KB, CEZ, and O2 within a 14-year period – from the beginning of 2006 to the end of 2019. Business models perform best when they use a state space defined on the length of a moving standard deviation between 15 and 30 in combination with multiples of the standard deviation between 1.1 and 1.2. Business models based on these parameters outperform the passive Buy and Hold strategy. In fact, they outperform the Buy and Hold strategy for both the entire period under review and the yielded five-year periods (including transaction fees). The only exception is the five-year periods covering 2015 for O2 stocks. After the end of the uncertainty period caused by unclear intentions of the new majority stockholder, the stock price rose sharply. These results are in conflict with the efficient markets theory and suggest that in the period under review, the Czech stock market was not effective in any form.