Global Business and Economics Review (25 papers in press)
Investigating the relationship between CSR and financial performance based on corporate reputation: Evidence from Vietnamese enterprises
by Khoa Truong An Nguyen, Khuong Ngoc Mai, Minh Man Cao
Abstract: This study investigates the relationship between CSR practices and financial performance as mediated by corporate reputation in a developing context. A total of 869 respondent firms from the manufacturing, real estate, trade, and service sectors participated in the research. Factor analysis and structuring equation modeling were used to investigate the direct and indirect effects of the identified factors. The results showed CSR practices positively affect financial performance mediated by corporate reputation. However, CSR practices in the legal, environmental, and philanthropic area have positive effects, while economy-oriented CSR practices do not show any significant effect. As such, firms should invest more in CSR in legal, philanthropic, and environmental areas to improve corporate reputation, which in turn leads to good financial performance.
Keywords: corporate social responsibility; financial performance; reputation; managerial perception; business sectors.
Healthcare professionals attitudes concerning prioritization decisions: A quali-quantitative analysis in Angola
by Micaela Pinho, Ana Pinto Borges
Abstract: Bedside rationing decisions are a necessary evil in the context of resource scarcity. The ethical values inherent in decisions about who to treat make interprofessional collaboration between health professionals essential. We evaluate and compare the attitudes of Angolan physicians and nurses towards patients prioritization decisions and the rationing principles supported. Faced with rationing scenarios comprising four patients respondents should: (i) select the only patient to treat, explaining their choice and (ii) establish a patient care sequential order. Nonparametric tests and multinomial logistic regressions were performed to compare patients choice between both groups and explore relations between sociodemographic, health and health-related behaviours and patient top priority assigned. Content analysis was used to explore the reasons for patients selection. Findings suggest that physicians and nurses share similar views, suggesting no tensions regarding patients prioritization. Respondents support health maximization, severity and fair-innings as rationing principles while waiting time and health-related behaviours were undervalued.
Keywords: Health economics; Attitudes of Health Professionals; Rationing principles; Patients selection; Explicit healthcare rationing; Angola.
Consumers lifestyle of health and sustainability as determining factor of purchase behaviour for sustainable products: An empirical analysis
by Manita Matharu, Ruchi Jain, Shampy Kamboj
Abstract: Sustainability and environmentally conscious behaviour towards sustainable products are emerging research areas in India. There is dearth of research to understand Indian consumers sustainable purchase behaviour, particularly in the context of consumers lifestyle. Present study aims to examine effect of consumer lifestyle of health and sustainability (LOHAS) on purchase behaviour. This paper adapts LOHAS, consumer attitude towards sustainable purchasing, subjective norm, willingness to pay premium for sustainable product to examine sustainable product purchase behaviour in Indian context through an extended theory of planned behaviour. Collection of data is done through a questionnaire filled from 316 individuals who are consumers of sustainable products. This study validated the proposed conceptual model by structured equation modelling and provides that LOHAS emerged as an antecedent to consumer attitudes towards sustainable product purchase. Additionally, attitude towards sustainable purchasing and willingness to pay price for sustainable products found to be significant determinants of consumers sustainable purchase behaviour. The findings of this paper might interest consumer behaviour scholars and those firms that concern regarding the consumers purchase behaviour for sustainable products.
Keywords: Sustainability; Sustainable Products; Theory of Planned Behaviour; Structural
Equation Modeling; LOHAS.
The Strategic Dilemma of Counter-Cyclical Capital Investment
by Eric C. Larson, Carl Vieregger
Abstract: This research investigates the timing of strategic investment decisions in response to changing conditions in the macro-economic environment. Managers face a strategic dilemma when making capital investments within the macro-economic cycle: even though resources may be scarce during downturns, firms with managerial capabilities can exploit factor markets to make profitable investments. We first show that managers recognize the importance of investing through economic downturns (i.e., investing counter-cyclically), but we also hypothesize and show that firms invest less during economic contractions (i.e., they do not invest counter-cyclically). We then hypothesize and find that performance is declining in investment, suggesting that contingent factors may influence successful capital investments. Our main hypothesis and test demonstrate that firms increasing capital investment during macro-economic downturns experience greater forward performance over one, two, and three-year horizons. We also show that the underlying mechanisms of this increased performance may be the temporal orientation (i.e., investment horizon) of strategic capital allocation and the firms dependence on external sources of financing. The analyses in this paper suggest that executives should make capital investments when it is perhaps the most difficult to do so.
Keywords: capital investment; capital resources; economic cycle; strategic decision-making; strategic dilemma; counter-cyclical investment; strategic timing; strategic fit; scarce resources; economic downturns; economic contractions; firm performance; contingent factors; temporal orientation; payback period; external dependence.
Drivers of Corporate Domestic Investment: Regional Analysis for India
by Ashwani Bishnoi
Abstract: Investment analysis at regional level has remained major thrust area among policymakers for balanced regional development of a economy. This paper assesses the drivers of corporate investment in India using a panel data of 16 states for period 1999-2017. The study employs generalised method of moments (GMM) estimators and gives more focus on financial condition based dimension which has been overlooked by the existing literature. The way in which financial conditions affect the firms investment decision is important for an effective design of monetary policy. Empirical results confirm the roles of various factors with varying magnitude and direction. These factors include: fiscal policy, access of financial resources- be it the bank credit or the internal source of finance, the efficiency components covered through productivity and costs, infrastructural facilities, government effectiveness and financial pressure variables.
Keywords: private investment; infrastructure; financial pressure; panel data; GMM India.
AN EVIDENCE-BASED STUDY ON COMPETENCY ADOPTION FRAMEWORK AND ASSESSING ITS IMPACT ON ORGANISATIONAL PERFORMANCE
by Yogesh Misra, Vibhash Kumar, Vanita Tripathi
Abstract: Companies have invested heavily in competency-based HR systems without having established guidelines on its implementation. This research studies the adoption of the competency framework in HR, along with perceived organisation performance (POP) and financial organisation performance (FOP). The study solicited research sample from the senior HR heads (N=175) of equity index companies listed in recognised stock exchanges of India. This study proposes a Competency Adoption Framework (CAFRMW) to measure the extent of adoption and evaluates the ability of CAFRMW to predict perceived and market-based performance measures effectively. The significant findings highlight that successful adoption of competency depends upon succinct documentation and formal communication of the same. Additionally, making competency accessible, contemporary, and training-appropriate is the key to success.
Keywords: Competency adoption framework; HR practices; Organisational Performance; Structural Equation Modelling.
Is the monetary policy behaviour of the South African Reserve Bank nonlinear?
by Abdul-Aziz Iddrisu, Imhotep Paul Alagidede
Abstract: In spite of the apparent asymmetry in monetary policy behaviour, monetary policy rule exposition continues to be carried out in the linear context. The burgeoning literature on nonlinear monetary policy rules fail to capture nonlinearity appropriately, putting the precision and accuracy of such estimates in doubt for policy purposes. With the aid of sample splitting and threshold estimation technique, the current study considers the monetary policy behaviour and responses of the South African Reserve Bank (SARB) in the Taylor rule context. The chosen technique delivers a threshold estimate after 5,000 bootstrap replications with confidence intervals based on asymptotic theory devoid of nuisance parameters. The study finds nonlinear Taylor rule to adequately capture the policy behaviour of the SARB with threshold inflation of 5.2% and asymmetric responses below and above this threshold.
Keywords: Monetary policy; Taylor rule; Sample splitting; Threshold estimation; Inflation targeting.
Econometric Search of Undocumented Workers in the U.S.
by Yongseung Han, Eréndira Yareth Vargas López, Myeong Hwan Kim
Abstract: This study seeks to find where undocumented workers reside in the United States. By postulating that the U.S. destination of an undocumented worker is affected by socio-economic factors, an equation is estimated using the standard panel-data methods. A static panel-data estimation (fixed-effects and random effects) does not reveal a meaningful relation between undocumented workers and other factors. The Arellano-Bond estimation, in which the previous level of undocumented workers are used as a proxy for a network, provides statistically significant relations at the 0.05 level; the number of undocumented workers in a state is determined by the states socio-economic factors such as economic conditions (e.g., unemployment rate and household income) and social factors necessary to form a network (e.g., foreign-born population, Hispanic population, urban population, the number of households having limited English-speaking ability and the previous level of undocumented workers). Among these factors, the previous level of undocumented workers has the largest impact on the current level of undocumented workers.
Keywords: Undocumented Worker; Illegal Immigration; Economic Migration; Real Wage; Unemployment Rate; Household Income.
Testing Weak-Form Market Efficiency in the Stock Exchange of Thailand
by Nattawut Jenwittayaroje
Abstract: This research tests the weak-form market efficiency, one of the most important financial theories, on the stock indices of the Stock Exchange of Thailand, namely, SET, SET50, SET100, SETHD, sSET, and MAI indices during the period from January 2002 to May 2019. This study employs three well-known weak-form market efficiency tests: autocorrelation tests, runs tests, and variance ratio tests (Lo & MacKinlay, 1988). The results show that SET, SET50, SET100, and SETHD indices become more weak-form efficient over time, suggesting that any strategy based on past returns to predict future returns is futile. However, sSET and MAI indices are not weak-form efficient, and show no sign of improved efficiency over time, thereby enabling the creation of trading strategies to earn abnormal returns, using past returns to predict future returns.
Keywords: Weak-form market efficiency; Random walk; Stock index; Total return; Stock Exchange of Thailand.
Impact of financial development on income inequality: Evidence from System Dynamics approach
by Syahrin Suhaimee, Mohd Azlan Shah Zaidi, Noorasiah Sulaiman, Jafri Zulkepli
Abstract: This paper examines the impact of financial development on income inequality from the dimensions of the banking sector and the stock market from 1970 to 2019 by utilizing the System Dynamics approach to analyse the dynamic feedback system of multiple variables. Results show that the banking sector development has higher impact on reducing income inequality than that of the stock market development. Although financial deepening has the highest impact on reducing income inequality towards 2050, the GDP output is lower than that of the GDP output in banking sector development. Thus, the growth in the banking sector is favourable compared to the improvement in other financial indicators. To achieve more equitable distribution of income and sustainable economic growth, both the government and the private sectors need to play their roles in providing better financial services to the people
Keywords: income inequality; banking sector; stock market; financial activity; financial deepening; financial size; system dynamics; financial development.
Volatility Spillovers of Gold Prices, Oil Prices, and Economic Policy Uncertainty on Stock Market of Pakistan
by Tariq Aziz, Afaque Hussain
Abstract: The primary purpose of the study is to examine the spillover effect of the oil market, the gold market, and global economic policy uncertainty on the stock market in the context of Pakistan. The study uses time-series data for the period December 2010 to September 2019. To investigate the volatility spillovers, the study employed the EGARCH model that allows for asymmetries. The results show that shocks in the gold market significantly transmit to the stock market returns. When the gold market is less volatile then the stock market shows higher volatility, vice versa. Further, the oil prices and global economic policy uncertainty have no significant volatility spillovers towards the stock market returns. The findings provide updated evidence about volatility transmissions from multiple factors to the stock market returns that are very important for investors and policymakers.
Keywords: Gold price; Oil price; Global economic policy uncertainty; Stock market returns; volatility spillover;.
SUB-NATIONAL GOVERNANCE QUALITY AND ECONOMIC GROWTH: A CROSS-REGION STUDY IN VIETNAM
by Canh Le Quang, Nhung Do Tuyet
Abstract: This study argues that sub-national governance affects economic performance not only cross-country but also cross-region within a country where local authorities interpret and apply the policies differently, and the impact of sub-national governance on economic performance is different from the size of the provincial economy. Using datasets collected at the provincial level and the Generalized Method of Moment models for dynamic panel data with two-step and robust standard error procedures, this paper suggests that better sub-national governance is associated with higher provincial economic growth and the effects do not uniform regarding measures of sub-national governance. The impacts of sub-national governance on economic growth is mitigated in larger provinces. These results shed light on how economic growth arises in response to institutional changes in a transitional economy like Vietnam.
Keywords: Sub-national governance; economic growth; cross-regional; and Vietnam.
Performance Evaluation of Some Listed Companies: Insights from Dhaka Stock Exchange in Bangladesh
by S.M. Masudur Rahman, Abu Naser Mohammad Saif
Abstract: Present study unveils the key determinants of profitability that is the measure of performance for a company. The profitability measurement indicators ROA, ROE have been set as dependent variables and macroeconomic factors like GDP, Inflation and company determinants like total asset, capital adequacy, net revenue margin, and the liquidity are set as independent variables. Natural log has been taken for total asset, GDP, and Inflation as we considered the percentage change of the variables. It is found that in case of ROA, four independent variables have a significant impact on ROA, but all are company determinants, no macroeconomic indicators have remarkable influence on ROA. And in case ROE, it is revealed that only two variables, total asset and GDP are meaningful and all other independent variables are insignificant. So, from the ROE side, it is get that NRM, Liquidity, and capital adequacy are not important variables. But for ROA, only two variables (GDP, Inflation) are not significant. R2 is also higher for ROA (.8327) than R square for ROE (.1481).
Keywords: Return on assets (ROA); Return on Equity (ROE); Asset size; Capital adequacy; Liquidity; Net Revenue Margin (NRM); GDP; and Inflation.
Educational wage premia and wage inequality in Turkey
by O.Y.A. KENT, SINEM SEFIL-TANSEVER
Abstract: This paper examines the effect of educational attainment on the male wage inequality in Turkey by employing Structure of Earnings Survey Micro Data compiled by TURKSTAT. We compare two years, namely 2006 and 2014, by estimating the Mincerian wage equation. Quantile Regression method is utilised in order to explore the differentials in educational wage premia along the wage distribution. Our findings show that, despite the overall increase in the male wage inequality over the period, inequality declined at the top end of the wage distribution while displaying a significant increase at the bottom end. Education had a positive impact on both within and between groups inequality in both years. In general, educational wage premia in all education categories along the wage distribution increased, with two exceptions (vocational high school and higher education). Especially, in higher education category, educational wage premia have declined at the top half of the wage distribution while increased in lower quantiles.
Keywords: Educational wage premia; wage inequality; quantile regression.
Indias inclusive growth- An Approach Based on TOPSIS Method
by Anusha Goel
Abstract: This study analyses the achievement of 32 Indian states and union territories in the inclusiveness of financial system, their relative position, major emerging trends and computes the rate of growth during a period of 2000-01 to 2016-17. The level of inclusion is determined using technique of order preference by similarity to ideal solution (TOPSIS) method and growth rate is computed by log linear regression model. The results indicate that states and union territories have secured different level of inclusiveness of financial system. While the situation has seen tremendous improvement in approximately twenty percent states/union territories, it has faced significant decline in thirteen percent states/union territories. There is no robust change in as many as seventy percent states/union territories. There are several implications for government and regulatory bodies. It presents a clear picture of the least inclusive states and their pattern of development overtime. The concerned authorities should analyse the dynamics between macro-economic factors and degree of inclusion which will act as a guide in policy formulation. It should give special attention to these states/union territories and frame regional policies instead of having one size fits for all approach for inclusive growth. Moreover they should work in coherence with each other to achieve desired goals.
Keywords: Banking; Financial Inclusion; Growth; India; Index; TOPSIS Method; Services; States; Union territories.
Does privatisation improve financial performance? Evidence from Jordan
by Ashraf Bataineh, Ashraf Alrjoub, Ziyad Mustafa Shwiyat
Abstract: The study aims to measure the effect of privatisation on improving the financial performance at the Jordanian companies. The study sample consists of six Jordanian companies listed in Amman Stock Exchange (ASE) in 2017, and to achieve the objectives of the study, a model has been developed by using T-test for paired samples, which included many variables and the issuing time of annual financial reports as the dependent variable. The results showed that privatisation programs did help to improve the performance of Jordanian companies, and in its adoption to privatisation policies, the Jordanian companies listed on the ASE need more time to issue public reports, in order to be compared with other sectors. The results of multiple regression analysis showed statistically positive significant effects between the companies profitability, financial companies leverage, and liquidity of companies annual financial reports. The study recommended that Jordanian companies should keep pace with the rapid changes taking place in the companies' environment and encourage innovations for their companies.
Keywords: privatisation; financial performance; profitability; liquidity; leverage; Amman Stock Exchange; ASE; state owned enterprises; SOEs.
Growth volatility and income inequality: asymmetric analysis for France
by Sudeshna Ghosh
Abstract: The present study attempts to investigate the growth volatility and the income inequality association for one major OECD country of the European Union, namely France over the period 1970-2016. The paper adopts empirical time series techniques. The paper applies the nonlinear ARDL method of Shin et al. (2014) because this will enable to find the asymmetries in the relation. It is argued that the rate at which income inequality reacts to rising income volatility may not be equal to the degree of responsiveness to the decline in the volatility of income. The hypothesis of positive asymmetric impact of economic growth on the top income shares is empirically established in this analysis. The paper makes a novel attempt to study how inequality is impacted by growth volatility in France by adopting an asymmetric framework. A series of robustness measures have been adopted to check for the consistency of the approach.
Keywords: income inequality; growth volatility; nonlinear ARDL; time series; France.
Diminishing calendar anomalies: case of Indian equity markets
by Sakshi Saxena, Harsh Purohit, Nidhi Malhotra
Abstract: The present study probes the presence of seasonal anomaly mainly day of the week effect and month of the year effect in the Indian Stock Market ranging from January 2011 till January 2018. Daily and weekly closing data of Nifty Financial services index, Nifty Auto index, Nifty Bank index and Nifty 50 index has been considered for the same. Regression model using dummy variables has been used to investigate the same. The results states that none of the four nifty indices shows day of the week effect. Nifty 50 does not indicate the presence of the month of the year effect. In contrast, April effect is present in Nifty Auto. Nifty Bank index shows February and August effect, while Nifty Financial Services shows February effect.
Keywords: day of the week effect; Monday effect; February effect; calendar anomalies; market efficiency.
An empirical study of foreign direct investment, human development and endogenous growth
by Ngoc Quang Ngo
Abstract: In the context of growing bodies of researching in foreign direct investment (FDI), what could be better than effective external financial source for developing countries? It is undoubtable to observe that FDI could foster the slow economic growth and improve the human development. Employing the predictive proxy called 'human development index (HDI)' commenced since 2010 by United Nation Development Programme (UNDP), this paper investigates the three determinants including life expectancy, education and income level of economic development in 102 developing countries during the period 1990-2015 by two-stage least squares method, correcting the endogeneity problem with particular instrumental variables. Our findings confirm the existing literature and emphasise the constructive role of foreign capital flows and human capital on economic growth and institutional quality as well as macroeconomic variables and gender equality.
Keywords: developing countries; endogeneity; foreign direct investment; FDI; human development; human development index; HDI; inequality; institutional quality; economic growth; instruments; international trade; poverty; welfare.
Competitiveness development model of manufacturing firms from dynamic capabilities perspectives
by Jaleh Farzaneh Hassanzadeh
Abstract: The main purpose of this study is to develop a model explaining the path toward competitiveness development for entrepreneurial food exporting firms. In this study, the competitiveness development model is based on dynamic capabilities perspective. Few studies have been provided a model for competitiveness development of manufacturing firms from the dynamic capabilities perspective. For this purpose, the method of this study is grounded theory. Thus, 20 food-industries managers and experts in food sector were interviewed. The systematic approach presented by Strauss and Corbin (1990) was used to analyse the interviews. The competitiveness development model consists of the causal conditions, the intervening conditions, the contextual conditions, the export strategies of food exporting SMEs and the consequences. For analysis the interviews, MaxQDA software was used. The model identifies dynamic capabilities that lead to competitiveness and suggest the path to building such capabilities. Implications of findings are discussed at organisational-level and institutional-level.
Keywords: competitiveness; dynamic capabilities; international entrepreneurship; entrepreneurial exports; Iran; food industry; SMEs; manufacturing firms; configuration capabilities; non-oil exports.
Special Issue on: EUROMED 2019 Innovative Business and Management Approaches to Meet the Challenges of a Volatile Global Environment
Indicators and criteria for efficiency and quality in public hospitals: a performance evaluation model
by Fiorella Pia Salvatore, Simone Fanelli
Abstract: In many countries, the public sector is currently characterized by the need to improve its performance. The implementation of performance measurement systems is essential to generate better results, especially in the public health sector. In healthcare practice, clinical indicators are part of a performance measurement system, and are a way of assessing the quality of care by investigating the frequency of specific results. Through a clinical audit process, this study aims to define the criteria and key performance indicators for minimally invasive endovascular surgical treatment. This type of treatment is chosen because aortic pathologies are an important European issue in cardiovascular surgery. A model of criteria and indicators used in a large public Italian hospital was constructed in order to assess the level of performance achieved with this service.
Keywords: healthcare organization; evaluation model; key performance indicators; efficiency; quality improvement; performance assessment; health services; new public management; internal audit; healthcare costs.
The contribution of a supplier of the Food & Beverage industry to the sustainability of the overall supply chain
by Marcella Giacomarra, Maria Crescimanno, Georgia Sakka, Antonino Galati
Abstract: Achieving sustainable scopes in a supply chain context entails structural changes at all tiers. Recently, scholars investigated different models able to achieve a Sustainable Supply Chain Management. With the aim to explain which factors, at the single supplier level, could reassure a focal firm as regards the compliance of sub-suppliers toward sustainability principles, a case study was performed on a company of the Food & Beverage packaging industry, based on the Natural Resources Based View of the firm. Results show the leading role that, a major supplier, can play in promoting sub-suppliers compliance towards sustainable principles. Reputation, legitimacy and concerns about future positioning in the market, are guiding factors able to influence the strategies adopted towards sub-suppliers. Implications for focal firms managers suggest to invest more in relationships with those suppliers able to demonstrate reliable sustainable management systems, with proven commitments to product stewardship and greener technologies.
Keywords: Sustainable business models; environmental sustainability; Natural Resource Based View; Chain Liability Effect; sustainable supply chain; supply chain management; case study; key resources.
Transfer of Training: An effective tool of knowledge application
by Karim Wahba, Niki Kyriakidou, Janet Astley
Abstract: Training alone is not adequate to increase organisational effectiveness, as not all knowledge acquired from the training is implemented correctly in the workplace. To implement training effectiveness, acquired knowledge should be transferred to the workplace. This study intends to understand and describe how expatriate faculty members perceive the Supervisor\'s support behaviours for an effective transfer of training during three stages (i.e. before, during and after training) in the context of UAE HE sector. A qualitative interpretivist approach was adopted, and the data was generated from 21 expatriate faculty members in three higher education institutions through semi-structured interviews. The findings had contributed to the knowledge concerning transfer of training, particularly, in the UAE\'s higher education (HE) sector by proposing a framework which for the first time identifies the types of supervisors\' supportive behaviours that foster transfer of training among faculty members in each phase of trainingthereby increasing the knowledge application and training effectiveness in the UAE private HE sector.
Keywords: Transfer of Training; Supervisor Support; Expatriate Faculty Members; UAE; HE Sector.
Academic Propaganda in Higher Education Institutions as Social Business Enterprises: detection, remedy and conceptualisation
by S. M. Riad Shams, Alkis Thrassou, Demetris Vrontis, Michael Christofi, Eleni Trichina
Abstract: Historically, social enterprises and particularly higher education institutions (HEIs), in the course of pursuing social objectives and economic imperatives have played a pivotal role in the community interests and social welfare by acting as drivers of social change. In this context, and on the contrary to the understanding of universities as public good, academic propaganda, as a darker form of institutional brand communication strategy has been, diachronically, in social businesses and other diverse contexts, misleading target audiences for political, social and/or business purposes. And though scholars in marketing and social sciences have studied the matter, primarily in its socio-political context, its business fa
Keywords: Social business enterprises; higher education; propaganda; image; reputation; internationalisation; sustainability; brand communication; misleading communication; value.
THE RELATIONSHIP BETWEEN SOCIAL CAPITAL, KNOWLEDGE SHARING AND TRUST: A STUDY BETWEEN BABY BOOMERS, X AND Y GENERATIONS
by Hande Özek
Abstract: In todays work-life, organizations currently are not only facing the rapid change of external factors such as technology, economy but also striving to adapt new work values and patterns of behaviour in organizational practices within new generations. The aim of this study is to reveal the relation between social capital, knowledge sharing, and trust in the organization and find out the differences among the generations. A quantitative study was conducted with a total of 327 participants, all actively working in the private sector, in Istanbul, Turkey. The results provided three main findings as follows: social capital has a positive effect on knowledge sharing; trust has a positive effect both on knowledge sharing and social capital; there are differences among the generations in social capital, knowledge sharing, and trust.
Keywords: Social Capital; Structural Social Capital; Relational Social Capital; Cognitive Social Capital; Knowledge Sharing; Trust; Capability Trust; Benevolence Trust; Integrity Trust; Baby Boomers; X Generation; Y Generation; Sustainable Competitive Advantage.