International Journal of Economics and Business Research (103 papers in press)
An Application Of Pannel ARDL Model With Co-Integration for Portfolio Management
by Umer Ilyas, MATTI ULLAH BUTT, MUHAMMAD GULZAR
Abstract: The aims of this study are to explore the impact of macroeconomic variables on stock performance and to provide a knowledge platform with international applicability with the application of panel ARDL model with cointegration on Pakistan Stock Exchange (PSX) not only to have better development of portfolio but to overcome the deficiencies of conventional index base studies as well by finding this impact on not only every sector of PSX but upon each individual firm of the sector as well. For this purpose, monthly data for first quarter of 2005 until first quarter of 2020 was employed for exports, foreign direct investment, foreign exchange reserves, interest rate and inflation as independent variables and monthly stock prices as dependent variable. The results indicate that impact and response was significantly different for overall sector as compared to firms from within same sector for change in independent variables. This opens a new dimension of knowledge for portfolio managers.
Keywords: portfolio; sectorial analysis; macroeconomic variables; MEVs; stock market performance; SMP; panel ARDL model.
The determining factor of foreign direct investment: How significant are institutional aspects in developing countries?
by Ali Lamouchi, Abdelkader Mohamed Sghaier Derbali
Abstract: Since the 1980s, the attractiveness of FDI has always been one of the growth drivers for most developing countries. The economic literature highlights the expected benefits of FDI in terms of job creation, currency inflows and spillovers. One of the questions at this level is the factors that determine the attractiveness of FDI. This paper is an empirical contribution in this topic. It covers a panel of 46 developing countries over the period from 1996 to 2018. Our empirical results show that, in addition to some classic determinants of FDI attractiveness, institutional factors, particularly those related to economic freedoms available to investors, are also of great importance. We find that economic freedoms have a significant impact on net flows of foreign direct investment. Also, we find that civil liberties, political freedoms, economic growth, and business environment have a considerable effect on net flows of FDI.
Keywords: attraction of FDI; institutional factors; economic freedoms; economic growth; panel data.
AN EMPIRICAL ASSESSMENT OF DRIVERS OF THE INFORMAL MICRO AND SMALL ENTERPRISES: EVIDENCE FROM THE CITY OF NOIDA, INDIA
by Shagun Bansal, Anjani Kumar Singh
Abstract: This research paper intends to understand the informality level of informal enterprises and the reason for operating informally. Research was conducted in industrial location Noida, India that provides self-employment opportunities. Sampling technique used was stratified random sampling with sample size of 125 informal enterprises. Study was conducted through structured questionnaire. Data was collected with the help of in-depth interview. Study tried to identify the factors that contribute to inception of informal business activities. Research also includes the challenges in running such enterprise. The research findings depict that majority of informal enterprises did not have access to credit through formal sources. Research concludes that informal enterprises do not have any expansion plan to grow and face major challenges relating to infrastructure and government regulations. Major reasons for informalisation were the lack of knowledge of registration, avoidance of taxes and shortage of formal employment opportunities. This research work is original and has not been published anywhere else.
Keywords: informal enterprise; entrepreneur; informality; determinants; regulations; corruption; registration; poverty; India.
Shadow economy and foreign direct investment in Nigerian manufacturing industry
by Folorunsho Ajide, Temitope J. Dada, Johnson K. Olowookere
Abstract: In this paper, we investigate the symmetric and asymmetric effect of shadow economy on foreign direct investment (FDI) in Nigerian manufacturing sector using ARDL and NARDL estimation techniques for the period of 1975 to 2017. We find that an increase in shadow economy reduces FDI net inflow in the short run while this relationship turns to be positive in the long run. This result persists after using NARDL to re-estimate the model. Negative and positive changes in the size of shadow economy have negative and significant effects on FDI in the short run while in the long run, both changes have positive effects on FDI in the sector. The results imply that in the short run, new foreign investors would like to operate in the formal sector due to tax incentives and other financial incentives available for new entrants. However, in the long run, shadow economy attracts FDI, because incentives enjoyed have expired coupled with high cost of doing business in the country. The investors would prefer to either look for loopholes in tax laws or attempt to evade tax and cut down official remittances to the government by operating in the informal sector of the economy.
Keywords: informality; tax; foreign direct investment; FDI; NARDL; Nigeria.
Why Do Specific Regions Attract More FDI Inflows in India? Role of Region-specificities and Insights from the Dynamic Panel Econometrics
by Prajukta Tripathy, Pragyanrani Behera, Bikash Ranjan Mishra
Abstract: To examine the disparity in distributional inflows of foreign direct investment (FDI), the study uses Theil index as a statistical tool to verify the skewed distribution across the regions in India and confirm the same with its decomposition scores. In order to investigate the causes of such unequal distribution of FDI inflows in India, this study uses the system GMM model for 16 regional groups from 2004 to 2015 time period. With a special concern to the region-specific factors and the agglomeration effect, the uneven dummy variables are also used to capture the inequality in FDI inflow across the regions. Our findings confirm the significant role of each of them in pocketing a major chunk of FDI inflows by a few regions. To recommend the policymakers, the present study proposes a balanced growth perspective and a comprehensive framework mitigating labour reforms, industrial productivity and FDI policy.
Keywords: foreign direct investment; FDI; regional concentration; Theil index; region-specific factors; panel data; endogeneity; system generalised method of moments.
High-Frequency Stock Market Connectedness in G-7: Evidence from Time-Frequency Domains
by Onur Polat
Abstract: In this work, we examine stock market contagion in G-7 countries by implementing the frequency connectedness methodology. In this context, we use daily MSCI Financials indexes for G-7 countries ranging from 1995:01 to 2018:12 in the empirical model. The total spillover index computed in the 200-day moving window efficiently responses to prominent financial stress incidents over the analysed period. Furthermore, we examine the network topology of directional TO/FROM spillovers amongst G-7 stock markets. The network analysis underlines that the most advanced economies stand at the epicenter of the network and the Eurozone countries are strongly interconnected. Empirical findings of the study highlight the importance of constituting an efficacious regulatory framework for beholding the unsystematic risk.
Keywords: MSCI Financials Index; Idiosyncratic Risk; Financial Contagion; Spectral Analysis; Frequency Connectedness.
Trend and Impact Analysis of Master's Theses and Doctoral Dissertations Completed in Turkey on the Topic of "Leadership"
by Hande Özgen, Hale Özyürek
Abstract: In this study, trend and impact analysis of graduate theses written in Turkey between years 2000 and 2019 on the topic of leadership is conducted. National Thesis Centre of Council of Higher Education of Turkey is searched using the keyword leader to identify a total of 877 relevant graduate theses. These theses are investigated to gather data related to general properties of the theses (such as type of thesis, university in which thesis is written, language, number of pages, and gender of author) and contents of the theses (such as variables studied, research method, data collection method, sample group and size, and references utilised). For impact analysis, search tool Google Scholar is used to determine the total number of citations for each thesis, which is then used to calculate the average number of citations per year. IBM SPSS software is used to process the gathered data.
Keywords: leadership; masters theses; doctoral dissertations; Turkish universities; Council of Higher Education; National Thesis Centre; impact analysis; trend analysis; citations; Turkey.
Modelling Drivers of Millennial Green Consumption Behaviour: An Interpretive Structural Modeling (ISM) Approach
by Anu Gupta, Hemraj Verma, Vijay Kumar Jain, Pankaj Kumar
Abstract: Green consumption has occupied an important role due to the growing scarcity of natural resources and the rise in global temperatures. Increasing population and income of consumers, and wealth in the coming years are likely to put pressure on the resources. The solution to the above problem lies in the adoption of environmentally friendly products and sustainable consumption. The current study aims to identify and prioritise the enablers of green consumption behaviour among millennials. The interpretive structural modelling approach has been used to prioritise the enablers of green consumptions. A total of 13 enablers were identified based on literature and experts opinion on green consumption. Green product experience, customer pressure, and information utility were found to be the most important enablers of green consumption behaviour. The finding of the study would help policymakers and marketers to encourage green consumption among millennials, thereby, improving the environment, cutting down emissions, environmental degradation.
Keywords: environmental degradation; ecological footprint; green consumptions; interpretive structural modelling; ISM.
A parametric model to price a portfolio of single-premium life insurance policies and to decompose its longevity risk.
by Rosa Ferrentino, Luca Vota
Abstract: In this paper, the authors propose a statistical mathematical model to price an insurance portfolio consisting of single-premium life insurance policies, to calculate its variance and its longevity risk. The novelty introduced by the authors is that in their framework it is assumed that the outflows, namely the indemnities that are paid to the insured in life when the policies expire, are discounted at an uncertain interest rate. Other relevant hypotheses are that both the premium and the indemnity established by the insurance contract are constant until expiry and that the survival function of the policyholders is exponential. The authors show that both the price and the variance of the portfolio depend mainly on the speed at which the discount rate varies between the period of subscription of the policies and their expiry date, but also on the average value of this interest rate in the same period.
Keywords: single-premium life insurance policy; risk decomposition; longevity risk; asset pricing; mathematical methods.
Tripartite Relationship of Ethical Behaviour, Job Involvement, and Job Performance & its relevancy in IT sector in India
by Kiran Dhand, Vikas Arya, Ran Singh Dhaliwal
Abstract: The purpose of this study is to examine the causal relationship between an employees ethical behaviour and their job performance and examining the mediating role of job involvement in the relationship between independent and dependent variables. This exploratory study investigated 647 respondents from different IT companies in India, using stratified random methodology. The conceptual model of various sub-constructs of ethical behaviour, job involvement, and job performance was tested using structural equation modelling. Data and hypothesis were tested using SPSS 22.0, AMOS 24.0, ADENCO and Process (Prof A. Hayes). The findings of the study support the mediating role of job involvement and depict that there is a moderating effect of respondents experience and their education on the relationship of an employees ethical behaviour and job performance. This research provides insights into understanding the impact of ethical behaviour on job involvement and job performance.
Keywords: ethical behaviour; employees attitudes; job involvement; job performance; IT Industry.
The restoration of monetary policy tools in armed conflict countries: the case of Yemen
by Hani Hazaa, Noori Hazaa
Abstract: Among the many problems facing Yemen, the disruption of the monetary policy tools remains paramount affecting millions of lives. This study aims to restore the monetary policy tools functions in Yemen. This is done by first identifying the reasons behind the monetary policy tools disruption, and then developing a new efficient monetary policies management system (MPMS). Semi-structure interviews are used in two different stages. First, to identify the reasons behind monetary policy tools disruption. Second, to assess the efficacy of the developed MPMS. The study reveals that a high unpredictable inflation, a sharp fluctuation in the currency value, and a loss of trust in the central banks functions are major reasons for the disruption of the countrys monetary policy tools. Additionally, the developed MPMS received the satisfaction of the interviewee parties who include former T-bills investors, high-level officials in the Central Bank of Yemen, and the Minister of Finance. Thus, indicating efficacy achievement to the developed MPMS. Our results achieve a restoration to the disrupted monetary policy tools in armed conflict countries (i.e., Yemen).
Keywords: Central Bank of Yemen; CBY; monetary policy; monetary policy failure; alternative monetary policy tools; Yemen.
Managing Incoterms® 2020 export risks
by Roberto Bergami, Lucie Tichá
Abstract: Delivery of goods across international boundaries is an important consideration for any export sales contract. To assist international traders, the International Chamber of Commerce (ICC) published a new set of delivery terms Incoterms® 2020, effective 1 January 2020. Using a practical approach, this paper considers the main Incoterms® 2020 rules through a risk management lens, highlighting major challenges and offering potential risk mitigation strategies to reduce exporter exposure in international sales contracts. The paper concludes that the exporting firm should adopt an Enterprise Risk Management (ERM) approach to effectively minimise the risks associated with the physical delivery of export consignments.
Keywords: Incoterms® 2020; risk management; international trade; export risk; international delivery terms; international sales contracts; Enterprise Risk Management (ERM); international carriage of goods.
Artificial Neural Networks for developing Early Warning System for Banking System: Indian context
by Neha Gupta, Arya Kumar
Abstract: This study attempts to develop an Early Warning System for the Indian banking sector using artificial neural networks (ANNs) by considering important economic variables based on detailed literature review. It takes into account an Elman recurrent neural network and a multilayered feedforward backpropagation network (MLFN). The ANNs are evaluated based on their accuracy and calibration using quadratic probability score (QPS) and global squared bias (GSB) for both within the sample and out of sample. The scores depict results with Elman recurrent network outperforming the MLFN. The uniqueness of this study lies in using and identifying pertinent macroeconomic variables to anticipate the banking sector fragility for the Indian economy using sequential feature selection algorithms. The ANN models are found to be appropriate and useful for policy planners to foresee the possibility of occurrence of banking fragility and take proactive corrective measures to minimise and safeguard the economy from adverse implications of banking crisis.
Keywords: early warning system; EWS; banking crisis; global financial crisis; artificial neural network; ANN.
Exchange rate stability and new entrepreneurs: An empirical evidence in Vietnam
by Linh Bui, Chang Won Lee, Huu Phuoc Le, Duy Duong, Ngoc Quang Anh Huynh
Abstract: This paper examines the macroscopic determinants such as the asymmetries of exchange rate and equity index of the number of newly established firms from Vietnams perspectives. Employing a rich set of econometric techniques with weekly data from the first week of 2016 to October 2018, we attempt to shed further light what drives the change of a number of Vietnamese companies registered and an amount of money invested in businesses. This paper serves as a foundation for future studies on the relationship between exchange rate stability and the decision to start up as well as a reference source for the decision-making process of both investors and policy-makers in the context of the national entrepreneurship campaign.
Keywords: Vietnam; entrepreneurs; capital; exchange rate; stock index.
The effects of competition intensity on corporate social responsibility of chaebols
by Soonwook Hong
Abstract: The purpose of this study is to investigate the effects of competition intensity on corporate social responsibility of chaebols. Companies will choose different management strategies depending on the environments in which they are placed for their sustainable growth. There may be diverse management strategies depending on the concentration of the industries to which the companies belong, that is, the intensity of competition. Empirical analysis shows that chaebol companies belonging to industries with high competition intensity are more actively engaged in CSR. These results indicate that the CSR activities of chaebol companies are far from pure purposes or philanthropic motivations. It can be inferred that the CSR activities of chaebol companies are due to strategic or economic purposes. This studys contribution includes the fact that it evaluated the quality of internal CSR activities rather than the quantity of superficial CSR activities of chaebol companies.
Keywords: chaebol; corporate social responsibility; CSR; competition intensity; donation.
How Could I Choose My Health Insurance Plan? Determinants of Employer-Sponsored Health Insurance Plan Selection: Application of Machine Learning Technique
by Yi Zhang, Jia Yu
Abstract: Selecting the appropriate, reasonable, and affordable health insurance plan becomes a very important question to solve for both employers and employees. Our research tries to locate the factors determining private sector health insurance plan enrolment decision, and also provides a guideline to both private companies and employees on health insurance plan selection strategies. By using Kaiser Family Foundation Annual Employer Health Benefits Survey (KFF EHBS) data, we apply random decision forest machine learning methodology to study the determinants of employees health insurance selection, as well as to compare the prediction accuracy among different methodologies. The results indicate: 1) the employees at large firms and the firms with higher eligible rate would tend to choose PPO plan; 2) employees who need family coverage would have different choices comparing employees who seek for single coverage only; 3) employers contribution and annual total contribution to the health insurance plan are the most important determinants on employees insurance selection. The conclusion also can provide some suggestions to insurance companies on health insurance package design for different types of employers and employees.
Keywords: health insurance; PPO; high-deductible health plan; HDP; machine learning; random decision forest; logit regression.
Livelihood Diversification of Farm Households under Rainfed Agriculture: A Case of Barak Valley of Assam, India
by Himanshu Narayan Prasad, Gurudas Das, Gorky Chakraborty
Abstract: The paper outlines the extent and pattern of rural livelihood diversification of farm households in Barak Valley of Assam, India. The study uses primary data collected from a sample of 450 farm households from the three districts that constitute the valley. We identify the major determinants of diversification towards non-farm activities by the farm households under the valleys rainfed agriculture. We also verify the role of non-farm earnings in improving the long-run economic wellbeing of farm households. We find that, among others, the percentage of household members employed in the non-farm sector, family size, average education of male working members, age of household head and size of landholdings emerge as significant determinants of livelihood diversification. It is also established that a farm households non-farm earnings has a positive influence over its wealth index which is taken as a measure of its long run well-being.
Keywords: farm household; income diversification; tobit regression; rainfed agriculture; India.
Culture Influence in International Organizations
by Renato Lopes Da Costa, Leandro Pereira, Rui Gonçalves, Álvaro Dias, Carlos Jeronimo, Ricardo Santos
Abstract: The amount of studies that have been done through the years within the field of culture and, specifically organisational culture, says a lot regarding the important of the matter in organisations. Nowadays, it seems more and more important to demystify the concept of culture, so that organisations, especially those operating worldwide, may take the most advantage possible from it, in order to have satisfied employees, managers and sponsors. The objective of this study is to help understanding, from theory to practice, why and how important culture is for an international organisation and how important it is for an international organisation to have a common culture and to adapt and change it. For this proposes the research was conducted by an empirical study focused on 14 interviews made to top managers and directors of organisations operating internationally. The three proposed questions were answered, and it was concluded that in a common opinion, culture is important in all companies, it is in fact the DNA of an organisation being the key to its success.
Keywords: organisational culture; adaptation; internationalisation; international organisations.
Project Management Tacit Knowledge for Continuous Improvement
by Leandro Pereira, Renato Lopes Da Costa, Álvaro Dias, Rui Gonçalves, Carlos Jeronimo
Abstract: In an international environment of high competitive aggressiveness where markets are instable, an uncertain economic environment dominated by external variables forces our management to face a troubled period of uncertainty with the consequent need to rethink how to be in the market. It is through projects that transformation occurs, as they are the vehicle to implement the future steps of the organisation. The success of the organisations depends on the projects success. This research includes an extensive survey to 62 project managers in the Iberia Market that face a typical project case in trouble, and asks them, based on the situation their advice using their experience. The main findings allow us to understand that successive faults in projects came from the same reasons, the mistakes are repeated, so it is critical to shared tacit knowledge of good practices to avoid it again.
Keywords: tacit knowledge; knowledge management; project; organisational learning; best practices.
Shadow Economy and the Efficiency of FDI Inflow: The case of ASEAN Economy.
by Nathapornpan Piyaareekul Uttama, Rapipong Promnart
Abstract: This paper focuses on the influence of shadow economy on the efficiency of foreign direct investment (FDI) inflow to the Association of Southeast Asian Nations (ASEAN). The panel stochastic frontier analysis with time varying technical inefficiency is employed to evaluate the efficiency level of inward FDI in nine ASEAN countries over the 2003 to 2017 period and examine the significant determinants affecting the efficiency of FDI inflow to ASEAN. The estimated results demonstrate that the efficiency levels of the FDI in such ASEAN countries are low. They also reveal that the market size and trade openness have significantly positive influences on the efficiency in attracting FDI to ASEAN countries. Moreover, the large shadow economy tends to significantly lower the ASEANs FDI inefficiency, whereas a higher control of corruption significantly generates the FDI inefficiency in ASEAN.
Keywords: foreign direct investment inflow; Greenfield investment; shadow economy; efficiency; stochastic frontier analysis.
Impact of Destination Weddings in Tourism Economy
by Leandro Pereira, Sofia Mendonça, Álvaro Dias, Renato Lopes Da Costa, Rui Gonçalves
Abstract: Despite representing a recent world trend, wedding tourism felt a growth of 75% the past few years, which shows this market, specifically, the destination weddings niche, is proving to have an optimistic development and becoming a relevant topic in events tourism. The research objective analyses how the destination weddings have contributed for the development of events tourism in Portugal by examining what tactics are being utilised towards an international positioning. A quantitative method was used to achieve the objectives, being that two distinct surveys were elaborated, to foreign couples and another to vendors that take part in the industry. The data triangulation method was adopted with the goal of obtaining robust results by gathering a broader source of data. The results show that the destination weddings market contributes positively to the expansion of the events tourism in Portugal. Couples tend to choose Portugal for their climate, impressive sites and sense of intimacy, but the country needs to improve the transaction payments and present a wider range of advertisement. Regarding Covid-19, it had a negative influence mainly because most foreign couples decided to postpone or cancel the wedding.
Keywords: events tourism; wedding tourism; destination weddings.
Inward and Outward FDI and the Shadow Economy during the Greek Economic Crisis
by John Marangos, Eirini Triarchi, Themis Anhtrakidis, Alexandra Dimitriadou, Angeliki Nestoroudi
Abstract: The purpose of the paper is to discover the bearing of inward and outward FDI and the shadow economy on the Greek economic crisis (GREC) in reviving the shattered economy. Students and researchers of the global economic crisis will benefit from this novel approach in exploring the GREC from the inward and outward FDI and the shadow economy perspective. The paper establishes that inward and outward FDI and FDI stock as a percentage of GDP, after a substantial period of ups-and-downs, was on the road to recovery as the economy was coming out from the crisis. The shadow economy in Greece exhibits a paradoxical evolution, as it substantially declined due to the sharp reduction in incomes that reduced the demand for activities in the shadow economy. Economic policymakers need to exploit the recovery of inward and outward FDI and this once in a lifetime opportunity of the substantial reduction of the shadow economy.
Keywords: inward FDI; outward FDI; shadow economy; Greece; Greek crisis; European crisis; global financial crisis.
Factors that influence consumer use of on-line news micropayments in the Swiss News Industry
by Manja Pfeiffer, Stephen Carter
Abstract: This research aims to examine, as a first attempt, the factors that influence consumers use of online micropayments in the Swiss newspaper industry from a consumer perspective. The study utilised an extension of the technology acceptance model (TAM) with analysis using structural equation modelling. Two individual characteristics-perceived usefulness and perceived ease of use-appeared to be substantial antecedents of micropayment predilection and five system characteristics; compatibility, later payment, single payment platform, mobility and convenience, were found to be positively and significantly linked to the perceived usefulness, with the latter two also showing a strong significant effect on perceived ease of use. Amongst other results, the study shows the importance of trust, later payment and the strong relationship between convenience and the consumers perceived usefulness and suggests that micropayments could be a business model, as a means to unlocking reader revenues.
Keywords: micropayments; technology acceptance model; TAM; consumer use; perception factors; online news; Switzerland.
INVESTIGATION OF THE ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS FOR THE MINT COUNTRIES: THE ECOLOGICAL FOOTPRINT APPROACH
by Ali Eren Alper, Findik Ozlem Alper
Abstract: According to the environmental Kuznets curve (EKC) hypothesis, as the per capita income of a country increases at the initial phases of economic development, the level of pollution also rises. However, once a certain threshold value is exceeded, the growth in per capita income reduces economic pollution. The EKC hypothesis claims the presence of an inverted U-shaped association between growth in income and environmental pollution. This study aims to ascertain the validity of the EKC hypothesis using ecological footprint and environmental pollution variables for MINT (Mexico, Indonesia, Nigeria, and Turkey) countries. According to the results obtained from the ARDL Bounds test performed by following the Narayan and Narayan (2010) methodology, the EKC hypothesis is found valid for Mexico, Nigeria, and Turkey, since the short-term elasticities of the growth in per capita income exceeds the long-term elasticities in the countries.
Keywords: environmental Kuznets curve; EKC; ecological footprint; ARDL bounds test; MINT.
An Analysis of Employee Happiness, Engagement and Organisational Commitment in the Banking Sector of India
by Arijit Choudhury, Anirban Dutta, Sonit Dutta
Abstract: In recent days, employee happiness along with employee engagement has become the buzzword in business sectors. The present study aims to identify a positive relationship between employee happiness, employee engagement and organisational commitment and tries to find out whether employee happiness and employee engagement can be predicting factors of organisational commitment in the banking sector of India. Descriptive research design has been followed in this study and it comprises of 337 samples collected from bank employees. After multivariate linear regression analysis, results indicate a significant positive relationship between employee happiness and engagement and also show that employee happiness and engagement can have predictive value for organisational commitment for the employees working in the Indian banking sector.
Keywords: employee happiness; employee engagement; organisational commitment; Indian banking sector; regression analysis; India.
The effects of capital raising on corporate social responsibility of chaebol
by Soonwook Hong
Abstract: This study aims to verify the effects of capital raising on corporate social responsibility of chaebol. Each company has different intentions for CSR. Some firms truly fulfil their social responsibilities with pure philanthropic intentions, while others use CSR as a means for economic purposes. I would like to find out the intentions of CSR activities conducted by chaebol firms by investigating how the aspects of CSR activities vary depending on the situation of firms that raise capital. According to the results of analysis, chaebol firms that raised capital are more active in CSR. It is judged that chaebol firms are using CSR activities as a means for other purposes rather than conducting CSR activities with pure intentions. As society advances, demand for corporate social responsibility becomes larger. Although Korean economy is making rapid strides, chaebol firms standing at the centre seem to be far behind the needs of the times.
Keywords: chaebol; corporate social responsibility; CSR; sustainability; capital raising.
Exploring the relation between micro-lending and economic growth - evidence from Indian macro environment.
by Ankit Biswal, Pramod Kumar Mishra
Abstract: Mixed results on the impact of microfinance continue to create concern among the policymakers due to the opportunity cost of the resources allocated towards micro-lending. While microfinance reduces income inequality, it becomes necessary to know its effect on economic growth, as income equality and growth are negatively correlated in developing economies. We hypothesise that microfinance leads to the economic growth of the nation at the macro level, using Indias state wise panel data extracted by exploiting the database of Microfinance Institutions Network and database of the Reserve Bank of India. The study uses a random effects instrumental variable model to deal with the endogeneity and state and time effect involved due to bi-causality and panel data respectively. Results obtained, suggest that micro-lending has a significant and positive impact on the economic growth of a nation, which implies that microfinance can also contribute towards positive economic growth along with its role of reducing income inequality.
Keywords: micro-lending; growth; gross domestic product; GDP; India; macro environment; gross loan portfolio; GLP.
GENDER OF TOP MANAGER AND FIRM INNOVATION PERFORMANCE
by Seda Ekmen Özçelik, Iklim Gedik Balay
Abstract: This article examines how the gender of the top manager affects the likelihood of firms to innovate. The descriptive statistics of the study reveal that the presence of women in top managerial positions is still limited worldwide. Female top managers work generally in small-sized, non-exporter and domestic-owned firms. Empirical analyses show that female top managers increase the likelihood of the firms to accomplish product innovations, while they do not have a significant impact on other types of innovation, such as process innovations, having a technology license and having a quality certificate. However, these impacts vary with respect to firm characteristics such as exporter status. For example, female top managers have a higher positive impact on product innovation in exporting firms than in non-exporting firms. This study can be helpful for firms to be more innovative and competitive by reviewing and revising their gender discriminating attitudes towards top manager positions.
Keywords: gender; top manager; innovation; firm; woman; product innovation; process innovation; quality certification; technology license; exporter status.
Entrepreneurship and Digital Markets
by Renato Lopes Da Costa, Luis Cabral, Leandro Ferreira Pereira, Álvaro Dias, Rui Gonçalves
Abstract: Over the past years, the digital industry has experienced a huge transformation, impacting not only entrepreneurship, but also digital platforms. All business strategies must be rethought, with the purpose of satisfying the consumers needs, which are constantly changing. Entrepreneurs must adapt their products to the digital format and take advantage of the benefits that digitalisation can offer, especially in a context in which markets are more dynamic and uncertain. This research aimed to comprehend how entrepreneurship and digital platforms are related, identifying the main challenges. In this sense, three research questions were formulated, based on the literature review and, a questionnaire was applied. After combining a quantitative and qualitative analysis, it was possible to realise that it is essential to take into account that digitalisation requires a rethinking of the companies strategies. Thus, entrepreneurs should take advantage of this opportunity to sell their products through these platforms.
Keywords: entrepreneurship; digital platforms; digitalisation.
Monetary Valuation of The Amenity Forest Ecological Conservation and Management Attributes in Malaysia
by Chin Kee Tom, Nitanan Matthew, Ahmad Shuib
Abstract: Incorporating users preferences, expectations and demands when designing, planning and managing forest reserves for recreational purposes is crucial to success. This is particularly important in countries that have gazetted the forests as recreational forests for the public. This study aims to determine visitors preferences on ecological and management recreational forest attributes, the levels of attributes and their preferences for particular forest attributes using the choice experiment method. The results indicated that visitors felt the number of workers in the park is sufficient, followed by more information boards (IB) (80% coverage) in the park being needed. Regarding facilities (IF), respondents were looking forward to seeing an improvement in up to 90% of the parks current facilities. In addition, respondents felt that park management should enhance their ecological management efforts in the park. The findings revealed in the AKRF that 83.6% of the respondents were willing to donate on ecological conservation and management. The quantity that participants were willing to donate amounted to RM44/year/family based on the random parameter logit model. The findings may assist policymakers in investigating the relationship between visitors and conservation and management in the AKRF.
Keywords: choice experiment; recreational forest; ecological conservation and management attributes; willingness to donate; WTD; Malaysia.
The Leadership Role in Healthcare Management
by Renato Lopes Da Costa, Rafaela Da Costa Pereira, Leandro Pereira, Álvaro Dias, Rui Gonçalves, Ermelinda Carrachás
Abstract: Within the changes in the Portuguese healthcare system across the years, new challenges emerge for healthcare practitioners, organisations, and their management boards, so the recognition of the need for different health professionals in healthcare management has been growing. However, physiotherapists core responsibilities remain rooted on therapeutic practices and rehabilitation, developed primarily in clinical and hospital environments. Regarding this scenario, physiotherapists functions continue to be absent to the highest healthcare management and leadership positions, despite their knowledge and understanding about how to ensure the best services to the patients. Using a mixed method approach, this investigation aimed to deepen the drivers to physiotherapists involvement in healthcare management and leadership roles. For such, we combined a cross-sectional survey was performed with 287 physiotherapists with in-depth interviews. Findings suggest that networking, knowledge regarding health legislation and policies, and soft skills development, are considered drivers to these roles, amongst other factors.
Keywords: business administration; healthcare management; leadership; physiotherapy.
Efficiency of Public Sector Banks in Achieving the Goal of PMJDY and PMMY
by VARUNA AGARWALA, Tarak Nath Sahu, Sudarshan Maity
Abstract: The present study investigates the performance of public sector banks towards their role in achieving the target of financial and social inclusion with regards to the Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Mudra Yojana (PMMY) in India. The performance has been measured using technical efficiency by applying Data Envelopment Analysis over 2015 to 2016 to 2018 to 2019. The study finds that the participation of banks is at different levels under the two schemes of PMJDY and PMMY and overall, their weighted efficiency index varies from 62.6% to 70.6%. Further, the Spearman rank correlation has been calculated to know the correlation between overall ranks according to the technical efficiency score of PMJDY and PMMY. The overall weighted efficiency index and technical efficiency scores calculated for the two schemes indicate that the public sector banks group can enhance their efficiency by escalating their output level without changing the input quantity.
Keywords: financial inclusion; social inclusion; Pradhan Mantri Jan Dhan Yojana; PMJDY; Pradhan Mantri Mudra Yojana; PMMY; technical efficiency; data envelopment analysis; DEA.
Influence of credit access on the total sales of household non-farm enterprises in Nigeria: evidence from binary logit regression
by Obed Ojonta
Abstract: This study examined the influence of credit access on the total sales performance of non-farm enterprises in Nigeria. We adopted the binary logistic regression model approach and used cross-sectional data from the general household survey (GHS) conducted in Nigeria in the period 2017/2018. Apart from the core variables, other covariates included in the analysis are official registration with the government, employee gender and age of enterprise. The findings indicate that credit access positively and significantly influences the total sales of household non-farm enterprises in Nigeria. Interestingly, the study established that official registration with government significantly impedes the total sales performance of the enterprises. This suggests that the Nigerian bureaucracy significantly retards the performance of household non-farm enterprises. The study, therefore, concludes that there is need for policies that will not only enhance credit access by these enterprises, but will also reform the Nigerian bureaucracy so that they can actively support the growth and development of these enterprises.
Keywords: credit access; enterprise performance; household non-farm enterprises; HNEs; binary logit regression model; Nigeria.
The effects of shocks on the dismissal in the electro-electronics sector: Evidence from Brazil
by Renan Mitsuo Ueda, Adriano Mendonça Souza, Welsey Vieira Da Souza, Claudimar Pereira Da Veiga, Adriano Mendonça Souza
Abstract: This research aims to investigate the short and long-term relationship between the number of dismissals in the Brazilian electro-electronics sector and the macroeconomic variables: gross domestic product, Brazils total exports, monthly average of the dollar quotation and the broad national consumer index, from May 2003 to September 2018. To verify the interrelationship between the variables, we used the vector autoregressive (VAR) models and vector error correction (VEC). The analysis of the impulse response function and the variance decomposition helped to understand the dynamics of the electro-electronics industry, showing that in the long-term, part of the variance of the sectors dismissal (28.64%) is explained by the broad national consumer index. Abrupt changes in the analysed macroeconomic variables cause fluctuations in the number of dismissals in the Brazilian electro-electronic sector for approximately four to seven months.
Keywords: electric-electronic sector; econometric models; macroeconomics; vector autoregressive; VAR; vector error correction; VEC; socio-economic planning; Brazil.
Who Escapes from Poverty? Understanding the Link Between Environmental Stress, Adaptation Choices and Poverty Dynamics in Ethiopia
by Mulat Goshu Gebeyehu
Abstract: This study aims to examine the link between environmental stress, adaptation options and poverty dynamics in Ethiopia. The study relies on three-year panel data collected by ECRC from 825 rural households in the Nile Basin of Ethiopia. Using the linear fixed effects model, the paper finds that weather variability significantly impacts households welfare. Initially, rising average rainfall positively influences households per capita spending, while extreme rising average rainfall measured by a squared average rainfall negatively affects per capita expenditure. The anomalies of precipitation and temperature have a significant adverse effect on the total per capita and food expenditures. Findings from multinomial logit model estimation prove that an increase in average rainfall would reduce the likelihood of households falling into transient poverty. In contrast, an increase in temperature would cause an increase in the probability of families falling into transient and chronic poverty. The findings suggest that policymakers and agriculture experts should strive to increase the effectiveness of existing adaptation practices and introduce new adaptation options to protect households from the devastating effects of weather variability.
Keywords: climate shocks; welfare; dynamics of poverty; Ethiopia.
Identifying the Factors Affecting Firm Performance and Growth: The Case of Italian Publicly Listed Companies
by PANAGIOTIS CHARALAMPAKIS, Antonios Georgopoulos, ILIAS MAKRIS, Stavros Stavroyiannis
Abstract: The 2008 financial crisis affected almost all of the Eurozones member states but not in the same way. Italy, the 3rd largest country member of the Eurozone, in terms of GDP, was hit heavily by the economic crisis. Italys GDP fell, income per capita has had a zero increase and gross debt has reached previously unthinkable levels. In this research, economic data of a large number of publicly listed Italian companies are examined, between 2008 and 2018. The aim is to identify common characteristics that are associated with company performance and growth during the period examined. A panel data analysis has been performed with focus on how firms financial performance and growth are being affected by their financial health, internationalisation, and size. Similar studies are presented, and their findings are compared to investigate the factors that are crucial for firm growth, especially during a recessionary period.
Keywords: financial crisis; Italy; publicly listed firms; performance; sales; debt; international sales.
Examining Attitude of Indian Consumers toward Retail Loyalty Programs: A Cluster Analysis Approach
by Renu Bhardwaj, Pavleen Soni
Abstract: In the current competitive retail scenario, managing relationships with customers is fundamental for the success of any business. Thus, retailers are striving for locking existing customers and hence, loyalty programs are becoming increasingly common in India. Therefore, the present study endeavors to touch the concerned phenomenon through the understanding of customers attitude towards loyalty programs in retailing industry. In order to achieve the aforesaid objective, data have been collected from 741 adult Indian consumers through a structured questionnaire from Delhi region. Data have been analysed through confirmatory factor analysis (CFA), cluster analysis and chi-square test. The study revealed that customers depicted overall positive attitude toward loyalty programs. More so, through the segmentation approach, three attitudinal clusters of respondents have been identified viz, relationship oriented, cherry pickers.
Keywords: loyalty programs; customer attitude; retailers; India.
The impact of a high influx of foreign workers on the Beveridge curve relation - Evidence for Malta from an ARDL approach
by David Baldacchino, Ian Cassar
Abstract: In the context of a buoyant economic expansion and labour market tightening coupled with a huge influx of foreign workers in recent years, an analysis of the matching process between the unemployed people and vacant jobs is deemed pivotal. The analysis presented in this study utilises an ARDL model to test for the existence of the Beveridge curve, and for relative shifts in the curve, and limited dependent variable models to test for the underlying factors behind the observed shifts, for the sample period 2002Q1 to 2019Q4. This study establishes that there exists a negatively slope Beveridge curve, and that there has been two inward shifts in the Beveridge curve, with the first occurring during 2012, and a second, more pronounced shift, occurring during 2016. Both shifts were predominantly driven by the influx of foreign workers, with a positive output gap also having an effect during the second inward shift.
Keywords: Beveridge curve; foreign workers; unemployment rate; vacancy rate; Malta; ARDL.
Technical Analysis Forecasting and Evaluation of Stock Markets: The Probabilistic Recovery Neural Network Approach
by Andreas Maniatopoulos, Alexandros Gazis, Nikolaos Mitianoudis
Abstract: The market efficiency theory suggests that stock market pricing reflects all publicly available information regarding a given stock. To outperform the market, a shareholder must study the markets price volume patterns and predict human behaviour and tendencies. Except for conventional approaches based on fundamental or technical analysis, new tools are currently proposed using big data and artificial intelligence. This publication analyses and evaluates four commonly used deep-learning artificial neural network models. Then, it proposes a new method by adopting the probabilistic recovery algorithmic approach. The dataset used consists of 501 unique company names based on real data derived from US Dow Jones. This method closely follows the markets behaviour, providing daily upwards-downwards data trends. The proposed system can be used as a tool for technical analysis regarding the prediction accuracy of trading strategies, providing approximately 60% future movements accuracy, over 90% relative price prediction and annual investment return slightly over 60%.
Keywords: technical analysis; probablistic neural network; neural networks; stock market prediction; stock market forecast; stock market dynamics; stock market neural networks forecasting; algorithmic trading.
Corporate Governance and Financial Performance: A study of Indian Drug and Pharma Industry
by Avani Shah, Udai Lal Paliwal
Abstract: Issues surrounding corporate governance practices assumed greater significance over the past few decades as research has proven that good corporate governance significantly influence performance of companies. Using panel data from 90 listed companies of Indian drug and pharma industry for a period of five years (2015 to 2019), the present paper analyses the influence of corporate governance on financial performance of the sample companies. Return on assets (ROA) and return on capital employed (ROCE) were used to measure financial performance. The study revealed a mixed impact as promotor shareholdings, CEO duality and firm size were positively and significantly related to firms financial performance, however, board independence, board size, leverage and liquidity were found not to have a significant impact. This study is useful as it provides some useful insights on the envisaged relationship in a specific context of Indian drug and pharma industry.
Keywords: corporate governance; financial performance; return on assets; ROA; return on capital employed; ROCE; promoter share holding; board size.
Female Entrepreneurship and Economic Crisis in EU-28: The Case of Greece
by Athanasios Anastasiou, Dimitrios Komninos, Zacharias Dermatis, Efcharis Marinopoulou
Abstract: Entrepreneurship is considered one of the most important solutions to unemployment, poverty and low economic growth. Creating new businesses and growing existing businesses are vital factors that contribute to any economy. Womens entrepreneurship is an important key factor in economic growth. Taking into account the period 2006 to 2018, we find that in Greece women entrepreneurship in its early stages is moving at slightly lower levels than in Europe and innovation countries. The high unemployment of women and the difficulties of finding dependent work seem to lead Greek women to entrepreneurship more than in European countries and innovation countries. The negative image is complemented by the fact that in Greece a woman is more likely to shut down her business compared to other European countries. The main objective of this paper is to study women entrepreneurship in the European Union crisis and the case of Greece.
Keywords: female entrepreneurship; growth; economic crisis; Greece.
A Critical study of Entrepreneurship and philanthropic activities of Diaspora in India.
by Ravikant Sharma, Mujibur Rahman, Shweta Nanda, Md Chand Rashid
Abstract: This study investigates the issues and find out the nature and extent of entrepreneurial and philanthropic diaspora contributions to socio-economic development in India, the impact and influence of Indian outbound migrants and its impact and contributions to Indian entrepreneurial activities, and extent of contribution to philanthropic activities in India. Moreover, most of the reasons of migration are for business motive, migration after marriage, search of better employment opportunities and to live good quality of life. These migrations create major changes in population dispersion and have its effects on the cities and states of India. The migration which happens inside the country by nature is classified as internal or inbound migration Therefore, This study is to explore various types of motives and purpose which induce people to migrate such type activities and also propose a holistic model for Indian entrepreneurial and philanthropic diaspora.
Keywords: Indian entrepreneurial; philanthropic diaspora; migration; communities; contribution; India.
A study on ethical management of South Korean Airlines
by Wooyoung Shin, Soonwook Hong
Abstract: The purpose of this paper is to study ethical management of South Korean Airlines. The importance of ethical management for sustainable management of firms has been gradually growing. Ethical management is divided into internal ethics and external ethics. Earnings management is known to represent internal ethics, while CSR is known to represent external ethics. Earnings management is measured by discretionary accruals, and CSR is measured by charitable contribution expenditures. The results of analyses indicated that South Korean airlines discretionary accruals were large while their charitable contribution expenditures were small. South Korean airlines can be regarded to practice more earnings management while conducting less charitable contributions. South Korean airlines are judged to be unethical both internally and externally. This paper is meaningful in that it verified the ethical management of airlines that emerged as a matter of national interest in South Korea in recent years.
Keywords: airlines; ethical management; corporate social responsibility; charitable contributions; earnings management; discretionary accruals.
Digital Transformation Impact to Media Industry
by Renato Lopes Da Costa, Luis Cabral, Leandro Ferreira Pereira, Álvaro Dias, Rui Gonçalves
Abstract: The media industry is currently in a process of adapting to the digital transformation. As the industry is increasing its volume, due to the fact that the consumers are consuming more media than before, it is important to guarantee that the customers needs are being fulfilled. After the literature review, the present article studied the opinion of some authors through a questionnaire that was used to comprehend the benefits that the digital transformation brought to the media industry, as well as understand how customers behaviour has changed over the past years. In this sense, a new consumption style was identified, which is the involuntary one, where people really dont have the intention of using a content. To sum up, the present article pretends to characterise the media industry and the clients behaviour, in a digital context, where processes must be changed in order to adapt to the eminent changes.
Keywords: digital transformation; media industry; customer behaviour; digital business.
YOUTH UNDEREMPLOYMENT IN TURKISH LABOUR MARKET
by Fatih Hakan Dikmen, Dilek Basar Dikmen
Abstract: The aim of this study is to examine the factors affecting youth underemployment in Turkish labour market using nationally representative household labour survey (HLS) provided by Turkish Statistical Institute (TurkStat) for 2016 and 2018 and are to reveal the changes occurring in two years of period. In order to estimate youth underemployment, the logistic regression method is performed in the empirical analysis. The analysis is carried out for young people between the ages 15 to 24. The findings indicate that females are more likely to be underemployed as compared to males for both 2016 and 2018. Furthermore, young individuals graduated from university or masters are more likely to be underemployed for both years. The most important variable explaining the underemployment is the informal sector and individuals working in informal sector are more likely to be underemployed. Considering to sectors, agricultural sector has more risk in terms of underemployment as compare to other sectors.
Keywords: underemployment; Turkish labour market; logistic regression model; household labour survey; HLS; youth employment.
INTEREST RATE LIBERALIZATION TO BANKS RISK RESISTANCE: MODERATOR OF STRATEGIC LEADERSHIP AND MEDIATOR OF MONETARY POLICY TRANSMISSION
by Sze Ting Chen, Zijing He, Kai Yin Allison Haga, Yao Jun Fan
Abstract: This paper aims to investigate the influence of two missing aspects and to explore whether the liberalisation has had any influence on commercial banks risk resistance capacity? This article considers 288 data. Analyses include the Sobel test, the ADF stationarity test, and the VAR model co-integration test. Our results show that Chinas interest rate marketisation reform has a positive effect on reducing bank risk. Commercial bank anti-risk capabilities can improve both Chinas monetary policy transmission and strategic leadership capabilities. This article showing that appropriate laws and regulations should be strengthened to reduce the risk of bankruptcy that commercial banks may face as a consequence of interest rate liberalisation. This paper contributes to the theory of interest rate liberalisation and anti-risk capability, by conceptualising from strategic leadership and monetary policy transmission theory. It finds that market-oriented rate reform has increased interest rate risk.
Keywords: interest rate liberalisation; monetary policy transmission; risk resistance; strategic leadership; VAR.
Interaction between commodity market and cryptocurrencies
by Fathi Jouini, Ahlem Messai, Ines Mhadheb
Abstract: The aim of this study is to show that the Bitcoin market is not isolated but is rather influenced by commodity markets in terms of return and volatility. We used the return of Bitcoin, crude oil, gold, silver and wheat for a period from 3 January 2011 to 22 November 2017. Based on the EGARCH model estimate, the main results indicated that Bitcoin return is positively but weakly influenced by returns of crude oil, gold, silver, and wheat. The results also show an inverse relationship between the volatility of crude oil and Bitcoin. So Bitcoin is a strong hedge against energy products. For gold, silver and wheat, the absence of risk transmission to the Bitcoin market suggests diversification opportunities following investors to use Bitcoin with any of the three assets to reduce the portfolio risk.
Keywords: Bitcoin; volatility; commodity.
Funding Higher Education as a Strategic Good of a Nation
by Mahmoud Askari, Ghaleb A. El Refae
Abstract: In this paper, we propose that higher education should be seen as a strategic good of nations. We argue that higher education is neither a private, nor a public good, and that its facilitation by governments, and its attainment of citizens is critically required for the wellbeing of a nation. As well, we use the partnership funding model of higher education as a framework to facilitate the strategic investment in higher education by economically capable governments. We used enrollment and funding data from Al Ain University, UAE as a case to examine the percentage of students who were able to secure government funding to pay their tuition fees. Result from this paper shows that higher education is considered as a strategic good in the UAE, and that all willing and able citizens can benefit from the availability of tuition free higher education at three publicly-funded academic institutions. As well, the UAE Government is providing funding to almost half of the students who choose to attend other tuition-based colleges and universities.
Keywords: strategic goods; higher education funding; the partnership funding model; public vs. private good; UAE.
The influence of the absorptive capacity and the position of the firm in the cluster on coopetition
by Sérgio Begnini, Silvia S. Simi, Carlos E. Carvalho
Abstract: This research investigates the influence of absorptive capacity (ACAP) and the clusters position on firm coopetition. The academic investigation of the relationships established between firms is fundamental. Three hypotheses were tested from the original data collection. The sample consisted of 77 firms from an agribusiness cluster. Structural equation modelling was used through SmartPLS 2.0 software. It is concluded that: 1) firms ACAP influences its coopetition, that is, the more ACAP, the more coopetition will be generated; 2) relationships established in the cluster enable firms to maintain/improve their position; 3) the relationships held by the firm with other firms will impact its position in the cluster, and this position will influence its ability to cooperate. On practical issues, companies that participate in a cluster develop their capacity to act cooperation, becoming competitively stronger as they invest in learning.
Keywords: coopetition; competition; cooperation; absorptive capacity; position in the cluster; agribusiness; firms; strategic actions; external information; managers.
The Extent of Awareness for the International Public Sector Accounting Standards (IPSAS) In the United Arab Emirates Emerging Market
by Khulood Salem Alshehhi, Jawaher Sultan Alteniji, Shaikha Khamis Alshamsi, Walaa Wahid ElKelish, Iman Hani Iwhish
Abstract: This paper explores the extent of the International Public Sector Accounting Standards (IPSAS) awareness and determinants in the United Arab Emirates (UAE) emerging market. Data was collected using a survey instrument. This paper uses the multiple regression analysis (OLS) to test the study hypotheses. The results show that respondents have a moderately high awareness of the IPSAS adoption. The implementation of IPSAS improves the decision-making quality, reporting transparency and efficiency. Respondents indicate low IPSAS adoption costs and support the IPSAS adoption preparation. Besides, IPSAS awareness depends on the perceived benefits of decision-making and reporting quality improvements and organisation size. The respondents work experience, organisation service activities and type are vital determinants of the IPSAS benefits. This paper provides useful guidelines for professional accountants, managers and organisations to improve the IPSAS adoption process.
Keywords: International Public Sector Accounting Standards; IPSAS; awareness; emerging markets; United Arab Emirates; UAE.
Integrated index of competitiveness as a basis for analysis of management systems for sustainable development of the territory
by Halyna Raiko, Dmytro Vasylkivskyi, Natalia Kovalska, Irina Shvets, Yuriy Shvets, Serhii Makarenko, Nataliia Oliinyk, Serhii Rybachok, Olha Kravchuk, Vitalii Kovalov
Abstract: The article is devoted to the study of economic aspects of territorial systems management, taking into account the experience of Ukraine based on the definition of regional competitiveness. An algorithm for calculation of the competitiveness index, which allows assessing qualitatively the advantages and disadvantages of a particular territorial system and affects its development in the future, has been described. A method of calculation the competitiveness index, consisting of five stages, has been developed. It allows in a real-time assessment of effectiveness of a territorial system. Promising ways of further research of territorial systems are introduced.
Keywords: territorial system; competitiveness index; factor analysis; strategic management; sustainable development.
Nexus among foreign direct investment, domestic investment, financial development and economic growth: a NARDL approach in Pakistan
by H.M. Sohail, Zengfu Li
Abstract: One of the most recent issues has been the relationship between foreign direct investment and economic development in host economies. This paper examines the nonlinear relationship between economic growth, foreign direct investment, domestic investment, and financial development using annual time series data from 1970 to 2019. We used the nonlinear auto-regressive distribution lag (NARDL) co-integration technique. The results show the positive effects of FDI and DI are more significant than the negative effects and follow a nonlinear direction. As a result, policymakers should tighten their hold on FDI channeling and effectively enforce regulations in order to boost Pakistans economic development.
Keywords: economic growth; foreign direct investment; domestic investment; nonlinear ARDL; Pakistan.
The Role of Logistics Performance Index on Trade Openness in Europe
by Mahmoud Barakat, Tarek Madkour, Abeir M. Moussa
Abstract: Logistics performance index is essential for local and regional economic development. Emerging research investigated the impact of logistics services on international trade at both company and country levels. However, there is a lack of studies that focus on the relationship between logistics and trade openness. This paper seeks to shed light on the role of logistics performance index with its six dimensions on trade openness in European countries. For this purpose, panel data are used to determine the effect of logistics performance index in these countries trade openness, taking as control variables the macroeconomic indicators. The results show that logistics performance index is significantly affecting trade openness in the European continent. This means that better logistics performance can be considered one of the important reasons for increasing trade openness in all European countries and reducing trade costs.
Keywords: logistics performance index; LPI; trade openness; Europe; panel data; econometrics.
The Business and Environmental Impacts of the Canadian Mandatory Greenhouse Gas Reporting Program
by Keith Brouhle, Donna Ramirez Harrington
Abstract: This research investigates the impact of Canadas mandatory greenhouse gas reporting program on firms share price and future environmental performance. First, we examine whether stock market prices are affected by investors response to publicly disclosed greenhouse gas (GHG) information. Second, we test whether abnormal stock price changes lead to lower GHG emissions. We find that investors punish firms whose emissions intensity increased but their losses are mitigated with previous voluntary GHG reporting. Observed improvements in environmental performance were small and limited to the dirtiest firms. These findings imply a narrow scope for information provision as a GHG mitigation policy tool.
Keywords: information disclosure; event study; climate change; GHG emissions.
The nexus of financial liberalization and economic growth: Is Vietnam different
by Thi Thuy Hang Le, Nga Hang Thi Phan, Xuan Dung Nguyen, Vu Than Nguyen
Abstract: This paper explores the relationship of economic growth and financial liberalisation in Vietnam, an emerging economy with remarkable changes since 2000. By drawing the quarterly dataset over the period 20-year starting from 2000 and the vector error-correction model estimation, our findings support the causal relationship among the set of macroeconomics determinants, such as credit rate, money supply as well as exchange rate. After controlling rigours determinants, we found that these two factors exhibit the causality in short-term and long-term. From this starting point, the relevant policy implications are drawn to highlight the process of liberalising the financial system as well as the list of non-conforming reservation measures (NCM) during the proposed negotiation process.
Keywords: economic growth; financial liberalisation; Vietnam.
Drug Overdose Deaths and Economic Factors: An Empirical Analysis of US Counties, 2009-2016.
by Suzan Odabasi
Abstract: Drug abuse has grown to be a very serious public health and economic problem in the USA. Economies are greatly impacted by drug abuse because of the financial costs of prevention programs, treatments, and rehabilitations. This study investigates the impacts of county-level economic and social conditions on the drug overdose deaths in the USA. Using data from the US Centres for Disease Control and Prevention (CDC), the US Census Bureau, and the Centres for Medicare and Medicaid Services (CMS) from 2009 to 2016, this study modelled associations between drug overdose deaths and socioeconomic and medical factors. Count data using Poisson regression is employed for four observation groups: females, males, individuals higher than 45 and, individuals under 45. The average county-level drug overdose deaths were relatively higher among males by nearly 25.6 deaths in 100,000 populations. The results show that drug overdose deaths significantly increase with higher uninsured population for each observation groups. In addition, among socioeconomic factors, median household income and social participation are negatively related to drug overdose deaths in per 100,000 people.
Keywords: well-being; health economics; economic development.
A Conceptual Framework of the Entry Mode Choices Determinants : The Ownership- Location-Internalization Approach
by Sujinda Chemsripong
Abstract: Entering the international market is a crucial strategy for foreign direct investment. Difference market entry models, such as exports, licensees, franchises, complete management, affiliated companies, and venture capital will affect investments in terms of risk, return, and corporate governance for a successful international business. This research aimed to study the key factors influencing the decision to choose a model and the expected returns using a crucial concept of ownership advantage, location advantage, and internalisation advantage (OLI) advantage to describe international entry patterns. This paper used the multinomial logistic regression model and categorical regression to estimate regression model in hypothetical tests, utilising data from 125 Thai companies that invested in Cambodia, Laos, Myanmar, and Vietnam. Based on Thailands investment model and their international relationship, this paper will focus on the conceptual framework variables such as firm size, international experience, the ability to develop differentiated products, market potential, investment risk, and contractual risk.
Keywords: conceptual framework; entry mode choice; foreign direct investment; FDI; OLI approach.
An analysis of Asia-Pacific regional integration: Time-varying SVAR approach
by Essahbi Essaadi, Awatef Ourir
Abstract: Regional economic integration in East and Southeast Asia has reached considerable transformation in a few years. Considering the critical role of trade integration in the integration process, we study whether East and Southeast Asian countries are influenced by specific, regional, or global shocks. The novelty of the paper is that we look after regional integration as an evolutionary process. To detect dynamic changes in the variance decomposition analysis, we apply a time-varying SVAR model. Our main finding is that when we consider the nonlinear aspect of the integration process in East and Southeast Asia, conclusions about its suitability for currency union change completely. TVP-SVAR model is used to revisit the economic integration process in the East and Southeast Asian region. Japan outperforms China and the USA as a regional anchor for most countries in the last dates. The large specific shock brings us to the point that the region is neither a yen nor a yuan nor a dollar block, but is tending towards a yen block.
Keywords: East Asia; Southeast Asia; monetary union; TV-SVAR model.
An Analysis of Intra-SAARC Trade Relations
by Nikhat Khalid
Abstract: World is composed of geographical regions comprising clusters of countries having physical contiguity. This premise motivated the South Asian countries to form SAARC in 1985. SAARC envisioned to enhance trade and commerce among the member states. In 1993, they initiated SAPTA to liberalise tariff barriers and created SAFTA in 2004 to make South Asia a trading zone. Despite these initiatives, many pitfalls and hiccups did not allow SAPTA and SAFTA to bloom. This paper attempts to empirically examine intra-regional trade among SAARC countries through their bilateral trade intensity index, intra-regional trade intensity index and intra-regional trade share. The study found that most SAARC countries have their trade priorities outside the region. Their intra-regional trade stands at just 5.8%. To reduce this economic disconnect, SAARC countries need to come forward to enhance cross border trade, for which an open and more inclusive trading system and political will is required.
Keywords: South Asian Association of Regional Cooperation; SAARC; intra-regional trade; regional integration; trade responsibility; welfare state; geographical contiguity; economic cooperation.
Financial Sector Development and Credit Risk: An insight of BRICS countries using Continuously Updated Fully Modified and Continuously Updated Bias Corrected Methods
by Aamir Syed, Mohd. Kamal
Abstract: The impact of financial sector development on non-performing loans (NPLs) among emerging countries is inconclusive. For this purpose, the study investigates the relationship between financial sector development and NPLs among BRICS countries, covering the period from 1995 to 2018. The study has used a novel continuously-updated fully-modified (CUP-FM), and continuously-updated bias-corrected model (CUP-BC) for long-run estimation, together with CIPS, CADF second-generation unit root test, and Westerlund cointegration analysis. The findings infer that financial intermediation in terms of banks deposits to GDP ratio and private credit to GDP ratio negatively impact NPLs in the long run. Furthermore, financial sector efficiency, financial sector stability, and regulatory capital help in reducing NPLs in the long run in BRICS countries. However, the study highlight that financial sector liberalisation in terms of foreign banks presence has an insignificant relationship with NPLs in BRICS countries in the long run. This study offers useful policy implications.
Keywords: financial sector development; credit risk; CUP-FM; CUP-BC; BRICS; non-performing loans; NPLs.
Scale of Cultural Values of Generation Y: The case of Aburra Valley -Colombia
by Sandra Milena Palacio López, Yuri Lorene Hernández Fernández, Javier A. Sánchez-Torres, Oscar Velez
Abstract: Generation Y is increasingly influencing society through its purchasing power and as an entity influencing other generations, so understanding its behaviour is relevant for designing strategies in different socio-economic fields. This article seeks to identify the inventory of values that regulate the behaviour of generation Y. The study used a mixed research approach. The collage technique and in-depth interviews were used for the qualitative approach, and a questionnaire applied to 330 participants was used for the quantitative approach. The results show a generation that seeks independence and stimulation, and its life guidelines are the values related to affection and the environment. These results are relevant for designing strategies in different socioeconomic areas.
Keywords: culture; values; cultural dimensions; cultural behaviour; cultural values; personality; consumer behaviour; young boys; generation Y; Colombia.
Current Assets Management: A Comparative Study between Nascent and Established Entrepreneurs
by Najib H. S. Farhan, Ebrahim Al-Matri, Eissa A. Al-Homaidi, Fozi Belhaj, Waleed M. Alahdal
Abstract: This study aims to find out how current assets are being managed by both Nascent and established entrepreneurs in India. Moreover, it attempts to investigate the effects of current assets management on the profitability of the firms. The examination of this paper is depending on a panel data method of 1,371 Indian entrepreneurs, for the period from 2016 to 2017. Least square regression models are used for estimating the results. The study found that net trade cycle positively and significantly affects established entrepreneurs liquidity. Furthermore, current assets to total assets ratio significantly impact entrepreneurs profitability and nascent entrepreneurs profitability. This study is motivated to bridge an existing gab in the literature by finding out how current assets are being managed by both nascent and established entrepreneurs in India which has not been considered yet as per the knowledge of authors, which makes this study of novel contribution to the literature.
Keywords: current assets management; net trade cycle; liquidity; nascent entrepreneurs; established entrepreneurs.
From the university ecosystem to the entrepreneurial ecosystem - the way for developing of the local economy
by Walter Vesperi, Ineza Gagnidze
Abstract: The modern world faces a number of significant economic and social challenges. It is essential to find the key tools, which will contribute to mitigate the expected problems. The authors suggested that education (human capital) represents one of these tools. In this context the way from the university ecosystem to the entrepreneurial ecosystem is discussed as a tool for developing the local economy. The experience of 40 countries in the process of forming entrepreneurial universities has been studied and eight main challenges have been identified. To achieve this, the study uses a qualitative exploratory methodology. Specifically, it was decided to analyse the country Italy. The results offer a theoretical framework on the concepts of entrepreneurial students and university ecosystem.
Keywords: entrepreneurial universities; university ecosystem; entrepreneurial ecosystem; entrepreneurial students; local economy; business incubators; academic entrepreneurship; knowledge transfer system.
Assessing Socio-demographic Characteristics of Fintech Users: An Empirical Study on Mobile Money in Pakistan
by Misbah Noreen, Md. Shahin Mia, Zahiruddin Ghazali
Abstract: In Pakistan, the usage of FinTech particularly mobile money services is very poor. In addition, the socio-demographic characteristics of the mobile money users in the country has not been studied well. Therefore, this study aims to examine the socio-demographic characteristics of FinTech users, particularly the mobile money users in Pakistan. The study conducted a cross-sectional survey to collect the data at the household level. It was found that an overwhelming portion of the mobile money users in Pakistan are males (93%) while females are very few (7%) in numbers. The study also found that the majority of the respondents (67%) are from the urban locality. The study provides an insight into socio-demographic profiling of the mobile money users that might help the policymakers to design a policy to enhance the usage of mobile money services in Pakistan.
Keywords: socio-demographic characteristics; FinTech; mobile money users; Pakistan.
Perceived Fundamental Characteristics for Successful HR Managers: A Qualitative Thematic Study within Organisations Operating in the United Arab Emirates
by Fadi Sakka, Mohammed Ghadi
Abstract: This paper examines the required characteristics for successful HR managers within the context of the UAE. The research undertakes an exploratory study to investigate the required characteristics as described by industry experts working in firms operating in the country. It identifies 57 firms from various industries in the UAE. The results indicate that successful HR managers in the UAE should have an education, vocational certification in human resources management, fit in the organisation culture, agile and people-oriented person and trustworthy. The results obtained are going to be helpful and realistic for a newly appointed HR manager to be active managers immediately once hired. This is the first study to be conducted in the UAE. It produces knowledge and understanding of the unique characteristics of successful HR managers narrowing it down to the UAE context as compared with common ones fragmented generally in research.
Keywords: HR managers; successful characteristics; emerging economies; UAE.
Related Party Transactions, Earnings Management and Governance Mechanism in Emerging Markets: The Case of GCC Countries
by Gehan Mousa, Abdelmohsen M. Desoky, Mohamed Yassin
Abstract: The main purpose of this study is to examine the impact of earnings management (EM) and some governance mechanisms on related party transactions (RPTs) of listed firms in four emerging stock markets which are members of the Gulf Cooperation Council (GCC). A sample of 454 firm-year observations is used during a four-year period (2016-2019). Four models of hierarchical multiple regression (HMR) are performed to regress five independent variables (firm EM, AC independence, the number of AC meetings, AC size and EXQ) on RPTs which are represented by two main transactions (purchases of goods from RP and sales of goods to RP). Linear HMR regression models indicate that only two independent variables (firm EM and EXQ) are significantly explaining both dependent variables of RPTs, and they are not explained by any AC independent variable. Findings of this study suggest that the mere presence of RPTs does not necessarily suggest that firms management engage in greater earnings management. This study may afford additional valued insights on factors affecting RPTs.
Keywords: related party transactions; earnings management; audit committee attributes; external audit quality.
The mediating effect of digital supply chain management among the relationship between lean management and supply chain operations
by Ghufran Hijjawi, Mohammad Mousa, Ali Al- Quran, Hanan Almomani, Mohammad Alhalalmeh, Sulieman Al-hawary
Abstract: The study aimed at examines the mediating effect of digital supply chain management among the relationship between lean management and supply chain operations of the manufacturing companies operating in Jordan. The population of the study consists of the managers of the manufacturing sector of Jordan which includes garments, electronics, automobiles, and electronics. The sample size was 445 participants belonging to the manufacturing industry of Jordan. The analysis was carried out using structural equation modelling (SEM) technique on smart PLS. It was identified based on the analysis that technology has a significant impact on the supply chain operations of the companies. On the other hand, the communicative and structural dimensions were also found to have a positive and significant impact on supply chain operations. With respect to the mediation, the partial mediation of digital supply chain was determined among the relationship between lean management and supply chain operations of the company in the context of technology and communicative and structural dimensions.
Keywords: supply chain operations; digital supply chain; lean management; manufacturing companies; Jordan.
THE RELATIONSHIPS BETWEEN CANADIAN FIRMS LOBBYING ACTIVITIES AND THEIR MARKET AND ACCOUNTING PERFORMANCE
by Saidatou Dicko
Abstract: The main objectives are to highlight the nature and scope of lobbying activities carried out by Canadian firms, and analyse the link between these activities and firm market and accounting performance indicators. Data on companies listed on the S&P/TSX index were analysed, covering the period from 2009 to 2018, inclusive. The main findings show that 26.6% of the firms under study have engaged in lobbying, with this proportion consisting, on average, of larger firms. The two industries at the forefront of these activities were mining, oil and gas, and manufacturing. Most of the lobbying activities under study focused on economic and multiple issues. While bivariate analyses (ANOVA and correlations) show that these activities in their scope and nature are significantly related to market and accounting performance indicators, multivariate GLM analyses demonstrate that only the variable
Keywords: lobbying activities; economic lobbying; environmental lobbying; social lobbying; multi-issue lobbying; firms; market and accounting performance.
DYNAMIC VOLATILITY SPILLOVER ACROSS STOCK MARKETS OF INDIA AND ITS TRADING PARTNERS- AN EMPIRICAL INVESTIGATION
by Ruchika Kaura, Namita Rajput
Abstract: This study investigates the nature of volatility transmissions between India and its 14 major trading partners based on their benchmark stock market indices covering time period from January 2013 to May 2020. The results of EGARCH model provide that significant bi-directional volatility spillover exists between India and 4 of its trading partners; unidirectional volatility spillover exists from 6 of its trading partners towards India; unidirectional volatility spillover exists from India towards three of its trading partners and volatility spillover between India and one trading partner is not found significant. The results of DCC-GARCH model reveal that time-varying/dynamic nature of the conditional correlation exists for all the pairs of stock market indices. The findings of the study have useful implications for portfolio managers, international investors and regulators for devising diversification strategies and for policy arrangements to bring stability of an economy from international financial shocks and crisis.
Keywords: volatility spillover; financial markets; DCC-GARCH model; India; EGARCH model.
Comparative Role of Income and Social Inequality in Migration Decision Making: A Household Level Analysis of India
by Debasis Chakraborty
Abstract: This paper tries to analyse the relative role played by income and social inequality in rural-urban migration decision-making, exploring household level primary data of India. The study has used various income and social inequality indices, namely, economic well-being, Gini coefficient, multidimensional poverty index (MPI), etc. Results show that income factors, specifically absolute income differences rather than relative income inequalities, are the most dominant reason. Rural people are least bothered about multidimensional deprivation as result shows that less multidimensionally poor are migrating in higher numbers. While comparing the pre- and post-migration scenario, it has been found that the rural out-migrants have become more multidimensionally poor once they migrate into urban areas. Hence rural-urban migration is found to be welfare reducing. The logistic regression results show that families from scheduled castes and scheduled tribes are more multidimensionally poor and distance from nearby market is one of the key determinants of multidimensional poverty.
Keywords: migration; income inequality; social inequality; deprivation; multidimensional poverty index; MPI; India.
Exiting the Market by Mergers and Acquisitions. Does the Crisis Matter
by RICCARDO CAPPELLI, Marco Cucculelli
Abstract: M&A have been extensively and thoroughly studied as a result of a decision on exiting the market. Most attention has been directed to M&A occurring during business booms when numerous deals take place and prices are high. Conversely, least attention has been devoted to M&A during a crisis or just after recessionary periods. Using a sample of 358 mergers that occurred in Europe before (145) and after (213) the financial crisis, this paper explores if and to what extent the innovation profile of incumbents affects the exit decisions through M&A before and after the crisis. Internal R&D and product innovations are major drivers of deals in young industries, whereas process innovation plays a crucial role in mature industries. Patents are the only key innovation drivers of M&A after the crisis, both in young and mature industries. We furnish here some explanations of the mechanisms behind these emergent behaviours.
Keywords: mergers and acquisitions; firm exit; financial crisis; R&D; product innovation; process innovation; patent; economic cycle; industry life-cycle; uncertainty.
Accounting Standards and External Corporate Governance. The effect of mandatory IFRS adoption on Analyst Coverage.
by Mohammed Almaharmeh, Ali Shehadeh
Abstract: This study investigates whether mandatory adoption of International Financial Reporting Standards (IFRS) affects financial analysts decisions to cover the firms with their earnings per share forecasts. The results suggest that mandatory adoption of IFRS attracts more security analysts to follow the firms. Where the IFRS variable records a significant positive effect on the analyst coverage variable, this result is robust with ordinary least squares and fixed-effect models based on ten years before and ten years after the adoption data.
Keywords: International Financial Reporting Standards; IFRS; financial analysts; analyst coverage; corporate governance; external corporate governance; the UK.
The Linkage among Socio-economic Indicators and Life Expectancy in Selected ASEAN+3 Countries
by Noorazeela Zainol Abidin, Mai Syaheera Miau Shaari
Abstract: The improvement in medical technology indirectly contribute to increasing life expectancy. Besides, a good health service system can also help to overcome the various health problems. However, the rising on treatment costs, levels of education, standards of living and the drop of mortality rates can lead to a decline in life expectancy. Therefore, this study was conducted to investigates the linkages between socioeconomic indicators and life expectancy in selected ASEAN+3 countries from 1991 to 2019 by using panel static method. The results obtained show that there are significantly positive relationships between education and health spending on life expectancy while interaction between dummy country and life expectancy show a negative relationship. Therefore, these findings are important for policy makers to formulate policies in increasing life expectancy based on socioeconomic indicators for each countries.
Keywords: life expectancy; education; ASEAN+3; health spending.
Moderating Impact of Innovation Work Behaviour on the Relationship between Entrepreneurial Leadership and Competitive Advantage: An empirical study on Retail Industry of Jordan
by Mohammad Alhalalmeh, Essa Al Tarawneh, Mohammad Eldahamsheh
Abstract: The study aims to examine the moderating impact of innovation work behaviour on the relationship between entrepreneurial leadership and competitive advantage. A survey questionnaire and primary quantitative study were designed with the sample size of 560 carried out for the purpose of data collection. The researchers used SEM techniques for the determination of the model. The findings section consists of various tests such as measurement model and structural model executed through AMOS. The analysis determined that there is a partial effect of entrepreneurial leadership over the cost advantage, service variety advantage and service quality advantage. Moreover, the moderation of idea exploration was significant in the case of service quality advantage with entrepreneurial leadership. Lastly, the moderation of idea implementation was insignificant as to the relationship of entrepreneurial leadership with cost advantage and service quality advantage while it was statistically significant with the service variety advantage.
Keywords: innovative work behaviour; IWB; entrepreneurial leadership; competitive advantage; retail industry; Jordan.
Respecting the Principles of Competition and Consumer Protection in Liquidation Sales: A Comparative Study
by Tariq Kameel, Nour Alhajaya, Fayez Alnusair, Mohammad Alkrisheh
Abstract: This article discusses the most relevant restrictions placed upon liquidation sales to respect the principles of competition, avoiding involvement in anti-competitive practices, mainly as liquidations involve the reduction of the prices of goods. Additionally, the article discusses the assurances placed when obtaining authorisation for liquidation sales that seek to protect consumer rights, concluding with a description of the researchs most important results and recommendations. Its connection and impact the realm of consumer protection but are also relevant to the principles of fair market competition. Its significant effect on consumers to exercise their freedom choice freely and transparently without any restrictions. Laying safeguards to protect consumers within the principles of free market. The paper aims is examine the legal framework of liquidation sales in the legal systems of the countries understudy and its impact on consumers interests the precautions and safeguards within the legal systems understudy.
Keywords: liquidation sales; consumers; competition laws; suppliers.
Examining and Analyzing the Determinants of Non Performing Assets in Public and Private Sector Banks in India
by Swati Singh, Manpreet Arora
Abstract: No doubt that the Indian financial sector is growing at an efficient rate but at the same time growth rate of non-performing assets (NPAs) of the banks are also increasing. There is a high variation of growth of these NPAs among different groups of banks. This paper examines the effect of various important variables on net NPAs. Panel data regression is used for analysing the data. For the analysis purpose, dataset of 20 public sector banks and 18 private sector banks from year 2009 to 2019 is considered. Data is collected from various reports of RBI. GMM model is applied to solve the problem of endogeneity. Results and analysis showed that capital adequacy tier I, net interest margin, burden ratio and bank size have negative and significant effect on NPA, whereas intermediation cost showed positive and significant effect on NPA.
Keywords: banking sector; non-performing assets; NPAs; generalised method of moments; GMM; endogeneity; India.
The impact of gender on financial performance: Evidence for Portuguese SMEs
by Luis Pacheco
Abstract: The relationship between gender and profitability in the context of small and medium enterprises (SMEs) is a less studied topic in the broader context of performance determinants. Thus, the objective of this paper is to examine whether womens leadership of the firms board of directors and senior management teams enhances financial performance. Contributing to fill this research gap and based on the agency and stakeholder theories, it is used a balanced panel data of 4,806 Portuguese SMEs for the period from 2010 to 2019. The results from the random-effects model evidence the absence of a broad significant relationship, albeit with some slight evidence of a negative relation, moderated by firm age and present in some specific sectors of activity. Given the SMEs importance in the majority of countries, the results and implications of this paper can be generalised to other economies, albeit country specific cultural and legal issues should be taken in consideration.
Keywords: financial performance; gender diversity; SMEs; agency theory; stakeholder theory.
Brand Index: A New Suggestion for Stock Market Indices
by Semra Bank, Evrim Erdogan Yazar
Abstract: The aim of this paper is to propose a new index for stock markets called the brand index. The paper measures the performance of the brand index in terms of return and risk and compares this performance with the performance of other indices. The brand index is calculated for the period of 20072018; it is composed of the firms included in Brand Finance Turkey 100 annual reports published by Brand Finance and also listed on the Borsa Istanbul (BIST). The performance of the brand index is compared with the performance of three alternative share indices (BIST30, BIST50 and BIST100). The results show that the brand index has the highest performance in all performance measures compared to benchmark indices, yielding higher returns with lower risk. Accordingly, the brand index could be an alternative index for investors willing to invest in an index mutual fund or exchange traded funds. This is the first paper to propose a brand index in terms of an emerging market. This index consisting of strong brands is proposed as an alternative index that can be calculated in the capital markets, especially since the index is advantageous for investors in index funds.
Keywords: brand index; brand equity; brand value; performance measures; emerging markets.
Foreign Direct Investment, Business Extortion and Drug Trafficking
by Rafael Espinosa Ramirez
Abstract: We develop a theoretical model in which a country hosts foreign investment in the presence of a drug dealer, acting as leader, and a drug seller, acting as a follower. A policy addressed to eradicate drug trafficking encourages the business extortion activity, and increase the extortion cost of firms. When the drug is not consumed in the host country the best policy is not to fight against drug trafficking. When the drug is consumed in the host country the optimal policy depends on the social marginal disutility of drug consumption concerning extortion paid by firms. In this case, when social marginal disutility is sufficiently larger than extortion payment, the government combats drug trafficking, otherwise, there is no policy at all.
Keywords: drug trafficking; foreign direct investment; FDI; business extortion; public policy; crime economy; drug consumption disutility; extortion payment; social marginal disutility; extortion cost.
Challenging Factors Influencing University Students' Intention and Experience on Online Learning: An Analysis Using Berge Model
by Azleen Ilias, Nasrudin Baidi, ERLANE K. GHANI, Fazlida Mohd Razali
Abstract: This study examined the Malaysian university students experience of online learning (OL) usage challenges during the COVID-19 pandemic using Berge model among gender, experience, and intention. It examined the association between experience of online learning usage and intention to use online learning. This study surveyed 436 students via the electronic questionnaire. The view on technical skills and learner motivation are different among genders. Furthermore, students with experience and no experience on online learning have different views on academic skills. Students that have intention and no intention to use OL have different views on social interactions, academic skills, time and support for studies, cost and access and technical problems. The experience of OL usage has shown an association with intention to use OL. This study contributes to the implementation of OL that involves instructors and students and the motivation to use OL with instructors preparedness, teaching content, time, and voice usage.
Keywords: online learning; OL; COVID-19; Malaysia; survey; university students; Berge model.
The impact of corporate long term tax avoidance and tax uncertainty on cost of equity capital: evidence from Korea
by Minjo Kang
Abstract: This study aims to investigate the impact of Korean firms long-run tax avoidance on the cost of equity capital. To the end, we examine whether long-term tax avoidance and tax uncertainty are associated with the cost of equity capital. According to the implicit tax theory, tax-favoured investments can decrease the firms expected operating income. Besides, implicit taxes generated by tax credit can have distributional effects: the tax benefits shift to other stakeholders than the shareholders of the firms opting for the legitimate tax avoidance. We find results that, controlling for firms various risk factors, Korean firms long-run tax avoidance is positively associated with higher cost of equity capital. The results suggest that the unfavourable implicit tax effects of long-run tax avoidance dominate the favourable tax saving effects for the part of shareholders.
Keywords: cost of equity capital; long-run tax avoidance; implicit tax; tax uncertainty; Korea.
Role of Real Estate in Financial Instability: French Evidence
by Asma Saad, Muhammad Arslan, Ahmad Alqatab
Abstract: This paper evaluates the place of residential real estate in the stability of the French financial system. By employing three-stage least-squares (3SLS), we analysed the dynamic interaction between the real estate credit market and the evolution of real estate prices. This interaction creates a destabilising spiral that expounds the housing bubbles formation. In France, as in most developed countries, the increase in real estate credits was accompanied by an increase in property prices. Our estimate shows that an increase in home credit increases home prices and vice versa. Therefore, we conclude that there is a relationship of interaction between the two markets leading to a destabilising spiral. The study has important implications for policymakers and investors. The use of macroprudential policy is justified by the ineffectiveness of micro-prudential policy and monetary policy alone in ensuring the stability of the financial system. Monetary policy, via the interest rate, could not prevent the development and subsequent outbreak of the 2007 financial crisis. Existing studies are limited in exploring the interaction between the growth rate of real estate prices and the number of loans to housing in the French context. This study adds value to existing literature and confirms this interaction.
Keywords: housing; financial; macroprudential; 3SLS; monetary; French.
Management of innovative development of the national economic system in conditions of global acceleration of scientific and technological progress
by Aleksandr GERSHANOK, Evgeny MALYSHEV
Abstract: The problems of innovative development of countries in terms of accelerating scientific and technological progress have been studied in this article. The authors identified five main factors having a major impact on the success of the innovative economy. The authors introduce the concept of the quality of the economic and political system to assess the conditions of innovative business. The necessary requirements to the quality of the national economic system in the conditions of the innovative economy development have been defined. For the first time, the authors introduced a system of assessing the quality of the economic and political systems of the country in the innovative economy. The authors propose a multi-factor model of managing the countrys innovative development using the integral quality factor of the economic system. The model is based optimal conditions for the successful functioning of the innovative companies in the national economic environment.
Keywords: innovation; quality; development; conditions; psychology; rationality; responsibility; self-organisation; motivation; management.
A Spatial bivariate copula regression analysis of youths access to ICT resources and subjective well-being in the Middle East
by Ibrahim Niankara, Ghaleb A. El Refae, Amer Qasim
Abstract: This study relies on a spatial bivariate copula regression analysis of data on youth respondents from five Middle Eastern countries, extracted from the 2018 wave of the Program for international students assessment (PISA) survey. Focusing specifically on evaluating the availability of ICT resources to the youth population, and also identifying the impact of ICT resources on youth subjective well-being in the region, we find that only the UAE and Qatar have above OECD average ICT resource index value. The within region cross-country comparative analysis also highlights significant ICT access heterogeneity across the five countries. Furthermore, controlling for not only cross-country spatial correlations, and factors such as economic and socio-cultural status, we find that every standard deviation increase in youths access to ICT resources in the region raises their subjective well-being by 1.88% standard deviations.
Keywords: Copula Regression; ICT resources; Middle East; Spatial Analysis; Students Well-being; Sustainable Development Goals.
Investors Decision-making in Equity Crowdfunding
by Nabila Allouche, Abdelfettah BOURI
Abstract: Equity crowdfunding is a way to finance new businesses. Given that the means of communication are limited, this study relies on signalling theory to examine the signals that may influence the decision of investors to invest in equity financing through crowdfunding platforms. This study used a sample of 320 projects listed on crowdcube between April 2017 and December 2018 regarding equity crowdfunding campaigns in the UK. The relationship between each type of signal and the level of success of equity crowdfunding has been tested empirically using binary logistic regression, ordinary least squares regression analysis, and negative binomial regression. The results of our research show that higher retention of equity shares by entrepreneurs, board experience and/or education and the information about the companys strategy to distribute dividends have a positive impact on the success of the financing of a project. In addition, financial forecasts and rewards contribute to a higher probability of success. In contrast, exit strategy, social media, and the duration of the company have little or no impact on funding success.
Keywords: equity based crowdfunding; signaling mechanism; entrepreneurial finance; information asymmetry; crowdfunding platform.
Value preferences for rewards and loyalty programmes of South African financial institutions
by Johan Coetzee, Louis Raubenheimer
Abstract: This study investigates the impact of value preferences on relational outcomes such as loyalty and repeat purchase behaviour that customers of financial institutions (FIs) have towards their rewards and loyalty programs (RLPs). Using a structural equation model, the results indicate that utilitarian, hedonic and symbolic value drivers are all positively associated with perceptions of delight, satisfaction, trust, attitudinal and behavioural loyalty. Symbolic value drivers were found to have a particularly strong association with perceptions of delight and satisfaction. Although a strong positive relationship was found between attitudinal loyalty and repeat purchase behaviour, no significant relationship was found between behavioural loyalty and repeat purchase behaviour. The findings suggest that if RLPs provide a comprehensive ecosystem reflecting aspects of all the value drivers, customers will be more likely to exhibit true loyalty towards the program of the FI if symbolic rewards are particularly prominent due to eliciting higher-order psychological relational outcomes.
Keywords: rewards and loyalty programs; RLPs; financial institutions; banks; attitudinal loyalty; behavioural loyalty.
Technical Efficiency of Smallholder Sunflower Farmers in Singida, Tanzania: the Application of the Zero-Observations Approach
by Felister Tibamanya, Mursali Milanzi
Abstract: Improving agricultural productivity is crucial for enhancing income and alleviating poverty for the majority of farm households in sub-Saharan Africa. However, fostering productivity requires a good understanding of farm-level technical efficiency (TE). While earlier studies have examined TE across the globe, the current study applies rarely used the Zero-Observation Approach to compare the performance of the Translog and the Cobb-Douglas stochastic frontier models, based on 269 randomly selected smallholder sunflower farmers in Singida, Tanzania. The findings suggest that the Translog stochastic production frontier model fits our data better than the Cobb-Douglas stochastic production frontier model in the context of the zero-observation approach. The zero-observation inputs such as improved sunflower seeds and non-zero observation inputs such as land significantly influence sunflower output and technical efficiency. In addition, using this approach, some sunflower farmers were found to be fully technically efficient. Thus, suggest that the provision of improved sunflower seeds is imperative.
Keywords: technical efficiency; zero-observations approach; smallholder sunflower farmers; stochastic frontier; Tanzania.
Business practice via Social Media platforms in the Emirate of Dubai as a Model
by Murad Al Mawajdeh
Abstract: The use of social media websites such as Facebook, Twitter, Instagram, and Snapchat have gained increased popularity in recent times. However, the lack of detailed legislation regulating the practice of business activities via social media may give rise to many difficulties, especially concerning the suitability of the current legal framework and whether such framework copes sensibly with the needs of online consumers. This paper thus explores how UAE laws engage with businesses conducted via social media to determine whether or not these laws give due attention to consumer protection in an online environment. Furthermore, this paper briefly addresses the main challenges that may be confronted when licensing e-merchants to practice their commercial activities via social media.
Keywords: social media; consumer protection; Dubai; marketing.
Transmission of the 2010 Greek sovereign debt crisis to Asia-Pacific stock markets: A copula-based approach
by Salma Jayech, Emna Abdennadher
Abstract: The objective of this paper is to detect the contagion effect of the 2010 sovereign debt crisis in the euro area on the stock markets of 12 countries in Asia-Pacific. We have used a new approach based on the copula theory. The obtained results show the transmission of this crisis by pure contagion of the American index to the share indices of Australia, Hong Kong, the Philippines, Singapore and Taiwan, which is not the case for the Greek share index where we have noticed the existence of a strong interdependence between markets after the crisis, and not a contagion. Contagion has fundamental importance in the financial markets because of these consequences on the global economy in terms of monetary policy, international diversification, risk measurement and assets valuation.
Keywords: Greek sovereign debt crisis; Financial contagion; Asia-Pacific stock markets; Copula theory.
The Returns to Field of Study in Turkish Labor Market: A Pseudo-Panel Approach
by Bilge Eris Dereli
Abstract: This study employs pseudo-panel fixed-effects approach to estimate the returns to field of study in Turkey. Repeated cross sections of Turkish Labor Force Surveys between 2016-2019 are used. Year of birth and region are used as grouping variables. The results indicate significant earnings differences across field of study when cohort-fixed effects are controlled. Relative to the base field, Education Sciences, there are higher returns to Environmental Sciences & Mathematics & Statistics and Engineering & Manufacturing & Architecture and Health & Welfare. On the other hand, there are lower returns to Social Sciences & Journalism. The earnings differences are insignificant for the fields Art & Humanities & Languages and Business Administration & Law and Agriculture & Veterinary. These findings are important both for an individuals subject choice at university and education policies targeting to allocate resources more effectively to tertiary education.
Keywords: Keywords: Returns to field of study; pseudo-panel; Turkey.
Increasing the Rigor and Relevance of Elementary Microeconomics
by Brett D. Steele
Abstract: This paper redresses analytical weaknesses in elementary microeconomics from both short-run and long-run perspectives. By assuming variable production-time periods, the U-shaped average variable-cost curve in the short-run is shown to be valid only for perishable or non-storable products. The J-shape production curve, by contrast, is more appropriate for durable products that account for the vast majority of industrial production. While its validity has long been acknowledged in neoclassical economics, this paper subjects it to a graphical profit-maximisation analysis under both rigid- and flexible-production assumptions. To redress the reticence in elementary microeconomics to offer a profit-maximisation analysis under the long-run condition of variable investment factors, a basic profit equation is presented in terms of production/sales rate, production-system investment, and advertising investment. Profit-maximising production rate and investments are then determined graphically, leading to a rigorous explanation of economies of scales. The paper concludes by highlighting the role elementary microeconomics can play in introducing undergraduate students to strategic reasoning by integrating analytically the supply side and demand side of business management.
Keywords: U-shaped curve; J-shaped curve; knife-shaped curve; production-time periods; flexible production; profit maximisation; production-system investment.
Data envelopment analysis for decision-making units: a comparison of the relative efficiency of banks in the Kingdom of Bahrain
by Minwir Al-Shammari, Mohamed Sayed Abou Elseoud
Abstract: The study aims to measure and compare the relative efficiency of conventional retail and Islamic banks in the Kingdom of Bahrain over the period 2017 to 2019. The study adopts the input input-oriented CCR and BCC models of data envelopment analysis to compute both the aggregate efficiency scores of each banks group and the efficiency score of each bank. The sample of banks includes six conventional banks and six Islamic banks. At the same time, the selected inputs are total deposits, fixed assets, and owners equity, whereas outputs are credits facilities, total operating income, and net profit. The main findings show that both banks groups are efficient during the study period. At the level of individual banks, the conventional retail banks are more efficient than the IRBs in 2017 and 2019, while there are no significant differences between the efficiency in 2018. Finally, the study identified input and output slacks of inefficient banks, and it suggested the efficient input and output targets for improvements.
Keywords: Islamic banks; conventional banks; data envelopment analysis; DEA; CCR; BBC; relative efficiency; comparative efficiency; Bahrain.
Economic determinants of the crisis phenomena in modern Russia: endogenous and exogenous approach
by Alla B. Meshcheryakova, Tatiana A. Sapunova, Andrey V. Sapunov, Samvel S. Malkhasyan, Elina R. Rafikova
Abstract: The research is aimed at identification the economic determinants of the crisis phenomena of modern Russia in terms of endogenous and exogenous approaches. The authors proved that at each stage of the development of society, the economic crisis acquires unique properties that are characteristic of this particular period of time and the established social way of society life, the political regime and state administration. The authors confirmed three research hypotheses: 1) infrastructure and price fluctuations in the most important sectors of the economy can lead to crisis consequences regardless of the dynamics of changes; 2) the current economic situation in Russia has all the signs of an overproduction crisis; 3) the development of foreign trade under the influence of pandemic and epidemiological risks is a determining factor that strengthens the crisis trends in the Russian economy.
Keywords: economic crisis; causes of the crisis; overproduction; endogenous approach; exogenous approach; Russia.
Analysis of the Main Problems and Issues in Arbitration of the Foreign Investment Disputes: The Concept of Investment Dispute and Multiciplity of Arbitration Disputes Relating to the Same Investment
by Nour Alhajaya, Ramzi Ahmad Madi, Tariq Kameel
Abstract: Perhaps the most important problem with arbitration as a means of settling investment disputes, is to identify the concept of the investment dispute, identify parties, and indicate the criteria that are adopted to determine whether we are going to invest or not. Accordingly, we have identified in this research what is meant by an investment dispute, the parties to that dispute, and the criteria upon which to determine whether there is an investment or not, including: 1) the capital contribution to the host countrys economy over a certain period of time that allows for the building of continuous links between the investor and the host country; 2) giving the investor the right to exercise real influence and control over the management of his investment project; 3) this investment generates income; 4) investment is at particular risk and 5) stimulating the economic development of the host country. We have also identified the other problem facing arbitration in investment disputes, namely, the multiplicity of arbitration disputes relating to the same dispute, and the need to apply the positive and negative impact of binding force of res judicata and to deny other solutions to this problem.
Keywords: arbitration; investment dispute; foreign investor.
Genders and sexual harassment: the perception of Vietnamese employees via Sexual Experience Questionnaire
by XUAN QUYET PHAM, Viet Tien Ho
Abstract: Sexual harassment is a hidden problem of any workplace, not only in Vietnam but also worldwide. Sexual harassment commonly happens in the service industry since the employees frequently contact different guests or partners. Understanding sexual harassment and the levels of perceptions in different genders in the service industry will help to justify the solutions for upcoming problems. Using the sexual experience questionnaire of 390 respondents in Vietnam, the article reveals that females more significantly perceive sexual harassment than males in terms of gender harassment and sexual coercion. In contrast, both genders generally tolerate unwanted sexual attention. The results support the previous research in the same area since females are still the primary victims of sexual harassment at work. The recommendations help each company focus more on the employees to prevent any negative impacts from sexual harassment and purify the entire service workspace.
Keywords: sexual harassment; genders; Vietnamese employees; sexual experience questionnaire; SEQ.
ANALYZING COSTS AND MARGINS OF SMALLHOLDER FARMERS IN THE COFFEE VALUE CHAIN: M4P APPROACH
by ThiHong Nguyen, Dang Trung Tuyen, Nguyen Ngoc Trung, Tran Cuong
Abstract: The study attempted to analyse costs and margins of smallholder
farmers involved in the coffee value chain in Dak Lak province the coffee
capital of Vietnam. Data was collected through a survey and assessed by
applying M4P approach. ARIMA model was used for forecasting the costs and
margins over time. The results revealed that coffee growing households receive
the highest profits and create the highest value added in the chain. In the shortterm, coffee farmers bear less price volatility risk than coffee manufacturing
and exporting enterprises, but in the long-term, this risk will gradually shift
from manufacturing and exporting companies to them.
Keywords: ARIMA model; coffee value chain; costs and margins; Dak Lak coffee; M4P approach.
Health and Time Allocated to Market and Household Work in Turkey
by Burcu Duzgun Oncel
Abstract: I examine the association between health and time allocation to market work and household work by using Turkish Time Use Survey in 2014. I define household work as the sum of time devoted to non-market work and leisure. In supplement to previous studies on the subject regarding Turkey, I consider two new aspects. One of these aspects I assess is the intertemporal component of time allocation decisions. The other aspect I cover is the potential selection bias of health status in time allocation decisions. For the former purpose, I focus on non-student, non-retired individuals. For the latter, I apply propensity score matching (PSM). Examining these two aspects, I find that as health improves, time devoted to market work significantly rises and time devoted to leisure falls for both males and females in this group. I also find that the association between health and time use on non-market activities is insignificant for males.
Keywords: health status; time use; propensity score matching; PSM; Turkey.
Reforms and Political Instability in Attracting Foreign Direct Investment: A simoultaneous equations approach
by Walter Morales, Javier Barbero, Fernando Ubeda
Abstract: present work aims to identify the elements that condition the attraction of foreign direct investment (FDI) to Latin America, a region that has achieved heterogeneous results under different reforms to improve its economic growth but that has not been exempt from political instability. In this regard, we first estimate this phenomenon through a probit model as a latent variable and then estimate a simultaneous equation model to describe the relationship between FDI, economic growth and political instability, addressing the problems of endogeneity and reverse causality, which are common in these dynamics. The procedure used also allows us to correct the problems related to heteroskedasticity and autocorrelation. The results show that FDI is conditioned by political instability and the latter by the reforms and their momentum. In addition, a favourable institutional framework of freedom and economic growth complements the attraction of FDI.
Keywords: simultaneous equations; political instability; foreign direct investment; FDI; reforms and economic growth.
Effect of Deal Size on M&A outcome on HR parameters : An empirical analysis
by VIRENDER SINGH, Girish Chandra Maheshwari, Rajan Yadav
Abstract: Mergers and acquisitions (M&A) are critical to achieving growth in intense globalisation for healthy and inorganic expansion of business firms. However, a relatively large number of M&A fail or can achieve suboptimal results. Previous studies that have attempted to analyse failed cases of M&A have focused on financial or strategy perspectives, thus not being able to explain the causes of failure. This accentuates the need to shift the focus to more qualitative human aspects that drive the social-cultural adjustment process in M&A. Our analysis of the impact of size on M&A (HR) outcomes shows a significant influence on the deal size. The content analysis and regression results of 48 cases show that large firms are able to better integrate, though the outcome varies across acquirer country-developed and developing. Tranching and deal size customisation can be strategic for optimal M&A HR outcomes.
Keywords: merger and acquisition; size; takeover; synergy; satisfaction; human integration; affective commitment; culture; achievement; change management and turnover.
Financial Development and Banking Industry Stability
by Rexford Abaidoo, Elvis Kwame Agyapong
Abstract: The banking industry plays an important role in the development of economies globally. This study examines the importance of the banking industry to the development of the financial system in Sub-Saharan Africa (SSA) by specifically verifying the effect of four bank stability variables on development of the entire financial system. Data for the study were compiled from 19 countries in the sub-region from 2001 to 2018; and the empirical estimates performed using the Prais-Winston panel corrected standard errors (PW-PCSE) estimation technique. The results suggest that bank liquid reserves and bank Z-score have significant positive effect on financial development. Growth in non-performing loans on the other hand is found to be inimical to the development of the financial sector all things being equal. The results further show that inflation uncertainty has significant positive moderating influence on bank liquid reserves financial development and non-performing loans financial development nexuses.
Keywords: financial development; banking industry stability; Prais-Winston panel corrected standard errors; PW-PCSE; governance quality; inflation uncertainty.
The antecedents to efficient working capital management (EWCM): Evidence from Turkish manufacturing sector
by Mumtaz Ali, Mehdi Seraj, Hüseyin Özde?er
Abstract: The purpose of this paper is to empirically analyse the influence of endogenous and exogenous factors on efficient working capital management (EWCM) of the Turkish manufacturing sector and analyse the impact of components of cash conversion cycle (CCC) on the performance, i.e., return on assets (ROA). Two-step generalised moment method (GMM) is used to extract the results using penal data of 133 firms in the manufacturing sector listed on Borsa Istanbul Turkey, consisting seven industries for the time period of eight years from 2012 to 2019. Results evidenced significant influence of endogenous (firm size, profitability, leverage, cash flow ratio) on CCC for manufacturing sector, while industry results are mixed. In addition, results of components of CCC and performance are significant. The sample has been taken from Turkey, and the results are generalisable in the emerged economy only. Therefore, comparative analysis of emerged and emerging economy can be done in future.
Keywords: working capital management; WCM; generalised moment method; GMM; manufacturing sector; Turkey.
Credit Risk and Bank Specific Factors: an Empirical Study using Panel GMM
by Renuka Sharma, Kiran Mehta
Abstract: The issue raised in current research has significant implications for the banking sector. Banks across the world are highly exposed to credit risk. The current situation of the banking sector in all major markets and the recent financial crisis of 2008 intensified the concern of economists to improve the credit risk management policies of banks. The increasing default rate in corporate loan portfolios and consumer loan portfolios increase the non-performing assets, which can lead to the banking crisis. The current study has explored the extant literature to identify the bank-specific factors affecting the credit risk of banks. The study under consideration is based on secondary data and has applied dynamic panel GMM regression to examine the impact of bank-specific factors on credit risk on Indian banks. The results thus obtained are useful for managers responsible for controlling the credit risk of bank, regulators, policymakers and researchers.
Keywords: credit risk; bank-specific factors; dynamic panel GMM regression; Indian bank.
Novel approach to consumer loyalty: A case study of hospitality service organisations among Generation X and Y
by Mei Kei Leong, Kamelia Chaichi
Abstract: Consumer loyalty is considered one of the significant factors that affect market growth and consumer behaviour. Regardless of the numerous studies on customer loyalty, the authors found no empirical study that elaborates on the importance of customer loyalty across generations. The majority of previous studies have proposed customer engagement and customer involvement as one construct in predicting customer loyalty. Thus, the current research tries to fill this gap in the literature by proposing a new model of customer loyalty blends multidimensional consumer involvement as predictors, multidimensional consumer online engagement as a mediator, and finally the moderating role of different generations (X and Y) in the hospitality services context. Present research collected (N = 390) data from Malaysia hospitality service organisations and the data were analysed using structural equation modelling. The results approve all the direct relationships as well as the moderating effect of generation generations X and Y. Moreover, the results confirm the mediating role of consumer online engagement among consumer involvement dimensions and consumer loyalty. The current study highlights significant implications to facilitate and increase consumer loyalty in the hospitality services context, especially in the airline, and hotel industries.
Keywords: consumer loyalty; consumer involvement; consumer online engagement; airlines; hotels; hospitality industry.