Subjects -> BUSINESS AND ECONOMICS (Total: 3570 journals)
    - ACCOUNTING (132 journals)
    - BANKING AND FINANCE (306 journals)
    - BUSINESS AND ECONOMICS (1248 journals)
    - CONSUMER EDUCATION AND PROTECTION (20 journals)
    - COOPERATIVES (4 journals)
    - ECONOMIC SCIENCES: GENERAL (212 journals)
    - ECONOMIC SYSTEMS, THEORIES AND HISTORY (235 journals)
    - FASHION AND CONSUMER TRENDS (20 journals)
    - HUMAN RESOURCES (103 journals)
    - INSURANCE (26 journals)
    - INTERNATIONAL COMMERCE (145 journals)
    - INTERNATIONAL DEVELOPMENT AND AID (103 journals)
    - INVESTMENTS (22 journals)
    - LABOR AND INDUSTRIAL RELATIONS (61 journals)
    - MACROECONOMICS (17 journals)
    - MANAGEMENT (595 journals)
    - MARKETING AND PURCHASING (116 journals)
    - MICROECONOMICS (23 journals)
    - PRODUCTION OF GOODS AND SERVICES (143 journals)
    - PUBLIC FINANCE, TAXATION (37 journals)
    - TRADE AND INDUSTRIAL DIRECTORIES (2 journals)

PRODUCTION OF GOODS AND SERVICES (143 journals)                     

Showing 1 - 137 of 137 Journals sorted alphabetically
Asia Pacific Journal of Marketing and Logistics     Hybrid Journal   (Followers: 8)
Asian Journal of Marketing     Open Access   (Followers: 5)
Australasian Marketing Journal (AMJ)     Hybrid Journal   (Followers: 4)
BMC Health Services Research     Open Access   (Followers: 22)
Capital Markets Law Journal     Hybrid Journal   (Followers: 4)
Cleaner Environmental Systems     Open Access  
Cleaner Production Letters     Hybrid Journal  
Cleaner Waste Systems     Open Access   (Followers: 2)
Consumption Markets & Culture     Hybrid Journal   (Followers: 6)
Customer Needs and Solutions     Hybrid Journal   (Followers: 4)
Direct Marketing An International Journal     Hybrid Journal   (Followers: 4)
Disaster Prevention and Management     Hybrid Journal   (Followers: 30)
Economic & Labour Market Review     Hybrid Journal   (Followers: 13)
Electronic Markets     Hybrid Journal   (Followers: 6)
Emerging Markets Review     Hybrid Journal   (Followers: 10)
European Journal of Marketing     Hybrid Journal   (Followers: 22)
Financial Markets, Institutions & Instruments     Hybrid Journal   (Followers: 38)
Food Packaging and Shelf Life     Hybrid Journal   (Followers: 3)
Foundations and Trends® in Marketing     Full-text available via subscription   (Followers: 11)
Future Business Journal     Open Access   (Followers: 2)
Global Journal of Emerging Market Economies     Hybrid Journal   (Followers: 1)
Health Services and Outcomes Research Methodology     Hybrid Journal   (Followers: 6)
Health Services Management Research     Hybrid Journal   (Followers: 16)
Health Services Research     Hybrid Journal   (Followers: 18)
i+Diseño : Revista científico-académica internacional de Innovación, Investigación y Desarrollo en Diseño     Open Access  
Independent Journal of Management & Production     Open Access   (Followers: 1)
Ingeniería y Competitividad     Open Access  
International Journal of Advanced Operations Management     Hybrid Journal   (Followers: 7)
International Journal of Bank Marketing     Hybrid Journal   (Followers: 4)
International Journal of Business and Emerging Markets     Hybrid Journal   (Followers: 1)
International Journal of Business Forecasting and Marketing Intelligence     Hybrid Journal   (Followers: 3)
International Journal of Electronic Marketing and Retailing     Hybrid Journal   (Followers: 5)
International Journal of Emerging Markets     Hybrid Journal   (Followers: 3)
International Journal of Entrepreneurial Venturing     Hybrid Journal   (Followers: 1)
International Journal of Financial Services Management     Hybrid Journal   (Followers: 1)
International Journal of Information Systems and Supply Chain Management     Full-text available via subscription   (Followers: 10)
International Journal of Inventory Research     Hybrid Journal  
International Journal of Lean Six Sigma     Hybrid Journal   (Followers: 8)
International Journal of Logistics Economics and Globalisation     Hybrid Journal   (Followers: 3)
International Journal of Managing Projects in Business     Hybrid Journal   (Followers: 3)
International Journal of Market Research     Hybrid Journal   (Followers: 14)
International Journal of Nonprofit & Voluntary Sector Marketing     Hybrid Journal   (Followers: 7)
International Journal of Pharmaceutical and Healthcare Marketing     Hybrid Journal   (Followers: 4)
International Journal of Planning and Scheduling     Hybrid Journal   (Followers: 2)
International Journal of Product Development     Hybrid Journal   (Followers: 1)
International Journal of Production Economics     Hybrid Journal   (Followers: 19)
International Journal of Production Management and Engineering     Open Access   (Followers: 4)
International Journal of Production Research     Hybrid Journal   (Followers: 13)
International Journal of Productivity and Quality Management     Hybrid Journal   (Followers: 4)
International Journal of Quality and Service Sciences     Hybrid Journal   (Followers: 2)
International Journal of Quality Innovation     Open Access   (Followers: 4)
International Journal of Research in Marketing     Hybrid Journal   (Followers: 18)
International Journal of Service Industry Management     Hybrid Journal   (Followers: 1)
International Journal of Services and Standards     Hybrid Journal   (Followers: 1)
International Journal of Services Operations and Informatics     Hybrid Journal   (Followers: 1)
International Journal of Services Sciences     Hybrid Journal  
International Journal of Supply Chain and Inventory Management     Hybrid Journal   (Followers: 7)
International Journal of Supply Chain and Operations Resilience     Hybrid Journal   (Followers: 3)
International Journal of Supply Chain Management     Open Access   (Followers: 15)
International Journal of Systems Science : Operations & Logistics     Hybrid Journal  
International Journal of Technology Marketing     Hybrid Journal   (Followers: 3)
International Journal of Trade and Global Markets     Hybrid Journal   (Followers: 2)
Internet Reference Services Quarterly     Hybrid Journal   (Followers: 33)
JCMS : Journal of Common Market Studies     Hybrid Journal   (Followers: 48)
Journal of Advances in Management Research     Hybrid Journal   (Followers: 1)
Journal of Benefit-Cost Analysis     Hybrid Journal   (Followers: 2)
Journal of Business & Industrial Marketing     Hybrid Journal   (Followers: 8)
Journal of Business Logistics     Hybrid Journal   (Followers: 8)
Journal of Business Venturing     Hybrid Journal   (Followers: 29)
Journal of Cleaner Production     Hybrid Journal   (Followers: 27)
Journal of Consumer Marketing     Hybrid Journal   (Followers: 19)
Journal of Database Marketing & Customer Strategy Management     Hybrid Journal   (Followers: 5)
Journal of Direct Data and Digital Marketing Practice     Hybrid Journal   (Followers: 6)
Journal of Emerging Knowledge on Emerging Markets     Open Access  
Journal of Entrepreneurial Finance     Open Access  
Journal of Financial Markets     Hybrid Journal   (Followers: 28)
Journal of Food Products Marketing     Hybrid Journal   (Followers: 1)
Journal of Foodservice Business Research     Hybrid Journal  
Journal of Global Marketing     Hybrid Journal   (Followers: 4)
Journal of Global Operations and Strategic Sourcing     Hybrid Journal   (Followers: 1)
Journal of Health Services Research and Policy     Hybrid Journal   (Followers: 16)
Journal of International Consumer Marketing     Hybrid Journal   (Followers: 9)
Journal of International Financial Markets, Institutions and Money     Hybrid Journal   (Followers: 19)
Journal of Loss Prevention in the Process Industries     Hybrid Journal   (Followers: 7)
Journal of Marketing     Full-text available via subscription   (Followers: 51)
Journal of Marketing Communications     Hybrid Journal   (Followers: 11)
Journal of Marketing Education     Hybrid Journal   (Followers: 7)
Journal of Marketing Research     Full-text available via subscription   (Followers: 70)
Journal of Nonprofit & Public Sector Marketing     Hybrid Journal   (Followers: 5)
Journal of Operations and Supply Chain Management     Open Access   (Followers: 6)
Journal of Political Marketing     Hybrid Journal   (Followers: 3)
Journal of Prediction Markets     Full-text available via subscription   (Followers: 1)
Journal of Product Innovation Management     Hybrid Journal   (Followers: 23)
Journal of Production Research & Management     Full-text available via subscription   (Followers: 3)
Journal of Productivity Analysis     Hybrid Journal   (Followers: 4)
Journal of Progressive Human Services     Hybrid Journal   (Followers: 1)
Journal of Public Policy & Marketing     Full-text available via subscription   (Followers: 14)
Journal of Relationship Marketing     Hybrid Journal   (Followers: 7)
Journal of Retailing and Consumer Services     Hybrid Journal   (Followers: 5)
Journal of Service Research     Hybrid Journal   (Followers: 6)
Journal of Services Marketing     Hybrid Journal   (Followers: 11)
Journal of Strategic Marketing     Hybrid Journal   (Followers: 11)
Journal of Targeting Measurement and Analysis for Marketing     Hybrid Journal   (Followers: 1)
Journal of Technology Management & Innovation     Open Access   (Followers: 5)
Journal of the Academy of Marketing Science     Hybrid Journal   (Followers: 25)
Journal of Vacation Marketing     Hybrid Journal   (Followers: 2)
Logistics     Open Access   (Followers: 1)
Logistics Journal     Open Access   (Followers: 2)
Management and Administrative Sciences Review     Open Access  
Management and Production Engineering Review     Open Access   (Followers: 1)
Manufacturing & Service Operations Management     Full-text available via subscription   (Followers: 17)
Marketing Intelligence & Planning     Hybrid Journal   (Followers: 4)
Marketing Letters     Hybrid Journal   (Followers: 10)
Marketing Review     Full-text available via subscription  
Marketing Science     Full-text available via subscription   (Followers: 34)
Psychological Services     Full-text available via subscription   (Followers: 4)
Psychology & Marketing     Hybrid Journal   (Followers: 10)
Qualitative Market Research: An International Journal     Hybrid Journal   (Followers: 3)
Quantitative Marketing and Economics     Hybrid Journal   (Followers: 4)
Reproduction Fertility and Development     Hybrid Journal   (Followers: 4)
Review of Pacific Basin Financial Markets and Policies     Hybrid Journal  
Revista Eletrônica Academicus     Open Access  
Revue Interventions économiques     Open Access   (Followers: 1)
Service Business     Hybrid Journal   (Followers: 1)
Service Oriented Computing and Applications     Hybrid Journal   (Followers: 2)
Service Science     Full-text available via subscription   (Followers: 1)
Services Marketing Quarterly     Hybrid Journal   (Followers: 5)
Social Marketing Quarterly     Hybrid Journal   (Followers: 6)
Strategy Management Logistics     Open Access   (Followers: 2)
Supply Chain Forum : an International Journal     Full-text available via subscription   (Followers: 7)
Sustainable Production and Consumption     Full-text available via subscription   (Followers: 1)
Technology Operation Management     Hybrid Journal  
The Journal of Futures Markets     Hybrid Journal   (Followers: 6)
The Service Industries Journal     Hybrid Journal   (Followers: 4)
Universal Journal of Industrial and Business Management     Open Access  
Venture Capital: An International Journal of Entrepreneurial Finance     Hybrid Journal   (Followers: 1)
WPOM - Working Papers on Operations Management     Open Access   (Followers: 1)

           

Similar Journals
Journal Cover
International Journal of Emerging Markets
Journal Prestige (SJR): 0.474
Citation Impact (citeScore): 2
Number of Followers: 3  
 
Hybrid Journal Hybrid journal   * Containing 4 Open Access Open Access article(s) in this issue *
ISSN (Print) 1746-8809 - ISSN (Online) 1746-8817
Published by Emerald Homepage  [360 journals]
  • Strategic asset-seeking foreign direct investments by emerging market
           firms: the role of institutional distance

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      Authors: Yang Yang , Jia Xu , Jonathan P. Allen , Xiaohua Yang
      Abstract: This study examines the impact of formal and informal institutional distances on the foreign ownership strategies of emerging market firms (EMFs). This is an empirical study relying on two sets of data collected over two time periods, 2006–2008 and 2017–2019, for publicly-listed Chinese companies. Greater formal institutional distances in the host and home countries make EMFs less likely to use joint ventures (JVs), while greater informal distances make EMFs more likely to use the JVs. When both formal and informal institutional distances are high, the use of JVs is more likely. These results are affected by the goal of the foreign direct investment (FDI) project, with strategic asset-seeking (SAS) FDI projects favoring the use of wholly owned subsidiaries (WOSs). This study relies on cross-sectional data from publicly-listed Chinese companies, which may limit the generalizability of the findings. EMFs investing in advanced countries should carefully assess the tradeoffs between transactional cost efficiency and legitimacy in making their foreign ownership decisions. If the goal is to access strategic assets, EMFs should consider WOSs to ensure the transfer of strategic assets and create value for the parent company. The findings show that formal and informal distances between institutions have different impacts on foreign ownership strategies, providing empirical evidence for the need to balance conflicting cost-efficiency and legitimacy considerations when businesses make such strategic decisions. The authors show how this balance depends on the goal of the FDI project.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-17
      DOI: 10.1108/IJOEM-04-2020-0346
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Procyclicality of loan-loss provisions and competitive environment –
           a global perspective

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      Authors: Małgorzata Anna Olszak , Iwona Kowalska
      Abstract: Despite the extensive debate on the impact of bank competition on risk-taking, there is no evidence of its role in procyclicality of loan-loss provisions (LLPs). The purpose of this study is to find out what is the role of competition in the procyclicality of LLPs. Using over 70,000 bank-level observations in 103 countries in 2004–2015 and the LLPs model, this study interacts competition with business cycle to check what is the effect of competition on procyclicality of LLPs. This study finds that intense competition is associated with more procyclicality of LLPs. Increased procyclicality of LLPs in a more competitive environment is binding for high-income countries. The opposite effect is shown for low-income countries. Future research can be extended by testing the role of additional factors – such as regulations, supervision or institutional protection of shareholders' rights, in the association between procyclicality and competition. The main message of this paper is that the competitive environment changes the procyclicality of LLPs. The results are important from the point of view of the COVID-19 pandemic because government interventions during lockdowns will affect competition in the banking industry and in other industries of the economy. This paper contributes to the extant research in three dimensions. First, it shows that competition is an important factor behind procyclicality of LLPs. Second, it adds to the research on the links between competition and financial stability. Third, it shows that the link between competition and procyclicality of LLPs depends on the economic development of the country in which the banks are located.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-13
      DOI: 10.1108/IJOEM-01-2022-0060
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Identifying and analysis of key flexible sustainable supply
           chain management strategies toward overcoming the post-COVID-19 impacts

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      Authors: Tazim Ahmed , Chitra Lekha Karmaker , Sumaiya Benta Nasir , Md. Abdul Moktadir
      Abstract: The emerging markets are facing a lot of risks and disruptions across their supply chains (SCs) due to the deadly coronavirus disease 2019 (COVID-19) pandemic. To mitigate the significant post-COVID-19 consequences, organizations should modify their existing strategies and focus more on the key flexible sustainable SC (SSC) strategies. Still now, a limited number of studies have highlighted about the flexible strategies what firms should adopt to reduce the rampant effects in the context of emerging markets. This study presents an integrated approach including Delphi method, Bayesian, and the Best-Worst-Method (BWM) to identify, assess and evaluate the importance of the key flexible SSC strategies for the footwear industry in the emerging market context. The results found the manufacturing flexibility through automation integration as the most important flexible SSC strategy to improve the flexibility and sustainability of modern SCs. Also, developing omni-channel distribution and retailing strategies and increasing the level of preparedness by using artificial intelligent are crucial strategies for overcoming the post-COVID-19 impacts. The novelty of this research is that the research connects a link among flexible strategies, SCs sustainability, and the impacts of the COVID-19 pandemic. Moreover, the research proposes a novel and intelligent framework based on Delphi and Bayesian-BWM to identify and analyze the key flexible SSC strategies to build up sustainable and robust SCs which can withstand in the post-COVID-19 world.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-10
      DOI: 10.1108/IJOEM-12-2021-1830
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Barriers to achieving sustainability in pharmaceutical supply chains in
           the post-COVID-19 era

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      Authors: Sharmine Akther Liza , Naimur Rahman Chowdhury , Sanjoy Kumar Paul , Mohammad Morshed , Shah Murtoza Morshed , M.A. Tanvir Bhuiyan , Md. Abdur Rahim
      Abstract: The recent pandemic caused by coronavirus disease 2019 (COVID-19) has significantly impacted the operational performances of pharmaceutical supply chains (SCs), especially in emerging economies that are critically vulnerable due to their inadequate resources. Finding the possible barriers that continue to impede the sustainable performance of SCs in the post-COVID-19 era has become essential. This study aims to investigate and analyze the barriers to achieving sustainability in the pharmaceutical SC of an emerging economy in a bid to help decision-makers recognize the most influential barriers. To achieve the goals, two decision-making tools are integrated to analyze the most critical barriers: interpretive structural modeling (ISM) and the matrix of cross-impact multiplications applied to classification (MICMAC). In contrast to other multi-criteria decision-making (MCDM) approaches, ISM develops a hierarchical decision tool for decision-makers and cluster analysis of the barriers using the MICMAC method based on their driving and dependency powers. The findings reveal that the major barriers are in a four-level hierarchical relationship where “Insufficient SC strategic plans to ensure agility during crisis” acts as the most critical barrier, followed by “Poor information structure among SC contributors,” and “Inadequate risk management policy under pandemic.” Finally, the MICMAC analysis validates the findings from the ISM approach. This study provides meaningful insights into barriers to achieving sustainability in pharmaceutical SCs in the post-COVID-19 era. The study can help pharmaceutical SC practitioners to better understand what can go wrong in post-COVID-19, and develop actionable strategies to ensure sustainability and resilience in practitioners' SCs.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-04
      DOI: 10.1108/IJOEM-11-2021-1680
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • How export-oriented SMEs from emerging markets respond to the CSR-related
           code of conduct: a content analysis of auditing reports

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      Authors: Changdong Chen , Yunxia Zhu , Ruochen Jiang , Lifeng Zhu
      Abstract: This study aims to explore how emerging SMEs respond to the multifaceted contents of CSR-related code of conduct (COC) from external stakeholders and the underlying constraining forces and mechanisms shaping such responses. This study opted for a qualitative methodology using the content analysis, and the data were collected from the auditing reports on Chinese export-oriented SMEs carried out by a public and independent third-party agency. The findings showed that SMEs from emerging markets present a short-termism orientation in the response to external CSR-related COC, and the study developed a threefold response typology implemented by SMEs, capturing economic interest and moral rightness as two dimensions shaping such responsive patterns. The study furthermore showed that whether SMEs' responses are more symbolic or substantive depends on managers' beliefs regarding the economic-moral conflict tension involved in the implementation of CSR-related COC. This paper explores emerging SMEs' response strategy to CSR-related issues formulated by external stakeholders and clarifies the underlying decision-making road map to alleviate the tension involved in corporate social responsibility implementation.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-04
      DOI: 10.1108/IJOEM-12-2021-1808
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The link between corporate governance, corporate social sustainability and
           credit risk of Islamic bonds

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      Authors: Awais Ur Rehman , Saqib Farid , Muhammad Abubakr Naeem
      Abstract: Motivated by lack of empirical research on sukuk (Islamic bonds) defaults and factors influencing the credit risk in sukuk industry, the study investigates the impact of corporate governance (CG) practices and corporate social sustainability (CS) disclosures on default risk of Islamic bonds in an emerging market. In the Malaysian context the authors use generalized method of moments (GMM) to examine the mitigating effect of CG structure and CS disclosures on distance to default (DD) of sukuk issuers. The results show that although both CG and CS have a significant and positive relationship with distance to default, the contribution of CS to augment DD is higher. Moreover, different CG variables have a varied relationship with distance to default, while the association is positive for all three pillars of CS, videlicet economic, social and environmental sustainability. The findings of the study hold important implications for issuers, subscribers and regulators in the sukuk industry. Limited research investigates the relationship between CG, CS and default risk of Islamic bonds. In light of this, the study attempts to fill the theoretical void in literature by examining the relationship among the underlying variables.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-03
      DOI: 10.1108/IJOEM-02-2021-0210
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Promoting a heritage product to domestic youth markets:
           should it be localized'

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      Authors: Afred Suci , Hui-Chih Wang , Her-Sen Doong
      Abstract: Localization, glocalization, and standardization advertising strategies have scarcely been examined in the context of internationally acknowledged heritage products aimed at young domestic consumers in emerging markets. This study investigated two essential advertising cues: endorser nationality (local vs Western) and language (local vs English). National pride and gender effects were also analyzed. Eight brochure types were constructed to represent localized, glocalized, and standardized print advertisements and examine their effects on brand image and purchase intention. MANOVA, MANCOVA, and moderated mediation analysis were employed to test the model. The localization presenting same-sex endorsement is the best fit for promoting an internationally acknowledged heritage product to young, educated domestic consumers who have a low-to-moderate level of national pride (NP). This study provides theoretical implications in localization, NP, and gender effect in ad strategy. This study fills a literature gap regarding the effects of localization, glocalization, and standardization advertising strategies on culturally bound heritage products aimed at young consumers in emerging markets. The moderating effect of NP adds to the novelty of this study.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-03
      DOI: 10.1108/IJOEM-07-2021-1033
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Google Trends and cryptocurrencies: a nonparametric causality-in-quantiles
           analysis

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      Authors: Syed Ali Raza , Larisa Yarovaya , Khaled Guesmi , Nida Shah
      Abstract: This article aims to uncover the impact of Google Trends on cryptocurrency markets beyond Bitcoin during the time of increased attention to altcoins, especially during the COVID-19 pandemic. This paper analyses the nexus among the Google Trends and six cryptocurrencies, namely Bitcoin, New Economy Movement (NEM), Dash, Ethereum, Ripple and Litecoin by utilizing the causality-in-quantiles technique on data comprised of the years January 2016–March 2021. The findings show that Google Trends cause the Litecoin, Bitcoin, Ripple, Ethereum and NEM prices at majority of the quantiles except for Dash. The findings will help investors to develop more in-depth understanding of impact of Google Trends on cryptocurrency prices and build successful trading strategies in a more matured digital assets ecosystem.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-03
      DOI: 10.1108/IJOEM-10-2021-1522
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Covid-19 and consumers' online purchase intention among an older-aged
           group of Kosovo

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      Authors: Asdren Toska , Jusuf Zeqiri , Veland Ramadani , Samuel Ribeiro-Navarrete
      Abstract: This study aims to investigate the online purchase intention of an older-aged group in Kosovo. Very few studies have analyzed the online purchase intention of these age groups in emerging countries including Kosovo, during the COVID-19 pandemic, which led to an increased usage of online shopping among older adults. The study used a quantitative methodology and a structured questionnaire was used for collecting the data. Structural equation modeling (SEM) using partial least squares (PLS) was used to analyze 262 responses from an older-aged group of consumers from Kosovo. The findings of this study showed that COVID-19 as a perceived risk affected online purchase intention. In addition, panic from perceived risk, perceived usefulness of social media and delivery in time also positively impacted the online purchase intention of this group of generations. The study provides theoretical implications to consumer behavior literature during pandemics and how certain age groups behave during their purchase intention. The study also provides insight into other studies in emerging countries to see similarities and differences in online purchase behavior.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-26
      DOI: 10.1108/IJOEM-12-2021-1875
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Ethical leadership, workplace spirituality, and job satisfaction:
           moderating role of self-efficacy

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      Authors: Junaid Aftab , Huma Sarwar , Alina Kiran , Muhammad Imran Qureshi , Muhammad Ishtiaq Ishaq , Sadaf Ambreen , Arqam Javed Kayani
      Abstract: In the 21st century, spirituality is becoming an interesting phenomenon in the workplace and has been discussed by academicians, researchers, and practitioners alike. This growing knowledge offers important insights and calls for conceptual and empirical studies on workplace spirituality. Accordingly, the current research aims to examine how ethical leadership (EL) helps to foster workplace spirituality and job satisfaction (JS) in the information technology (IT) industry. Additionally, it investigates the mediating role of workplace spirituality and moderating role of self-efficacy (SE) in the relationship between EL and JS. Using a cross-sectional design, the data were collected from 268 employees in the IT industry and analyzed on SmartPLS 3.2 using structural equation modeling. The findings indicated that EL promotes a sense of spirituality and increases JS. Additionally, results suggested that workplace spirituality partially mediates, and SE moderates the relationship between EL and JS. The results suggest that the top executives should work on identifying and developing ethical qualities to promote a sense of meaningfulness (workplace spirituality) and increase JS. The research provides an important contribution to the academic literature by exploring the role of EL in fostering spirituality among employees and the moderation of SE on the relationship between EL and JS in the services industry.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-19
      DOI: 10.1108/IJOEM-07-2021-1121
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Determinants of satisfaction with imported Asian pears in the US:
           moderating role of Korea's country image

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      Authors: Sunhee Seo , Kawon Kim , Soo Yeon Im
      Abstract: This study aimed to investigate the effects of accessibility, quality perception, and price perception on consumer satisfaction with imported fruit, specifically imported Asian pears. The moderating role of the country image was also assessed. A total of 413 Americans aged over 19 years who had purchased imported Asian pears were surveyed through an online questionnaire. Structural equation modeling and multiple group analysis were conducted to test the hypotheses. Accessibility, quality perception, and price perception exhibited a significant impact on consumer satisfaction with imported Asian pears and influenced behavioral intention through satisfaction. Multiple group analysis results revealed a moderating effect of the country image on these relationships. Accessibility had a significant impact on consumer satisfaction of consumers with a high country image of Korea, whereas prices had no significant impact on them. In contrast, price was determined as a key satisfaction factor for consumers with a low country image of Korea, whereas accessibility did not have a significant impact. This study contributes to the literature on imported fruits and provides practical implications for promoting the consumption of imported Asian pears in the US.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-19
      DOI: 10.1108/IJOEM-09-2021-1394
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Whether, how and why home country environments influence emerging market
           firm acquisition behavior

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      Authors: Rama Krishna Reddy , Frances Fabian , Sung-Jin Park
      Abstract: According to the 2019 World Investment Report, recent events in deglobalization have made many countries, especially developed markets, resist inward foreign direct investment (FDI) as ceding control to foreign countries. At the same time, many emerging market firms (EMFs) have been increasing their acquisitions in developed markets. The authors elaborate three unconventional motives that justify such acquisitions, and test whether conditions in home countries related to these motives predict the pursuit of greater or lesser equity control. Understanding how home country conditions may spur seeking greater equity control can help policymakers and business firm decision-makers improve these dynamics. Examining data covering the period 2006–2018, the authors test hypotheses using a sample of 4,130 acquisitions by EMFs into developed markets, and test hypotheses to investigate “How does the institutional and resource environment of an EMF's home country relate to the respective EMF acquisition behavior of seeking equity control'” The authors found that higher institutional quality, poorer factor market development, and higher capital market quality in the home country are related to higher equity positions sought. Acquiring and target firm managers, along with other stakeholders, can gain insights on how to respond to acquisition opportunities by recognizing how home country conditions influence emerging market internationalizing behaviors into developed markets. The compilation of this data uniquely covers 48 different emerging markets and further concentrates on the relatively less understood pre-deal phase for EMNEs entering developed markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-15
      DOI: 10.1108/IJOEM-08-2021-1274
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Career resilience and professional attitudes of tourism practitioners in
           China under the COVID-19 pandemic

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      Authors: Zhi-Fei Li , Jia-Wei Zhao , Shengliang Deng
      Abstract: This paper investigates the current psychological state of Chinese tourism practitioners and their career resilience during the ongoing COVID-19 pandemic. It empirically examines the effects of COVID-19 on Chinese tourism practitioners' professional attitudes and their career belief in the future. The study is intended to guide enterprises and governments to design effective strategies/policies to deal with the effect of this unfavorable environment. The sample consists of 442 tourism practitioners in 313 tourism enterprises in China. The data were collected via a targeted online survey based on a well-structured questionnaire. The data were analyzed using statistical procedures including multilevel regression analysis. The study results show that Chinese tourism practitioners have strong career resilience in the face of current turbulent time. After testing, the model shows that career beliefs and social support have a significant positive impact on the professional attitudes of tourism practitioners, and that career resilience has a partial mediating effect on their career beliefs, social support and professional attitude. This study enriches the existing literature on career belief, social support and career resilience. It provides a new interpretation on how career belief and social support impact career resilience and thus shape tourism practitioners' professional attitudes during pandemics.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-12
      DOI: 10.1108/IJOEM-01-2021-0042
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Technology-based business incubators: the impacts on resources of startups
           in Brazil

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      Authors: Clarissa Dourado Freire , Mário Sacomano Neto , Herick Fernando Moralles , Luiz Guilherme Rodrigues Antunes
      Abstract: This paper aims to analyze the influence of technology-based business incubators (TBIs) on the resources of technology startups in Brazil. The authors identify which resources are offered and explore the importance of resources for TBIs and startups. The theoretical background is based on the resource-based view, the resource dependency theory and total factor productivity. The study is characterized by a descriptive approach. The method includes a multiple case study and a survey. For data collection, we conducted interviews with three managers from TBIs and distributed questionnaires to 30 startup founders. The content analysis supports the identification of the resources, while the quantitative approach explores the relationship between total factor productivity and resources. Resources are the linkage between startups and TBIs, promoting the development and continuity of these organizations. Among the resources offered by TBIs, the most representative is physical resources, due to the early stage of startups. TBIs do not offer financial resources directly but facilitate access through networks with other actors. The research implications depict the importance of resources as a link between TBIs and startups. The results highlight how TBIs play an important role in promoting entrepreneurship and innovation in the context of emerging economies such as Brazil. This article performs a multi-theoretical analysis, addressing the perspectives concerning resources. No previous study has used this combination of perspectives to analyze the relationship between TBIs and startups in Brazil, filling the gap about this subject in emerging economies.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-12
      DOI: 10.1108/IJOEM-08-2020-0900
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Capability upgrading through technological proximity: evidence from a
           leading Chinese e-bike firm

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      Authors: Huanhuan Ma , Jingqin Su , Shuai Zhang , Sijia Zhang
      Abstract: The rapid growth of emerging market firms (EMFs) has been a topic of interest for the past two decades, especially in China. However, few studies have discussed how and why EMFs can impel the upgrading of their capabilities to quickly win competitive advantages in the global market. In this context, the purpose of this paper is to unravel the implausible upgrading phenomenon from the perspective of technological proximity. This paper adopts a single case study, specifically that of a leading Chinese e-bike firm, with a special focus on the dynamic nature of the capability upgrading process and underlying mechanisms. The results show that taking advantage of technological proximity is an important way for EMFs to climb the ladder of capability upgrading. The stage-based process reveals how capability upgrading is achieved through elaborate actions related to technological proximity. Furthermore, this study finds three learning mechanisms behind the technological proximity, which enable firms to successfully upgrade to higher levels of capabilities. In particular, the trigger role played by contextual conditions in guiding firms' capability upgrading is highlighted and characterized. This study enriches traditional capability upgrading literature from a technological proximity perspective, especially the traditional static upgrading research related to EMFs. The authors also contribute to the conceptualization of technological proximity. However, the research setting is China's e-bike industry; therefore, the study's generalizability to other emerging markets and industries may be limited. The results show that it is important to recognize the value of the transfer and sharing of technology between proximal industries for local governments. Also, appropriate policies should be developed to break down the technology barriers between these industries. Moreover, rather than catching up with the superior technologies of multinational corporations in advanced countries, focusing on products with high technological proximity in local or regional areas may be more helpful for EMFs' upgrading. This paper investigates the capability upgrading process and mechanisms in EMFs, particularly with respect to the role played by technological proximity.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-07
      DOI: 10.1108/IJOEM-04-2021-0548
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The role of education in filling the gender gap in financial inclusion in
           low-income economies

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      Authors: Saeed Pahlevan Sharif , Navaz Naghavi , Hassam Waheed , Kizito Uyi Ehigiamusoe
      Abstract: This study aims to investigate whether gender predicts financial inclusion and whether education can fill the gender gap in financial inclusion when controlling for the effects of supply side factors of financial inclusion in low-income economies. This study aims to investigate whether gender predicts financial inclusion and whether education can fill the gender gap in financial inclusion when controlling for the effects of supply side factors of financial inclusion in low-income economies. The findings provided support for the gender gap in financial inclusion using the most basic measure of financial inclusion. However, using formal savings and access to credit, the gender gap hypothesis is not supported. Moreover, the results revealed that education reduces the gender gap in the basic form of financial inclusion. However, this study could not find any significant difference between men and women's financial inclusion in terms of saving at a bank or borrowing from a bank though men tend to save more than women informally. The current study contributes to the literature by examining the role of education in the relationship between gender gap and financial inclusion when controlling for the effects of heterogeneous infrastructure and the supply side factors of financial inclusion among the selected countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-05
      DOI: 10.1108/IJOEM-07-2021-0991
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Investor personality as a predictor of investment intention – mediating
           role of overconfidence bias and financial literacy

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      Authors: Riidhi Jain , Dipasha Sharma , Abhishek Behl , Aviral Kumar Tiwari
      Abstract: The purpose of this study is to examine the role of personality traits (PTs) of individual investors on their investment intention (II). Further, to study the mediating role of overconfidence (OC) bias and financial literacy (FL) on the relationship between PTs and II. The present study uses the quantitative approach for the data collection from the sample of 327 Indian investors investing in the stock market. The questionnaire was divided into segments to assess the investor’s PTs, OC, FL and II. The PT has been measured using the Big Five Personality Traits. Confirmatory factor analysis was used to test the reliability and validity of the constructs. The hypothesis was tested using structural equation modeling. Findings of the study show that the PTs of an individual investor are associated with FL and II but insignificant with OC bias. Further, the FL and OC bias have a positive and significant influence on II. In addition, the mediation analysis showed that FL partly mediates the relationship between PTs and II. The present study is helpful for financial companies, government, personal finance advisors and individual investors; they can keep in mind the behavior-related traits that can influence the investment decisions and design the portfolio accordingly. The policy-makers can implement programs on FL to enhance investment decisions in India. This paper is unique that covers the mediating role of psychological bias, i.e. OC bias and FL, between the PTs and II of an Indian investor.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-04-04
      DOI: 10.1108/IJOEM-12-2021-1885
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Consumers' intention toward buying ethically produced products in
           Bangladesh

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      Authors: Yi-Hui Ho , Syed Shah Alam , Mst. Nilufar Ahsan , Chieh-Yu Lin
      Abstract: While many companies begin to promote ethically produced products, much remains to be known about consumers' buying intention toward these products. This paper attempts to integrate the theory of planned behavior and the Hunt–Vitell theory of marketing ethics to explore the buying intention toward ethically produced food products in a developing economy. Data were collected through a questionnaire survey in Bangladesh. Structural equation modeling technique was used to test the research model. Research findings showed that deontological evaluation and teleological evaluation have significantly positive effects on perceived behavioral control and subjective norm. Perceived behavioral control, subjective norm, attitude, hedonic and utilitarian value have significantly positive effects on buying intention toward ethically produced foods. The results are practically and theoretically meaningful because the integrated model holds well explanatory power to predict consumers' intention toward buying ethical foods and thereby understand consumers' ethical decision-makings.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-31
      DOI: 10.1108/IJOEM-02-2021-0216
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Re-configuring ownership structure, board characteristics and firm value
           nexus in Malaysia: the role of board gender and ethnic diversity

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      Authors: Sitara Karim , Muhammad Abubakr Naeem , Rusmawati Binti Ismail
      Abstract: This study serves two objectives; first, it examined the impact of ownership structure and board characteristics on firm value; second, the moderating effects of board gender diversity (women appearance on board) and board ethnic diversity (Chinese, Indian, and Foreign ethnicities) have been examined on the relationship between ownership structure, board characteristics, and firm value. The dynamic model, system generalized method of moments (S-GMM hereafter), is employed to control potential dynamic endogeneity, reverse causality, simultaneity and unobserved heterogeneity persistent in corporate governance-performance relationships during 2006–2017 of 483 Malaysian listed companies. Findings pertaining to objective one reveal that there is a weak linkage between ownership structure and firm value, whereas board characteristics significantly affect firm performance based on resource dependence theory. While considering the results of objective two, there is mixed evidence of moderating impact of board gender and ethnic diversity on ownership structure, board characteristics and performance nexus. The findings of the study are practically significant for regulatory bodies, namely, Bursa Malaysia, Securities Commission (SC) Malaysia, and policymakers to develop guidelines for ownership structure variables. Moreover, Malaysian firms need to disperse their concentrated ownership structure for enhanced firm value. In addition, board characteristics significantly affect firm performance in Malaysian listed companies. The paper contributes to multiple aspects: first, it examined the impact of ownership structure and board characteristics on firm performance. Second, the moderating effect of board gender and board ethnic diversity contributes to research significant and valuable for the researchers and practitioners. Finally, the study employed S-GMM, controlling for dynamic endogeneity considered a main econometric problem for CG-performance relationships.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-30
      DOI: 10.1108/IJOEM-01-2021-0004
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of real earnings management on earnings persistence –
           evidence from India

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      Authors: Srikanth Potharla
      Abstract: The present study aims to examine the relationship between real earnings management and earnings persistence and also to test how the group affiliation of the firms influences this relationship. The study draws the sample of listed non-financial firms in the Indian market from the year 2011 to 2018 and applies panel least squares regression with industry and year fixed effects. Future performance of a firm is measured by one year leading value of return on assets. The interaction term of real earnings management and return on assets is used to measure the impact of real earnings management on earnings persistence. The firm-specific controlling variables are also included in the empirical model. The robustness of the results is tested by sub-dividing the sample into group affiliated and non-group affiliated firms. The findings of the study reveal that opportunistic earnings management has a significant impact on earnings persistence when real earnings management is measured through abnormal increase in operating cash flows and abnormal reduction in discretionary expenditure. On the other hand, signalling earnings management has a significant impact on earnings persistence when real earnings management is measured through abnormal increase in the level of production. The results also reveal that REM has more negative implications on group affiliated firms compared to non-group affiliated firms supporting the theory of entrenchment effect. This is the first study in the Indian context which tests the implications of real earnings management on earnings persistence by using three alternative measures of real earnings management. The study contributes to the existing literature on the implications of real earnings management in emerging markets like India.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-30
      DOI: 10.1108/IJOEM-05-2020-0576
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do consumer boycotts really matter with global companies'
           The moderating effect of gender differences

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      Authors: Changju Kim , Xiuyan Yan , Soohyun Park
      Abstract: Drawing on the theory of planned behavior, this study aims to conduct an empirical investigation on whether and how psychological and motivational factors (i.e. attitudes, subjective norms and perceived behavioral control) affect actual purchase behavior. It does so through the lens of boycott intention and gender differences in the context of boycott campaigns. Focusing on the South Korean boycott campaign against Japanese companies, this study employs a structural equation model using survey data from 571 South Korean consumers to test the hypotheses. While the three psychological and motivational factors inhibit all three dimensions of actual purchase behavior (i.e. purchase frequency, number of items purchased and purchase amount) through increased boycott intention, perceived behavioral control of boycotts directly curb South Korean consumers from purchasing Japanese products. Additionally, the effect of boycott intention on overall actual purchase behavior is stronger for men than for women, suggesting a moderating role of gender. To mitigate the devastating impact of unexpected consumers' boycott campaigns, this study advises that global brand management and attractive online channels are essential while considering the differential impact of gender. By conceptualizing three dimensions of actual purchase behavior capturing behavioral changes before and after a boycott, this study highlights the linkages between psychological and motivational factors, intentions and behaviors. Additionally, this study attempts to clarify the previously conflicting evidence on gender's role in boycott campaigns while taking a culture-inclusive psychologies approach to gender.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-29
      DOI: 10.1108/IJOEM-03-2021-0312
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Role of imported raw materials in the performance of inward foreign direct
           investments in Ethiopia

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      Authors: Mumin Dayan , Frank Yat Cheong Leung , Muammer Ozer
      Abstract: Drawing on the resource dependence theory (RDT), this paper investigates ownership composition, export intensity, and industry class as moderating factors to investigate the role of imported raw materials in performance of inward foreign direct investment (IFDI) in Ethiopia. The hypotheses were tested using secondary data obtained from the 2016 Central Statistical Agency (CSA) on Large- and Medium-Scale Manufacturing and Electricity Industries Survey. The data included basic quantitative information on the country's manufacturing industry. The data items for the 2016 manufacturing and electricity industries surveyed are the numbers of proprietors or establishments involved in various sectors. The report did not record small firms that employed fewer than 10 people and did not use power-driven machinery. Two-Stage least squares (2SLS) regression analysis was performed to test the proposed hypotheses. The results of this study indicate that three moderators (ownership composition, export intensity, and industry classification) interact with the hypothetical relationships between imported raw materials and performance. These findings enrich the knowledge of IFDI firms' operations in Ethiopia and in other least-developed countries (LDCs). The findings could provide information for IFDI firms that are looking to invest in LDCs. Like all social science research, this study has some limitations. First, the research was conducted with the data found in the Report on Large- and Medium-Scale Manufacturing and Electricity Industries Survey In 2016. This was the first year of the second five-year Growth and Transformation Plan (GTP II), a national development plan for the 2016–2020 period. Continual research on IFDI in Ethiopia in the following years will be needed to get a full picture of the effects of the determinants on IFDIs. To IFDI investors, the result of this thesis demonstrates several alternatives to overcoming hurdles in manufacturing operation. The results find that J.V. firms make better use of imported raw materials than W.O. subsidiaries in order to achieve better performance. Concerning the choice between focusing on export or domestic markets, the study suggests that domestic market—oriented companies require less imported raw materials to achieve better performance. Concerning the comparative advantage on different industries, this study found the performance of firms in Industry 12 depended on imported raw materials. These findings highlight the challenges and opportunities for potential foreign investors. Ownership composition, market factors, and industry factors should be well considered in making investment decisions. This is one of few studies on IFDI in Ethiopia, the most populous LDC. Ownership composition, export intensity, and industry class are used as moderating variables to investigate the difference between imported raw materials and the level of expatriate deployment to IFDI performance. For IFDI investors, the results of this study demonstrate several alternatives to overcoming hurdles in manufacturing operation.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-29
      DOI: 10.1108/IJOEM-09-2020-1097
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Asymmetric dynamics in sovereign credit default swaps pricing: evidence
           from emerging countries

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      Authors: Serdar Simonyan , Sema Bayraktar
      Abstract: This paper examines the relationship between sovereign credit default swaps (CDS) and several macroeconomic factors in an asymmetric setting and distinguishes between short-run and long-run impacts. Country-specific factors (e.g. equity index, international reserves, interest rate and industrial production) and global factors (e.g. US stock volatility [VIX], geopolitical risk and oil price) are the main explanatory variables. This analysis uses a nonlinear autoregressive distributed lag approach that enables us to study both long-run and short-run dynamics. This study results show that two country-specific factors (equity index and international reserves) and two global factors (VIX and oil price) are the most important factors and affect CDS asymmetrically. The asymmetric relationships between sovereign CDS and variables in bull and bear markets can also be studied. Consideration of asymmetries in the variance could also be a fruitful step taken for further research. The findings imply that investors and portfolio managers should design their investment and hedging decisions related to government bonds by taking into account the existence of an asymmetric relationship. Moreover, policymakers can benefit from this asymmetric information in the timing of debt issuance. This paper examines the relationship between sovereign CDS and several macroeconomic factors in an asymmetric setting and distinguishes between short-run and long-run impacts.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-28
      DOI: 10.1108/IJOEM-03-2021-0469
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • More structure or better social practices' Using a contingency lens to
           address ambidexterity gaps in innovative SMEs

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      Authors: Carolina Rojas-Córdova , Julio A. Pertuze , Amanda Jasmine Williamson , Michael Leatherbee
      Abstract: Environmental uncertainty (EU) and firm size (FS) generate inertial forces that can push small and medium-sized enterprises (SMEs) to emphasize either exploration or exploitation. In this article, the authors explore how structural (e.g. formal processes, control and discipline) and social (e.g. employee support and decision-making involvement) managerial instruments counteract such inertial forces and enable SME ambidexterity. Building on the organization-context literature, the authors propose a model in which EU and firms' size moderate the relationship between structural and social managerial instruments on SME ambidexterity. The authors examined a moderation model using surveys of chief executive officers (CEOs) and performance archival data from 237 Chilean SMEs. The authors find that the positive effect of structure on SME ambidexterity decreases with FS. In contrast, social instruments have a positive effect on ambidexterity for larger firms, especially for those operating in uncertain environments. In cases in which EU and firms' size reinforce the exploration or exploitation tendencies of SMEs, structural and social instruments play a complementary role in achieving ambidexterity. The authors contribute by proposing a contingent mix of structural and social instruments to enable SME ambidexterity. These results inform policymakers and SME managers by suggesting strategies to promote ambidexterity based on firms' size and EU.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-28
      DOI: 10.1108/IJOEM-04-2021-0572
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Foreign direct investment inflows and energy diversification in emerging
           seven economies: evidence from a panel data analysis

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      Authors: Mohd Irfan , Raj Kumar Ojha
      Abstract: Higher economic growth accompanied by rising energy demand poses severe challenges to the long-term environmental sustainability of E7 economies, including Brazil, China, India, Indonesia, Mexico, Russia and Turkey. Thus, this paper explores the influence of foreign direct investment (FDI) inflows on energy diversification for E7 economies. The dataset is panel data for emerging seven (E7) economies, covering the period 1992–2017. The empirical investigation relies on econometric techniques: panel cointegration test and panel autoregressive distributed lag model. The findings reveal that energy diversification and FDI inflows are cointegrated. In the long run, higher FDI inflows encourage energy diversification, but energy efficiency improvements discourage energy diversification. In the short run, the effects of FDI inflows on energy diversification vary across E7 economies, highlighting the role of country-specific factors in determining the short-run influence of FDI inflows on energy diversification. The findings suggested that FDI policies should encourage the adoption of nonconventional energy resources to stimulate energy diversification in E7 economies. Besides, better coordination between energy diversification and energy efficiency policies is required in the long run for a successful transition towards low-carbon economy goals. This study is a unique empirical exercise that uncovers a cointegrating relationship between energy diversification and FDI inflows for E7 economies. Moreover, the analysis provides homogenous long-run and heterogeneous (country-specific) short-run coefficient estimates for the effect of FDI inflows on energy diversification.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-25
      DOI: 10.1108/IJOEM-09-2020-1137
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does family size matter to investors' Evidence from mutual fund flow
           in Saudi Arabia

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      Authors: Bader Jawid Alsubaiei
      Abstract: This study aims to examine the role of fund family size on the money flow of Saudi Arabian open-end equity mutual funds. The author also investigates whether the relationship between fund flow and past return varies based on the fund's family size. The study analyses 256 equity funds that operated in Saudi Arabia from 2006 until 2017. Pooled and fixed-effect regression models are used to test the relationship between mutual fund flow and family size. The results indicate that fund flow is higher for large size family funds. The results also show that the relationship between mutual fund flow and past performance is more pronounced for large size families, which supports the concept that investors pay extra attention to funds' return and size. The author provides evidence of the significant effect of family size of mutual funds on future money flow, which helps fund managers to understand investors' motivations for allocating their cash. This paper contributes to the literature by examining the impact of family size level on the interaction between fund flow and past performance. This study is believed to be the first to investigate the family size factor in Saudi Arabia using a comprehensive data set.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-22
      DOI: 10.1108/IJOEM-09-2021-1441
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Does foreign direct investment stimulate the output growth of the formal
           economic sector in Vietnam: a subnational-level analysis

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      Authors: Thi Bich Thuy Dao , Vi Dung Ngo
      Abstract: This study focuses on the relationship between foreign direct investment (FDI) and economic growth of the formal sector comprising all foreign and domestic registered enterprises engaged in production of goods and services. This study uses a balanced longitudinal data set for the period from 2006 to 2014 from secondary sources in 63 provinces/cities of Vietnam. The generalized method of moments (GMM) estimation for a dynamic panel data model is applied. The greater the share of FDI in capital resource, the more favorable the output growth in the whole formal sector. The FDI enterprises are more productive than domestic formal firms, and the output growth of FDI firms creates a positive spillover effect on the output growth of domestic firms. The effect of FDI on economic growth is investigated at subnational level for the whole formal economic sector as well as the formal domestic firms. The domestic and foreign industrial agglomerations and the business environment are also examined.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-22
      DOI: 10.1108/IJOEM-09-2021-1506
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Examining the role of China's outward direct investment in realizing
           carbon neutrality: empirical evidence from Belt and Road countries

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      Authors: Qingyan Jiang , Cuihong Yang , Jie Wu , Yan Xia
      Abstract: Known as the major capital providers in Belt and Road countries and the largest carbon emitter in the world, what role China's outward direct investment (ODI) plays in carbon neutralization has become a matter of concern. This study aims to measure the impact of China's ODI on the carbon emissions of Belt and Road countries. Based on an econometric model and an inter-regional input–output model, a new model measuring the carbon emission effects of ODI is developed. The empirical results show that (1) in general, China's ODI generates an emission-reduction effect in Belt and Road countries; (2) The relationship between the emission-reduction effect and income level of host countries shows an approximate inverted U-shaped trend; and (3) China's ODI generates stronger emission-reduction effects on capital-intensive industries. This study quantitatively measures the scale of carbon emission-increase and reduction effect, which is relatively lacking in previous studies. This study explores the heterogeneity from the perspectives of regions, countries and industries. The authors have compiled an inter-regional input–output table for the Belt and Road countries for 2014 to provide a broad basis for the study of related issues.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-21
      DOI: 10.1108/IJOEM-09-2021-1492
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of foreign and domestic ETFs on the volatility and
           pricing-efficiency of constituents during turbulent and tranquil times:
           Indian evidence

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      Authors: Vanita Tripathi , Aakanksha Sethi
      Abstract: The purpose of this study is to ascertain how foreign and domestic Exchange Traded Funds (ETFs) investing in Indian equities affect their return volatility and pricing efficiency. Further, we investigate how the difference in market timings affect the impact of ETFs on their constituents. Lastly, we examine how these effects vary during tranquil and turmoil periods in the ETF markets. The study is based on quarterly data for stocks comprising the CNX Nifty 50 Index from 2009Q1 to 2019Q3. The data on holdings of 45 domestic and 196 foreign ETFs in the sample stocks were obtained from Thomson Reuters' Eikon. The paper employs a panel-regression methodology with stock and time fixed effects and robust standard errors. Foreign ETFs from North America and the Asia Pacific largely have an adverse impact on stocks' return volatility. In times of turmoil, stocks with higher coverage of European, North American and Domestic funds are susceptible to volatility shocks emanating from these regions. European and Asia Pacific ETFs are associated with improved price discovery while North American funds impound a mean-reverting component in stock prices. However, in turbulent markets, both positive and negative impacts of ETFs on pricing efficiency coexist. To the best of the authors' knowledge, this is the first study that examines the impact of domestic as well as foreign ETFs on the equities of an emerging market. Furthermore, the study is unique as we investigate how the effects of ETFs vary in turbulent and tranquil markets. Moreover, the paper examines the role of asynchronous market timings in determining the ETF impact. The paper adds to the growing literature on the unintended consequences of index-linked products.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-15
      DOI: 10.1108/IJOEM-03-2021-0311
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Overcoming the liability of origin: cross-listing in developed economies
           as a signal

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      Authors: Jiang Wei , Jie Zheng , Yan Zuo
      Abstract: The purpose of this paper is to investigate the role of cross-listing in overcoming liability of origin (LOO) facing emerging economy corporations (EECs). This paper takes Chinese firms' cross-listing in Hong Kong and the firms' establishment of international joint ventures (IJVs) with foreign partners as the research setting. This is an empirical study using Heckman's self-selection model as the primary econometric technique and two-stage least square (2SLS) regressions as the supplementary estimation procedure. Cross-listing in developed economies can serve as a signal for EECs to overcome the LOO. In addition, the regional institutional voids of emerging economies (EEs) and state ownership are prominent boundary conditions shaping this effect. Only Chinese firms and the firms' cross-listing in Hong Kong are considered for the empirical context as a result of data availability. This paper provides a practical solution for EECs whose internationalisation tends to be hindered by the LOO. This study is of high importance in that it centres on a distinctive and challenging problem faced with EECs—the LOO. Besides, it ascribes this liability to a matter of information asymmetries and explores how cross-listing can serve as a signal to cope with this challenge.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-14
      DOI: 10.1108/IJOEM-01-2021-0111
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate R&D spending, subsidies and stock market reactions to seasoned
           equity offering announcements: evidence from China

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      Authors: Xin Xiang
      Abstract: This study focuses on an emerging market, China, and investigates the effects of corporate research and development (R&D) spending and subsidies on stock market reactions to seasoned equity offering (SEO) announcements. The study uses a sample of SEOs announced over the period of 2003–2018 in the Chinese A-share market. The cumulative abnormal stock returns (CARs) are adopted to measure the stock market response to SEOs. The R&D spending-to-sales ratio (R&D subsidies) in 2 years before SEO announcements is used to measure the pre-SEO R&D spending (R&D subsidies). The instrumental variable (IV) regression method is applied to address the endogeneity problem in the robustness test. This study demonstrates that firms with high R&D spending suffer stock overpricing and experience a negative market reaction when they announce SEOs, but R&D subsidies alleviate stock overpricing and mitigate the negative relationship between R&D spending and SEO market reactions. Although the prior studies have demonstrated that information asymmetry, which causes stock overpricing, explains negative stock market reactions to SEOs, it is unclear if a certain factor that causes information asymmetry affects SEO market reactions. This study fills this gap and focuses on R&D spending, demonstrating that R&D spending is negatively related to SEO performance.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-10
      DOI: 10.1108/IJOEM-06-2021-0916
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • High-performance work systems and organizational citizenship behavior: the
           role of goal congruence and servant leadership

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      Authors: Md. Shamsul Arefin , Omar Faroque , Junwei Zhang , Lirong Long
      Abstract: Aligning employees' goals with organizational goals is an overarching objective of an organization to increase employees' outcomes and, ultimately, the firm's performance. Employees' perceived goal congruence is proposed to be an important mediator of the effect of high-performance work systems (HPWS) on organizational citizenship behaviors (OCB). In this paper, the authors proposed and tested a moderated mediation model that depicted how servant leadership increased or restrained these effects. This study used data from 56 managers and 322 employees working in Bangladeshi organizations. The study conducted cross-level analyses using hierarchical linear modeling (HLM) to examine the hypothetical relationships among variables. This study revealed that employees' perceived goal congruence mediated the influence of HPWS on OCB. Consistent with the moderated mediation prediction, employee-perceived goal congruence mediated the relationship between HPWS and OCB when servant leadership is high. This study examined how and when HPWS affects OCB by incorporating perceived goal congruence and servant leadership as mediating and moderating variables, respectively.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-09
      DOI: 10.1108/IJOEM-03-2019-0209
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Workplace spirituality, knowledge-hiding and the mediating role of
           organizational identification: evidence from Pakistan

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      Authors: Muhammad Muavia , Ghulam Hussain , Umar Farooq Sahibzada , Wan Khairuzzaman Wan Ismail
      Abstract: This research aims to investigate relationship between workplace spirituality and employees' knowledge-hiding as mediated by organizational identification. In this research, a time-lagged design is employed and multi-source data are collected through self-administered questionnaires. A sample of 305 focal respondents and 1,048 of the respondents' peers is used to test the hypotheses using AMOS (analysis of moment structures) 24.0. The results reveal that two dimensions of workplace spirituality – meaningful work and values alignment –play significant roles in reducing knowledge-hiding in terms of workplace spirituality's three dimensions of evasive hiding, rationalized hiding and “playing dumb.” However, contrary to expectations, a sense of community has significant positive effects on the dimensions of knowledge-hiding. The study also reveals that organizational identification significantly mediates the relationships between the dimensions of workplace spirituality and those of knowledge-hiding. This pioneer study introduces workplace spirituality (which differs from religious spirituality) and the significance of workplace spirituality in the workplace in the religious and conservative society of Pakistan. This study uses the lens of social identity theory (SIT) to establish for the first-time organizational identity as a mediating mechanism between workplace spirituality and knowledge-hiding to offer new insights for theory and practice.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-09
      DOI: 10.1108/IJOEM-03-2021-0388
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impacts of economic policy uncertainties on carbon dioxide emissions
           of emerging and low-income developing countries: the moderating role of
           institutional quality

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      Authors: Dinkneh Gebre Borojo , Jiang Yushi , Miao Miao
      Abstract: This study is aimed to examine the effects of the economic policy uncertainty (EPU) on carbon dioxide (CO2) emissions. It further aimed to investigate the moderating role of institutional quality on the impacts of EPU on CO2 emissions. The authors apply the two-step system-generalized method of moments (GMM) for 112 emerging economies and low-income developing countries (hereafter, developing countries) for the period 2000–2019. The findings reveal that the effects of EPU on CO2 emissions are positive. Specifically, a percent increase in EPU results in a 0.047% increase in CO2 emissions in developing countries. However, the effects of institutional quality on CO2 emissions are negative, certifying that strong institutional quality reduces emissions. Also, the results confirm that the positive effect of EPU on CO2 emissions is weaker in countries with relatively strong institutional quality. Policymakers should be more vigilant while designing and implementing economic policies. Also, the government should support firms investing in environment-friendly innovations during high EPU. Besides, developing countries should improve institutional quality to mitigate the effect of EPU on CO2 emissions. This study is the first in its kind to examine the impacts of EPU on CO2 emissions in developing countries. It also provides a different viewpoint on the EPU–CO2 relationship and reinterprets it through the moderating role of institutional quality.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-09
      DOI: 10.1108/IJOEM-07-2021-1044
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Multidimensional performance measures and factors and their linkage with
           performance

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      Authors: Kamilah Ahmad , Shafie Mohamed Zabri , Siti Anisah Atan
      Abstract: This study investigates the extent to which performance measures (PMs) are used, the relationship between multidimensional PMs and firm performance and the factors related to firms' PM use. The authors surveyed a sample of Malaysian manufacturing firms. Participants responded to a questionnaire indicating their use of PMs, firm performance, level of managerial commitment, degree of environmental uncertainty and firm's use of technology. The results indicate a high degree of PM use related to financial indicators, internal efficiency and customer-related metrics. The results also demonstrate that firm performance has significant positive relationships with use of PMs related to quality and customers, efficiency, innovativeness and social responsibility, as well as comprehensive PM use. Industry variation, firm size, technology use and environmental uncertainty are also significantly related to PM use. Performance measurement systems (PMSs) are an important tool for improving organisational strategy in rapidly changing markets. These findings underscore the significant role of PMSs in manufacturing firms' performance, including emerging economies. The results suggest that individual PMS approaches should align with each firm's evolving needs and the characteristics of the sector and environment in which each firm operates. This study advances understandings of the contingency approach to PMSs in manufacturing environments.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-08
      DOI: 10.1108/IJOEM-05-2021-0797
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Internationalization of from China to Africa

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      Authors: Abdoulkadre Ado
      Abstract: This study focuses on the use of guanxi by African returnees from China in Africa. It explains how returnees understood and leveraged guanxi to collaborate with Chinese partners. This study uses semi-structured interviews to document how guanxi is increasingly extending beyond Chinese borders. It focuses on Ethiopia, Kenya and Tanzania and analyzes the returnees' mobilization of guanxi in Sino–African business contexts. African returnees play an increasingly important role in guanxi internationalization in Africa. Returnees' understanding of guanxi is shaped by their African traditions and their Chinese experiences, creating their new cultural capital and a dynamic Sino–African business mindset. This paper reveals an emerging shift in the business mindset among African returnees once initiated in guanxi. In addition, guanxi is increasingly practiced by African organizations.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-07
      DOI: 10.1108/IJOEM-01-2021-0025
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Systematic review of eWOM literature in emerging economy using ACI
           framework

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      Authors: Gobinda Roy , Biplab Datta , Srabanti Mukherjee , Avinash K. Shrivastava
      Abstract: The purpose of this study is to conduct a systematic study of important research trends and published electronic word of mouth (eWOM) studies over the past 20 years in the emerging economy. This research is designed to identify the key areas of eWOM based on the Antecedents-Consequence-Intervention (ACI) framework. This paper is also aimed to analyze the current research status of each WOM area and critically review each area for developing future research directions. 616 articles were selected from 112 journals for in-depth review analysis. For the systematic review of articles, an ACI framework was adopted. This paper used systematic review analysis methodology to critically analyze important research studies in each area of the ACI framework with a set of research questions. Results identify six significant areas of eWOM, i.e. WOM antecedents, outcomes, senders, receivers, eWOM platform and eWOM management representing the whole environment. The result highlights increasing research interest on mixed eWOM and rich eWOM content and market-level source credibility factors. Research also identifies research gaps based on the ACI framework. Analyzing the recent trends in the eWOM environment with the SLR approach and linking these trends to the ACI framework with a future research agenda in the emerging market indicated a pioneering attempt in eWOM research.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-04
      DOI: 10.1108/IJOEM-08-2021-1313
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Conformity by information or relation' An exploration of investors'
           response in equity crowdfunding

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      Authors: Yaokuang Li , Li Ling , Juan Wu , Daru Zhang , Weizhong Fu
      Abstract: This paper aims to investigate the role of informational and relational mechanisms on equity crowdfunding investors' conformity behaviors by focusing on a relational culture of China. The data of 108 financing projects and 7,688 investment records from a union of Chinese equity crowdfunding platforms are gathered. Lead investors' response to a campaign and follow-investors’ former links explain investors' conformity by social network analysis (SNA) and ordinary least squares (OLS) analysis. The results show that informational and relational influences drive conformity in Chinese equity crowdfunding. Moreover, the informational influence weakens in a highly centralized structure of linked investors. The results add new knowledge to follow-investors’ conformity behaviors in equity crowdfunding and enrich the literature on conformity theory by finding the contextual effect of information-influenced conformity and the adaption of conformity theory to cultural uniqueness. Besides, this preliminary work also suggests opportunities for future research. The paper inspires new consideration on a strategical use of follow-investors’ conformity mentality to promote successfully financing and reminds platform managers to be alert to the interference of small groups formed based on informal relationships to the normal financing order. This is the first study that discovers the non-informational influence and the limited influence of information on equity crowdfunding conformity through contextual concerns.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-02
      DOI: 10.1108/IJOEM-05-2021-0701
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do board characteristics play a moderating role in M&A decisions
           of family firms'

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      Authors: Mehul Raithatha , Radha Ladkani
      Abstract: The purpose of this paper is to examine the moderating effect of the board of directors on the strategic decisions made by family firms, and to understand the board attributes that can alleviate the aversion of family-owned firms toward mergers and acquisitions (M&A). The study uses a sample of several firms listed in India from 2006 to 2019 with 19,813 firm-year observations. The empirical tests have been performed using logistic and negative binomial regressions. The study also tests for endogeneity with the help of Heckman (1979) two-step treatment effects model. The study shows that board characteristics like smaller board-size, presence of outside directors, lower intensity of board activity, presence of busier board members and separation of board chair and CEO positions alleviate the inhibition of family firms toward M&A. The findings imply that investors and policymakers can encourage family firms to have smaller boards, more independent directors, passive boards and CEO nonduality to reduce their aversion toward risky activities. Family-owned firms could consider a board comprising members with multiple directorships who can bring wider knowledge and expertise which can reduce the perceived threat to socioemotional wealth (SEW) and alleviate their aversion toward M&A. Ownership concentration in family firms posits a unique challenge in terms of their aversion toward M&A. This study is one of the few that highlight the relevance of the monitoring and advisory role of the board in alleviating this aversion in an emerging market like India.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-02
      DOI: 10.1108/IJOEM-07-2021-1068
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of uncertainty-fear against COVID-19 on corporate social
           responsibility and labor practices issues

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      Authors: Moustafa Mohamed Nazief Haggag Kotb Kholaif , Xiao Ming
      Abstract: The research aims to profoundly investigate the correlation between uncertainty-fear against COVID-19, corporate social responsibility (CSR) and labor practices issues based on ISO 26000. Partial least squares structural equation modeling (PLS-SEM) was adopted for data analysis and hypotheses testing on a sample of 304 managers and employees in the Egyptian small and medium enterprises (SMEs). Preliminary results indicate that the uncertainty-fear against COVID-19 positively affects CSR practices in SMEs. CSR positively impacts labor practices dimensions. However, CSR has an insignificant effect on the social protection and work condition dimension. Also, CSR has a significant mediating role in the association between uncertainty-fear toward the pandemic and labor practices. But, this relation is insignificant regarding social protection and work condition dimension. Managers could develop a consistent strategy for applying CSR practices, providing clear information and focusing on their procedures to protect their workforce during COVID-19. Governments should impose policies to guarantee that all employees have the same opportunities and not discriminate directly or indirectly in any labor practice. Based on both the “stakeholder” and “social-cognitive” theories, this study shed light on the optimistic side of the COVID-19 pandemic, as it also brings the concepts of social responsibility, sustainability and green practices back into the light, which helps in solving labor issues.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-01
      DOI: 10.1108/IJOEM-03-2021-0457
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Medical tourism brand equity in emerging markets: scale development
           and empirical validation

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      Authors: Diya Guha Roy , Sujoy Bhattacharya , Srabanti Mukherjee
      Abstract: This research theoretically proposed and empirically validated a Customer-Based Brand Equity (CBBE) scale specifically for Medical Tourism for emerging economies including recent findings from tourism theories such as gravity model and signalling theory, but more specifically accommodating political, cultural, economic, legal and social influences. In-depth literature reviews from tourism, medical tourism, healthcare and hospitality domains are used to propose the theoretical model. The authors have used the lavaan package in R for the empirical analysis and model verification. The research included, tested and verified the established latent variables such as “brand awareness”, “brand association”, “perceived quality” and “loyalty”, along with new observed variables for the CBBE scale from the theoretical perspectives of this research. “Infrastructure” has emerged as a new scale construct and “culture” was found to be a moderating variable for “perceived quality” in the CBBE scale, which are novel additions to the literature. The research contributed to scale refining, latent construct assessment, and fine-tuning of the observed variables for the mentioned theoretical gaps.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-01
      DOI: 10.1108/IJOEM-05-2021-0805
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • A long-memory analysis for the CBOE Brazil ETF volatility index

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      Authors: Edson Zambon Monte
      Abstract: The main goal of this paper is to investigate whether there is long-memory behavior in the CBOE Brazil ETF volatility index (named here VIXBR). As structural breaks may create a spurious long-range dependence, the presence of structural breaks is also gauged. The study considers the period from October 2011 to March 2021, using daily data. To test the long-memory behavior, three empirical approaches are adopted: GPH, ELW and robust GPH (RGPH) estimator. To estimate the structural break points adopted to date the subsamples, the ICSS algorithm is used. Results considering the total period (TP) and subsamples show that the breaks did not create a spurious long-memory behavior and together with the rolling estimation, reveal strong evidence of the long-range dependence in the CBOE Brazil ETF volatility index. The higher degree of persistent of the VIXBR series suggests an extended period of increased uncertainty that agents need consider when making their investment decision. As possible extension of this study is to investigate the behavior of long memory and structural breaks for different frequencies (weekly, monthly, among others). The presence of long-range dependence in the CBOE Brazil ETF volatility index reveals that the past information is important for the predictability of risks, and therefore, can help to protect against market risks, which has important implications regarding the future decisions of economic agents (for example, policy makers and investors). Brazil is an emerging capital market (ECM) that has attracted a great deal of attention from investors and investment funds seeking to diversify its assets. This paper contributes to the empirical financial literature, by studying the long-memory behavior of the CBOE Brazil ETF volatility index, considering possible structural breaks. To the best of knowledge, this has not been done so far.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-28
      DOI: 10.1108/IJOEM-03-2021-0352
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Impact of coupling of technological innovation and standardisation on
           industrial development

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      Authors: Jing Yang , Lushen Shao , Xiang Jin , Lijun Zhou
      Abstract: Using the industrial data between 2000 and 2016, this study analysed the process of coupling and coordinated development of technological innovation and standardisation. Accordingly, the study considered the high-tech industry (five sub-sectors) in China as the research object. Based on the summary of innovation and standardisation literature review, this study constructed a theoretical model of the influence of technological innovation and standardisation on industrial development from the perspective of the coupling system. Furthermore, the study employed multivariate linear regression analysis to explore coupling coordination relationships. The study results revealed that high coupling coordination between technological innovation and standardisation is highly conducive to industrial development. Moreover, requirements for standardisation levels differ owing to different stages and characteristics in each segmented industry. This study primarily contributes to the literature by using a bibliometrics tool to summarise related literature on innovation and standardisation and provides a new perspective of reviewing, and it also offers new evidence on the coupling coordination relationship between innovation and standardisation in the high-tech industry.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-22
      DOI: 10.1108/IJOEM-05-2021-0758
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • An investigation of the impacts of asset ratio policy on the banking
           system during the Covid-19 crisis in Turkey

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      Authors: Serife Genc Ileri
      Abstract: This paper provides a quantitative assessment of the “asset ratio” rule defined in Turkey as part of measures taken to stimulate the economy amid the Covid-19 pandemic. The main objective of the new rule was to boost credit growth in the economy and provide lending for credit-constrained households and firms that are in need. A secondary aim was to shift the denomination structure of the deposits toward domestic currency. Hence, the paper focus particularly on how the policy affected the growth rate of loans and the share of domestic deposits relative to foreign ones among the commercial banks. The policy was also heavily criticized due to the possibility that it will subjugate the banking system to excessive risk. The paper explore this possible impact by measuring how much the policy affected the default risk allowances in the banking system. The new policy required banks with deposits above a threshold level, i.e. large banks, to maintain a certain asset ratio. Banks with deposits below the threshold, i.e. small banks, were held exempt from it. The paper implement a difference-in difference methodology to assess the quantitative impacts of the asset ratio policy by taking large banks as the treatment group, and small banks as the control group. Difference-in-difference estimation results suggest that the asset ratio policy resulted in a 9.6% rise in loans and an 8.4% rise in government securities. Deposits also increased, with no significant change in their composition. The policy initially generated a 7% increase in the credit risk allowances of banks in the treatment group, which vanished in the following periods. Based on all these, the paper argue that the policy was successful in providing liquidity to the economy without jeopardizing the financial stability. The findings of this study show that asset ratio policy is effective in increasing credit growth in countries with limited policy space such as Turkey. While saying this, the importance of the robust and prudent structure of the banking system in the economy should be underlined. Otherwise, the policy may have an unintended consequence of raising systemic risk. The policy suggestions also apply to advanced countries where the monetary policy has reached a natural limit due to the zero lower bound (ZLB). The ZLB problem encouraged these countries to use quantitative easing schemes in the aftermath of the Covid-19 crisis, just like the global financial crisis. However, it may take a long time to undo the effects of this policy on the balance sheets of central banks. In such cases, asset ratio policy can also be considered as an alternative tool for advanced economies notwithstanding the fact that the banking system should be prudent, well-capitalized and the country should have enough fiscal space. The main objective of the asset ratio policy was to help SMEs that were in urgent need of liquidity at the beginning of the crisis. The bank balance sheet data used in this paper does not contain information about the borrowers of the loans extended during the implementation of the policy. Analysis of this dimension using matched bank-firm level data will better demonstrate the success of the policy in achieving this goal. The paper address this as the main limitation of the paper and leave that analysis for future research. This paper provides an important contribution to the literature by assessing a new unique policy whose objective is to stimulate loans and mitigate the impact of the Covid-19 crisis on the economy. The policy in question is predicted to have effects on the asset and liability structure and risk exposure of the banking system in Turkey. The quantitative analysis in this study estimates these impacts and discusses the effectiveness of the new policy in providing a relief for firms and households in need. Whether or not the policy caused a disruption in the sound structure of the banking system in Turkey is another question addressed in the paper.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-22
      DOI: 10.1108/IJOEM-05-2021-0796
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Monetary policy decisions and bank profitability: evidence from an
           emerging economy

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      Authors: Gloria Clarissa Dzeha , Christopher Boachie , Maryam Kriese , Baah Aye Kusi
      Abstract: This study provides empirical evidence for the first time on how different measures of monetary policy affect banking profitability in Ghana. Providing empirical evidence on how different measures of monetary policy affect banking profitability in Ghana using 29 banks for period between 2006 and 2016, new monetary indexes are developed and a robust panel random effect models is employed with year effect controls. The results show that while increase in monetary policy basis point reduced banking profitability, average monetary policy rate stimulated banking profitability. Interestingly, the monetary policy basis point and rate indexes developed reduced and enhanced banking profitability, respectively. While these results may sound contradictory, they have both theoretical and empirical backing. Thus, basis point increments serve a monetary policy tightening condition which leads to higher loan prices, lower borrowing and declined profitability in the short run. However, in the long run, banks adjusted their loan prices and deposits to reflect basis point changes in their favor, hence the positive effect of average monetary policy rate on banking profitability. Additionally, monetary policy easing which represents decline in monetary policy basis point and rate enhances banking profitability. These findings imply bank managers may take advantage of monetary policy easing to maximize profits in the banking sector of Ghana. Also, the monetary policy committee must be mindful of monetary policy tightening through basis point change since upward basis point increments reduce banking profitability. This study provides empirical evidence for the first time on how different measures of monetary policy (developing indexes from monetary policy basis point and monetary policy rate) affect banking profitability in an emerging economy as Ghana.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-21
      DOI: 10.1108/IJOEM-08-2020-0992
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Regional business cycles in emerging economies: a review of the literature

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      Authors: Alcides Padilla , Jorge David Quintero Otero
      Abstract: This article offers a review of the literature on regional business cycles (BCs) in emerging economies. The objective is synthesizing the existing studies based on theoretical, empirical and methodological approaches. The methodological framework includes the following stages: research questions, bibliography location, the selection of articles and the evaluation of the literature, analysis and synthesis, and the reporting and use of results. The evidence suggests that expansionary phases last longer than recessions'; public expenditure shows a pro-cyclical behavior; and factors such as productive structure and international trade explain the synchronization of regional BCs. Up until now, there is no research that performs a review of regional BCs in emerging economics.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-21
      DOI: 10.1108/IJOEM-09-2021-1484
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Challenges in creating egalitarian logistic ecosystem:
           cases of app-based cab aggregators (ABCAs)

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      Authors: Nikhil Kewal Krishna Mehta , Rohit Sharma , Shreyas Chavan
      Abstract: Given the increasing volatility, uncertainty, complexity, and ambiguity, egalitarian ecosystems may play an important role to establish equality among various stakeholders. With this idea, the study aimed to understand conflicts and challenges in creating an egalitarian ecosystem in the application-based cab aggregator (ABCA) market. Narratives of various stakeholders involved in the ABCA business were collected. The study involved narrations from direct and indirect stakeholders up to saturation till common themes were found. Grounded theory methodology using constant comparison was explored to interpret the results. After the results were obtained, root cause analysis was undertaken using the why–why methodology to understand ground-level reality. In total, 13 major issues were identified using grounded theory for narrative analysis that cab aggregator companies, driver-partners, and riders faced. The stakeholders' inability in the ecosystem to see each other's problems could be accorded to their self-interest, rational boundedness and asymmetric information. These findings collude with Banaji et al. (2004) and Chugh et al. (2005). This study explained each stakeholder's perspectives about their counterparts that influence non-egalitarianism. The study further suggested possible areas for solving the issues and promoting cooperation.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-17
      DOI: 10.1108/IJOEM-02-2021-0193
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Exploring factors influencing bicycle-sharing adoption in India: a UTAUT
           2 based mixed-method approach

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      Authors: Prasanta Kr Chopdar , Miltiadis D. Lytras , Anna Visvizi
      Abstract: Bicycle sharing offers a novel way to create smart and sustainable mobility solutions for the future. The purpose of this study is to draw on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT 2) framework for identifying the factors necessary to predict bike-sharing intention among users in India. Data were collected through a questionnaire distributed across four major cities in India, and 515 responses were analyzed. A sequential approach was employed to analyze the data using Partial Least Square–Structural Equation Modeling (PLS-SEM) and Fuzzy-set Qualitative Comparative Analysis (fsQCA). The findings from PLS analysis revealed that performance expectancy, effort expectancy, facilitating conditions, hedonic motivation and price value are the salient variables that affect users' intentions to participate in bike sharing. In addition, based on fsQCA, six configurations of causal conditions are presented as intermediate solutions that produce the same results. Although antecedent conditions, such as habit and social influence, had an insignificant effect on individuals' BSI, they create conditions sufficient to encourage users' participation in bike sharing in combination with other variables. A few limitations of this research and the implications of the findings in terms of theory and policy implications are also discussed. The reported study is one of the earliest to explain bike-sharing adoption in India using the UTAUT 2 model.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-15
      DOI: 10.1108/IJOEM-06-2021-0862
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The role of value added across economic sectors in modulating the effects
           of FDI on TFP and economic growth dynamics

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      Authors: Simplice Asongu , Christelle Meniago , Raufhon Salahodjaev
      Abstract: This study investigates (1) the effect of foreign direct investment (FDI) on total factor productivity (TFP) and economic growth dynamics and (2) the relevance of value added from three economic sectors in modulating the established effect of FDI on TFP and economic growth dynamics. The geographical and temporal scopes are respectively 25 Sub-Saharan African countries and the period 1980–2014. The empirical evidence is based on non-interactive and interactive generalised method of moments. The following main findings are established. First, FDI has a positive effect on gross domestic product (GDP) growth, GDP per capita and welfare real TFP. Second, the effect of FDI is negative on real GDP and TFP while the impact is insignificant on real TFP growth and welfare TFP. Third, values added to the three economic sectors largely modulate FDI to produce negative net effects on TFP and growth dynamics. Policy implications are discussed with particular emphasis on the need to complement added value across various economic sectors in order to leverage on the benefits of FDI in TFP and economic growth. To the best of the authors’ knowledge, this is the first study to assess how value added from various economic sectors affect the relevance of FDI on macroeconomic outcomes.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-15
      DOI: 10.1108/IJOEM-10-2018-0547
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Loan to value ratio and housing loan default – evidence from
           microdata in India

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      Authors: Asish Saha , Debasis Rooj , Reshmi Sengupta
      Abstract: This study aims to investigate the factors that drive housing loan default in India based on unique micro-level data drawn from a public sector bank's credit files with a national presence in India. The authors address endogeneity in the loan to value ratio (LTV) while deciphering the drivers of default. The study uses a probit regression approach to analyze the relationship between the probability of default and the explanatory variables. The authors introduce two instrumental variables to address the issue of endogeneity. The authors also add state-level demographic and several other control variables, including an indicator variable that captures the recent regulatory change. The authors’ analysis is based on 102,327 housing loans originated by the bank between January 2001 and December 2017. The authors find that addressing the endogeneity issue is essential to specify default drivers, especially LTV, correctly. The nature of employment, gender, socio-religious category and age have a distinct bearing on housing loan defaults. Apart from the LTV ratio, the other key determinants of default are the interest rate, frequency of repayment, prepayment options and the loan period. The findings suggest that the population classification of branch location plays a significant role in loan default. The authors find that an increase in per capita income and an increase in the number of employed people in the state, which reflects borrowers' ability to pay by borrowers, reduce the probability of default. The change in the regulatory classification of loan assets by the Reserve Bank of India did not bear the main results. The non-availability of the house price index in analyzing the default dynamics in the Indian housing finance market for the period covered under the study has constrained our analysis. The applicability of the equity theory of default, strategic default, borrowers' characteristics and personality traits are potential research areas in the Indian housing finance market. The study's findings are expected to provide valuable inputs to the banks and the housing finance companies to explore and formulate appropriate strategic options in lending to this sector. It has highlighted various vistas of tailor-making housing loan product offerings by the commercial banks to ensure and steady and healthy growth of their loan portfolio. It has also highlighted the regulatory and policy underpinnings to ensure the healthy growth of the Indian housing finance market. The study provides a fresh perspective on the default drivers in the Indian housing finance market based on micro-level data. In our analysis, the authors find clear evidence of endogeneity in LTV and argue that any attempts to decipher the default drivers of housing loans without addressing the issue of endogeneity may lead to faulty interpretation. Therefore, this study is unique in recognizing endogeneity and has gone deeper in identifying the default drivers in the Indian housing market not addressed by earlier papers on the Indian housing market. The authors also control for the regulatory changes in the Indian housing finance market and include state-level control variables like per capita GDP and the number of workers per thousand to capture the borrowers' ability to pay characteristics.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-15
      DOI: 10.1108/IJOEM-10-2020-1272
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Volatility spillover analysis between stocks and exchange rate markets in
           short and long terms in East European and Eurasian countries

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      Authors: Dejan Živkov , Marina Gajić-Glamočlija , Jasmina Đurašković
      Abstract: This paper researches a bidirectional volatility transmission effect between stocks and exchange rate markets in the six East European and Eurasian countries. Research process involves creation of transitory and permanent volatilities via optimal component generalized autoregressive heteroscedasticity (CGARCH) model, while these volatilities are subsequently embedded in Markov switching model. This study’s results indicate that bidirectional volatility transmission exists between the markets in the selected countries, whereas the effect from exchange rate to stocks is stronger than the other way around in both short-term and long-term. In particular, the authors find that long-term spillover effect from exchange rate to stocks is stronger than the short-term counterpart in all countries, which could suggest that flow-oriented model better explains the nexus between the markets than portfolio-balance approach. On the other hand, short-term volatility transfer from stock to exchange rate is stronger than its long-term equivalent. This suggests that portfolio-balance theory also has a role in explaining the transmission effect from stock to exchange rate market, but a decisive fact is from which direction spillover effect is observed. This paper is the first one that analyses the volatility nexus between stocks and exchange rate in short and long term in the four East European and two Eurasian countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-14
      DOI: 10.1108/IJOEM-01-2021-0082
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Is financial development crucial to achieving the “2030 agenda
           of sustainable development”' Evidence from Asian countries

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      Authors: Purnima Khemani , Dilip Kumar
      Abstract: Achieving sustainable development goals (SDGs) demands mobilising finance and aligning it with elements of sustainability. This study, thus, aims to investigate the impact of financial development of an economy on the achievement of SDGs. The authors analyse a sample of 35 Asian countries based on their SDG trends and representative SDG indicators. An ordered probit model is employed for analysing the impact of financial development on the SDG trend. Subsequently, pairwise Granger causality test is employed for investigating the causality between the SDG and the financial development. The findings indicate that financial development positively impacts the progress towards SDG achievement in the areas: (1) gender equality, (2) economic growth, (3) industry, innovation and infrastructure and (4) sustainable cities and communities; and adversely impacts the climate action. The causality test indicates a bidirectional causality for financial development and industry, infrastructure and innovation, financial development and sustainable cities and communities and financial development and climate action, and unidirectional causality from gender equality to financial development. The findings have implications for the government of a nation as well as the private businesses. The goals allow businesses to implement well-articulated strategies which pay attention to the SDGs. The novelty of the paper is that the authors provide evidence supporting the view that focusing on building a resilient and robust financial system is of importance for the achievement of SDGs.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-11
      DOI: 10.1108/IJOEM-06-2021-0853
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • FDI and inequality in Sub-Saharan Africa: does democracy matter'
         This is an Open Access Article Open Access Article

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      Authors: Sean Gossel
      Abstract: This paper investigates whether democracy plays a mediating role in the relationship between foreign direct investment (FDI) and inequality in Sub-Saharan Africa (SSA). The empirical analysis is conducted using fixed effects and system GMM (Generalised Method of Moments) on a panel of 38 Sub-Saharan African countries covering the period of 1990–2018. The results find that FDI has no direct effect on inequality whereas democracy reduces inequality directly in both the short run and the long run. The sensitivity analyses find that democracy improves equality regardless of the magnitude of FDI, resource endowment or democratic deepening whereas FDI only reduces inequality once a moderate level of democracy has been achieved. The results discussed above thus have four policy implications. First, these results show that although democracy has inequality reducing benefits, SSA is unlikely to significantly reduce inequality unless the region purposefully diversifies its trade and FDI away from natural resources. Second, the region should continue to expand credit access to reduce inequality and attract FDI. Third, policymakers should undertake reforms that will reduce youth inequality. Lastly, the region should focus on long-run democratic reforms rather than on short-run democratization to improve governance and investor confidence. Although there are existing studies that examine the association between FDI and inequality, FDI and democracy and democracy and inequality, this is the first study to explicitly examine the effect of democracy on the association between FDI and inequality in SSA, and the first study to separately consider the possible varied effects of contemporaneous democratization versus the long-run accumulation of democratic capital. In addition, rather than measure inequality by income alone, this study uses the more appropriate Human Development Index to account for SSA's sociological, education and income disparities.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      DOI: 10.1108/IJOEM-03-2021-0321
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The mediating role of financial service branding on investment decisions:
           an emerging market's perspective

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      Authors: Robert Kwame Dzogbenuku , George Kofi Amoako , Albert Martins
      Abstract: This study seeks to assess the mediating role of financial service branding on investment decisions from the perspective of financial service investors. Field data were obtained from 403 individuals and corporate investors in financial service institutions who invested savings and pensions funds into short to medium term financial instruments from an emerging market in sub-Saharan Africa (SSA). Data were analysed using the partial least squares structural equation modelling technique (PLS-SEM). Branding significantly mediates return on investment (ROI) decisions. However, the ROI did not have a significant direct effect on investment decisions. ROI has a significant indirect effect on investment decisions due to branding influence on investors. Data collected was cross sectional. Future research can use longitudinal data for better long term planning. Study can also be done in other emerging economies to determine how the financial sector characteristics for each country can be a source of difference from branding and investment standpoint. Although consumer investment decisions are logically influenced largely by ROI, investors place savings and pensions into financial instruments largely managed by reliable corporate brands with solid reputation known as safe havens for hedging lifetime investments. This study covers the research gap in brand power and the reputation of financial service institutions as well as the investment decisions of financial service investors in emerging Sub-Saharan African.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      DOI: 10.1108/IJOEM-05-2021-0718
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Studying key antecedents of disruptive technology adoption in the digital
           supply chain: an Indian perspective

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      Authors: Tarit Mitra , Rohit Kapoor , Narain Gupta
      Abstract: The study examines the key drivers of the adoption of disruptive technologies (DTs) in the digital supply chain (DSC) in developing nations. The data were collected using well-established measures grounded in the diffusion of innovation (
      DOI ) theory. The hypotheses were tested using the structural equation modeling (SEM) approach using SmartPLS. The authors control for the demographics and apply the required statistical diagnostics for robust findings. The compatibility and IT expertise were the two key factors in adopting the DTs in DSC in developing nations. The organizations with higher compatibility and internal IT expertise and competence witness a higher level of adoption of DT. The perceived cost and complexity were not found statistically significant. This may be probably because developing nations such as India do not perceive the technology adoption complex. The research enhances DTs adoption, assuming it is organizational innovation. This study makes a theoretical contribution to the
      DOI literature. The practicing managers should pay attention to addressing the existing technology compatibility issues and spend efforts on training employees to increase the IT expertise to improve the adoption of DT. The greater adoption of the DTs in DSCs can reduce wastages in supply chains by a faster sense and response and greater technological flexibility with transparency and information sharing. The key antecedent to the acceptance of the DTs in developing nations is compatibility than complexity and IT expertise than the cost. The study's originality lies in the fact that most studies on technology adoption study a single technology, but this study captures a holistic view on a group of technologies under industry 4.0.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • How consumer uncertainty intervene country of origin image and consumer
           purchase intention' The moderating role of brand image

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      Authors: Talat Islam , Mawra Hussain
      Abstract: Country of origin is a well-studied topic for developed countries that have a favourable image. However, how country of origin image affects the consumers of an emerging country on a frontier market with high uncertainty avoidance still needs to be shed light. Therefore, this study investigated the relationship of country of origin image with consumer purchase intention through consumer uncertainty. The study further explored the conditional effect of brand image between country of origin and consumer uncertainty. The data for this study was collected from 400 Pakistani consumers. As this study assessed purchase intentions and consumer uncertainty related to high technology products of China, therefore, the consumers of the Huawei brand were selected. The findings revealed a negative influence of country of origin image on consumer purchase intentions both directly and indirectly through consumer uncertainty. Furthermore, the positive brand image of high tech products was found to moderate the effect of country of origin image on consumer uncertainty. This study is the first of its kind that explores the intervening role of consumer uncertainty between country of origin image and consumer purchase intention in an emerging market. In addition, the study highlights the importance of strong brand image as it buffers consumer uncertainty because of stereotypes.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      DOI: 10.1108/IJOEM-08-2021-1194
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Work-related social media use and employee-related outcomes:
           a moderated mediation model

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      Authors: Rahul Bodhi , Adeel Luqman , Maryam Hina , Armando Papa
      Abstract: Recently, work-related social media use (WSMU) in organisations and its association with employee outcomes have received considerable research attention. This study examines the association between WSMU, psychological well-being (PW) and innovative work performance (IP). In addition, it explores the mediating role of PW and the moderating role of fear of missing out (FoMO). A sample of 233 employees working in different organisations was recruited from India to complete the survey. Structural equation modelling was applied to analyse the data. The result reveals that WSMU has a positive and direct effect on IP. Moreover, the indirect effect via PW among the association was positive and significant. Furthermore, FoMO moderates the indirect relationship between WSMU and IP. This research is a pioneering work that has contributed to the scarce literature by exploring the relationship between employees' social media use, PW and IP. This research has important theoretical and management contributions because it examines the impact of WSMU on IP, mediating role of PW and moderating role of FoMO among the association between WSMU and employee outcomes.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      DOI: 10.1108/IJOEM-09-2021-1359
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Will music with or without fragrance in retail stores increase consumer
           purchase behaviour in emerging markets'

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      Authors: Rajesh Srivastava
      Abstract: This paper studied the effects of music plus fragrance or music alone on consumer purchase behaviour, footfalls and repeat visits to retail stores in the context of the mall. A primary research was conducted through a structured questionnaire. A field study was conducted in two malls that attract the maximum crowd. The data from 250 respondents were analysed in total. As per the present study, the combination of playing music with fragrance is more effective compared to playing music or fragrance alone on shopping behaviour, footfalls and repeat visits in retail stores in emerging markets like India. The study is more confined to a comparative study of the effectiveness of music with or without fragrance on consumer purchase behaviour and footfalls in retail stores located in malls. In view of research design, this could be a limitation of the study as types of music and other ambiance factors are not considered. The present study can be extended to religion as the religiosity of respondents may give a different response. The urban respondents may vary when compared to rural consumers. Therefore, the study can be extended by adding the rural or A-city mall or smaller malls in big cities. Research can be extended in the coronavirus disease 2019 (COVID-19) era to see if there is a change in consumer behaviour. It can also be extended to consumer's preference for different music and different fragrances. This paper provides marketing managers and retail owners with valuable insights on the importance of using music with fragrance in retail stores to create unique consumer experiences in emerging markets that are different from developed countries. Managers should try to create both music, and fragrance in the store to improve purchase intention, and stay longer. To ensure that the planned music and fragrance approach creates the ambiance for consumers, marketing managers are advised to conduct market research. Special care should be taken for younger visitors to the store by creating the right ambiance. The present research will help many offline retailers' managers to strive for new competitive advantages through creating favourable shopping environments by understanding cultural differences. The research gives direction to use music with a fragrance in the retail ambiance in the malls which will lead to improved consumer purchase, more footfalls, repeat visits and staying longer in emerging markets like India, which is a destination for global brands. Integration of three models of impulse buying (Rook and Fisher, 1995), individualism and collectivism (Triandis, 1995) and stimulus–organism–response (S–O–R) model of Mehrabian and Russell (1974) is used to explain the complex behaviour of consumers towards more purchases and repeat visits. The study will shed light on the quandary that retailers in the organised sector face in emerging markets such as India regarding the use of music and fragrance, as well as the impact on purchase behaviour, footfalls and repeat visits.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-10
      DOI: 10.1108/IJOEM-10-2021-1533
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Service sector subsidiary performance in emerging markets: is it who or
           what you know'

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      Authors: Sven Dahms , Ambika Zutshi , Sandeep Puri
      Abstract: This research investigates performance determinants of service sector foreign-owned subsidiaries located in an emerging market. The focus is on the two dimensions of organizational networks (Who do you know') and competencies (What do you know'). Data were collected via a large-scale survey of managing directors located in the midrange emerging economy of Taiwan. The data are analyzed using partial least squares structured equation modeling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) techniques. The results show the importance of intraorganizational network strength as a key determinant of subsidiary performance, and that combinations of interorganizational network strength and competencies can determine performance in several subsidiaries. This article offers new insights by testing a theoretical framework based on network perspective and the competence-based view of the firm in an emerging market context. It also offers an additional twist by employing symmetric (PLS-SEM) and nonsymmetric (fsQCA) methods to test the framework. This allows to arrive at robust conclusions about the complementarity and substitutability of the applied theories. This research also contributes to the current literature by providing fine-grained insights into the nature and impact of competencies and networks. It is also one of the few studies to focus specifically on service sector subsidiaries.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-09
      DOI: 10.1108/IJOEM-04-2021-0540
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Busy commissioners and firm performance: evidence from Indonesia

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      Authors: Irwan Trinugroho , Tastaftiyan Risfandy , Mamduh M. Hanafi , Raditya Sukmana
      Abstract: Using the Indonesian setting where the government formally limits the presence of busy commissioners, the authors investigate whether a board containing busy commissioners could be beneficial or detrimental for firm performance. The authors propose an econometric model focusing on the impact of busy commissioners on the firm's profitability. The authors are also interested in investigating whether the effect is different between small and large firms and between mature and non-mature firms. A sample of 392 Indonesian listed firms from 2014 to 2020 is used in this study. The authors find a negative association between busyness and performance and this result is robust across different estimations and econometrics strategies. The authors also document that the negative impact of busy directors diminishes particularly in young and small firms. The authors also find that the impact is more pronounced in state-owned firms. From a firm point of view, the result suggests that the companies should be aware that appointing busy commissioners in the board structure can detriment market-based performance. The listed firms should also understand that busy commissioners are inefficient, especially if these firms are large, mature and state-owned. To the best of the authors’ knowledge, this is the first study investigating the relation between busy commissioners and performance by considering age, firm size and state-owned firms as a moderator in a sample of Indonesian listed firms.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-08
      DOI: 10.1108/IJOEM-01-2020-0007
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Green corporate reputation and innovation: the role of non-supply chain
           learning and green supply chain knowledge

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      Authors: Yaw Agyabeng-Mensah , Ebenezer Afum , Charles Baah
      Abstract: The growing relevance of environmental sustainability calls for identification of factors that contribute to green innovation and build green corporate reputation. Drawing on the resource-based view theory, this study aims to explore the influence of green logistics knowledge, green customer knowledge, green supplier knowledge, green competitor knowledge, non-supply chain learning on green innovation and green corporate reputation. This study adopts the quantitative research method where questionnaire is used to gather data from managers of the sampled 208 small and medium enterprises (SMEs). The structural equation modelling is used to analyse the survey data and test the proposed hypotheses. The findings reveal that non-supply chain learning, green customer knowledge and green competitor knowledge have both direct and indirect impact on green innovation and green corporate reputation. However, green supplier knowledge and green logistics knowledge directly impact green innovation but indirectly impact green corporate reputation through green innovation. Despite the growing literature exploring the relationship between learning, innovation and reputation, their literature in emerging economies remains underdeveloped. This study provides empirical evidence to confirm the role of non-supply chain learning and green supply chain knowledge in building green corporate reputation and developing green innovation of SMEs in an emerging economy.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-08
      DOI: 10.1108/IJOEM-08-2021-1277
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • COVID-19, stock prices, exchange rates and sovereign bonds:
           a wavelet-based analysis for Brazil and India

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      Authors: Veli Yilanci , Ugur Korkut Pata
      Abstract: This study aims to investigate the impact of the rise in coronavirus disease 2019 (COVID-19) cases on stock prices, exchange rates and sovereign bond yields in both Brazil and India. The authors employ the wavelet transform coherence (WTC) and continuous wavelet transform (CWT) techniques on daily data from March 17, 2020 to May 8, 2021. The findings show that COVID-19 has no impact on exchange rates but slightly increases sovereign bond yields from 2021 onwards. In contrast, the effect of COVID-19 on stock prices is quite high in both countries. There is a considerable consistency between COVID-19 cases and stock prices across different time–frequency dimensions. The rise in COVID-19 cases has an increasing effect on stock prices in Brazil and India, especially in the high-frequency ranges. As far as the authors know, no prior study has simultaneously analyzed the effects of the COVID-19 pandemic on exchange rates, stock prices and sovereign bonds in Brazil and India.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-08
      DOI: 10.1108/IJOEM-09-2021-1465
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Determinants of medical tourism: application of Fuzzy Analytical
           Hierarchical Process

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      Authors: Sunita Guru , Anamika Sinha , Pradeep Kautish
      Abstract: The study aims to facilitate the medical tourists visiting emerging countries for various kinds of ailments by ranking the possible destinations to avail medical treatments. A Fuzzy Analytical Hierarchical Process (FAHP) with a mixed-method approach is applied to analyze data collected from patients and substantiate it with medical tour operators in India to gain managerial insights on the choice-making patterns of the patients. India is a preferred emerging market location due to the low cost and high medical staff quality. India offers value for money, whereas Singapore and Thailand are preferred destinations for quality and technology. The study will facilitate the emerging markets' governments, hospitals and medical tourists to understand the importance of various determinants responsible for availing medical treatment outside their country. The study recommends that cost and quality care are the patients' prime focus; government policies must provide clear guidelines on what the hospitals and country environment can offer and accordingly align the marketing strategies. This study is the first attempt to rank various factors affecting medical tourism using the FAHP approach.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-07
      DOI: 10.1108/IJOEM-08-2021-1173
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The foreignness effect on internationalisation depth: the perspective of
           multicomplexity and the duality of foreignness

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      Authors: I-Fan Yen , Hsin Mei Lin , Yi-Tien Shih
      Abstract: The literature on foreignness has, to date, stressed the liability of foreignness (LOF) and the advantage of foreignness (AOF). Drawing on industrial organisation theory, institutional theory, the resource-based view of the firm and the literature on networking, the authors’ research develops an integrated framework to explore the impact of foreignness on internationalisation depth from the perspective of the duality of foreignness (LOF versus AOF) within multiple dimensions. These dimensions are isomorphism, home country of origin, institutional distance and dual embeddedness of multinational enterprises (MNEs). In this study, the authors empirically test hypotheses arising from this new theoretical framework by examining the characteristics of a sample of 324 Chinese MNEs (CMNEs) that were operating in 63 countries from 1999 to 2018. Employing regression analysis on a panel of 9,410 observations, the results show that foreignness does exhibit multilevel complexity and duality. The authors’ empirical results show that isomorphism pressures, country of origin and institutional distance have a negative effect on internationalisation depth (as an outcome of LOF) but that dual embeddedness, on the part of MNEs, exerts a positive impact on internationalisation depth (as an outcome of AOF). The implications for research on multilevel complexity and the duality of foreignness are discussed, and managerial implications are outlined. The implications of the authors’ findings for MNEs should not be generalised to developed countries without examining the characteristics of both China as an emerging country and its MNEs. The second limit is regarding ownership; this framework has limitations due to choosing China and its OFDIs for testing internationalisation depth. Finally, for subsequent research, examining the dynamics of foreignness completes the nature of multicomplexity, defined by external and internal factors of foreignness changing over time and space. CMNE managers are advised to actively scrutinise their behaviours in the local country to overcome the differences in routines, values and practices inherent in local institutions (Chen et al., 2019). The results imply that CMNEs should be careful not to overuse their home country image when penetrating a new market. Thus, a strategy to reduce a home government's hegemonic or otherwise negative image may be wise when operating abroad. Finally, the authors’ model suggests that CMNEs equipped with great RCN CIPs for identifying, scanning and interpreting local institutions can enhance internationalisation depth. The authors’ research contributes to research on foreignness by emphasising foreignness as a construct of multilevel complexity. The authors argue that foreignness arises due to varying factors at the host, home, host-home levels and at the level of the organisational entity. The authors’ definition of foreignness and empirical results supports the notion that isomorphism pressures (host country-level factors), country-of-origin of home country (home country-level factors) and institutional distance (host-home country-level factors) are inextricably negatively linked with internationalisation depth (as effects of LOF). By contrast, the dual embeddedness of MNEs (the factor of organisational level) represents a positive relationship with internationalisation depth (as effects of AOF).
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-03
      DOI: 10.1108/IJOEM-12-2020-1522
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Inbound tourism demand elasticities of MENA countries: the role of
           internal and external conflicts

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      Authors: Ojonugwa Usman , Andrew Adewale Alola , George Ike
      Abstract: In this paper, the authors investigate the inbound tourism demand elasticities of the Middle East and North African (MENA) countries. The authors emphasize the role of external and internal conflicts, world gross domestic product and relative prices over the period 1995–2017. This study applies the heterogeneous panel data estimators based on the fully modified-OLS (FM-OLS), dynamic-OLS (DOLS) and the recently developed method of moments quantile regression (MMQR). The empirical results indicate that the effect of external and internal conflicts on inbound tourism demand is negative and inelastic with external conflict having a stronger effect. The effect of both classifications of conflicts diminishes as the market share of the tourist destination increases. In addition, the role of the world GDP on tourism demand is positive and elastic, suggesting that tourism is a luxury good while an increase in relative prices diminishes inbound tourism demand. The paper, therefore, concludes that if policy measures are not put in place to curtail incidences of conflicts, economic growth in these countries may suffer setbacks. This by implications could affect the attainment of the sustainable development goals (SDGs) targets.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-02
      DOI: 10.1108/IJOEM-04-2021-0650
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Entrepreneurship, gender and success in Lebanon

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      Authors: Hayfaa Tlaiss
      Abstract: The aim of this paper is to explore how men entrepreneurs construe their success and the influence of the socio-cultural context and political and economic turbulence on their construals of success in the context of the Arab country of Lebanon. To achieve the objective, the author draw on intersectionality theory and capitalise on twenty in-depth, semi-structured interviews with men entrepreneurs. The findings reveal how construals of success by men entrepreneurs occur at the nexus between patriarchy, gendered expectations and adverse economic and political conditions. As a result, success is construed through the perseverance and legitimacy of their business and their compliance with expected family roles. These construals unfold as the men hold themselves accountable for and do gender and success per the ideal expectations indoctrinated by patriarchy. The originality of this study lies in its theoretical contributions. First, it is the first study to explore the construals of success by men entrepreneurs in an Arab Middle Eastern country. Second, it contributes to a growing body of work that explores gender as a situated practice and demonstrates how it is performed by men entrepreneurs while construing their success. Third, it contributes to research on intersectionality in entrepreneurship and sheds light on the interconnections of gender, patriarchal socio-cultural values, economic and political conditions and entrepreneurship in Arab countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-01
      DOI: 10.1108/IJOEM-01-2021-0145
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Shaping the attitudes of Russian managers in ethical issues – personal
           attributes and environmental pressure

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      Authors: Marc Oberhauser , Dirk Holtbrügge , Igor Gurkov
      Abstract: The purpose of this study is to investigate how the attitudes of Russian managers are affected by personal attributes, environmental conditions and also cognitive processes. Based on social cognitive theory, the authors developed hypotheses and tested them against data collected from 173 Russian managers via an online survey. A linear regression analysis revealed several determinants of ethical attitudes within the Russian context. The findings suggest that personal values (i.e. political orientation), environmental conditions (i.e. hierarchical level, ownership – state-owned versus private – of the current employer, industry in which a manager works) as well as cognitive processes (i.e. the presence (absence) of multilingualism at the workplace) strongly affect ethical attitudes of Russian managers in several issues related to both job ethics (relations inside the organization) and business ethics (relations outside the organization). Revealing a positive effect of multilingualism as cognitive process on managers' ethical attitudes, this study calls for incorporating a second lingua franca, for example, English, within the working context. The study provides an in-depth investigation of the determinants of ethical attitudes in Russia. Conducting a single-country study, the authors are able to reveal locally meaningful determinants that may otherwise be overlooked.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-01
      DOI: 10.1108/IJOEM-05-2021-0779
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Policy-oriented restart of supply and demand after COVID-19: firm-level
           evidence for China

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      Authors: Chao Liang , Bai Liu , Hing Kai Chan
      Abstract: China is the only major economy in the world that has achieved positive gross domestic product (GDP) growth in 2020. The paper aims to explore the effect of China's public policy restarting supply and consumption after coronavirus disease-2019 (COVID-19). Affected by the epidemic, global economic growth slowed down. Using the stock price data of Chinese A-share listed company, combining natural experiment and event study method, the paper examines the policy effects of work resumption and consumer vouchers. Compared with demand capacity, the work resumption has a more significant role in promoting the supply industry. Issuing consumer vouchers can effectively promote local demand recovery, and the effect is mainly concentrated in the industries involved in consumption vouchers. At the same time, public management capacity and the income level of residents play an important role in restarting supply and demand. Understanding China's public policies and effects are of positive significance to the restoration of economic development in other countries. The study contributes to knowledge by empirically examining the effect of China's public policies against the COVID-19 pandemic. The paper also expands the scope of policy-oriented research based on the perspective of supply and demand capacity building.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-01
      DOI: 10.1108/IJOEM-08-2021-1284
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Do and harmonious leadership matter in the sociocultural integration by
           Chinese multinational enterprises in The Netherlands'

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      Authors: Zhe Sun , Liang Zhao , Hongji Wei , Xiaoming Wang , Rosanne Rosalie Riemersma
      Abstract: The study aims to examine the effects of guanxi and harmonious leadership on acquisition performance and the role of sociocultural integration as a mediating mechanism impacting the above links, with a focus on Chinese cross-border acquisitions in The Netherlands. Data were collected through survey questionnaire with 91 respondents who work in Dutch-acquired companies. Regression analysis was used for exploring the relationship. The study finds that both guanxi and harmonious leadership are positive to acquisition performance, and sociocultural integration represents a significant mediating mechanism by which guanxi and harmonious leadership can result in improved acquisition performance. This study contributes to culture research by emphasizing the clarification of specific Chinese cultural values and cultural practices in cross-border acquisitions and examining the role of guanxi and harmonious leadership in acquisition performance. Meanwhile, this study helps to unveil Chinese cross-border acquisitions in The Netherlands by examining the mediating force – sociocultural integration.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-01
      DOI: 10.1108/IJOEM-11-2020-1350
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate environmental responsibility and innovation: empirical evidence
           from Vietnam

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      Authors: Van Ha Nguyen , Nam Hoang Vu
      Abstract: This study aims to examine the relationship between corporate environmental responsibility (CER) practices and different types of innovation carried out by small- and medium-sized enterprises (SMEs) in Vietnam. The authors employ the bivariate probit model and the two-stage least squares regression model to estimate the effects of CER on process innovation and product innovation of SMEs. The findings show that while CER is not significantly related to product innovation, it has a positive and significant effect on process innovation. Further analysis indicates that CER engagement increases labor productivity and financial performance of SMEs. Corporate managers should view implementation of environmental responsibility practices as a strategy to foster process innovation and boost labor productivity and financial performance. For policy makers, government support for firms proactively engaging in CER practices could encourage firms to pursue innovative activities, which are vital to their long-term success as well as to the society's prosperity. This study makes several important contributions. First, the authors provide new empirical evidence regarding the different effects of engaging in environmentally friendly practices on firm innovation in an under-examined emerging market setting. Second, the authors enrich our understanding of potential benefits of CER implementation. Third, the findings suggest that firm innovation may play a mediating role in the CER–firm performance association.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-31
      DOI: 10.1108/IJOEM-05-2021-0689
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Multifractality during upside/downside trends in the MENA stock markets:
           the effects of the global financial crisis, oil crash and COVID-19
           pandemic

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      Authors: Walid Mensi , Imran Yousaf , Xuan Vinh Vo , Sang Hoon Kang
      Abstract: This paper examines asymmetric multifractality (A-MF) in the leading Middle East and North Africa (MENA) stock markets under different turbulent periods (global financial crisis [GFC] and European sovereign debt crisis [ESDC], oil price crash and COVID-19 pandemic). This study applies the asymmetric multifractal detrended fluctuation analysis (A-MF-DFA) method of Cao et al. (2013) to identify A-MF and MENA stock market efficiency during the COVID-19 pandemic. The results show strong evidence of different patterns of MF during upward and downward trends. Inefficiency is higher during upward trends than during downward trends in most of the stock markets in the whole sample period, and the opposite is true during financial crises. The Turkish stock market is the least inefficient during upward and downward trends. A-MF intensifies with an increase in scales. The evolution of excessive A-MF for MENA stock returns is heterogeneous. Most of the stock markets are more inefficient during a pandemic crisis than during an oil crash and other financial crises. However, the inefficiency of the Saudi Arabia and Qatar stock markets is highly sensitive to oil price crashes. Overall, the level of inefficiency varies across market trends, scales and stock markets and over time. The findings of this study provide investors and policymakers with valuable insights into efficient investment strategies, risk management and financial stability. This paper first explores A-MF in the MENA emerging stock markets. The A-MF analysis provides useful information to investors regarding asset allocation, portfolio risk management and investment strategies during bullish and bearish market states. In addition, this paper examines A-MF under different turbulent periods, such as the GFC, the ESDC, the 2014–2016 oil crash and the COVID-19 pandemic.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-28
      DOI: 10.1108/IJOEM-08-2021-1177
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Entrepreneurs' exit strategies and their determinants: the role of
           perceived exit challenges

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      Authors: Izabela Koładkiewicz , Łukasz Kozłowski , Marta Wojtyra-Perlejewska
      Abstract: The study aims to investigate whether the perceived problems in exiting a business—as well as the scope of and access to external support—may impact an entrepreneur's decision regarding the exit strategy, that is, the choice between the stewardship and harvest exit strategy. The authors have collected data from 302 entrepreneurs using a novel survey instrument and subjected the sample to structural equation modeling (SEM) and ordered logit regressions. The results reveal that potential difficulties in implementing an exit strategy, the scope of external support anticipated by the exiting entrepreneur and access to such support influence the potential choice of an exit strategy. Furthermore, the findings indicate that the stewardship exit strategy is preferred over the harvest exit strategy by entrepreneurs who face potential difficulties in obtaining external support or foresee problems related to a potential exit strategy. This study provides new insights into an entrepreneur's exit phenomenon by adding new elements, such as perceived problems involved in exiting a business as well as the scope of and access to external support, to the list of factors that may affect the choice of an exit strategy.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-27
      DOI: 10.1108/IJOEM-08-2021-1260
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Framework and determinants of benchmarking: a theoretical analysis
           and case study in Vietnam

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      Authors: Viet Hoang , Khanh-Duy Nguyen , Hoang-Le Nguyen
      Abstract: This study aims to develop a benchmarking model with productivity, management, and sustainability indicators (PMS), measure the performance of furniture firms in Vietnam, explore the causes of performance gaps, and identify the barriers and factors of benchmarking practice. The article uses both qualitative and quantitative methods. Literature review, exploratory interviews and a grounded-theory process are employed to develop a benchmarking framework and identify performance gaps, barriers and factors of benchmarking practice. The PMS benchmarking model and quantitative analysis are utilized to assess performance indicators. The study proposes the PMS benchmarking model and measures performance indicators of furniture firms. The sources of performance gaps are explored as design, material supply, the economy of scale, market, management systems and openness. Benchmarking practice encounters barriers of difficult indicators, unsuitable firms, insufficient benchmarking knowledge, reluctance to share data, unavailable and unreliable data, and weak engagement. Benchmarking practice is determined by core factors: leader; internal factors: systems, engagement, strategy, scope, culture; external factors: customers, suppliers, associations, support, competition. Firms could learn benchmarking indicators and the causes of these gaps to improve their performance. When implementing a benchmarking study, scholars and practitioners need to pay attention to barriers and factors of the benchmarking practice to ensure effective results. This study develops the PMS benchmarking model and estimates performance indicators in an emerging country with the performance gap justification. It provides readers with benchmarking barriers with solutions and success factors of benchmarking practice.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-26
      DOI: 10.1108/IJOEM-04-2021-0553
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Debt maturity structure and firm investment in the financially constrained
           environment

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      Authors: Muhammad Nouman , Ijaz Ahmad , Muhammad Fahad Siddiqi , Farman Ullah Khan , Mohammad Fayaz , Idrees Ali Shah
      Abstract: The financial policies of the modern world corporations and their investment decisions are generally considered as interrelated because the agency problems, associated with the debt level and its maturity structure, give rise to incentives for overinvestment or underinvestment. The present study empirically investigates the linkage between debt maturity structure and firm investment in a financially constrained environment, using Pakistan as a case study, to determine how the institutional environment in which firms operate affect these decisions and their linkage. The empirical analysis is carried in a panel data setting using panel regression models as the baseline methods. Moreover, generalized methods of moments (GMM) estimators are used, coupled with the instrumental variables approach, for robustness and improving the efficiency and consistency of estimates. Results suggest that firms rely more on short financing in Pakistan. Thus, given the capital structure which is characterized by higher proportion of short-term financing, the higher level of leverage is less likely to cause underinvestment problem. However, the underinvestment problem do persists in the firms that have higher portion of long-term debt. These findings imply that the debt-overhang problem may persist even in the financially constrained environments where attractive investment opportunities are limited, and long-term financing is difficult to acquire. This study contributes to the literature by revealing how corporate investment and financing decisions and their linkage is influenced by the institutional environment of the less developed countries which is characterized by underdeveloped financial markets, inefficient legal system and weak investor protection system.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-26
      DOI: 10.1108/IJOEM-08-2020-0908
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Corporate social responsibility and SMEs' performance: mediating role of
           corporate image, corporate reputation and customer loyalty

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      Authors: Thanh Tiep Le
      Abstract: The purpose of the paper is to evaluate the essential role of corporate social responsibility (CSR) on SMEs' performance by exploring the mediating role of corporate image (CI), corporate reputation (CR) and customer loyalty (CL) between CSR and firm performance (FP) in the context of an emerging country. Based on an extended literature review on CSR, CI, CR and CL studies, the authors evaluate the impact of these four constructs on SMEs' performance in an emerging market. The paper follows a quantitative approach. The study sample was composed of 482 responses covering top executives, managers and experts. The Smart PLS SEM version 3.3.2 was used to analyse the data of the small- and medium-sized enterprises (SMEs) of Vietnam in the year 2020–2021. The authors' findings reveal significant and positive relationships amongst CSR, FP, CSR and CI, CSR and CR, CSR and CL, and most importantly, the findings add value to the current knowledge by exploring the mediating effect of CI, CR and CL between CSR and FP. The study was conducted in Vietnam. As a result, the findings of the study might not be applicable for other countries, if the economic and environmental settings are different from that of Vietnam. Therefore, future research should consider for other countries, other regions. Second, due to the purpose and priority of the study, CI, CR, and CL was employed as mediators amongst the relationship between CSR and FP. Thus, future research should consider other mediators or moderators in such a relationship to see how CSR generates outcomes in the new associations. The study regarding the role of CSR in enhancing the performance of SMEs can motivate firm's chief executive officers (CEOs) to be proactive in getting involved and practising CSR in a consistent manner. Second, the above discussion draws a very important implication for the executive level, the management level of the enterprise, which enterprises should balance the interests of business, customers, other stakeholders, the environment and society in order to optimise CSR outcomes for improving competitiveness and developing sustainably. This implication is particularly important to the survival and development of SMEs in a challenging emerging economy. The study widens the literature regarding relationship between CSR and SMEs' performance. Besides, the study supports stakeholder theory that explains why CSR positively affects firm's performance. The significant mediating roles of CI, CR and CL were positively confirmed in the study. Although previous studies determined that such roles are strategic source of competitive advantages of enterprises, however, how CSR involved in enhancing the roles has not been deeply explored and integrated. Third, the findings of the study support the resource-based view (RBV) and resource-based perspective that explains why firm should engage in CSR activities, and CI, CR and CL can enhance firm's performance by providing strategic source of competitive advantages that facilitate business to improve its performance in sustainable direction. To the best of the authors' knowledge, the current literature on CSR and FP shows that, to date, there has been little empirical research on the mediating mechanism of CI, CR and CL in the link between CSR and FP for SMEs. The findings of the study may have great implications for entrepreneurs and top management with respect to the strategic perspectives to drive the businesses and to improve firm's performance in a sustainable direction in the context of emerging markets. In addition, the finding might be of great interest to – and motivate – SMEs' managers to engage with CSR actions where such businesses were or are situated during and after the coronavirus disease-2019 (COVID-19) pandemic. By that understanding, the Government might allow for innovative and groundbreaking policies or the reformation of old policies to leverage businesses to promote their strengths towards sustainable development in the new economic settings. The findings of the study may be a significant contribution to SMEs in Vietnam and in other emerging economies.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-25
      DOI: 10.1108/IJOEM-07-2021-1164
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Empirical comparison of -compliant vs conventional mutual fund performance

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      Authors: Naseem Al Rahahleh , M. Ishaq Bhatti
      Abstract: This paper investigates the performance of locally focused equity mutual funds (LFEFs) in Saudi Arabia as compared with the performance of benchmark funds. More specifically, the focal question pertains to whether Shariah-compliant mutual funds (SMFs) and conventional mutual funds (CMFs) outperform their respective benchmarks. Undertaken in the context of Saudi Arabia's economic planning under Vision 2030, the study offers a foundation for determining whether and the extent to which Shariah-compliant investment strategies are competitive—a matter of considerable importance across 57 Muslim countries. The Carhart four-factor model is applied to a sample of 39 Saudi Arabian mutual funds (MFs) using the monthly net asset value (NAV) per share. The sample period, April 2007 to October 2016, is considered in its entirety and as three sub-periods, i.e. low-, medium- and high-volatility. The results show that the locally focused equity mutual funds (LFEFs) significantly outperformed their benchmark, i.e. the Tadawul All Share Index (TASI), during the full sample period and the low-volatility period. According to the empirical comparison, the CMFs also outperformed their TASI benchmark for the full sample period and the low-volatility period. However, the SMFs neither outperformed nor underperformed their S&P Saudi Arabia Domestic Shariah Index benchmark. That is, for each of the SMFs included in the sample, the Jensen's alpha was insignificant for both the full sample and all three volatility sub-periods. In this paper, the four-factor model is used in the context of a single country. The results, therefore, may not be generalizable to the multi-country level in the Gulf Council Cooperation (GCC) region given differences between the member countries in terms of financial structure and economic focus. The results reported constitute a useful guide for policymakers and faith-based-sensitive investors concerned about the Shariah compliancy of their portfolios given that there is very little difference between how CMFs and SMFs performed in the focal period. This research can be extended to include other Islamic countries in the GCC region as a basis for identifying optimal investment vehicles, i.e. those most likely to produce high returns at low risk. The work reported in this paper is original and constitutes a valuable asset for ethnoreligious-sensitive investors. The research has not been published in any capacity and is not under consideration for publication elsewhere.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-21
      DOI: 10.1108/IJOEM-05-2020-0565
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Revisiting expectation confirmation model to measure the effectiveness of
           multichannel bank services for elderly consumers

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      Authors: Neena Sinha , Nidhi Singh
      Abstract: This study aims to understand the expectations of elderly bank customers with mobile banking services and to measure its impact on their long-term satisfaction and continued intention. The study is based on two theories, expectations-confirmation theory (ECT) and hedonic adaptation theory. A self-administered longitudinal survey was completed with a sample of 208 elder customers who do not use mobile banking services. Latent growth curve modelling approach was used to determine the change in their post-adoption experience over four time points. Results of the study confirm that the use of mobile banking services prolongs the duration of customer satisfaction and continued intention level, post-adoption, reinforcing the hedonic adaptation theory. Mobile banking services are going to be a significant component of the multichannel banking agenda. But it might be interesting to review other digital channels of banking services. The key contribution of this study is that it measures the expectation-confirmation link of elderly customers with mobile banking services. The study sheds light on factors that positively influence customer inclination and adoption of multichannel banking services in the long run, which is important for the commercial success of such channels. The study highlights the importance of elder customers' pre-expectations, related dimensions which are important for post-adoption experiences of mobile banking services to improve customers' satisfaction and continued intention in the long run. This is crucial for the commercial success of banks. This is the first such study that used the expectation confirmation model (ECT) and related it with hedonic adaptation theory to assess elderly customer's post-adoption satisfaction and continued usage of mobile banking services over time.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-17
      DOI: 10.1108/IJOEM-03-2021-0361
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • The impact of market orientation on small firm performance:
           a configurational approach

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      Authors: Sanjay Chaudhary , Deepak Sangroya , Elisa Arrigo , Giuseppe Cappiello
      Abstract: In this study, the authors examine the influence of market orientation on small firms' performance. The authors theorize that the association between market orientation and small firm performance provides an incomplete picture in a competitive environment. The application of configuration approach which involves simultaneous consideration of market orientation, strategic flexibility and competition intensity is crucial to examine driver of firm performance. The sample of the research study consists of 272 small firms from an emerging economy, India. Ordinary least squares regression has been used to investigate the hypothesized relationships. The authors noted that the three-way interaction between market orientation, strategic flexibility and competition intensity elucidates variance in small firm performance over and above a contingency model and a direct relationship. The findings contribute to the existing literature by exhibiting the effect of market orientation on firm performance. The configuration model suggests that small firms can outperform competitors in a lower competitive environment if they have high market orientation and high strategic flexibility investment. To leverage market opportunities and achieve better firm performance, small firms’ owners should analyze the usefulness of current capabilities in a changing competitive environment concurrently and align market orientation to those conditions. The strategic management and marketing literature suggests that relationship between market orientation and performance is ambiguous. The findings offer insights to managers regarding the appropriate use of strategic flexibility in leveraging the benefits of market orientation in a highly competitive environment. Furthermore, by collecting data from the context of an emerging economy, India, the authors attempt to strengthen the applicability of market orientation in different contexts.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-14
      DOI: 10.1108/IJOEM-03-2021-0411
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Developing a competitiveness index at sub-national level for India:
           an economic growth measure

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      Authors: Nirmalkumar Singh Moirangthem , Barnali Nag
      Abstract: The objective of this study is threefold–first, to develop a Regional Competitiveness Index (RCI) for measuring competitiveness of sub-national regions for India; second, to test this index for its ability to explain regional growth, which validates usage and applicability of this index; and third, to further investigate if the competitiveness of states is in turn caused by economic growth, i.e. it is tested if there is a bidirectional causality between competitiveness and regional growth. The data of indicators used in the index are from sources available freely in public domain. The competitiveness index is constructed using equal weightage supported by principal component analysis (PCA) technique. The causal relationship analysis is done using panel data of 10 years from 2008 to 2017 for 32 Indian states/union territories. The generalized method of moments (GMMs) is used for this dynamic regression estimation. Based on RCI score, states have been ranked and through rank analysis, the authors observe the performance status of these sub-national regions and are able to categorize them as improving, no change or deteriorating in regional competitiveness. Using the GMM estimation, the association between RCI and economic growth is found to be significant at 10% level. This shows that regional competitiveness as captured through the RCI score is able to explain regional economic growth and economic disparity among the sub-national units. Further, that RCI score is found to Granger-cause growth, while growth does not lead to better RCI scores. This establishes the usefulness of RCI as an important policy variable to compare states and provide direction for sectoral reforms. The limitations of the study include (1) broad assumption that these sub-national regions belong to a uniform macro-economic and technology environment, and (2) data constraints as it is a longitudinal study. The study implies that the composite index could capture differences in regional competitiveness explaining regional economic disparity and that competitiveness causes higher economic growth and not vice versa. The RCI score can prove to be a useful indicator of economic performance of different states and can be used by national and state policymakers to compare and assess regional disparity among different states. The pillar-wise scores will be useful for in-depth study of weakness and strength of the sub-national territories. Construction of an RCI for sub-national territories and analysis of panel data for longitudinal study of ten years is unique in the regional competitiveness literature.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-11
      DOI: 10.1108/IJOEM-02-2021-0209
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Entry-level job pursuit intention: assessing person-environment
           fit in India

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      Authors: Atri Sengupta , Shashank Mittal
      Abstract: Person-environment (PE) fit theory suggests that value congruence (fit) leads to the job pursuits intention (Cable and Judge, 1996) which is also influenced by cultural norms (Ma and Allen, 2009). Due to stringent job market condition along with its people, as a part of collectivistic culture, having poor self-concept consistency, value congruence may unfold different phenomenon in Indian context. Therefore, the present study intends to explore the existing fit theory on different cultural norms and different job market condition with entry-level job pursuits as participants. The fit was measured both objectively and subjectively in a mixed method research design. Top 100 institutes ranked in NIRF (National Institutional Ranking Framework) (under Management category) were approached for data collection and 41 institutes agreed to participate. Data were collected in four phases from 2,714 entry-level job pursuits and domain experts based on web-based job advertisements. Krippendorff's alpha was calculated for measuring objective fit, and the subjective fit was measured through quadratic structural equation modeling with response surface analysis. Findings revealed lack of value congruence objectively; and no influencing role of subjective fit in job pursuits intention. This indicated that neither Indian employers nor entry-level job pursuits were concerned about value congruence. The post-hoc analysis suggested that poor self-concept consistency as a cultural norm led to such atypical findings. The present study suggests that fit may lead to different phenomena of entry-level job pursuits intention with different contextual and cultural norms.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-11
      DOI: 10.1108/IJOEM-02-2021-0293
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Fundamental analysis and the use of financial statement information to
           separate winners and losers in frontier markets: evidence from Vietnam

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      Authors: Tuan Ho , Y Trong Nguyen , Hieu Truong Manh Tran , Dinh-Tri Vo
      Abstract: The pupose of the paper is to study the usefulness of Piotroski (2000)'s F-score in separating winners and losers in Vietnam. The authors adopt a portfolio analysis and regression analysis on a sample of 501 of listed firms between 2009 and 2019 in Vietnam. The authors find that a hedge strategy that buys high-F-score firms and sells low-F-score firms yield market-adjusted return of over 30 percent annually, which is statistically and economically significant. The hedge strategy based on F-score is not only profitable for value (high book-to-market [BM]) firms but also earn abnormal returns in a sample of growth (low BM) firms, suggesting that the usefulness of F-score strategy is not just a phenomenon in value firms as documented in previous literature. Whilst the authors' paper documents economically significant returns obtained from the F-score strategy, the authors do not examine what drives the abnormal returns. The results provide supporting evidence for the use of financial statement analysis as a screening tool to improve the performance of value investment in Vietnam stock market and for the training of financial reporting and fundamental analysis in universities. The authors' research is the first study examining the F-score strategy in Vietnam that provides insights about the usefulness of fundamental analysis in separating winners and losers in a frontier market and contributes to the literature on fundamental analysis and market efficiency in emerging and frontier markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-07
      DOI: 10.1108/IJOEM-03-2020-0279
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Can market state and market volatility explain time-varying momentum
           profits in South Africa'

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      Authors: Mwangele Kaluba , Yudhvir Seetharam
      Abstract: While the momentum anomaly is prevalent in South Africa, few have examined the reasons influencing it. This study examines whether momentum profits vary through time and are affected by the state of the market and market volatility between 1998 and 2019. The authors consider combinations of portfolio construction, such as the lookback period, weighting scheme, measure of volatility and the volatility window period. They further examine the interaction of momentum with sentiment, default risk and semi-deviation as a measure of risk, as a means of testing whether behavioural factors have significant influence. The results generally show that neither volatility nor market state has explanatory power on momentum profits. These results make the momentum anomaly in South Africa an even greater mystery than before as they do not conform to the existing literature from developed economies. The authors do, however, find that default risk is a significant predictor of momentum profits, which is a useful additional factor for those fund managers who utilise momentum strategies. This implies that a fundamental factor, default risk, is a potential explanation for the market-related momentum anomaly.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-07
      DOI: 10.1108/IJOEM-03-2021-0406
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Examining the nexus between transformational leadership and follower's
           radical creativity: the role of creative process engagement and leader
           creativity expectation

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      Authors: Md. Nurun Nabi , Zhiqiang Liu , Najmul Hasan
      Abstract: The primary objective of this study is to examine the nexus between transformational leadership (TL) and followers' radical creativity (FRC). In contrast, creative process engagement (CPE) and leader creativity expectation (LCE) was employed as a mediating and a moderator role, respectively. A quantitative exploratory survey was applied as a research design, and 293 valid responses were collected from industry-university collaborative team leaders-followers. The authors performed descriptive and partial least square based structural equation modeling (PLS-SEM) analysis using the SPSS 23 and Smart-PLS 3.0 package program to test the hypothesis. Empirical results revealed that the TL positively and significantly influences the FRC. Therefore, the mediation of CPE bridges the relationship between TL and FRC, while the moderating role of LCE was insignificant. TL with higher CPE indirectly enhances the FRC. Unlike the prior conventional componential theory of creativity (CTC), this study extends the scope of CTC addressing CPE and LCE to investigate the nexus between TL and FRC and contributes to the current literature leaders-followers relationship. Practically, this research contributes to the growing body of the literature demonstrating how organizations might foster radical creativity in their employees and how to inspire followers to participate in radical creativity activities that might enhance organizational performance. This study has broadened the scope of the CTC by emphasizing the mediating function of CPE in promoting particular aspects of followers' creativity.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-07
      DOI: 10.1108/IJOEM-05-2021-0659
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Natural resources and economic growth: evidence from Brunei Darussalam

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      Authors: Muhammad Tahir , Umar Burki , Arshad Hayat
      Abstract: This paper explores the relationship between natural resources and economic growth of Brunei Darussalam, an underresearched area in the available literature. Annual data are sourced from reliable sources for the period 1989–2020. Appropriate cointegration techniques for time series data are employed to estimate the specified models and extract results. The results provide evidence about the positive and significant role that natural resources have played in the economic growth of Brunei Darussalam. Similarly, trade openness and domestic investment have also positively and significantly impacted the long-run economic growth. On the other hand, the impacts of government expenditure and the growth of human capital on economic growth are although positive but insignificant statistically in the long run. The short-run results show that natural resources, government expenditures and domestic investment have influenced economic growth both positively and significantly. Moreover, the positive and significant impact of trade openness on economic growth, which was observed in the long run, turned negative and insignificant in the short run. Finally, the insignificant positive relationship between the growth of human capital and economic growth observed in the long run remained the same in the short run. This paper studies the resource curse hypothesis for Brunei Darussalam for the first time, and therefore, the findings will be of significant interest for policymakers and researchers.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-06
      DOI: 10.1108/IJOEM-05-2021-0762
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Cultural values, entrepreneurial team structure and performance of SMEs

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      Authors: Mohammad Bashokuh-E-Ajirloo , Bahman Khodapanah , Mehdi Alizadeh , Mehdi Ebrahimzadeh
      Abstract: The main objective of this study is to explain the relationship between members' cultural values on structure and performance of the entrepreneurial teams that located in Tehran. Data used in this study are collected by a questionnaire distributed among managers and other executive members of SMEs located in Tehran. One hundred and thirty-nine participants completed the questionnaires, and their responses were analyzed using partial least squares technique. Measures showed good convergent and discriminant validity. Furthermore, Cronbach's alpha, as reliability indicator for all measures, is at the acceptable level. Research finding shows that all hypothesis supported in Iran contex. Entrepreneurial team members' cultural values have positive and significant effect on the entrepreneurial team structure. Entrepreneurial team members' cultural values have significant effect on the entrepreneurial team performance and also, the structure of the entrepreneurial team has a positive and significant effect on the entrepreneurial team performance. These studies mostly focused on technical dimensions of entrepreneurial teams and overlooked the cultural values of their members.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-04
      DOI: 10.1108/IJOEM-06-2019-0459
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Cooperation in a minimum-waste innovation ecosystem: a case study of the
           Czech Hemp Cluster

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      Authors: Jindrich Spicka
      Abstract: Innovation ecosystems face many environmental challenges. The literature review shows that innovation ecosystems accelerate innovation activity, but empirical studies have not provided enough case studies focusing on the minimum-waste business strategy as one aspect of the circular economy. Various forms of interaction between members occur in the innovation ecosystems, which determines the level of cooperation. This paper aims to show the structure and forms of cooperation in an innovation ecosystem using the Czech Hemp Cluster (CHC) and its surroundings and suggest research directions in the field of interaction between members in an innovation ecosystem. Although hemp is associated with the production and distribution of narcotics, it is a versatile plant supporting the minimum-waste business strategy. The research is based on a theoretical part of a literature review of major scientific articles on innovation ecosystems from 2016 to 2021. The case study of the CHC and the hemp ecosystem is based on qualitative research in the form of a content analysis of the mission of the cluster members. In addition to content analysis, the classic multidimensional scaling method and hierarchical cluster analysis were used to reveal ecological guilds. The case study highlighted the specific relationship between the cluster and the ecosystem. The cluster does not determine the ecosystem boundaries, but the ecosystem is a much broader system of cooperation and interaction between organisations. Clusters emerge after an ecosystem has existed for a particular time to coordinate collaboration and information between organisations and stakeholders. The analysis of the CHC revealed the specific role of non-profit organisations (NPOs) in the innovation ecosystem. NPOs are not engaged in primary functions in the value chain, but they provide supporting activities through coordinated networking, disseminating information on innovation, awareness-raising and stakeholder education. Compared to natural ecosystems, innovation ecosystems are typically characterised by higher forms of collaboration between members. An exciting opportunity for research on innovation ecosystems is the ecological guilds taken from natural ecosystems and whose identification can help define the boundaries of innovation ecosystems. An opportunity for further research is the comparison of NPO-based and government-based clusters playing a central role in developing innovation ecosystems. Regarding the problematic generalisability of the case study to the entire agricultural production, a challenge is a search for minimum-waste business models in agriculture characterised by the biological nature of production. Theoretical and empirical studies have not yet considered innovation ecosystems in the minimum-waste context to a sufficient extent. The paper builds on previous scholarly studies focusing on innovation ecosystems and, for the first time, discusses the role of NPOs in the innovation ecosystem. The CHC case study adds a suitable minimum-waste business model to the still very scarce literature on sustainable innovation ecosystems. The article discusses the purpose and forms of cooperation in an innovation ecosystem, identifies a complementarity of roles in the innovation cluster and describes the interrelationship between the cluster and the ecosystem. Discussion of the ecosystem leader in the cluster-based innovation ecosystem shows the differences between Czech, Polish and German life science ecosystems.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-03
      DOI: 10.1108/IJOEM-08-2021-1189
      Issue No: Vol. ahead-of-print , No. ahead-of-print (2022)
       
  • Guest editorial: Impact of artificial intelligence on business strategy in
           emerging markets: a conceptual framework and future research directions

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      Authors: Xinyue Zhou , Zhilin Yang , Michael R. Hyman , Gang Li , Ziaul Haque Munim
      Abstract: Guest editorial: Impact of artificial intelligence on business strategy in emerging markets: a conceptual framework and future research directions
      Citation: International Journal of Emerging Markets
      PubDate: 2022-05-16
      DOI: 10.1108/IJOEM-04-2022-995
      Issue No: Vol. 17 , No. 4 (2022)
       
  • The impact of artificial intelligence technology stimuli on smart customer
           experience and the moderating effect of technology readiness

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      Authors: Jingyan Gao , Lina Ren , Yang Yang , Duo Zhang , Lan Li
      Abstract: This research clarifies the connotations and dimensions of artificial intelligence (AI) technology stimulation and establishes a stimulus scale to explain the relationship between AI technology stimuli and smart customer experience. This is an empirical study that uses SPSS 24.0 software to perform hypothesis testing on the path relationships between model elements. Two dimensions of AI technology stimuli (i.e. passion and usability) have a significant, positive impact on smart customer experience; the moderating effects of contrasting dimensions of technology readiness (i.e. optimism and discomfort) are significantly different; smart customer experience has a significant, positive impact on the word-of-mouth (WOM) intentions of consumers. There are several limitations. Most importantly, the data collected in this study are only from consumers who use intelligent customer service robots in the catering industry. Future research can consider exploring relevant AI technologies in other sectors. This study has several implications that guide catering companies to develop various positioning and strategies for remaining competitive effectively. Based on arousal theory, customer experience theory and WOM marketing theory, this is the first novel research project that empirically discusses the dimensions of AI technology stimuli, smart customer experience and WOM intentions with regard to the moderating effect of the technology readiness of consumers toward AI technology.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-03-16
      DOI: 10.1108/IJOEM-06-2021-0975
      Issue No: Vol. 17 , No. 4 (2022)
       
  • The impact of social class and service type on preference for AI service
           robots

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      Authors: Qi Yao , Zhangjian Wu , Wenkai Zhou
      Abstract: The research aims to explore the interaction effect of consumer social class and service type on consumers' preference for robot services, as well as the mediating role of risk aversion in this interaction effect. Experiment 1 is a field experiment with service type being the independent variable. The participants were divided into two groups based on the services they received (diagnostic dental services vs. hotel room services). 93 consumers participated voluntarily in the blind experiment and were asked if they would choose to allow a robot to perform the focal services. Experiment 2 employs a 2 × 2 factorial design: personal fitness trainer services at the gym vs wait staff services in a casual dining restaurant × higher- vs lower-social class, with 196 participants. Results from the two experiments show that participants in the higher-social classes were more willing than participants in the lower-social classes to choose robot services in credence-based service settings. More significantly, risk aversion mediated the interaction effect of social class and service type on participants' preference for robot services. Based on the credence-experience typology, this research is the first to discuss the weight of social class in consumer decision-making regarding preference for different types of robot services. Furthermore, by extending risk aversion to the robot services field, the current research sheds new light on this underlying mechanism that can inform future studies.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-07
      DOI: 10.1108/IJOEM-05-2021-0804
      Issue No: Vol. 17 , No. 4 (2022)
       
  • Artificial intelligence in Peer-to-peer lending in India:
           a cross-case analysis

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      Authors: Kanwal Anil , Anil Misra
      Abstract: This is an original piece of research holding the promise to position itself as a pioneering research to showcase the evolving role of Artificial intelligence (AI) in the Indian peer-to-peer lending (P2P) markets. The research effectively uses the holistic multiple case study design to highlight the phenomenon of how AI as the holy grail of investments is proving to be a game changer for the Indian P2P markets. The study uses a unique research design and curates six Indian licensed Non-Banking Financial Company (NBFC)-P2P as exemplary cases to cull out unique contextual findings on how AI has penetrated the Indian P2P market and road ahead. The research is based on a total of 18 semi-structured interviews of six NBFC-P2P founders and 12 Fintech and P2P industry experts. These interviews were used as alternate sources of evidence for data triangulation along with within case analysis, cross-case analysis to achieve well-rounded results. The findings have been propounded in the form of unique, context specific results achieved with a bouquet of six NBFC-P2P cases and supplemented through triangulation of data done through multiple industry experts. Findings indicate that AI has reached that tipping point in India. There is a scope of further refinement of our results with a larger sample size. Therefore future researches could consider conducting a comprehensive study including all existing NBFC-P2Ps in the space. The research builds perspective for improving the practice in many ways. It shows the way to the other P2Ps still stuck to manual underwriting and see merit in AI-driven processes. It would guide them to embrace new technology driven business models to enhance customer experience and champion service transformation by making financial processes faster and secure. It also highlights how some of the P2Ps are scaling up and improving their visibility and outreach through strategic partnerships. The research would assist in creating awareness about the unique P2P sector and AI solutions for individual investors, particularly the “new to credit customers” and “thin file borrowers”. AI led initiatives in the P2P space validate a certain amount of sophistication thereby giving sanctity to the sector and would therefore enforce confidence in the minds of new age investors and borrowers. This original research unravels avenues for novel and untraversed area in the Indian settings where paucity of extant literature and structured data highlighted a research gap and hence necessitated this study. AI as a form of disruptive innovation offering predictive intelligence to the Indian P2P space and empowering it with process efficiency, cost optimization and client engagement is definitely paving the way for an exponential growth in the Indian Fintech Industry.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-02-01
      DOI: 10.1108/IJOEM-05-2021-0822
      Issue No: Vol. 17 , No. 4 (2022)
       
  • How does intelligent technology investment affect employment compensation
           and firm value in Chinese financial institutions'

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      Authors: Zhoujing Lai , Hang (Robin) Luo
      Abstract: The authors intend to expand the literature on the relationship between intelligent technology and human resources in operating cost, and firm value of financial institutions in emerging markets by integrating the influence of intelligent technology and contribute to a growing body of literature on the determinants of firm value. This paper empirically investigates the impact of intelligent technology investment on employment compensation and firm value using a sample of 86 listed financial institutions in China from 2010 to 2019. This paper reports robust evidence that an increase in intelligent technology investment has a significantly negative effect on employment compensation in financial institutions. In addition, this inhibitory effect is persistent. The increase in intelligent investment has a significant two-year lag effect on firm value, which is positive and sustained. This indicates that intelligent technology investment has a short-term “useless” effect but brings long-term “gains” for Chinese financial institutions. These findings may shed light on the decision-making processes of financial institutions, which helps practitioners better understand that firms need to reasonably deal with the subsequent cost of growth caused by intelligent technology input. Alternatively, they may wish to select the appropriate accounting method of depreciation or amortization to smooth its impact.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-25
      DOI: 10.1108/IJOEM-03-2021-0391
      Issue No: Vol. 17 , No. 4 (2022)
       
  • How AI chatbots have reshaped the frontline interface in China: examining
           the role of sales–service ambidexterity and the
           personalization–privacy paradox

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      Authors: Hua Fan , Bing Han , Wei Gao , Wenqian Li
      Abstract: This study serves two purposes: (1) to evaluate the effects of organizational ambidexterity by examining how the balanced and the combined sales–service configurations of chatbots differ in their abilities to enhance customer experience and patronage and (2) to apply information boundary theory to assess the contingent role that chatbot sales–service ambidexterity can play in adapting to customers' personalization–privacy paradox. An online survey of artificial intelligence chatbots users was conducted, and a mixed-methods research design involving response surface analysis and polynomial regression was adopted to address the research aim. The results of polynomial regressions on survey data from 507 online customers indicated that as the benefits of personalization decreased and the risk to privacy increased, the inherently negative (positive) effects of imbalanced (combined) chatbots' sales–service ambidexterity had an increasing (decreasing) influence on customer experience. Furthermore, customer experience fully mediated the association of chatbots' sales–service ambidexterity with customer patronage. First, this study enriches the literature on frontline ambidexterity and extends it to the setting of human–machine interaction. Second, the study contributes to the literature on the personalization–privacy paradox by demonstrating the importance of frontline ambidexterity for adapting to customer concerns. Third, the study examines the conduit between artificial intelligence (AI) chatbots' ambidexterity and sales performance, thereby helping to reconcile the previously inconsistent evidence regarding this relationship.
      Citation: International Journal of Emerging Markets
      PubDate: 2022-01-14
      DOI: 10.1108/IJOEM-04-2021-0532
      Issue No: Vol. 17 , No. 4 (2022)
       
  • Exploring the long-run relationship between financial inclusion and
           agricultural growth: evidence from Pakistan

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      Authors: Usman Farooq, Fu Gang, Zhenzhong Guan, Abdul Rauf, Abbas Ali Chandio, Faiza Ahsan
      Abstract: This study aims to investigate the long-run relationship between financial inclusion and agricultural growth in Pakistan for the period of 1960–2018. The autoregressive distributed lag (ARDL) approach, the Johansen co-integration test and the dynamic ordinary least squared (DOLS) method are used for the evaluation. The results show that in both short- and long run, domestic credit has a significantly negative impact on the agricultural growth, while broad money and cropped area positively affected the agricultural growth in Pakistan in both cases. The government and policymakers need to develop strategies that bring together agriculturalists on a single platform so that the government can clearly distinguish the interests of these farmers and can obtain precise information for allocating agricultural expenditure and easing access to credit for small-scale agriculturalists. This is the first study to evaluate the impact of financial inclusion on the agricultural growth in Pakistan by using different econometric techniques, including the ARDL-bound approach, Johansen co-integration test and DOLS method.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-07-06
      DOI: 10.1108/IJOEM-06-2019-0434
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Indian supply chain ecosystem readiness assessment for Industry 4.0

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      Authors: Shubham Tripathi, Manish Gupta
      Abstract: The article analyses the current readiness of India to transform its supply chain ecosystem to smarter systems with Fourth Industrial Revolution. The analysis is carried out in two stages. First, the readiness of India is assessed globally, and then the rate of transformation over the years and supporting policies are analyzed to understand the transformation potential. This analysis is done across nine identified macro factors namely government support, regulations, business environment, human resource, infrastructure, innovation capability, technological advancements, cybersecurity and digital awareness. The study combines empirical data from 2010 onwards with the strategic literature published by government bodies and institutions for analysis. Results show that India's readiness is just above the global average with a score of 0.44 on a scale of 0–1 (most ready). Government and start-up culture are found to be leading transformation factors, while digital infrastructure, regulations and cybersecurity are most lacking areas. This study is first of its kind to the best of our knowledge. The academic literature has not reported studies assessing Industry 4.0 readiness of supply chain ecosystem using macro factors for nations.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-07-06
      DOI: 10.1108/IJOEM-08-2020-0983
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Determinants of university reputation: conceptual model and empirical
           investigation in an emerging higher education market

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      Authors: Vikrant Kaushal, Deepak Jaiswal, Rishi Kant, Nurmahmud Ali
      Abstract: The study aims to explore and test the integrated relationships between university reputation and its key antecedents. In doing so, theoretically derived antecedents of university reputation were examined. The study reports the complex interplay among image, quality, value, satisfaction and attachment and their subsequent effect on reputation. A quantitative method was used to achieve research objectives. Data collected from students enrolled in major private university in Northern India were analysed to test the proposed model directly and indirectly using structural equation modelling (SEM). The findings confirmed most of the hypothesised relationships. Prominently, image construct was found to be significantly affecting students' quality perceptions along with satisfaction, attachment, value and importantly reputation. The study found evidence for the impact of students' attachment on university reputation. Findings also indicated the presence of several indirect relationships among the considered dimensions. Current research offers implications for universities that are met with the perpetual challenge of survival in the competitive higher education (HE) marketplace. Findings from the study not only help build theory on university reputation but make essential contribution towards guiding managers in developing effective strategies by building reputation via concentrating on the most crucial determinants. Although research in HE marketing is growing, effects of student attachment towards building reputation has not garnered attention, which is theoretically a vital construct. The paper presents new framework to realise university reputation with the help of integrated relationships among select dimensions in the setting of an emerging HE market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-07-06
      DOI: 10.1108/IJOEM-12-2020-1494
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • What drives microfinance institution lending behavior' Empirical
           evidence from Sub-Saharan Africa

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      Authors: Tilahun Aemiro Tehulu
      Abstract: While poverty alleviation is the first core goal of Sustainable Development Goals (SDGs), and microfinance institutions (MFIs) are considered important instruments for poverty alleviation in developing countries as they provide credit access to the poor, there is surprisingly little evidence of the drivers of the lending behavior of microfinance institutions. Hence, the purpose of this study is to identify the factors that influence the credit growth of MFIs in Sub-Saharan Africa (SSA). The study relies on unbalanced panel dataset of 130 MFIs operating across 31 countries in SSA during the period 2004–2014 constituting 546 useable observations. The study uses the Arellano-Bover/Blundell-Bond two-step generalized method of moments (GMM) Windmeijer bias-corrected standard errors to estimate the models. The results confirm that while capitalization, liquidity and size are positively associated with credit growth, profitability negatively impacts credit growth; whereas, other MFI specific factors namely portfolio quality, deposit growth and nondeposit borrowing growth have little direct effects on MFI credit growth. The results also show that MFI credit growth is pro-cyclical but negatively related to GDP per capita consistent with the theory of convergence. On the other hand, inflation and employment are not important covariates in the credit growth of MFIs. The findings suggest that if MFIs improve their liquidity and size by attracting more deposits and nondeposit borrowings, among others, they can increase credit access to the poor. Moreover, since the lending behavior of MFIs is not resilient to GDP shocks, different measures are needed to increase the financial stability of the microfinance industry. In this respect, since MFI capitalization is positively associated with credit growth and MFI credit growth is pro-cyclical, the findings provide useful insights to central banks/regulatory authorities and the Basel Committee as to the need for a counter-cyclical capital buffer requirement in the microfinance industry. The study is the first comprehensive study to examine the drivers of MFI lending behavior as an extension to lending behavior models from the banking industry.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-07-05
      DOI: 10.1108/IJOEM-08-2020-1002
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Country of brand origin positioning and financial performance: effects on
           internationalized companies from an emerging market

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      Authors: Rafael Barreiros Porto, Paula Borges Gomes Akitaya, Denise Santos Oliveira
      Abstract: The purpose of this study is to investigate whether the internationalization characteristics of companies from an emerging market (internationalized company stage and presence of a sales subsidiary abroad) moderate the influence of country of brand origin positioning over the companies' financial performance. The authors performed an ex-post-facto study of internationalized companies from Brazil spanning 16 years. Generalized estimating equations in panel data revealed the results with market share, return on assets (ROA) and Tobin's Q as dependent variables. The result revealed that country of brand origin positioning is worth doing for internationalized companies from an emerging market, especially for multinationals with sales activity in the destination country. It positively affects all three financial metrics. For exporters, it is effective in increasing market share and returns on assets. The research demonstrates the effectiveness of the image positioning of exporting and multinational companies that have internationalization initiatives and allocation of external sales activities. In emerging markets, country of brand origin positioning is a branding strategy used by companies seeking to internationalize. This research shows that the contexts of the characteristics of internationalization strategies change the results, and therefore the need to be considered for testing the effectiveness of country-of-brand-origin positioning.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-07-01
      DOI: 10.1108/IJOEM-11-2020-1423
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Investor confidence and life insurance demand: can economic condition
           limit life insurance business'

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      Authors: Danish Ahmed, Yuantao Xie, Khelfaoui Issam
      Abstract: Life insurance is bought with a prior belief that promise stipulated in policy will be honored when due. Discernibly, this belief is backed by the confidence that financial markets and economy will demonstrate satisfactory performance. However, individuals' confidence levels may get shaken through naïve reinforcement learning if they witness negative market or economic condition. Considering this the authors investigate the relationship between investor confidence and life insurance demand. The authors used bias corrected bootstrapped sample of OECD economies to examine the link between investor confidence and life insurance demand when two possible economic conditions were witnessed: 1) normal/economic expansion and 2) economic/debt impairment. The findings are robust to alternate estimation techniques and endogeneity. The authors found that lower investor confidence, sovereign debt impairment and negative market condition will have negative repercussion on life insurance demand. On the other hand, investor confidence-life insurance demand nexus is merely influenced by market and economic condition. This is a premier research explaining the nexus between investor confidence and life insurance demand in the context of life-cycle hypothesis, sovereign ratings channel and experience-confidence-belief framework. The finding will help economic policy-makers in developing pre-emptive measures to protect life insurance businesses from negative repercussions of lower confidence and negative market conditions.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-30
      DOI: 10.1108/IJOEM-06-2020-0650
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Investigating efficiency of frontier stock markets using multifractal
           detrended fluctuation analysis

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      Authors: Faheem Aslam, Paulo Ferreira, Wahbeeah Mohti
      Abstract: The investigation of the fractal nature of financial data has been growing in the literature. The purpose is to investigate the multifractal behavior of frontier markets using multifractal detrended fluctuation analysis (MFDFA). This study used daily closing prices of nine frontier stock markets up to 31-Aug-2020. A preliminary analysis reveals that these markets exhibit fat tails and clustering patterns. For a more robust analysis, a combination of Seasonal and Trend Decomposition using Loess (STL) and MFDFA has been employed. The former method is used to decompose daily stock returns, where later detected the long rang dependence in the series. The results confirm varying degree of multifractality in frontier stock markets, implying that they exhibit long-range dependence. Based on these multifractality levels, Serbian and Romanian stock markets are the ones exhibiting least long-range dependence, while Slovenian and Mauritius stock markets indicating highest dependence in their series. Furthermore, the markets of Kenya, Morocco, Romania and Serbia exhibit mean reversion (anti-persistent) behavior while the remaining frontier markets show persistent behaviors. The information given by the detection of the fractal measure of data can support for investment and policymaking decisions. Frontier markets are of great potential from the perspective of international diversification. However, most of the research focused on other emerging and developed markets, especially in the context of multifractal analysis. This study combines the STL method and a physics-based robust technique, MFDFA to detect the multifractal behavior of frontier stock markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-30
      DOI: 10.1108/IJOEM-11-2020-1348
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Workplace bullying and organizational citizenship behavior: the parallel
           mediating effects of job satisfaction and resilience

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      Authors: Aparna Mendiratta, Shalini Srivastava
      Abstract: Upholding congruency with conservation of resources (COR) theory, the study intends to analyze the impact of workplace bullying on organizational citizenship behavior (OCB) via job satisfaction and resilience as parallel mediators in the Indian hospitality sector. The study used a data of 240 respondents working in the hospitality sector in India. Direct and indirect effects were assessed through statistical techniques such as structural equation modeling and mediation analysis (Preacher and Hayes, 2004) for hypotheses testing using SPSS and AMOS tools. The findings of the study suggest the negative correlation between workplace bullying and OCB. This study demonstrates the role of job satisfaction and resilience as parallel mediators in combating the cascading ill effect of workplace bullying on OCB. The results help India's hospitality sector to understand the intensity and impact of workplace bullying on job satisfaction and OCB. This is the original and first study examining the role of workplace bullying on OCB via job satisfaction and resilience as parallel mediators in the non-Western context.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-29
      DOI: 10.1108/IJOEM-03-2021-0417
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Sources of finance for tech startups over its lifecycle: what determines
           their approach of sources and its success'

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      Authors: Shivalik Singh, Bala Subrahmanya Mungila Hillemane
      Abstract: The purpose of this paper is to ascertain the factors determining the choice of sources of finance for a tech startup over its lifecycle. This study adopts simple random sampling technique to choose 93 sample tech startups in Bangalore. Further, this study employs the primary data collection from the sampled startups under study through a semi-structured questionnaire and in-depth interviews with the founders/CEOs of these startups. Furthermore, it carries out binary logistic regression analysis to primarily examine the likelihood of a tech startup to approach and access a particular source of finance over its lifecycle. Our results indicate that a tech startup's choice for a financial source varies with its lifecycle stage and financial requirements. We find that while in its early stage, a tech startup's choice of a financial source is limited to business angels (BA), in the growth stage, it approaches the institutional sources, viz. Venture Capital (VC), Corporate Venture Capital (CVC), Banks and Private Equity (PE) firms alternatively. Out of the three major categories of financial requirements: Human Capital (HC), Research Capital (RC) and Social Capital (SC), the requirement for HC and SC is predominantly funded by VCs, while the acquisition of RC is facilitated by early stage investors (BAs) as well as growth stage investors (CVC and PEs). The research implication of the study lies in bringing out the need to understand both the nature and the quantum of financial requirements of tech startups would influence the sources of finance it would approach and obtain finance for its operations and growth. The major policy implication of the study refers to the need to promote the diverse sources of finance to meet the diverse needs of finance in different stages of a tech startup's lifecycle. Particularly in an emerging economy, where we do not see the emergence and growth of highly innovative tech startups, the need to promote adequate availability of RC is especially important. This study makes a key contribution to the entrepreneurial finance literature by empirically investigating the factors determining a tech startup's propensity to approach and access a particular source of finance over its lifecycle.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-29
      DOI: 10.1108/IJOEM-06-2020-0705
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • A financial restatement, media attention and stock idiosyncratic risk in
           the Chinese stock market

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      Authors: Haiyuan Yin, Meng Sun
      Abstract: This paper aims to enrich the scope of the influence of media reports on the stock risk, and it also provides a path to support the research on the relationship between media reports and idiosyncratic risks in the stock market. The authors select financial restatement samples of listed companies in China from Jan 2015 to Dec 2017 to explore the impact of the financial restatement on the idiosyncratic risk of stocks. Further, the financial restatement that has more media attention may play a more significant role in promoting the idiosyncratic risk. The authors found that the financial restatement of listed companies has a significant positive effect on the idiosyncratic risk of stocks. Specifically, the idiosyncratic risk changed five months before the restatement. After the restatement, the idiosyncratic risk increased by 83.47 in five days then decreased slowly, which lasted about one year. The restatement caused by sensitive issues and legal issues has a greater impact on the idiosyncratic risk. Both current restatement and delayed restatements will increase the idiosyncratic risk of stocks, but the impact of the latter is higher than the former. Possible deficiencies in the paper are that the number of restatements caused by major accounting errors is low. Therefore, no regular conclusions were drawn on the impact of the financial restatement caused by major accounting errors. The conclusions provide a basis for targeted supervisory measures on the restatements of listed companies. The increase in financial restatements is closely related to the lack of governance mechanisms in the stock market. For investors, although the mystery of idiosyncratic volatility exists significantly in the market, the company's valuation level will affect the relationship between the idiosyncratic risk and expected return. Investors should pay attention to the intrinsic value of the company and should not blindly pursue stocks with a low idiosyncratic risk. These conclusions may enrich the scope of the influence of media reports on the stock risk and also provide a path to support the research on the relationship between media reports and idiosyncratic risks in the capital market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-29
      DOI: 10.1108/IJOEM-08-2020-0924
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Interrelated effects of technological and non-technological innovation on
           firm performance in EM – A mediation analysis of Peruvian manufacturing
           firms

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      Authors: Javier Fernando Del Carpio Gallegos, Francesc Miralles
      Abstract: Firm innovative performance in emerging markets must take into account the peculiarities of their competitive environment. Research on the effect of innovation on firm performance focuses mainly on high-tech firms in developed countries. This study proposes a model that empirically examines how technological and non-technological innovation influence Peruvian manufacturing firms' performance. Using the resource-based view, a model is proposed that allows the mediation effects of technological innovation and non-technological innovation on firm performance among low and medium-low technological intensity manufacturing firms to be analyzed. The study uses structural equation modeling and mediation analysis with data from 503 Peruvian firms researched in the 2012 National Survey of Innovation. The model's validation shows that the integrated perspective is relevant for emerging markets like Peru. Moreover, the results confirm that technological and non-technological innovation and their interrelationship are important for understanding the performance dimensions of Peruvian manufacturing firms. This paper contributes to the literature on innovation in Latin American economies, proposing and validating a model that combines the mediation effects of technological and non-technological innovation to explain the relevant dimensions of firm performance in emerging markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-28
      DOI: 10.1108/IJOEM-11-2019-0891
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Exploring panic buying behavior during the COVID-19 pandemic: a developing
           country perspective

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      Authors: Gurmeet Singh, Asheefa Shaheen Aiyub, Tuma Greig, Samantha Naidu, Aarti Sewak, Shavneet Sharma
      Abstract: This paper aims to identify factors that influence customers' panic buying behavior during the COVID-19 pandemic. A self-administered questionnaire was distributed to 357 participants in Fiji, and structural equation modeling to analyze the collected data. Results indicate that expected personal outcomes is positively associated with customers' attitudes while expected community-related outcomes negatively impact customers' attitudes. Factors such as attitude, subjective norms, scarcity, time pressure and perceived competition were found to positively influence customers' panic buying intention. Furthermore, scarcity and time pressure were confirmed to positively influence perceived competitiveness while perceived social detection risk negatively influences customer's panic buying intention. The findings highlight the need for better measures to ensure that every customer has access to goods and services and is not deprived of such necessities in times of a crisis. These results will assist store managers and policymakers in introducing better management, social policies and resource utilization mechanisms to mitigate panic buying during the pandemic. This study's findings contribute to the literature on customer's panic buying behavior during a global pandemic. Research in this area remain scarce, inconsistent and inconclusive. Novel insights are generated as this study is the first to combine the theory of planned behavior, privacy calculus theory and protection motivation theory. Applying these theories allows new relationships to be tested to better understand customer behavior during a global pandemic. With most studies on customer behavior during crises and disasters in developed countries, this study generates new insights by exploring customer behavior in a developing country.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-23
      DOI: 10.1108/IJOEM-03-2021-0308
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Websites' hue-context congruence as a vector of trust and behavioral
           intentions

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      Authors: Lilia Khrouf, Azza Frikha
      Abstract: This paper aims to determine the effect of the congruence between a website's background color and its context (product category) on online trust and resulting behavioral intentions in emerging markets. An online experiment, conducted on 240 web-surfers, compared two versions of a website (high vs low color-context congruence) in terms of online trust and resulting behavioral intentions. The authors also studied the moderating role of the online shopping experience on the color-context congruence impact on online trust. Results revealed that a website's color-context congruence enhances online trust. The authors have also demonstrated that online trust plays a mediating role in the relationship between color-context congruence and behavioral intentions. Moreover, they found out that the influence of the color-context congruence on online trust is enhanced when the web-surfer is highly experienced in online shopping. This research contributes to fill in the theoretical gaps and to better understand the influence of color-context congruence on online trust and behavioral intentions in emerging markets. Indeed, past studies had focused on the color impact on online trust without taking into consideration congruence with the website context. However, this study is limited to a single category of products (tourist products) and only two colors (blue and red) were manipulated in the experiment. This study highlights the importance of selecting a background's color that matches with the sold product category to reassure web-surfers so that they trust the commercial website and express some favorable intentions like buying. Prior studies had focused on the website's color effect on online trust neglecting color-context congruence. Our study helps to highlight the importance of selecting background colors matching the product category.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-23
      DOI: 10.1108/IJOEM-05-2020-0474
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The impact of economic policy uncertainty, news framing and information
           overload on panic buying behavior in the time of COVID-19: a conceptual
           exploration

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      Authors: Abdulqadir Rahomee Ahmed Aljanabi
      Abstract: This conceptual paper aims to provide a further understanding of the impact of economic policy uncertainty (EPU), news framing and information overload on panic buying behavior during the COVID-19 pandemic. Drawing on earlier research and news releases about the COVID-19 outbreak, this paper advances testable propositions based on the protection motivation theory and information processing theory. This paper infers that the major shift in consumer decision-making towards panic buying is a result of high EPU. International reports have contributed to deepening this uncertainty, and the consequences of this EPU are expected to affect the economic recovery through 2022. Furthermore, the adoption of particular frames of the pandemic has played a key role in the dissemination of misinformation and fake news during the public health crisis and affected purchasing decisions. The study also infers that the perceived threat among consumers is driven by information overload as a source of mistrust towards economic and health information sources. This paper addresses two theoretical gaps associated with consumer buying behaviour. First, it highlights the impact of EPU, as a macroeconomic indicator, on consumer buying behaviour. Second, this paper is an attempt to integrate theories from different disciplines to foster an adequate understanding of buying behavior during the COVID-19 outbreak period.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-21
      DOI: 10.1108/IJOEM-10-2020-1181
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Blockchain technology, macroeconomic uncertainty and investment efficiency

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      Authors: Wanyi Chen, Kang He, Lanfang Wang
      Abstract: In addition to leading a new tide of global financial technology, blockchain delivers advantages in terms of risk control compared to traditional financial systems. By exploring the relationship between blockchain technology and macroeconomic uncertainty, this study aims to identify the hedge risk attribute of blockchain technology. From a data set comprising 6,323 Chinese firms with A-shares listed on the Shenzhen and Shanghai Stock Exchanges in 2015–2018, the authors obtain the use of blockchain technology by listed companies on the basis of annual reports, news reports, search engines and prospectuses. These documents are then subjected to text analyses based on computer technology. Cross-sectional and propensity score matching analyses are used to ensure robustness. The empirical results show that with an increase in macroeconomic uncertainty, blockchain technology can potentially enable companies to reduce their systemic risks and enhance their investment efficiency. This study expands the literature on the application of blockchain technology, offers references for enterprises to address future risks based on specific macroeconomically uncertain environments and provides guidelines for governments to maintain financial market stability.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-21
      DOI: 10.1108/IJOEM-10-2020-1250
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The impact of differences in internationalization processes on innovation
           by emerging economy firms

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      Authors: Shantala Samant, Pooja Thakur-Wernz, Donald E. Hatfield
      Abstract: The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related choices on the nature of technological innovations developed by these firms. Specifically, the authors compare two principal perspectives on internationalization – the incremental internationalization process (slow, gradually increasing commitments using greenfield investments to similar host countries) and the springboard perspective (aggressive, rapidly increasing commitments using mergers and acquisitions to advanced host countries). Building on key differences between the incremental internationalization and springboard perspectives, the authors argue that differences in the speed and mode of entry, as well as the interaction between the mode of entry and location of internationalization, will lead to differences in the types of technologies (mature versus novel) developed by emerging economy firms. The authors examine the hypotheses using panel data from 1997 to 2013 on emerging economy multinationals (EMNEs) from the Indian bio-pharmaceutical industry. The findings suggest that firms internationalizing at higher speeds and using cross-border M&As tend to have innovations in mature technologies. The interesting findings can be explained by the challenges faced by emerging economy firms in experiential learning and the assimilation of external knowledge. In addition, the authors find that internationalization to technologically advanced countries weakens the relationship between cross-border M&As and innovation in mature technologies, suggesting that direct learning from technologically advanced environments may help alleviate the assimilation challenges of cross-border M&As. The authors advance literature on EMNE internationalization by comparing the impact of their choice of internationalization approaches (incremental internationalization or springboard approach) on their innovation performance. The authors contribute to literature on EMNEs that has focused on the determinants of internationalization by identifying the learning implications of internationalization. The authors contribute to the nascent stream of literature on the level of innovation and catching up by EMNEs by performing a fine-grained analysis of the nature of technology innovation.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-21
      DOI: 10.1108/IJOEM-11-2020-1331
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Bank regulation and credit crunch: evidence from MENA region commercial
           banks

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      Authors: Chawki EL-Moussawi, Mohamad Kassem, Josse Roussel
      Abstract: This paper focuses on the relationship between the regulatory capital requirements and the supply of credit for commercial banks that are operating in the MENA region from 1999 till 2017. The application of the Fixed Effects Model on a panel of commercial banks in the MENA region has shown a negative relationship between supply of credit and both the capital requirements and solvency ratios. The results showed that the idiosyncratic, the macroeconomic and the institutional variables affect the supply of credit behavior of banks. The robustness tests using the Two-Stage Least Square method (2SLS) also led to a negative correlation between the growth of credit and capital requirements. Specific macroeconomic and institutional variables have revealed the expected sign and are significant regardless of the estimated specifications. This work can be subjected to further future extensions. The explanatory power of our model can be improved by incorporating variables that reflect the corporate governance and structure of banking sector. Similarly, we can also include a variable that takes into account the increasing competition that could affect the stability of the banking sector and therefore the prudential banking regulation. Previous studies that investigated only the relationship between capital level and risk-taking behavior of banks in the MENA region did not take into account neither the economic and institutional environment nor the impact of these regulations on credit (loans) supply.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-18
      DOI: 10.1108/IJOEM-12-2019-1090
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Intrinsic factors affecting online impulsive shopping during the COVID-19
           in emerging markets

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      Authors: Rambabu Lavuri
      Abstract: In an emerging market, understanding shoppers' behavior in an online market is essential to developing online retail strategies. This research study examines the effects of intrinsic factors, namely, perceived utilitarian, hedonic value, materialism, fashion interest and enjoyment, on impulsive online shopping with mediating role of trust and online shopping attitude in the Indian emerging market. Data are collected from 443 Indian respondents, using purposive and snowball sampling. The data were analyzed using the IBM Statistical Product and Service Solutions (SPSS) and Analysis of Moment Structures (AMOS) package using structural equation modeling. The results showed that perceived utilitarian, hedonic value, materialism and enjoyment factors significantly impacted perceived trust and online shopping attitude, but fashion interest had no effect. Mediating factors positively impacted impulsive online shopping and showed a significant association between intrinsic factors and impulsive online shopping. The geographical area of study was limited to only India. Consequently, the findings and conclusions of the study had their limits. The research used the information continuum with a purposive and snowball approach that does not necessarily generalize the findings of the analysis. This work looked at factors stimulating the impulsive online shopping pattern of Indian shoppers in an emerging market. This research would help e-retailers develop new strategies and plans to increase sales volume and create strong relationships with online customers by providing trustworthiness and security in buying practices. This study helps to understand the consumer impulsive buying during coronavirus disease 2019 (COVID-19), and it helps e-retailers to adopt a new online store to draw the attention of the consumers and enhance their online sales. In this COVID-19 situation, this study explores the inherent factors influencing impulsive online shopping in the emerging Indian market. As a result, it contributes to visual identity literature by expanding the field of impulsive online shopping behavior.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-16
      DOI: 10.1108/IJOEM-12-2020-1530
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • “Sand” or “grease” effect' The impact of corruption on the
           investment volume of public−private partnerships

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      Authors: Jorge Fleta-Asín, Fernando Muñoz
      Abstract: Some scholars argue that corruption hinders economies and investment because it generates extra costs, while others suggest that it can act as a stimulus. Their mixed empirical findings have prompted the analysis of whether investors' attitude towards corruption changes depending on its degree of prevalence. The authors examined 4,518 public–private partnerships (PPPs) located in 46 developing countries for the period 1997–2017. The data were collected from the World Bank PPP database. The authors investigated the relationship between the amount of investment in PPP projects and the level of corruption using regression with multilevel mixed effects. Corruption and the amount of investment in PPP projects are inversely related at the low and high end of the spectrum of corruption, but the relationship is positive towards the middle. Further analysis revealed that this was spurred by high investment PPP projects in less developed countries. The findings allow the authors to reconcile the opposing positions in the literature through a “sand–grease–sand the wheels” effect between the volume of investment and corruption, which can be configured as a reverse S-shape consisting of three stages.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-15
      DOI: 10.1108/IJOEM-05-2020-0514
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Multicultural leaders from emerging markets: transforming international
           acquisitions and corporate social responsibility

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      Authors: Kathleen Park, Frederick Wallace
      Abstract: The purpose of this paper is to explore the influence and advantages of leadership multiculturalism on global strategy development through cross-border mergers and acquisitions (CBA) and corporate social responsibility (CSR) from emerging market multinational companies (EMNCs) expanding into emerged markets. The key contribution of asymmetric multiculturalism is a novel finding based on inductive research. We fill a gap by further linking business leader characteristics and corporate strategic actions and examining how multicultural business leaders from emerging markets can be highly effective at CBA and CSR. The paper draws on in-depth interviews, observations and documentary evidence analyzed with iterative coding, construct definition and thematic development to understand how leadership multiculturalism affects CBA and CSR in an EMNC over time. The new construct of leadership asymmetric multiculturalism describes strategic advantages accruing to leaders from developing markets who are culturally fluent in both emerging and emerged market milieus. The construct contributes to emergent research on the rise of multicultural leaders and their strategic advantages and delineates a pathway toward identifying advantages of emerging over emerged market business leaders. The research addresses specific CBA and CSR strategies within one emerging market region and EMNC. Future research should further articulate and validate the key construct of asymmetric multiculturalism, further examine its sources, draw more explicit comparisons with data from emerged market leaders, and explore the applicability of these findings to strategic actions and advantages in both emerging and emerged markets. Emerging market corporate leaders should identify and develop pertinent aspects of their own asymmetric multiculturalism in enacting CBA and CSR strategy with respect to EMNCs and firms from developed markets. Emerged market leaders should become more aware of and cultivate their own multiculturalism. Asymmetric multiculturalism can be accompanied by heightened awareness of global citizenship — including codes of ethics, environmental challenges, community outreach and fair labor practices — which, in tandem with CBA, can strengthen emerging market firms’ performance and reinforce their global stature and reputation. Asymmetric multiculturalism is a new explanatory construct in the sociological, economic and management disciplines. Emerging markets corporate leaders utilize their multicultural competence to accelerate global CBA and CSR activity and advance strategic opportunities for their firms. The identification of advantages deriving from emerging market leadership capabilities is an unusual finding given the more typical emphasis on the privileges of emerged market leaders and firms.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-14
      DOI: 10.1108/IJOEM-01-2019-0074
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Oil price volatility and firm profitability: an empirical analysis of
           Shariah-compliant and non-Shariah-compliant firms

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      Authors: Abdullah Bugshan, Walid Bakry, Yongqing Li
      Abstract: This study examines the impact of oil price volatility on firm profitability. As Shariah-compliant firms operate under restrictions, the study also explores whether oil price volatility affects Shariah-compliant firms differently from their non-Shariah-compliant counterparts. The study sample includes all non-financial firms listed on Gulf Cooperation Council stock exchanges from 2005 to 2019. In evaluating the oil price volatility–profitability relationship, static (panel fixed effects) and dynamic (system generalised method of moments) models were used. Oil price volatility significantly depresses firm profitability. In addition, Shariah-compliant firms are more significantly affected by oil price volatility than their non-Shariah-compliant peers. The results suggest that high oil price volatility exposes Shariah-compliant firms to higher bankruptcy risk than non-Shariah-compliant firms and that positive and negative oil price shocks have asymmetric effects on firm performance. The findings of the paper call for more economic diversification by supporting non-oil sectors in the region and raise the need for more development of Islam-compliant products that compete with traditional instruments to help Shariah-compliant firms cope with uncertainty. Moreover, managers need to prepare quick alert and response procedures to reduce the negative impacts of oil price volatility on profitability. To the best of the authors’ knowledge, this study is the first to explore the relationship between oil price volatility and profitability of non-financial firms. Further, the study extends prior Islamic corporate finance literature by enhancing the understanding of how Islamic corporate decisions affect firm performance during instability.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-10
      DOI: 10.1108/IJOEM-10-2020-1288
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • HR practices for managing aging employees in organizations: the case of
           Thailand

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      Authors: Chaturong Napathorn
      Abstract: This paper examines the human resource (HR) strategies and practices that are considered to be particularly beneficial for aging employees in organizations in Thailand, which is an underresearched developing economy, from an employee perspective and the implications of national institutions and cultures for the adoption and implementation of those HR strategies and practices across organizations. The results of the study, based on a cross-case analysis of seven organizations across industries, are primarily drawn from structured interviews and focus groups with aging employees, field visits and a review of archival documents and web-based resources, including newspaper reports and magazines. This paper proposes that HR strategies that are appropriate for managing aging employees in organizations in Thailand’s developing economy can be classified into four bundles: growth, maintenance, recovery and regulation. Each bundle of HR strategies consists of several HR practices that are appropriate for managing aging employees in organizations. In particular, from the perspective of aging employees, these HR practices help aging employees upgrade their skills, prepare them to have a sufficient amount of financial savings after retirement, ensure that they are safe, secure and healthy, help them feel that their tacit knowledge and experience are still valuable, and help them perform jobs that are appropriate for their physical health conditions. Additionally, the adoption and implementation of the proposed HR strategies and practices tend to be influenced by national institutions in terms of deficiencies in the national skill formation system, healthcare institutions, regulatory institutions and welfare state regime and by the national culture in terms of reciprocity and respect for elderly people (i.e. aging employees). However, there are five important HR practices that are specifically appropriate for managing aging employees in Thailand and other developing economies where the level of household debt and/or personal debt is high, where the increasing number of aging employees leads to high demand for medical services when the medical services offered by private hospitals are expensive, and where tacit knowledge and experience are important for creating and maintaining firms’ competitive advantage: (1) the facilitation of financial planning, (2) safety and health training, (3) annual health check-ups, (4) the appointment of aging employees as advisors/mentors and (5) knowledge transfer/job enrichment. One of the limitations of this research is its methodology. Because this research is based on case studies of seven firms located in Thailand, the findings may not be generalizable to all other firms across countries. Rather, the aim of this paper is to further the discussion regarding HR strategies and practices for managing aging employees in organizations. Another limitation of this research is that it does not include firms located in several other industries, including the agricultural and fishery industry and the financial services industry. Future research may explore HR strategies and practices for managing aging employees in organizations located in these industries. Moreover, quantitative studies using large samples of aging employees who work in firms across industries might also be useful in deepening the understanding of HR strategies and practices for managing aging/retired employees in organizations. This paper provides practical implications for top managers and/or HR managers of firms in Thailand and other developing economies where the level of household debt and/or personal debt is high, where the increasing number of aging employees leads to high demand for medical services when the medical services offered by private hospitals are expensive, and where tacit knowledge and experience are important for creating and maintaining firms’ competitive advantage. In particular, the aging employees in this study identified the HR practices that they perceive as being appropriate for aging employees and that were already available in firms or that they expect their firms to have but are currently missing. In this regard, HR managers should take note of these good and appropriate HR practices to ensure that they become part of official, structured HR strategies and practices. This would ultimately help line managers and aging employees think more positively about the future of aging employees within the company and help retain invaluable aging employees over time. This paper provides social/policy implications for the government and/or relevant public agencies of Thailand and several other developing economies where the majority of aging people do not have sufficient savings to support themselves after retirement, especially when these countries are becoming aging societies, where the increasing demand for medical services cannot be adequately addressed by existing public hospitals while private hospitals’ medical prices are quite expensive, and where intellectual property right (IPR) protection laws are weak. That said, such governments should encourage firms located in their countries to implement these HR strategies and practices for developing, maintaining, deploying and supporting aging employees. This paper aims to contribute to the literature on human resource management (HRM), specifically on HR practices for aging employees, in the following ways. First, this study is different from the previous studies in that it examines HR practices for managing aging employees from an employee perspective, while most of the previous studies in this area have focused on the management of such employees from an employer perspective. In this case, it is possible that formal company policies may be different from actual HR practices as perceived by aging employees (Khilji and Wang, 2006). Second, this paper explores the implications of national institutions and cultures of...
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-09
      DOI: 10.1108/IJOEM-01-2020-0043
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Financial and social efficiency analysis of Islamic microfinance
           institutions

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      Authors: Marwa Fersi, Mouna Bougelbène
      Abstract: The purpose of this paper was to investigate the impact of credit risk-taking on financial and social efficiency and examine the relationship between credit risk, capital structure and efficiency in the context of Islamic microfinance institutions (MFIs) compared to their conventional counterparts. The stochastic frontier approach was used to estimate the financial and social efficiency scores, in a first step. In a second step, the impact of risk-taking on efficiency was evaluated. The authors also took into account the moderating role of capital structure in this effect using the fixed and random effects generalized least squares (GLS) with a first-order autoregressive disturbance. The used dataset covers 326 conventional MFIs and 57 Islamic MFIs in six different regions of the world over the period of 2005–2015. The overall average efficiency scores are less than 50%, where CMFIs could have produced their outputs using 48% of their actual inputs. IMFIs record the lowest financial (cost) efficiency that is equal to 28% on average. The estimation results also reveal a negative impact of nonperforming loan on financial and social efficiency. Finally, the moderating effect of leverage funding on the relationship between credit risk-taking and financial efficiency was confirmed in CMFIs. However, leverage seems to moderate the effect of risk-taking behavior on social efficiency for IMFIs. This paper makes an initial attempt to evaluate the effect of risk-taking decision and its implication on efficiency and MFIs' sustainability. Besides, it takes into consideration the role played by the mode of governance through the ownership structure. In addition, this research study sheds light on the importance of the financial support for the development and sustainability of these institutions, which in return, contributes to a sustainable economic development.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-09
      DOI: 10.1108/IJOEM-02-2020-0197
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Examining risks and strategies for the spice processing supply chain in
           the context of an emerging economy

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      Authors: Udukumburage Shalinda Kusal De Silva, Ananna Paul, Kazi Wahadul Hasan, Sanjoy Kumar Paul, Syed Mithun Ali, Ripon Kumar Chakrabortty
      Abstract: Managing supply chain risk is a crucial element in ensuring the long-term sustainability of any organization or industry. As such, identification of risks and deploying their mitigation strategies should be the focal point to sustain in the long run. The risks that are faced by food processing supply chains are gaining prominence, given more consumers requiring higher quality products while ensuring traceability. In essence, this research focuses on the supply chain risks and mitigation strategies in the spice industry of an emerging economy, Sri Lanka. This paper integrates two popular multi-criteria decision-making (MCDM) techniques, such as the analytical hierarchy process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to assess the supply chain risks and to derive their mitigation strategies for the spice industry. Findings show that “inability to meet quality requirements” has been established as the most significant risk in the Sri Lankan spice industry. On the other hand, “vertical integration” (backward integration) has been discovered as the key mitigation strategy to ameliorate the effects of supply chain risks in this sector. This study is exploratory, and more empirical data and statistical analyses are needed to further validate the outcomes of the study. Despite being one of the largest trade exporters in Sri Lanka, the spice industry gets scant attention to the identification and mitigation of the risks. The authors explored the supply chain risks in the spice industry and then prioritized the suitable mitigation strategies using an integrated AHP-TOPSIS method.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-09
      DOI: 10.1108/IJOEM-07-2020-0776
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Intraday analysis of regulation change in microstructure: evidence from an
           emerging market

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      Authors: Eyup Kadioglu
      Abstract: This study investigates the impact of simultaneously replacing both midday single-price call auction and lunch break with multi-price continuous trading on intraday volatility–volume patterns as well as the intraday volatility–volume nexus. The analysis utilises 150 m tick-by-tick transaction data related to 333 stocks traded on Borsa Istanbul Equity Market covering a period of 2 months prior to and following the change. In addition to graphic comparisons, the study uses difference in mean tests, panel-fixed generalized least squares (GLS), panel-random GLS and random-effects linear models with AR(1) disturbance regression estimations. The results show that intraday volatility and trading volume form an inverse J-shape and are positively correlated. It is observed that the implementation of the regulation change decreased intraday volatility and increased trading volume. Additionally, the results indicate a negative volatility–liquidity and a positive volume–liquidity relationship, supporting the mixture of distribution hypothesis. Enhanced market efficiency provides greater opportunity for investment and risk management. Investors can benefit from the findings on the intraday volatility–volume nexus, which is an indicator of informed trading, and regulatory authorities can use volume to oversight volatility. This very rare regulation change of the simultaneous replacement of the lunch break and midday call auction with continuous trading is investigated in the context of intraday volume and volatility. This study also expands upon some important findings on the volume–volatility nexus for the Turkish Stock Market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-09
      DOI: 10.1108/IJOEM-11-2020-1310
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Founder CEOs, business groups and firm value: evidence from an emerging
           market

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      Authors: Woo Sung Kim, Halil Kiymaz
      Abstract: The impact of founder CEOs on firm value continues to be debated in the finance literature. While earlier studies suggest that founding family ownership and founding CEO structure create less value than public ownership, later studies provide contradicting evidence. This study examines how founder CEOs affect firm value in the business group context while controlling for firm-specific variables and various CEO characteristics. The authors use a sample of publicly listed Indian firms from 2010 to 2015 with 997 firm-year data observations. While 306 of these are in business groups, the remaining 691 are in a nonbusiness group. The authors also divide the sample into various sector subgroups, including materials (170), industrials (198), consumer (422) and others (198). They use two different models, including the fixed effect model (FEM) and pooled generalized method of moments (GMM) model to run regressions. The authors find that firms with founder CEOs have lower firm value than those with nonfounder CEOs. These results show the importance of the role of founder CEOs in the Indian business groups. The authors further find a positive relationship between founder CEO and business group interaction variable, showing that an increase in founder CEO (or business group) increases the significance effect of business group (founder CEO) on firm performance. After separating the sample business and nonbusiness groups, the relationship between founder CEOs and firm value in both groups remains negative. Using various firm-specific control variables, the authors find that highly leveraged and smaller firms experience lower Tobin's Q. In contrast, firms with more investment in research and development perform better. Among CEO characteristics, the authors find that firms with highly educated CEOs do not perform well, while firms with older CEOs do better. Finally, they find that CEO tenure and duality are associated with lower firm performance. This study adds value by providing evidence on the founder CEOs and firm performance in business groups from a fast-developing emerging market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-08
      DOI: 10.1108/IJOEM-05-2019-0351
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Blockholding and agency cost: evidence from Nigeria

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      Authors: Ibe Ibekwe
      Abstract: The study examines how blockholding, blockholding nationality and multiple blockholder structures (MBS) are related to agency cost in Nigeria. Data sourced from the annual reports of 84 non-financial services firms listed on the Nigerian Stock Exchange (NSE) from January 1, 2008, to December 31, 2015, were analyzed using the hybrid model in Stata 15. Blockholding showed a significant negative relationship with the expense ratio (ER) measure of agency cost at the between-firm level but not significantly related to asset utilization ratio (AUR). This result was driven more by foreign blockholding and concentration of control, which were negatively and significantly related to the ER. Concentration of control is negatively related to the AUR. Domestic blockholding and the number of blockholders were not significantly related to agency cost. Foreign-blockholder-firms had a significantly greater concentration of control (lesser contest for control) than domestic-blockholder-firms. The findings suggest that foreign blockholding would be more effective in controlling agency costs in Nigeria. While the concentration of control (lesser contest for control) appears to be an efficient governance mechanism for reducing agency costs associated with expenses in Nigeria, it seems to exacerbate agency costs associated with asset utilization. Previous researchers have not studied how foreign and domestic blockholding are related to agency cost. They also have not studied how MBS and the contest for control are related to agency cost and explain differences in the foreign/domestic blockholding-agency cost relationships in the Nigerian context.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-08
      DOI: 10.1108/IJOEM-08-2018-0445
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Corporate governance and financial performance of banks in Ghana: the
           moderating role of ownership structure

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      Authors: Christopher Boachie
      Abstract: The purpose of this paper is to investigate the moderating effect of ownership on the links between corporate governance and financial performance in the context of Ghanaian banks. The current study used a sample of 23 banks and the multiple regression method to analyze a panel dataset of 414 from banks over an 18-year period. The findings revealed that audit independence, chief executive officer (CEO) duality, non-executive directors and banks size have a positive impact on performance. The findings also revealed that foreign ownership has an interacting effect between corporate governance and profitability. The practical implications of the current study demonstrated that good corporate governance creates value and must be invigorated for the interest of all stakeholders. Foreign ownership has an interacting effect between corporate governance and performance. Policymakers should formulate policies for attracting foreign investors. Interestingly, this study is the first of its kind that exclusively chose ownership structure to interact between corporate governance and bank performance in Ghanaian perspective. Such new insights on this relationship provide useful information to the government, academics, policymakers and other stakeholders. The growing economies of African countries, and the inadequate governance–performance literature in African context, have created a demand to appreciate the governance parameters in these countries and its influence on firm's performance.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-07
      DOI: 10.1108/IJOEM-09-2020-1146
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Global commodity prices and inflation expectations

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      Authors: Adviti Devaguptapu, Pradyumna Dash
      Abstract: In this paper, we study the effect of global energy and food inflation on household inflation expectations during the period 1988M01–2020M03 for a set of European economies. We use multifractal de-trended cross-correlation analysis to estimate the non-linear and time-varying cross-correlation. We provide additional robustness tests using the Autoregressive-Distributed Lag method. We find that household inflation expectations, global energy inflation and global food inflation are all multifractal. We also find that the household inflation expectations, global energy inflation and global food inflation are positively correlated (i.e., they are persistent). However, household inflation expectations respond more when the volatility of the global energy inflation is lower than when the volatility is higher. The correlation between household inflation expectations and global food inflation does not depend on the level of volatility. First, paying attention to the global commodity inflation might help anchor inflation expectations better. It is so because Central Bank's efficacy in achieving price stability may be weakened if there is a relationship between commodity inflation and inflation expectation. This task would become even more difficult in the average inflation targeting regime than inflation targeting regime if actual inflation is persistently different from the target inflation. Second, our results also emphasize the importance of effective strategy for communicating to households about actual inflation, inflation target and keep them updated about how monetary policy functions. We contribute to the literature by estimating the cross-correlation between household inflation expectations with the global commodity inflation, conditional to the volatility of the commodity inflation under consideration.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-07
      DOI: 10.1108/IJOEM-11-2020-1382
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Attenuating international financial shocks: the role of capital controls

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      Authors: Chokri Zehri
      Abstract: By reinforcing monetary policy independence, reducing international financing pressures and avoiding high-risk takings, capital controls strengthen the stability of the financial system and then reduce the volatility of capital inflows. The objective of this study was to conduct an empirical examination of this hypothesis. This topic has received strong support in the theoretical literature; however, empirical work has been quite limited, with few empirical studies that provide direct empirical support to this hypothesis. This study analyzed quarterly data of 32 emerging economies over the period between 2000 and 2015 and proposes two methods to identify capital control actions. Using panel analysis, Autoregressive Distributed Lag and local projections approaches. This study found that tighter capital controls may diminish monetary and exchange rate shocks and reduce capital inflows volatility. Furthermore, capital controls respond counter-cyclically to monetary shocks. Under capital controls, countries with floating exchange rate regimes have more potential to buffer monetary shocks. We also found that capital controls on inflows are more effective for reducing the volatility of capital inflows compared to capital controls on outflows. This study contributes to the question of the effectiveness of capital controls in attenuating the effects of international shocks and reducing the volatility of capital flows. Previous studies have mostly focused on the role of macroprudential regulation; however, there is a lack of systematic effects of capital controls on monetary and exchange rate policies. To our knowledge, this is the first preliminary study to suggest that capital controls may buffer monetary and exchange rate shocks and reduce the volatility of capital inflows. This study investigates the novel notion that capital controls allow for a notable counter-cyclical response of monetary and exchange rate policies to international financial shocks.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-03
      DOI: 10.1108/IJOEM-12-2020-1540
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Hedging stock market prices with WTI, Gold, VIX and cryptocurrencies: a
           comparison between DCC, ADCC and GO-GARCH models

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      Authors: Mohamed Fakhfekh, Ahmed Jeribi, Ahmed Ghorbel, Nejib Hachicha
      Abstract: In a first place, the present paper is designed to examine the dynamic correlations persistent between five cryptocurrencies, WTI, Gold, VIX and four stock markets (SP500, FTSE, NIKKEI and MSCIEM). In a second place, it investigates the relevant optimal hedging strategy. Empirically, the authors examine how WTI, Gold, VIX and five cryptocurrencies can be applicable to hedge the four stock markets. Three variants of multivariate GARCH models (DCC, ADCC and GO-GARCH) are implemented to estimate dynamic optimal hedge ratios. The reached findings prove that both of the Bitcoin and Gold turn out to display remarkable hedging commodity features, while the other assets appear to demonstrate a rather noticeable disposition to act as diversifiers. Moreover, the results show that the VIX turns out to stand as the most effectively appropriate instrument, fit for hedging the stock market indices various related refits. Furthermore, the results prove that the hedging strategy instrument was indifferent for FTSE and NIKKEI stock while for the American and emerging markets, the hedging strategy was reversed from the pre-cryptocurrency crash to the during cryptocurrency crash period. The first paper's empirical contribution lies in analyzing emerging cross-hedge ratios with financial assets and compare hedging effectiveness within the period of crash and the period before Bitcoin crash as well as the sensitivity of results to refits choose to compare between short term hedging strategy and long-term one.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-01
      DOI: 10.1108/IJOEM-03-2020-0264
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Stock–bond co-movement in ASEAN-5: the role of financial integration
           and financial development

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      Authors: Airil Khalid, Zamri Ahmad
      Abstract: This study aims to observe the extent of asset diversification benefits in the Association of Southeast Asian Nations (ASEAN)-5 market by examining the effect of financial integration (FI) and financial development (FD) on domestic stock–bond co-movements, SBcorr. The dynamic conditional correlation - multivariate generalized autoregressive conditional heteroskedasticity (DCC-MGARCH) technique is adopted to construct FI and stock−bond co-movement variables. Then, the study uses static panel data analysis to examine the effect of FI on stock−bond co-movements. FI does not provide asset diversification benefits due to high country risks in ASEAN-5. However, when FI is moderated by FD, FI × FD, the study shows that FI × FD provides higher asset diversification benefits in ASEAN-5. This study shows the importance of incorporating the level of FD when assessing the effect of FI on stock–bond co-movements in ASEAN-5. In the presence of FI, a well-diversified investor should always consider the state of FD, which will show a better representation of asset diversification strategy in the emerging markets. Additionally, policymakers of ASEAN-5 countries should prioritise enhancing their financial system to attract more investment into the countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-01
      DOI: 10.1108/IJOEM-11-2020-1312
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Is leverage a substitute or outcome for governance' Evidence from
           financial crises

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      Authors: Hasan Tekin, Ali Yavuz Polat
      Abstract: The authors investigate the impact of governance on the leverage of East Asian firms in the financial crisis context, in order to understand the puzzle whether debt acts as a substitute for governance or an outcome of the governance mechanism. The authors use 86,030 firm-years and the country-level governance data from eight East Asian countries over the period 1996–2017. The authors employ the fixed effects (FE) model, in the main analysis and the weighted least squares model, as a robustness check in order to compare the two competing hypotheses of agency theory, substitute and outcome models. The authors’ results show that debt acts as a substitute for governance before the GFC, but during and after the GFC the picture changes. Namely, debt acts as an outcome of the governance mechanism during the GFC and its aftermath. Since during financial downturns both agency costs increase, and information asymmetry widens, firms in poor-governed countries may be reluctant to increase their leverage in order not to face financial distress and additional restrictions. Thus, the results imply that the use of debt as a tool to mitigate agency conflicts and a substitute for governance strongly depends on the environment that the firms operate and the general macroeconomic conditions, such as facing a financial crisis or not. This study provides an interesting case of the firms' capacity to raise money during a crisis and that governance plays an important role in borrowing activities of firms. This will undoubtedly help motivating owners and policymakers for improving governance. The authors’ findings may be useful for policymakers to develop policies considering the adverse effects caused by exogenous shocks. This is crucial because the severity of GFC as a shock seems to change the macro and institutional environment that firms operate. While the authors properly address the research hypotheses using country governance data, future research may employ corporate governance data to attain firm-level results by testing two competing hypotheses. There are several important areas where this study makes original contributions. First, while Tsoy and Heshmati (2019) focus on the dynamics of capital structure for only Korean firms, the authors extend the sample including eight East Asian countries considering the impact of country governance on capital structure policy. Specifically, this study is the first in using the robust country governance data, which differs by country and year, in the crisis context. Next, the authors investigate both the AFC and GFC to compare whether these two crises have different effects on capital structure policy of East Asian firms. Finally, the authors aim to understand whether leverage is used as a substitute for governance or an outcome of governance mechanism considering recessions.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-06-01
      DOI: 10.1108/IJOEM-03-2020-0297
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Exploring governments' role in mergers and acquisitions using IVIF
           MULTIMOORA-COPRAS technique

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      Authors: Evans Opoku-Mensah, Yuming Yin, Love Offeibea Asiedu-Ayeh, Dennis Asante, Priscilla Tuffour, Sandra Asantewaa Ampofo
      Abstract: Existing studies have found that most merger and acquisition (M&A) activities do not create the intended synergy. These studies have mainly investigated how firms' internal factors contribute to M&A successes or failures. The current study differs from the earlier ones by exploring how governments' activities can contribute to the creation of acquisition synergy. A novel technique based on multi-objective optimization by ratio analysis and complex proportional assessment method under an interval-valued intuitionistic fuzzy (IVIF) environment is proposed to prioritize these government roles needed during the M&A process focusing on the Chinese M&A market. Enactments of regulations and loan guarantees are the most important strategies to help Chinese acquirers overcome acquisition failures. While tax relief ranks third, government training support ranks fourth. Finally, the result shows that government institutional support is the least to help acquirers overcome acquisition failures. The government has a role to play in the acquisition success. Although this study has prioritized governments' role in relative importance order, the authors recommend that governments capable of providing all these strategies should do so without any specific order. However, if otherwise, governments should not neglect the strategies with less weight completely but rather consider reducing capital allocations to such strategies. Moreover, this study shows how firms with stronger business ties with government officials may enjoy success during acquisition activities. The authors recommend that firms intending to make acquisitions develop stronger ties with governments in order to benefits from governments. This is the first study to develop a theoretical framework showing how government can contribute to M&A success. The study achieves this by extending Keynesian's arguments and identifies five (5) ways in which governments can ensure acquisition success. Second, within fuzzy multi-criteria decision-making (F-MCDM) research, this study is the first to show the applicability of integrated multi-objective optimization by ratio analysis (MULTIMOORA) and complex proportional assessment (COPRAS) techniques in an IVIF environment. The novel methodology proposed in this study offers an insightful research method to future studies focusing on group decision problems.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-27
      DOI: 10.1108/IJOEM-11-2020-1405
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Annual report narrative disclosures, information asymmetry and future firm
           performance: evidence from Vietnam

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      Authors: Ly Thi Hai Tran, Thoa Thi Kim Tu, Tran Thi Hong Nguyen, Hoa Thi Lien Nguyen, Xuan Vinh Vo
      Abstract: This paper examines the role of the annual report’s linguistic tone in predicting future firm performance in an emerging market, Vietnam. Both manual coding approach and the naïve Bayesian algorithm are employed to determine the annual report tone, which is then used to investigate its impact on future firm performance. The study finds that tone can predict firm performance one year ahead. The predictability of tone is strengthened for firms that have a high degree of information asymmetry. Besides, the government’s regulatory reforms on corporate disclosures enhance the predictive ability of tone. The study suggests the naïve Bayesian algorithm as a cost-efficient alternative for human coding in textual analysis. Also, information asymmetry and regulation changes should be modeled in future research on narrative disclosures. The study sends messages to both investors and policymakers in emerging markets. Investors should pay more attention to the tone of annual reports for improving the accuracy of future firm performance prediction. Policymakers should regularly revise and update regulations on qualitative disclosure to reduce information asymmetry. This study enhances understanding of the annual report’s role in a non-Western country that has been under-investigated. The research also provides original evidence of the link between annual report tone and future firm performance under different information asymmetry degrees. Furthermore, this study justifies the effectiveness of the governments’ regulatory reforms on corporate disclosure in developing countries. Finally, by applying both the human coding and machine learning approach, this research contributes to the literature on textual analysis methodology.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-26
      DOI: 10.1108/IJOEM-08-2020-0925
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Culture and financial reporting quality in GCC countries: what do we know
           about tribal culture'

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      Authors: Saeed Rabea Baatwah, Khaled Salmen Aljaaidi, Ehsan Saleh Almoataz, Zalailah Salleh
      Abstract: Although the effect of culture on financial reporting practices has been addressed in earlier studies, the existing empirical evidence totally neglects an important dimension in Gulf Cooperation Council (GCC) markets: tribal culture. The authors fill this gap in the literature using Oman as the setting. The authors collect data for 583 company-year observations for companies listed on the Omani capital market, 2007–2014. The authors run a two-way fixed effects panel data regression to test their hypothesis. Tribal culture has a negative effect on financial reporting quality (FRQ), measured by both accrual-based and real earnings management. The findings are robust under a variety of sensitivity analyses. In additional analysis, the findings confirm that tribal culture negatively moderates the effectiveness of internal monitoring mechanisms and is associated with low-quality auditing. Further, the authors find tribal culture associated with delayed financial information. To the authors' knowledge, the study makes several contributions to the literature because it is the first archival evidence linking tribal culture with FRQ. It is the first to show that the effect of corporate governance mechanisms on FRQ is moderated by tribal culture. The study has valuable implications for policymakers, regulators, boards of directors and auditors in GCC countries as well as in countries with similar cultures.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-25
      DOI: 10.1108/IJOEM-04-2020-0439
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Credit risk in dual banking systems: does competition matter'
           Empirical evidence

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      Authors: Mohsin Ali, Mudeer Ahmed Khattak, Nafis Alam
      Abstract: The study of credit risk has been of the utmost importance when it comes to measuring the soundness and stability of the banking system. Due to the growing importance of Islamic banking system, a fierce competition between Islamic and conventional banks have started to emerge which in turn is impacting credit riskiness of both banking system. Using the system GMM technique on 283 conventional banks and 60 Islamic banks for the period of 2006–2017, this paper explores the important impact of size and competition on the credit risk in 15 dual banking economies. The authors found that as bank competition increases credit risk seems to be reduced. On the size effect, the authors found that big Islamic banks are less risky than big conventional banks whereas small Islamic banks are riskier than small conventional banks. The results are robust for different panel data estimation models and sub-samples of different size groups. The findings of this paper provide important insights into the competition-credit risk nexus in the dual banking system. The paper is specifically focused on credit risk in dual banking environment and tries to fill the gap in the literature by studying (1) do the Islamic and conventional banks exhibit a different level of credit risk; (2) does competition in the banking system impact the credit risk of Islamic and conventional banks and finally (3) do the big and small banks exhibit similar levels of credit risk.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-24
      DOI: 10.1108/IJOEM-01-2020-0035
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Idiosyncratic volatility and interruption mechanisms in South Korean stock
           markets

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      Authors: Seungho Shin, Atsuyuki Naka, Saad Alsunbul
      Abstract: The purpose of this study is to examine how the volatility interruption (VI) mechanisms affect idiosyncratic volatilities in Korean stock markets. Collecting the South Korea Stock Market (KOSPI) data from June 15, 2015 to March 31, 2019, we collect each residual,  εi,t, from three different estimated models: capital asset pricing model (CAPM), FF3 and FF5. To estimate the conditional idiosyncratic volatility, the authors employ two conditional time-varying measurements: GARCH and TGARCH. The results show that the conditional idiosyncratic volatility increases when stock prices reach the upper and lower static limits, indicating the implementation of adopting static VI mechanism neither stabilize market conditions nor reduce excess volatility along with the existence of price limits. Although market regulators and policymakers improve market conditions with the advanced VI mechanism, the empirical results show the adverse effect of the mechanism. Not allowing investors to earn above average returns without accepting above average risks makes Korean stock markets inefficient along with advanced VI mechanisms.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-20
      DOI: 10.1108/IJOEM-08-2020-0877
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • How does the internal capital market influence R&D spending' New
           evidence

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      Authors: Xin Xiang
      Abstract: The purpose of this study is to examine whether and how internal capital markets mitigate financial constraints and enhance firms' willingness to engage in R&D projects. The study uses panel data relating to 2,095 publicly traded firms in the Chinese A-share market for the period 2007–2019. The tobit regression method is applied to explore R&D investment–cash flow sensitivity of group affiliates, while the systematic generalised method of moments and dynamic ordinary least squares models are adopted to address the endogeneity problem in the robustness test. This study finds that firms affiliated with business groups demonstrate lower R&D investment–cash flow sensitivity than non-affiliated firms do and that R&D investments are significantly influenced by the cash reserves of other group members. In terms of financing channels, this study demonstrates that group firms use internal cash and equity financing to support other members' R&D investments, while debt financing does not influence member firms' R&D investments. In addition, this study discovers that R&D spending harms the stock and operating performance of some group members. The findings of this study enable business groups to focus on resource allocation and investment efficiency. Although prior studies indicate that internal capital markets can enhance R&D spending, few studies reveal the mechanisms through which internal capital markets benefit R&D. This study uses a unique methodology to test the ability of the internal capital market to enhance R&D spending. In addition, group firms use internal cash flow and equity financing to support partners' R&D projects.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-20
      DOI: 10.1108/IJOEM-07-2020-0822
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • A multidimensional and hierarchical model of banking services and
           behavioral intentions of customers

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      Authors: Md. Alamgir Hossain, Nusrat Jahan, Minho Kim
      Abstract: Banking services encounter major challenges in determining customer's psychometric behavioral intentions. Scholars suggest that a theoretical approach to better understand the key constructs of service marketing, such as service quality, perceived value, customer satisfaction, corporate image and behavioral intentions, is critical to bank performance. The present study aims to design and test a comprehensive multidimensional and hierarchical model of service quality with higher-order psychometric constructions and their mediation effects in the model. Data from a self-administered structured questionnaire are analyzed by confirmatory factor analysis and structural equation modeling. Empirical results confirm that multidimensional and hierarchical service quality are best suited to assess overall banking service quality, in which outcome, interaction and environment quality are the important primary dimensions, with each of them having several subdimensions. Service quality is the significant antecedent of behavioral intentions, customer satisfaction, corporate image and perceived value. Customer satisfaction and service quality are the best determinants of behavioral intentions. In addition, customer satisfaction, perceived value and corporate image are complementary variables, having significant mediation effects on the relationship between service quality and behavioral intentions. As a maiden study in the context of emerging economies, this research integrates a comprehensive service quality theory and valuable customer loyalty constructs, which are crucial to banks' financial performance, bolstering evidence for the theoretical pitch. This study also provides managers with a clear idea of how they can develop sustainable service marketing strategies and policies on the psychometric perceptions of customers, thereby leading banks to achieve long-term goals.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-20
      DOI: 10.1108/IJOEM-07-2020-0831
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The differentiated impacts of external and internal financing on export:
           the firm-level evidence

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      Authors: Xiangyuan Meng, Xue Li, Wenyan Xiao, Jie Li
      Abstract: The authors provide firm-level evidence that external financing affects international trade in a way different from internal financing. The authors separate new entrants from incumbent exporters and investigate the roles of external and internal financing in export market participation and export quantity. The authors find that external financing is of particular importance, as well as internal financing, in helping a firm become a new exporter. By contrast, external financing, unlike internal financing, is not significantly important for an incumbent exporter to stay in the international market. Regarding export quantity, a firm's internal financing is positively associated with more export quantity, whereas external financing is not. The authors’ findings are consistent with the existence of significant fixed cost for entering the export market and external financing is particularly needed to cover such cost. Meanwhile, the financial need for maintaining the export status is much less and can be satisfied via internal financing.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-20
      DOI: 10.1108/IJOEM-11-2020-1385
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Consumer xenocentrism and foreign goods purchase intention in an emerging
           economy

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      Authors: Mahmoud Abdulai Mahmoud, Tracy Nana Ebaskwa Mallen-Ntiador, Dominic Andoh, Mustapha Iddrisu, Adelaide Naa Amerley Kastner
      Abstract: The purpose of this study is to test consumer xenocentric tendencies on foreign goods purchase intention and to examine the mediating role of cultural openness on the relationship. A total number of 204 respondents participated in the study. Web-based sampling technique was employed to select a cross-section of consumers. Structural equation modelling technique of AMOS 21 version was used to test the nature of relationships in the research hypotheses. The results suggest that except country image and interpersonal influence, all other constructs had a positive significant relationship with the intention to purchase. Country of origin, self-confidence and self-esteem had impact on consumer intention to purchase foreign products, though exposure of consumers to other cultures did not endear them to the products of those foreign markets. From a managerial perspective, management awareness of xenocentrism tendencies is the surest way to make prudent decisions with respect to stocking and distributing foreign and local products or services. The current study brings newness to the phenomenon as it tests consumer xenocentric (C-XEN) constructs in an emerging economy, and cultural openness as a mediating variable.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-19
      DOI: 10.1108/IJOEM-08-2020-0911
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Have China's exports improved the export technology level of the other
           BRICS countries' An empirical analysis based on data from SITC

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      Authors: Feng Jiang, Chaofan Chen, Qingxin Lan, Zhaoyi Zhu
      Abstract: The purpose of this paper is to analyze whether China's exports can effectively improve the global competitiveness of other BRICS countries' exports from the perspective of intra-BRICS export trade. This paper extends the multinational trade model and analyzes the mechanism of the technological upgrading effect from the perspective of dynamic general equilibrium theory. In addition, this paper uses the export panel data of 217 products with three-digit SITC codes from China to other BRICS member countries from 2000 to 2016 and constructs a dynamic empirical model for parameter estimation. The results show that China's exports to other BRICS member countries can effectively promote the technological improvement of other BRICS member countries' export products. In particular, the formal establishment of the BRICS organization in 2010 has significantly improved the efficiency of China's export technology optimization. In the background of the prevalence of anti-globalization and the proliferation of protectionism, this paper proves that the deepening of trade cooperation between other BRICS members with China can help optimize their own international trade competitiveness and allow China's development dividend to benefit more countries and people.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-14
      DOI: 10.1108/IJOEM-08-2020-0929
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The influential factors and consequences of knowledge sharing for
           expatriates

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      Authors: Wann-Yih Wu, Li-Yueh Lee, Nhu Vo Quynh Phan, Alfiyatul Qomariyah, Phuoc-Thien Nguyen
      Abstract: As the dynamic competition in the global marketplace becomes increasingly severe, multinational firms have no choice but to improve their competitive advantages and enhance productivity through innovation, learning and leadership. One essential issue is the capability of expatriates to support knowledge sharing and transfer from organizations headquarter to their subsidiaries through expatriates; however, there are few studies on this issue. This study attempts to identify the antecedents, consequences and moderators of knowledge sharing. Using a questionnaire survey approach, data were obtained from 234 expatriates working for Taiwanese multinational enterprises. The hypotheses were tested by SmartPLS 3.0. The empirical results indicate that opportunity and ability have a significant impact on expatriates' knowledge sharing. Trust, commitment and social capital also have significant influences on expatriates' collecting and donating of knowledge. The level of tacitness, specificity and complexity of knowledge have a negatively impact on knowledge sharing. Knowledge collecting can positively promote the outcome of knowledge sharing, including learning and growth, internal process, customer satisfaction, and financial performance. Furthermore, organizational support and the richness of transmission channels served as two of the moderators that can amplify the influences of the antecedents on knowledge sharing and the influences of knowledge sharing on outcomes. The results of this study can provide valuable references for academicians and professionals when deciding how to facilitate knowledge transfer from the company headquarters to subsidiaries through expatriates.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-14
      DOI: 10.1108/IJOEM-12-2019-1042
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Motivations behind backers’ contributions in reward-based crowdfunding
           for movies and web series

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      Authors: Hasnan Baber, Mina Fanea-Ivanovici
      Abstract: Crowdfunding as an alternative financing method has recently gained ground and become a legitimate and feasible option for supporting creative and cultural projects. Whereas the reasons behind raising money on crowdfunding platforms are easy to understand, there is still a knowledge gap concerning backer’s motivations to fund creative projects. The aim of this study is to investigate backers’ main motivations to contribute to movies and web series crowdfunding projects. Using PLS-SEM, we analyzed the influence of intrinsic motivation, inner innovativeness, shared values and campaign involvement on perceived trust and perceived risk; the last two were further analyzed in relation to their influence on participation intention (N = 432). Data was collected from Europe and Asia using convenience and snowball sampling through a structured questionnaire. Perceived trust was found to be positively influenced by intrinsic motivation, shared values and campaign involvement, and perceived risk was surprisingly found to be positively influenced by campaign involvement. Also, perceived trust as generated by platform and crowdfundraiser jointly and perceived risk have a positive influence on participation intention. This study is a useful tool in the hands of filmmakers and web series producers in the process of crowdfunding campaign design and for the crowdfund platform owner, who will seek to enhance perceived trust in order to attract larger audiences and increase profitability. This is an original first study to examine the intentions of people from Europe and Asia toward movie and web series crowdfunding projects.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-13
      DOI: 10.1108/IJOEM-01-2021-0073
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • COVID-19 and overconfidence bias: the case of developed, emerging and
           frontier markets

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      Authors: Vijay Kumar Shrotryia, Himanshi Kalra
      Abstract: The main purpose of the present study is to delve into the overconfidence bias in global stock markets during both pre COVID-19 and COVID-19 phases. The present study makes use of daily adjusted closing prices and volume of the broad market indices of 46 global stock markets over a period ranging from July 2015 till June 2020. The sample period is split into pre COVID-19 and COVID-19 phases. In order to test the overconfidence fallacy in the chosen stock markets, bivariate market-wide vector auto regression (VAR) models and impulse response functions (IRFs) have been employed in both phases. A highly significant contemporaneous relationship between market return and volume appears to be more pronounced in the Japanese, US, Chinese and Vietnamese stock markets in the pre COVID-19 era for the relevant coefficients are positive and highly significant for most lags. Coming to the period of turbulence, the present study discovers strong overconfident behavior in the Chinese, Taiwanese, Turkish, Jordanian and Vietnamese stock markets during COVID-19 phase. A stark finding is that none of the developed stock markets reveal strong overconfidence bias during pandemic, suggesting a loss or decline in the investors' confidence. Therefore, the regulators should try to regain the investors' trust and confidence in the markets by ensuring honest, fair and transparent practices. The money managers should reduce the transaction cost to encourage trading and educate investors to hold a well-diversified portfolio to mitigate risk in the long run. The governments may launch recovery packages focusing on sustaining and improving economic activities. Finally, a better investment culture may be built by the corporate houses through good corporate governance practices to regain lost trust. The present study appears to be the very first attempt to gauge overconfidence bias in the wake of a recent COVID-19 pandemic.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-13
      DOI: 10.1108/IJOEM-09-2020-1019
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Do vulnerability mitigation strategies influence firm performance: the
           mediating role of supply chain risk

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      Authors: Zulqurnain Ali, Bi Gongbing, Aqsa Mehreen
      Abstract: Currently, small and medium enterprises (SMEs) are facing different types of risk, and mitigating these risks is the primary concern for the emerging firms. This study intends to investigate “do vulnerability mitigation strategies (VMSs) predict firm performance (FP)”' Moreover, it explores the mediation mechanism of supply chain risk (SCR) in the association between VMSs and FP. Using a survey method, the authors recruited 355 textile SME entrepreneurs and tested their proposed model and hypotheses in AMOS. The findings depict that all VMSs significantly minimize SCR, which subsequently enhances FP. Moreover, he atudy also identifies supply chain finance (SCF), a new VMS in the context of textile SMEs. The findings help SME officials to minimize SCR through proper implementation of VMSs in the firm's daily operations. SCF is strongly recommended to SMEs because it optimizes working capital and minimizes the risk of default. This research supports SMEs to overcome vulnerabilities using VMSs and provide sustainable employment to individuals in the society. This study reviews four VMSs and how these strategies simultaneously mitigate SCR and enhance SME performance in the emerging market context, which was skipped in the literature of supply chain management. Moreover, the study identifies SCF as a significant risk mitigation strategy for SMEs.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-11
      DOI: 10.1108/IJOEM-04-2020-0397
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Impact of perceived brand authenticity on consumer behavior: an evidence
           from generation Y in Asian perspective

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      Authors: Asif Ali Safeer, Yuanqiong He, Yuanyuan Lin, Muhammad Abrar, Zubair Nawaz
      Abstract: In the modern era, brand authenticity is one of the most powerful positioning strategies for sustainable business growth. This study investigated the impacts of perceived brand authenticity dimensions (i.e., quality commitment, heritage, sincerity) on brand love to predict Generation Y's behavior from the Asian context. This is new empirical research that tested the proposed hypotheses through PLS-SEM, as PLS is the most robust technique for predicting consumer behavior. Importantly, consumers (of Generation Y) from five Asian countries contributed to this study, and data collected from 427 Asian millennials on global brands. The results analysis revealed that perceived brand authenticity dimensions significantly impacted brand love, which positively affected Asian millennials' behavioral outcomes (i.e., continuous purchase intention and price premium). This study investigated dimensions of perceived brand authenticity to predict Asian millennials' behavioral outcomes in a broader perspective. Future researchers may investigate a specific culture with a larger sample size to predict millennials behavior. This study has several implications that guide the global managers of several service and manufacturing industries to develop various positioning and relationship strategies for global brands to target Asian markets effectively. Using attribution theory, this is the first novel research study that empirically discussed the dimensions of perceived brand authenticity, brand love, and Asian millennials' behavior toward global brands.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-10
      DOI: 10.1108/IJOEM-09-2020-1128
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Shaping bricolage behaviour: the role of personality traits among female
           entrepreneurs in an emerging economy

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      Authors: Syed Abidur Rahman, Mirza Mohammad Didarul Alam, Golam Mostafa Khan, Rowan Elodie Kennedy
      Abstract: This paper examines the predictive role of personality traits on the entrepreneurial bricolage behaviour of female entrepreneurs in a resource-constrained setting. Data were collected using a structured survey questionnaire from female entrepreneurs owning and operating micro-small firms. The analysis and hypotheses testing were performed adopting SEM-PLS3.0 software. The results showed that all dimensions of the Big Five personality traits significantly influence entrepreneurial bricolage. In addition, agreeableness, conscientiousness, and intellect were found to be the most important traits in female entrepreneurs for bricolage behaviour. The results can help provide a better understanding of the linkages between entrepreneurial traits and bricolage. Development agencies may take up this result to ensure the appropriate social inclusion by supporting female entrepreneurs. To the authors' best knowledge, this paper is the first empirical study that has investigated the relationship between personality traits and entrepreneurial bricolage.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-10
      DOI: 10.1108/IJOEM-09-2020-1156
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Dynamics between ownership structure and dividend policy: evidence from
           Bangladesh

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      Authors: Md. Bokhtiar Hasan, Abu N. M. Wahid, Md. Ruhul Amin, Md. Delowar Hossain
      Abstract: The purpose of this study is to examine the impact of ownership structure such as family, government, institutional, foreign and public on dividend payouts as a representative of dividend policy of nonfinancial firms in Bangladesh. This study employs a dynamic panel data model, namely, differenced generalized method of moments (GMM), which follows a two-step process. The study uses annual data of a sample of 159 nonfinancial firms of Dhaka Stock Exchange for the period 2008–2017, which constitutes a panel data of 1,590 firm-year observations. This study’s findings reveal that family and public ownerships have a significant and positive effect on dividend payouts, while government and institutional ownerships have a significant but negative effect. This study additionally incorporates some very important controlled variables and finds that except for size, all the selected controlled variables, i.e. lagged-one of dividend payout, returns on assets, debts to assets, price-earnings (PE) ratio, age and financial crisis have a significant effect on the dividend payouts. However, the findings support several dividend-related theories or hypotheses, i.e. agency cost theory, dividend stability theory and reputation hypothesis. This study could consider some other aspects of corporate governance, as well as other emerging markets and financial institutions to perceive whether the results differ. Also, investigation could be carried out on conventional and Islamic firms individually to observe if the findings are different. However, the researchers are suggested to incorporate these issues in their future studies. This study offers an important insight into the relationship dynamics between dividend payouts and ownership structure in the context of an emerging market like Bangladesh. Moreover, it enhances the understanding of the ties of dividend payouts with the firm-specific factors as well as the financial crisis. The findings of the present study have also important implications for managers, policymakers and researchers, who are in quest of directions on the dividend policy of publicly listed nonfinancial firms. Most of the previous studies consider one or two types of ownership to examine the impacts on dividend payouts, while this study uses five types of ownership accompanied by a different data set. Moreover, to the authors’ knowledge, no study in Bangladesh has yet addressed this issue in such a comprehensive manner as theirs.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-07
      DOI: 10.1108/IJOEM-06-2020-0711
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Shariah-compliant equities and Shariah screening: need for convergence of
           ethical screening of stocks with Shariah screening

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      Authors: Tauhidul Islam Tanin, Abu Umar Faruq Ahmad, Aishath Muneeza
      Abstract: This study explores the practical application of the Shariah screening process and how it could be enhanced by converging the same with the ethical screening of stocks. This study adopts a qualitative research methodology by combining the qualitative descriptive approach and content analysis. The findings of this research suggest that there is scope to converge ethical screening of stocks with Shariah Screening as the lex loci applicable to Shariah screening is derived from Shariah, which considers ethics as part of determining its rules. The data from this study reveal several practical applications, the ultimate goal of which is to help the policymakers and stakeholders understand the relevance of the Shariah screening of stocks and get a streamlined screening process, paving the way to enhance the same using ethical screening criteria to develop its function to become much more relevant irrespective of the denomination of faiths. This is original research, which is expected to contribute to understanding the extent to which Shariah screening can be enhanced by integrating the ethical stock screening dimension to it.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-06
      DOI: 10.1108/IJOEM-09-2020-1041
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Impact of FDI inflows on bank loans in Gulf Cooperation Council economies:
           an empirical insight

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      Authors: Abdulazeez Y.H. Saif-Alyousfi
      Abstract: The purpose of this paper is to investigate and compare the impact of FDI inflows on bank loans in aggregate as well as at the level of conventional and Islamic banks in GCC countries. The paper also tests hypotheses of direct and indirect impacts of FDI inflow and FDI stock on bank loans. The sample comprises a total of 70 banks (45 conventional and 25 Islamic banks). The period under consideration is 1995–2017. Static panel and dynamic panel GMM estimation techniques are applied. Empirical results indicate that inflowing FDI and FDI stock have a significant negative direct impact on loans of GCC banks. The results lend support to the direct channel hypothesis for the effect of FDI on bank loans and find no evidence in support of the indirect channel hypothesis. FDI inflows affect bank loans directly via increased FDI-related liquidity, business activity or excessive competition in the banking market; they are not channeled through macro variables. Loans from conventional banks appear to be more affected than those from Islamic banks. Given the attractiveness of the GCC economies to foreign investment, the potential volatility of investment-induced instability to the financial system in these economies should be on the radar of the central banks. Attracting more FDI is expected to increase overall national productivity through competition. However, government would be wise to enact a policy to maximize benefits and minimize potential harm to local industry. In addition, to achieve the goal of the new economic model, in turning the GCC economies into high-income and knowledge-driven economies by 2030, enhancement of efficiency and the quality of the workforce will contribute to creating productivity-driven economies. It is widely recognized that FDI inflows are of great importance to the financial performance development of emerging and developing countries. However, their impact on bank loans has so far not been subject to accurate empirical assessment. This paper aims to fill this gap by providing an in-depth quantitative analysis of the impact of FDI inflow and FDI stock, separately, on bank loans for both conventional and Islamic banks in GCC countries. It distinguishes between direct and indirect channels through which FDI inflows may affect bank loans. The study uses both static and dynamic panel GMM estimation techniques to analyze the data.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-05
      DOI: 10.1108/IJOEM-06-2019-0465
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Housing prices and the probability of marriage among the young: evidence
           from land reform in China

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      Authors: Mingzhi Hu, Lina Wu, Guocheng Xiang, Shihu Zhong
      Abstract: Using data from the China Health and Nutrition Survey, this work examines the relationship between housing price and the probability of marriage among the young. By exploiting land reform as an exogenous change in housing price and employing a differences-in-differences framework, this study investigates the effects of housing price on the marriage probability of young people. This work confirms that land reform decreased young people's likelihood of marriage. This finding is robust to a series of model specifications. The effects of land reform increased over time because of rising housing unaffordability from progressively inflating housing prices. Moreover, land reform had larger effects on renters and young adults aged below 30 than homeowners and young adults aged above 30. Overall, this study highlights the negative consequences of an overheated housing market on marriage in developing countries. Housing prices have increased dramatically in urban China after 2002 upon the implementation of the assignment system of the use right of all kinds of profit-oriented lands by means of public bidding, auction and quotation. High housing prices indicate serious housing unaffordability, especially for young people who typically have low income and wealth. Homeownership that comes with various benefits can theoretically increase the likelihood of marriage, particularly in China where a house is often regarded as a prerequisite for marriage.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-04
      DOI: 10.1108/IJOEM-09-2020-1116
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Affordable luxury consumption: an emerging market's perspective

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      Authors: Shadma Shahid, Jamid Ul Islam, Rahela Farooqi, George Thomas
      Abstract: This study aims to focus on proposing and empirically validating a model that captures certain critical socio-psychological factors that nurture consumers' attitude towards affordable luxury brands in an emerging market context of India. The data were collected via a cross-sectional questionnaire survey from 491 customers of different fashion accessory luxury products in India. The data were analyzed through structural equation modelling (SEM) using AMOS 23.0 SEM software. The findings of this study reveal that conspicuousness, status consumption, brand name consciousness, need for uniqueness and hedonism positively affect consumer attitude towards affordable luxury, which consequently affects consumers' purchase intention. The findings further reveal that age acts as a moderator in driving consumers' neo-luxury consumption. By uniting various socio-psychological factors with consumer attitude and purchase intention in a conceptual model, along with studying the moderating role of age, this study responds to the calls for further research regarding affordable luxury and offers a more granular understanding of specific consumer motivations that guide Indian consumers' affordable luxury consumption.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-05-03
      DOI: 10.1108/IJOEM-01-2021-0144
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Understanding the difference of values-based motivation of managerial
           workers in spa businesses in Thailand

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      Authors: Pornlapas Suwannarat
      Abstract: This study focuses on variations of the importance of core values through motivational domains of individuals by their cultural background. The effect of motivational domains on operational performance has also been investigated. The study used survey as the main data collection method to elicit data from managerial workers in spa businesses in four regions of Thailand. An unpublished database of spa businesses was provided to the study by the Thai Chamber of Commerce. Significant variations of the importance of motivational domains of managerial workers can be found according to the subculture of each of the four regions of Thailand. In addition, the motivational domains have found their significant impact on worker operational performance. One of the limitations of this study may be the distribution of samples because the study focuses on spa businesses, most of which in each region are located in big tourism provinces that may not be wholly representative of the characteristics of each region. This study will be of practical value for practitioners or managers of any firms since it is important to consider value variations when assessing the operational performance; workers, especially managerial workers, in each subculture may have different priorities in the motivational domains of their lives. This could affect their operational performance. This is an original attempt to ascertain variations of core values through motivational domains by subculture. It fills a knowledge gap in under-researched area in the literature since so far a few studies have examined this issue in the ASEAN countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-30
      DOI: 10.1108/IJOEM-03-2020-0310
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Do corporate social responsibility practices affect the relative
           efficiency of Egyptian conventional and Islamic banks'

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      Authors: Tamer Mohamed Shahwan, Ahmed Mohamed Habib
      Abstract: This study assesses the impact of corporate social responsibility (CSR) practices on the relative efficiency of conventional and Islamic Egyptian banks in the period 2012–2018. A three-stage approach is adopted. First, data envelopment analysis (DEA) is used to assess the relative efficiency of Egyptian banks. Second, a CSR index is designed and used to assess the extent of aggregate CSR practices in Egyptian banks, together with their sub-dimensions. Third, a Tobit regression model is used to examine the impact of CSR on the technical efficiency of these banks. There is no statistically significant difference between conventional and Islamic banks as regards their purely technical efficiency. Egyptian banks, on average, have achieved a medium score in their practices of CSR and conventional and Islamic banks have not shown significant differences, except in 2018. Moreover, the aggregate CSR practices positively affect the technical efficiency of Egyptian banks. The practices of the CSR sub-dimensions, apart from the community sub-dimension, also affect the banks' technical efficiency. The legislative institutions and the Central Bank should enhance CSR practices in Egyptian banks, particularly the practices related to customers and the community, in order to enhance the purely technical efficiency of these banks. The paper is original in investigating the impact of CSR on banks' relative efficiency in Egypt.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-30
      DOI: 10.1108/IJOEM-05-2020-0518
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Exchange rate appreciation, trade competition and technology transaction:
           evidence from China

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      Authors: Dingping Cheng, Sumei Gan
      Abstract: The purpose of this study is mainly to investigate the stimulating effect on technology transactions of trade competition resultant from RMB appreciation. This study uses Chinese provincial panel data from 1998 to 2015 and utilizes GMM method to estimate the stimulating effect of RMB appreciation on technical transactions through trade competition. The results demonstrate that RMB appreciation can encourage enterprises to make use of domestic technology market resources for innovation. Specifically, the increase in imports due to the appreciation of RMB can generate technology spill-over and significantly promote technology trade. The export competition resultant from RMB appreciation can also encourage domestic and foreign enterprises to enhance export competitiveness through increased technology transactions. The current research investigates the impact of exchange rate on independent innovation, but this study demonstrates the influence of exchange rate on technology transactions. In addition, the data in this study cover 1998–2015 in China and thus contributes to determining the effects of exchange rate appreciation in emerging countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-30
      DOI: 10.1108/IJOEM-07-2020-0806
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Do different political connections affect firms' distress risk
           differently'

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      Authors: Thang Xuan Nguyen, Khanh Hoang, Cuong Cao Nguyen, Thang Ngoc Bach
      Abstract: This paper investigates how different types of corporate political connection, including government-linked investment (GLI), former officials as politically-connected directors (PCD), cronyism (CRO) and government leaders' family ties (FAM), influence financial distress risk in Malaysian firms. We separate political connections into four distinct categories and investigate their relationship with firm distress risk and compare the results with the one-size-fits-all treatment which is popular in the literature. We apply a battery of sensitivity test to ensure that our inferences are robust to a wide range of test specifications, endogeneity concern and sample selection methods. The empirical results show that the effect of political connections on distress risk is strongly heterogeneous. GLI and PCD firms tend to have higher distress risk via increased risk-taking behaviors because of the different incentives of the connections, while this nexus does not directly exhibit in CRO and FAM firms. Further analyses reveal that CRO and FAM firms are more likely to venture into risky international diversification, thus indirectly amplifying their distress risk. Our findings are novel and provide practical implications for financial analysts, investors and portfolio managers operating in the capital markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-30
      DOI: 10.1108/IJOEM-08-2020-0874
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The Belt and Road Initiative and East African small and medium-sized
           enterprises: benefits, drivers and particular sectors

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      Authors: Samuel Gyamerah, Zheng He, Enock Mintah Ampaw, Dennis Asante, Lydia Asare-Kyire
      Abstract: Drawing upon the institutional theory, the present study investigated whether or not small and medium-sized enterprises (SMEs) in East Africa benefit from the Belt and Road Initiative (BRI), and how the latter influences the internationalization of the former. An in-depth interview was conducted by using 26 SME managers/owners who are engaged in international activities in the “Belt and Road” countries. The sample was chosen from four East African countries across three industries. The theoretical framework emerged from the grounded theory analysis of the primary data. The authors found that the BRI as a formal institutional force generates both direct and indirect influences on SMEs' internationalization. Three key driving forces, namely partnerships, specialized services and innovativeness underpin the internationalization of SMEs. Additionally, sectoral analysis of the similarities and differences in responses reveals no remarkable differences in the drivers and impact of the BRI on SMEs in all the three industries investigated. The internationalization process of East African SMEs could be augmented through formal institutions like the BRI, and the internationalization of SMEs along the “Belt and Road” countries mimic an integrative approach. The theoretical framework demonstrates significant potential for further benefits that SMEs may obtain through the BRI by taking advantage of certain BRI opportunities and adopting crucial strategies to internationalize rapidly. This is the first study to employ a qualitative approach to study the influence of the BRI at the firm-level. Specifically, the paper covered the hub of BRI countries in East Africa. Hence, the study makes substantial theoretical and policy contributions to the literature.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-30
      DOI: 10.1108/IJOEM-08-2020-1000
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The sustainability of fiscal policy in southern African countries–a
           comparative empirical perspective

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      Authors: Michał Mackiewicz
      Abstract: The purpose of the paper is to assess the fiscal sustainability of nine southern African countries that belong to the Southern African Development Community. In this paper, the author performs a novel time-varying analysis of fiscal sustainability in southern African countries. The authors found that in Zimbabwe and Namibia, the formal condition of solvency was not fulfilled, resulting in the explosive growth of debt during the recent slowdown. In contrast, Angola, Botswana and Malawi prove to run sustainable fiscal policies, and they were also fiscally invulnerable to the recent unfavourable economic developments in Africa. For the rest of the countries in the sample (Eswatini, Lesotho, South Africa and Zambia), the results are mixed. In the existing literature, there is abundance of empirical evidence concerning fiscal sustainability in European and American countries. In contrast, there is strikingly little knowledge concerning this phenomenon in African countries. The authors tried to fill this gap using a novel, time-varying approach.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-29
      DOI: 10.1108/IJOEM-06-2020-0696
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Adoption of mobile banking at the bottom of the pyramid: an emerging
           market perspective

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      Authors: Sonal Purohit, Rakhi Arora
      Abstract: This paper aims to investigate the factors that affect mobile banking adoption among the bottom of the pyramid (BoP) group in an emerging market. Data were collected from 332 bank customers in the BoP group through a questionnaire based on previously validated scales. Structural equation modeling (SEM) was applied using SmartPLS 2.0 to analyze the data. It was found that perceived usefulness (PU) and perceived ease of use (PEoU) influence the attitude toward mobile banking positively whereas the perceived risk (PR) and perceived deterrents (PDs) influence the attitude negatively. The subjective norms (SNs) and the attitude positively affect mobile banking adoption. Knowledge of mobile banking has a strong effect on the PEoU, but it does not influence the PU of mobile banking. This research makes an original contribution to the extant research and fills the gap by exploring the factors that affect the mobile banking adoption among a distinct BoP group (migrant workers) in an emerging market. The authors make use of knowledge of mobile banking and PDs as novel and important constructs in the technology acceptance model (TAM) to explore the factors that affect mobile banking adoption among the BoP.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-29
      DOI: 10.1108/IJOEM-07-2020-0821
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Exploring the affect heuristic in Iranian women entrepreneurs

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      Authors: Pouria Nouri
      Abstract: Heuristics are fundamental components of the bounded rationality paradigm and influence entrepreneurs' decisions profusely. On the other hand, the affect heuristic is one of the most important heuristics. The body of knowledge on entrepreneurial heuristics is scattered on the whole and very superficial concerning women entrepreneurs, given that most studies have considered women and men entrepreneurs similar in showing heuristics. The dearth of research is more evident in the context of developing countries. Thus, to fill part of the existing research gaps, this study explores the affect heuristic in Iranian women entrepreneurs. This paper's data were gathered by conducting face-to-face interviews with 17 novice Iranian women entrepreneurs active in biotechnology, nanotechnology, advanced medicine, aerospace, textile and food sectors and analyzed through a thematic–narrative analysis. According to the results, the main outcomes of the affect heuristic in Iranian women entrepreneurs are delaying the final decision (including an obsession with collecting too much information, overemphasizing the role of negative information and seeking external advice before making a decision), rash decisions (including evaluations based on satisfying decision strategies, too much enthusiasm about one's venture, as well as an optimistic assessment of different scenarios) and serious consideration of quitting (including too much disappointment and anger over discrimination). Based on this paper's findings, novice women entrepreneurs should be heedful of their fear, which could not only delay their decisions but also paralyze their capability of decision-making. Furthermore, while under circumstances such as information overload and uncertainty, positive feelings like optimism and happiness could be very instrumental by enabling entrepreneurs to shorten the process of their decisions, women entrepreneurs should be very careful about the possible biases resulting from their positive affect. This study is a pioneer in two respects. First, it explores women entrepreneurs' decision-making heuristics, which is often a neglected area of research. Second, coming to the conclusion that most of the research on women entrepreneurs has been conducted in the Western context, this paper focuses on the context of developing countries by targeting Iranian women entrepreneurs.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-29
      DOI: 10.1108/IJOEM-07-2020-0830
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Commodity prices and exchange rates: evidence from commodity-dependent
           developed and emerging economies

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      Authors: Saba Haider, Mian Sajid Nazir, Alfredo Jiménez, Muhammad Ali Jibran Qamar
      Abstract: In this paper the authors examine evidence on exchange rate predictability through commodity prices for a set of countries categorized as commodity import- and export-dependent developed and emerging countries. The authors perform in-sample and out-of-sample forecasting analysis. The commodity prices are modeled to predict the exchange rate and to analyze whether this commodity price model can perform better than the random walk model (RWM) or not. These two models are compared and evaluated in terms of exchange rate forecasting abilities based on mean squared forecast error and Theil inequality coefficient. The authors find that primary commodity prices better predict exchange rates in almost two-thirds of export-dependent developed countries. In contrast, the RWM shows superior performance in the majority of export-dependent emerging, import-dependent emerging and developed countries. Previous studies examined the exchange rate of commodity export-dependent developed countries mainly. This study examines both developed and emerging countries and finds for which one the changes in prices of export commodities (in case of commodity export-dependent country) or prices of major importing commodities (in case of import-dependent countries) can significantly predict the exchange rate.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-29
      DOI: 10.1108/IJOEM-08-2020-0954
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Macroeconomic variables for predicting bear stock markets of Taiwan and
           China

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      Authors: Tran Van Phuong Duong, Szu-Hsien Lin, Huei-Hwa Lai, Tzu-Pu Chang
      Abstract: This research examines how macroeconomic variables can precisely predict bull/bear stock markets in China and Taiwan. This paper adopts a two-state Markov switching model to characterize the bull and bear markets spanning from 1994 to 2019 and then conduct a bear stock market predictability test by running regressions between the filtered probabilities of bear markets and a series of macroeconomic variables in turn at different horizons of 1, 3, 6, 12 and 24 months. This paper shows that inflation rates, changes in real exchange rates, and foreign currency reserve growth are key predictors of bear markets in China, while term spreads, unemployment rates and foreign reserve growth are major factors that can predict bear markets in Taiwan. Remarkably, industrial production growth does not have predictive power for bear markets, which may suggest emerging markets are driven by fund flows rather than real economic activities. Besides, the impact directions of foreign currency reserve growth are opposite, which may be due to different proportions of the financial accounts in their balance of payments. In practical respect, this paper provides market participants the usefulness, impact direction and implications of bear market predictors when building their market-timing strategies in China and Taiwan stock markets. The government institutions may also thereby make appropriate policies to prevent huge stock market downturns and serious drawbacks. It highlights the “fund-driven market hypothesis” and “foreign currency reserve effects” that commonly dominate Taiwan and China stock markets since both are highly affected by international funds.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-29
      DOI: 10.1108/IJOEM-09-2020-1034
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Measuring total factor productivity in agriculture: a bibliometric review

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      Authors: Łukasz Kryszak, Katarzyna Świerczyńska, Jakub Staniszewski
      Abstract: Total factor productivity (TFP) has become a prominent concept in agriculture economics and policy over the last three decades. The main aim of this paper is to obtain a detailed picture of the field via bibliometric analysis to identify research streams and future research agenda. The data sample consists of 472 papers in several bibliometric exercises. Citation and collaboration structure analyses are employed to identify most important authors and journals and track the interconnections between main authors and institutions. Next, content analysis based on bibliographic coupling is conducted to identify main research streams in TFP. Three research streams in agricultural TFP research were distinguished: TFP growth in developing countries in the context of policy reforms (1), TFP in the context of new challenges in agriculture (2) and finally, non-parametric TFP decomposition based on secondary data (3). This research indicates agenda of future TFP research, in particular broadening the concept of TFP to the problems of policy, environment and technology in emerging countries. It provides description of the current state of the art in the agricultural TFP literature and can serve as a “guide” to the field.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-13
      DOI: 10.1108/IJOEM-04-2020-0428
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Market reaction to the COVID-19 pandemic: evidence from emerging markets

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      Authors: Maretno Agus Harjoto, Fabrizio Rossi
      Abstract: This study examines the market reaction to the World Health Organization (WHO) announcement of the novel coronavirus disease 2019 (COVID-19) as a global pandemic on the emerging equity markets and compares the reaction with developed markets. This study also compares the market reactions to the COVID-19 pandemic with the market reactions to the 2008 global financial crisis. Using the Morgan Stanley Capital International daily stock indices data and the Carhart and the GARCH(1,1) models for an event study, the authors examine the cumulative abnormal returns during 30 and 10 trading days and the extended 60 days before and after the WHO pandemic announcement. It also compares the market reactions during the COVID-19 pandemic with the reactions to the Lehman Brothers' bankruptcy announcement during the 2008 global financial crisis. This study finds that the COVID-19 pandemic had a significantly greater negative impact to the stock markets in emerging countries than in the developed countries. The negative impact on the emerging markets is more pronounced for firms with small market capitalizations and for growth stocks. The negative impact of the COVID-19 pandemic is stronger in the energy and financial sectors in both emerging and developed markets. The positive impact of the COVID-19 pandemic occurred in healthcare and telecommunications for the emerging markets and information technology for the developed markets. This study also finds that the equity markets in both emerging and developed countries recovered faster from the COVID-19 pandemic relative to the 2008 global financial crisis. Investors' desire to diversify their risks across different countries and sectors in the emerging markets could bring superior returns. The diversification strategies bring critical financial supports to forestall the contagion of COVID-19, to protect lives, and to save the emerging economies, especially for those financially constrained countries that are facing twin health and economic shocks by channeling their investments to countries with weak healthcare systems. This study extends the literature that examines market reactions to stock market shocks by examining the market reactions to the COVID-19 outbreak on the emerging and developed equity markets across different market capitalizations, valuation and sectors. This study also finds that the markets recovered quicker from the COVID-19 pandemic announcement than during the 2008 global financial crisis.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-12
      DOI: 10.1108/IJOEM-05-2020-0545
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Subsidiary banks in emerging markets: how strong is the coordination on a
           group-wide basis'

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      Authors: Małgorzata Iwanicz-Drozdowska, Bartosz Witkowski
      Abstract: The parent-subsidiary nexus has been explored since the mid-1990s, but the extent to which subsidiaries resemble their parents remains unclear. Therefore, this study examines the performance drivers for subsidiary banks in emerging markets and their parents to determine the similarities between these groups. The findings could help identify key financial performance measures that should be included in global strategies for multinational banks operating in emerging markets. The study uses data on subsidiaries from 32 countries, including 20 European transitioning countries and 49 parent companies operating internationally from 1996 to 2015. It considers several models that distinguish between units using individual bank effects and the stochastic structure. In a robustness analysis, EU- and non-EU-based institutions are distinguished and long-term historical links between parents' and subsidiaries' countries are considered. Cost control, capital adequacy and asset quality policies have similar importance for parent banks and subsidiaries and are strictly coordinated, whereas the remaining policies allow more flexibility. Subsidiaries in the EU and in countries that were politically and/or militarily influenced by parent countries do not “fall far from the tree”, which signals their strong group-wide integration and coordination. This study covers a limited number of emerging market countries due to the limited availability of long-term series data. Future studies should include more countries. This study identifies key financial measures used on a group-wide basis for performance management while accounting for long-term relations between host and home countries and the geopolitical characteristics of host countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-08
      DOI: 10.1108/IJOEM-05-2020-0487
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Spillover effects of the US monetary policy on the Indian trilemma

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      Authors: Harpreet Singh Grewal, Pushpa Trivedi
      Abstract: The purpose of this paper is to investigate the impact of the US unconventional monetary policy surprises on the management of trilemma in India. This paper uses the event study approach along with OLS and MANOVA to examine the impact. The results validate the existence of trilemma in India for the period from October 2008 to December 2017. The results also show that monetary policy independence still exists in India in the wake of greater spillover effects during the Federal Open Market Committee announcement days. The spillover effects on USD-INR exchange rates and capital flows are found to be statistically significant. The MANOVA results show that the trilemma in India is influenced by around 20% by the changes in the US monetary policy. The above approach of event study combined with MANOVA in this subject area has not been used before to the best of the authors’ knowledge. Further, there are only a few studies that exist on the spillover effects of the US monetary policy actions on the management of trilemma in India.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-08
      DOI: 10.1108/IJOEM-09-2020-1052
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Economic policy uncertainty and stock liquidity: the role of board
           networks in an emerging market

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      Authors: William Mbanyele
      Abstract: The purpose of this study is to examine the role of board networks in promoting stock liquidity when there is high economic policy uncertainty using a sample of Brazilian firms from 2002 to 2015. The study employs the ordinary least squares estimation method with standard errors clustered at the firm level for preliminary analysis, besides the study employs the two-step GMM dynamic estimation method to deal with potential endogeneity issues. First, the findings show that economic policy uncertainty disproportionately contributes to stock illiquidity and the impact is mainly prominent for high risky companies, small firms and firms in competitive industries. Second, the author provides evidence that board networks promote stock liquidity more via the information channel when economic policy uncertainty is very high. Given the adverse effects of economic policy uncertainty on stock liquidity, governments need to swiftly communicate and implement policies that affect the capital market to avoid the drying up of liquidity, which is exacerbated by communication or implementation lags. Also, there is a need for the regulators to continuously encourage the inclusion of independent directors in boards, which helps to increase board monitoring capacity and the firms' ability to respond to changes in the external environment. Unlike other studies that focus on the adverse effects of economic policy uncertainty on firm outcomes, the novel contribution is that the author uncovers the role of board networks in mitigating the negative effects of economic policy uncertainty on stock liquidity.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-06
      DOI: 10.1108/IJOEM-05-2020-0492
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Interface between context and theory: the application and development of
           Agency Theory in the Chinese context

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      Authors: Chong Chen, Daojuan Wang, Beibei Wang
      Abstract: This paper explores the contextual factors involved in the development and application of paradigmatic theories in general, and the application and development of Agency Theory in the Chinese context in particular. Referring to four templates for the design of conceptual papers as outlined by Jaakkola (2020), i.e. theory synthesis, theory adaptation, typology and model – we adopt an approach combining theory/literature synthesis and model establishment. Based on a thorough analysis and discussion of the literature on the topics of “context effect “, “interface between theory and context”, “special characteristics of Chinese context” and “invalid application of Agency Theory in a Chinese context”, we use Agency Theory as the lens to discuss the importance of context in applying and developing paradigmatic theory specifically. We start from the contextualization of Agency Theory and then explore approaches to theorizing the Chinese context by developing a conflict coefficient model. First, the application validity of paradigmatic theories is not sustainable; contextual factors are critical in applying and developing not only propositional but also paradigmatic theories, such as Agency Theory. Second, the Chinese context requires special attention when applying paradigmatic theories originating from Western countries. Third, the traditional application logic of Agency Theory is invalid in the Chinese context due to the coexistence of principal-agent conflicts (PAC) and principal–principal conflicts (PPC), and changeable dominance status of two conflicts according to the contexts. Based on these observations, a model of contextualization theory of PAC and PPC (i.e. conflict coefficient model) is developed from a dynamic perspective, which connects the separated situation states and allows the identification and measurement of the relative severity of the two types of agency conflicts. Practitioners can also use this model to identify and measure the relative strength of the two conflicts and determine the direction of control and improvement. Moreover, analysis of Chinese context and agency problems of Chinese firms also has great practical significance considering the increased importance of the Chinese market and the increasingly important role played by Chinese firms in the international economy in general, and in specific host countries in particular. First, in general, this study expands Whetten's (2009) study of the interface between theory and context. It specifically discusses approaches to considering contextual factors in the development and application of the relatively overlooked paradigmatic theories, using traditional and widely used Agency Theory as a lens. Our study suggests that typical Agency Theory, developed based on Western-centric assumptions, does not completely hold in the context of Chinese business practices because of different cultural, legal and governance realities. Second, it improves and extends the application of Agency Theory by proposing the new perspective that PAC and PPC coexist in specific contexts and positing that the relative severity of two types of agency conflicts depends on the context variables. Third, it puts forward a conflict coefficient model offering a more comprehensive, intuitive and quantifiable method for comparing the extent of the two conflicts in different scenarios, providing a reference for empirical studies of corporate governance.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-06
      DOI: 10.1108/IJOEM-06-2019-0433
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Leading entrepreneurial sustainability initiatives in emerging economies

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      Authors: Bindu Arya, Sven Horak, Sabine Bacouel-Jentjens, Kiran Ismail
      Abstract: This conceptual paper develops a theoretical framework to provide insights with respect to enhancing focus on entrepreneurial sustainability initiatives in the context of emerging economies. The unique idiosyncrasies of the institutional environment of emerging economies are identified along the concept of scripts. Sense-making and social identity theory are utilized to draw propositions along with the dimensions of the three stages of the sense-making process: enactment, selection and retention, in order to identify factors that are likely to motivate the next generation of business leaders in emerging economies to undertake greater levels of sustainability initiatives. When organizations face competing demands of meeting both social and financial goals, sense-making by next-generation leaders becomes relevant. Leaders with greater entrepreneurial orientation (EO) are more likely to take actions decoupled from local isomorphic pressures, such that they turn opportunities for sustainability into novel sustainable initiatives. This paper proposes a framework to provide insights and directions for future research with respect to enhancing an organizational focus on sustainability initiatives in the context of emerging economies.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-04-01
      DOI: 10.1108/IJOEM-08-2020-0951
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Economic policy uncertainty and stock liquidity: evidence from China

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      Authors: Liguang Zhang, Wanyi Chen, Ning Hu
      Abstract: The main purpose of this study is to examine whether economic policy uncertainty affects the stock liquidity. Furthermore, this study explores the influencing factors, transmission mechanism and solution path between economic policy uncertainty and the stock liquidity. A data set comprising 97,729 firm-quarter observations of Chinese firms with A-shares listed on the Shenzhen and Shanghai stock exchanges was selected, China's economic policy uncertainty was measured by using the China Economic Policy Uncertainty Index and the impact of economic policy uncertainty on the stock liquidity over the period 2004–2017 was empirically tested. The empirical analysis was based on ordinary least square regression model, and mediation and moderation effect models were used in the further analysis. The empirical results show that the higher the economic policy uncertainty, the lower the stock liquidity, which is more significant in firms with an opaque information environment, less investor attention and weak risk resistance ability. The authors argue that the transmission mechanism can be explained by the quality of information disclosure and investor sentiment. Moreover, the negative impact of economic policy uncertainty on the stock liquidity can be mitigated by increasing voluntary disclosures. This study enriches the literature on factors affecting the stock liquidity from the perspective of macroeconomic policy and provides a reference for policymakers to formulate relevant measures to improve the stock liquidity in emerging markets.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-30
      DOI: 10.1108/IJOEM-06-2020-0625
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Voluntary intellectual capital disclosure and earnings forecast in
           Indonesia–Malaysia–Thailand growth triangle's pharmaceuticals sector

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      Authors: Saarce Elsye Hatane, Jefferson Clarenzo Diandra, Josua Tarigan, Ferry Jie
      Abstract: This study examines the role of intellectual capital disclosure (ICD) on earnings forecasting by analysts in the pharmaceutical industry in emerging countries, particularly in Indonesia, Malaysia and Thailand. This study specifically examines the role of each component of the ICD on analysts' forecasts, which consists of errors of forecasted earnings, the standard deviation of forecasted earnings and analyst recommendations. Panel data analysis is conducted using a sample of 17 companies from pharmaceuticals industries in Indonesia, Malaysia, Thailand – Growth Triangle (IMT-GT), which are listed in the Indonesia Stock Exchange (IDX), Malaysia Stock Exchange (MYX) and Stock Exchange of Thailand (SET) from 2010 to 2017. Secondary data is obtained from Bloomberg and Annual report, where they are being analyzed to measure the ICD and gather the control variables. The results indicate that the three components of ICD, namely human capital disclosure (HCD), structural capital disclosure (SCD) and relational capital disclosure (RCD), insignificantly influence average analysts' consensus recommendation and analysts' earnings forecast dispersion. However, the findings show a significant negative influence of relational capital disclosure (RCD) on analysts' earnings forecast error. In contrast, HCD and SCD have an insignificant impact. Transparency in disclosing activities related to external parties is essential for the pharmaceutical industry. It is found that relational capital disclosure is the only ICD indicator that can strengthen analysts' profit predictions. Transparency about company activities in maintaining customer satisfaction and activities related to strategic alliances with other organizations are two critical things that can accommodate the accuracy of earnings forecasting from analysts in pharmaceutical companies. This study contributes to ICD-related research by discussing the financial analyst's response to this voluntary disclosure in the pharmaceutical industry, particularly in Indonesia, Malaysia and Thailand. The selected observation period is seven years, starting one year after the global financial crisis. The results showed that the disclosure of IC is not an exciting thing for financial analysts. In forecasting current earnings, financial analysts are more interested in errors than the previous year's estimates.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-26
      DOI: 10.1108/IJOEM-01-2020-0028
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The exports–exchange rate volatility nexus in Pakistan: do financial
           constraints and financial development matter'

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      Authors: Abdul Rashid, Ataullah Muneeb, Maria Karim
      Abstract: This paper first examines how changes in the real effective exchange rate and its volatility affect the exporting activities of firms. Next, it investigates whether exchange rate volatility (EXRV) affects the export behavior of financially constrained and unconstrained firms differently. Finally, it examines the role of financial development in mitigating the effects of EXRV and financial constraints on firms' exports. The empirical analysis of the paper is based on a wide panel of Pakistani nonfinancial firms listed at the Pakistan Stock Exchange during the period 2001–2016. To mitigate the problem of endogeneity and to take into account the dynamic nature of the empirical model, the authors apply the robust two-step system-GMM estimator developed by Blundell and Bond (1998). To examine the role of credit constraints, firm-year observations are sorted as financially constrained and unconstrained based on the median value of three alternative measures: the liquidity ratio, the dividend payout ratio and the Whited and Wu (WW) index. The results reveal that an increase in the real effective exchange rate has a positive and significant impact on firms' exports. However, the results show that the EXRV is significantly and negatively related to exporting decisions, suggesting firms considerably decrease their exports during periods of increased unpredictable variations in exchange rates. The findings also suggest that compared to financially constrained firms, the adverse effect of EXRV on exports is weaker for financially unconstrained firms. This finding implies that firm-level financial constraints unfavorably impact exports by making exporting more sensitive to the EXRV. Finally, the findings indicate that financial development not only positively affects firms' exports but also plays a vital role in declining the adverse effects of EXRV on firm-level exports. Specifically, the results show that financial development decreases the negative impact of EXRV on exports for both financially constrained and unconstrained firms. However, the moderating role of financial sector development is higher for financially unconstrained firms. Notwithstanding that the authors present robust and strong empirical evidence of the effects of EXRV on exporting and on the role of both firm-level financial constraints and financial sector development in formulating these effects, there are some limitations of the study. The authors use a single proxy for measuring financial sector development. However, one may construct an index for the financial sector developed using principal component analysis (PCA) by considering different measures of financial development. The authors use three different measures of financial constraints. Nonetheless, more sophisticated techniques such as switching regression can be used to endogenously determine whether firms are financially constrained. Moreover, an examination of the asymmetric effects of EXRV on exporting across different industries would also be worthwhile. From a policy point of view, the results suggest that the development of the financial sector and the strategies to lessen credit constraints faced by firms will help in mitigating the adverse effects of the EXRV on the exporting behavior of firms in Pakistan. The findings also suggest that managers in financially constrained firms should apply appropriate hedging strategies to hedge exchange rate risks. Finally, the findings suggest that investors should take into consideration exchange rate dynamics and firms' financial constraints while investing in exporting firms' stocks. Since the findings suggest that financially constrained firms' exports are more exposed to EXRV, managers of such exporting firms are suggested to apply effective and suitable currency risk-minimizing hedging instruments for enhancing their exports. The government should also implement economic and financial policies in such a way that they should help in reducing volatilities of exchange rates and in turn, encouraging firms to export more. Definitely, any policy, at both government and firm level, favoring exporting and export-oriented growth will not only help in overcoming the problem of a persistent and wide trade deficit but also help society by providing more employment and investment opportunities. Recently, Pakistan has experienced significant declines in foreign reserves, persistent political unrest and enlarged trade deficits. All these have increased the uncertainty about the exchange rate. Therefore, it is valuable to know the EXRV effects on firms' exporting activities. Second, Pakistani firms face more financial constraints, and thus, the influence of financial constraints in formulating the volatility effects on exporting would be worth exploring. Finally, no research has yet taken place to scrutinize the role of financial development in mitigating the adverse effects of EXRV and financial constraints on exporting activities. This paper provides firsthand empirical evidence on the role of financial constraints and financial sector development in formulating the EXRV impacts on firm-level exports in Pakistan.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-25
      DOI: 10.1108/IJOEM-04-2020-0348
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Mergers and acquisitions in Morocco: reality and perspectives

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      Authors: Mohammed Ibrahimi, Jalal Eddine Liassini
      Abstract: The purpose of this article is to address certain gaps and contribute to enriching the literature on mergers and acquisitions (M&A) in Africa; describe the phenomenon taking into account the particularity of the country; address recommendations to public policies and investors and make this article a ground-breaking article on research into the phenomenon of the M&A market in North Africa. With description and an exploratory intention, the authors develop phenomenon driven research. As appropriate phenomenon driven research, the authors focus on characteristics of Moroccan M&A market. The authors use scientific investigation to provide descriptions and explanations of the phenomena in order to add a new perspective to the M&A literature in North African region. The authors work on the particularity of companies in Morocco, typology of M&A, geographic areas, socio-economic indicators, trade agreements, politics and culture. Understand that the phenomenon of domestic M&A is a phenomenon of big cities and knows the participation of small and medium enterprises. The political variable, the trade agreements and the socio-economic weight of the countries influence the cross-border M&A in to out. Sharing a border and common culture has no impact on cross-border M&A but the history of colonization has an impact. The scientific contribution is first an extension of the neoclassical theory on the initiation of M&A operations. Throughout these 29 years of history, the existence of external shocks such as regulations has influenced the activity of M&A operations. Privatization, partial opening of sectors to foreign investment tax incentives have contributed to the realization of M&A operations. This paper also has an economic and practical contribution, as it informs about the absence of M&A operation in the agriculture and agri-food sector in Sub-Saharan Africa. This region recognizes a food shortage that will increase by 70–100% between 2010 and 2050 with a strong population growth. The authors also note that regulations, royal directives, influence the activity and geographic choices of M&A. The political variable remains decisive for the cross-border M&A activity between Morocco and Algeria, but encourages acquisitions in countries in West and Central Africa. M&A research in Africa is poor and suffers from several shortcomings; these barriers push researchers to produce fewer papers on this phenomenon. Through data collection, description and explanation, the authors tried to produce a paper focusing on the M&A phenomenon in a country in North Africa. To the authors’ knowledge, no article has dealt with this phenomenon in this country which is known for its strong M&A activity.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-25
      DOI: 10.1108/IJOEM-06-2020-0701
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • A quantile regression approach to evaluate the relative impact of global
           and local factors on the MENA stock markets

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      Authors: Slah Bahloul, Nawel Ben Amor
      Abstract: This paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns across the different quantiles in order to determine their degree of international financial integration. The authors use both ordinary least squares and quantile regressions from January 2007 to January 2018. Quantile regression permits to know how the effects of explanatory variables vary across the different states of the market. The results of this paper indicate that the impact of local macroeconomic and global factors differs across the quantiles and markets. Generally, there are wide ranges in degree of international integration and most of MENA stock markets appear to be weakly integrated. This reveals that the portfolio diversification within the stock markets in this region is still beneficial. This paper is original for two reasons. First, it emphasizes, over a fairly long period, the impact of a large number of macroeconomic and global variables on the MENA stock market returns. Second, it examines if the relative effects of these factors on MENA stock returns vary or not across the market states and MENA countries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-24
      DOI: 10.1108/IJOEM-03-2020-0251
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Family control, agency conflicts, corporate cash holdings and firm value

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      Authors: Ruchi Moolchandani, Sujata Kar
      Abstract: This paper examines whether family control exerts any influence on corporate cash holdings in Indian listed firms. It also examines how this accumulated cash of family firms impacts firm value. The study uses dynamic panel data regression estimated using two-step system generalized method of moments (GMM) on S&P BSE 500 firms during 2009–2018 for testing the repercussions of family control on the cash levels of a firm. Further, fixed effects regression has been employed for the valuation analysis. Estimation results showed that family control negatively impacts cash holdings in Indian firms. Further, the cash accumulation by family firms adversely affects the market valuation of the firm. These findings signal a principal–principal (P-P) agency conflict in Indian family firms, i.e. friction between family owners and minority shareholders' interests. Minority shareholders fear that a part of the cash reserves will be used by family members for personal benefits. Thus, they discount cash reserves in family firms. The study adds to the determinants of corporate cash holdings in emerging markets. To the best of the authors’ knowledge, this is the first study from India investigating family control as a determinant of cash policy. It sheds light on the P-P agency conflict in Indian family firms. P-P agency conflict is less researched in cash holdings literature as opposed to the principal–agent managerial disputes. Also, the study uses a more comprehensive definition of family control rather than just considering the ownership as used in prior cash holding research.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-24
      DOI: 10.1108/IJOEM-07-2020-0828
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The uncertainty–investment relationship: scrutinizing the role of
           firm size

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      Authors: Abdul Rashid, Assad Naim Nasimi, Rashid Naim Nasimi
      Abstract: The objective of this paper is threefold. First, it aims to empirically study whether firm-specific/idiosyncratic uncertainty, macroeconomic/aggregate uncertainty and political uncertainty have an adverse influence on firms' investment decisions in Pakistan. After establishing this, it scrutinizes whether the uncertainty effects on investment are different for firms of different sizes. Finally, it investigates whether any heterogeneity exists in the uncertainty impacts across different industries. The empirical analysis is based on an unbalanced panel data of 468 nonfinancial firms listed at the Pakistan Stock Exchange (PSX) during the period 2000–2018. Departing from the literature, the paper builds a time-varying composite volatility/uncertainty index based on the principal component analysis (PCA) by utilizing the constructed volatility series for sales, cash flows and return on assets to gauge firm-specific uncertainty for each firm included in the analysis. Likewise, the paper develops a PCA-based composite index for macroeconomic uncertainty by using the conditional variance series of consumer price index (CPI), industrial production index (IPI), the interest rate and the exchange rate obtained by estimating the (generalized) autoregressive conditional heteroscedastic, (G)ARCH, models. Finally, political uncertainty is measured by political risk components maintained by the Political Risk Services Group. The empirical framework of the paper augments the standard investment equation by incorporating all three types of uncertainty. Firms are grouped into small, medium and large categories based on firms' total assets and the size indicators are generated. Next, the indicators are multiplied by each uncertainty measure to quantify the differential effects of uncertainty across firm size. Firms are also differentiated by sectors to explore the sector-based asymmetries in the uncertainty effects. The “robust two-step system generalized method of moments (2SYS GMM) (dynamic panel data) estimator” is applied to estimate the empirical models. The results provide robust and strong evidence of the detrimental influence of all three types of uncertainty on investment. Yet, it is observed that the strength of the influence considerably varies across uncertainty types. In particular, compared to firm-specific uncertainty, both macroeconomic and political uncertainties have more unfavorable effects. The analysis also reveals that the effects of all three types of uncertainty are quite different at small, medium and large firms. Specifically, it is observed that although the investment of all firms is influenced adversely by magnified uncertainty, the adverse effects of all three kinds of uncertainty are quite stronger at small firms than medium and large firms. These findings support the phenomenon of size-based asymmetries in the effects of uncertainty on investment. The results also provide evidence that either type of uncertainty quite differently affects the investment policy of firms in different sectors. The findings help different stakeholders to know how different types of uncertainty differently affect corporate firms' investments. Further, they suggest that firm size has a vital role in ascertaining the adverse effects of uncertainty on investment. The paper identifies to which type of uncertainty investors and policymakers should care more about and to which types of firms and industries they should concern more during volatile times. Firms should have more fixed assets and expand their size to mitigate the detrimental effects on investment of internal and external uncertainties. The government should enhance the political stability to induce firms for a higher level of investment, which, in turn, will result in higher growth of the economy. The originality of the paper is credited to four aspects. First, unlike most previous studies that have utilized a single volatility measure, this paper constructs composite uncertainty indices based on the weights determined by the PCA. Second, it examines the effect of political uncertainty over and above the effects of idiosyncratic and aggregate (macroeconomic uncertainty) for an emerging economy. Third, and most important, it provides first-hand empirical evidence on the role of firm size in establishing the asymmetric effects of uncertainty on investment. Finally, it provides evidence on the industry-based heterogeneity in the uncertainty effects.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-24
      DOI: 10.1108/IJOEM-09-2019-0698
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The influence of board characteristics on environmental performance:
           evidence from East Asian manufacturing industries

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      Authors: Linh-TX Nguyen, Cuong-Le Thanh
      Abstract: The purpose of this study is to examine the influence of board characteristics on environmental performance in manufacturing firms of the emerging East Asian markets. The authors adopt a triple perspective of environmental performance that focusses on three major environmental areas including resource reduction, emission reduction and product innovation. The authors consider three main board characteristics, namely, board size, board independence and board leadership structure, and investigate their impacts on a multidimensional construct of environmental performance. Specifically, both linear and quadratic functions are applied to address a possibility of the non-linear relationship between board size and environmental performance. The authors use fixed-effects estimations on a sample of manufacturing firms in the emerging East Asian countries between 2011 and 2016. The study explores an inverse U-shaped relationship between board size and environmental performance. The authors also reveal that manufacturing firms are more likely to have better environmental performance when the proportion of independent directors on board increases. However, the separation of CEO and board chair roles has no impact on environmental performance. The findings have important implications by identifying the role of a board of directors in implementing environmental protection strategies and by providing a foundation for corporate efforts to enhance sustainable development. The study provides complete understanding of environmental performance as a multidimensional construct and sheds light on the influence of board characteristics, especially the inverse U-shaped influence of board size, on environmental performance in the East Asian manufacturing industries.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-23
      DOI: 10.1108/IJOEM-07-2020-0744
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The rise of emerging Indian multinationals: strategic learning for EMNC
           foreign market entry and internationalization

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      Authors: Nitya P. Singh
      Abstract: The academic literature on emerging market multinational corporations (EMNCs) has classified several strategic options that EMNCs can adopt as part of their internationalization process. Although this research stream does include examples of Indian companies, it has not adequately identified specific strategic practices followed by them as part of their internationalization process. Therefore, this article aims to identify specific firm competencies, home country advantages and strategic practices that Indian EMNCs adopt to achieve foreign market entry and internationalization. The article adopts a multiple case study methodology supported by unstructured interviews to answer the research question. Using a combination of in-depth interviews and secondary data related to the case study in question, strategic practices of three Indian companies operating in different industry segments are identified and evaluated. The results highlight that as part of their internationalization process, EMNCs from India adopt a combination of strategic practices that include strategic alliances, acquisitions, entry into targeted geographic markets, localized and innovative product offerings and niche market focus. This mix of strategic practices, in combination with high levels of corporate parenting, plays an important role in the ability of Indian EMNCs to internationalize successfully. This study contributes to the international business field by developing a better understanding of the internationalization process followed by emerging market multinational firms. In addition, as the article adopts a case study approach, specific business strategies adopted by Indian firms as part of their internationalization process are identified. The study, therefore, provides a strategic roadmap for firms from emerging countries on how to internationalize successfully.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-19
      DOI: 10.1108/IJOEM-07-2020-0763
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The perception of COVID-19 and avoidance behavior in Turkey: the role of
           income level, gender and education

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      Authors: Amir A. Abdulmuhsin, Bekir Değirmenci, İbrahim Halil Efendi̇oğlu, Yakup Durmaz
      Abstract: This study aims to reveal both the effect of the perception of COVID-19 on avoidance behaviors and the mediating role of the perception of personal control in this relationship. COVID-19 emerged in December 2019 and since then, it has spread globally in a short period and has affected people socially, economically and culturally. The data for the research was collected from 418 participants during COVID-19, through online questionnaires. The obtained data were analyzed through AMOS and SPSS software using structural equation modeling. The research results show that some perceptions of COVID-19 affect avoidance behavior and that personal control has a mediating role. It has also been found that gender plays a moderating role in the relationship between COVID-19 and avoidance behavior. It has been found that women are especially more sensitive compared to men in perceiving COVID-19. This study also found that perception of COVID-19 changes depending on income. After the pandemic is over, people will get in contact with each other less than before, and trade will change accordingly. People will avoid shopping in crowded places, and consumer behaviors will undergo different changes. All of these results considered, it is expected that avoidance behavior will cause some permanent behavioral changes in consumers. The study answers the critical question about the effect of the perception of COVID-19 on avoidance behavior. Furthermore, the role of income level, gender and education in this relationship will be highlighted.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-19
      DOI: 10.1108/IJOEM-11-2020-1308
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The asymmetric impact of interest and exchange rate on the stock market
           index: evidence from MENA region

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      Authors: Faten Moussa, Ezzeddine Delhoumi
      Abstract: Several theoretical and empirical studies have shown the significant effects of economic and environmental factors on a large number of financial indicators. In this paper the authors are going to study whether the main stock market index, is impacted by the variations of the exchange rate and the interest rates. This paper studies the response of the index market return to fluctuations in the interest rate and the exchange rate in five countries from the MENA region (Tunisia, Morocco, Egypt, Turkey and Jordan). To investigate whether this impact exists, the authors used the non-linear autoregressive distributed lag (NARDL) model with daily data from June 1998 to June 2018. The application of the non-linear ARDL model confirms the presence of cointegration between return index, interest rate and exchange rate. The results show that the asymmetry hypothesis is only valid for the short run which suggests that the market index is sensitive to the variation in the interest rate and exchange rate. This means that these macroeconomic factors play an important role in the MENA region stock markets. The findings confirm that the index returns in the MENA region stock markets are related to macroeconomic fundamentals such as the exchange rate and the real interest rate. The reaction of some indices is sensitive to whether the shocks are positive or negative. This finding may help investors to choose their strategies starting from these changes. Accordingly, policy makers must pay attention to the development progress of stock market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-16
      DOI: 10.1108/IJOEM-01-2020-0089
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Postacquisition asset redeployment and marketing adaptation: a consumer
           perspective

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      Authors: Cher-Min Fong, Hsing-Hua Stella Chang
      Abstract: This research examines consumer assessments of brand value derived from the redeployment of brand-related assets following a crossborder acquisition (CBA). The current study synthesizes research on international marketing standardization/adaptation to the context of crossborder horizontal acquisitions as the market entry strategy to investigate consumer evaluations of the postacquisition choice of brand name and brand positioning. A pretest and two studies were conducted in Taiwan to empirically examine effects from the theory-driven model of product legitimacy (PL) on an entity's postacquisition brand value, as well as any moderating effects of consumer localism. Postacquisition brands were evaluated more positively when positioned in a manner that was in accordance with perceived PL. Consumer localism as another contingency factor reflected consumers' favorable attitude toward marketing adaptation following CBAs. This article is a pioneering work to draw on the consumer perspective to investigate asset redeployments between the acquirer and target following a crossborder horizontal acquisition. Specifically, this research introduces PL as a contingency factor to examine consumers' evaluation of brand value, which is derived from the redeployment of brand name and brand positioning in the context of a developed-country firm's acquisition of an advanced emerging-market firm for entry into the market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-16
      DOI: 10.1108/IJOEM-05-2020-0558
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Institutional distance as a determinant of outward FDI from India

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      Authors: Rishika Nayyar, Jaydeep Mukherjee, Sumati Varma
      Abstract: The purpose of the paper is to examine the role of institutional distance as a determinant of outward foreign direct investment (OFDI) from India. The study combines a nuanced view of institutional distance, with traditional location factors to analyze Indian OFDI flows to developed and emerging economies (EEs) during the period 2009 to 2017. The paper employs fixed effects panel regression model on an unbalanced panel data set. The findings suggest that India's OFDI is undeterred by the isomorphic pressures caused by regulatory and normative institutional distance, but cognitive institutional distance acts as a deterrent in developed economies. Indian MNEs engage in institutional arbitrage as they simultaneously engage in strategies of institutional escapism and institutional exploitation. The study also finds that emerging economies have emerged as an important destination for strategic asset seeking FDI, in addition to developed economies. The findings of the study present important implications for policymakers and corporate managers. For policymakers, the study points toward the need for improving the general business environment at home to prevent escapist OFDI and trade enhancement as a tool to overcome cognitive barriers and behavioristic stereotypes. For corporate managers, the study's findings underline the importance of adopting different strategies for dealing with different isomorphic pressures in developed and emerging economies. The study adds value to the sparse literature using the IBV in the emerging markets context, to supplement and enrich existing theoretical frameworks. It is a pioneering study in its use of institutional distance as an explanatory factor for Indian OFDI and provides evidence of institutional arbitrage.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-16
      DOI: 10.1108/IJOEM-12-2019-1031
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Development of research agenda on demonetization based on bibliometric
           visualization

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      Authors: Deepa Jain, Manoj Kumar Dash, Keshav Singh Thakur
      Abstract: The purpose of present study is to identify influential aspects of published literature, research streams and future research questions to set forth future research agenda based on comprehensive literature review using bibliometric and content analysis. The study analyzed 285 documents from the international Scopus database using bibliometric analysis and content analysis. VOSviewer software is used for bibliometric analysis. The study identified influential aspects of published literature; identified five significant research streams: (1) Demonetization and financial system, (2) Demonetization and financial technology, (3) Demonetization and financial market, (4) Demonetization and digital payment system and (5) Demonetization and governance and proposed 27 key future research questions to develop future research agenda. The present study makes significant contribution to the literature by providing a framework for future research. The framework provides opportunities to future researchers to explore the web of relations among five identified research streams as future research agenda. The present work is unique in its way of contribution, as to the best of researchers' knowledge no work was witnessed in published literature to cover demonetization in a detailed and comprehensive manner. The present study fills this gap by conducting bibliometric analysis and content analysis. The study proposed conceptual framework for demonetization characterization to understand the demonetization literature well; and also proposed framework for future researcher to be explored further.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-12
      DOI: 10.1108/IJOEM-12-2019-1085
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Has the dependence structure of the BRICS exchange rates changed after the
           financial crisis' Evidence from R-Vine copula model

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      Authors: Zhuoqun Zhang, Tao Zhang
      Abstract: The authors examine the dependence structure of the BRICS exchange rates. The authors construct a regular vine copula model to study the co-movements of exchange rates in BRICS controlling the influences from the SDR currencies and the oil prices. The main findings show that, after the financial crisis, RMB pursued a more balanced strategy shifting from USD-centered to USD-EUR dependency and the oil prices become more dependent on RUB than USD, which could weaken the dollar hegemony. From robustness tests, we find that the inclusion of RMB in SDR has certain but limited impacts on the dependence structure and the influence of the GBP weakened as well. The results have important implications for currency trade, policy design and the future of the BRICS. The contribution of this paper is twofold. First, we examine the interdependence structure of the BRICS exchange rates controlling for the influence of SDR currencies and the oil prices with R-Vine copula model. Second, we compare the pre- and after-crisis structure and see if the financial crisis and the BRICS summits have changed the structure.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-11
      DOI: 10.1108/IJOEM-06-2020-0717
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The agribusiness sector as a regional export opportunity: evidence for the
           Vojvodina region

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      Authors: Bojan Matkovski, Stanislav Zekić, Žana Jurjević, Danilo Đokić
      Abstract: The purpose of this paper is to determine if the agribusiness sector can be an initiator of export on the emerging markets. For this aim, we analyzed export opportunities for the region of Vojvodina, the region in Serbia with the most potential for agribusiness. This paper uses the Comparative Advantage Index and the Index of Intra-industrial Integration to determine the region's level of comparative advantage and the market's level of integration on the main emerging markets. The results show that this region has the most competitive advantages in crop production – primarily in cereals and industrial plants – but the situation is not favorable for livestock production. Because of this, comparative advantage should be used as a factor for the growth of competitiveness in the sectors for which crop products are the raw material base. At the same time, agricultural policy measures should encourage more intensive agricultural production, which could create a better foundation for progress in the food industry. Data collected on foreign trade at the level of statistical regions is not always reliable. Also, regional and local characteristics are specific to each country, so the ability to generalize conclusions is limited. This paper provides a useful review of the agri-food sector's competitiveness and determines which agri-food segments have competitive advantages. It is essential for policymakers to identify what determinants improve or degrade the competitiveness of the region's agri-food sector. Since there are a limited number of studies analyzing trends of competitiveness for the region's agri-food sector, the paper will contribute to filling this gap. Furthermore, the framework is conceptually innovative in identifying the determinants that create export opportunities for the region on the international market.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-04
      DOI: 10.1108/IJOEM-05-2020-0560
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Twin deficits hypothesis in Bangladesh: an empirical investigation

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      Authors: Sima Rani Dey, Mohammad Tareque
      Abstract: This study attempts to examine the twin deficits hypothesis for Bangladesh. Along with the traditional twin deficits hypothesis associated with the current account and fiscal deficit, the paper also explores the causal relationship between the trade deficit and fiscal deficit. We start with the investigation of the conventional twin deficit hypothesis employing autoregressive distributed lag (ARDL) bounds testing approach in a multivariate framework. Due to the absence of cointegration between the budget deficit and trade deficit, the study adopts a multivariate vector autoregressive (VAR) model to analyze the nexus. The study supports the presence of the twin deficits hypothesis in Bangladesh, both in the short run and long run. Unidirectional causation running from the budget deficit to the current account deficit in the long run. The trade model also supports the twin deficit hypothesis, like the aforementioned current account model. Therefore, the sustainable fiscal deficit is the key to maintain a stable current account deficit and trade deficit in Bangladesh. The study incorporates the country risk indicators to address the governance issue while analyzing the models' deficit scenarios because good governance is an integral part of explaining the development outcome and failure of a country like Bangladesh.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-02
      DOI: 10.1108/IJOEM-06-2020-0628
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Forecasting developed and BRICS stock markets with cryptocurrencies and
           gold: generalized orthogonal generalized autoregressive conditional
           heteroskedasticity and generalized autoregressive score analysis

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      Authors: Ahmed Jeribi, Achraf Ghorbel
      Abstract: The purpose of this paper is threefold. First, it models and forecasts the risk of the five leading cryptocurrencies, stock market indices (developed and BRICS) and gold returns. Second, it conducts different backtesting procedures forecasts. Third, it focuses on the hedging potential of cryptocurrencies and gold. The authors used the generalized autoregressive score (GAS) models to model and forecast the risk of cryptocurrencies, stock market indices and gold returns. They conduct different backtesting procedures of the 1% and 5%-value-at-risk (VaR) forecasts. They also use the generalized orthogonal generalized autoregressive conditional heteroskedasticity (GO-GARCH) model to explore the hedging potential of cryptocurrencies by estimating the dynamic conditional correlation between cryptocurrencies and gold, on the one hand, and stock markets on the other hand. When conducting different backtesting procedures of VaR, our finding suggests that Bitcoin has the highest VaR among cryptocurrencies and Gold and the BRICS indices returns have lower VaR compared to the developed countries. Finally, we provide evidence that the risks among developed stock markets can be hedged by Bitcoin and Gold. Bitcoin can be considered as the new Gold for these economies. Unlike Bitcoin, Gold can be considered as a hedge for Chinese and Indian investors. However, Gold and Bitcoin can be considered as diversifier assets for the other BRICS economies while Dash and Monero are diversifier assets for developed stock markets. The first paper's empirical contribution lies in analyzing optimal forecast models for cryptocurrencies (other than Bitcoin) returns and risk. The second contribution consists of studying the hedging potential of five leading cryptocurrencies. To the best of our knowledge, no previous studies have investigated the role of cryptocurrencies for BRICS investors.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-02
      DOI: 10.1108/IJOEM-06-2020-0688
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Banks’ liquidity management dynamics: evidence from Indonesia

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      Authors: Moch. Doddy Ariefianto, Irwan Trinugroho, Evan Lau, Bruno S. Sergi
      Abstract: This study aims to cover an important yet largely under-explored topic: the dynamic process of bank liquidity management in a vast developing economy by considering pool of funds hypothesis, signaling hypothesis and risk management hypothesis. The authors apply the dynamic common correlated effect (DCCE) method with an error correction model format to a long panel datasets of 84 Indonesian banks from January 2003 to August 2019, resulting in 16,800 observations. The authors obtain convincing evidence of dynamic liquidity management with an error correction mechanism. The time needed to adjust to a liquidity shock ranges from 2.5 to 3.5 months. The empirical results strongly support the pool of funds and signaling hypotheses, whereas risk management motive appears to have secondary importance. The regulator should also encourage banks to diversify liquidity management to include interbank money market and off-balance-sheet instruments. The current condition shows that bank liquidity management is strongly correlated with intermediation dynamics and thus is contracyclical. Banks could end up with tight liquidity in a booming economy, which would pose a severe risk to their financial standing. To authors’ knowledge, this study is the first to analyze bank liquidity management behavior empirically using a panel error correction mechanism. Here, the authors also try to combine a practitioner perspective with a scientific one.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-02
      DOI: 10.1108/IJOEM-06-2020-0715
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Ownership structure and OFDI by EMNES: the moderating effects of
           international experience and migrant networks

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      Authors: Changjun Yi, Yun Zhan, Jipeng Zhang, Xiaoyang Zhao
      Abstract: This study investigates the effect of ownership structure – ownership concentration and firm ownership – on outward foreign direct investment (OFDI) by emerging market multinational enterprises (EMNEs), and further explores the moderating effects of international experience and migrant networks on this relationship. Data of Chinese MNEs listed on Shenzhen and Shanghai stock exchanges between 2005 and 2016 are used. The empirical analysis is based on the negative binomial regression model. The empirical results reveal a significant inverted-U relationship between ownership concentration and OFDI by EMNEs. State ownership is found to have a positive effect on OFDI by EMNEs. Both international experience and migrant networks strengthen the inverted-U relationship between ownership concentration and OFDI as well as the positive effect of state ownership on OFDI by EMNEs. EMNEs need to maintain a moderate ownership concentration when conducting OFDI, and they are supposed to make full use of their own international experience and focus on migrant networks of the host country. Policy-makers in emerging economies need to better create a fair business environment for enterprises. Combining agency theory and the resource-based view, this study integrates ownership structure, firm-level heterogeneous resources – international experience and country-level heterogeneous resources – migration networks into a framework to study OFDI by EMNEs, which expands the scope of research in international business.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-02
      DOI: 10.1108/IJOEM-07-2020-0807
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Are consumption patterns linked to life satisfaction' An exploratory
           study in Brazil

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      Authors: José Marcos Carvalho de Mesquita, Gregory J. Kivenzor, Natália Corradi Franco
      Abstract: The purpose of this study is to propose an integrated approach to diverse and convoluted types of consumption. The new theoretical framework represents composite types of tangible and intangible consumption contributing to consumer life satisfaction (LS) in EMs. A field study conducted in Brazil surveyed real-world consumers belonging to various social and income groups. Data reflecting LS derived from consumption were analyzed using PLS methodology. Empirical tests indicated that experiential-utilitarian, experiential-hedonic and material-utilitarian consumption types positively affect EM consumer LS. An interesting and somewhat surprising outcome is an insignificant effect of material-hedonic consumption. The strength of LS correlation with each type of consumption differs and partial effects also depend on household income of EM consumers. Although reasons exist to expect the general validity of the suggested theoretical framework across many markets, its scope of empirical testing needs to be expanded beyond a single emerging market, even so large as Brazil. The new taxonomy can help marketing practitioners better understand the main sources of LS stemming from each type of consumption to customize marketing mix and more effectively communicate to EM consumers. In spite of the scope limited to Brazil, this study shall help policy-makers and NGOs design public goods and services, thereby significantly increasing consumer LS and improve living conditions in EMs. A systemic approach contributes to the body of marketing theory by replacing the dichotomic classifications of consumer LS with a clear conceptualization of all types of consumption that are integrated into a holistic framework.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-03-01
      DOI: 10.1108/IJOEM-11-2019-0984
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Do political and business relations help emerging markets' SMEs in their
           national and international expansion' Evidence from Brazil and China

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      Authors: Gaston Fornes, Guillermo Cardoza, Maria Altamira
      Abstract: This study aims to understand whether business and political relations help emerging markets' SMEs to overcome the challenges posed by low institutionalization in their national and international expansion. It focuses on the role that these relations play in determining access to government funding and contracts and to market information and business-related knowledge. The data were collected from 828 SMEs in Brazil and China. The data analysis was developed in two stages: the first stage was based on multivariate regression analyses using the ratio of sales outside the companies' region of origin divided by total sales as a dependent variable and the survey's answers as independent variables; outward sales were taken at two different levels – national and international – to consider: (1) the different stages in the national and international expansion process, and (2) the fragmented nature of domestic markets in both Brazil and China. The second stage was based on a stepwise multiple regression as the relative importance of the variables was not known beforehand and the objective was to rank them according to the managers' perceptions. Informal institutions, in particular business and political relations, can help to reduce uncertainty and overcome some disadvantages associated with weak institutionalization. They do this by providing access to trusted distribution channels, improving the familiarity with different institutional environments and strengthening the management of supply chains and commercial strategies to serve markets outside their region. Also, SMEs in emerging markets getting access to private sources of funding, market knowledge and government contracts through business and political relations are in a better position to expand nationally and internationally. The research shows that the domestic environment, in particular one with low levels of institutionalization, impacts negatively the national and international expansion of SMEs and, more importantly, how firms can use business and political relations to overcome the obstacles posed by this environment. The findings also have implications for theory, practice and policymaking.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-26
      DOI: 10.1108/IJOEM-01-2020-0058
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Impact of family control on information technology investment and
           information technology adoption in India

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      Authors: Harvinder S. Mand, Gaganpreet Kaur, Amarjit Gill, Neil Mathur
      Abstract: This study tests the impact of family control on information technology (IT) investment and IT adoption in MSMEs in India. This study employs a survey research design. Micro, small, and medium enterprise (MSME) owners in India were surveyed to test the impact of family control on IT investment and IT adoption. Our empirical results show that family control — measured by family ownership, family member firm management, and/or family CEO duality — increases IT investment and IT adoption in India. Family ownership increases the chances of IT investment and IT adoption by 19.24% and 38.40%, respectively. Firm management by family members increases the chances of IT investment and IT adoption by 11.29% and 18.29%, respectively. CEO duality increases the chances of IT investment and IT adoption by 51.13% and 258%, respectively. Thus, CEO duality has a higher impact on IT investment and IT adoption than family ownership and firm management by family members. The empirical results may be generalized only to MSMEs similar to those surveyed in this study. Additionally, this study relied on the perceptions and judgments of MSME owners. This study contributes to the literature on the impact of family control on IT investment and IT adoption in the developing economics. This study can help scholars to develop further studies in the family control area. Our findings may help MSME owners to increase family control to survive and prosper into the future. Additionally, MSME management consultants may find the empirical results useful to provide consulting services.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-23
      DOI: 10.1108/IJOEM-08-2020-0959
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Are top executives important for earning management and firm risk'
           Empirical evidence from selected Chinese firms

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      Authors: Khurram Iftikhar Bhatti, Muhammad Iftikhar Ul Husnain, Abubakr Saeed, Iram Naz, Syed Danial Hashmi
      Abstract: This study examines the role of the observable and unobservable characteristics of top management on earning management and firm risk in China. The authors used manager-firm matched panel for 104 non-financial firms listed on the Shanghai Stock Exchange between 2010 and 2018. The authors also trace the persistence of managerial financial styles and their active role across two different firms between which managers switched during the sample period. The results show that managers' financial styles indeed influence earning management and firm risk and that this influence differs across different managers. These findings are robust when tested for the persistence and active role of managers. Furthermore, individual characteristics such as age, gender, qualification and experience influence managers' financial styles. Given their findings, the authors propose that financial analysts and potential investors should not only depend on quantitative data but also consider the individual characteristics of managers when evaluating firms. The findings of this study carry serious implications for managers, policymakers and potential investors. The findings assist the external auditors in measuring the risk of material misstatement, the various regulatory bodies to assess the quality of financial reporting and the users of financial statements to evaluate the earnings and make further investment decisions considering not only the quantitative data but also the individual characteristics of top managers. The current study examines the observable and unobservable characteristics of top management on firm risk and earnings management in Chinese context.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-23
      DOI: 10.1108/IJOEM-09-2019-0734
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Predicting consumers' digital piracy behaviour: does past experience
           matter'

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      Authors: Kian Yeik Koay, Fandy Tjiptono, Manjit Singh Sandhu
      Abstract: Despite increasing anti-piracy legislation, digital piracy remains widespread and presents a huge barrier to the growth of creative industries globally. Hence, this study aims to examine predictors of digital piracy through the lens of an extended version of the theory of planned behaviour (TPB). Furthermore, the authors also examine the moderating effects of past experience (non-experienced versus experienced) on the relationships between the common four TPB dimensions on intention to engage in digital piracy. Using a survey method, the authors collected 832 student respondents in Semarang, Indonesia. Partial least squares structural equation modelling (PLS-SEM) was performed to analyse the proposed hypotheses. The results showed that the influence of attitude, subjective norm and moral obligation on intention is significantly different between experienced and non-experienced consumers. The positive influence of attitude on intention to engage in digital piracy is stronger for non-experienced than experienced consumers. The influence of subjective norm on intention is significant and positive for non-experienced consumers but is not significant for experienced consumers. The influence of moral obligation on intention is significant and positive for non-experienced consumers but turns negative and significant for experienced consumers. This research contributed to the body of knowledge by investigating the role of past experience as a moderator in the TPB model which renders the authors to have a better understanding of the differences in the thinking process between experienced and non-experienced consumers.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-23
      DOI: 10.1108/IJOEM-09-2020-1067
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Systemic risk in ASEAN-6: a new empirical investigation

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      Authors: Trung Hai Le
      Abstract: The authors provide a comprehensive study on systemic risk of the banking sectors in the ASEAN-6 countries. In particular, they investigate the systemic risk dynamics and determinants of 49 listed banks in the region over the 2000–2018 period. The authors employ the market-based SRISK measure of Brownlees and Engle (2017) to investigate the systemic risk of the ASEAN-6's banking sectors. The authors find that the regional systemic risk fluctuates significantly and currently at par or higher level than that of the recent global financial crisis. Systemic risk is generally associated with banks that have bigger size, more traditional business models, lower quality in their loan portfolios, less profitable and with lower market-to-book values. However, these relationships vary significantly between ASEAN countries. The research focuses on the systemic risk of ASEAN-6 countries. Therefore, the research results may lack generalizability to other countries. The authors’ empirical evidence advocates the use of capital surcharges on the systemically important financial institutions. Although the region has been pushing to higher financial integration in recent years, the authors encourage the regional regulators to account for the idiosyncratic characteristics of their banking sectors in designing effective macroprudential policy to contain systemic risk. This paper provides the first study on the systemic risk of the ASEAN-6 region. The empirical evidence on the drivers of systemic risk would be of interest to the regional regulators.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-22
      DOI: 10.1108/IJOEM-05-2020-0567
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • The impact of oil price shocks on Turkish sovereign yield curve

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      Authors: Oğuzhan Çepni, Selçuk Gül, Muhammed Hasan Yılmaz, Brian Lucey
      Abstract: This paper aims to investigate the impact of oil price shocks on the Turkish sovereign yield curve factors. To extract the latent factors (level, slope and curvature) of the Turkish sovereign yield curve, we estimate conventional Nelson and Siegel (1987) model with nonlinear least squares. Then, we decompose oil price shocks into supply, demand and risk shocks using structural VAR (structural VAR) models. After this separation, we apply Engle (2002) dynamic conditional correlation GARCH (DCC-GARCH (1,1)) method to investigate time-varying co-movements between yield curve factors and oil price shocks. Finally, using the LP (local projections) proposed by Jorda (2005), we estimate the impulse-response functions to examine the impact of different oil price shocks on yield curve factors. Our results demonstrate that the various oil price shocks influence the yield curve factors quite differently. A supply shock leads to a statistically significant increase in the level factor. This result shows that elevated oil prices due to supply disruptions are interpreted as a signal of a surge in inflation expectations since the cost channel prevails. Besides, unanticipated demand shocks have a positive impact on the slope factor as a result of the central bank policy response for offsetting the elevated inflation expectations. Finally, a risk shock is associated with a decrease in the curvature factor indicating that risk shocks influence the medium-term bonds due to the deflationary pressure resulting from depressed economic conditions. Our results provide new insights to understand the driving forces of yield curve movements induced by various oil shocks to formulate appropriate policy responses. The study contributes to the literature by two main dimensions. First, the recent oil shock identification scheme of Ready (2018) is modified using the “geopolitical oil price risk index” to capture the changes in the risk perceptions of oil markets driven by geopolitical tensions such as terrorism and conflicts and sanctions. The modified identification scheme attributes more power to demand shocks in explaining the variation of the oil price compared to that of the baseline scheme. Second, it provides recent evidence that distinguishes the impact of oil demand and supply shocks on Turkey's yield curve.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-22
      DOI: 10.1108/IJOEM-06-2020-0681
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Adaptive calendar effects and volume of extra returns in the
           cryptocurrency market

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      Authors: Sashikanta Khuntia, J.K. Pattanayak
      Abstract: This study broadly attempts to explore adaptive or dynamics patterns of calendar effects existed in the cryptocurrency market as per the adaptive market hypothesis (AMH) framework. Another agendum of this study is to investigate the quantum of extra returns which may result from the presence of calendar effects. The present study considers both parametric and non-parametric approaches to verify calendar effects empirically. Specifically, this study has implemented Generalised Autoregressive Conditional Heteroscedasticity (1, 1) and Kruskal–Wallis tests in the rolling window approach to reveal adaptive patterns of calendar effects. Additionally, the present study has used the implied trading strategy to evaluate the volume of excess returns resulted from calendar effects than buy-and-hold (BH) strategy. The overall results of the current study exhibit that calendar effect in the cryptocurrency market is dynamic rather than static which indicates the calendar effect is a time-varying phenomenon. Moreover, this study also confirmed that ITS is not suitable to obtain extra returns despite the existence of calendar effects. The present study has covered some broad aspects of calendar anomalies in the cryptocurrency market, keeping aside certain other limitations which need to be addressed in the following dimensions. Future studies may aim at addressing issues like, Turn-of-the-Year effect, Halloween effect, weather effect, and Month-of-the-Year effects, and try to explore the reasons of presence of dynamic patterns of calendar effects. The significant implication of this study is that it alerts investors about market return predictability due to calendar patterns or effects in different periods. It also suggests the period in which the ITS can perform better than the BH strategy. It is the first study in the cryptocurrency literature which has adopted the AMH framework to verify adaptive calendar effects or anomalies. Furthermore, this study, instead of a mere examination of the presence of calendar effects, has evaluated the potential of calendar effects to produce extra returns through trading strategies.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-19
      DOI: 10.1108/IJOEM-06-2020-0682
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Outward FDI and productivity promotion of exporting firms: firm-level
           evidence from China

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      Authors: Song Zhang, Haoze Li, Chunlai Chen
      Abstract: The purpose of this paper is to estimate the impact of China's outward foreign direct investment (OFDI) conducted by exporting firms on their productivity. This study uses two Chinese firm-level datasets. To reduce the bias when merging the two datasets, this study uses a comprehensive link approach to obtain more observations. The propensity score matching method is employed together with the difference-in-difference and difference-in-difference-in-difference approaches to identify the casual effects. The study finds that exporting firms become more productive through learning effect via OFDI, and the positive impact of OFDI on total factor productivity materializes very quickly but subject to diminishing return. The study also finds that state-owned enterprises gain less learning effect via OFDI than private-owned enterprises, and firms with higher export intensity or larger size tend to gain less improvement in productivity via OFDI. This is one of the first studies to investigate empirically the impact of OFDI conducted by exporting firms on their productivity. In particular, the study analyzes three types of firm heterogeneous factors, namely, ownership, export intensity and size, in affecting exporting firms' learning effect via OFDI.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-19
      DOI: 10.1108/IJOEM-07-2020-0795
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Foreign ownership and cost of debt financing: evidence from an emerging
           market

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      Authors: Quoc Trung Tran
      Abstract: This paper aims to investigate the effect of foreign ownership on cost of debt financing in an emerging stock market. Cost of debt is a function of foreign ownership. Control variables include state ownership, firm profitability, financial leverage, Tobin's Q, asset growth, firm size and asset tangibility. The research sample includes 3,263 observations from 405 firms listed in Vietnamese stock market during the period 2009–2017. The authors find that foreign ownership negatively affects cost of debt and this effect is stronger in non-state-owned enterprises and financially constrained firms. Prior research shows that ownership structure is a key determinant of debt financing cost in many developed markets. This paper contributes to the literature of emerging market finance by showing that foreign ownership reduces cost of debt financing.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-19
      DOI: 10.1108/IJOEM-09-2019-0750
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • On the dynamics of exchange rate pass-through: asymmetric evidence from
           India

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      Authors: Javed Ahmad Bhat, Sajad Ahmad Bhat
      Abstract: This paper attempts to examine the transmission of exchange rate changes into the domestic prices together with other important determinants of later, in case of a developing country, namely, India. In an open economy Philips curve framework, a symmetric model developed by Pesaran et al. (2001) together with a complete asymmetric model developed by Shin et al. (2014) has been applied to assess the transmission of exchange rate changes into the domestic prices (inflation) of India. In addition, non-linear cumulative dynamic multipliers are used to portray the route between disequilibrium position of short run and new long-run equilibrium of the system. The multipliers highlight the asymmetric adjustment paths and/or duration of disequilibrium and therefore add valuable information to the long and short-run asymmetry. In symmetric framework, exchange rate pass-through is reported to be incomplete and short-run pass through is found to be lower than the long-run pass through. A contractionary monetary policy stance is observed to decrease inflation in the long-run only and in the short-run, a case for price puzzle is observed, although the coefficient is statistically insignificant. Similarly, the impact of output growth is positive in both the short and long-run and both the coefficients are statically significant. Finally, the oil price inflation is also found to escalate the domestic inflationary pressures in both the short and long run, although the pass-through transmission is lower in the short-run than in the long-run. In case of an asymmetric setting, evidence in favour of directional asymmetry is reported whereby long-run impact of currency appreciation is found to be higher than depreciation. Similarly, a contractionary monetary policy action lowers the inflation, the easy one increases it; however, the impact of both the positive and negative changes in interest rate is found to be symmetric. An increase in GR is found to increase the inflation by a relatively appreciable magnitude than is observed when the fall in GR is reported. The possible reason for this asymmetric response of inflation may be explained in terms of asymmetric behaviour of demand conditions during economic upturns and downturns and downward inflexibility of prices. Finally, the transmission of oil price inflation to domestic inflation is also found to be asymmetric. An increase in oil price inflation leads to an increase in domestic inflation by a higher magnitude. whereas a decrease in it lowers inflation only marginally. From a policy perspective, it is certainly important for the central banks to monitor the exchange rate changes so as to design the appropriate policy actions to resist any inflationary pressures resulting from the external sector. More importantly, a gauge on the factors that lead to destabilizing exchange rate movements or large currency price fluctuations is highly warranted. The results also highlight the relevance of proper domestic demand management and lowering dependence on oil imports to avoid the unnecessary inflation pressures in the economy. While some studies have explored the possibilities of asymmetric interactions in the case of India, however, these studies have considered only the partial asymmetric model specifications and have not included a well-established theoretical base to include the other potential determinants of inflation as well. In this regard, the authors applied a complete asymmetric model specification developed by Shin et al. (2014) in an open economy Philips curve framework to assess the transmission of exchange rate changes into the domestic prices (inflation) of India. This paper will enrich the existing literature from a viewpoint of a comprehensive analysis of exchange rate pass-through by taking note of potential asymmetries coupled with other important determinants of inflation.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-18
      DOI: 10.1108/IJOEM-12-2019-1071
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Housing market networks in China's major cities: a conditional causality
           approach

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      Authors: Lu Yang, Nannan Yuan, Shichao Hu
      Abstract: To explore the state of this conditional Granger causality when other cities are not factors, we investigate housing market networks in China's major cities by using a combination of conditional Granger causality and network analysis. Although housing market networks have been well discussed for different countries, the question of housing market networks in China's major cities based on the conditional causality perspective has yet to be answered. We discover that second-tier cities are more influential than first-tier cities. Although the connectivity of the primary housing market is more complex than the diversified connectivity observed in the secondary housing market, both markets are scale-free networks that exhibit high stability. Moreover, we reveal that geographic conditions and economic development jointly determine the housing market's modular hierarchical structure. Our results provide meaningful information for both Chinese policymakers and investors. By excluding the influence of other cities, our conditional Granger causality identifies the true casual relation between cities' housing markets. Moreover, it is the first paper to consider the primary housing market and secondary housing market separately. Specifically, Chinese prefer new house rather than second-hand house from both speculative and self-housing. Generally speaking, the new house price is lower than the second-hand house price since the new house is off-plan property. Therefore, understanding the difference between primary and secondary housing markets will provide useful information for both policymakers and speculators.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-17
      DOI: 10.1108/IJOEM-05-2020-0573
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Recognizing nonmonotonicity of exogenous determinants in a stochastic
           profit efficiency framework: have banks overinvested in IT capital'

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      Authors: Navendu Prakash, Shveta Singh, Seema Sharma
      Abstract: The purpose of this study is to explore and evaluate potential nonmonotonicity in the determinants of profit efficiency, specifically IT and R&D investments in the Indian commercial banking sector. The study employs an alternative stochastic profit efficiency framework and introduces nonmonotonic effects by parameterizing the location and scale parameters of the inefficiency component on an unbalanced panel data set of 72 commercial banks in the 2008–2019 period. Marginal effects across quartiles are calculated using a bias-corrected and accelerated bootstrap procedure of 500 simulations. The study disaggregates across ownership and size for gauging the impact of structure on the associations between determinants of profit efficiency. The study partially rejects the productivity paradox as it discovers a negative association of IT and R&D with profit inefficiency. However, the observed nonmonotonicity of IT is of significance for bank managers, as the study concludes that overinvestment in IT is detrimental to a bank’s profit-maximizing interests. Further, bank size, loan default and credit risk depict a nonmonotonic relationship across the sample with large banks, high NPAs and high credit risk associated with reducing profit efficiency. In addition, higher margins and greater diversification are related positively to efficiency, and banks with cost-heavy structures or having high liquidity risk associated negatively with efficiency. To the best knowledge of the authors, the study is perhaps the first to acknowledge and incorporate nonmonotonic associations of IT investments amidst other exogenous determinants under a stochastic profit efficiency framework.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-16
      DOI: 10.1108/IJOEM-06-2020-0665
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Ownership structure and corporate financial performance in an emerging
           market: a dynamic panel data analysis

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      Authors: Shahab Ud Din, Muhammad Arshad Khan, Majid Jamal Khan, Muhammad Yar Khan
      Abstract: This study examines the impact of ownership structure on firm financial performance, for 146 manufacturing firms listed at the Pakistan Stock Exchange (PSX) for the period 2003–2012. The theoretical background of the present study is based on the agency theory. Ownership structure is measured by institutional shareholdings, insider shareholdings, foreign shareholders and government shareholdings, while return on assets (ROA), return on equity (ROE), market-to-book ratio (MBR) and Tobin's Q (TQ) are used as proxies of corporate financial performance. The dynamic panel generalized method of moments (GMM) method is employed to cater for the issue of endogeneity. We find that institutional ownership exerts a significant positive impact on ROE and MBR, which suggests that institutional investors play a significant role in improving the financial performance of the sample Pakistani. Furthermore, the results reveal a significant positive relationship of insider ownership with ROA, ROE, MBR and TQ, which is consistent with the prediction of agency theory that concentration of insider ownership aligns the interest of shareholders with those of the managers and hence improves performance. A significant positive association of government shareholdings with ROA and ROE was also found. Therefore, policymakers may encourage government ownership in firms, which can help to improve corporate financial performance. The present study contributes to the existing literature on ownership structure and corporate financial performance in an emerging market like Pakistan. It is worth mentioning that the institutional setup and corporate governance structure in Pakistan is yet at an evolving stage. Findings of this study may provide useful insights to corporate managers and investors about the relationship between ownership structure and financial performance of firms from the manufacturing sector in Pakistan.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-08
      DOI: 10.1108/IJOEM-03-2019-0220
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)
       
  • Inflation forecasting in an emerging economy: selecting variables with
           machine learning algorithms

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      Authors: Önder Özgür, Uğur Akkoç
      Abstract: The main purpose of this study is to forecast inflation rates in the case of the Turkish economy with shrinkage methods of machine learning algorithms. This paper compares the predictive ability of a set of machine learning techniques (ridge, lasso, ada lasso and elastic net) and a group of benchmark specifications (autoregressive integrated moving average (ARIMA) and multivariate vector autoregression (VAR) models) on the extensive dataset. Results suggest that shrinkage methods perform better for variable selection. It is also seen that lasso and elastic net algorithms outperform conventional econometric methods in the case of Turkish inflation. These algorithms choose the energy production variables, construction-sector measure, reel effective exchange rate and money market indicators as the most relevant variables for inflation forecasting. Turkish economy that is a typical emerging country has experienced two digit and high volatile inflation regime starting with the year 2017. This study contributes to the literature by introducing the machine learning techniques to forecast inflation in the Turkish economy. The study also compares the relative performance of machine learning techniques and different conventional methods to predict inflation in the Turkish economy and provide the empirical methodology offering the best predictive performance among their counterparts.
      Citation: International Journal of Emerging Markets
      PubDate: 2021-02-03
      DOI: 10.1108/IJOEM-05-2020-0577
      Issue No: Vol. ahead-of-print, No. ahead-of-print (2021)