Multinationals from emerging economies: Strategies,challenges, and the way forward

Multinationals from emerging economies are relatively new players in the global economy. This Special Issue includes five articles that cover several important aspects of the market and nonmarket strategies pursued by emerging market multinational corporations (EMNCs). Given that only a few firms from emerging markets embrace the possibilities and challenges of going global, we highlight the need to examine country, industry, and firm level antecedents of the emergence of EMNCs. We also draw attention to the need to study the role played by immigrant populations in EMNC internationalization.     

Quantifying the link between employee engagement,and customer satisfaction and retention in the car rental industry

In the retail service industry, employee engagement may play an important role in customer satisfaction and retention, as employees often interact directly with customers. This paper investigates the empirical link between employee engagement and customer satisfaction and retention by analyzing a unique data set from a large car rental company. Our analysis makes use of retirement-induced employee turnover as an exclusion restriction that is plausibly induced by employee age, thereby allowing for variation in employee engagement that is partially exogenous to common underlying factors that also impact customer satisfaction and retention. We show that there is a positive effect of employee engagement on customer satisfaction and retention. Further analysis of moderating effects highlight potential limits to employee engagement, as service disruptions in the form of car downgrades can dampen the positive effects of employee engagement. However, despite the dampened impact of employee engagement its overall effect remains positive indicating that employee engagement can be a key factor in building resilience to unforeseen service disruptions.

     

Russia–Ukraine crisis: The effects on the European stock market

We examine the effect of the Russia–Ukraine crisis on the European stock markets. Because of increased political uncertainty, geographic proximity and the ramifications of the fresh sanctions imposed on Russia, the European stock markets tended to react negatively to this crisis. We find that on 21 February 2022, when Russia recognized two Ukrainian states as autonomous regions, European stocks incurred a significant negative abnormal return. Moreover, the negative stock price reactions continued in the post-event period. The magnitude of the stock price reactions to this crisis exhibits considerable variation across industries, countries and size of the company.     

Can medium-scale farms support smallholder commercialisation and improve welfare? Evidence from Nigeria

In spite of mounting evidence about the growth of medium-scale farms (MSFs) across Africa, there is limited empirical evidence on their impact on neighbouring small-scale farms (SSFs). We examine the relationships between MSFs and SSFs, with particular focus on the specific mechanisms driving potential spillover effects. First, we develop a theoretical model explaining two propagating mechanisms: learning effects (training) and cost effects (reduced transactions cost). An empirical application to data from Nigeria shows that SSFs with training from MSFs tend to use higher levels of modern inputs (have higher productivity), and receive higher prices and income. The results also show that purchasing inputs from MSFs reduces the costs of accessing modern inputs and is associated with higher inorganic fertiliser use by SSFs. Our results suggest that the benefits of receiving training and purchasing inputs from MSFs are particularly important for very small-scale producers, operating less than 1 hectare of land. This implies that policies which promote the efficient operation of MSFs and encourage their interaction with SSFs can be an effective mechanism for improving the productivity and welfare of smallholder farms, hence reducing their vulnerability to extreme poverty.     

Long-run relationship between the unemployment rate and the current account balance in the United States: An empirical analysis

Portuguese Economic Journal - In recent years, political rhetoric implying international trade hinder employment has gained momentum. We argue that the dynamics between the unemployment rate and...     

Foreign Direct Investments,Renewable Electricity Output,and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?

Asia-Pacific Financial Markets - Phasing out fossil fuel dependency to adopt renewable energy technologies is pertinent for both ensuring energy security and for safeguarding the well-being of the...     

Are financial derivatives related to intra-entities' tax aggressiveness? UK evidence

This study investigates the effect of hedged versus nonhedged financial derivative instruments on the intra-entities' tax aggressiveness. Our findings provide evidence that multinational enterprises manage derivatives instruments to avoid their tax expenses aggressively. Specifically, nonhedged derivatives are an excellent determinant of the tax aggressiveness practices of corporate groups. Besides, this study speaks to the central role of governance quality in mitigating this aspect of tax aggressiveness and provides practical guidance to tax authorities and regulators for establishing new policies for governing financial derivative instruments and preventing tax aggressiveness from negatively affecting firms and society.     

Early growing season weather variation,expectation formation and agricultural land allocation decisions in Ethiopia

Using unique crop-specific data gathered over 7 years, we study if and how maize-producing farmers in Ethiopia adjust their land allocation decisions in response to pre-planting-season weather variations. We show that farmers adjust their land allocation decisions in response to increased temperatures early in the growing season. In addition to quantifying a substantial adaptation margin that has not been documented before, our study also reveals the presence of a weather variation-induced expansion of maize production into areas that are less suitable for maize cultivation.     

What drives firms' commitment to fighting corruption? Evidence from the UK

The recent leak of the FinCEN files has highlighted the widespread presence of corruption in developing and developed economies, including the UK. Accordingly, this study aims to investigate the factors that drive companies to implement measures for preventing corruption in developed countries using FTSE 350 nonfinancial firms. Specifically, the research examines the influence of corporate social responsibility (CSR) commitments, board structure, and shareholding structure on adopting strategies, policies, and procedures aimed at countering corruption. Drawing upon agency, stakeholder, and legitimacy theories, our empirical evidence supports that CSR commitments and board independence positively influence firms' engagement in anticorruption measures. Conversely, institutional and managerial shareholdings are found to have a negative association with firms' efforts to combat corruption. In addition, the study shows that the effect of board characteristics became more pronounced following the enactment of the UK Bribery Act 2010, indicating risk-averse behavior. Various models, including cross-sectional and two-stage least squares (2SLS), are employed to analyze the data. Our findings have significant implications for understanding the complex relationship between CSR, corporate governance, and the ethical infrastructure of organizations. Ultimately, our results provide valuable insights for policymakers, companies, and other stakeholders in developing effective strategies, policies, and procedures to combat corruption activities.     

Consequences of local social norms: A review of the literature in accounting,finance, and corporate governance

We synthesise the empirical archival research on the consequences of local social norms on accounting, finance, and corporate governance outcomes in an international setting. The literature reviewed is premised on the theory that corporations do not make decisions, but managers do, and managers are likely to be influenced by the socioeconomic environment of the region in which they operate and/or by the people with whom they interact. To provide a structure to our review, we identify social capital, religiosity, gambling norms, and corruption culture, as four constructs of local social norms and link these with financial reporting and external auditing, financial, investment, and dividend decisions, capital market consequences and finally, corporate governance and corporate social responsibility behaviour of firms. We highlight some limitations of the existing research and offer some suggestions for future research.