How does capital control spur economic growth?

This paper provides a conceptual and empirical framework for evaluating the effect of capital controls on long‐term economic growth. In a small open economy which relies on successful investment projects to provide capital goods, taking out short‐term loans has two contradictory impacts: (i) it reduces the interest costs of financing investment projects; and (ii) it also leads to larger asset losses in the scenario of short‐term debt run. In this work, we hypothesise that private financing decisions made by domestic investors are distorted towards excessive risk‐taking, leading to ineffective capital formation. Thus, capital control policies, particularly regulations on short‐term loans, can be socially beneficial as they alter the debt composition, promote capital formation and achieve a higher output level. Using a panel data set covering 77 countries from 1995 to 2009, we employ a system generalised method of moments (GMM) estimator to sequentially test three hypotheses and find strong empirical evidence that supports our theory.     

The Information Content of Short Selling Around Close Supply Chain Relationships

Close supply chain relationships are sometimes detrimental to the partnering firms, and short sellers recognize this before the rest of the market. Suppliers and customers that are in linked, close supply chain relationships have higher short interest on average. Further, higher short interest increases the likelihood of large, linked customers reporting negative earnings surprises, whereas suppliers with high short interest are more likely to report negative earnings surprises, irrespective of the supply chain structure. Short selling is informative to capital markets because these suboptimal relationships eventually lead to dependent suppliers being delisted from a stock exchange for financial distress reasons.     

Short Sale Constraints and Single Stock Futures Introductions

This paper exploits the unique experimental setting created by nearly 1,300 new single stock futures listings on the OneChicago exchange between 2003 and 2009. I investigate the impact of derivatives introductions on the tightness of short sale constraints facing their underlying assets. After controlling explicitly for supply and demand conditions in the stock lending market, this experiment reveals a precipitous decline in active utilization rates and loan fees in the lending market, after the futures introductions. The paper provides strong evidence that supports the view that derivatives represent a viable alternate synthetic short selling venue relaxing short sale constraints facing their underlying assets.     

放松卖空约束、现金持有水平及其市场价值——基于公司治理角度研究

基于放松卖空约束的政策实施,运用双重差分法考量放松卖空约束对现金持有行为影响及其产生的经济后果。结果显示：放松卖空约束增加了公司现金持有量,同时也增加了公司现金持有的边际市场价值;按照公司内部代理成本分组来看,内部代理成本越大的公司,放松卖空约束的治理效果越明显;进一步检验中,通过一系列稳健性检验发现主要结论依然成立;机制性检验表明放松卖空约束通过抑制公司过度投资行为增加了现金持有及其市场价值。结果表明：放松卖空约束作为一项重要的金融创新工具,可以通过外部治理监督作用缓解公司内部代理问题,从而影响上市公司现金持有行为。     

The long‐term benefits of organizational resilience through sustainable business practices

Research summary : Prior work on the benefits of business sustainability often applies short‐term causal logic and data analysis. In this article, we argue that the social and the environmental practices (SEPs) associated with business sustainability not only contribute to short‐term outcomes, but also to organizational resilience, which we define as the firm's ability to sense and correct maladaptive tendencies and cope positively with unexpected situations. Because organizational resilience is a latent, path‐dependent construct, we assess it through the long‐term outcomes, including improved financial volatility, sales growth, and survival rates. We tested these hypotheses with data from 121 U.S.‐based matched‐pairs (242 individual firms) over a 15‐year period. We also tested, but did not find support for, the relationship between SEPs and short‐term financial performance. Managerial summary : Most managers look for short‐term financial benefits to justify socially responsible or sustainable practices. In this article, we argue that such practices also help firms become more resilient, which helps them avoid crises and bounce back from shocks. However, it is difficult to measure the avoidance of shocks, so we analyzed long‐term outcomes. We show that firms that adopt responsible social and environmental practices, relative to a carefully matched control group, have lower financial volatility, higher sales growth, and higher chances of survival over a 15‐year period; yet, we were unable to find any differences in short‐term profits. We hope this research provides good reasons for firms to practice sustainability beyond the pursuit of short‐term profits. Copyright © 2015 John Wiley & Sons, Ltd.     

融资融券对于我国股市波动性的影响

针对时间序列存在非线性、随机波动性强的特点,从波动性的视角,用EGARCH(1,1)模型对比分析了融资融券在股市处于平稳及暴涨暴跌的不同阶段时,其对股市波动性的影响是否存在差异。结果表明：①在股市变动较为平稳的情况下,融资融券能够平抑股市的波动性,但在股市剧烈波动时却能显著加剧其波动性。②股市波动具有杠杆效应,在股市平稳阶段利空比利多产生更大的波动,在股市暴涨暴跌阶段利多会比利空产生更大的波动。     

SALCUSTOR: A Multidimensional Scale for Salespersons’ Customer Orientation and Implications for Customer-Oriented Selling: Empirical Evidence From India

ABSTRACT

Recent studies have highlighted the limitations in the applicability of the selling-versus-customer orientation scale as a measure of a salesperson's customer orientation. Therefore, few scholars call for new research on identifying the underlying dimensions of customer-oriented selling and for developing a new scale. This study provides a new conceptualization of a salesperson's customer orientation and develops and validates a multidimensional scale to measure it. This scale, SALCUSTOR, uses multiple samples of data from salespersons from India. SALCUSTOR assesses the degree to which a salesperson (a) provides relevant and correct information to his/her customers, (b) understands and learns the underlying needs of the customers, and (c) maintains relationships with customers and thinks about their long-term benefits. We establish the reliability, convergent, discriminant, and nomological validity of SALCUSTOR. Managers can use SALCUSTOR to identify specific gaps in the three dimensions of customer-oriented selling behaviors of the salespersons, using appropriate intervention strategies.     

A Fast Track to Cultural Immersion

ABSTRACT

The internationalization of the business curriculum remains a priority for preparing students for a global workforce. Business schools continue to stress the importance of semester-long study abroad programs. Yet in colleges and universities with a growing population of non-traditional, working adult students, it is challenging to provide international study abroad opportunities. Options for such intensive immersion are limited and may include non-credit travel, travel as a small part of a credit course, or travel with a trade mission group. In short term international travel, quickly introducing students to culture shock and moving toward some minimal acculturation is the primary goal. This article describes a nine-day study abroad trip to Monterrey, Mexico that quickly exposed students to the local culture via a day-long structured scavenger hunt exercise. Suggestions for implementing such experiential activities into the curriculum of other study abroad programs are provided as well as a discussion of students and faculty learning.     

服务型社会的服务外包合作实证研究

通过12个服务外包示范城市面板数据GC检验和虚拟变量半对数面板数据模型,从供给角度研究中间需求与技术进步对服务外包合作的影响.研究结果证明：在服务型社会中,价值链整合能力与服务外包合作之间相互影响;一国政策制度开放程度高会直接对服务外包合作产生正面影响;一国信息技术发展水平高、基础设施完善直接对服务外包合作产生推动作用;一国区域资源禀赋越丰富,进行服务外包合作的可能性越强.     

Comovements between heavily shorted stocks during a market squeeze: Lessons from the GameStop trading frenzy

We examine the comovements between stock prices of different heavily shorted companies during a short-squeeze incident. Using the recent GameStop trading frenzy as a case study, we employ wavelet coherence analyses to determine its link with other frequently shorted stocks. We demonstrate a robust positive association between GameStop prices and the performance of high short interest indices. The bubble behavior driven by retail investor herding transmits between different stocks, even from unrelated sectors. Consequently, a single short-squeeze incident may build up into a potentially broader systemic risk, casting doubt on market integrity and stability.