The dynamics of indebtedness in developing countries: The case of the Philippines

The relationships between foreign capital inflows, the build-up of debt, and economic growth in a developing country are analyzed using a system dynamics model of the pertinent processes. The Philippines serves as an empirical case to apply the model. The model incorporates the macro-structure of economic growth, the micro-structure of market-clearing mechanisms, and an accounting of the money flows. The study shows that economic policies enhancing debt-servicing ability create better economic performance than those limiting acquisition of loans. Increasing capital-intensity is the most important part of such policies. They are further facilitated by encouraging investment through decreasing taxes and enhancing demand through increasing government spending and promoting exports. Thus, augmentation of domestic resources by foreign capital inflows appears to be a viable economic strategy.     

Market structure and competitive conditions in the Arab GCC banking system

This paper investigates the market structure of Arab GCC banking industry during the years of 1993–2002 using the most frequently applied measures of concentration k-bank concentration ratio (CRk) and Herfindahl–Hirschman Index (HHI) and evaluates the monopoly power of banks over the ten years period using the ‘H-statistic’ by Panzar and Rosse. The results show that Kuwait, Saudi Arabia and UAE have moderately concentrated markets and are moving to less concentrated positions. The measures of concentration also show that Qatar, Bahrain and Oman are highly concentrated markets. The Panzar–Rosse H-statistics suggest that banks in Kuwait, Saudi Arabia and the UAE operate under perfect competition; banks in Bahrain and Qatar operate under conditions of monopolistic competition; and we are unable to reject monopolistic competition for the banking market in Oman.     

Models of consumer behavior: The state of the art

Models of consumer behavior have gained much acceptance since the early sixties. The purpose of this article is to examine the state of the art by reviewing the often cited models: Nicosia, Howard-Sheth, and Engel-Blackwell-Kollat. Specifically, a major objective is to consider these models from their practical utility standpoint, i.e., whether the models can be tested and used by marketers. To accomplish this, a set of criteria is developed for evaluation of models in general, and consumer/buyer behavior models in particular. The criteria used for evaluating the state of the art in consumer behavior models are largely derived from model building sources in various fields. The results indicate that although the models are quite impressive in scope, they are inherently weak to be of much help to the marketing practitioner. Indeed, none of the models have been tested as a whole in their original form because they lack specificity and thus are difficult, if not impossible, to operationalize. This article is partially based on a paper which received an award in an Academy of Marketing Science student paper competioion. The Academy encourages scholarly work by various groups through annual competitions and awards.     

Cross-cultural research in advertising: An assessment of methodologies

The volume of scholarly work in cross-cultural advertising has been increasing in recent years. This study examines empirical studies in this area from a methodological perspective. Cross-cultural research designs should include many critical facets that do not surface in studies involving single cultures. These facets are discussed within the context of cross-cultural advertising literature. It is apparent from this review that a sharper focus on cross-cultural research tools and considerations can strengthen studies of advertising, lead to more robust results, and increase validity and reliability. Both students and practitioners need meaningful and generalizable findings that will emerge only when strict methodological considerations are adhered to. His articles have appeared in theJournal of Marketing, Journal of International Business Studies, Journal of the Academy of Marketing Science, and others. His areas of interest include global new product development, entrepreneurship, and exporting.     

Global Insights on TMT Gender Diversity in Controversial Industries: A Legitimacy Perspective

Journal of Business Ethics - Firms in controversial industries such as tobacco, alcohol, gambling, weapon, and nuclear power suffer organizational legitimacy problems. These firms, therefore, adopt...     

Net-zero emission targets and the role of managerial environmental awareness,customer pressure,and regulatory control toward environmental performance

To avoid the worst effects of global warming, countries agreed to limit warming below 2.0°C and ideally to 1.5°C preindustrial level. This requires countries to drop half of their greenhouse gas emission by 2030 and reach net-zero emission by 2050. In this regard, current study explores the role of green production as a mediator in the impact of managerial environmental awareness, customer pressure, and regulatory control on environmental performance. The data collected from 381 managers was analyzed using structural equation modeling (SEM) technique. Results indicate that customer pressure, regulatory control, and managerial environmental awareness play a pivotal role toward green production, whereas only managerial environmental awareness among them directly influences environmental performance. Green production fully mediates the relationship from customer pressure and regulatory control to environmental performance. However, it partially mediates the relation between managerial environmental awareness and environmental performance. Similarly, the importance of green production for environmental performance is highlighted.     

Market Reaction to Seasoned Offerings in China

This study examines stock market reaction to the announcement of various forms of seasoned issues in China. Our empirical evidence demonstrates that market reactions differ in ways that suggest a difference between management's internal assessment and the market's assessment of the stock price. The market responds unfavourably to the announcement, notably in the case of rights issues and also with regard to open offers. Private placements experience an unfavourable pre‐announcement reaction, which contrasts with the favourable reaction after the event. Convertible bond issues generate positive excess returns consistent with the market's confidence that they can help to align management and shareholders’ interests. Further investigation shows that market reaction is related to factors specific to the issuer and issue by reference to the period immediately surrounding the issue. Specifically, ownership concentration, agency matters connected with equity offerings, investor protection connected with fund allocation and security pricing, and the influence of powerful moneyed interests together provide an instructive insight into market reaction. Institutional inefficiency pertaining to underwriting, auditing, analysts’ forecasts and credit ratings are found to have a weak association with market price, consistent with due public scepticism concerning management and their gatekeepers.     

The Impact and Implications of International Financial Reporting Standards in the United Kingdom: Evidence from the Alternative Investment Market

This paper investigates the implications of the adoption of International Financial Reporting Standards (IFRS) from the perspective of small and growing companies listed on the United Kingdom's (UK) Alternative Investment Market (AIM). We consider the cost–benefit issues of IFRS adoption and investigate its economic consequences. The results reveal that only a small number of comparatively larger AIM companies have voluntarily adopted IFRS for some anticipated economic objectives. The results also suggest that most of the mandatory adopters have done so for regulation compliance purposes and they would not have adopted IFRS if a choice was available to them. As the existing literature mainly covers the impact of IFRS adoption on large listed companies, the findings of this study will give better insights into extending IFRS to private companies. The findings show an association between the early adoption of IFRS and firm size and conclude that size matters in both the adoption and implications of IFRS. This study also contributes to the debate on the implications of the new IFRS‐based UK GAAP for SMEs‐FRS 102, which will replace the majority of existing UK accounting standards for small and medium enterprises (SMEs) with effect from 2015. Our findings have implications for managers, regulators, market participants, practitioners and other stakeholders.     

Governance mode for port congestion mitigation: A transaction cost perspective

Transaction cost analysis (TCA) has been applied in a wide range of academic disciplines, including economics, marketing, sociology, organization theory, and business strategy. Literature in maritime transport has had limited exposure to this versatile theoretical framework. This paper aims at developing a conceptual model that describes governance strategies that various players within the maritime sector can adopt to mitigate congestion at ports. A TCA is used to examine port congestion mitigation from a governance perspective. A theoretical analysis conducted for this paper reveals that the three characteristics of TCA – asset specificity, frequency, and uncertainty – prevail in the maritime sector, too. The first two factors, frequency, and uncertainty, contribute to port congestion, while the third factor, asset specificity, exists because to release port congestion, some players ought to make a specific investment. We use TCA to discuss the circumstances under which governance modes such as bilateral governance and vertical integration should be used to avoid congestion and other kinds of transaction costs associated with these three attributes in the maritime sector. In this study, we suggested several testable propositions to identify the mode of governance that should be selected by stakeholders to mitigate port congestion and to protect specific investments made to release congestion at ports. This line of analysis will certainly provide all the stakeholders engaged (particularly, a public policymaker) useful insight into understanding congestion from a governance perspective.     

Firm performance,corporate governance and executive compensation in Pakistan

This study examines the effects of firm performance and corporate governance on chief executive officer (CEO) compensation in an emerging market, Pakistan. Using a more robust Generalized Method of Moments (GMM) estimation approach for a sample of non-financial firms listed at Karachi Stock Exchange over the period 2005–2012, we find that both current- and previous-year accounting performances has positive influence on CEO compensation. However, stock market performance does not appear to have a positive impact on executive compensation. We further find that ownership concentration is positively related with CEO compensation, indicating some kind of collusion between management and largest shareholder to get personal benefits. Inconsistent with agency theory, CEO duality appears to have a negative influence, while board size and board independence have no convincing relationship with CEO compensation, indicating board ineffectiveness in reducing CEO entrenchment. The results of dynamic GMM model suggest that CEO pay is highly persistent and takes time to adjust to long-run equilibrium.