Endogenous categorization of the human development

The human development index (HDI) is one of the most well-known measures of welfare. We apply clustering techniques to endogenously determine how similar countries are with respect to the HDI, and into how many categories they can be classified. We find that, in contrast to the usual assumption in the United Nations’ Human Development Reports, the number of categories is not fixed and has varied over time, from three in 1990 to four in 2014. We also find that the countries within each category differ from the United Nation’s proposal.     

Systemic crisis,weltschmerz and tourism: meaning without incense during vacations

The present global economic crisis is revealing manifold fissures in the economic/social/value/sense-making system and that inevitably has an effect on people’s psyche, on their beliefs and desires, even on their perception of needs. Many effects of the present situation are symptoms of a broader type of crisis. The economic crisis may have acted as a catalyst for increasing (social, political, and spiritual) awareness, and it could be paradoxically a landmark and a far-reaching impetus to renewal and awakening of humanity, to build a sounder and more sustainable (social, educational, political, and economic) system. At this crossroad, the reappearance in the last decade of the term weltschmerz is not coincidental. Whereas the extent to which the current economic crisis has produced a personal or integral crisis remains to be measured, it is clear that concepts such as meaning or transcendence – to combat meaninglessness and weltschmerz – have become central in the discussion on qualitative implications in tourism. The paper suggests a meaningful learning framework to identify required elements for a particular, desired outcome (coping with the second domain of existential pain/ weltschmerz), whose empirical relevance and practical developments are examined in this piece of research on tourism experience.     

The application of proxy methods for estimating the cost of equity for unlisted companies: evidence from listed firms

Review of Quantitative Finance and Accounting - The Campbell and Vuolteenaho (Am Econ Rev 94(5):1249–1275, 2004) two–beta model decomposes the systematic risk in the sensitivity of cash...     

Industrial leadership in science-based industries: A co-evolution model

In this paper, we seek to analyse the role of national university systems in combination with technological and market factors as sources of industrial leadership and industry growth in science-based industries. We propose a model in which national university systems and their respective national firms and industries are considered as co-evolving. National firms compete on a worldwide level and they rely on the progress of science and the availability of scientists to innovate. As the global industry develops, firms try to mold their national university systems, but they achieve different degrees of success. Apart from highlighting the role of institutional responsiveness as a source of competitive advantage, our model points to the access to essential inputs for production, the technological and strategic characteristics of firms, the international diffusion of knowledge, and the initial distribution of market demand as key sources of leadership and industry growth. The international mobility of scientists seems to foster the emergence of industrial leadership shifts.     

How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?

This paper focuses on how a firm's characteristics affect the market valuation of its research and development (R&D) spending. We derive a valuation model based on the capital market arbitrage condition. Using the generalized method of moments and data from the Eurozone countries to estimate this model yields interesting results. Several firm characteristics (size, firm growth, and market share) positively affect the relationship between firm value and R&D spending, while others (free cash flow, dependence on external finance, labor intensity, and capital intensity) exert a negative effect. Therefore, we conclude that the effectiveness of R&D spending depends on firm characteristics.     

MACROECONOMIC LINKAGES IN MEXICO

The authors study the effects of selected macro variables on output in Mexico, following a Kaleckian framework, and using a probabilistic approach to econometrics. They find a strong positive effect of US GDP, of protection of the domestic market and of government expenditure, on Mexico's GDP, and a negative influence of higher exchange rate and credit rationing. Their results support the overall outlook proposed by the post Keynesian and the Latin American Structuralist schools of economic thought, and reject the Washington Consensus type of policies Mexico has been following during the last decades.     

Does Family and Lone Founder Involvement Lead to Similar Indebtedness?

This study evaluates whether the presence of a lone founder and family involvement impact private firms’ leverage differently from a methodological view. Using a sample of 4,102 private firms in Spain and taking under consideration a panel data structure from 2006 to 2013, we find that lone founder and family involvement matter in capital structure decisions and size shapes the forementioned influence. Our findings show that lone founder involvement always implies higher debt than the rest of firms and suggest that firms with genuine family involvement are significantly low debt companies.     

Customer behavior in electronic commerce: The moderating effect of e-purchasing experience

This study analyzes the perceptions which induce customers to purchase over the Internet, testing the moderating effect of e-purchasing experience. We distinguish between two groups: (1) potential e-customers, who are considering making their first e-purchase, and (2) experienced e-customers, who have made at least one e-purchase and are thinking about continuing to do so. The perceptions that induce individuals to purchase online for the first time may not be the same as those that produce repurchasing behavior. Our findings demonstrate that customer behavior does not remain stable because the experience acquired from past e-purchases means that perceptions evolve. The relationships between perceptions of e-commerce change with purchasing experience, whilst the influence of Internet experience is stable for all users. The implications are especially interesting for e-commerce providers whose business models depend on e-customer behavior.     

Parsimonious Models of Financial Insolvency in Small Companies

This study is an extension of current research on insolvency diagnosis. We intend to demonstrate that in small firms, the relevant information for the preventive diagnosis of insolvency can be synthesised in a model built upon a more reduced number of economic and financial ratios than the ones generally used in this kind of study. Our approach produces parsimonious models that can extract information from publicly available accounting-financial data. We demonstrate that using an extensive exploratory stage that will monitor the effects of correlation between financial variables, we will be able to build relatively stable models with a small set of variables.The results of the models built by resorting to discriminant analysis and to logistic regression present a similar accuracy to models previously developed. Our models present the advantage of including a small number of variables that can be interpreted in the light of current financial theory and therefore it reduces the number of financial data needed to make an insolvency diagnosis. This is particularly decisive when working in an environment of restricted information availability, which is very common in small companies.