How useful is venture capital prestige? Evidence from IPO survivability

This study examines the effect of venture capitalist (VC) prestige on the post-issue survivability of IPOs and how VC characteristics influence the effect. We find that IPOs backed by prestigious VCs are less likely to delist for performance failure and have longer listing duration relative to those without VC backing; however, IPOs backed by ordinary VCs are as likely to delist as IPOs without VC backing. The finding is robust for Internet and high-tech firms. We further examine heterogeneous VC characteristics and find that the ability of prestigious VCs to improve IPO survival is a function of their investment experience and managerial ability. VC prestige characterized by industry specialization and syndication networks is not related to IPO survival. Overall, the results suggest that the VC characteristics that produce prestige, rather than the prestige itself, drive the long-term survival of IPOs.     

Where is China's Auto Market?

When you name the different automakers,what comes to your mind? Bayerische Motoren WerheAG(BMW),Mercedes- Benz,and Audi from Germany?Ford and General Motors from the U.S.?Toyota,Mitsubishi,and Mazda from Japan?Peugeot and Citroen from French?Volvo from Sweden?Mini from Britain?Fiat from     

How Does Stock Market React to Dividend Surprises? Evidence from Emerging Markets of India and Russia

In this article the authors empirically investigate information content of dividends announcements and average reaction of emerging markets of India and Russia to dividend surprises on the postcrisis period 2010 to 2014. The study applies an analysts’ expectations-based approach rarely used in academic literature. The authors conclude that the Russian market on average reacts negatively to good and bad dividend surprises; good dividend surprises on average trigger positive abnormal returns on Indian stocks, whereas bad and no surprises are associated with negative reactions of the Indian market. Results of the study are discussed from the perspective of dividend signaling theory, market efficiency, and investor behavior.     

How important is marketing efficiency?

The best practice, key indicator of marketing performance is widely claimed to be Return on Investment (ROI). This paper takes issue both with ROI and the relative level of attention given to marketing efficiency. It argues that achieving integrated marketing and corporate goals is far more important, namely marketing effectiveness. The aim of marketing is the sourcing and harvesting of cash flow the cash flow which is the lifeblood of the business. The intangible asset, brand equity, is the store of created demand not yet converted into sales and needs to be taken into account. Thus marketing differs from other types of expenditure and should be treated accordingly.     

How Does the Market Value Corporate Sustainability Performance?

This study provides empirical evidence on how corporate sustainability performance (CSP), as proxied by membership of the Dow Jones sustainability index, is reflected in the market value of equity. Using a theoretical framework combining institutional perspectives, stakeholder theory, and resource-based perspectives, we develop a set of hypotheses that relate the market value of equity to CSP. For a sample of North American firms, our preliminary results show that CSP has significant explanatory power for stock prices over the traditional summary accounting measures such as earnings and book value of equity. However, further analyses suggest that we should not focus on corporate sustainability itself. Our findings suggest that what investors really do is to penalize large profitable firms with low level of CSP. Firms with incentives to develop a high level of CSP not engaging on such strategy are, thus, penalized by the market.     

How to combat NEET? Evidence from Austria

The number young people not in education, employment or training (NEET) has been rising since the beginning of the economic and fi nancial crisis in 2008. This article contributes to the discussion about the reduction of the NEET rate by addressing the questions: Which structural factors can explain differences in the NEET rates among Austrian federal states? What causes an increased or reduced NEET risk at the individual level? What are the key factors for an exit from a NEET situation?     

How global is the Global Compact?

Launched by the United Nations in 2000, the Global Compact (GC) promotes private sector compliance with 10 basic principles covering human rights, labour standards, the environment, and anti-corruption. Its sponsors aim to establish a global corporate social responsibility (CSR) network based on a pledge to observe the 10 principles adopted by companies across the range of company size and regional origin, backed by a modest reporting system and collaborative programmes. The author analyzes the GC's progress toward building a global network from its launch through 2006 and finds that, while the GC's nominal membership base of nearly 3000 companies makes it the largest system among collective action institutions (CAIs) for corporate responsibility, the GC has not reached 'critical mass'. Deficiencies in its nascent global network include limited market penetration among the largest corporations, a membership heavily weighted toward Western European companies, and major weaknesses in compliance with its reporting system. The author concludes that the GC must improve both penetration and compliance if it is to succeed in building a global standard for CSR.     

How new is socially responsible investment?

Much recent comment has been concerned with a perceived distinction between socially responsible investment (SRI) and the older style of ethical investment, which operates on the basis of exclusion criteria. However, the distinction between SRI and ethical investment is not as clear‐cut as some reports have implied, in that some of the longer‐established funds have SRI characteristics. An example is the CIS's Environ Trust, established in 1990, the operation of which has recently assisted the CIS in the adoption of SRI schemes for all its funds. The application of SRI introduces to mainstream funds the principle of engagement with companies. Investment is then based on the selection of 'best practice' companies rather than on criteria of exclusion. This suggests that there is scope for applying the experience of specialised ethical funds to the encouragement of greater social awareness by large shareholders in general.     

What Drives Foreign Ownership in Japan? Evidence from Before and After Japan's Financial Crisis

The ownership structure of Japanese firms has long been characterized by the superiority of ownership by banks and business partners; however, after the mid-1990s, the relative share of foreign ownership increased significantly. Results from this study suggest that almost 90% of the variance in foreign ownership occurs within and between firms. As expected, a substantial percentage of the variance of foreigner ownership is explained by macroeconomic shocks. The results indicate that firm size, profitability, dividends, risk, and financial health are important factors that drive foreign ownership.     

How Policies Affect China's Auto Market

In China, the auto market has traditionally been dominated by public or collective and group consumers who buy cars and trucks at state expense or with public funds. Under these circum-     

Just How Undervalued is the Chinese Renminbi?

Given that the value of China's currency has been a hot topic recently, this paper explores the equilibrium levels of China's real and nominal exchange rates. Employing a Johansen cointegration framework, we focus on the behavioural equilibrium exchange rate (BEER) and permanent equilibrium exchange rate (PEER) models. Our results suggest that, while the renminbi is somewhat undervalued against the dollar, the misalignment is not nearly as exaggerated as many popular claims.     

Is The Foreign Exchange Market Efficiency Adaptive? The Empirical Evidence From India

ABSTRACT

Is market efficiency a time-varying condition or static? Do economic and noneconomic events explain evolving efficiency? This study tries to respond to these two important questions of efficiency in foreign exchange markets. For empirical scrutiny, as per the framework of the adaptive market hypothesis, the authors employ recent methods that are robust and that possess stronger power properties. We find that efficiency is time dependent and that major economic and noneconomic events cause a change in efficiency. The novelty of this study lies in its attempt to measure the relative degrees of efficiency for major currency pairs and to find the factors of the efficiency level.     

How prevalent is academic misconduct in management research?

We survey 1215 management researchers, including editors, researchers, and reviewers, about their views and experiences with four types of academic misconduct: plagiarism, self-plagiarism, coercive citations, and questionable reviewing practices. Management researchers hold strict views on plagiarism, though editors report on frequent instances encountered. We find that many management researchers consider self-plagiarism acceptable. There is also a high percentage of editors who report on authors being coerced to add citations of reviewers or journals to their submission. Similarly prevalent is so-called “honorary authorship,” where colleagues and supervisors who did not take part in the work are added as co-authors. Lastly, nearly half of the editors who responded report having witnessed conflicts of interest in peer reviewing. We conclude that the current system of peer reviewing is in need of change, and we discuss possible ramifications to overcome the persistence of academic misconduct.     

What is Differentiation and How Does it Work ?

In this article we provide a basic review of the relationship between differentiation and profitability. In particular we address the misconception that the reward of differentiation must be a price premium. We conclude with the following:

Differentiation is when a firm/brand outperforms rival brands in the provision of a feature(s) such that it faces reduced sensitivity for other features (or one feature). Through not having to provide these other features the firm has an avenue to save costs. The firm benefits from the reduced sensitivity in terms of reduced directness of competition allowing it to capture a greater proportion of the value created by exchange.

We observe that real world differentiation is a pervasive feature of modern markets, but seems to be largely due differences in distribution and awareness, and occasionally design. Brand level differentiation on functional features is less common due to competitive matching.     

How do female entrepreneurs perform? Evidence from three developing regions

Using the World Bank Enterprise Survey data, we analyze performance gaps between male- and female-owned companies in three regions—Eastern Europe and Central Asia (ECA), Latin America (LA), and Sub-Saharan Africa (SSA). Among our findings are significant gender gaps between male- and female-owned companies in terms of firm size, but much smaller gaps in terms of firm efficiency and growth (except in LA). Part of the reason women run smaller firms is that they tend to concentrate in sectors in which firms are smaller and less efficient (in ECA and SSA). By contrast, we find no evidence of gender discrimination in access to formal finance in any of the three regions, although in ECA women are less likely than men to seek formal finance. Finally, while female entrepreneurs receive smaller loans than their male counterparts, the returns from each dollar they receive is no lower in terms of overall sales revenue.     

How great is Latvia’s success story?

The current state of Latvia can be best described in medical terms: the patient is pale, but alive. The fi nancial woes have been successfully resolved, but economic, social and political challenges remain. The crisis is continuing to affect the fabric of social and political life in Latvia. This paper looks at the economic, social and political consequences of the recent fi nancial crisis and the ensuing economic collapse in Latvia and suggests some remedial actions.     

How Can Globalization Affect Income Distribution? Evidence from Developing Countries

ABSTRACT

The standard Hecksher-Ohlin-Samuelson framework claimed that foreign trade benefits developing countries, but many empirical studies suggest otherwise. After analyzing data on income deciles from the World Income Distribution Database for 66 developing countries, we found that trade openness benefits underprivileged people in affluent countries but not in developing countries. Also, external financial flows and democracy in conjunction do not exert significant effects, suggesting that these variables might affect income distribution through different channels. Finally, we reinforce the Kuznets inverted-U hypothesis; namely, the presence of an economic development threshold beyond which low-income deciles would increase.