Stock Price Reactions to Securities Recommended in Business Week's “Inside Wall Street”

The price behavior of stocks of firms that were favorably mentioned in the “Inside Wall Street” column in Business Week are studied. These firms have been the subject of rumors or have been recommended by analysts or brokerage houses and, therefore, their mention in Business Week constitutes dissemination of secondary information. Positive, significant excess returns are observed the day prior to the publication date, the publication date, and the two days after publication. Positive, significant excess returns are observed for long-term holding periods prior to the publication date, while negative, significant excess returns are observed for the post-publication holding periods. The observations appear to be consistent with the price performance of firms that might have been subject of either rumors or recent recom-mendations by analysts or brokerage houses. The results suggest that secondary information is of value only to low transaction cost, short-term traders. Investors who buy for the longer term based on secondary information generally receive below market rates of return.     

Role of tariffs,imports substitution and investment efficiency in economic growth of Pakistan

Quality & Quantity - This paper explores the impact of tariffs, imports substitution and investment efficiency on economic growth in Pakistan. For this purpose, secondary data was collected...     

Modeling the employment–oil price nexus: A non-linear cointegration analysis for the U.S. market

ABSTRACT

Theoretically, fluctuations in oil prices are expected to affect production costs and may force businesses to delay their investment decisions, triggering pressures on employment. Following these theoretical notions, this paper investigates the asymmetric impact of oil prices on employment (measured as total employment, male employment, and female employment), in a nonlinear cointegration structure for the U.S. market. In doing so, this paper adopts the nonlinear autoregressive distributed lags (NARDL) model to shed light on such asymmetric association, as the NARDL model recently emerged as a new direction in examining nonlinear cointegration and asymmetry. The empirical findings document a long-run asymmetric effect in case of total employment and male employment only. Furthermore, the short-run asymmetric effect was detected for all three employment categories. As a final point, the Granger Causality test documents a unidirectional causality running from oil price decrease to both total employment and male employment.     

Network view of MNCs' socio-political behavior

While business networks and relationships in international and industrial marketing studies are explored extensively, relationships between firms and socio-political actors are rarely been studied. This paper addresses this gap and examines how MNCs manage their relationship with socio-political organizations. The study builds from the proposition that business firms, besides their actions in business market, have to manage their socio-political market. The study aims to develop a theoretical view that is based in business networks and contains the three concepts of legitimacy, commitment and trust. The proposition is that business firms behave proactively towards the actors in the socio-political environment which is related to their business goals. The three conceptual elements will enable us to understand more deeply the varieties in the firms' managerial behavior. Two cases test the concept in the model — those of Daewoo Motor Company (a South Korean MNC) and the Swedish MNC, Vattenfall. The study will contribute towards deeper understanding of socio-political market and how firms manage their socio-political relationships. The conclusions describe the theoretical and managerial implications.     

Revisiting the environmental kuznets curve hypothesis: evidence from the ASEAN-5 countries with structural breaks

This paper tests if the Environmental Kuznets Curve (EKC) hypothesis exists for ASEAN-5 countries in an annual sample data that covers 1971–2013, by utilizing Auto Regressive Distributed Lag (ARDL) methodology. The empirical findings give support for the EKC hypothesis for Thailand only, after considering the structural breaks. Furthermore, the paper tests the EKC hypothesis for a panel data of the ASEAN-5 by adopting the Pooled Mean Group (PMG) methodology. The results show that the long-run estimates provide no evidence for the EKC hypothesis. Finally, the paper examines the causality between the CO₂ emissions and GDP. For individual countries, bidirectional causality was found in the case of Thailand and Malaysia, plus unidirectional causality running from GDP and squared GDP to CO₂ emissions was found for Indonesia, but a unidirectional causality running from CO₂ emissions to GDP and squared GDP was found for the Philippines, however, no causality effect was found for Singapore. Furthermore, the pairwise Dumitrescu and Hurlin Panel Causality test show a bidirectional effect between CO₂ emissions and both GDP in addition to squared GDP.     

Can a path to peace promote export growth? Evidence from Pakistan and its trading partners

Quality & Quantity - This study has investigated the connection between peace and performance of Pakistan’s export sector. The interstates conflicts, terrorist activities and war elements...     

Industrial relationships and the effects of different types of connections

Emphasizing the primary and secondary functions in business networks, this paper is based on the presumption that the primary function of the focal dyadic relationship is connected to business, political, ancillary and competitive relationships, i.e. what has been denoted as the secondary function. The question is how these secondary functions affect the primary function. The conceptual view developed for the focal dyadic relationship is founded on the two key relationship concepts of trust and commitment. The empirical study is based on a survey of 353 firms and their most important customer relationships. The analysis examines nine hypotheses through a structural model in LISREL. Conclusions from the statistical test show the heterogeneity in the impacts of these different types of connections on trust and commitment. Knowledge of the impact of these connections can aid the further understanding of relationship connections and also assist business firms in developing strategies towards these units.     

BANKING SECTOR PERFORMANCE,PROFITABILITY, AND EFFICIENCY: A CITATION-BASED SYSTEMATIC LITERATURE REVIEW

This study presents a citation-based systematic literature review on banking sector performance, particularly in terms of profitability, productivity, and efficiency. Specifically, the study aims to identify the leading sources of knowledge in terms of the most influential journals, authors, and papers. The paper presents a content analysis of the 100 most cited papers. In total, 1996 peer-review papers were found relevant in the Scopus database by using a comprehensive list of keywords. The results show that the Journal of Banking & Finance appears to be the leading journal in terms of publication count and citations. Based on total citations, Allen Berger is the most prolific author. The most cited paper is “Problem loans and cost efficiency in commercial banks” by Allan Berger and Robert DeYoung. The content analysis of the top 100 papers identifies five essential themes: determinants of efficiency, methodology, ownership, financial crises, and scale economies. In terms of estimation approaches, 74% of papers employed frontier analysis, which includes 34% parametric and 40% nonparametric methods, and remaining 26% have used financial ratio analysis. Additionally, stochastic frontier and data envelopment analysis are widely used in parametric and nonparametric methods, respectively. An intermediate approach is extensively adopted for the specification of inputs and outputs.     

Is it an institution,digital or social inclusion that matters for inclusive growth? A panel data analysis

This study empirically examines the impact of institutional quality, social inclusion and digital inclusion on inclusive growth across different economies characterized by different income groups. Particularly, the study examines the impact of institutions on inclusive growth by using the panel data for 83 countries over the period 2010–2017. For empirical specification, we used two-steps system-GMM estimation technique to tackle endogeneity and min–max normalized indexing technique to construct the indices for inclusive growth, social inclusion, digital inclusion and institutional quality. The results of this study show that there is a direct link between institutional quality and inclusive growth for a higher-income group of countries but not in the rest of the income groups. Contribution of social and digital inclusivity is significant in all three income groups, except for social inclusion in middle-income countries. From the policy point of view, these findings suggest that establishing and strengthening the institutional structure in low- and middle-income countries can contribute towards better and higher inclusive growth.

     

How does uncertainty impact opportunity development in internationalization?

The features of the internationalization of emerging market multinational companies (EMNCs) create a laboratory for extending theory. In this paper, we argue that a high level of asymmetry between prior knowledge and a non-incremental commitment, such as an acquisition, lies at the core of understanding these types of internationalization processes. Our proposed theoretical view is that while some uncertainties in opportunity development are known to the firms and can be managed by available knowledge, disruptive commitments can result in complexes of unstable and unilineal dynamics that bring about unexpected – and hence unforeseeable – uncertainties. These uncertainties may be a source of future unintended consequences that will have an impact on the firm as the internationalization process unfolds. This view is used for analysis of a longitudinal case study concerning the acquisition of a Swedish firm, Vargön Alloys, by the Turkish corporation Yildirim Group, focusing on the opportunity discovery and exploitation period between 2008 and 2013. By dividing uncertainty into two types (foreseeable and unforeseeable) and analysing the hidden problems that emerged after the sudden fusion of the two networks, the study nuances understanding of the emergent and non-orderly nature of the internationalization process as it unfolds. From a process point of view, the study may aid deeper understanding of complications when discovering and exploiting opportunities.