Future shock: mega-events in Rio de Janeiro

In preparation for the mega-events of 2014 and 2016, the city of Rio de Janeiro has been going through a permanent shock of agenda, characterised by important urban reengineering projects, population removal and favela (shanty town) pacification. This essay explores the Rio of (sports and other) mega-events and questions the place of the social, in a paradigm marked by futurism and by techno-culture that may be announcing a new political economy: the political economy of mega-events.     

Is hedging successful at reducing financial risk exposure?

This article analyses whether firms use risk management instruments for hedging or speculative purposes. First, by analysing the relationship between the firm’s stock returns and financial risks in 567 Euronext firms, we measure the firm’s exposure to risk. Next, we investigate the effect of hedging in such exposures, addressing simultaneously the endogeneity of hedging decision through a treatment effect methodology. We have found that firms in our sample display higher percentages of exposure, when weighed against preceding studies, and confirmed that hedging reduces the level of the underlying financial exposure, concluding that firms use risk management instruments with hedging purposes.     

Spillovers from Foreign Direct Investment in Spanish Manufacturing Firms

This paper examines the effect of participation by foreign capital and the spillovers from a foreign presence on the technical progress of Spanish manufacturing firms. The results show that foreign direct investment (FDI) creates positive spillover effects for local firms, and when the presence of foreign capital and the absorptive capacity of spillovers from FDI are large, more technical progress ensues. Also, local companies in capital‐ and research and development (R&D)‐intensive industries experience larger positive FDI spillovers. For these reasons, government policies should aim to attract FDI, especially in the aforementioned industries.     

Gross domestic product growth,volatility and regime changes nexus: the case of Portugal

This paper provides evidence of the behavior of GDP growth volatility in Portugal over the period from 1961 to 2016 with the main objective of measuring the degree of asymmetry of GDP growth rates volatility across the business cycles and its persistence over time. The methodological setting benefits from the most recent developments that recommend the consideration of structural changes in both the mean and variance and asymmetric reactions of volatility to positive and negative shocks. The results document structural changes and significant reductions of GDP growth rates volatility consistent with the “Great Moderation” phenomenon and reveal that the impact of negative shocks on volatility exceeds that of positive shocks more than 4 times over the sample period. Moreover, these asymmetries follow a rather stable pattern over the sample period, suggesting that the Portuguese economy has not been able to reduce its growth vulnerability to cyclical fluctuations.     

Selection of standards for digital television: The battle for Latin America

This paper analyses the implementation of Terrestrial Digital Technology (TDT) standards in Latin America. The analysis suggests that while some governments have chosen the standard attending to their industrial objectives, others have been influenced by the relevance of network externalities and scale economies and by the political and commercial relationship with their neighbours. The discussion about the technical characteristics of the systems was only relevant in the first years of the process, when the leading countries of the region had still not made their selection. Brazil decided to create its own version of the Japanese ISDB standard in 2006, and in the following years it has persuaded a significant part of the continent to choose it. Another block of countries has adopted the US ATSC standard. The most prominent case is that of Mexico, which has a preferential access to the US market. Only three countries have chosen the European DVB standard, the most widely used standard in the world. Colombia has tried to lead its introduction in the continent, but the results so far have been meagre.     

Explaining the Strategic Groups–Firm Performance Relationship: A Multilevel Approach Applied to Small and Medium‐Sized Hotel Companies in Spain*

One of the main research questions in the field of strategic management is why firms obtain different performance levels. This paper answers this question from the strategic groups approach. This paper analyzes the linkage between strategic groups and firm performance offering a multilevel analysis about the relative importance of intergroup and intragroup performance differences based on the use of hierarchical linear models. The results show that intragroup differences explain firm performance better than intergroup differences.     

How happiness mediates the organizational virtuousness and affective commitment relationship

Recent moral and financial collapse of high profile organizations around the world led the business community, the popular and business press, and researchers to rediscover the worthiness of organizations' virtues. Aiming to contribute to this momentum, this empirical study investigates how perceptions of organizational virtuousness (OV) predict affective well-being (AWB) and affective commitment (AC). Two hundred five individuals participate. The findings show that perceptions of OV predict AC both directly and through the mediating role of AWB. The study suggests that fostering organizational virtuousness (e.g., through honesty, interpersonal respect, and compassion; combining high standards of performance with a culture of forgiveness and learning from mistakes) improves employees' AWB and promotes a more committed workforce. Considering these findings and mirroring the growing contributions of the positive psychology, positive organizational behavior, and positive organizational scholarship movements, the study suggests that a “positive-people-management” perspective should be considered, both by practitioners and scholars.