A BALANCE OF PAYMENTS ANALYSIS OF THE LATIN AMERICAN DEBT CRISIS

In this paper we offer a definition of a country "debt crisis" based upon the amount of new borrowing relative to the cost of servicing past debt. Policy implications for both debtor countries and their creditors are examined. An empirical application is made to Latin American countries, 1978–82. The causes of the debt problems created during this period are investigated with respect to the extent they were the result of rising interest rates vis à vis increased borrowing.     

Building entrepreneurial inter-firm networks in an emerging economy: the role of cognitive legitimacy

We take an organizational legitimacy perspective and use data from a large-scale nationally representative study on the state of small business in Saudi Arabia, in order to explore the antecedents to the formation of entrepreneurial ventures’ inter-firm networks in the context of an emerging economy (n?=?331). We argue that entrepreneurial ventures need to overcome a threshold of cognitive legitimacy in order to develop inter-firm ties with a diverse set of large, established firms. Results indicate that having a written business plan and a formal organizational structure are positively associated with the diversity of the new venture’s inter-firm network, while the education level of the entrepreneur does not have a significant effect. In addition, the effect of having a formal organizational structure is stronger for younger ventures. Implications are discussed.     

Authentic leadership and intrapreneurial behavior: cross-level analysis of the mediator effect of organizational identification and empowerment

Intrapreneurial activity is positively associated with the organizational growth, and the factors that stimulate such behaviors need to be identified. The general goal of this work is to explore the relationship of authentic leadership with employees’ intrapreneurial behavior and the intervening processes. A correlational study was carried out with 212 employees of Spanish companies, in which two cross-level mediation hypotheses were tested. The results obtained indicate that employees’ organizational identification and organizational empowerment both mediate the relationship between authentic leadership and employees’ intrapreneurial behaviors. In this work, we note the importance of including authentic leadership as an antecedent of intrapreneurship.     

Effects of time horizon and asset condition on the profitability of technical trading rules

In much of the literature, the debate over technical trading strategies has centered around the question of whether an actively managed portfolio, controlled by a technical indicator, can outperform a passively managed portfolio. Typically, the time horizon is considered to be years. Additionally, the trader is assumed to use a technical trading strategy that is independent of asset conditions. These assumptions may not correspond well with reality. Traders often have much shorter time horizons and may switch between rebalancing or trading strategies on the basis of perceived shifts in market condition. This paper presents a study of the profitability of technical trading rules as a function of asset state or condition. Several common technical trading strategies were run on 296 stocks over a 15 year period. Strategies were run with 1 month rolling time horizons, significantly shorter than those used in similar studies in the literature. Stocks were segmented based on volatility and volume, which allowed for the examination of a strategy’s performance in different asset conditions. Several strategies were demonstrated to have consistently better risk-to-reward ratios under specific asset conditions and short time horizons. This finding helps to explain why some practitioners implement technical trading strategies.     

Persistence and cyclical dependence in the monthly euribor rate

This paper analyses two well-known features of interest rates, namely their time dependence and their cyclical structure. Specifically, it focuses on the Euribor rate, using monthly data from January 1994 to May 2011. Two models are considered, one with fractional integration at the long run or zero frequency, and the other replacing the zero frequency with a cyclical one. The results indicate that the latter outperforms the former as well as other standard specifications. Future directions for research (such as nonlinearities, volatility behaviour, and multivariate models) are also discussed.     

Location determinants of high-growth firms

County-level location patterns of INC5000 companies provide one map of American entrepreneurship and innovativeness, and understanding the local factors associated with these firms’ emergence is important for stimulating regional economic growth and innovation. We draw on the knowledge spillover theory of entrepreneurship to motivate our regression model, and augment this theory with additional regional features that have been found to be important in the firm location literature. Zero-inflated negative binomial regressions indicate that these firms exist in counties with larger average establishment size, higher educational attainment and more natural amenities. Income growth, a mix of higher paying industries, and more banks per capita are associated with a smaller presence of these types of firms, all else equal. We conclude that the local conditions favouring high-growth firms are likely to be different from those favouring new firms in general, and that these conditions differ significantly in urban and rural areas and by industrial sectors.     

Enticing the Stork: Can we Evaluate Pro‐Natal Policies Before Having Children?

Aside from immigration, the only meaningful demographic lever available to policymakers attempting to moderate the rate of ageing is the birth rate. This article departs from previous analyses of pro‐natal policies by studying determinants of pro‐natal options ex ante, which represents an advantage for policymakers looking to craft policies with prior knowledge of whether or not a demographic policy will have a significant effect. Our multinomial regression model for a US sample involving college students shows that the preferred choice of pro‐natal incentive is dependent on gender, economic class, number of planned children and migrant status. We find that females are more likely than males to choose any pro‐natal incentive over no incentive. The highest odds for increasing planned number of children are for maternity leave and parental leave options. Respondents associating themselves with the poorest economic class are more likely to choose daycare or government grant as pro‐natal options.     

Understanding the Social Role of Entrepreneurship

There is a need to rethink and redefine the social value added of entrepreneurial activities to society. In this paper we develop five pillars on which the evolving social role of entrepreneurship can rest and have its impact: (1) connecting entrepreneurial activities to other societal efforts aimed at improving the quality of life, achieving progress, and enriching human existence, (2) identifying ways to reduce the dysfunctional effects of entrepreneurial activities on stakeholders, (3) redefining the scope of entrepreneurial activities as a scholarly arena, (4) recognizing entrepreneurship's social multiplier, and (5) pursuing blended value at the organizational level, centring on balancing the creation of financial, social and environmental wealth. In a final section we discuss implications for practices and for further research.