R&D capabilities,intellectual property strength and choice of equity ownership in cross-border acquisitions: evidence from BRICS acquirers in Europe

The aim of the study is to investigate two relatively underexplored factors, namely, the R&D (research and development) capabilities of target firms and the strength of intellectual property (IP) institutions in target economies, that influences the choice of equity ownership in cross border acquisitions (CBAs) undertaken by multinational enterprises (MNEs) from BRICS (Brazil, Russia, India, China and South Africa) economies. They developed the key hypothesis on foreign market entry through CBAs by incorporating insights from transaction costs economics, the resource-based view and institutional theory to investigate the determinants of full versus partial equity ownership. Using logistic regression estimation methods to a sample of 111 CBA deals of BRICS MNEs in 22 European countries, it was found that BRICS MNEs were likely to pursue full rather than partial acquisition mode when target firms have high R&D capabilities. However, the greater the degree of strength of IP institutions in target economies and higher the target firms’ R&D capabilities, the more likely it is for BRICS MNEs to undertake partial, rather than, full acquisition mode. They provided interesting theoretical insights and managerial implications that might underlie some of the key findings on CBAs by emerging market MNEs.     

THE PREVENTION OF FINANCIAL CRIME WITHIN AN ISLAMIC LEGAL FRAMEWORK1

The risks associated with financial crime threaten to undermine the stability of the international financial system. This paper explores the Islamic legal approach to the prevention of financial crime and how this can be integrated into international regulatory frameworks.     

The “hidden hand” behind the resilience of the stateless economy of Somalia

This paper provides a framework of analysis of economic markets in stateless Somalia. It argues that the informal market that sustained private sector activities under the repressive policies of Siad Barré's government has provided a functioning system to the economy. In small communities that achieved internal law and order, their economy boomed in an unprecedented free-market environment, and the no-government situation has proven to be far better than the repressive government institutions and policies of Barré's era. However, the economic expansion is chaotic and there is a strong new demand for an accountable and effective government that could provide essential public goods for sustainable economic development.     

Non‐Neutral and Asymmetric Effects of Neutral Ratings: Evidence From eBay

Seller ratings help overcome adverse selection problems in online transactions between strangers. Using eBay data, we find that auction outcomes are sensitive toward not only positive and negative seller ratings but also neutral ratings. We find that (1) buyers utilize neutral ratings to sort among otherwise identical sellers and value their products and (2) contrary to eBay's opinion, depending on whether a seller is top‐notch or not, neutral ratings can be detrimental or beneficial; for sellers with higher proportions of positive ratings, an increase in neutral ratings decreases sales. For sellers with higher proportion of negative ratings, an increase in neutral ratings increases both sales and revenue. Copyright © 2014 John Wiley & Sons, Ltd.     

Why households buy bottled water: a survey of household perceptions in the Philippines

This study investigates the determinants of household buying decisions to purchase bottled water or purified water from refilling stations among households in Metro Cebu, Philippines. A survey of 360 households was conducted to obtain data on household sources of drinking water, household bottled water buying behaviour and perceptions of water quality. A binary probit model was used to examine the effects of socio‐economic and perception‐based variables on the likelihood that a household regularly bought bottled or purified water. Results show that households that perceived their primary source of water, whether from the tap or from other sources, to be unsafe were more likely to buy bottled or purified water. Education of household heads, the presence of children ages 0–5 years, household size and price were also found to have significant effects. Income, however, was not found to have influenced the decision to buy. Having piped access to the local water district and knowledge of government assurances about water safety were also not found to have a significant impact.     

Braverman and the Structure of the U.S. Working Class: Beyond the Degradation of Labor

The fortieth anniversary of Harry Braverman’s Labor and Monopoly Capital is the occasion here for a reassessment of his work as a whole. Braverman’s analysis of the degradation of work is shown to have been only a part of a much larger argument he was developing on the structure of the U.S. working class. Building on his pioneering empirical research into occupational composition, a new empirical assessment of the structural evolution of the U.S. working class over the last four decades is provided, throwing light on current problems of unemployment, underemployment, and socially wasted labor—and the rights of labor.     

An investigation of internal marketing and its effects on employees in the banking sector in Saudi Arabia

A survey of the impact of internal marketing on perceptions of organizational commitment to employees and employee identification with their employers was conducted among a convenience sample of Saudi Arabia banking employees. The results indicate that internal marketing impacts perceptions of organizational commitment to employees (PBCMT), and rewards, employee empowerment and PBCMT impact employee identification with the organization (EBID). In addition, PBCMT partially mediates the internal communications – EBID and employee empowerment–EBID relationships, and it fully mediates the training – EBID and rewards–EBID relationships. Research and managerial implications are discussed, as are limitations and suggestions for future research.     

Post 9-11 U.S. Muslim Labor Market Outcomes

Using a difference-in-differences framework and micro data from the Current Population Survey-Merged Outgoing Rotation Group Files (1999 to 2004), this paper estimates the impact that the 9-11 terrorists attacks had on the U.S. labor market outcomes of individuals with nativity profiles similar to the terrorists. We find that shortly after the attacks, the employment-population ratios and hours worked of very young (ages 16 to 25) Muslim men fell. By 2004, most losses had begun to dissipate. The employment-population ratios and hours worked of older Muslim men experienced little deterioration. We find no effect of the U.K.’s July 2005 London bombings on the labor market outcomes of U.S. Muslims.