Localized capabilities and the internationalization of manufacturing activities by SMEs

In this paper it is argued that the internationalization of production through foreign direct investment (FDI) by small and medium-sized enterprises (SMEs) is influenced by local level idiosyncracies. Although SMEs suffer from inherent constraints to international growth (due to the scarce availability of financial and managerial resources), the presence of qualified localized capabilities strengthen and complement their competitive/ownership advantages, thus favouring their internationalization. These capabilities are related to the advanced specialized services available to the firms, the existence of a ‘marshallian atmosphere’, and an environment conducive to innovation and learning. However, it is argued that negative externalities stemming from protectionism-oriented public intervention discourage the international growth of firms and negatively influence the propensity of SMEs to internationalize. Empirical support for these premises is provided by this study of the Italian case over the decade 1986–1995.     

The Evaluation of University Departments. A Case Study for Firenze

Over the last two decades, the interest to assess the quality of university teaching and research has considerably grown. This paper presents a study concerning the evaluation of the departments of the University of Firenze using Data Envelopment Analysis. It shows several applications with different variables choices to assess the performance both in teaching and in research activities. The reliability of the preferred specification was verified with a heuristic experiment, using different variables and a different number of variables. Particular attention is given to the problem of data availability and quality (e.g. for research output assessment).     

Understanding the Relationship between Financial Development and Monetary Policy

In this paper we summarize the results of a broad exploratory empirical analysis where we relate the level of financial development with the effectiveness of monetary policy. The analysis is based on a panel of countries for which we calculate measures both of financial development and of monetary policy effectiveness. We look for statistically significant relationships between the indicators of financial development, the effectiveness coefficients, and other macroeconomic characteristics by estimating dynamic panels and performing a cluster analysis. We present our results in the form of a list of stylized facts that we consider deserve further attention.     

The structure of spot rates and immunization: Some further results

This paper estimates and tests a two-factor model of the term structure of interest rates based on the methodology developed by Elton, Gruber and Michaelly (1990) in an APT context. The model is then enlarged to allow its use for interest rate risk measurement through a duration vector. The results of the model using in-sample data are consistent with those obtained by Principal Components Analysis to explain the term structure behaviour. Finally, the model is tested using out-of-sample data, showing its superiority over a competing model based on the traditional Macaulay's duration.     

On the Measurement of Strength of Preference in Units of Money

We report an experimental study that aims to elicit monetary measures of strength of preference in choices involving pairs of risky prospects. Despite extensive testing to refine the instruments used, we find that these money measures are systematically biased upwards relative to subsequent binary choices. We discuss possible reasons for this bias and its broader implications.     

James Steuart and the making of Karl Marx’s monetary thought

Abstract

This paper analyses the influence of James Steuart on Karl Marx’s monetary thought. It deals more specifically with Marx’s rejection of an automatic mechanism that links variations in the quantity of money to their direct impact on prices. Steuart’s pioneering discoveries in economics inaugurate an anti-quantity theory tradition that Marx supported and which fed his own conception of money and credit. Here, we deal with the criticism of the assumptions of the quantity theory of money (QTM), the specifically social character of labour which creates exchange value, the distinction between the functions of money, the difference between income spending and capital advances, and the difference between simple circulation and reflux of money credit.     

How do corporate environmental policy and corporate reputation affect risk‐adjusted financial performance?

The current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.     

The Relationship Between Acculturation,Individualism/Collectivism,and Job Attribute Preferences for Hispanic MBAs*

ABSTRACT This research studied the influence of acculturation on the values of Hispanic MBAs in the USA and the effect these values have on job attribute preferences. As predicted, the less acculturated Hispanic MBAs had significantly higher collectivist values than either highly acculturated Hispanic or Anglo‐American MBAs. Surprisingly, acculturation was not related to individualism. As theorized, collectivistic, and not individualistic, values were significantly related to a preference for contextual job attributes. In contrast, individualistic, and not collectivistic, values were related to a preference for task‐related job attributes. The findings point to the importance of understanding an individual's level of acculturation and his/her specific values, rather than assuming differences based on ethnicity. In addition, the findings indicate that managers dealing with diversity within the USA or globally must understand their employees’ individualistic/collectivistic values before implementing any job design initiatives.