Motivation for bilateral aid allocation: Altruism or trade benefits

This paper argues that OECD countries allocate more aid to recipient nations who import goods in which donor nations have a comparative advantage in production. The estimates indicate that a substantially larger amount of aid is provided to recipients who import capital goods, while imports by other category groups have no significant effects. Given that developed donor nations are major producers and exporters of capital goods, this result at least partially supports their trade benefits motive. Donors also appear to be more concerned about alleviating physical miseries (infant mortality) and rewarding good human rights conditions, but less towards reducing economic hardships (poverty). Moreover, the usual political and strategic considerations of donors continue to be the major determinants of aid allocation even in the Post Cold War era.     

Moving beyond the mechanistic structures: The role of inclusive leadership in developing change‐oriented organizational citizenship behaviour

In this study, we explore the relationship between inclusive leadership and change‐oriented organizational citizenship behaviour (OCB) with the mediating roles of behavioural integrity and trust in leadership. Data were collected from 151 supervisor–subordinate dyads from small and medium enterprises in Pakistan. The results revealed that inclusive leadership is positively related to change‐oriented OCB. Our study reaffirms the indirect effect of the inclusive leadership on change‐oriented OCB via behavioural integrity and trust in leadership. Finally, the results supported the chain of causality: sequential mediation of behavioural integrity, and trust in leadership between inclusive leadership and change‐oriented OCB. Causal attribution theory is used to support the findings. Implications for theory and practice are discussed.     

Pricing of time-varying liquidity risk in Finnish stock market: new evidence

Using two recently developed illiquidity measures, we estimate a conditional version of liquidity-adjusted capital asset pricing model (LCAPM), which allows for a time-varying decomposition of the total illiquidity premium into a level component and three risk components. The total estimated annualized illiquidity premium for the Finnish equities during 1997–2015 is 1.13–1.90% depending on the illiquidity measure. Of the three systematic liquidity risk components, risk arising from hedging of wealth shocks is the most important followed by commonality in liquidity risk, whereas flight to liquidity risk is not significantly priced in the Finnish stock market. Our results show that the liquidity risk is time varying, therefore the models estimating the risk-return relationship should address the issue of conditionality.     

Impact of abusive supervision on deviant work behavior: The role of Islamic work ethic

In this article, we examined the relationship between abusive supervision and deviant workplace behavior and the moderating role of an Islamic Work Ethic. Three hundred and thirty‐six employees in different organizations (specializing in software development, medicine, law enforcement, telecommunication, pharmaceutics, and banking) across Pakistan completed our questionnaire. The results revealed that abusive supervision was positively related to deviant workplace behavior. Moreover, the moderation of an Islamic Work Ethic on the relationship between abusive supervision and deviant work behavior was confirmed. The study contributed in many ways. It expanded literature by revealing a weaker relationship between abusive supervision and deviant behavior when Islamic Work Ethic (IWE) was high. It also tested the conservation of resources theory by providing a plausible reasoning of the role of IWE in employee motivation. By integrating IWE as a resource in the workplace, practitioners would learn that the proper use of resources would produce satisfied workers who would not indulge in deviant workplace behaviors.     

A comparison between North and South business ethics: the concepts of Renzhi and Fazhi in China

The purpose of this study is to compare the ethical standards of business practitioners of Northern provinces of the People’s Republic of China (PRC) who follow the ‘rule by man’ (i.e. the Renzhi system) versus those of southern provinces who follow the ‘rule by law’ (i.e. the Fazhi system). Our Shanghai survey represented the south Chinese sample, and our Shijiazhuang mailing represented our north Chinese sample. We received 95 completed responses for the former and 102 completed responses for the latter. Our results found that the south Chinese practitioners were more likely to be idealistic, possessed virtue epistemic traits and were more sensitive to ethical practices than north Chinese practitioners were.     

Determinants of industrial development: a panel analysis of South Asian economies

Quality & Quantity - A well performing industrial sector plays an important role in poverty mitigation, unemployment reduction, trade promotion, exchange of goods and services, increased per...     

The dynamic dependence between stock markets in the greater China economic area: a study based on extreme values and copulas

This study employs the dynamic copula method and extreme value theory to investigate the dependence structure between pairs of greater China economic area (GCEA) stock markets consisting of Shanghai (SHSE), Shenzhen (SZSE), Hong Kong (HKSE), and Taiwan (TWSE) stock exchanges from July 2000 to June 2017. We also examine the impact of financial crisis on the dependence structure by considering the global financial crisis and the Chinese stock market crash (2015–2016). Many studies have shown that the benefits of portfolio diversification across the stock markets in the same region could be diminishing. However, it is interesting to see that the diversification benefits appear to be viable for investing in some GCEA pairs of stock markets (SHSE–TWSE and SZSE–HKSE).     

Spectral Risk Measures: Properties and Limitations

Spectral risk measures (SRMs) are risk measures that take account of user risk-aversion, but to date there has been little guidance on the choice of utility function underlying them. This paper addresses this issue by examining alternative approaches based on exponential and power utility functions. A number of problems are identified with both types of spectral risk measure. The general lesson is that users of spectral risk measures must be careful to select utility functions that fit the features of the particular problems they are dealing with, and should be especially careful when using power SRMs.

Asymmetric effect of exchange rate volatility on India's cross‐border trade: Evidence from global financial crisis and multiple threshold nonlinear autoregressive distributed lag model

This paper examines the asymmetric effect of exchange rate volatility on India's cross‐border trade with its major trading partners: Japan, Germany, the United States, and China. We extend previous studies in two ways. First, we examine whether global financial crisis changes the asymmetric effect of exchange rate volatility on India's cross‐border trade. Next, we divide exchange rate volatility into quintiles and examine the effect of each quintile on cross‐border trade by using the multiple threshold nonlinear autoregressive distributed lag (MTNARDL) model. Our findings from standard nonlinear ARDL (NARDL) indicate that the asymmetric relationship between exchange rate volatility and cross‐border trade changes as a result of global financial crisis. In addition, findings from MTNARDL indicate that in short‐run, exchange rate volatility symmetrically affects India's cross‐border trade with all sample countries whereas in long‐run it asymmetrically affects cross‐border trade. Overall, these findings are very important for policy implications and open a new dimension to exchange rate volatility and trade flows.