Frontier markets’ efficiency: mutual information and detrended fluctuation analyses

This study tests weak form efficiency in frontier markets. Mutual information and detrended fluctuation analyses are performed to assess global correlation and long range dependence in the stock markets of twenty three countries. The results indicate that Slovenia is the only case where there is evidence compatible with weak form efficiency. The relatively less inefficient markets are mainly located in Europe and America, and the relatively more inefficient mainly in the Middle East. This information is useful for investors, but also for the assessed countries’ regulators as they indicate that relevant impediments are preventing the exploitation of potential profitable opportunities.

     

Exploring the causes of the slowdown in remittances to Mexico

This article explores the slowdown of remittances to Mexico and the role that may have been played by some key variables from the United States economy. The findings show that several measures of United States economic activity and different proxies for the unemployment of Mexican nationals living in the United States do not appear to have a strong impact on remittance transfers. On the other hand, this study finds that United States housing variables do seem to affect remittance transfers. In particular, there is a special prominence of the impact shown by the number of housing starts in the United States. Overall, the results seem to suggest that there is not a single United States economic factor that is responsible for the decrease of remittances to Mexico but rather a combination of factors. Among these factors, the decrease in United States housing activity seems to play a major role.     

Collective bargaining in Portugal in the aftermath of the crisis: trends and prospects

This article examines the decline of collective bargaining in Portugal during the recent economic crisis and why, following significant improvements in the economic and political contexts, the number of collective agreements published each year remains lower than before. Drawing on theoretical work on institutional change by Streeck and Thelen (2005) and Baccaro and Howell (2017), it argues that industrial relations institutions in Portugal have been subject to an incremental but transformative process of liberalisation. The analysis of national data and in‐depth interviews with key informants reveals that serial legal amendments since the 1990's weakened unions, converted bargaining into a mechanism to introduce flexibility and wage austerity and reduced incentives for the parties to conclude agreements. While these changes were gradual, their consequences became clear during the crisis. By improving understanding of recent developments in Portuguese collective bargaining, the article enriches knowledge of processes of liberalisation of industrial relations in Europe.     

Chief executive officer ability,corporate social responsibility,and financial performance: The moderating role of the environment

This paper seeks to explore how chief executive officer (CEO) ability influences the economic impact of corporate social responsibility strategic decisions. Currently, the evidence on the impact of corporate social responsibility on the value of the company is mixed; in this paper, we aim to observe the moderate role played by this particularity of the CEO in the relationship between socially responsible commitment and financial performance. Our results identify that the most able CEOs make investments in social and environmental practices that lead to greater financial performance; in contrast, the less able CEOs can overinvest or underinvest in an opportunistic way for personal benefit at shareholders' expense. In addition, the role that CEO ability plays in social and environmental strategies is particularly pertinent in munificent environments that foment managerial discretion; in these contexts, high managerial ability leads to investment in socially responsible performance, which benefits shareholders by alleviating moral hazard.     

Polychoric versus Pearson correlations in exploratory and confirmatory factor analysis of ordinal variables

Given that the use of Likert scales is increasingly common in the field of social research it is necessary to determine which methodology is the most suitable for analysing the data obtained; although, given the categorization of these scales, the results should be treated as ordinal data it is often the case that they are analysed using techniques designed for cardinal measures. One of the most widely used techniques for studying the construct validity of data is factor analysis, whether exploratory or confirmatory, and this method uses correlation matrices (generally Pearson) to obtain factor solutions. In this context, and by means of simulation studies, we aim to illustrate the advantages of using polychoric rather than Pearson correlations, taking into account that the latter require quantitative variables measured in intervals, and that the relationship between these variables has to be monotonic. The results show that the solutions obtained using polychoric correlations provide a more accurate reproduction of the measurement model used to generate the data.     

Effects of dissatisfaction in tourist services: The role of anger and regret

Dissatisfied customers due to a service failure probably will switch the provider, will complain and/or will spread negative word-of-mouth. However, to what extent some specific emotions triggered by dissatisfaction can mediate between the latter and the previous mentioned behaviours? A sample of 359 users of restaurants and 308 users of hotel services has shown that, whereas anger has a significant influence on the three behaviours under study, regret only affects switching and negative word-of-mouth. Furthermore, slight differences between hotels and restaurants have been found because, in the case of restaurants, anger is not an antecedent of switching whereas regret has an inverse effect on complaining.     

International migration and universal healthcare access: evidence from Mexico’s ‘Seguro Popular’

Although ‘Seguro Popular’ (SP), a healthcare programme for the uninsured, has been in place in Mexico for more than a decade, its consequences for international migration both to and from the country have received little scholarly attention. Using the spatial variation in the programme’s coverage generated through the rollout over time, this paper examines the effects of SP on the number of emigrants and return migrants per household. Based on data from Mexico’s National Survey on Demographic Dynamics for 1997–2014, the analysis confirms that being affiliated to SP does not reduce the number of emigrants per household, but such affiliation is, however, positively related to the number of returnees per household. These results are valid across different subsamples of the population and time periods and are robust to omitted variable bias. Our findings have important implications for understanding the effects of social protection policies on international migration patterns.     

Commonality in the LME aluminum and copper volatility processes through a FIGARCH lens

Dynamic representation of spot and three‐month aluminum and copper volatilities is considered. Aluminum and copper are the two most important metals traded in the London Metal Exchange. They share common business cycle factors and are traded under identical contract specifications. The bivariate FIGARCH model, which allows parsimonious representation of long memory volatility processes, is applied. The results show that spot and three‐month aluminum and copper volatilities follow long memory processes, that they exhibit a common degree of fractional integration and that the processes are symmetric. However, there is no evidence that the processes are fractionally cointegrated. This high degree of commonality may result from the common LME trading process. © 2008 Wiley Periodicals, Inc. Jrl Fut Mark 28:935–962, 2008     

Die Balance zwischen Eigenverantwortung und gemeinschaftlichem Handeln für ein starkes Europa

The newly elected French president Macron now faces the challenge of reforming the French economy by increasing its competitiveness in order to decrease unemployment and to open new perspectives for a more prosperous economic future. The success of this endeavour is also of the utmost importance for Germany. The best support that Germany can offer to support French reforms consists of promoting the European integration process based on the subsidiarity principle. This can only be achieved by maintaining a balance between national responsibility and joint action and by choosing the right sequence of reform steps.