Effectiveness of Export Support Programs: Impact on the Relational Capital and International Performance of Early Internationalizing Small Businesses

This article evaluates the impact of public export support programs on the internationalization of early internationalizing small businesses. We build and test a conceptual model of the link between export support services and early internationalizing firms’ relational capital and international performance in terms of both economic international performance and the number of foreign markets in which they are present. The results show that financial support is effective in enhancing firm performance only in terms of the number of foreign markets but not in terms of economic performance, that informational support is effective through its influence on relational capital, and that operational support is not. Our findings contrast with those of previous studies on firms that internationalize through stages and suggest that new export support services adapted to early internationalizing firms are needed.     

Securitized markets,international capital flows,and global welfare

We study the effect of collateralized lending and securitization on international capital flows and welfare in a two-country general equilibrium model with idiosyncratic investment risk. The low-margin country (Home) endogenously supplies more safe assets and enables more risk sharing. Upon financial integration, capital flows from Foreign (high-margin country) to Home, leading to lower interest rates and a larger global supply of safe assets. Unlike in standard models with partial equity issuance, in our model, Home can lose from financial integration due to the endogenous reduction in risk sharing and aggregate shocks can generate large gross capital flows.     

The Covered Interest Parity Puzzle and the Evolution of the Japan Premium

A disturbance or breakdown of the first stage of the monetary transmission mechanism tends to be synonymous with high and volatile money market risk premia. Such market indicators include violations of the covered interest parity (CIP). This was not only evident during the financial crisis of 2007–08, but already during the Japanese banking crisis in the late 1990s, when it became referred to as the “Japan Premium.” Despite extraordinary policy measures by central banks in recent years, however, deviations from the CIP indicate continuing or even elevated stress in the international monetary system. This paper examines a string of distinct, but closely interconnected, assumptions and perceptions regarding CIP arbitrage. By doing so, it not only sheds some fresh light on the recent “CIP puzzle” but also on the era of the Japan Premium during the 1990s and its aftermath.     

Impacts of peers’ unethical behavior on employees’ ethical intention: Moderated mediation by Machiavellian orientation

Research suggests a direct negative relationship between peers’ unethical behavior and employees’ ethical intention. But several possible mechanisms might explain this relationship in more detail. For example, Machiavellianism is a personality trait characterized by interpersonal manipulation and the use of unethical means to achieve certain self‐interested ends, whether useful or pleasant. This article adopts an Aristotelian understanding of philia, related to three goods on which human relationships rest: useful, pleasant, and honest. We propose that Machiavellianism, a self‐interested, pragmatic personality orientation, might explicate the relationship between peers’ unethical behavior and ethical intention. The results of a structural equation model applied to a sample of 436 banking employees in Spain reveals that Machiavellianism partially mediates the relationship between peers’ unethical behavior and employees’ ethical intention. We also find that with a greater level of peers’ unethical behavior, the negative effect of Machiavellianism on ethical intention increases, and that when peers’ unethical behavior is nonexistent, the negative effect of Machiavellianism on ethical intention disappears. These findings advance current literature by revealing that unethical peers can indirectly influence ethical intention, through shaping Machiavellianism. Our study is also the first to show that pairing high Machiavellians with ethical peers can help to cancel out the negative influence of Machiavellianism on ethical intention.     

How online trust evolves over time: The role of social perception

Using customer service scenarios in an online retail context, the current study examines how cognitive and affective trust develop over time and how service failure negatively impacts trust, along with the trust restoration opportunities provided by recovery. Study 1 findings reveal that the relationship between Web site social perception and affective trust is stronger for repeat visitors than for first-time visitors. Study 2 findings indicate that failure timing and recovery duration play important roles in service failure situations. Overall, the results demonstrate that consumer cognitive and affective trust develop through the number of interactions with a retail Web site over time and that increased Web site social perceptions facilitate the trust-building process.     

Fat tails and spurious estimation of consumption‐based asset pricing models

The standard generalized method of moments (GMM) estimation of Euler equations in heterogeneous‐agent consumption‐based asset pricing models is inconsistent under fat tails because the GMM criterion is asymptotically random. To illustrate this, we generate asset returns and consumption data from an incomplete‐market dynamic general equilibrium model that is analytically solvable and exhibits power laws in consumption. Monte Carlo experiments suggest that the standard GMM estimation is inconsistent and susceptible to Type II errors (incorrect nonrejection of false models). Estimating an overidentified model by dividing agents into age cohorts appears to mitigate Type I and II errors.