Mutual fund flows and investors’ expectations in BRICS economies: Implications for international diversification

This paper empirically examines the relationship between different classes of mutual funds, measures of investors’ expectations and business cycle movements in the BRICS markets over the 1996Q1-2017Q3 period. Applying the Panel Vector Autoregressive (PVAR) model in a Generalized Method of Moments (GMM) setting, the results suggest a strong causal relationship between mutual fund flows and measures of investors’ future expectations. In particular, fund flows are forward-looking and assist in forecasting real economic conditions. Moreover, investors choose to invest in riskier funds when economic conditions are good, while they prefer safer options in poor economic situations. These findings have important implications for international diversification.     

The private placement of debt and outside equity as an information revelation mechanism

We view debt and outside equity as serving to elicit credibleinformation from different specialists about the value of anenterprise in its various uses. The equity valuation specialistprovides a price forecast for equity that reveals informationabout the value of the enterprise in its primary use. The debtvaluation specialist provides a price forecast for debt thatreveals information about the value of the enterprise in itsalternative use. The prices forecast by the valuation specialistscredibly reveal their private information because they are requiredto buy the associated claims at the forecast prices, therebybonding their valuations.     

How should managers treat ethics in international business?

Business ethics concern the consideration of moral in corporate decision making. International managers may be confronted with a variety of ethical dilemmas, usually due to differences among national markets in what constitutes legal or acceptable practice. Beliefs about what constitutes ethical business behavior commonly stem from one of four moral philosophies: teleology, deontology, the theory of justice, and cultural relativism. A framework incorporating all four is presented here which should provide a useful decision tool for international managers. An application of the framework and the complexities associated with it are presented next. We conclude that an effective integration of the company's perspective on ethics and the business behavior of the employees is critical and that it depends on top management, and the entire organization, demonstrating that they are serious about ethical business behavior on an ongoing basis. © 1998 John Wiley & Sons, Inc.     

Neighbors follow early adopters under stress: panel data analysis of submergence‐tolerant rice in northern Bangladesh

The benefits of a stress‐tolerant crop become visible under the stresses that the crop is tolerant against. We investigate the adoption of submergence‐tolerant rice in northern Bangladesh by using panel data of 461 households, interviewed in 2013 and 2015. The sample households were randomly selected in 31 villages where submergence‐tolerant rice seeds were given to a small number of farmers in each village. The results from the household fixed‐effects model indicate that submergence in the previous year increased the adoption of submergence‐tolerant rice. The adoption impact was larger among farmers who were neighbors of early seed recipients. Our results suggest that being neighbors of early seed recipients may have helped the neighboring farmers observe the benefits of the submergence‐tolerant rice under submergence. The results indicate the importance of the information flow from early recipients to neighboring farmers.     

Business Strategy and Labor Investment Efficiency*

This paper examines the relation between business strategy and labor investment efficiency. Since business strategy affects both the agency problem and firm‐level uncertainty, as well as the overall shape of corporate behavior, we would expect the efficiency of labor investment to vary with the particular business strategy a firm pursues. Using a large sample of US data, we find that firms having a prospector‐type business strategy are associated with inefficient labor investment, while those having a defender‐type business strategy are associated with efficient labor investment. We provide evidence that uncertainty, rather than the agency problem, causes prospector‐type firms to exhibit inefficient labor investment. Finally, we document that inefficient labor investment by prospectors leads to relatively low profitability in subsequent periods. These findings are robust when subjected to a series of sensitivity tests.     

Determinants and consequences of financial distress: review of the empirical literature

We synthesise the empirical literature on the determinants and consequences of financial distress, critique the findings and offer suggestions for future research. We categorise these indicators into (i) firm-level fundamental determinants, (ii) macroeconomic determinants and (iii) firm-level corporate governance determinants. We categorise the consequences into (i) financial reporting and auditing consequences, (ii) firm-level operational consequences, (iii) capital market consequences and (iv) corporate governance consequences. We suggest that future research can make a more meaningful contribution, by developing more comprehensive models of predicting financial distress which will entail a departure from the current partial analysis to a more holistic complex analysis.     

Business strategies and annual report readability

This study investigates the association between firm-level business strategy and the readability of narrative disclosures in annual reports. As business strategy affects the information environment and financial performance of firms, we expect the readability of narrative disclosures to vary with the particular business strategy that a firm pursues. In accord with this expectation, we find that firms with prospector-type business strategies produce less readable narratives, while those with defender-type business strategies produce more readable narratives. We also document that the association between strategy and readability is partially mediated by organisational performance, although the mediation effect is rather modest. These findings are robust when subjected to a series of sensitivity tests.     

Financial Consumer Protection Regime in Malaysia: Assessment of the Legal and Regulatory Framework

This paper examines the status of the legal and regulatory framework for consumer protection in Malaysia, an emerging economy. Using leximetrics and notions of incomplete law, the paper explores the financial consumer protection regime in the country by examining two aspects of the legal framework: the legal infrastructure and typology of laws. The Malaysian legal framework for financial consumer protection is assessed in light of the good practices identified in international guidelines issued on the themes by OECD and the World Bank. The results highlight the complementary nature and different roles that laws, regulations, and supporting institutions play in achieving a comprehensive financial consumer protection framework in the country.     

How does the inclination to bicycle sway the decision to ride in warm and winter seasons?

Many cities are creating policies and programs aimed at expanding bicycling mode shares. Attitudes towards bicycling in combination with weather conditions, however, can strongly influence the decision to ride. In locations with wide annual seasonal variation, attitudes can radically alter demand on bicycle networks across the year. Though researchers have looked at weather impacts on bicycling, the link between attitudinal factors that might impact riding decisions and seasonal variation remains understudied. This paper investigates heterogeneous taste preferences about the inclination to bicycle for riders who ride only in the warm weather and those who ride all year long (including during severe winters). This research relies on survey data from Edmonton, Canada and presents results from a hybrid discrete choice model. After controlling for age, sex, education, income, the supply of bike lanes, and the latent variable “bicycling inclination,” the results indicate that attitudes have a significantly positive impact on the decision to ride across seasons. The findings suggest that public education and season-specific training programs—particularly aimed at adults and women—have the potential to increase bicycling all year around.     

Integrated educational management for the universities

The research model investigates the integrated form of educational management for the universities. To enhance the operations, generate quality outcomes for the well-being of the society, this exploratory study depicts the two wings for the universities in four aspects including education development, education assessment, research development and research assessment. For the better understanding of education and research wings of the universities, the researchers identify different factors namely programs establishments, university culture, faculty capabilities and facilities those have been formularized by the structural equation modeling （SEM） through AMOS. The survey questionnaire was developed and analyzed the reliability and validity of the tools. The conceptual model for the universities provides a novel approach for decision makers to review and appraise their performance toward fulfillment of ultimate goals, i.e. producing high-caliber graduates and high-impact research outcomes for the betterment of the society. This research represents two contributions to the society including human resource contribution and research contribution.