Firm age and liquidity ratio as predictors of firm growth: evidence from Indian firms

The result of the study shows that liquidity ratio and firm age increases the probability of firm becoming high growth or low growth. However, the result indicates that the chances of being high-growth firm are higher for young firms. Quantile results show that the coefficient of liquidity ratio switches from negative in lower quantiles to become positive in upper quantile with the strong positive effect and firm age coefficients are largest in the lower quantiles. These results also confirm the probit result as per which firm age is negatively significant with the growth of the firm. The present study considers an innovative approach that considers balance sheet issued the year prior to the observation of rapid growth as predictors of firm growth (similar to the credit scoring models, i.e. the Z-score model, to measure the probability of default).     

Effects of the New Basel Capital Accord on Bank Capital Requirements for SMEs

Using data from three countries (US, Italy and Australia) and surveying related studies from several other countries in Europe, we investigate the effects of the New Basel Capital Accord on bank capital requirements for small and medium sized enterprises (SMEs). We find that, for all the countries, banks will have significant benefits, in terms of lower capital requirements, when considering small and medium sized firms as retail customers. But they will be obliged to use the Advanced IRB approach and to manage them on a pooled basis. For SMEs as corporate, however, capital requirements will be slightly greater than under the existing Basel I Capital Accord. We believe that most eligible banks will use a blended approach (considering some SMEs as retail and some as corporate). Through a breakeven analysis, we find that for all of our countries, banking organizations will be obliged to classify as retail at least 20% of their SME portfolio in order to maintain the current capital requirement (8%). JEL classification: G21, G28     

Education and training in development

Education and training are playing an important role in the development process of the less developed countries. So far, however, the traditional systems of education have been primarily of service to the privileged strata. New systems must be found for the future which fit in with development conditions and bear upon the qualitative, as well as the quantitative, aspects of education.     

Corporate culture and IPOs

This study documents corporate culture at the time of initial public offering (IPO) and the relationship between corporate culture at the time of IPO and firm financial performance. Based on a sample of 1157 US firms that went public between 1996 and 2011 and performance information through 2016, the data provide strong evidence that regional culture, industry characteristics, and pre-IPO financing play key roles in explaining a firm's cultural orientation. Moreover, the data indicate that IPO firms with a highly competition- and creation-oriented culture experience higher profitability and less risk of financial distress than other IPO firms.     

Resource-based local development and networked core-competencies for tourism excellence

The purpose of this article is to propose a complementary approach to the analysis of tourism systems which is grounded on theoretical frameworks deriving from the fields of dynamic capabilities and destination management. In particular, the paper explores the relationship between the networking approach of tourism firms and the development of tourism core-competencies. This perspective aims at providing a development path for policy maker actions based on the appraisal of local resources and tourism competencies. The empirical section studies an Italian area characterized by a high potential in terms of tourism resources but also, especially in the past, a medium-low relevance regarding the tourism economy. However, recently this area has shown a very interesting entrepreneurial dynamicity in tourism and cultural sectors. It is an appropriate field of research for the analysis regarding the determinants of tourism core-competence development.     

60. Geburtstag von Manfred Knoche

Ohne Zusammenfassung     

Regional output growth synchronisation with the Euro Area

This paper investigates the patterns and determinants of the co-movement of economic activity between regions in the European Union and the Euro Area. We use a panel dataset of 208 regions over the period 1989–2002 and estimate a system of simultaneous equations to analyse the impact of regional trade integration, industry specialisation and exchange rate volatility on regional output growth synchronisation with the Euro Area. We find that deeper trade integration with the Euro Area had a strong direct positive effect on the synchronisation of regional output growth with the Euro Area. Industrial specialisation and exchange rate volatility were sources of cyclical divergence. Industrial specialisation had however an indirect positive effect on regional output growth synchronisation via its positive effect on trade integration, while exchange rate volatility had an indirect additional negative effect on regional output growth synchronisation by reducing trade integration.