Organizations and Markets in Emerging Economies
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Poverty Effects of Remittances: Evidence in CEE Countries
No full textThe countries with a transition economy in the EU have experienced rapid growth of labour migration and remittance flows during the last two decades. Remittances are improving household economic welfare, so it is important to evaluate how these financial flows may affect the poverty situation, as CEE countries are facing levels of poverty and inequality way above the EU average. The paper examines the impact of remittances on poverty, using the panel of seven CEE countries considered as advanced transition economies over the period of 2006-2015. Pooled OLS, fixed effects, random effects, and 3-stage least squared estimators are used to estimate the poverty effects of remittances. The results show that remittances have a significant impact on three out of four poverty measures. Taking into consideration the endogeneity problem, it is estimated that a 10-per cent increase in remittances to GDP ratio will lead to a decline, on average, by 5.5 per cent in poverty headcount, and also by 3.7 per cent in poverty gap and 0.6 per cent in the risk of poverty. These results can be important for defining the policy measures on providing more efficient management of remittances
Intellectual Capital Disclosures and Corporate Governance in Gaining the Firms’ Non-Discretionary Profits and Market Value in ASEAN-5
Get PDFThis study aims to find the effect of Intellectual Capital Disclosure (ICD) and Corporate Governance (CG) on firm performance in ASEAN countries. Firm performance is divided into accounting-based performance and market-based performance. The accounting-based performance consists of Non-Discretionary Net Income (NDNI) and Cash Flow Operations (CFO), while market-based performance consists of Tobin’s Q and Market-to-Book Ratio (MBR). The measurement of ICD components uses a scoring system. The sample of this research is 112 firms in the industrial technology listed in the stock exchange of ASEAN-5 between 2011 and 2018. This study finds that NDNI increases when firms increase RCD quality. No ICD components are capable of affecting CFO. On the other hand, SCD is a variable that decreases NDNI value. BGEN is found to reduce NDNI and CFO values. RCD is also the only ICD component that can increase market-based performance, especially MBR. HCD consistently lowers the values of MBR and Tobin’s Q. BSIZE holds a significant role in raising Tobin’s Q score, and BGEN lowers MBR instead. BIND has no part in the market-based performance, but it significantly lowers NDNI value. This study adds another view to ICD’s benefits from two firm performance perspectives, accounting-based performance and market-based performance, especially in ASEAN-5
Financial Performance, Exchange Rate, and Firm Value: The Indonesian Public Companies Case
Get PDFTransactions between countries require a stable exchange rate. When the exchange rate of the country experiences uncertainty, then this will influence the company’s financial performance and even affect the company’s market value. This study aims to look for the direct influence of the company’s financial performance as an independent variable and the firm value as a dependent variable within the investor perspective, also including the exchange rate factor as a moderating variable. Investors could probably learn about information on the ups-and-downs of the Indonesian rupiah against foreign currencies before their investment decisions, even though financial performance substantially influences the company’s market value. The sample in this study was 50 companies within four years of observation. Data processing was carried out by the Eviews statistical application. The results showed that the financial performance, which is proxied by the capital structure, affects firm value, but not profitability. The impact of exchange rate moderation also occurs in the relationship of capital structure and firm value, while the moderation effect on profitability and firm value is not proven. This study provides information that exchange rates influence investment interests upon investors’ analysis of the financial performance of the capital structure, but not profitability
Financial Constraint on R&D Activities in Vietnamese Universities – an Empirical Research
Get PDFR&D is one of the most important roles of universities. Many previous studies examined the impact of financial factor on university R&D activities but reached no consensus view. This article contributes to the current literature by exploring how financial factor and other factors influence R&D activities in Vietnamese universities. The author employed a survey dataset from the Association of Vietnam universities and colleges to check whether unfavourable financial condition hindered university R&D activities. Using structural equation modelling, the author found empirical evidence that financial constraint could hamper R&D productivity. On the other hand, favourable conditions in management, communication, infrastructure and human resources were found to improve R&D activities. This led to some policy suggestions to improve R&D activities in Vietnam higher education institutions
Fit to Last? Investigating How Person-Job Fit and Person-Organization Fit Affect Turnover Intention in the Retail Context
Get PDFRetail supermarket chains face high turnover that creates costs and compromises customer satisfaction. Turnover intention is influenced by the fit or misfit of employees to the job and the organization, as well as their satisfaction with the job and the commitment to the organization. This paper investigates the relationship of person-job (P-J) and person-organization (P-O) fit with job satisfaction and organizational commitment. A total of 211 questionnaires from employees in the retail supermarket chains in Kosovo were collected. Regression analysis is used to test the relationships between fit constructs and work attitudes as outcomes and their effect on turnover intention. Bootstrap mediation is used to test the direct and indirect effect of fits on turnover intention. Results show that person-job fit and person-organization fit have a significant positive effect on job satisfaction and organizational commitment. All these constructs have a negative effect on turnover intention. P-J and P-O fit have a direct negative effect on turnover intention, which is also partially mediated by job satisfaction and organizational commitment. This paper supports previous evidence that P-J and P-O fit have a positive effect on work attitudes and eventually reduce turnover intention. The direct effect of fits on turnover intention is stronger than the indirect effect, mediated by job satisfaction and organizational commitment
Acquisition Behavior of Emerging Versus Developed Market Multinationals
Get PDFoai:ojs.www4063.vu.lt:article/14128The purpose of this paper is to investigate how emerging and developed market multinationals (EMMs and DMMs) differ in their acquisition behavior (vis-à-vis the choice of partial versus full acquisitions) when entering a developed market economy, Japan. We hypothesize that EMMs prefer partial acquisitions, whereas DMMs prefer full acquisitions due to what we call the country-of-origin effect. Additionally, we hypothesize that this country-of-origin effect is more pronounced for smaller firms. The results, based upon 224 strategic cross-border acquisitions in Japan, support these two hypotheses. This study contributes to the literature on EMMs
Locus of Control as a Moderator in the Relationship Between Job Satisfaction and Organizational Commitment: a Study of Indian It Professionals
Get PDFIn recent times, increasing interest has been shown by OB and HR practitioners in the area of organizational commitment (OC). This interest stems from the fact that the committed workforce is considered beneficial for organizational functioning and effectiveness. The present study was conducted to explore the direct relationship of job satisfaction and locus of control (LOC) on organizational commitment. The purpose of the study was also to see if locus of control moderates the relationship between job satisfaction and organizational commitment. The study was conducted using structured questionnaires for measuring the above mentioned variables. The sample of the study was 449 Indian IT professionals. Hierarchical multiple regression showed that job satisfaction and internal locus of control was positively related to organizational commitment. Also, locus of control was found to moderate the relationship between job satisfaction and organizational commitment such that the relationship was stronger for internals than for externals. The present study has important implications for human resource development in the IT sector. Managers should use strategies to achieve high job satisfaction and organizational commitment. They must be aware of the moderating role which different personality attributes play in the relationship between job satisfaction and organizational commitment
Size Effect in Market-wide Liquidity Commonality: Evidence from the Indian Stock Market
Get PDFLiquidity commonality and the co-movements in trading costs related to such commonality have remarkable implications in market microstructure. Analyzing and identifying such commonality will enable the investor and policy maker to discover evidence regarding the inventory risks and asymmetric information in uencing individual securities’ liquidity. Thus, this study aims at documenting the liquidity commonality and measuring its extent in the Indian stock market. Employing fourteen liquidity measures a ributed to the cost, quantity, time, and multidimensional aspects of liquidity, it empirically proves the existence of co-movements among market-wide liquidity and the individual securities’ liquidity. The study also shows the presence of a size effect in liquidity commonality in Indian stock market. It is found that the slope coefficient indicating the interface between market-wide liquidity and individual securities’ liquidity generally increases with size
Foreign Ownership and Stock Return Volatility in Vietnam: the Destabilizing Role of Firm Size
Get PDFThis study aims to examine the relevance of foreign ownership to stock return volatility in the Vietnam stock market over ten years (2008 - 2017). After applying the fixed effects regressions and the extended instrumental variable regressions with fixed effects, we find that foreign ownership decreases the volatility of stock returns. However, the stabilizing impact of foreign ownership on stock return volatility becomes weaker in large firms since the coeffcient of the interaction term between firm size and foreign ownership turns out to be significantly positive. The estimated results remain robust when we use the future one-year volatility, other than the current one, as an alternative measure of the dependent variable
Systematic Risk and Accounting Determinants: An Empirical Assessment in the Indian Stock Market
Get PDFThis study explores the contemporaneous association between market determined risk measures and accounting determined risk measures using the large liquid non-financial stocks in the Indian stock market in the recent 2012-2017 period. Two measures of systematic risk and seven accounting determined risk measures are chosen based on prior research. This study uses three regression techniques, namely Ordinary Least Squares (OLS), stepwise regression and robust regression, to identify the influential accounting variables for the systematic risk measured by market beta. The results evidence that there is a high degree of contemporaneous association between market determined and accounting determined risk measures, with nearly 30% of the cross sectional variance in systematic risk explained by accounting determined risk measures. The results suggest that the accounting variables can be used in the predictive models of future risk, leading to superior decision making at the level of individual decision maker