Economic and Business Review (EBR)
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The Effect of Disaggregated Country Risk on Foreign Portfolio Investment Flows in South Africa
No full textThis study explores the relationship between disaggregated country risk and foreign portfolio investment (FPI) flows in South Africa, focusing on both the long-run and short-run effects of economic, financial, and political country risk measures on net foreign purchases of shares (NFPS) and net foreign purchases of bonds (NFPB) during the period from 1995 to 2019. We employed autoregressive distributed lag (ARDL) and nonlinear autoregressive distributed lag (NARDL) models to assess the relationships between the variables. The results indicate that all disaggregated country risk measures have a long-run effect on NFPS and NFPB, and the impacts of these risks are asymmetric. Specifically, low levels of economic risk are associated with a decline in foreign equity flows and an increase in foreign bond investments in the long run, while high levels of economic risk correlate with a rise in both foreign equity and bond investment flows. Conversely, both high and low levels of financial and political risk lead to a decrease in NFPS and NFPB. Notably, financial risk was the only country risk measure found to significantly impact NFPB in the short run. The findings highlight the importance for policymakers to understand these complex relationships in order to implement strategies that foster a mutually beneficial economic, political, and financial climate in South Africa, encouraging FPI while maintaining sovereignty
Shock Transmission in Granular Economies: Impact of Pass-Through Effects of Idiosyncratic Microshocks to the Aggregate
No full textThis paper studies the importance of shocks to the largest firms on the aggregate output. Using firm-level data on eight European countries (2006--2019), we find that shocks to the largest firms explain an important part of aggregate fluctuations. Our paper brings several novelties. Firstly, in addition to the aggregate level, we extend the analysis of the transmission of firm-level shocks to study the shocks at the sectoral level. Secondly, we provide a novel measurement for demand-side shocks within granularity. We show that idiosyncratic shocks affecting the largest 20 firms can explain almost half of the output volatility, which is consistent with Gabaix (2011). Moreover, demand-side shocks contribute a greater share to this volatility compared to supply-side shocks. Finally, we show that the smaller the sample of the largest firms, the larger the propagation effect of the shocks to GDP. This suggests that a few large firms drive a large part of the aggregate volatility, while volatility of other larger firms balances out on average
Are Loyalty Programmes Still “a Thing” in High-Fashion Retail? Understanding Generation Z’s Perspective
No full textThis study investigates the relevance and perception of loyalty programmes (LPs) among Generation Z (Gen Z) consumers in the high-fashion retail sector. While LPs are well-established tools for fostering customer retention, their effectiveness among Gen Z, a cohort characterized by digital fluency, a preference for authenticity, and distinct consumption values, remains underexplored. Given the high-fashion context, where exclusivity and identity are critical, this study examines the extent to which LPs resonate with this generation. Utilizing a qualitative methodology and with the help of thematic analysis, we reveal four key dimensions: drivers of high-fashion consumption, shopping preferences, customer loyalty patterns, and the utilitarian perspective of LPs. Findings reveal that Gen Z consumers prioritize quality and brand identity, favour online channels for convenience, and assess LPs through a pragmatic lens, emphasizing simplicity, transparency, and immediate rewards. Although emotional brand connections exist, they are secondary to tangible benefits. Tiered and experiential rewards are appreciated but rarely drive engagement. The findings suggest that LPs can retain strategic relevance if redesigned to reflect Gen Z\u27s digital behaviours and demand for personalization. The study offers actionable insights for high-fashion retailers aiming to optimize LP design and communication strategies for this emerging consumer segment
Does the Organization–Employee Relationship Matter? Linking the Organization–Employee Relationship With Employee Well-Being and Performance
No full textThe study examines the relationship between the organization–employee relationship (OER), well-being, and work performance of remote workers who were mandated to work from home because of the uncertainties and health risks brought about by the COVID-19 pandemic. This study focuses on the work performance of the employees contributed through positive psychological well-being and positive OERs. A comprehensive nationwide survey was undertaken, involving a sample size of 1289 full-time IT employees in India, with the objective of determining the impact of well-being on individual work performance. Results from the analyses indicate that though the employees with limited experience of work from home found it challenging during the initial stages of the pandemic, the positive OERs positively and significantly affected their well-being and overall work performance by helping them overcome the stress created by the pandemic
What Kind of Economists Do We Want? From a One-Track to a Two-Track Mind
No full textWe explore the challenges facing the current academic training of economists in small European countries such as Sweden. The monolithic focus on publishing in the top-five journals, which prioritizes methodological rigor over problem-driven research, is often a threat to social relevance and policy applicability. This limits pluralism, excludes many talented economists, and fails to prepare graduates for nonacademic positions. We propose a two-track model for PhD training and academic evaluation, emphasizing both traditional research and applied economic policy, tailored to the diverse needs of academia, public administration, and business. We also argue for broader evaluation criteria, enhanced interdisciplinary collaboration, and institutional reforms, including trial lectures and specialized research institutes. By diversifying incentives, we recommend a shift towards socially relevant and more inclusive education and practice in the discipline of economics
Corporate Social Responsibility Disclosure and Financial Performance: Empirical Evidence From Vietnam
No full textThis study examines the relationship between corporate social responsibility (CSR) disclosure and firm performance, with particular attention to CSR\u27s role as a mitigating mechanism during periods of economic crisis, notably the COVID-19 pandemic. Utilizing a unique hand-collected dataset comprising CSR disclosures from Vietnamese publicly listed firms in the VNR500 index between 2014 and 2021, the analysis employs both accounting-based (return on equity) and market-based (Tobin\u27s Q) performance indicators. The empirical findings indicate a positive association between CSR disclosure and firm performance across both measures. Disaggregated analysis reveals that governance-related disclosures significantly enhance market valuation, whereas the presence of a well-articulated CSR vision and strategic orientation correlates positively with accounting profitability. These results suggest that robust governance frameworks, environmental stewardship, and socially responsible product strategies contribute to superior firm outcomes. Moreover, the study provides empirical support for the conceptualization of CSR as an insurancelike mechanism that mitigates the adverse effects of external shocks-such as the COVID-19 pandemic-by preserving firm value and protecting shareholder interests
Determinants of Interorganizational Employee Mobility: Systematic Literature Review
No full textThis article provides a comprehensive overview of the determinants of interorganizational employee mobility and proposes their multilevel typology across different sectors and industries. We conduct a systematic literature review of 158 papers in this field. Our results show that some determinants of employee mobility also appear as mobility effects, closing the ``determinants–interorganizational employee mobility–effects\u27\u27 circle. They also show a hierarchy among mobility determinants, different types of interorganizational mobility, and different effects when mobility occurs between competing and cooperating organizations. This study primarily contributes to the career development literature, which recognizes interorganizational mobility as the primary mechanism for achieving individual work–life balance goals. By systematically constructing a multilevel typology of mobility determinants and examining their effects across different sectors and industries, the study\u27s findings also contribute to labor economics by helping to understand the motivations of mobile employees and mitigate potential negative consequences of such mobility
Customer Prioritization: From Conceptualization to International Application
No full textThis study examines customer prioritization, a strategic practice where businesses allocate resources and efforts based on customer value. While its significance in international marketing continues to grow, limited research exists on how customer prioritization is understood and applied in international firms operating across diverse cultural contexts. Addressing this gap, the study explores how international-marketing managers conceptualize customer prioritization and identifies its key components. Using a qualitative methodology, the study conducted in-depth interviews with Slovene international-marketing and sales managers from 13 export-oriented firms. Thematic analysis, guided by the Gioia methodology, identified four central themes: prioritization tactics and strategies, international customer profitability, headquarters–subsidiary relationships, and customer relationship management. The results indicate that companies adopt varied prioritization strategies influenced by factors such as product lines, customer size, industry significance, and the importance of foreign markets. Furthermore, subsidiaries play a pivotal role in collecting and relaying local market knowledge to headquarters, facilitating effective customer prioritization. This research advances the conceptual understanding of customer prioritization as a dynamic capability that shapes customer relationship management strategies in international firms and can enhance profitability in foreign markets
The Impact of Cumulative Career Experience of Internal Control Managers on Firms\u27 Efficiency in Different Information Environments
No full textThis study investigates the effect of internal control (IC) managers\u27 cumulative career experience on the operational efficiency of Korean listed firms between 2018 and 2020. Building on the premise that managers with extensive experience positively influence ICs and the internal information environment, this study hypothesises that cumulative career experience of an IC manager is also positively associated with a firm\u27s operational efficiency. To empirically assess efficiency, this study applies data envelopment analysis (DEA), a nonparametric technique that evaluates relative efficiency based on multiple input and output measures. The results suggest that IC managers with greater cumulative experience significantly enhance a firm\u27s efficiency. Moreover, this effect is more pronounced in firms operating within weaker accounting information environments, where managerial experience plays a critical role in improving efficiency
In the Eye of the Storm: Investor Sentiment and Audit Quality in Korean Financial Reporting
No full textBackground and objective: We investigate whether financial reporting quality is associated with economic policy uncertainty and examine the moderating roles of investor sentiment and audit quality during periods of high uncertainty.
Methods: This study focuses on firms listed on the Korea Stock Exchange over the period 1998–2021. We employ a dynamic panel-data model and utilize the Arellano–Bover/Blundell–Bond system estimator, a two-step generalized method of moments estimator that leverages instrumental variables to mitigate the issue of endogeneity.
Results: The empirical result provides support for the hypothesis suggesting that Korean economic policy uncertainty is positively associated with financial reporting quality, indicating that managers have an incentive to reduce earnings management when economic policy uncertainty increases. In addition, the statistical analyses indicate that financial reporting quality is higher during periods of low investor sentiment, suggesting that managers have incentives to provide high-quality financial reporting when investors are in a bearish sentiment so as to reverse this pessimistic mood.
Conclusion: This research may have implications for regulatory authorities and financial market participants who are working on improving financial reporting quality in their countries during periods of high uncertainty.
Contribution: The major contribution of our research is its exploration of how economic policy uncertainty in South Korea influences financial reporting quality, revealing that increased uncertainty motivates firms to enhance disclosure practices for greater transparency and information accuracy, especially in contexts of bearish investor sentiment and high audit quality