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Article
Publication date: 19 June 2023

Graeme Newell and Muhammad Jufri Marzuki

COVID-19 has had a significant global impact at many levels, including an impact on global real estate capital flows. This paper examines the impact of COVID-19 on global real…

Abstract

Purpose

COVID-19 has had a significant global impact at many levels, including an impact on global real estate capital flows. This paper examines the impact of COVID-19 on global real estate capital flows over 2019–2022 to clearly articulate the extent of this impact on global real estate capital flows across regions, countries, major cities, real estate sub-sectors and by major real estate investors. Drivers of these global real estate capital flow changes are also identified. The strategic real estate investment implications of this impact are highlighted, as well as the implications going forward concerning the global real estate strategies for the real estate portfolios held by institutional investors.

Design/methodology/approach

To assess the impact of COVID-19, the Real Capital Analytics (RCA) database of global real estate transactions over 2019–2022 is used to drill-out critical details on commercial real estate transactions to explore specific trends in global real estate capital flows in this period of the COVID-19 crisis. This includes real estate capital flows to specific regions, countries, cities, real estate sub-sectors as well as the role of major real estate investors.

Findings

The impact of COVID-19 is clearly shown with the major decline in global real estate capital flows in 2020, with a strong recovery in 2021. Reduced levels of real estate capital flows in 2022 reflect different risk dynamics, where 2022 has seen investors move on from the COVID-19 environment. In 2022, the risk of COVID-19 for real estate has been replaced by global real estate risk factors such as inflation concerns, geopolitical tensions, economic growth concerns, increased cost of debt issues and supply chain issues. This sees COVID-19 now rated as only the 6th most important risk factor in real estate investment decision-making for real estate investors in the Americas, Europe, Middle East and Africa (EMEA) and Asia–Pacific.

Practical implications

This research has clearly shown the extent of the impact of COVID-19 on global real estate capital flows, as well as identifying the drivers of these real estate capital flow changes. It highlights that real estate investors have moved on and are now prioritising new risk factors ahead of COVID-19 risk. These critical risk factors reflect more recent financial, economic and geopolitical issues, which are key issues in real estate investment decision-making going forward. Investors need to structure these new risk factors into their real estate investment decision-making for the ongoing management of their domestic and international real estate portfolios.

Originality/value

This paper is the first published empirical research analysis of global real estate capital flows during the COVID-19 crisis. This research provides major insights on real estate investment decision-making during this crisis and the strategic changes seen in acquiring real estate portfolios in response to this major global crisis. The change in real estate risk priorities in 2022 as real estate investors move on from the COVID-19 environment is also identified and is clearly reflected in the 2022 global real estate capital flows.

Details

Journal of Property Investment & Finance, vol. 41 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 6 May 2020

Luís Miguel Marques, José Alberto Fuinhas and António Cardoso Marques

The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main…

Abstract

Purpose

The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main historical events assessed for the period from 1965 to 2015.

Design/methodology/approach

Given the confirmed presence of endogeneity and cointegration between energy consumption and economic growth, a vector error correction with structural dummies model was used. Furthermore, the impulse-response functions and variance decomposition were computed to evaluate the variables’ dynamics.

Findings

Bi-directional causality running from energy consumption to economic growth was found, both in the short and long-run, supporting the feedback hypothesis. It is proved that the 2008 crisis impacted on the global energy–growth nexus. Furthermore, there is evidence of the impact of the 1990s oil price shock on the nexus. Innovations in energy consumption have a positive impact on economic growth; however, this impact tends to be null in the long run.

Practical implications

The results suggest that at a global level, any energy policy should be carefully designed in order not to hamper economic growth. Countries should not remain indifferent to the policies that other countries might follow. Very few historical crises impacted on the global energy–growth nexus.

Originality/value

This paper offers a different approach to the study of the energy–growth nexus. The energy–growth nexus is analysed in the major macroeconomic aggregate. Global variables reveal their relevance as a benchmark in the energy–growth nexus. Furthermore, this paper arrives at some conclusions about how historical crises impact on global relationships.

Details

International Journal of Energy Sector Management, vol. 14 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 31 October 2018

Rexford Abaidoo

This study aims to empirically examine how economic policy uncertainty emanating from three major global economic blocks (the US, the Chinese and the European Union) and…

Abstract

Purpose

This study aims to empirically examine how economic policy uncertainty emanating from three major global economic blocks (the US, the Chinese and the European Union) and volatility in global oil prices influence international trade.

Design/methodology/approach

The study uses quarterly data spanning the period between 1995 and 2014 in an autoregressive distributed lag framework.

Findings

This study finds that economic policy uncertainty conditions associated with the US and the Chinese economies tend to have significant negative or constraining impact on key components of international trade. Further analysis suggests that between the two leading economies (the US and the Chinese economies), economic policy uncertainty emanating from the US economy tend to have much more constraining impact on dynamics of international trade than the Chinese economy all things being equal.

Practical implications

This study’s findings carry significant strategic planning and policy implications for international trade dependent firms or corporations and economies. For instance, for multi-national corporations or firms whose products and services depend heavily on cross-border trade, understanding and taking into consideration prevailing economic policy dynamics emanating from the US and the Chinese economies in product and services demand forecast, and other strategic moves could be critical in minimizing potential adverse effects on projected performance or growth targets.

Originality/value

The uniqueness of this study’s approach stems from its assessment of how perception of uncertainty among economic agents about economic policies originating from three noted global economic blocks impacts international trade. In other words, instead of traditional factors or conditions surmised to influence variability in trend associated with international trade found in related studies, this study rather examines how perceptions of uncertainty about prevailing or yet to be enacted economic policy within specific global economic block impacts international trade.

Details

Journal of Financial Economic Policy, vol. 11 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 30 November 2020

Jan Jakub Szczygielski, Leon Brümmer and Hendrik Petrus Wolmarans

This study aims to investigate the impact of the macroeconomic environment on South African industrial sector returns.

Abstract

Purpose

This study aims to investigate the impact of the macroeconomic environment on South African industrial sector returns.

Design/methodology/approach

Using standardized coefficients derived from time-series factor models, the authors quantify the impact of macroeconomic influences on industrial sector returns. The authors analyze the structure of the resultant residual correlation matrices to establish the level of factor omission and apply a factor analytic augmentation to arrive at a specification that is free of omitted common factors.

Findings

The authors find that global influences are the most important drivers of returns and that industrial sectors are highly integrated with the global economy. The authors show that specifications that comprise only macroeconomic factors and proxies for omitted factors in the form of residual market factors are likely to be underspecified. This study demonstrates that a factor analytic augmentation is an effective approach to ensuring an adequately specified model.

Research limitations/implications

The findings have a number of implications that are of interest to investors, econometricians and researchers. While the study focusses on a single market, the South African stock market, as represented by the Johannesburg Stock Exchange (JSE), it is a highly developed and globally integrated market. In terms of market capitalization, it exceeds the Madrid Stock Exchange, the Taiwan Stock Exchange and the BM&F Bovespa. Yet, a limited number of studies investigate the macroeconomic drivers of the South African stock market.

Practical implications

Investors should be aware that while the South African domestic environment, especially political risk, has an impact on returns, global influences are the greatest determinants of returns. No industrial sectors are insulated from global influences and this limits the potential for diversification. This study suggests an alternative set of macroeconomic factors that may be used in further analysis and asset pricing studies. From an econometric perspective, this study demonstrates the usefulness of a factor analytic augmentation as a solution to factor omission in models that use macroeconomic factors to proxy for systematic influences that describe asset prices.

Originality/value

The contribution lies in providing insight into a large and well-developed yet understudied financial market, the South African stock market. This study considers a much broader set of macroeconomic factors than prior studies. A methodological contribution is made by estimating and interpreting standardized coefficients to discriminate between the impact of domestically and internationally driven factors. This study shows that should coefficients not be standardized, inferences relating to the relative importance of factors will differ. Finally, the authors unify an approach of using pre-specified factors with a factor analytic approach to address factor omission and to ensure a valid and readily interpretable specification.

Article
Publication date: 5 May 2015

Lynne Andersson and Lisa Calvano

This paper aims to examine how the globally mobile elite (GME) uses its capital and networks to create a perception that market-driven solutions to social problems are superior to…

Abstract

Purpose

This paper aims to examine how the globally mobile elite (GME) uses its capital and networks to create a perception that market-driven solutions to social problems are superior to the efforts of government and civil society.

Design/methodology/approach

Drawing on a number of emerging literatures, the authors introduce and develop the concept of the “perceived mobility of impact” and use the case of the “Bono effect” to illustrate how this phenomenon is enacted. The authors then employ a critical lens to challenge the consequences of this perceived mobility of impact.

Findings

Global elites use their mobility to generate network capital, which in conjunction with celebrity affinity for global humanitarian causes builds a self-reinforcing consensus and legitimizes market-driven solutions to social problems. While this approach may make the GME feel generous about their contribution, it raises questions about accountability and representation in shaping global social policy.

Originality/value

This paper contributes to the burgeoning literature on the GME, offering a unique critical perspective on their motives and actions, and introduces the concept of ‘perceived mobility of impact’.

Details

critical perspectives on international business, vol. 11 no. 2
Type: Research Article
ISSN: 1742-2043

Keywords

Open Access
Article
Publication date: 7 September 2015

Robin von Haartman and Lars Bengtsson

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to…

30246

Abstract

Purpose

The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. The purpose of this paper is to empirically analyse the impact of global purchasing on product innovation sourced from suppliers, while taking into account how firms integrate their suppliers.

Design/methodology/approach

The data used in this study are from the International Purchasing Survey, an international online survey on purchasing and supply management conducted in 2009. The data are analysed using factor and regression analyses.

Findings

The paper shows that global purchasing has no direct impact on product innovation performance. However, supplier integration is more strongly associated with product innovation performance for firms purchasing globally compared to firms purchasing regionally.

Practical implications

The implication is that when companies purchase globally, they must have a highly developed purchasing department in order to sustain a high level of innovation. For firms purchasing only regionally, the role of the purchasing department is diminished, at least in terms of contributing to innovation.

Originality/value

This paper contributes to the discussion of potential advantages and disadvantages of global purchasing. First, the paper provides an explanation for the ambiguous results of previous research. Product innovation does not depend on whether firms are purchasing globally or not, it depends on how they purchase. This paper has showed that when purchasing globally, the role of the purchasing department becomes crucial for product innovation. The proficiency and activities of the purchasing department largely determine the success, in terms of supplier product innovation, of global purchasing.

Details

International Journal of Operations & Production Management, vol. 35 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 January 2016

Yvonne McNulty and Helen De Cieri

Little is known about the attraction, development, and attrition factors that impact on expatriates’ decision making in relation to international assignment opportunities, nor is…

3396

Abstract

Purpose

Little is known about the attraction, development, and attrition factors that impact on expatriates’ decision making in relation to international assignment opportunities, nor is there clear understanding as to how global mobility outcomes impact on global talent management (GTM). The purpose of this paper is to conceptualize the attraction, development, and attrition of expatriates as a process that is focussed on two core elements of expatriate ROI (eROI) – corporate ROI (cROI) and individual ROI (iROI). Further, the authors adopt an innovative approach by conceptualizing how global mobility is linked to GTM.

Design/methodology/approach

Applying psychological contract theory, the authors draw on empirical data from two large studies to compare the perspectives of mobility managers (the cROI inputs) with those of long-term assignees (expatriates; the iROI inputs) to identify how global mobility outcomes can impact on GTM.

Findings

By comparing and contrasting corporate and individual perspectives, the findings show a more complete picture of expatriation in practice than has been offered in prior research. Doing so highlights synergies and conflicts in the desired support provided for, and outcomes expected from, global mobility and GTM programs.

Originality/value

The research adds to the literature by demonstrating how cROI and iROI combine to influence overall global mobility outcomes for multinational corporations, and how these, in turn, impact on GTM initiatives and overall GTM success. It extends previous research to specifically link global mobility to GTM, and adds to the limited empirical literature on eROI. The research also advances understanding of the employment relationship during expatriation by identifying new factors and consequences pertaining to psychological contract fulfillment. Implications for future research are presented.

Details

Employee Relations, vol. 38 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 1 June 2021

Farzad Haider Alvi

This paper examines social impact investing (SII), a growing source of investment from the Global North to the Global South celebrated as a new way of doing good in low-income…

Abstract

Purpose

This paper examines social impact investing (SII), a growing source of investment from the Global North to the Global South celebrated as a new way of doing good in low-income countries, but bearing elements of neoliberalism that can reify post-colonial contexts.

Design/methodology/approach

A microfoundational, autoethnographic approach is used based on the author’s experiences and emotional epiphanies while engaged in an activist entrepreneurial enterprise. The author’s goal was to effect positive social change with Indigenous Mexican producers of mezcal liquor.

Findings

Despite the best of intentions and following best practices for SII, the expected altruistic outcomes were eclipsed by inadvertent post-colonial behaviours. Neoliberal foundations of financialization gave primacy to the perspectives and egos of the investors rather than meaningful impact for the Indigenous beneficiaries.

Research limitations/implications

Based on the findings, three areas are presented for further research. First, how Global North social impact investors balance the ego of their motivations with the altruism of intended outcomes for beneficiaries. Second, what ownership structures of Global North investments allow for social benefits to flow through to intended beneficiaries. Third, how post-colonial power imbalances can be redressed to give an equal position to Global South beneficiaries as people, rather than financial metrics indicating only that they have become less poor.

Originality/value

By using autoethnographic methods that expose the vulnerability of the researcher, unique insights are generated on what happens when good intentions meet with a post-colonial context. The neoliberal underbelly of SII is revealed, and ways to make improvements are considered.

Details

critical perspectives on international business, vol. 18 no. 2
Type: Research Article
ISSN: 1742-2043

Keywords

Article
Publication date: 28 February 2023

Leanne J. Morrison, Alia Alshamari and Glenn Finau

This paper aims to interrogate the accountabilities of the foreign companies which have directly invested in the Iraqi oil and gas industry.

Abstract

Purpose

This paper aims to interrogate the accountabilities of the foreign companies which have directly invested in the Iraqi oil and gas industry.

Design/methodology/approach

Using both qualitative and quantitative methodologies, the authors first map the stakeholder accountabilities (qualitative) of foreign oil and gas companies and second, the authors seek to demonstrate quantitatively – through structural break tests and publicly available sustainability reports – whether these companies have accounted for their environmental and social impacts both to Iraqi people and to the global community.

Findings

The authors find that the Western democratic values embedded in stakeholder theory, in terms of sustainability, do not hold the same meaning in cultural contexts where conceptions and application of Western democratic values are deeply problematic. This paper identifies a crucial problem in the global oil supply chain and problematises the application of traditional theoretical approaches in the context of the Iraqi oil and gas industry.

Practical implications

Implications of this study include the refocus of attention onto the local and global environmental impacts of the Iraqi oil and gas industry by foreign direct investments. Such a refocus highlights the reasons and ways that decision makers should accommodate these less salient stakeholders.

Originality/value

The primary contribution is the critique of the lack of environmental accountability of foreign direct investment companies in the Iraqi oil and gas industry. The authors also make theoretical and methodological contributions via the problematisation of the cultural bias inherent in traditional stakeholder theories, and by introducing a quantitative method to evaluate the accountabilities of companies.

Details

Meditari Accountancy Research, vol. 32 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 24 March 2021

Slah Bahloul and Nawel Ben Amor

This paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns…

Abstract

Purpose

This paper investigates the relative importance of local macroeconomic and global factors in the explanation of twelve MENA (Middle East and North Africa) stock market returns across the different quantiles in order to determine their degree of international financial integration.

Design/methodology/approach

The authors use both ordinary least squares and quantile regressions from January 2007 to January 2018. Quantile regression permits to know how the effects of explanatory variables vary across the different states of the market.

Findings

The results of this paper indicate that the impact of local macroeconomic and global factors differs across the quantiles and markets. Generally, there are wide ranges in degree of international integration and most of MENA stock markets appear to be weakly integrated. This reveals that the portfolio diversification within the stock markets in this region is still beneficial.

Originality/value

This paper is original for two reasons. First, it emphasizes, over a fairly long period, the impact of a large number of macroeconomic and global variables on the MENA stock market returns. Second, it examines if the relative effects of these factors on MENA stock returns vary or not across the market states and MENA countries.

Details

International Journal of Emerging Markets, vol. 17 no. 10
Type: Research Article
ISSN: 1746-8809

Keywords

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