Search results

This study aims to analyse the effect of borrower’s countries on syndicated loan spreads, featuring countries according to institutional factors, namely, financial systems and corporate governance systems.

This study is an empirical investigation based on a unique sample of more than 85,000 syndicated loans from 122 countries. The paper uses standard and two-stage least squares regression analysis to test whether the types of financial and corporate governance systems affect loan spreads.

The paper finds that borrowers from countries with financial systems oriented towards the banking-based paradigm pay lower interest rate spreads than those from countries with financial systems oriented towards the market-based paradigm. In addition, there is evidence that borrowers from countries with more developed financial systems pay lower spreads. The results also show that borrowers from countries with an Anglo-Saxon governance system pay higher spreads than borrowers from countries with a Continental governance system.

This study does not consider potential promiscuous relationships that can arise at the ownership structure and governance level between banks and borrowers and may affect loan spreads.

This study suggests that financial and corporate governance systems are essential factors in the financial intermediation process. Furthermore, the evidence indicates that corporates with higher potential agency costs and higher potential information asymmetry are requested to pay higher spreads. Therefore, the opportunities to such corporates invest optimally tend to be scarcer.

The paper highlights the impact of institutional factors on the cost of financing, characterising the countries according to the type of financial system and the type of corporate governance system. The study finds that borrowers from countries with bank-based financial systems pay lower interest rate spreads than those from countries with market-based financial systems. The paper also highlights how the level of financial development affects the cost of financing. The paper focusses on non-financial firms, unlike financial firms, which have been the focus of several empirical studies on topics relating to the cost of funding and corporate governance.

The purpose of this paper is to study how proximity affects the trade-migration link. By focusing on two case studies, France and Egypt, the authors explore if migrants promote and help to deal with market heterogeneity in international markets. Using an ethnic network approach the authors also test for interactions between the characteristics of migrants and proximity issues.

The paper builds on two case studies to illustrate the main working hypotheses. The main framework is that of ethnic networks, proximity ties, and market heterogeneity. Static and dynamic panel data methods are employed when estimating extended gravity trade equations. The authors account for country-pair fixed effects and instrument by lagged stocks of migrants, in order to deal with bilateral commonalities and endogeneity issues in the estimation procedure.

The paper provides evidence on how proximity enhances trade. Additional trade effects are found for countries sharing closer ties. Networks of migrants appear to help firms to deal with fixed trade costs, also generating some market heterogeneity that at the end influences the trade-migration linkage. Characteristics of migrants also seem to matter, interacting with proximity issues, and resulting in specific trade effects.

Proximity issues seem to matter in the trade creation effects of networks of migrants. In this way integration processes between countries would be showing some positive externalities in the side of trade flows. Characteristics of emigrants should be taken into account when defining migratory policies, mainly for the education and assimilation issues.

The paper get deeper insights in some emerging issues in the trade-migration literature by focusing in two relevant case studies.

The purpose of this paper is to compare the recent social welfare performance of old and new members of the European Union, and to establish whether a specific East‐European social model (ESM) is emerging.

The concept of social model is explored in the context of the historical development of economic and social policy integration in the European Union, with emphasis on reform measures and the EU enlargement process post‐1990. Guided by Sapir's typology of ESMs, the performance of 15 West‐European countries is analysed and compared with that of ten East‐European countries, relative to key economic and social indicators. The results are then used to determine whether a typology of East‐ESMs could be produced.

Social welfare performance in the new EU members indicates two different patterns and levels of development, which at this stage separate East‐European countries into two distinct groups. While two divergent trends may be emerging, it is perhaps too soon to conclude that any specific East‐ESM is taking shape. Results so far suggest that, in Eastern Europe, the influence of a welfarist social model appears more beneficial than that of market liberalism.

This paper is limited to the comparative analysis of social welfare performance in six country groups. To obtain a full picture of the current development of social models in the European Union, it should be complemented by a separate examination of deliberate efforts by national governments towards in integrating economic and social policies in normative social models. The analysis itself could be expanded to include other significant social indicators, such as the level of employment protection or the Human Development Index.

While deliberate policy efforts are not always necessary for a social model to emerge, public awareness of cultural and regional trends in social welfare performance, analysed through the filter of social model typology, can significantly inform future social and cultural practices, as well as national government policies, directed towards improving national welfare.

This analysis can provide a theoretical basis for the integration of national economic and social policies in a coherent philosophy of multi‐dimensional development in Eastern Europe.

The paper selects historically relevant indicators of economic and social performance, undertakes a comparative analysis of six European country groups, draws conclusions on the current state of social welfare in East‐European countries relative to their Western counterparts and makes recommendations regarding the development of social model conceptions in Eastern Europe.

In this study, various acts including regulations of public financial management, fiscal responsibility, and state budget in the selected six countries were subjected to different readability tests, and an international comparison was made. The fiscal responsibility act of six countries – Turkey, the UK, India, Australia, Canada, and Pakistan – were included in the study and analyzed. Each country was analyzed under its official language. Since English is an official language of all of the countries except for Turkey, the authors have evaluated the fiscal responsibility acts of these countries using the following readability tests: Flesch Reading Ease, Flesch-Kincaid, Gunning-Fog, and Dale-Chall. Additionally, Public Financial Management and Control Law No. 5018 approved in Turkey was analyzed by the Ateşman Readability Test which was uniquely designed for Turkish grammar rules. The acts discussed in the study were analyzed not only as a whole but also in parts and subsections. According to the results of the study, the levels of readability of the existing laws in most of the selected countries are very difficult to understand for a university graduate. However, when the readability level of the British Budget Responsibility and National Audit Act tested as parts and subsections and a whole, it was rated at a level a university student could understand. This study analyses the readability and intelligibility of acts related to fiscal responsibility and the state budget in six selected countries, adopting Anglo-Saxon public administration model and making an inter-country evaluation. Since it is important that citizens have enough information about legislation for a citizen-oriented understanding, a legislation system that is understood by the larger part of the society is essential.

The purpose of this paper is to examine the accounting development process and international financial reporting standards (IFRS) in small island economies (SIEs), with particular reference to Mauritius. SIEs are different from large economies in terms of economic and political dependence, colonial influences and international pressures, as well as vulnerability to natural shocks.

This paper uses Briston's Accounting Evolutionary Theory (BAET) and the Transcendental Stage of Accounting Development (TSAD) proposed by Boolaky and adopts a descripto‐explanatory research tradition to explain accounting development and IFRS in Mauritius. Data on key development economic policies between 1960 and 2008 are collected and analysed using secondary sources, whereas data related to colonisation and basis of legal system are archived from the National Library.

Mauritius has experienced little difficulty compared to other countries in the African region such as Madagascar, Mozambique, Angola, Swaziland etc. in its accounting development process because it is used to the Anglo‐Saxon accounting system, has adopted the phase‐by‐phase development process, has an adequate supply of professionally qualified accountants and made IFRS compliance mandatory in 2001 through the revised Companies Act, 2001 and through the revision of other related legislations. As regards IFRS, Mauritius has a legal, political, business and economic environment conducive to sustain IFRS.

This paper applies BAET to examine accounting development from basic book‐keeping to IFRS adoption in Mauritius. It also explains that there is a transcendental stage of accounting development which BAET has not taken into consideration.

There is no previous study which has used BAET and TSAD to examine accounting development and IFRS in small island jurisdictions. Previous studies have mostly focused on large economies. This paper also provides a basis for future research in similar jurisdictions.

The increasing engagement in corporate social responsibility (CSR) potentially indicates an attempt to “re‐embed” the economy in a wider societal context, following a period of neoliberal market exposure, deregulation, and separation of commercial and societal concerns. The purpose of this paper is to explore the relationship between this new social embedding of the economy and older traditions of social embeddedness, such as the welfare state, neocorporatist arrangements, and other socio‐political and labour market arrangements.

The paper explores the relationship between old and new embeddedness by examining how 17 West European nations and the USA are ranked on “old” embeddedness dimensions and comparing this ranking with “new” CSR rankings of nationally aggregated industrial performance.

The overall findings at an aggregate level provides some support for the idea of a symmetric relationship between the “old”, politically‐driven embeddedness and the “new”, industry‐driven embeddedness. However, a finer inspection of the results reveals interesting diversity and variation between countries and between scores, indicating more complex national story lines.

Despite the limited set of countries and some measurement challenges, the analysis illustrates that the patterns of national industrial adaptation to the CSR agenda is strongly shaped by regional and national institutional contexts. While some of the institutional patterns shaping CSR in the “old” EU 15++ have been analysed in this paper, much work still remains to be done in extending and deepening our knowledge in this field.

The findings may help understand how a general framework like CSR interplays with political and institutional contexts as it trickles down into different West European political economies.

The systematic analysis of old political and new corporate social embeddedness of the economy based on a broad set of indicators is new and sheds light on the institutional preconditions for‐ and shaping of CSR.

Purpose – The concept of equality of opportunity (EOp) goes back to Roemer (1993, 1998) who argues that a society should guarantee its members equal access to advantage regardless of their circumstances, while holding them responsible for turning that access into actual advantage by the application of effort. First, this chapter investigates how family background influences income acquisition in 17 European countries. Second, it particularly scrutinizes how governments affect EOp through redistributive policies.

Methodology – We apply two different methods in order to measure EOp: the Gini opportunity index defined by Lefranc et al. (2008) and a parametric estimation method. Effective redistribution is measured via income concepts at different stages of the tax-and-transfer schemes.

Findings – We find clear country clustering in terms of EOp for Nordic, Continental European, and Anglo-Saxon countries. For Eastern Europe our results are less definitive. By examining the impact of redistributive policies in the countries under analysis, it can be concluded that both taxes and transfers reduce inequality of opportunity (IOp), with social benefits typically playing a key role. Furthermore, the equalizing impacts of the tax-benefit system on IOp differ substantially from the ones observed in the traditional notion of inequality of outcomes.

Originality – We systematically compare two approaches used to identify the extent of EOp. Our results reveal that both methods yield rather robust country rankings for various circumstance sets. Furthermore, the impact of tax-benefit policies on EOp is rarely addressed in the existing literature. We contribute by focusing on effective redistribution directly related to different income concepts.

This paper empirically examines whether the cultural environment plays a role in entrepreneurial decisions in Europe, the United States, Canada and Australia.

To explore this issue, we use data from the Adult Population Survey of 2010–2015 provided by the Global Entrepreneurship Monitor (GEM). To calculate the cultural factor, we utilize additional information from the GEM National Expert Survey data and estimate a probit model to measure the effect of culture based on an unobserved latent variable of satisfaction, measured through a dichotomous variable identifying entrepreneurs.

Results show a positive and statistically significant relationship between the cultural factor and the individual choice of entrepreneurial activity. Our findings are subjected to a range of robustness checks. We extend this analysis to an examination of cultural values as predictors of entrepreneurship status in collectivist and individualist countries. Our results point to collectivist and individualist roles as being among the mechanisms through which the cultural environment may operate.

This is the first empirical work that clusters a wide range of variables provided by the GEM NES data to obtain a cultural indicator, and then applies this indicator to the GEM APS micro-data. Policy-makers should consider these results in order to promote entrepreneurship through culture in collectivist and Mediterranean countries, but use other channels in individualist and Anglo-Saxon countries.

The purpose of this paper is to describe an empirical study of the advances and trends of e‐government in transparency, openness and hence accountability in European Union (EU) local governments to determine the extent to which the internet promotes the convergence towards more transparent and accountable government. The paper also tests the extent to which different factors related to the implementation of information and communication technologies (ICTs), the number of inhabitants and the type of public administration style have influenced e‐government developments in the cities studied.

A comprehensive content analysis of 75 local government web sites was conducted using a 73‐item evaluation questionnaire. The evaluations were performed in 2004 and 2007 and 15 EU countries were covered (five per country). To analyse the evolution of e‐government, several techniques were used: tests of difference of means, multidimensional scaling and cluster analysis. The contribution of the different contextual factors to the development of government web sites was tested with OLS regression analysis.

The results show noticeable progress in the application of ICTs and increasing EU local government concern for bringing government closer to citizens and for giving an image of modernity and responsiveness, although few web sites show clear signs of real openness to encouraging citizen dialogue. The evolution of the e‐government initiatives analysed shows that, at present, they are still overlapped with the public administration style of each country as an extension of traditional front offices with potential benefits in speed and accessibility.

Although a growing number of e‐government studies are appearing, previous research has not analysed the evolution of EU local governments from a comparative perspective.

The purpose of this paper is to explore how family-supportive supervisor behaviour (FSSB) and organisational work–family policies (WFP) influence turnover intention (TI), satisfaction with work–family balance (SWFB) and prosocial motivation (PSM) in employees in organisations in the private sector in Colombia and Chile. It also explores whether a family -friendly organisational culture (FFOC) moderates this relationship.

A questionnaire (the International Family-Responsible Employed Index) was used to survey 486 employees (Chile: 255, Colombia: 231). The questionnaire consisted of three main sections: independent variables (WFP, FSSB, (FFOC and individual characteristics); dependent variables (organisational outcomes of TI, loyalty and commitment, and individual outcomes of health, WFE, SWFB, PSM and intrinsic); and demographic indicators. Structural equation modelling was used to test the possibility of comparing both countries and the model proposed.

Results show a negative relationship between FSSB and TI, and a positive relationship between FSSB and SWFB and PSM. There are no significant differences among countries, except when looking at PSM. FFOC moderates the relationships between FSSB and TI, between policies and FSSB and SWFB and between FSSB and PSM. It also has a direct effect on PSM.

This paper is one of the first to offer comparative data from organisations and managers in Latin American countries at the work–family interface. It also contributes to the literature, offering results partly consistent with studies in Anglo–Saxon countries.

Este estudio explora cómo los comportamientos solidarios de los supervisores y las políticas de apoyo para el balance entre trabajo-familia influyen en la intención de dejar la empresa, la satisfacción con el balance trabajo-familia y la motivación pro-social de los empleados en organizaciones en el sector privado en Colombia y Chile. Además, se centra en cómo una cultura amigable para las familias modera la relación.

El cuestionario IFREI (International Family-Responsible Employed Index) fue utilizado para recabar información de 486 empleados (Chile: 255, Colombia: 231). El cuestionario consta de tres partes principales: variables independientes (Políticas Trabajo-Familia (WFP), Comportamientos solidarios de supervisores (FSSB), Cultura organizacional amigable para la familia (FFOC), y características individuales); variables dependientes (resultados organizacionales de intenciónde dejar la empresa, lealtad y compromiso; y resultados individuales de salud, enriquecimiento trabajo-familia, satisfacción con el balance trabajo-familia (SWFB) y motivación: pro-social (PSM) e intrínseca; e indicadores demográficos. Se usa ecuaciones estructuradas para probar la posibilidad de comparar ambos países y el modelo propuesto.

Los resultados muestran una relación negativa entre comportamientos solidarios e intención de dejar la empresa y una relación positiva entre comportamientos solidarios de supervisores y satisfacción con el balance trabajo-familia y motivación pro-social. No hay diferencias significativas entre los países, excepto en lo que se refiere a motivación pro-social. La cultura organizacional amigable para la familia modera la relación entre comportamientos solidarios de los supervisores y la intención de dejar la empresa, entre políticas y FSSB y SWFB, y entre FSSB y PSM. La cultura organizacional amigable a la familia tiene un efecto directo en la motivación pro-social.

Este trabajo es uno de los primeros en ofrecer información comparativa entre organizaciones y directivos de países Latinoamericanos alrededor de la esfera trabajo-familia. También contribuye a la literatura ofreciendo resultados parcialmente consistentes con estudios de países anglosajones.