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Business confidence is crucial to firm decisions, but it is deeply related to professional forecasters' expectations. Since Brazil is an important inflation targeting country, this paper investigates whether monetary policy credibility and disagreements in inflation and interest rate expectations relate to business confidence in Brazil. The study considers the aggregate business confidence index and the business confidence indexes for 11 industrial sectors in Brazil.

The authors run ordinary least squares and generalized method of moments regressions to assess the direct effects of disagreements in expectation and monetary policy credibility on business confidence. The authors also make use of Wald test of parameter equality to observe whether there are “offsetting effects” of monetary credibility in mitigating the effects of both disagreements in expectations on business confidence. Besides, the authors run quantile regressions to analyze the effect of the main explanatory variables of interest on business confidence in contexts where business confidence is low (pessimistic) or high (optimistic).

Disagreements in inflation expectations reduce business confidence, monetary policy credibility improves business confidence and credibility mitigates the adverse effects of disagreements in expectations on business confidence. The sectors most sensitive to monetary policy credibility are Rubber, Motor Vehicles, Metallurgy, Metal Products and Cellulose. The findings also suggest the effect of disagreement in inflation expectations on business confidence decreases as confidence increases, and the effect of monetary policy credibility on business confidence increases as entrepreneurs are more optimistic.

While there is evidence that monetary policy credibility is beneficial to the economy, there are no studies on the effects of disagreements in inflation and interest rate expectations on business confidence (at the aggregate and sectoral levels). Besides, there are no studies that have investigated whether monetary policy credibility can mitigate the effects of disagreements in inflation and interest rate expectations on business confidence (at the aggregate and sectoral levels). Therefore, there are gaps to be filled in the literature addressing business confidence, monetary policy credibility and disagreements in expectations. These issues are particularly important to inflation targeting developing countries.

This study estimates the effects of political uncertainty and economic policy uncertainty on business confidence. Moreover, it also examines business confidence as a transmission channel of political uncertainty and economic policy uncertainty to investment.

The study addresses the Brazilian case from May 2004 to December 2017. Brazil experienced situations of political instability and public distrust in government and its policies, which reflected on the economic environment. The study uses two business confidence indicators that capture entrepreneurs' sentiment in relation to their business and the economy. All models are estimated using ordinary least squares and generalized method of moments.

The estimates reveal that increases in both political uncertainty and economic policy uncertainty reduce business confidence. The findings also indicate that business confidence acts as a transmission mechanism, i.e. uncertainties affect investments through business confidence.

The findings point to the following practical implications related to the existence of uncertainties in the Brazilian economy: different institutional difficulties and government indecisions have blurred the political scene and caused political uncertainties. In addition, the same aspects that blurred the political scene also caused uncertainties in relation to economic policy that undermined business confidence, and affected investment.

There is a vast literature on business confidence, as well as studies addressing the relationship between business confidence and investment. This study differs from other studies as follows: in addition to the political uncertainty, it also analyzes the effect of economic policy uncertainty on business confidence; it uses different measures to capture political instability, and it analyzes whether business confidence acts as a transmission channel of both uncertainties to investments.

Due to the fact that crime and violence affect the economy and the business environment, and since the economic environment affects entrepreneurs' expectations and therefore their decisions, this study analyzes the effect of both violence and crime on the confidence of entrepreneurs from the state of Rio de Janeiro.

Making use of time series methodology, the authors provide OLS and GMM estimates for the effects of violence and crime on the business confidence index of entrepreneurs in Rio de Janeiro. The analysis of the Rio de Janeiro case is relevant since Rio de Janeiro is the second state, after São Paulo, with the largest participation in the Brazilian GDP, and crime and violence have very high indicators in this state. The analysis comprises the period between January 2012 and July 2018 (monthly data).

The results suggest that violence and crime negatively impact business confidence in Rio de Janeiro. The estimates reveal that, among all economic and noneconomic variables, the third variable with the greatest impact on business confidence is “cargo thefts.” An increase of one standard deviation in this variable reduces business confidence by approximately 2.48 basis points, while increases of one standard deviation in “violent deaths,” “commerce thefts” and “extortion” reduce business confidence by approximately 1.24, 1.46 and 1.47 bp, respectively. The impacts caused by these violence and crime variables are greater than the effect caused by an increase of one standard deviation in the real interest rate.

The findings reveal that a stable economic environment with economic growth is as important to business confidence as the adoption of policies aimed at increasing public security through the fight against crime and violence.

If on the one hand the literature provides evidence that crime is harmful to the economy, on the other hand no study has so far analyzed the impact of crime and violence on business confidence. This type of analysis is relevant since confidence is an important aspect in the expectation formation process and thus to production and investment decisions and economic activity. Thus, this study is the first to analyze the effects of crime and violence on business confidence and consequently, the first to explore the consequences of crime on the economy through the expectations channel.

The purpose of this study is to examine the transmission of volatility between business confidence index and stock market indices in Greece. The country remains the riskiest project in European Union (EU) and previous studies fail to reach an accurate conclusion regarding the direction of this transmission.

The study covers the period from January 2013 to August 2022 in monthly basis where important economic events occur. Considering that these economic events derive strong volatility moments, the authors adopt a new methodology that measures the transmission of volatility with higher precision. This is the generalized spillover analysis by Diebold and Yilmaz (2009, 2012).

The results indicate that Business Confidence Index (BCI) is the main receiver of volatility spillovers in Greece under all aspects of the used methodology. The specificity of the results shows that business activity through a green growth model is what drives investor confidence and then their activities.

Although a handful of studies have considered the transmission of volatility between BCI and stock market indices, this study contributes in several ways. This study focuses on one country (Greece), avoiding the dispersion of the results from the examination of the relationship in several countries. The used country remains the riskiest project in EU even nowadays, while other studies fail to confirm the main direction of volatility spillovers from business confidence to stock returns. This study covers a period that is ignored by previous studies and includes important economic events. In addition, considering that these economic events derive strong volatility moments, a new methodology is adopted in this field of research that measures the transmission of volatility with higher accuracy.

The purpose of this study is to examine the propagation of consumer and business confidence in the euro area with a particular focus on the global financial crisis (GFC), the European sovereign debt crisis (ESDC) and the COVID-19-induced Great Lockdown.

The authors apply Diebold and Yilmaz’s connectedness framework and the improved method based on the time-varying parameter vector autoregressive model.

The authors find that although the evolution of business confidence marked the GFC and the ESDC the role of consumer confidence (mainly in those countries with stricter containment and closure measures) increased in the COVID-19-induced crisis.

The findings are related to the different origins of the examined crisis periods, and the analysis of their interrelationship is a very relevant topic for future research.

The purpose of this paper is to examine empirically the determinants of owner manager financial self-confidence. In particular, it estimates the effect of bank credit rejection and financial education (FE) on the financial self-confidence of business owners.

This paper uses data from 2004 and 2008 surveys of 2,500 UK small and medium sized enterprises (SMEs). An ordered probit estimation is used to measure and assess the effect of bank credit rejection and FE variables on financial self-confidence for the two periods. The authors also explore potential differences in self-confidence between males and females.

The results show that outright bank credit rejection reduces financial self-confidence among owner managers whereas partial bank credit rejection is found to help boost confidence prior to the financial crisis. There is strong evidence that FE increases financial self-confidence. Finally, the authors find no association between gender and reported self-confidence in finance.

Entrepreneurs and potential entrepreneurs are encouraged to explore financial literacy and knowledge with a view to increasing their financial self-confidence. This will help SMEs to deal with the banks or other finance providers more efficiently. In addition, better application procedures and information on lending criteria may help SMEs to minimize the probability of bank credit rejection. So the current study has implications for professional bodies as well. The study, however, is restricted to sole proprietor and partnership SMEs and in the UK context only.

Financial self-confidence has a progressive effect on entrepreneurship and entrepreneurial venture growth. The financial self-confidence of owner managers can support their entrepreneurial capability in starting and operating one or more businesses. As entrepreneurs successfully start and operate their own businesses, they are contributing to economic development through job creation, employment and tax contribution.

This paper makes an original contribution in highlighting the usefulness of FE in boosting financial self-confidence among entrepreneurs and potential entrepreneurs. It is also found that the experience of bank credit rejection reduces entrepreneurs’ financial self-confidence.

This study aims to examine the conditions that help businesses develop confidence in their government regulators. Businesses are dependent upon governments and subject to their regulations. This study proposes that businesses and governments that confirm each other’s social face have the relationship that helps businesses become confident in their government regulators. It also uses the theory of cooperation and competition to identify when they confirm social face.

Data were collected in Shanghai, China, from government bodies and business organizations from diverse industries. One hundred forty-six pairs of government officials and business managers provided us data for our analysis.

Structural equation analysis suggests that cooperative, but not competitive or independent, goals provide the foundation for mutual confirmation of social face that in turn results in business confidence that the government is competent, caring and regulates effectively.

These findings were interpreted as reaffirming the value of relationships for collaboration between business and government and the usefulness of the concepts of social face and goal interdependence for understanding how to develop high-quality business–government relationships in China.

This study directly investigates social face among Chinese people and explores its impact on inter-organizational government–business relationships. This study uses social face and goal interdependence to understand when business and regulators develop relationships that promote effective regulation.

Business graduates’ enterprising capability augments their work readiness, transforming them into professionals capable of driving successful outcomes. At the core lie self-confidence and negotiating competence. However, embedding enterprise education and developing assessments to evidence learning is challenging. This study aims to offer a blueprint for establishing enterprise learning in the classroom and investigating the effectiveness of cultivating negotiating competence and self-confidence.

Modelled on Kolb’s experiential learning cycle, students engage in in-class and real-life negotiations, assessing self-confidence using a scale founded in Bandura’s self-efficacy theory. Open-ended reflections are also submitted. Quantitative data is analysed through multiple linear regression, while quantitative and qualitative data triangulation substantiates enterprise learning in negotiating competence and self-confidence.

Students’ reflections show that low self-confidence poses an initial barrier in negotiations, overcome with successive engagements. Quantitative analysis uncovers response-shift biases, with female and male students overestimating initial self-confidence levels. The gender and difference score type interaction reveals a more pronounced bias among female students starting from a lower baseline than male students, implying a more substantial self-confidence improvement for female students. These findings challenge traditional assumptions about gender differences in negotiations and emphasize the need for nuanced perspectives.

Enterprising capability is pivotal for business professionals. This study highlights the advancement of negotiating competence and self-confidence. It contributes uniquely to the development of enterprise education pedagogy. Focusing on nuanced gender differences challenges prevailing assumptions, providing a perspective to the discourse on negotiating competence and self-confidence in management training.

The purpose of this paper is to examine the extent to which New Zealand business web sites conform to the provisions of the New Zealand Privacy Act, 1993 as an articulation of the national values on the rights of individuals to information privacy. The secondary aim is to assess whether adherence to these values might be used as criteria that can reflect on the business integrity of the web site sponsor.

The privacy notices and information‐handling practices of New Zealand business web sites were analysed using a content analysis methodology. The analysis was carried out on a sample of 200 companies, selected at random from a published list of the top 800 companies in New Zealand in 2005. Government web sites were excluded.

The first research hypothesis – that New Zealand business web sites demonstrate awareness of the privacy concerns of customers by posting a privacy notice – was not supported. Similarly, the privacy notices on New Zealand business web sites did not reflect the principles of the New Zealand Privacy Act, 1993 as a basis for establishing “value congruence” with customers. Consequently the use of the principles of the Privacy Act to assess business integrity was not demonstrated sufficiently by the investigation.

The lack of a usable convention for evaluating privacy notices on New Zealand business web sites may lead to a loss of value congruence between businesses and their customers, leading to less‐than‐optimal commercial transactions. The principles of the New Zealand Privacy Act 1993 define the national values and privacy rights of online customers. The use of the Privacy Act to assess the information handling practices of New Zealand businesses online could ensure more ethical business practice, demonstrate business integrity and promote customer confidence.

The use of legislated privacy principles as a reflection of established national values on the rights of citizens could provide a useful measure of value congruence and possibly business integrity. The variety of privacy legislation worldwide reflects a global lack of agreement on acceptable principles. Nevertheless, businesses wishing to establish their integrity and value congruence would be advised to ensure that their web sites provide for the growing sensitivity to privacy issues and the way that personal information is gathered and used online.

The purpose of this paper is to explore the potential of a collaborative organisational development and learning (OD/L) programme for small and medium-sized enterprise’s (SME’s) and micro businesses (MB) to contribute towards business resilience and sustainability.

This is an ethnographic case study that utilised an iterative interpretative approach to data collection and analysis, which was conducted around key OD/L interventions.

The findings demonstrate that the provision of an OD/L programme that focused on collaboration and learning, had both an immediate positive effect on business owners and long term effect in relation to business confidence, clarity, and action.

The limitations of this study relate to the fact that the sample population is small so that the findings are not generalisable, and some of the challenges faced by SME business owners may be confined to socially deprived rural locations. Future research could focus on replicating the designed OD/L programme, or aspects of it, and a longitudinal study could be conducted over time.

The practical implications of this study are that it gives direction for those designing support for SME/MB’s to include tried and proven OD/L interventions.

The social implications include that by demonstrating targeted support to SME business owners in socially deprived areas, the potential for growth in terms of survival and flourishing are increased and economic regeneration is positively influenced.

There are few studies in this area, the OD/L programme highlights that collaboration, and sustainable actions to develop resilience, have a part to play in supporting the SME/MB population, and a contribution to make towards a more buoyant economy.