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This work analyzes, through social-environmental reports, whether banks with higher transparency in social-environmental policies better safeguard financial stability in Brazil.

The analysis is carried out through a panel database analysis of the 42 largest Brazilian banks, representing 98% of the Brazilian financial system. Seeking to avoid spurious results, we followed rigorous methodological standards. Hence, we conducted an empirical analysis using a dynamic panel data model, we used the difference generalized method of moments (D-GMM) and the system generalized method of moments (S-GMM).

The results show that the higher the transparency of social-environmental policies, the lower the chance of possible stress on the financial stability of Brazilian banks. In sum, this study builds evidence that disclosing risks related to policies about sustainability can enhance financial stability. It is essential to highlight that social-environmental transparency does not have as direct objective financial stability.

The manuscript submitted represents an original work that analyzes whether banks with higher transparency in social-environmental policies better safeguard financial stability. Some countries, such as Brazil, have their potential for sustainable policies spotlighted due to their green territory and diverse natural ecosystems. Besides having green potential, Brazil is a developing country with a well-developed financial system. These characteristics make Brazil one of the best laboratories for studying the relationship between transparency in social-environmental policies and financial stability.

The purpose of this paper is to analyze the financial friction effect of non-performing loans (NPLs) on financial intermediation (FI) through empirical evidence from the Brazilian experience.

The authors develop a new variable, financial intermediation flow and a new indicator, FI, both measures of FI. To empirically test FI, the authors use a dynamic panel data framework that draws on 101 banks (December 2000 to December 2015).

An increase in NPL reduces FI. Thus, NPL amplifies financial friction in FI. This result holds in different time frames, such as the pre-crisis period, the crisis period and the post-crisis period.

The FI measure developed in this study offers the policymakers a possibility to monitor financial stability.

This study adds to this debate by proposing a measure of FI derived from financial flows. This measure allows one to estimate the role of NPL as a financial friction that can pose a threat to financial stability.

This paper analyzes the effect of the banking market (concentration and competition) on financial development.

In order to estimate the effects of banking concentration and competition on financial development, we conducted an empirical analysis using the System Generalized Method of Moments (S-GMM) through a dynamic panel data model.

The main results suggest that concentration and competition affect financial development. In particular, an increase in bank concentration may inhibit the country's financial development, due to the lack of competition. Our results do not confirm the controversy between concentration and competition, suggesting that concerning financial development, concentration is the reverse of competition.

The results of this study add a new perspective on banking market power: a financial system concentrated or uncompetitive constrains financial development.

The literature that combines the investigation of the effects of banking market structure (concentration) and banking market conduct (competition) on financial development is scarce. Although a concentrated banking sector can reduce competition through barriers to new entrants (which could expand financial services offer), it is also true that a concentrated banking sector can be competitive. In order to avoid the controversy, our paper chooses to look into a comprehensive approach considering independent measures of bank concentration and bank competition, which together refer to the banking framework.

The purpose of this paper is to discuss more efficient mechanisms of regulation in the financial system.

The authors developed a theoretical two-period model of financial flows (FFs) that considers households, banks, and a social planner.

It is important to highlight that different from other studies that do not distinguish between financial crisis and financial instability, the authors assume financial instability does not mean crisis, but represents a deviation in the behavior of the aggregate financial intermediation and in the financial operations of each bank from the equilibrium.

The practical implication of the model is the proposition of an efficient policy for financial stability based on forward-looking financial regulations.

An important result is that bank failures occur when banks do not maintain sufficient resources to support the liquidity constraint from the interbank market. Another result is that the central bank reacts, via exchange of reserves with the market, to financial instability. This behavior on the part of the central bank is inefficient because the banks will assume that in the case of failure they will be “saved;” thus it creates an adverse incentive (moral hazard) that can amplify the risk over the entire financial system.

The originality of the model is the proposition of an efficient policy for financial stability based on a forward-looking financial regulation. In this strategy the regulator acts in advance (ex ante) to minimize the mismatch of FFs in relation to the flow balance. This manner of acting is a counterpoint to the financial regulation based on capital requirement.

This study aims to investigate the risks associated with managing the dispersed knowledge in inter-organizational arrangements for innovation. Specifically, it proposes a model to analyze the knowledge management risks in open innovation, applied in four steps.

Initially, the authors carried out a systematic literature review (SLR) on the concepts that connect knowledge management, inter-organizational arrangements for innovation and risks. The SLR results led to a complementary theoretical review on the conceptual elements in question. Based on the findings, the authors have developed a model to analyze the knowledge management risks in open innovation, which was validated by experts. It was then studied the case of GOL Airlines, a company that uses innovation to overcome the paradox between low-cost and full service in the commercial air transportation industry, considering the application and adjustment of the proposed model.

Open innovation is one of the inter-organizational arrangement types most applied in the context of innovation. Relations between agents are the primary sources of risks when managing the dispersed knowledge in these arrangements. The authors have found five main risks associated, namely, risk of the innovative effort does not reach the expected objective, risk of knowledge transfer being ineffective, risk of misappropriation of value, risk of dependency (lock-in) and risk of relations.

The practical implication is the proposition of a procedure for applying the model to analyze the knowledge management risks in open innovation, which makes it a prescriptive model for identifying risks. The proposed model is described in four steps, namely, to identify the agents in the environment of the value of open innovation; to identify the types of relations of each agent; to consider the barriers to knowledge management in innovation; and to assess the risks considering the possibilities derived from the agents, their relationships and the barriers. The model is applied in the GOL case and the results are presented.

First, it uses a novel approach to investigate open innovation while studying its risks. This approach considers the knowledge is dispersed and flows from one organization to another through a combination of relations inside the environment of value where the open innovation materializes. Second, it contributes to theory development by opening a research front that fuses four areas: risk management, knowledge management, innovation and inter-organizational arrangements. Third, this paper proposes a theoretical model and presents its operationalization. The study aims to make an impact beyond academia and uses a case study to illustrate the model application in a real and interesting open innovation project to support the business model at GOL Airlines.

The purpose of this article is to analyze the influence of the diversity of information and the use of Web 2.0 applications on the web positioning of online business information providers.

A total of 203 online business information provider websites were selected using three search engines (Google, Yahoo and Bing). This information was encoded to develop two logistic regression models.

The results suggest that the knowledge offered and the resources used to transfer this knowledge play important roles in the web positioning of online business information providers. This study found that entrepreneurs mainly seek technological knowledge, and to acquire it, they use various Web 2.0 applications that do not necessarily include social networks.

This article presents a novel proposal to analyze how knowledge diversity and Web 2.0 applications influence the web rankings of websites that offer information and knowledge for established or new, small and medium enterprises.

This article is novel in that it links the theory of knowledge dissemination with the technologies of the Internet (websites, Web 2.0 applications) and provides evidence of diverse sources of online information that are potentially useful for the entrepreneur of the twentieth century.

El propósito de este artículo es analizar la influencia de la diversidad de información y el uso de las aplicaciones Web 2.0 en el posicionamiento Web de los proveedores de información empresarial en línea.

Un total de 203 sitios Web de los proveedores de información empresarial en línea fueron seleccionados utilizando tres motores de búsqueda (Google, Yahoo y Bing). Esta información fue codificada para desarrollar dos modelos de regresión logística.

Los resultados sugieren que el conocimiento ofrecido y los recursos utilizados para transferir este conocimiento desempeñan funciones importantes en el posicionamiento Web de los proveedores de información empresarial en línea. Este estudio encontró que los empresarios buscan principalmente el conocimiento tecnológico y, para adquirirlo; utilizan varias aplicaciones Web 2.0 que no necesariamente incluyen las redes sociales.

Este estudio presenta una propuesta novedosa para analizar cómo la diversidad de conocimiento y las aplicaciones Web 2.0 influyen en el posicionamiento Web de los sitios Web que ofrecen información y conocimiento para las pequeñas y medianas empresas sean nuevas o establecidas.

Este artículo es novedoso porque vincula la teoría de la difusión de conocimiento con las tecnologías de Internet (sitios Web, aplicaciones Web 2.0) y proporciona evidencia de diversas fuentes de información en línea que son potencialmente útiles para el empresario del siglo XX.

The purpose of this study is to investigate the role of sales, as a proxy for size, in moderating the impact of institutional incongruence between formal and informal institutions on the formalization of microenterprises in middle-income countries in Latin America.

The paper uses a probit regression model to examine business formalization as a binary outcome of formal and informal institutions. Data was collected through interviews and surveys across 52 municipalities in the Metropolitan Region of Santiago, Chile. The study used a stratified sampling approach and was conducted between November 2022 and January 2023.

The results offer three key insights into the formalization of microenterprises in middle-income countries. First, we show that formal institutions do not significantly influence formalization decisions among microentrepreneurs in middle-income countries, challenging the traditional belief that formal institutions alone significantly influence formalization in these contexts. Second, we show that informal institutions are significant predictors of informality, especially among smaller microenterprises. Third, we highlight that the smaller the business, the stronger the negative effect of informal institutions on formalization, and thus, the institutional incongruence between formal and informal institutions decreases for larger businesses.

This paper contributes to management literature by shedding light on the drivers of formalization in middle-income countries, a departure from most formalization studies wherein the focus is primarily on low-income economies. The findings suggest that policymakers in middle-income countries should focus on enabling microenterprise growth through sales, rather than targeting specific demographic groups or relying solely on formal institutional enforcement to promote formalization.

El objetivo de este estudio es investigar el papel de las ventas, utilizadas como un indicador de tamaño, en la mediación del impacto de la incongruencia institucional entre instituciones formales e informales en la formalización de microempresas en países de ingresos medios en América Latina.

Utilizamos un modelo de regresión Probit para examinar la formalización empresarial como un resultado binario de instituciones formales e informales. Los datos se recopilaron a través de 110 entrevistas y encuestas en 52 municipios de la Región Metropolitana de Santiago, Chile. El estudio empleó un enfoque de muestreo estratificado y se llevó a cabo entre noviembre de 2022 y enero de 2023.

Nuestros resultados ofrecen tres ideas clave sobre la formalización de microempresas en países de ingresos medios. Primero, demostramos que las instituciones formales no influyen significativamente en las decisiones de formalización entre las microempresas en países de ingresos medios; esto desafía la creencia tradicional de que las instituciones formales por sí solas influyen significativamente en la formalización en estos contextos. Segundo, nuestro estudio muestra que las instituciones informales son predictores significativos de la informalidad, especialmente entre las microempresas más pequeñas. Tercero, nuestro estudio destaca que el efecto negativo de las instituciones informales sobre la formalización es más fuerte para negocios de menor tamaño; por lo tanto, la incongruencia institucional entre instituciones formales e informales disminuye para negocios de mayor tamaño.

Este artículo contribuye a la literatura iluminando sobre los impulsores de la formalización en países de ingresos medios, a diferencia de la mayoría de los estudios de formalización en la región latinoamericana que se centran principalmente en países de bajos ingresos. Nuestros hallazgos sugieren que los responsables de políticas en países de ingresos medios deberían centrarse en impulsar el crecimiento de las microempresas a través de las ventas, en lugar de enfocarse en grupos demográficos específicos o depender únicamente del cumplimiento institucional formal para promover la formalización.

O objetivo deste estudo é investigar o papel das vendas, usadas como um indicador de tamanho, na mediação do impacto da incongruência institucional entre instituições formais e informais na formalização de microempresas em países de renda média na América Latina.

Utilizamos um modelo de regressão Probit para examinar a formalização empresarial como um resultado binário de instituições formais e informais. Os dados foram coletados por meio de 110 entrevistas e pesquisas em 52 municípios da Região Metropolitana de Santiago, Chile. O estudo empregou uma abordagem de amostragem estratificada e foi realizado entre novembro de 2022 e janeiro de 2023.

Nossos resultados oferecem três ideias-chave sobre a formalização de microempresas em países de renda média. Primeiro, demonstramos que as instituições formais não influenciam significativamente as decisões de formalização entre as microempresas em países de renda média; isso desafia a crença tradicional de que as instituições formais, por si só, influenciam significativamente a formalização nesses contextos. Segundo, nosso estudo mostra que as instituições informais são preditores significativos da informalidade, especialmente entre as microempresas menores. Terceiro, nosso estudo destaca que o efeito negativo das instituições informais sobre a formalização é mais forte para negócios de menor porte; portanto, a incongruência institucional entre instituições formais e informais diminui para negócios de maior porte.

Este artigo contribui para a literatura iluminando os impulsionadores da formalização em países de renda média, ao contrário da maioria dos estudos de formalização na região latino-americana, que se concentram principalmente em países de baixa renda. Nossos achados sugerem que os responsáveis pelas políticas em países de renda média deveriam focar em impulsionar o crescimento das microempresas por meio das vendas, em vez de se concentrar em grupos demográficos específicos ou depender exclusivamente do cumprimento institucional formal para promover a formalização.

The purpose of this paper is to analyse a firm’s internal and external drivers of formal and informal open innovation (OI) practices. To enrich the analysis and to obtain more robust results, the authors checked the study’s hypotheses using samples from two European regions, Navarre (Spain), classified an innovator follower, and Noord-Brabant (Netherlands), an innovator leader.

The sample selected includes manufacturing and service firms that completed the Community Innovation Survey for the year 2008 in both regions. The final sample had 1,288 observations from Navarre and 623 observations from Noord-Brabant. The authors consider two OI dimensions, breadth of information sources for informal OI practices and breadth of cooperation agreement for formal OI practices. Finally, the estimates were performed by means of a negative binomial regression.

Results indicate that for the internal drivers, product-related motives to innovate and in-house R&D intensity are strong drivers for both formal and informal OI engagement in general, while the influence of process- and environmental-related motives are context dependence.

This study distinguishes between formal (i.e. cooperation activities) and informal (i.e. external sources of information used for new ideas) inbound OI practices, while most of the literature has focussed on one single type of OI practice. The use of two samples coming from two different European regions allows observe whether the adoption motives of the OI practices are robust independently from the firms’ location or if they vary across regions owing to context dependence.

La innovación abierta (IA) ha demostrado ser crucial para aumentar la innovación y el desempeño económico de las empresas. Sin embargo todavía existe una comprensión limitada de los factores que impulsan realizar esta IA. El principal objetivo de este artículo es arrojar luz en esta dirección al analizar simultáneamente los determinantes internos y externos que llevan a las empresas a realizar prácticas formales e informales de IA.

Las hipótesis son contratadas con muestras de dos regiones europeas, Navarra (España), calificada como región seguidora en innovación, y Noord Brabant (Países Bajos), líder innovador. La muestra seleccionada incluye empresas manufactureras y de servicios que completaron la Community Innovation Survey (CIS) 2008.

Los resultados indican que, para los determinantes internos, los motivos relacionados con la búsqueda de innovaciones en producto y la intensidad interna de I + D son fuertes impulsores para todas las prácticas de IA, mientras que la importancia de los motivos relacionados con la obtención de innovaciones en proceso y medioambientales dependen del contexto regional. En cuanto a los factores externos, la política pública influye en la adopción de IA tanto formal como informal, pero estos resultados varían entre las regiones dependiendo del origen de los fondos.

El estudio presenta importantes implicaciones para la literatura en IA. En primer lugar, mientras la mayoría de la literatura analiza un único tipo de prácticas de IA, este estudio distingue prácticas formales e informales de IA y estudia sus determinantes internos y externos simultáneamente. Segundo, las hipótesis son contrastadas en dos regiones europeas diferentes. Esto permite observar si los resultados obtenidos son robustos independientemente de la localización de las empresas o si varían dependiendo del contexto de ambas regiones.

A inovação aberta (IA) provou ser crucial para aumentar a inovação e o desempenho económico das empresas. No entanto, ainda há uma compreensão limitada dos fatores que conduzem essa IA. O principal objetivo deste artigo é lançar luz nessa direção, analisando simultaneamente os determinantes internos e externos que levam as empresas a realizar práticas de IA formais e informais.

As hipóteses são contratadas com amostras de duas regiões européias, Navarra (Espanha), classificada como uma região de inovação, e Noord Brabant (Holanda), um líder inovador. A amostra selecionada inclui empresas de fabricação e serviços que completaram o Community Innovation Survey (CIS) 2008.

Os resultados indicam que, para os determinantes internos, os motivos relacionados à busca de inovações no produto e na intensidade interna de P & D são fortes impulsionadores para todas as práticas de IA, enquanto a importância dos motivos relacionados à obtenção Inovações em processo e ambientes dependem do contexto regional. Em relação aos fatores externos, observamos que a política pública influencia a adoção de IA formal e informal, mas esses resultados variam de acordo com as origens dos fundos.

O estudo apresenta implicações importantes para a literatura em IA. Primeiro, enquanto a maioria da literatura analisa um único tipo de práticas de IA, este estudo distingue práticas formais e informais de IA e simultaneamente estuda seus determinantes internos e externos. Em segundo lugar, as hipóteses são contrastadas em duas regiões européias diferentes. Isso permite verificar se os resultados obtidos são robustos independentemente da localização das empresas ou se variam de acordo com o contexto de ambas as regiões.

This paper aims to shed some light on the distribution of population, living in disaster risk areas in Brazil, on the intra-urban scale. The following three aspects are evaluated in this paper: the distribution of exposed population according to municipal size classification; the population density in disaster risk areas; and the municipal human development classification for the municipalities with disaster risk areas.

This research is based on an explorative approach. The main database used is a result of the association of landslide and flood risk areas to demographic census, available for 825 Brazilian municipalities. Additional databases were integrated to characterize disaster risk management and municipal human development.

The results revealed that the population exposed to disaster areas is concentrated within the capitals and small cities in the country. Moreover, disaster risk areas are densely populated even in small cities, suggesting that it is a reality faced not only by the larger cities. Finally, disaster risk areas exist even inside municipalities with a high level of human development.

These findings could contribute to the understanding of the spatialisation of disaster risk in Brazil, a primordial step for the reduction of human losses.

A novel perspective about the Brazilian population exposed to disaster risk was obtained, revealing a current issue faced by the municipalities independent of the size classification and level of human development.

Integrated reporting (IR) provides integrated financial and nonfinancial information about companies based on the integrated thinking principle. This study aims to investigate how the cost of equity relates to IR disclosure and the impact of an effective legal system on this relationship. Effective legal system (“enforcement”) represents the strength of the legal system of a country. Although voluntary initiatives are essentially not based on regulations, the authors expect that the effective legal system will influence the implementation of such.

To test the study’s hypotheses, linear regressions were applied using the Thomson Reuters database to analyze 20,463 firm-year observations between 2010 and 2017. The treatment group comprised companies that adopted IR; using propensity score matching, the authors defined the control group. The authors adopted a research design based on difference-in-differences to compare the cost of the capital of treatment with the control group for the periods before and after the IR adoption.

The results indicate that IR disclosure is negatively related to the cost of equity, and this negative effect is more prevalent for companies operating in high-enforcement environments.

Cost of equity is not a directly observable variable, implying that the results are sensitive to changes in the parameters that are used to compute this term. The results can help companies looking for evidence of potential effective gains of adopting IR. They also help understand that discussions related to environment, social, and governance information are somehow incorporated by analysts and investors, and reflected in the cost of raising funds.

This study demonstrates how IR relates to the cost of equity considering a global sample of voluntary adopters. It also analyzes the impact of institutional factors on this relationship by using a robust method of analysis. The results support the argument that companies in a strong legal system are more likely to behave sustainably and to disclose this attitude. Additionally, they are pressured to implement proposals rather than just adopting an initiative as a label.