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In the hybrid knowledge-sharing platform where paid and nonpaid (“free”) knowledge activities coexist, users’ free knowledge contribution may be influenced by financial factors. From the perspective of opportunity cost, this study investigates the direct effect of how the amount of monetary income from users’ contribution to paid knowledge activities influences their free knowledge contribution behavior in the future. Further, this study aims to verify the interaction effect of financial and nonfinancial factors (i.e. the experience of free knowledge contribution and social recognition) on free knowledge contribution.

Objective data was collected from a hybrid knowledge-sharing platform in China and then analyzed by using zero-inflated negative binomial regression model.

Results show that the amount of monetary income that knowledge suppliers gain from paid knowledge contribution negatively influences their free knowledge contribution. Experience of free knowledge contribution strengthens the negatively main effect, while social recognition has the weakening moderating role.

Although some studies have explored and verified the positive spillover effect of financial incentives on free knowledge contribution, the quantity dimension is ignored. This study examines the hindering influence of the quantity of monetary income from the perspective of opportunity cost. By taking the characteristic of knowledge suppliers and platforms as moderators, this study deepens the understanding of the influence of monetary income on free knowledge contribution in the hybrid knowledge-sharing platform.

This article aims to clarify the role of social capital and social capital inequality embedded in bank ties in enabling and diversifying new firms' debt use.

The study adopts a quantitative method, using an unbalanced longitudinal dataset covering three years–2011, 2013 and 2015–from a project on small manufacturing enterprises in Vietnam. The sample consists of 513 firm-year observations.

Network extensity and network mobilisation increase new firms' debt use. Differences in ascribed and attained social statuses (i.e. gender, generation, business association membership and political affiliation) result in social capital inequality between entrepreneurs. Entrepreneurs who are of a younger generation, have higher levels of education and are not members of the Communist Party benefit less from social capital than those who are older, have less education and are party members.

The effects of access to and the use of the social capital embedded in bank ties on new firms' debt use are both studied. The sources of social capital inequality are investigated at the individual level through distinguishing ascribed and attained social statuses and explained by two mechanisms: capital deficit and return deficit. The moderating effects of social capital inequality are also examined.

Using annual data from 1970 to 2013 for China and India, this paper aims to examine the impact of globalization and financial development on economic growth by endogenizing capital and inflation and drawing comparisons between the two fastest growing emerging market economies.

In the long run, co-integration test results indicate that financial development increases economic growth in China and India.

The results also reveal that globalization accelerates economic growth in India but, surprisingly, impairs economic growth in China, as it increases competition for exports. The results furthermore disclose that acceleration in capitalization and inflation, as a proxy for aggregate demand, are positively linked to economic growth in China and India.

Causality test results indicate that both financial development and economic growth are interdependent. In contrast, causality runs from higher economic growth to increased globalization in India, while the results do not support long-term causality between globalization and economic growth in China.

The aim of this chapter is to investigate the relationship between ethics, risks of compliance failure and strategic value of global responsibility for BRICS companies. The first part of the chapter adopts a theoretical approach: it introduces and analyzes the key role of compliance risk management for sustainable and successful development of companies. The second part of the chapter uses an empirical approach, based on the case study method. The chapter focuses on the BRICS. The chapter demonstrates that mere formal compliance with laws, recommendations, and internal codes is not sufficient for companies that want to be responsible and attract stakeholders’ consent and resources. A shared background of ethical principles is required for a proper understanding of the rules, in order to prevent the risk of compliance failure and limit the global risk exposure of a company. Due to the business perspective adopted in the research, this chapter leaves out the sociological aspects regarding how to create, spread, and strengthen the culture of compliance within a company. The chapter encourages companies to connect ethical principles and compliance with the rules. Indeed, a lack of ethics in business operations, obscured by formal compliance, often results in indirect negative impacts on stakeholder relationships, so it is only a futile attempt to act responsibly. The originality of the chapter consists in suggesting the adoption of a responsibility-oriented approach for compliance risk management.

This study aims to investigate both market concentration and bank competition of banking across six emerging Asian countries (e.g., Bangladesh, Indonesia, India, Philippines, Malaysia, and Vietnam) over pre and post the 2008 global financial crisis. The conduct parameter approach following the framework suggested by Uchida and Tsutsui (2005) is used to estimate bank competition in these countries. The study employs both seemingly unrelated regression (SUR) and three-stage least squares (3SLS) to estimate simultaneously the system of equations in our model. Generally we find a negative association between market concentration and bank competition across most of the countries in the study suggesting that banks in concentrated markets collude to generate higher profits. Monopolistic competition was the best description of competitive structure of banking across the majority of countries investigated by this study. The study fills the gap in the banking literature by investigating bank competition, concentration, and their relationship across emerging Asian economies over the 2008 global financial crisis. Moreover, several policy implications for banking industry are suggested.

This paper aims to investigate the return links and volatility transmission between five major equity markets of the Latin American region and the USA over the period 1993-2012.

The authors employ a multivariate vector autoregressive moving average – generalized autoregressive conditional heteroskedasticity (VAR-GARCH) methodology which allows for cross-market transmissions in both return and volatility. Moreover, we show how the obtained results can be used to design internationally diversified portfolios involving the Latin American assets and to analyze the effectiveness of hedging strategies.

The results point to the existence of substantial cross-market return and volatility spillovers and are thus crucial for international portfolio management in the Latin American region. However, the intensity of shock and volatility cross effects varies across the studied markets.

The optimal weights and hedging ratios that we compute from the observed return and volatility spillovers, suggest that adding the Latin American assets helps improve the risk-adjusted return of the internationally diversified portfolios as well as reduce their risk exposure. For policymakers and market authorities, an increase in the level of shock interactions and volatility transmission between the US and Latin American equity markets as well as among these Latin American markets implies that the stability of the financial system in one country can be deeply affected by the disturbances in another country.

The authors extend the previous works on Latin American emerging markets by examining the extent of shock and volatility transmission as well as portfolio design and management from the point of view of both the US (global) and Latin American investors.

The analysis considers the use of Benford’s Law as a forensic tool to audit the quality of accounting information reported by banks in emerging market countries. History suggests that lack of financial standards and reporting transparency can ultimately lead to bank failures in these nations. We use the Benford Distribution to analyze the first digits of bank financial statement entries and show the value of accounting standards in producing information of high quality. Benford’s Law maintains that the first digits of an unconstrained, large array of numbers might follow a lognormal pattern. It can be applied, for example, to financial statements issued by banks to infer their data integrity. To illustrate the importance of accounting standards and reporting transparency, the analysis utilizes Russian bank statement data from 2001 to 2011. The main finding is that accounting standards matter. After the Russian Central Bank required all banks to adopt International Financial Reporting Standards in 2004, the financial statement data largely conformed to Benford’s Law. While the Benford distribution can be used to infer the overall quality of bank financial statement data in emerging market countries, it is less effective in spotting troubled banks that commit reporting fraud. One possible reason is that the Benford distribution is scale invariant, and violation of Benford’s Law is a sufficient but not necessary condition for accounting irregularities.

This chapter aims to determine whether diversification benefits accrue from adding emerging market hedge funds (EMHFs) to an emerging market bond/equity portfolio, and subsequently whether the type of exposure hedge funds provide is justified by their fees. We use multivariate cointegration analysis to show that the advantages of adding hedge funds to balanced portfolios are limited for the three regions of Asia, Eastern Europe, and Latin America, as well as for the entire global emerging market universe. In summary, we find that emerging market hedge funds are generally redundant for diversifying long-only emerging market investment portfolios with long-term investment horizons. This result also holds when we extend our sample by the global financial crisis in 2008 and 2009 and allow for structural breaks according to the Gregory-Hansen (1996) test. Hence, even during the global financial crisis in 2008 and 2009, when risk diversification was most needed, long-term comovements between hedge funds and traditional assets is, with the exception of the Eastern European region, not disrupted. Because EMHF returns are heavily influenced by the emerging market equity and bond markets, we conclude that the “alpha fees” charged by EMHFs may not always be appropriate for the three main regions under consideration. This also holds, however, to a lesser extent, for a global diversification among hedge funds and traditional assets in emerging markets.

This paper aims to empirically reexamine the dynamic changes in emerging market volatility around stock market liberalization.

First, a bivariate GARCH‐M model which counts for partial market integration is developed for modeling stock market volatility in emerging market countries. Second, the Bai and Perron stability test in a linear framework and a pooled time‐series cross‐section model were employed to examine the empirical relationship between stock market liberalization and volatility.

Structural breaks detected in emerging market volatility series did not take place at the time of official liberalization dates, but they rather coincide with alternative events of liberalization process. The effects of official liberalization on return volatility are on average insignificant. The stock return volatility is however lowered when the participation of the US investors becomes effective and important on emerging markets, and when emerging markets increase in size.

The study assumes a static degree of market integration. Future research should extend our model by using a time‐varying measure of market integration.

Policymakers in frontier markets should open up local stock markets to attract foreign investments and to allow local firms to benefit from international risk sharing. Also, the gradual embankment of market‐liberalization is necessary to gain investors' confidence and to prevent the harmful effects of foreign capital flows.

The consideration of alternative events of liberalization process and the use of a powerful stability test to examine the time‐series properties of conditional volatilities.