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Open Access
Article
Publication date: 13 February 2024

Leonardo Nery Dos Santos, Hsia Hua Sheng and Adriana Bruscato Bortoluzzo

Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose…

Abstract

Purpose

Foreign subsidiaries incur substantial institutional conformity costs because they have to respond to host-country institutional pressures (Slangen & Hennart, 2008). The purpose of this paper is to study this type of cost from institutional and regulatory perspectives. The authors argue that these costs decrease when the host country adopts concepts of international regulations that multinationals may be familiar with due to their own home country regulation experience. This prior regulatory experience gives foreign subsidiaries an advantage of foreignness (AoF), which can offset their liability of foreignness (LoF).

Design/methodology/approach

This study compared the returns on assets of 35 domestic firms with those of foreign subsidiaries in the Brazilian energy industry between 2002 and 2021, using regression dynamic panel data.

Findings

The existence of a relationship between the international regulatory norm and the Brazilian regulator has transformed the LoF into an advantage of foreignness to compete with local energy firms. The results also suggest that the better the regulatory quality of the subsidiary’s country of origin, the better its performance in Brazil, as it can reduce compliance costs. Finally, the greater the psychic distance between Brazil and the foreign subsidiary’s home country, the worse its performance.

Research limitations/implications

The research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017).

Practical implications

This research suggests that one of the keys to competitiveness in host countries is local regulatory ties. Prior international regulatory experience gives foreign subsidiaries an asset of foreignness (AoF). This result complements the current institutional and regulatory foreignness studies on emerging economies (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022) and the institutional asymmetry between home and host country (Mallon & Fainshmidt, 2017). The practical implication is that the relationship between conformity costs, capital budget calculation and strategic planning for internationalization will be related to the governance quality of the home country of multinationals. The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.

Social implications

The social implication is that a country interested in attracting more direct foreign investment to areas that need foreign technology transfer and resources may consider adopting international regulatory standards.

Originality/value

This research discuss firm and local regulator tie is one of core competitiveness in host countries (Yang and Meyer, 2020). This study also complements the current institutional and regulatory foreignness studies in emerging economy (Cuervo-Cazurra & Genc, 2008; Mallon et al., 2022). Second, prior regulatory experience of multinational enterprise in similar environment can affect its foreign affiliate performance (Perkins, 2014). Third, this study confirms current literature that argues that knowledge and ability to operate in an institutionalized country can be transferred from parent to affiliate. In the end, this study investigates whether AoF persists when host governments improve the governance of their industries.

Details

RAUSP Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2531-0488

Keywords

Book part
Publication date: 4 April 2005

Richard Saito, Hsia Hua Sheng, Senichiro Koshio and Marcos Galileu de Lorena Dutra

Corporate bonds have been a major source of medium and long-term financing in Brazil. We analyze how corporate bond covenants have been used to mitigate agency costs between…

Abstract

Corporate bonds have been a major source of medium and long-term financing in Brazil. We analyze how corporate bond covenants have been used to mitigate agency costs between shareholders and bondholders. Our data includes 119 corporate bond indentures issued in Brazil from 1998 to 2001. This paper analyzes whether public investors have demanded stricter terms in corporate bond indentures. When comparing to previous studies of Anderson (1999) and of Filgueira and Leal (2001), we found empirical evidence that: (a) more bond issues with no indexed inflation features, but more floating rate interest features to match market needs; (b) no major changes for contingent maturity features; (c) loose covenants with respect to dividend and financing actions; and (d) tighter covenants regarding change in control and/or ownership and negative pledge. There is empirical evidence that the role of sponsor may partially mitigate risks borne by bondholders.

Details

Latin American Financial Markets: Developments in Financial Innovations
Type: Book
ISBN: 978-1-84950-315-0

Book part
Publication date: 4 April 2005

Abstract

Details

Latin American Financial Markets: Developments in Financial Innovations
Type: Book
ISBN: 978-1-84950-315-0

Book part
Publication date: 4 April 2005

Abstract

Details

Latin American Financial Markets: Developments in Financial Innovations
Type: Book
ISBN: 978-1-84950-315-0

Book part
Publication date: 4 April 2005

Harvey Arbeláez and Reid William Click

This book is an attempt to reflect on what we have learned from financial policies and financial crises in Latin America. The 21 chapters in this volume capture the developments…

Abstract

This book is an attempt to reflect on what we have learned from financial policies and financial crises in Latin America. The 21 chapters in this volume capture the developments in various ways. They cover theoretical contributions, regional empirical studies, and specific inquiries on Argentina, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Peru and Venezuela. The breadth of methodologies implemented suggests that researchers are looking at Latin American financial markets through a variety of lenses. The chapters are divided into 7 parts, including, in Part I, an initial overview. Part II examines the foreign exchange markets in Latin America and their interactions with other markets. Part III discusses dollarization issues in the region. Part IV then takes up the issue of banking in Latin America. Equity and bond markets are considered in Parts V and VI, respectively. Lastly, Part VII considers pension systems in Latin America. Taken as a whole, the 21 chapters seize the excitement of studying Latin America and provide lessons that are applicable around the world.

Details

Latin American Financial Markets: Developments in Financial Innovations
Type: Book
ISBN: 978-1-84950-315-0

Article
Publication date: 1 February 1960

C.G. ALLEN

The Communist revolution in China has led to the appearance in this country of increasing numbers of Chinese books in Russian translation. The Chinese names in Cyrillic…

Abstract

The Communist revolution in China has led to the appearance in this country of increasing numbers of Chinese books in Russian translation. The Chinese names in Cyrillic transcription have presented many librarians and students with a new problem, that of identifying the Cyrillic form of a name with the customary Wade‐Giles transcription. The average cataloguer, the first to meet the problem, has two obvious lines of action, and neither is satisfactory. He can save up the names until he has a chance to consult an expert in Chinese. Apart altogether from the delay, the expert, confronted with a few isolated names, might simply reply that he could do nothing without the Chinese characters, and it is only rarely that Soviet books supply them. Alternatively, he can transliterate the Cyrillic letters according to the system in use in his library and leave the matter there for fear of making bad worse. As long as the writers are not well known, he may feel only faintly uneasy; but the appearance of Chzhou Ėn‐lai (or Čžou En‐laj) upsets his equanimity. Obviously this must be entered under Chou; and we must have Mao Tse‐tung and not Mao Tsze‐dun, Ch'en Po‐ta and not Chėn' Bo‐da. But what happens when we have another . . . We can hardly write Ch'en unless we know how to represent the remaining elements in the name; yet we are loth to write Ch'en in one name and Chėn' in another.

Details

Journal of Documentation, vol. 16 no. 2
Type: Research Article
ISSN: 0022-0418

Article
Publication date: 27 December 2021

Janet Chang, Sean Hsin-Hung Lin and Li-Sheng Wu

Historically, hot springs have been regarded as hedonic and foodie destinations, yet the antecedents that affect tourists' intentions for local cuisine in hot springs remain…

Abstract

Purpose

Historically, hot springs have been regarded as hedonic and foodie destinations, yet the antecedents that affect tourists' intentions for local cuisine in hot springs remain unexplored. The present study aims to address this knowledge gap by considering the role of nostalgia and hedonic values in tourist food consumption.

Design/methodology/approach

Data were collected from 315 domestic tourists by intercept surveys conducted in the Beitou Hot Spring, Taiwan. Covariance-based structural equation modeling (SEM) and bootstrapping were used to test the hypotheses as well as mediating effects.

Findings

Nostalgia positively influences hedonic values, which affect tourists' intentions for local food consumption. Unexpectedly, nostalgia does not directly influence tourists' preferences due to complete mediation through hedonic values.

Research limitations/implications

Given a growing number of young consumers visiting hot springs, hedonic experience is essential and more effective for pulling visitors and stimulating local food consumption than nostalgia vibes are. Cross-cultural samples and qualitative research are suggested for future studies.

Originality/value

The study demonstrates different levels of nostalgia in different ages. It highlights the mediating role of hedonic values between nostalgia and tourists' intentions for local cuisine in the hot spring destinations, which has been overlooked in previous studies. Originality is also established by simultaneously investigating hedonic values and behavioral intentions within the context of food tourism.

Details

British Food Journal, vol. 124 no. 2
Type: Research Article
ISSN: 0007-070X

Keywords

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