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1 – 10 of 367The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some…
Abstract
Purpose
The paper provides a detailed historical account of Douglass C. North's early intellectual contributions and analytical developments in pursuing a Grand Theory for why some countries are rich and others poor.
Design/methodology/approach
The author approaches the discussion using a theoretical and historical reconstruction based on published and unpublished materials.
Findings
The systematic, continuous and profound attempt to answer the Smithian social coordination problem shaped North's journey from being a young serious Marxist to becoming one of the founders of New Institutional Economics. In the process, he was converted in the early 1950s into a rigid neoclassical economist, being one of the leaders in promoting New Economic History. The success of the cliometric revolution exposed the frailties of the movement itself, namely, the limitations of neoclassical economic theory to explain economic growth and social change. Incorporating transaction costs, the institutional framework in which property rights and contracts are measured, defined and enforced assumes a prominent role in explaining economic performance.
Originality/value
In the early 1970s, North adopted a naive theory of institutions and property rights still grounded in neoclassical assumptions. Institutional and organizational analysis is modeled as a social maximizing efficient equilibrium outcome. However, the increasing tension between the neoclassical theoretical apparatus and its failure to account for contrasting political and institutional structures, diverging economic paths and social change propelled the modification of its assumptions and progressive conceptual innovation. In the later 1970s and early 1980s, North abandoned the efficiency view and gradually became more critical of the objective rationality postulate. In this intellectual movement, North's avant-garde research program contributed significantly to the creation of New Institutional Economics.
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Nicola Castellano, Roberto Del Gobbo and Lorenzo Leto
The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on…
Abstract
Purpose
The concept of productivity is central to performance management and decision-making, although it is complex and multifaceted. This paper aims to describe a methodology based on the use of Big Data in a cluster analysis combined with a data envelopment analysis (DEA) that provides accurate and reliable productivity measures in a large network of retailers.
Design/methodology/approach
The methodology is described using a case study of a leading kitchen furniture producer. More specifically, Big Data is used in a two-step analysis prior to the DEA to automatically cluster a large number of retailers into groups that are homogeneous in terms of structural and environmental factors and assess a within-the-group level of productivity of the retailers.
Findings
The proposed methodology helps reduce the heterogeneity among the units analysed, which is a major concern in DEA applications. The data-driven factorial and clustering technique allows for maximum within-group homogeneity and between-group heterogeneity by reducing subjective bias and dimensionality, which is embedded with the use of Big Data.
Practical implications
The use of Big Data in clustering applied to productivity analysis can provide managers with data-driven information about the structural and socio-economic characteristics of retailers' catchment areas, which is important in establishing potential productivity performance and optimizing resource allocation. The improved productivity indexes enable the setting of targets that are coherent with retailers' potential, which increases motivation and commitment.
Originality/value
This article proposes an innovative technique to enhance the accuracy of productivity measures through the use of Big Data clustering and DEA. To the best of the authors’ knowledge, no attempts have been made to benefit from the use of Big Data in the literature on retail store productivity.
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This paper aims to promote the higher quality development of high-tech enterprises in China. While science and technology have greatly promoted human civilization, resources have…
Abstract
Purpose
This paper aims to promote the higher quality development of high-tech enterprises in China. While science and technology have greatly promoted human civilization, resources have been excessively consumed and the environment has been sharply polluted. Therefore, it is particularly important for current enterprises to make use of scientific and technological innovation to maximize the benefits of mankind, minimize the loss of nature, and promote the sustainable development of our country.
Design/methodology/approach
By using DEA-Banker-Charnes-Cooper (BCC) model and DEA-Malmquist model, this paper comprehensively examines the innovation efficiency of high-tech enterprises from both static and dynamic perspectives, and conducts a provincial comparative study with the panel data of ten representative provinces from 2011 to 2020.
Findings
The research findings are as follows: the rapid number increase of high-tech enterprises in most provinces (cities) is accompanied by an ineffective input–output efficiency; the quality of high-tech enterprises needs to comprehensively examine both input–output efficiency and total factor productivity; and there is not a positive correlation between element investment and innovation performance.
Research limitations/implications
Because the DEA model used in this paper assumes that the improvement direction of invalid units is to ensure that the input ratio of various production factors remains unchanged but sometimes the proportion of scientific and technological activities personnel and the total research and development investment is not constant. In the future, the nonradial DEA model can be considered for further research. Due to historical data statistics, more provinces, cities and longer panel data are difficult to obtain. The samples studied in this paper mainly refer to the provinces and cities that ranked first in the number of national high-tech enterprises in 2020. Limited by the number of samples, DEA analysis failed to select more input and output indicators. In the future, with the accumulation of statistical data, the existing efficiency analysis will be further optimized.
Originality/value
Aiming at the misunderstanding of emphasizing quantity and neglecting quality in the cultivation of high-tech enterprises, this paper comprehensively uses DEA-BCC model and DEA Malmquist index decomposition method to make a comprehensive comparative study on the development of high-tech enterprises in ten representative provinces (cities) from two aspects of static efficiency evaluation and dynamic efficiency evaluation.
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Is there a secret recipe for economic growth?
Abstract
Purpose
Is there a secret recipe for economic growth?
Design/methodology/approach
No, there is no recipe, but we can extrapolate some pieces of advice from Adam Smith.
Findings
An economy can leave behind its “dull” stagnant state and grow when its markets expand, when the productivity of its workers increases thanks to high compensations, which are seen as incentives to work harder and when lobbying and cronyism are kept at bay. Luck plays a role too, but these three ingredients are necessary, even if not sufficient, for an economy to grow and thus be “cheerful.”
Originality/value
These three aspects – expansion of market, liberal compensation of workers and lobbying – especially combined, have often been underestimated in Smith’s understanding of the possible sources of economic growth.
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Sampson Asiamah, Kingsely Opoku Appiah and Ebenezer Agyemang Badu
The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in…
Abstract
Purpose
The purpose of this paper is to examine whether board characteristics moderate the relationship between capital adequacy regulation and bank risk-taking of universal banks in Sub-Saharan Africa (SSA).
Design/methodology/approach
The paper uses 700 bank-year observations of universal banks in SSA between 2009 and 2019. The paper further uses the two-step generalized method of moments as the baseline estimator.
Findings
The paper finds that capital adequacy regulation is positively related to overall bank and liquidity risks. Nonetheless, capital adequacy regulation increases credit risk in the sampled banks. The paper further reports that board characteristics individually and significantly moderate the relationship between capital adequacy regulation and risk-taking.
Practical implications
The findings have implications for regulators of universal banks that board characteristics matter for capital adequacy regulation to impact risk-taking behavior.
Originality/value
The paper extends the existing literature on the effect of board characteristics on the capital adequacy regulations and risk-taking behavior nexus of universal banks.
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Qingmei Tan, Muhammad Haroon Rasheed and Muhammad Shahid Rasheed
Despite its devastating nature, the COVID-19 pandemic has also catalyzed a substantial surge in the adoption and integration of technological tools within economies, exerting a…
Abstract
Purpose
Despite its devastating nature, the COVID-19 pandemic has also catalyzed a substantial surge in the adoption and integration of technological tools within economies, exerting a profound influence on the dissemination of information among participants in stock markets. Consequently, this present study delves into the ramifications of post-pandemic dynamics on stock market behavior. It also examines the relationship between investors' sentiments, underlying behavioral drivers and their collective impact on global stock markets.
Design/methodology/approach
Drawing upon data spanning from 2012 to 2023 and encompassing major world indices classified by Morgan Stanley Capital International’s (MSCI) market and regional taxonomy, this study employs a threshold regression model. This model effectively distinguishes the thresholds within these influential factors. To evaluate the statistical significance of variances across these thresholds, a Wald coefficient analysis was applied.
Findings
The empirical results highlighted the substantive role that investors' sentiments and behavioral determinants play in shaping the predictability of returns on a global scale. However, their influence on developed economies and the continents of America appears comparatively lower compared with the Asia–Pacific markets. Similarly, the regions characterized by a more pronounced influence of behavioral factors seem to reduce their reliance on these factors in the post-pandemic landscape and vice versa. Interestingly, the post COVID-19 technological advancements also appear to exert a lesser impact on developed nations.
Originality/value
This study pioneers the investigation of these contextual dissimilarities, thereby charting new avenues for subsequent research studies. These insights shed valuable light on the contextualized nexus between technology, societal dynamics, behavioral biases and their collective impact on stock markets. Furthermore, the study's revelations offer a unique vantage point for addressing market inefficiencies by pinpointing the pivotal factors driving such behavioral patterns.
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David Korsah, Godfred Amewu and Kofi Osei Achampong
This study seeks to examine the relationship between macroeconomic shock indicators, namely geopolitical risk (GPR), global economic policy uncertainty (GEPU) and financial stress…
Abstract
Purpose
This study seeks to examine the relationship between macroeconomic shock indicators, namely geopolitical risk (GPR), global economic policy uncertainty (GEPU) and financial stress (FS), and returns as well as volatilities on seven carefully selected stock markets in Africa. Specifically, the study intends to unravel the co-movement and interdependence between the respective macroeconomic shock indicators and each of the stock markets under consideration across time and frequency.
Design/methodology/approach
This study employed wavelet coherence approach to examine the strength and stability of the relationships across different time scales and frequency components, thereby providing valuable insights into specific periods and frequency ranges where the relationships are particularly pronounced.
Findings
The study found that GEPU, Financial Stress (FS) and GPR failed to induce significant influence on African stock market returns in the short term (0–4 months band), but tend to intensify in the long-term band (after 6th month). On the contrary, stock market volatilities exhibited strong coherence and interdependence with GEPU, FSI and GPR in the short-term band.
Originality/value
This study happens to be the first of its kind to comprehensively consider how the aforementioned macro-economic shock indicators impact stock markets returns and volatilities over time and frequency. Further, none of the earlier studies has attempted to examine the relationship between macro-economic shocks, stock returns and volatilities in different crisis periods. This study is the first of its kind in to employ data spanning from May 2007 to April 2023, thereby covering notable crisis periods such as global financial crisis (GFC) and the COVID-19 pandemic episodes.
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Using the next-day and next-week returns of stocks in the Korean market, we examine the association of option volume ratios – i.e. the option-to-stock (O/S) ratio, which is the…
Abstract
Using the next-day and next-week returns of stocks in the Korean market, we examine the association of option volume ratios – i.e. the option-to-stock (O/S) ratio, which is the total volume of put options and call options scaled by total underlying equity volume, and the put-call (P/C) ratio, which is the put volume scaled by total put and call volume – with future returns. We find that O/S ratios are positively related to future returns, but P/C ratios have no significant association with returns. We calculate individual, institutional, and foreign investors’ option ratios to determine which ratios are significantly related to future returns and find that, for all investors, higher O/S ratios predict higher future returns. The predictability of P/C depends on the investors: institutional and individual investors’ P/C ratios are not related to returns, but foreign P/C predicts negative next-day returns. For net-buying O/S ratios, institutional net-buying put-to-stock ratios consistently predict negative future returns. Institutions’ buying and selling put ratios also predict returns. In short, institutional put-to-share ratios predict future returns when we use various option ratios, but individual option ratios do not.
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Songhee Kim, Jaeuk Khil and Yu Kyung Lee
This paper aims to investigate the impact of corporate dividend policy on the capital structure in the Korean stock market. To distinctly discern the voluntariness of changes in…
Abstract
This paper aims to investigate the impact of corporate dividend policy on the capital structure in the Korean stock market. To distinctly discern the voluntariness of changes in corporate dividend policy, we analyze companies that, following a substantial increase, do not reduce dividends for the subsequent two years or, after a significant decrease, do not raise dividends for the following two years. Our empirical findings indicate that companies that increase dividends experience a significant decrease in both book and market leverage, even after controlling for variables such as target leverage ratios. This result suggests that a large increase in dividends can effectively reduce information asymmetry, leading to a lower cost of equity. On the contrary, after a decrease in dividends, both book leverage and market leverage significantly increase, revealing a symmetric relationship between dividend policy and capital structure. In conclusion, large dividend increases in Korean companies not only reduce information asymmetry but also lower the cost of equity capital, resulting in observable changes in the leverage ratio.
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Chiara Bertolin and Elena Sesana
The overall objective of this study is envisaged to provide decision makers with actionable insights and access to multi-risk maps for the most in-danger stave churches (SCs…
Abstract
Purpose
The overall objective of this study is envisaged to provide decision makers with actionable insights and access to multi-risk maps for the most in-danger stave churches (SCs) among the existing 28 churches at high spatial resolution to better understand, reduce and mitigate single- and multi-risk. In addition, the present contribution aims to provide decision makers with some information to face the exacerbation of the risk caused by the expected climate change.
Design/methodology/approach
Material and data collection started with the consultation of the available literature related to: (1) SCs' conservation status, (2) available methodologies suitable in multi-hazard approach and (3) vulnerability leading indicators to consider when dealing with the impact of natural hazards specifically on immovable cultural heritage.
Findings
The paper contributes to a better understanding of place-based vulnerability with local mapping dimension also considering future threats posed by climate change. The results highlight the danger at which the SCs of Røldal, in case of floods, and of Ringebu, Torpo and Øye, in case of landslide, may face and stress the urgency of increasing awareness and preparedness on these potential hazards.
Originality/value
The contribution for the first time aims to homogeneously collect and report all together existing spread information on architectural features, conservation status and geographical attributes for the whole group of SCs by accompanying this information with as much as possible complete 2D sections collection from existing drawings and novel 3D drawn sketches created for this contribution. Then the paper contributes to a better understanding of place-based vulnerability with local mapping dimension also considering future threats posed by climate change. Then it highlights the danger of floods and landslides at which the 28 SCs are subjected. Finally it reports how these risks will change under the ongoing impact of climate change.
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