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1 – 10 of 13Bing Li, Zhihui Shi and Wei Guo
As foreign direct investment (FDI) plays an important role in economic globalization. This paper examines the structural features of the global FDI network based on FDI flows data…
Abstract
Purpose
As foreign direct investment (FDI) plays an important role in economic globalization. This paper examines the structural features of the global FDI network based on FDI flows data and changes in the position of countries within the network.
Design/methodology/approach
In order to study the structural characteristics of the global FDI network and the status and changes of countries in the global FDI network, the authors build the investment network and apply the QAP (Quadratic Assignment Procedure) analysis to examine the evolutionary characteristics of the network and its influencing factors.
Findings
The global FDI network becomes more interconnected and has a clear “core-periphery” structure. The network connections and volumes have increased dramatically and most countries spread their assets across multiple countries, while only a handful of countries have concentrated investments. The topological structure of the global FDI network has changed noticeably, although this process has been slow and stable and countries in the core position have remained largely intact. The authors find that trade relations between countries, geographic distance and differences in economic size, income levels and institutional environments all have a significant impact on the global FDI network.
Research limitations/implications
Although we find some valuable results, some aspects need further investigation. For example, how a country uses the investment network to boost its economy and how the different industries in the investment network change over time. It is important to get the industry-level details to understand the impact of the global investment network from a government's perspective.
Practical implications
FDI affects the distribution of international capital and contributes to the development of the global economy. Therefore, it is important to study the characteristics of the global FDI network and its development patterns. With more understanding about the network as well as its evolutionary pattern, the government can possibly carry out some policies to promote direct investments as well as economic development.
Social implications
All countries should actively engage in international direct investments and strengthen their economic ties. At the same time, they can put more emphasis on inward or outward FDI based on their own level of economic development to better establish the circulation channel for domestic and international capital.
Originality/value
This paper examines foreign direct investments through the lens of a global network. In contrast to traditional bilateral studies, this paper focuses on the network structure and evolution, reflecting the dynamics of the entire direct investment system as well as the changing positions of participating countries.
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The studies that explore the impacts of national intellectual capital on informal economy are scant. Moreover, the effect of an external factor such as institutional quality that…
Abstract
Purpose
The studies that explore the impacts of national intellectual capital on informal economy are scant. Moreover, the effect of an external factor such as institutional quality that moderates this relationship has largely been neglected in previous studies. Institutions are considered important pillars to accumulate national intellectual capital and reduce shadow economy. As such, this paper aims to investigate how institutional quality moderates the effects of national intellectual capital on informal economy in 17 Asian countries from 2000 to 2018.
Design/methodology/approach
This paper uses the generalized method of moments techniques, which allow cross-sectional dependence and slope homogeneity in panel data, to examine the moderating role of institutional quality on the relationship between national intellectual capital and informal economy. Various tests are conducted to ensure the robustness of the findings.
Findings
Empirical findings from this paper indicate that an increase in national intellectual capital and institutional quality declines the informal economy. Interestingly, better institutional quality aggravates the negative effects of national intellectual capital on reducing the size of informal economy. The author also finds that enhancing international trade and economic growth results in a decrease in the informal economy in Asian countries.
Practical implications
Empirical findings offer policymakers an indication of the relationships between national intellectual capital, institutional quality and informal economy, pointing out that national intellectual capital and institutional quality should be strengthened to allow Asian countries to limit the informal economy.
Originality/value
This study provides a conceptual model through which the moderating role of institutional quality on the national intellectual capital–informal economy nexus can be recognized. This approach has thus far not been investigated in the existing literature. To the best of the author’s knowledge, this study makes an original contribution to the empirical of national intellectual capital and informal economy nexus and produces new insights into the fields of the moderating effects of institutional quality on this nexus.
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Yutaro Inoue and Shinsaku Nakajima
This study aims to investigate the relationship between consumer awareness of Zespri International Limited (Zespri™) and its sales promotion in Japan and the recent expansion of…
Abstract
Purpose
This study aims to investigate the relationship between consumer awareness of Zespri International Limited (Zespri™) and its sales promotion in Japan and the recent expansion of New Zealand (NZ) kiwifruit imported into Japan.
Design/methodology/approach
Tweets mentioning Zespri™ were utilised as a proxy of such awareness. They were first summarised using two text-mining techniques: tf-idf scoring and a co-occurrence network graph. Afterwards, the authors estimated a tri-variate vector autoregression (VAR) model consisting of the net imports of NZ kiwifruit in Japan, unit import price and number of tweets. Additionally, the occurrence frequency of tweets with “Kiwi Brothers”, promotional characters for Zespri™’s sales, was added to the model, and a tetra-variate VAR model was estimated. Finally, Granger-causality tests, an estimation of the impulse response function and forecast error variance decomposition was conducted.
Findings
All these variables were found to Granger-cause each other. Furthermore, a shock in the document frequency of “Kiwi Brothers” significantly affected Japan’s kiwifruit imports from NZ, explaining approximately 20% of future imports. Zespri™’s distinctive sales promotion was, thus, found to contribute in part to the recent increase in NZ’s kiwifruit export to Japan.
Originality/value
This paper is the first to apply text-regression methodology to food consumption research; it contributes to food consumption research by proposing a practical way to combine tweets with outcome variables using a time-series analysis.
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Mingming Zhao, Fuxiang Wu and Xia Xu
Complex technology not only provides potential economic benefits but also increases the difficulty of application. Whether and how upstream technological complexity affects…
Abstract
Purpose
Complex technology not only provides potential economic benefits but also increases the difficulty of application. Whether and how upstream technological complexity affects downstream manufacturers' innovation through vertical separation structure is worth discussing, but it has not been effectively discussed.
Design/methodology/approach
Through theoretical analysis and empirical testing, this article discusses the cost effect and market competition effect caused by upstream technological complexity on downstream manufacturers and further elucidates the impact of upstream technological complexity on downstream manufacturers' innovation.
Findings
Research has found that the impact of upstream technological complexity on the downstream manufacturers' innovation depends on the cost effect and market competition effect. The cost effect caused by the complexity of upstream technology inhibits the innovation of downstream manufacturers. In contrast, the market competition effect promotes the innovation of downstream manufacturers. There are differences in the cost effect and market competition effect of upstream technological complexity on different types of downstream manufacturers, so there is also significant heterogeneity in the impact of upstream technological complexity on innovation of different types of downstream manufacturers.
Originality/value
The conclusions of this article improve the understanding of the relationship between upstream technological complexity and downstream innovation and provide helpful implications for industrial chain innovation.
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The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of…
Abstract
Purpose
The main goal of this paper is to examine the evolution of Latin American productive integration in terms of the regional value added incorporated in intra-regional exports of Argentina, Brazil, Chile, Colombia, Mexico and Peru. In addition, the study traces the trade and productive integration trajectories for each of these countries from 1995 to 2015.
Design/methodology/approach
Based on the use of OECD’s global ICIO input-output tables, this paper applies the methodological framework by Wang et al. (2018) for the analysis of trade flows at the bilateral level, which allows breaking down the value of gross exports of each sector-country, depending on the origin of the value added contained in exports, as well as their use.
Findings
The estimates show very low shares of value added from regional partners in the intra-regional exports of the countries studied. Conversely, the weight of the value added incorporated in these exports by countries outside the region has increased in tandem with China’s expanding involvement in Latin America. This development, along with the downward trend in domestic value added incorporated in exports, indicates a lack of a regional integration process of any depth.
Originality/value
This article addresses an economic problem of conventional importance from a global value chain perspective using a novel methodology based on the use of global input–output tables.
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Manpreet K. Arora and Sukhpreet Kaur
Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand…
Abstract
Purpose
Employee Stock Options [ESOs] have been used widely as a component of employees' compensation. To maximise the incentive effect of these options it is very important to understand the exercise decision of the employees. This is an important financial decision that is dependent on both rational and psychological factors. This paper aims to study the mediating role of Herding Bias on Personality Traits and the employees' decision to exercise ESOs.
Design/methodology/approach
The data were collected through a self-structured questionnaire from 210 employees of Banks and NBFCs [Non-Banking Financial Companies] who have received and exercised the ESOs. SPSS MACRO version 25 was used to understand the mediational effect of Herding Bias on Personality Traits and Employees' decision to exercise their ESOs.
Findings
The results showed that Personality Traits affect the employees' decision to exercise their ESOs. The study also shows a partial negative mediating effect of Herding Bias on Personality Traits and employees' decision to exercise ESOs.
Originality/value
Limited study has been conducted on how the employees make their decision to exercise ESOs. Although extant studies have touched upon the importance of including behavioural biases in ascertaining the exercise decision of the employees, the predictors of the behavioural biases have not been studied under this context. To the best of the author's knowledge, this study is the first in itself to study the inter-linkage between Personality Traits, Herding Bias and employees' decision to exercise ESOs.
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Existing studies suggest that negative impacts emanating from corporate fraud revelations may diffuse to other firms through lower trust and lower market participation. Extending…
Abstract
Purpose
Existing studies suggest that negative impacts emanating from corporate fraud revelations may diffuse to other firms through lower trust and lower market participation. Extending this literature stream, the authors examine whether corporate fraud revelations are associated with higher costs of raising capital through initial public offerings (IPOs) for industry peers.
Design/methodology/approach
The authors employ several analysis techniques including univariate analysis, multivariate regressions, propensity score matching methodology, and probit estimation. The sample consists of 3,015 US IPO firms for the 1996–2021 period.
Findings
By adopting US private securities class action lawsuits as a proxy for the presence of corporate fraud, the authors find that fraud revelations are associated with higher IPO underpricing, higher post-IPO stock return volatility and increased likelihood of withdrawal from the offering for industry peers. The findings are robust to alternative industry definitions and litigation proxies and to the inclusion of a battery of controls, including industry, state and year fixed effects.
Originality/value
This study presents private firms with an additional industry litigation factor to consider when assessing the marginal costs of going public.
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Bilal, Ali Meftah Gerged, Hafiz Muhammad Arslan, Ali Abbas, Songsheng Chen and Shahid Manzoor
The study aims to identify and discuss influential aspects of corporate environmental disclosure (CED) literature, including key streams, themes, authors, keywords, journals…
Abstract
Purpose
The study aims to identify and discuss influential aspects of corporate environmental disclosure (CED) literature, including key streams, themes, authors, keywords, journals, affiliations and countries. This review also constructs agendas for future CED research.
Design/methodology/approach
Using a bibliometric review approach, the authors reviewed 560 articles on CED from 215 journals published between 1982 and 2020.
Findings
The authors' insights are three-fold. First, the authors identified three core streams of CED research: “legitimization of environmental hazards via environmental disclosures,” “the role of environmental accounting in achieving corporate environmental sustainability” and “integrating environmental social and governance (ESG) reporting into the global reporting initiatives (GRI) guidelines”. Second, the authors also deployed a thematic map that classifies CED research into four themes: niche themes (e.g. institutional theory and environmental management system), motor themes (e.g. stakeholder engagement), emerging/declining themes (e.g. legitimacy theory) and basic/transversal themes (e.g. voluntary CED, environmental reporting and corporate social responsibility). Third, the authors highlighted important CED authors, keywords, journals, articles, affiliations and countries.
Research limitations/implications
This study assists researchers, journal editors and consultants in the corporate sector to comprehensively understand various dimensions of CED research and practices and suggests potential emerging research areas. Although this paper appears to have been thoroughly conducted, using authors' keywords to identify themes was a key limitation. Thus, the authors call upon using a more comprehensive data mining technique that uses keywords in abstracts, titles and the whole body of papers and then identifies inclusive trends in CED literature.
Originality/value
The authors contribute to the extant accounting literature by investigating the organizational-level CED, both mandatory and voluntary, using a systematic and bibliometric literature review model to summarize the key research streams, themes, authors, journals, affiliations and countries. By doing so, the authors construct a future research agenda for CED literature.
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Adam Arian and John Stephen Sands
This study aims to evaluate the adequacy of climate risk disclosure by providing empirical evidence on whether corporate disclosure meets rising stakeholders’ demand for risk…
Abstract
Purpose
This study aims to evaluate the adequacy of climate risk disclosure by providing empirical evidence on whether corporate disclosure meets rising stakeholders’ demand for risk disclosure concerning climate change.
Design/methodology/approach
Drawing on a triangulated approach for collecting data from multiple sources in a longitudinal study, we perform a panel regression analysis on a sample of multinational firms between 2007 and 2021. Inspired by the Global Reporting Initiative (GRI) principles, our innovative and inclusive model of measuring firm-level climate risks underscores the urgent need to redefine materiality from a broader value creation (rather than only financial) perspective, including the impact on sustainable development.
Findings
The findings of this study provide evidence of limited corporate climate risk disclosure, indicating that organisations have yet to accept the reality of climate-related risks. An additional finding supports the existence of a nexus between higher corporate environmental disclosure and higher corporate resilience to material financial and environmental risks, rather than pervasive sustainability risk disclosure.
Practical implications
We argue that a mechanical process for climate-related risk disclosure can limit related disclosure variability, risk reporting priority selection, thereby broadening the short-term perspective on financial materiality assessment for disclosure.
Social implications
This study extends recent literature on the adequacy of corporate risk disclosure, highlighting the importance of disclosing material sustainability risks from the perspectives of different stakeholder groups for long-term success. Corporate management should place climate-related risks at the centre of their disclosure strategies. We argue that reducing the systematic underestimation of climate-related risks and variations in their disclosure practices may require regulations that enhance corporate perceptions and responses to these risks.
Originality/value
This study emphasises the importance of reconceptualising materiality from a multidimensional value creation standpoint, encapsulating financial and sustainable development considerations. This novel model of assessing firm-level climate risk, based on the GRI principles, underscores the necessity of developing a more comprehensive approach to evaluating materiality.
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Mohammad Imtiaz Hossain, Boon Heng Teh, Mosab I. Tabash, Mohammad Nurul Alam and Tze San Ong
Manufacturing small and medium-sized enterprises (SMEs) are heading towards smart manufacturing despite growing challenges caused by globalisation and rapid technological…
Abstract
Purpose
Manufacturing small and medium-sized enterprises (SMEs) are heading towards smart manufacturing despite growing challenges caused by globalisation and rapid technological advancement. These SMEs, particularly textile SMEs of Bangladesh, also face challenges in implementing sustainability and organisational ambidexterity (OA) due to resource constraints and limitations of conventional leadership styles. Adopting paradoxical leadership (PL) and entrepreneurial bricolage (EB) is important to overcome the challenges. However, these dynamics are less explored in academia, especially in the Bangladeshi textile SMEs context. Hence, the purpose of this study is to investigate the influence of the adoption of smart technologies (ASTs), PL and OA, EB on sustainable performance (SP) of textile SMEs in Bangladesh.
Design/methodology/approach
A cross-sectional and primary quantitative survey was conducted. Data from 361 textile SMEs were collected using a structured self-administrated questionnaire and analysed by partial least square structural equation modelling (PLS-SEM).
Findings
The statistical outcome confirms that ASTs and PL significantly influence SP and OA. OA plays a significant mediating role for PL and is insignificant for ASTs, and EB significantly moderates among ASTs, PL and SP.
Research limitations/implications
As this study is cross-sectional and focussed on a single city (Dhaka, Bangladesh), conducting longitudinal studies and considering other parts of the country can provide exciting findings.
Practical implications
This research provides valuable insights for policymakers, management and textile SMEs in developing and developed countries. By adopting unique and innovative OA, PL and EB approaches, manufacturing SMEs, especially textile companies, can be more sustainable.
Originality/value
This study has a novel, pioneering contribution, as it empirically validates the role of multiple constructs such as AST, PL, OA and EB towards SP in the context of textile SMEs in a developing country like Bangladesh.
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