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The purpose of this paper is to consider the heterogeneous relationship among financial development, foreign direct investment (FDI) and economic growth, examining the possible directions of causality among them in both the short and long runs.

A sample of the G-20 countries over the period 1970–2016 is utilized. A vector error-correction model is used to consider the possible directions of causality among financial development, FDI and economic growth.

Results suggest a cointegrating relationship among the three series. Although short-run links among the variables are mostly non-uniform, both financial development and FDI matter in the determination of long-run economic growth.

Attention must be paid to policies that promote financial development. This, in turn, calls for fostering incentives to guarantee continued support to liberalize the economy and promoting capital openness. Additionally, financial infrastructure should be improved to improve financial innovation. The establishment of a well-developed financial market, including well-functioning banks and other financial institutions, can facilitate further investment and an easier means of raising capital to support the activities of FDI. Economic growth can ultimately be elevated through both financial development and FDI.

The study considers a sample of the G-20 countries, which have received relatively little attention in the existing literature. In addition, the study concurrently analyses the trivariate causal relationship among financial development, FDI and economic growth, a topic on which there has been a dearth of research.

The purpose of this paper is to shed light on the age-old trade-and-economic-growth controversy. The authors do so by utilizing the data relating to the G-20 countries between 1988 and 2013.

The authors seek to establish the formal statistical links between openness to trade and economic growth in the context of interactions with financial depth, gross capital formation, and foreign direct investment. The authors use a panel vector autoregressive model to obtain the estimates. The authors check for the robustness of the results.

The authors find that all the variables are cointegrated. That is, there is a long-run equilibrium relationship between the variables. Moreover, trade openness, financial depth, gross capital formation, and foreign direct investment are all causative factors for the economic growth of the G-20 countries in the long run. At the same time, the short-run results demonstrate that there is a myriad of causal links between these variables.

The decision makers in the G-20 countries wishing to encourage economic growth in the long run should pay close attention to trade openness, financial depth, gross capital formation, and foreign direct investment inflows to their countries.

The authors study an important group of countries over a long span of time, using advanced panel data techniques. The results demonstrate that future studies on economic growth that do not simultaneously consider trade openness, financial depth, foreign direct investment, and gross capital formation will offer biased or misguided results.

This study investigates whether the disclosure of derivatives is value relevant in emerging markets and evaluates the effects of the 2008/2009 global financial crisis on the value relevance of derivative disclosures.

Panel regression models using sub-samples and a crisis interaction term were applied to a sample of the 200 largest non-financial firms by market capitalization listed on the Johannesburg Stock Exchange (JSE) from 2005 to 2017 to assess the consequences of the financial crisis.

The results suggest that the disclosure of derivatives is value relevant in the hitherto understudied context of emerging markets. The 2008/2009 financial crisis had a significant impact on derivatives use and the value relevance of derivatives disclosure by JSE-listed companies.

Companies should reconsider both how they employ derivatives as part of their risk management practices and how they communicate derivatives use to stakeholders in the financial statements. The findings facilitate a comparative analysis across various market contexts by researchers and assist investors in better decision-making. The findings can influence regulatory practices and can help standard setters to review disclosure requirements.

The benefits of corporate hedging were studied from an emerging market perspective, using an original dataset and approach to investigate the effects of international financial volatility on emerging markets. The authors tested whether companies are valued differently, based on their disclosure of the use of derivatives in the financial statements, and the effect of the financial crisis on the value relevance derivatives disclosures.

The emerging roles of management accountants as either hybrid accountants or business partners are a cause for much debate in the literature. Of the two characteristics related to these roles, namely information provider and interpreter, and decision-maker, the latter remains under-researched. The present study adds to the decision-maker debate by examining business decision-making involvement. Survey responses from a diverse sample of mostly Institute of Management Accountants (USA) and Chartered Institute of Management Accountants (UK) members were obtained and analysed to examine their current business decision-making involvement, including an investigation guided by role theory into possible contextual factors associated with different levels of decision-making involvement. The business decision-making involvement of management accountants varies significantly, and is less pervasive than widely believed. A significant proportion (53%) of management accountants in traditional management accounting positions report no, or limited, business decision-making involvement. Management accountants employed in smaller firms, and middle-aged professionals, are more likely to be involved in making business decisions. The inverted u-shaped association between age and decision-making involvement identified in this study, requires further investigation. The large cross-sectional analysis of the present study extends prior research which was mostly narrowly focussed due to its case study nature. The varying levels of decision-making involvement, and contextual variables associated with higher level involvement, shed some light on the intricacies of the role of management accountants. Professional associations and educators should note that the roles of today’s management accountants vary greatly between information provider and decision-maker.

Interchangeable parts were a critical development in the advancement of industry and manufacturing. This paper traces its development, the factors that contributed to it, and answers the question of why did this innovation occur at the Springfield Armory.

This is an illustrative case study.

The fortunate combination of location, key people, government policy, and arms demand combined to enable the development of interchangeable parts at the Springfield Armory. Led by its Superintendent, Roswell Lee, Springfield became the epicenter for the development of this concept as skilled gunmakers captured arms making knowledge unfettered by patent protection. Lee promoted this free interchange of ideas through sharing designs and equipment, his hiring practices, and his willingness to experiment with new tools and technologies. This created a critical mass of factors that led to this important innovation occurring at the Springfield Armory.

The critical drivers of innovative activity seen at Springfield merit further investigation and research, individually and collectively to see if these findings can be used to inform policies that promote innovation.

This case study identifies factors that contributed to the development of interchangeable parts at a particular location at a particular point in time. The value of this is to identity the important interplay of factors that can spur the innovative process and lead to important technological innovation.

This historical example of the creation of the arms industry in the Connecticut River Valley in the 1800s provides new insights into the value of government venture capital (GVC) and government demand in creating a new industry. Since current theoretical explanations of the best uses of governmental venture capital are still under development, there is considerable need for further theory development to explain and predict the creation of an industry and especially those industries where failures in private capital supply necessitates governmental involvement in new firm creation. The purpose of this paper is to provide an in depth historical review of how the arms industry evolved spurred by GVC and government created demand.

This study uses abductive inference as the best way to build and test emerging theories and advancing theoretical explanations of the best uses of GVC and governmental demand to achieve socially required outcomes.

By observing this specific historical example in detail, the authors add to the understanding of value creation caused by governmental venture capital funding of existing theory. A major contribution of this paper is to advance theory based on detailed observation.

The relatively limited research literature and theory development on governmental venture capital funding and the critical success factors in startups are enriched by this abductive investigation of the creation of the historically important arms industry and its spillover into creating the specialized machine industry.

The purpose of this paper is to examine the nature of causal relations between banking sector maturity, stock market maturity, and four aspects of performance and operation of the economy: economic growth, inflation, openness in trade, and the degree of government involvement in the economy.

The authors look for possible links between the variables by conducting panel cointegration and causality tests, using a large sample of Asian countries over the period 1960-2011. Novel panel data estimation methods allow for robust estimates, using both variation between countries and variation over time.

The study identifies interesting causal links among the variables deriving uniquely from our innovations. In particular, The paper finds that for all regions considered, banking sector maturity and stock market maturity are causally linked, sometimes in both directions. Furthermore, stock market maturity may lead to economic growth, both directly and indirectly through indicators such as inflation and trade openness. The findings also support the notion that economic growth affects the maturity of the stock market in most regions.

The results lend support to the notion that a mature financial sector is a key contributor to generating economic growth. Furthermore, economic growth itself has the potential to bring about maturity in the financial sector.

The paper uses sophisticated principal-component analysis, panel cointegration, and Granger causality tests, methods not used in this literature before. The method was applied to recent data pertaining to 35 Asian countries – a group of countries that has previously not been adopted in this literature.

The purpose of this paper is to illustrate, through the example of the Springfield Armory and its role in the development of interchangeable parts, the critical role of government in establishing a cluster of organizations that evolved into an innovation ecosystem primarily located in the Connecticut River Valley in the 1800s. Using the Springfield Armory example, we use the related but largely unjoined concepts of ecosystem and networks to show that these organizational forms are effective in driving innovation.

The design uses an in-depth analysis of the role of the Springfield Armory to explicate the joining of network and ecosystem theory as an early example of the importance of governmental funding and support for innovation.

The development of interchangeable parts in the American arms industry in the 19th century transformed manufacturing worldwide. At the heart of this transformation was the network of arms makers that developed in the Connecticut River Valley as a direct result of US Government investment and support. This network of arms makers evolved into an ecosystem of mutually reinforcing relationships as machine tool manufacturers benefited from an environment of free-flowing intellectual property, information and growing governmental demand for arms. The Armory illustrates the government’s role in initiating and sustaining clusters of innovation that otherwise might not have developed as quickly.

Much of the research on the role of government in creating innovation ecosystems and organizational networks is based on modern organizations. This use of the Springfield Armory in the early 1800s broadens the knowledge on how innovation ecosystems in conjunction with networked organizations can be created by governments serving the public good.

Aarhus Kommunes Biblioteker (Teknisk Bibliotek), Ingerslevs Plads 7, Aarhus, Denmark. Representative: V. NEDERGAARD PEDERSEN (Librarian).