Search results
1 – 10 of 40Salvador Cruz-Rambaud and Ana Maria Sanchez-Perez
The purpose of the paper is to introduce a novel methodology to identify and quantify the difference of financial risks exhibited by listed and unlisted companies in their debt…
Abstract
Purpose
The purpose of the paper is to introduce a novel methodology to identify and quantify the difference of financial risks exhibited by listed and unlisted companies in their debt payments from an empirical point of view.
Design/methodology/approach
The paper attempts to establish the theoretical relationship between the agreed original periods and their corresponding periods of real payments. It is based on Krugman’s curve. This relationship has been implemented using data from listed and unlisted companies of Spain and from Western Europe countries (divided by companies, size and industry).
Findings
An alternative model has been implemented with the available information about listed and unlisted companies. There is not a significant difference in the financial risk level corresponding to listed and unlisted firms in Spain.
Practical/implications
The paper could provide a useful guidance in applying the risk in project assessment.
Originality/value
This paper provides a new methodology to reduce the subjectivity shown in the treatment of risk by traditional approaches. The method allows to including the financial risk in the time parameter of the discount function. Analysis of the delays in debt payments by both listed and unlisted companies; Alternative model able to describe the expected delays from the initial agreed period; Inclusion of the financial risk in the parameter “time” of a discount function.
Details
Keywords
This analysis attempts a comparative specification of certain aspects of the country studies contained in this volume. The point of departure is the banking crises of the early…
Abstract
This analysis attempts a comparative specification of certain aspects of the country studies contained in this volume. The point of departure is the banking crises of the early 1990s (deep in Finland, Norway and Sweden, mini-crisis in Denmark and absent in Iceland) and the contrast to Iceland's financial meltdown in 2007/2008 (no crisis in the three, a new mini-crisis in Denmark). Detailed process tracing of the Icelandic crisis is provided. The case account is then used to shed light on the different roles of neoliberalism, economics expert knowledge and populist right-wing party formation in the five Nordic political economies.
Jack A. Lesser and Lakshmi K. Thumuluri
Examines the extent to which a variety of widely utilized consumer behavior concepts are systematically related. States that within marketing, consumer behaviour research appears…
Abstract
Examines the extent to which a variety of widely utilized consumer behavior concepts are systematically related. States that within marketing, consumer behaviour research appears to lack structure and direction.Attempts to determine the nature of the interrelationships which exist between different widely examined classical consumer concepts and provides some discussion regarding the findings including areas for further comparison.
Details
Keywords
“The second attempt to model monopolistic competition was far more successful than the first, essentially because the second attempt introduced a formalization that had all the…
Abstract
“The second attempt to model monopolistic competition was far more successful than the first, essentially because the second attempt introduced a formalization that had all the relevant characteristics of monopolistic competition but was still relatively easy to handle” (pp. 1–2). The story of the first revolution is that various precursors, such as Marshall, understood that the middle ground between perfect competition and monopoly was fraught with danger, so they avoided it. In the 1930s, Edward Chamberlin and Joan Robinson independently applied the marginal revenue curve to draw the now-familiar equilibrium position for a profit-maximizing, monopolistically competitive firm. However, the first revolution never really succeeded: “Given the elegance of the monopolistic competition model, it is surprising to see how little influence it had on economic theory” (p. 10). Several of the papers make reference to the failed 1930s monopolistic competition revolution without going into detail. It seems that it is an agreed upon fact.
Many governments around the world have strategically privatized their ports. The privatized ports try to maximize profits by setting higher charges for port services and…
Abstract
Purpose
Many governments around the world have strategically privatized their ports. The privatized ports try to maximize profits by setting higher charges for port services and attracting transship cargos. This paper shows that such privatization of ports can be complemented by adjusting the number of ports. Specifically, the purpose of this paper is to derive the optimal number of ports in cases in which ports serve transship and domestic cargos.
Design/methodology/approach
This paper constructs a theoretical model in which ports compete with each other for transship and domestic cargos. In the first stage, the government determines the number of ports. In the second stage, the ports compete with each other in quantity to maximize profits. The authors have derived the optimal number of ports that maximizes national welfare.
Findings
The optimal number of ports is expressed as a function of the slope of the demand curve, the slope of the supply curve, and the share of domestic demand relative to total demand for port services. It is shown that the optimal number of ports tends to increase as the share of domestic cargo increases. The optimal number of ports, n*, is given as n*=1/(1−θ), where θ denotes the share of domestic demand in total demand for port services, when the unit cost of port services is constant.
Research limitations/implications
The analysis in the present paper is confined to the case of unilateral intervention by the government of the domestic country. Analyzing interaction among governments via competition policy would offer valuable policy implications.
Practical implications
The results of the current research offer important implications for Korean port policy in the context of maritime industrial changes, in particular, China’s New Silk Road initiative. In particular, the findings of this study suggest that Korea’s investment in ports should be concentrated on ports with competitive advantages.
Originality/value
Relatively scant attention has been paid to the possibility, or need, of strategic privatization being complemented by governmental competition policy. Filling this knowledge gap, the authors have shown that the government can mitigate the negative effects of privatization on domestic consumer surplus by introducing competition in the supply of port services.
Details
Keywords
With the current rise of multinational enterprises (MNEs) from emerging economies (EE), more attention is now being directed to EE MNEs and what drives the internationalization of…
Abstract
With the current rise of multinational enterprises (MNEs) from emerging economies (EE), more attention is now being directed to EE MNEs and what drives the internationalization of these companies. In this article we aim to provide more insights into the strategies and development of EE MNEs by conducting an in‐depth study of a Chinese high‐tech company in the communications equipment industry: Huawei. Our case study proposes that EE MNEs (1) tend to nurture their capability in the domestic market as a base before internationalization; (2) prefer to enter markets with fewer barriers in cultural, technological, economic, and institutional distances to accumulate experience and move up the value curve; and (3) use inward and outward linkages to complement their strengths and offset their weaknesses in the global market. Our study on the internationalization patterns of EE MNEs enriches and broadens current MNE theory.
Details
Keywords
“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise…
Abstract
“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.