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1 – 10 of over 1000Melaku Abegaz and Pascal Ngoboka
This paper examines household and community characteristics that influence the entry of rural households into non-farm entrepreneurship and investigates the various factors that…
Abstract
Purpose
This paper examines household and community characteristics that influence the entry of rural households into non-farm entrepreneurship and investigates the various factors that influence the market exit of non-farm enterprises (NFEs).
Design/methodology/approach
The authors use data from three rounds (2011/12, 2013/14 and 2015/16) of the World Bank’s Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). The authors employ panel logit and multilevel logit models to examine the probability of opening one or more enterprises and the enterprise exit rates.
Findings
Results indicate that the likelihood of starting a NFE is positively associated with primary education attainment, access to credit, experiencing idiosyncratic shocks and availability of formal financial institutions. Age, higher education attainment and rising farm input prices constrain entry into non-farm entrepreneurship. The enterprise exit rate is negatively associated with small-town residence, wealth, access to tar/gravel roads and cellphone communication.
Practical implications
Policymakers and administrators should strive to address the challenges that communities face in transportation, communication and financial services. Policies aimed at stabilizing prices and increasing access to mobile communication, primary education and road infrastructure could help expand the rural non-farm sector.
Originality/value
Previous studies primarily examined the determinants of participation in NFEs at a given time using cross-sectional data. The current study uses panel data to study the dynamics of NFE ownership by investigating households’ decisions to enter into or exit from the sector.
Peer review
The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-09-2022-0611
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Giacomo Morri, Fan Yang and Federico Colantoni
The aim of this research paper is to analyze the connection between ESG performance and financial performance within the real estate sector. By focusing on ESG ratings and pillar…
Abstract
Purpose
The aim of this research paper is to analyze the connection between ESG performance and financial performance within the real estate sector. By focusing on ESG ratings and pillar scores as proxies for ESG performance, the study investigates how these factors impact both profitability and market indicators.
Design/methodology/approach
With data sourced from over 680 publicly listed real estate companies, the research employs a fixed effects regression model to analyze the findings. By utilizing this method, the study can assess the impact of governance, environmental and social factors on both the accounting and market performance of real estate companies.
Findings
The outcomes of this study underscore a link between sustainability, particularly environmental aspects and financial performance. However, the study also reveals a contrasting result: governance factors are associated with adverse financial outcomes. Nevertheless, it is important to highlight the limitations as the results present a mixed picture with limited significant findings.
Practical implications
Companies should prioritize improvements in environment to boost profitability, while they should carefully consider the costs and benefits associated with enhancing their governance structure.
Originality/value
By focusing on this industry and adopting a global perspective, the study addresses a gap in the literature. The research’s innovative approach to utilizing ESG ratings and pillar scores as proxies for ESG performance enhances its originality. Furthermore, the research’s identification of the differing impacts of environmental and governance factors on financial outcomes add novel perspectives to the discourse.
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Orlando Joaqui-Barandica, Brayan Osorio-Vanegas, Carolina Ramirez-Patiño and Cesar A. Ojeda-Echeverry
This study aims to explore the asymmetric effects of macroeconomic factors on the profitability of large-cap companies in an emerging country like Colombia, using the Morgan…
Abstract
Purpose
This study aims to explore the asymmetric effects of macroeconomic factors on the profitability of large-cap companies in an emerging country like Colombia, using the Morgan Stanley Capital International (MSCI) Colombia index as the basis.
Design/methodology/approach
We employ a combination of singular spectrum analysis (SSA) and principal component analysis (PCA) to identify and estimate four key macroeconomic factors that account for approximately 47.8% of Colombia's macroeconomy. These factors encompass indicators related to inflation and cost of living, foreign trade and exchange rate, employment and labor force and trade and production in Colombia. We utilize the distributed lag nonlinear model (DLNM) to analyze the asymmetric relationships between these factors and corporate profitability, considering different scenarios and lags.
Findings
Our analysis reveals that there are indeed asymmetric relationships between the identified macroeconomic factors and corporate profitability. These relationships exhibit variability over time and lags, indicating the nuanced nature of their impact on corporate performance.
Originality/value
This study contributes to the existing literature by applying a novel methodology that combines SSA and PCA to identify macroeconomic factors within the Colombian context. Additionally, our focus on asymmetric relationships and their dynamic nature in relation to corporate profitability, using DLNM, adds original insights to the research on this subject.
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Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in…
Abstract
Purpose
Although the effects of both news sentiment and expectations on price in financial markets have now been extensively demonstrated, the jointness that these predictors can have in their effects on price has not been well-defined. Investigating causal ordering in their effects on price can further our understanding of both direct and indirect effects in their relationship to market price.
Design/methodology/approach
We use autoregressive distributed lag (ARDL) methodology to examine the relationship between agent expectations and news sentiment in predicting price in a financial market. The ARDL estimation is supplemented by Grainger causality testing.
Findings
In the ARDL models we implement, measures of expectations and news sentiment and their lags were confirmed to be significantly related to market price in separate estimates. Our results further indicate that in models of relationships between these predictors, news sentiment is a significant predictor of agent expectations, but agent expectations are not significant predictors of news sentiment. Granger-causality estimates confirmed the causal inferences from ARDL results.
Research limitations/implications
Taken together, the results extend our understanding of the dynamics of expectations and sentiment as exogenous information sources that relate to price in financial markets. They suggest that the extensively cited predictor of news sentiment can have both a direct effect on market price and an indirect effect on price through agent expectations.
Practical implications
Even traditional financial management firms now commonly track behavioral measures of expectations and market sentiment. More complete understanding of the relationship between these predictors of market price can further their representation in predictive models.
Originality/value
This article extends the frequently reported bivariate relationship of expectations and sentiment to market price to examine jointness in the relationship between these variables in predicting price. Inference from ARDL estimates is supported by Grainger-causality estimates.
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K. Sandar Kyaw, Yun Luo and Glauco De Vita
This study empirically examines the moderating role of geopolitical risk on the tourism–economic growth nexus by applying a recent geopolitical risk indicator developed by…
Abstract
Purpose
This study empirically examines the moderating role of geopolitical risk on the tourism–economic growth nexus by applying a recent geopolitical risk indicator developed by Caldara and Iacoviello (2022) in a cross-country panel data growth model context for a sample of 24 countries.
Design/methodology/approach
A Dummy Variable Least Squares panel data model, nonparametric covariance matrix estimator and SYS-GMM estimation techniques are employed for the analysis. The authors capture the GPR moderating effect by disaggregating the cross-country sample according to low versus high country GPR score and through a GPR interaction coefficient. Several controls are included in the models such as gross fixed capital formation and—consistent with Barro (1990)—government consumption. Trade openness is used to account for the export-led growth effect. In line with neoclassical growth theory (e.g. Barro, 1991), the authors also include the real interest rate, to account for policy makers' commitment to macroeconomic stability, financial depth, as a proxy for financial development, population growth and the level of secondary school education. The authors also control for unobserved country-specific and time-invariant effects.
Findings
The research finds that the interaction term of geopolitical risk significantly contributes to the predictive ability of the regression and provides empirical evidence that confirms that only in low geopolitical risk countries international tourism positively and significantly contributes to economic growth. Important theoretical and policy implications flow from these findings.
Originality/value
The study not only contributes to advancing academic knowledge on the tourism–growth nexus, it also has impact beyond academia. Many countries have in the past pursued and many continue to pursue, tourism specialization and/or tourism-led growth strategies based on the theoretically well-established and empirically validated positive link between inbound tourism and economic growth. The findings alert policy makers in such countries to the significant moderating role that geopolitical risk plays in affecting the above-mentioned relationship and to the importance of prioritizing geopolitical stability as a policy precursor for the successful implementation of such strategies.
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Miriam Alzate, Marta Arce Urriza and Monica Cortiñas
This study aims to understand the extent of privacy concerns regarding voice-activated personal assistants (VAPAs) on Twitter. It investigates three key areas: (1) the effect of…
Abstract
Purpose
This study aims to understand the extent of privacy concerns regarding voice-activated personal assistants (VAPAs) on Twitter. It investigates three key areas: (1) the effect of privacy-related press coverage on public sentiment and discussion volume; (2) the comparative negativity of privacy-focused conversations versus general conversations; and (3) the specific privacy-related topics that arise most frequently and their impact on sentiment and discussion volume.
Design/methodology/approach
A dataset of 441,427 tweets mentioning Amazon Alexa, Google Assistant, and Apple Siri from July 1, 2019 to June 30, 2021 were collected. Privacy-related press coverage has also been monitored. Sentiment analysis was conducted using the dictionary-based software LIWC and VADER, whereas text mining packages in R were used to identify privacy-related issues.
Findings
Negative privacy-related news significantly increases both negativity and volume in Twitter conversations, whereas positive news only boosts volume. Privacy-related tweets were notably more negative than general tweets. Specific keywords were found to either increase or decrease the sentiment and discussion volume. Additionally, a temporal evolution in sentiment, with general attitudes toward VAPAs becoming more positive, but privacy-specific discussions becoming more negative was observed.
Originality/value
This research augments the existing online privacy literature by employing text mining methodologies to gauge consumer sentiments regarding privacy concerns linked to VAPAs, a topic currently underexplored. Furthermore, this research uniquely integrates established theories from privacy calculus and social contract theory to deepen our analysis.
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The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support…
Abstract
Purpose
The present paper aims to highlight how manufacturing expansions under conditions of increasing returns, which involve the growth of intermediate goods specializations, support advanced service employment. In addition, the increasing use of manufacturing products in services highlights additional, new service sector employment opportunities.
Design/methodology/approach
This paper investigates (1) the manufacturing and service interactions and (2) the investment behaviour in manufacturing using Auto-Regressive Distributed lags (ARDL) and Vector Autoregressive (VAR) models. The models allow for different specifications to study whether investment behaviour in manufacturing supports dynamic manufacturing and service interactions.
Findings
The results underpin how Kaldorian manufacturing as an engine of growth is still relevant in Indian growth and is key to achieving higher advanced employment, export-orientation and services and manufacturing nexus outcomes. What matters, though, is that manufacturing investments are to be guided mainly by intermediate goods specializations. The slowdown of these specializations, explaining the slowdown of manufacturing investment, is therefore, a concern.
Originality/value
A reinterpretation of manufacturing as an engine of growth in which primacy is given to investment behaviour in technical progress functions that can support the growth of specializations in manufacturing and such specialized service employment.
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Changfei Nie, Wen Luo, Zhi Chen and Yuan Feng
Based on strategic choice theory, this study examines the impact and mechanisms of intellectual property demonstration city (IPDC) policy in China on corporate ESG performance.
Abstract
Purpose
Based on strategic choice theory, this study examines the impact and mechanisms of intellectual property demonstration city (IPDC) policy in China on corporate ESG performance.
Design/methodology/approach
This study uses China’s A-share listed companies’ data from 2009 to 2019 and conducts a difference-in-differences (DID) to explore the causal relationship between IPDC policy and corporate ESG performance.
Findings
Baseline regression results indicate that the IPDC policy can significantly improve corporate ESG performance. Mechanism tests reveal that the IPDC policy expands firm green technology innovation, enhances firm human capital investment and increases government innovation subsidies, thereby promoting corporate ESG performance. Moderating effect results show that the promotion impact on corporate ESG performance of the IPDC policy is diminished by government fiscal pressure. Heterogeneity analyses indicate that the IPDC policy has a stronger impact on corporate ESG performance in key cities, firms in high-tech industries, firms with a higher reliance on intellectual property protection (IPP) and state-owned enterprises (SOEs).
Originality/value
The findings enrich the theoretical research on the influencing factors of corporate ESG performance and provide practical references to strengthen IPP and implement a more thorough intellectual property development strategy.
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This paper examines the hypothesis of local herding (i.e. own-area effects) by individual investors on a particular stock-month. Using a unique dataset on online and offline…
Abstract
This paper examines the hypothesis of local herding (i.e. own-area effects) by individual investors on a particular stock-month. Using a unique dataset on online and offline individual investors’ trading records in Korea, we analyze buying and selling transactions involving 10,000 accounts from February 1999 to December 2005. We find that both online and offline investors in the same area tend to exhibit stronger local herding compared to investors’ trades who are geographically remote. Interestingly, online investors not only present stronger own-area effects but also exhibit more pronounced other-area effects compared with offline investors. Furthermore, our analysis indicates that gender and religious affiliation are important in investment behavior, with male and non-religious investors displaying a greater stock market participation in contrast to investors who are female and Protestant.
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Leyla Orudzheva, Manjula S. Salimath and Robert Pavur
The consequences of corporate corruption control (CCC) have either been investigated outside the firm (e.g. foreign direct investment inflows) or inside the firm (e.g…
Abstract
Purpose
The consequences of corporate corruption control (CCC) have either been investigated outside the firm (e.g. foreign direct investment inflows) or inside the firm (e.g. profitability). Yet prior research addresses these implications separately, treating them as distinct phenomena, ignoring questions at their intersection. However, corruption control can be leveraged to benefit both organizations (internally) and environments (externally). In line with open systems theory, this study aims to explore a ripple effect of corruption control not only inside organizations (efficiency through adoption of sustainable resource management practices) but also outside [community-centered corporate social performance (CSP)].
Design/methodology/approach
Using a longitudinal sample of multinational enterprises from Forbes list of “The World’s Largest Public Companies,” the authors use a cross-lagged panel design to provide clarity regarding causal effects.
Findings
Results confirm causal directionality and support the positive effect of corruption control on resource management and community CSP, contributing toward understanding implications at the organization–environment interface.
Originality/value
The authors examine both internal and external implications of CCC. The use of a cross-lagged design that is relatively novel to the management field allows to check for casual effects between CSP elements that were previously assumed to have reciprocal casual effects.
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