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1 – 9 of 9Ezra Valentino Purba and Zaäfri Ananto Husodo
This study aimed to know the effect of cross-sectional risk, which comprises business-specific risk and stock market volatility, as a variable for estimating macroeconomic risk in…
Abstract
This study aimed to know the effect of cross-sectional risk, which comprises business-specific risk and stock market volatility, as a variable for estimating macroeconomic risk in Indonesia. This study observes public companies in Indonesia and Indonesian macroeconomic data from 2004 to 2020. In this study, the author uses term spread as the dependent variable that reflects macroeconomic risk. The cross-sectional risk comprises financial friction (FF), cash flow (CF), debt–service ratio, and stock market volatility as independent variables. By using the Autoregressive Distributed Lag (ARDL) Model method, this study shows that business-specific and stock market risk can estimate macroeconomic risk, so that it becomes an early signal of economic shock, such as recession or high inflation, in the future. The model in this study also examines the cross-sectional risk relationship with other macroeconomic indicators, such as the Consumer Confidence Index (CCI), money supply (M0), and Indonesia’s trade balance (TB).
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Gaurav Gupta, Jitendra Mahakud and Vishal Kumar Singh
This study examines the impact of economic policy uncertainty (EPU) on the investment-cash flow sensitivity (ICFS) of Indian manufacturing firms.
Abstract
Purpose
This study examines the impact of economic policy uncertainty (EPU) on the investment-cash flow sensitivity (ICFS) of Indian manufacturing firms.
Design/methodology/approach
This study uses the fixed-effect method to investigate the effect of EPU on ICFS from 2004 to 2019.
Findings
This study finds that EPU increases ICFS, which is more (less) during the crisis (before and post-crisis) period. The authors also find that the effect of EPU on ICFS is more for smaller, younger and standalone (SA) firms than the larger, matured and business group affiliated (BGA) firms. This study also reveals that EPU reduces corporate investment (CI). Further, the authors find that cash flow is more significant for the investment of financially constrained firms and the negative effect of EPU is more for these firms.
Research limitations/implications
This study considers the Indian manufacturing sector. Therefore, this study can be extended by analyzing the relationship between EPU and ICFS for the service sector.
Practical implications
First, this study can be useful for corporates, academicians and government bodies to understand the effect of EPU on ICFS and CI. Second, this study will help corporates to focus on internal funds to finance corporates' investment during the crisis period because EPU increases the cost of external finance which may increase ICFS and reduce CI. Third, lending agencies, investors and stakeholders should also focus on the firm's nature, ownership, size and age because these factors play a crucial role to reduce or increase the negative effect of EPU on ICFS. Fourth, the Government should make appropriate policy measures in terms of concessional interest rates to increase the easy availability of external finance for SA, small size, and young firms to reduce the negative effect of EPU on CI because these firms are considered as more financially constrained firms.
Originality/value
This study adds new inputs to the current literature of EPU in several ways. First, this study is one of the main studies focused on the relationship between EPU and ICFS (CI). Especially in emerging countries like India, examining this relationship extends previous research. Second, this study also examines the impact of EPU on ICFS for BGA, SA, small, large, matured and young firms as well as crisis and non-crisis periods. Third, this study uses the sample of the Indian manufacturing sector which has emerged the qualities to become a global manufacturing hub and attracting global investors. Therefore, examining the effect of EPU on ICFS for these firms will be more interesting.
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Elżbieta Bukalska and Michał Bernard Pietrzak
Poland was coined a ‘green island’ during the Global Financial Crisis (GFC) of 2007–2009 with a stable growth in Gross Domestic Product (GDP), while other countries experienced a…
Abstract
Research Background
Poland was coined a ‘green island’ during the Global Financial Crisis (GFC) of 2007–2009 with a stable growth in Gross Domestic Product (GDP), while other countries experienced a dramatic drop in the GDP growth. We assumed that this is due to the stronger resilience of Polish economy and Polish companies.
Purpose of this Chapter
The aim of the research is to identify the companies' stability (resilience) in the crisis situations (especially the GFC and COVID-19 crisis). We also wonder whether corporate resilience is accompanied by the financial flexibility.
Methodology
We use GDP growth rate and Profitability as the measures of the resilience. Additionally, we include in our research financial flexibility measured by debt and cash ratio as factors affecting corporate resilience. Our research covers the period 2000–2021. Our data refer to three European countries: France and Germany as the leading European countries and Poland as the leader of changes in Central and Eastern Europe.
Findings
We found that Polish economy – against German and French – have higher GDP growth and profitability ratio over the 2000–2021 period. These ratios also show lower volatility around the trend. We proved that higher corporate resilience is accompanied by higher financial flexibility of Polish companies.
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The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive…
Abstract
Purpose
The purpose of this paper is to identify and describe the influence of the knowledge base (KB) of the company on driving forces of innovation processes in knowledge-intensive services (KIS) and to compare the level of innovativeness of the final services.
Design/methodology/approach
The paper investigates through qualitative research 11 KIS organisations with different KB.
Findings
The research results identified and described the influence of the KB on driving forces of innovations processes and its results in companies with four newly identified KBs (analytical, synthetic, symbolic and compliance).
Research limitations/implications
Further research, based on a larger number of companies, is needed to confirm the results of this research and to complement the effect of the KB on driving forces of innovation.
Practical implications
This research can help organisations understand how to develop strategic plans and new ideas for innovative services depending on the KB of the organisation.
Social implications
The description of successful innovation processes and results in several leading companies presented in the study may help other companies in identifying knowledge-integration practices to improve performance and innovation processes that support multiplicity, productivity and creativity.
Originality/value
The study systemised the sources of new ideas for innovation in companies with different KB, several driving forces of innovation were identified and how these forces are affected by each KB; lastly, innovation results were compared in companies with different KB.
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Thirawut Phichonsatcha, Nathasit Gerdsri, Duanghathai Pentrakoon and Akkharawit Kanjana-Opas
Indigenous knowledge is an essential element for unveiling the evolutionary journey of socio-culture phenomena. One of the key challenges in foresight exercises is to incorporate…
Abstract
Purpose
Indigenous knowledge is an essential element for unveiling the evolutionary journey of socio-culture phenomena. One of the key challenges in foresight exercises is to incorporate social-culture issues such as culture, lifestyle and behavior (referred as indigenous knowledge) into the study. However, the statistical trends of those factors tend to be either not available or limited unlike the population or economic related factors. The purpose of this study is to present the use of valuable data from indigenous knowledge to enhance the foresight exercise through the better understanding of social dynamics and changes.
Design/methodology/approach
The fragmented form of indigenous knowledge is analyzed and converted into a structured data format and then interpreted to unveil the evolutionary journey of socio-cultural phenomena. This study applies a scenario development method to visualize the results of foresight by comparing before and after the integration of indigenous knowledge. Finally, an assessment was conducted to reflect the value enhancement resulting from the integration of indigenous knowledge into the foresight process.
Findings
With the proposed approach, the foresight study on the future development of Thai food was demonstrated. The findings of this study show that the use of indigenous knowledge on eating behavior, cooking style and food flavor helps improve the alternative scenarios for the future development of Thai foods.
Practical implications
Indigenous knowledge can be applied to develop plausible scenarios and future images in foresight exercises. However, by nature, indigenous knowledge is not well-structured and, therefore, needs to be analyzed and turned into structured data so that it can be interpreted before integrating into the foresight process.
Originality/value
This study is one of few studies addressing the opportunities for integrating indigenous knowledge into foresight process. Indigenous knowledge can unveil the evolution of socio-cultural changes to improve the results of foresight study, especially the cases where statistical data and trends may not be sufficient to foresee future development.
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Lucrezia Sgambaro, Davide Chiaroni, Emanuele Lettieri and Francesco Paolone
The purpose of this paper is to investigate the most recurrent variables characterizing the collaborative relationships of industrial symbiosis (IS) (hereinafter also referred to…
Abstract
Purpose
The purpose of this paper is to investigate the most recurrent variables characterizing the collaborative relationships of industrial symbiosis (IS) (hereinafter also referred to as “anatomic” variables) established in the attempt to adopt circular economy (CE) by collecting evidence from a rich empirical set of implementation cases in Italy.
Design/methodology/approach
The current literature on IS was reviewed, and a content analysis was performed to identify and define the “anatomic” variables affecting its adoption in the circular economy. We followed a multiple-case study methodology investigating 50 cases of IS in Italy and performed a content analysis of the “anatomic” variables characterizing each case.
Findings
This research proposes the “anatomic” variables (i.e. industrial sectors involved, public actors involvement, governmental support, facilitator involvement and geographical proximity) explaining the cases of IS in the circular economy. Each “anatomic” variable is discussed at length based on the empirical evidence collected, with a particular reference to the impact on the different development strategies (i.e. “bottom-up” and “top-down”) in the cases observed.
Originality/value
Current literature on IS focuses on a sub-set of variables characterizing collaboration in IS. This research builds on extant literature to define a new framework of five purposeful “anatomic” variables defining IS in the circular economy. Moreover, we also collect and discuss a broad variety of empirical evidence in what is a still under-investigated context (i.e. Italy).
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Pilar Ficapal-Cusí, Joan Torrent-Sellens, Pedro Palos-Sanchez and Inés González-González
Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the…
Abstract
Purpose
Due to the crisis originated by the COVID-19 pandemic, an important number of workers have been incorporating the telework modality. In this context, the distance from the workplace generates new dilemmas for work performance. In the paper the authors study the role of some individual and social antecedents on telework outcomes. In particular, they empirically investigate the direct relationship between trust (TR) and telework performance (PER) and explore mediators of that relationship such as social isolation (SI) and fatigue (FA).
Design/methodology/approach
A theoretical model with three main hypotheses is proposed and tested using partial least square structural equation modeling (PLS-SEM). The study sample, of an exploratory nature, consists of a dataset of 201 teleworkers working in Spanish companies.
Findings
The relevance of the proposed model is demonstrated and FA is found to be the factor that most affects (negatively) PER, followed by TR (positively) and SI (negatively). Beyond the direct effects, the results provide support for the role of SI and FA in mediating the relationship between TR and PER.
Originality/value
This paper discusses the PER dilemma and proposes and tests a background model that may be useful for future research. The results are of interest to human resource managers, consultants, academics and telework tool developers and managers. Practices are proposed to improve TR or to reduce feelings of SI or FA. The research provides a practical evaluation tool for telework implementation.
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This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each…
Abstract
Purpose
This paper seeks to explore the sensitivity of these parameters and their impact on fiscal policy outcomes. We use the existing literature to establish possible ranges for each parameter, and we examine how changes within these ranges can alter the outcomes of fiscal policy. In this way, we aim to highlight the importance of these parameters in the formulation and evaluation of fiscal policy.
Design/methodology/approach
The role of fiscal policy, its effects and multipliers continues to be a subject of intense debate in macroeconomics. Despite adopting a New Keynesian approach within a macroeconomic model, the reactions of macroeconomic variables to fiscal shocks can vary across different contexts and theoretical frameworks. This paper aims to investigate these diverse reactions by conducting a sensitivity analysis of parameters. Specifically, the study examines how key variables respond to fiscal shocks under different parameter settings. By analyzing the behavioral dynamics of these variables, this research contributes to the ongoing discussion on fiscal policy. The findings offer valuable insights to enrich the understanding of the complex relationship between fiscal shocks and macroeconomic outcomes, thus facilitating informed policy debates.
Findings
This paper aims to investigate key elements of New Keynesian Dynamic Stochastic General Equilibrium (DSGE) models. The focus is on the calibration of parameters and their impact on macroeconomic variables, such as output and inflation. The study also examines how different parameter settings affect the response of monetary policy to fiscal measures. In conclusion, this study has relied on theoretical exploration and a comprehensive review of existing literature. The parameters and their relationships have been analyzed within a robust theoretical framework, offering valuable insights for further research on how these factors influence model forecasts and inform policy recommendations derived from New Keynesian DSGE models. Moving forward, it is recommended that future work includes empirical analyses to test the reliability and effectiveness of parameter calibrations in real-world conditions. This will contribute to enhancing the accuracy and relevance of DSGE models for economic policy decision-making.
Originality/value
This study is motivated by the aim to provide a deeper understanding of the roles macroeconomic model parameters play concerning responses to expansionary fiscal policies and the subsequent reactions of monetary authorities. Comprehensive reviews that encompass this breadth of relationships within a single text are rare in the literature, making this work a valuable contribution to stimulating discussions on macroeconomic policies.
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This study aims to understand the unique financial behavior of transgender individuals compared to cisgender individuals. Furthermore, this study aims to demonstrate that…
Abstract
Purpose
This study aims to understand the unique financial behavior of transgender individuals compared to cisgender individuals. Furthermore, this study aims to demonstrate that understanding the financial behavior of transgender people will help financial institutions, regulators and policymakers to include them in the formal financial sector.
Design/methodology/approach
The qualitative approach to research aims at understanding a given phenomenon among the participants. Semi-structured interviews are conducted with 28 transgender and cisgender individuals each. Thematic analysis is used to understand the participants’ financial behavior and propose future research directions and implications to regulators and practitioners.
Findings
The transgender participants (TP) earn no stable income compared to cisgender participants. Due to a lack of regular income, TP faces hardships covering their spending. No fixed spending or financial planning pattern is found among the TP, and they are found to be highly uncertain of their income and spending. The TP is found wholly excluded from the financial system, and not even a single participant with an active bank account or insurance is found. TP has not visited a bank in their lifetime, and financial literacy is found completely missing among them. No TP has ever taken a bank loan or credit from a financial institution. A zeal among TP to be financially included is found, and such participation will undoubtedly help them live a financially independent life. Cisgender people (CP) are found to be earning a stable income, have full-time jobs, save money, transact through a formal financial system and are financially more independent than TPs. Gender is shown to play a role in the financial behavior of the participants.
Research limitations/implications
This study gathers information from transgender and CP and does not focus on the financial services providers; the decision not to interview the providers of financial services is a potential limitation of the present study. Another limitation is the small number of respondents who participated in the semi-structured interviews. Due to these limitations, the generalizability of the findings of this study regarding financial behavior will be restricted and require further evidence from future research.
Practical implications
The present study has several practical implications. First, the requirement of understanding the financial behavior of transgender people from their perspective is missing in the literature, and studies focusing on their behavior are required to help them be financially independent. The present study has implications for regulators, policymakers and practitioners to help transgender people improve their financial conditions.
Originality/value
The existing literature does not include studies focusing on understanding the financial behavior of transgender people or drawing a comparison of the financial behavior of transgender or CP. The present study explores the financial behavior of transgender people and highlights the unique financial behavior of transgender individuals.
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