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This paper aims to find out how the legal system interacts with other institutions in attracting Foreign Direct Investment (FDI) into Africa.

The authors use annual panel data of 49 African countries over the period 1980 to 2011, and use the system generalized method of moments (GMM) estimation technique and pooled panel data regression.

The authors find that the source of a country’s legal system deters FDI inflow as institutions alone cannot bring in the needed quantum of FDI. In terms of trading blocs, it was found that there is negative significant relationship between institutional quality and FDI for South African Development Community (SADC) as well as Economic Community of West Africa States (ECOWAS) countries.

For policy implications, the results suggest that reliance on institutions alone cannot project the continent to attract the needed FDI.

Empiricists have devoted considerable effort to estimating the relationship between institutions and FDI on the African continent, but this paper seeks to ascertain the effect of legal systems and institutional quality within African specific trade and regional blocks.

The purpose of this paper is to examine the impact of the regulatory-driven market structure on firm pricing behaviour by testing the structure-conduct-performance (S-C-P) hypothesis for both life and non-life insurance markets in Ghana.

Using a panel data on 14 life and 22 non-life insurers from 2007 to 2011, the authors employed the Herfindahl Hirschman Index and concentration ratio as proxies for the S-C-P hypothesis while efficiency scores were estimated using the data envelopment analysis technique to proxy for the efficient structure (ES) hypothesis. The dependent variable, profitability was measured as return on assets while controlling for size, underwriting risk, leverage, GDP growth rate and inflation. The models were estimated using the panel corrected standard errors of Beck and Katz (1995) and random effects estimations.

The results from the empirical estimation provide ample evidence in support for ES hypothesis for both life and non-life insurance markets. While conflicting results was found for SCP hypothesis in the non-life insurance market, it was rejected in the life insurance market. The findings also point to an increasing level of competition in both life and non-life insurance industry in Ghana though they still remain concentrated with the life insurance sector having high levels of efficiency compared to the non-life sector.

The findings of the study will enhance the understanding of firm behaviour in the new markets created to shape regulatory and competition policies of the regulator to promote consumer welfare while ensuring a stable industry to enhance its role in economic development.

This is the first study to test the market power and efficient hypotheses on the insurance industry in Ghana. To the best of the author’s knowledge, this study is the first to examine the determinants of profitability in the non-life insurance market.

The purpose of this paper is to investigate the impact of natural resources on foreign direct investment (FDI) in Africa. Decomposing the measures of natural resource, in terms of contribution to GDP (oil rent (OR), mineral rent (MR) and forest rents (FRs)) and export drive (fuel exports (FE) and minerals export), with the objective of obtaining quantitative estimates of their relationship with FDI, we considered the effect of regional or trade blocks on the continent and control for trade openness, financial market development and infrastructure.

Using annual panel data of 49 African countries over the period 1980-2011 and employing the system GMM estimation technique.

The authors show that after allowing for effect of trade or regional block formation, natural resources in its composite form (ORs, MRs, forest rents (FRs), FEs and minerals export) influences FDI in Africa. Quantitatively, we demonstrate that though natural resources (compositely) influences FDI, the different measures of natural resource differ significantly in terms of their marginal contribution in attracting FDI to the continent especially to different trade blocks. The authors provide that in the presence of certain type of natural resources, trade openness or banking sector credit expansion or infrastructural development is less desirable whilst regional or trade blocks strongly moderate the effect of financial market development and infrastructural development on FDI flow on the continent.

The authors employed a broad data set to provide evidence of the association between natural resources in its composite form and well as its various component and FDI to African after accounting for regional/trade blocks.

The purpose of this paper is to investigate the impact of intellectual capital (IC) efficiency on the banks’ risk-taking and stability of Asian emerging markets.

This study uses a sample of 204 listed banks from 12 Asian emerging countries for the period 2010 to 2019. Data were analyzed using Ordinary Least Squares regression and checked for robustness using system generalized methods moment (GMM) estimation. The dependent variable of bank stability is measured using Z-score-based return on assets (ROA) and return on equity (ROE). The second dependent variable of bank risk is proxied by the standard deviation of ROA, ROE, non-performing loans and loan loss provision.

The results suggest the IC efficiency has no association with bank risk-taking and stability. The findings lend no support to the resource-based theory. The robustness of this result is confirmed by the system GMM estimation. However, support is found for the competition fragility view as high market power is associated with low risk-taking. The IC subcomponents, human capital efficiency (HCE) report a negative coefficient for bank risk-taking thereby having no support for the hypothesized relationships. Diversified banks with a higher deposit to total asset ratio resort to high risk-taking.

IC efficiency does not have an impact on the bank’s risk-taking behavior and stability for Asian banks. Managers can use these findings to improve their IC and boost investor confidence. Regulatory authorities should increase its monitoring function of banks when the GDP decreases as risk-taking behavior are galvanized during this period.

This research is one of the first to provide empirical evidence of IC efficiency’s relationship with bank stability and bank risk-taking. The implications are useful for policymakers, managers and governing bodies to enhance the banks’ IC efficiency.

This study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.

Using annual data extracted from audited financial statements of 24 banks from 2006 to 2015, a ratio of non-performing loans to gross loans and advances is employed to estimate asset quality growths while the value-added intellectual coefficient by Pulic (2008, 2004) measures intellectual capital. The panel-corrected standard errors estimation technique is used to estimate panel regressions with asset quality as the dependent variable.

Asset quality of banks in Ghana is generally not affected by intellectual capital. However, when intellectual capital is divided into its components, the study indicates that there are significant positive relationships between asset quality and two components of intellectual capital. Thus, structural capital and human capital efficiencies positively affect the asset quality of banks.

The findings of the study implore managements of banks to increase structural and human capital investments and efficiencies to improve asset quality. Furthermore, the results have direct implications on developments in financial markets in emerging economies.

The study analyses the link between typical intellectual capital and asset quality of banks which is yet to be empirically examined in an emerging banking market.

The purpose of this paper is to examine the relationship between intellectual capital (IC) and profitability of insurance companies in Ghana.

Data on 36 life and non-life insurance companies from 2007 to 2011 are employed to estimate the value added intellectual coefficient of Pulic (2004, 2008). Using return on assets and underwriting profit as indicators of profitability, the ordinary least squares panel corrected standard errors of Beck and Katz (2005) is used in estimating the relationship in the presence of serial correlation and heteroskedasticity. Leverage, underwriting risk and insurers’ size are used as control variables.

Non-life insurers have high IC performance comparative to life insurers. This study finds a significant positive relationship between IC and profitability of insurers in Ghana while human capital efficiency is the main driver of insurers’ IC performance.

The study discusses relevance of IC for management of insurance companies in Ghana and other emerging insurance markets in Africa.

This appears to be the first study to examine the impact of IC on profitability of a developing insurance market in Africa.

This paper aimed to test a proposed framework highlighting strategic green marketing initiatives and how they drive new technology implementation towards green corporate performance, underpinned by institutional isomorphism.

The study used a quantitative method and convenience sampling approach in gathering data using adapted questionnaires to solicit first-hand information from 225 employees of small and medium-sized enterprises (SMEs) in the tourism and hospitality sector underpinned by the theory of institutional isomorphism.

The study shows that green communication and green strategy alignment have significant predictive effects on new technology implementation. Cultural isomorphism significantly moderated the effects of implementing new technology (i.e. green communication and strategy alignment). In addition, “new technology implementation had a significant predictive effect on green corporate performance”. Meanwhile, the moderation effect of “green creative behaviour on the new technology-green corporate performance dyad was positive but insignificant.”

The study’s novel framework confirms how green communication strategy and green strategy alignment complement cultural isomorphism to explain the impact of new technology implementation on green corporate performance, underpinned by institutional isomorphism.

Product-service innovation (i.e. servitization) is providing opportunities to small and medium-sized enterprises (SMEs) to offer services that are directly coupled to their products. Despite scholarly efforts on servitization in domestic markets, the determinants of international product-service innovation remain unclear. Therefore, this study draws insights from dynamic capability (DC) view and aims to examine the international human capital and international product-service innovation relationship. Specifically, the authors argue that the effect of international human capital on international product-service innovation is mediated by international inter-organizational marketing capability (IIMC) and moderated by international market complexity.

The authors test the conceptual model using structural equation modeling on a sample of 211 SMEs operating in United Arab Emirates (UAE) – an emerging market economy.

The results show that IIMC mediates the relationship between international human capital and international product-service innovation. The authors further found that the indirect relationship between international human capital and international product-service innovation is strengthened when international market complexity increases in magnitude.

This study advances the knowledge on international servitization by examining international human capital and IIMC as the determinants and international market complexity as a moderator. Data collection in the UAE contributes to empirical research on international servitization from emerging markets.

This study considered five means of transport, both old and emerging ones and analysed the preferences of city dwellers in a rapidly expanding African city such as Accra.

A total of 891 respondents participated and were selected through a multistage sampling method. The Garrett and Kendall's ranking methods, Pearson chi-square test and a choice model were employed to assess respondents' preferences for various means of transport, the motivating factors for these preferences and socio-economic characteristics associated with these preferences.

The results show that there are clear preferences with respect to transport choices, which are motivated by factors such as price, comfort, security and even availability. In addition, socio-economic characteristics of respondents such as age, income, car ownership status and employment status are associated with respondents' preference for one means of transport over the other.

The study analyses transport preferences for modes of transport commonly used in urban areas. The findings have implications for the transport policy adopted in an urban area such as Accra. The findings suggest that for maximum patronage, public authorities in Accra or Ghana may invest more in transport services which are readily available, have moderate prices and provide comfort to urban dwellers. This may improve standard of living of urban dwellers and enhance productivity.

The paper presents new evidence of drivers that influence choice for traditional and emerging transport services in a developing economy such as Ghana. Not many studies do such comparative analysis.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-05-2022-0360

The purpose of this paper is to examine the impact of trade openness on the cost of financial intermediation and bank performance. Developed and developing countries are currently pursuing trade openness to achieve higher bank performance with less intermediation costs.

In attaining the study's objectives, several regression methodologies were employed (i.e. system generalized method of moments (GMM), fixed effect, pooled ordinary least squares (OLS) and vector error correction model (VECM)). The authors tested the hypothesis on data of 885 banks from BRICS countries, which span 18 years (2000–2017).

The results from this robust study showed that embedding higher trade openness reduces financial intermediation costs and improves banks' performance. The results remain robust following the use of different estimation methods and alternative variables as proxies. In addition, results were still valid upon considering bank level, industry level and country level as control variables. It was also observed that the relation pattern holds its rigidity during “good” and “bad” times (i.e. the global financial crisis).

The results provide better references for bank regulators, academics and policymakers to take advantage of the low financial intermediation costs resulting from trade openness.