Search results

A methodology for segmenting the Australian wine market on a behavioural basis is proposed and illustrated. The initial segmentation is accomplished by using estimated conjoint part‐worths for the attributes of price, variety, area and vintage as criteria in a cluster analysis. A multinominal logit choice model is then estimated for each segment using data from a conjoint choice experiment in order to determine what critical variables drive the choice process in each segment. The results illustrate the usefulness of a behaviourally‐based segmentation scheme when coupled with conjoint choice analysis in determining critical choice drivers.

This paper reviews the use of logit and probit models in marketing and focuses on demonstrating the use of ordered probability models. This type of model is appropriate for many applications in marketing and business where the dependent variable of interest is ordinal (e.g., likert scales). A comparison between the properties of the ordinary least squares (OLS) model and ordered logit and probit models is made using consumer satisfaction data on automobiles. This comparison between the two models shows that the use of OLS for ordered categorical data gives misleading results and produces biased estimates, leading to inaccurate hypothesis testing. The paper concludes that ordered probability models, such as the ones illustrated, should be employed in marketing and business research where the dependent variable is ordinal.

A method is derived for estimating a discrete choice model incorporating heteroscedasticities to reflect repeated measurement problems. Heterogeneity of each observation is characterised by a specific scale function and individual heterogeneity is introduced in the random utility choice model. This research proves that the unobserved influences affecting a specific individuals' mode choice are correlated from one of his or her selections to the next repeated questions. This research also suggest a strong evidence of learning effect, implying variances would be decrease as the responses faces repeated questions.

The purpose of this paper is to develop a credit‐scoring model as an aggregate valuation procedure that integrates various financial and non‐financial factors and thereby improves small to medium‐sized enterprises' (SMEs) knowledge about their default risk.

Using panel data from a representative sample of Portuguese SMEs operating in the food or beverage manufacturing sector, this paper develops a logit scoring model to estimate one‐year predictions of default.

The probability of non‐default in the next year is an increasing function of profitability, liquidity, coverage, and activity and a decreasing function of leverage. Smaller firms and those with just one bank relationship have a higher probability of default. The findings suggest that a main bank has incentives to engage in hold up by increasing margins that ex post are too high.

Because SMEs differ from large corporations in their credit risk (e.g., riskier, lower asset correlations), this study has implications for both banks and supervisory actors. Banks should consider qualitative variables when setting internal systems and procedures to manage credit risk. Supervisory institutions should claim mixed credit ratings to determine regulatory capital requirements.

This paper offers a new model, focused specifically on SMEs, and explores the role of financial and non‐financial factors in determining internal credit risks.

The purpose of this paper is to analyse the impact of a World Heritage site (WHS) nomination as perceived by a specific group in a community, namely, the residents of the Alto Douro Wine Region.

The primary data were gathered through a face-to-face questionnaire, and the data analysis was performed using multivariate statistical methodologies (categorical principal components and cluster analysis) and the multinomial logit model.

Since the UNESCO nomination, the economic return was perceived as higher for almost half of the owners within the viticulture activity, for over half (56 per cent) within the tourism activity sector, and for 38 per cent in commerce. The general benefits mainly contributed to the residents’ positive view of the UNESCO’s classification. The viticulture activity negatively influences the perceived impact of listing on economic revenue. This is a very interesting and disturbing conclusion, since it suggests that not all grape-growers are feeling positive effects from the UNESCO nomination.

This paper contributes to the ongoing debate on the WHS perceived effects by local residents. Methodologically, the paper presents a more refined analysis compared to most existing studies. By performing group segmentation, the paper provides more generalised information on community perceptions, bringing forward detailed knowledge about the interests of distinct groups such as wine makers, residents employed in tourism industry and commerce.

While literature has examined market orientation, it is limited with respect to small businesses. More specifically, previous research has not considered empirically the relationship between small business market orientation and environmental uncertainty. Due to resource constraints, smaller businesses are especially vulnerable to environmental uncertainty. To address this, the purpose of this paper is to examine the relationship between environmental uncertainty and small business market orientation.

Drawing from small business literature, the authors developed a research model advancing and testing hypotheses to address the research aim. An empirical study was conducted with 104 small grocery retailers from Brazil. A questionnaire was administered, divided into two sections relating to measurement of market orientation and the market turbulence and technological turbulence as dimensions of environmental uncertainty. ANOVA technique and a multinominal logistic regression model were employed to analyze the results.

The findings reinforce the view of market orientation as a dynamic construct which can explain the relationship between small businesses and environmental uncertainty. Small businesses with higher levels of market orientation emphasized responsiveness as a critical dimension in orienting to turbulent markets. The findings also show that aspects of technological turbulence, particularly pertaining to the opportunities for competitive advantage and new ideas for product supply related to higher levels of market orientation.

The paper's findings, addressing a knowledge gap in the small business literature, emphasize the importance of small businesses orienting themselves to the market, particularly in environments characterized by higher levels of market and technological turbulence.

This paper aims to investigate how firms from emerging economies choose among different international bond markets: global, US144A and Eurobond markets. The authors explore if the ranking in regulatory stringency –global bonds have the most stringent regulations and Eurobonds have the most lenient regulations – leads to a segmentation of borrowers.

The authors use a novel data set from emerging economy firms, treating them as consolidated entities. The authors also obtain descriptive evidence and perform univariate non-parametric analyses, conditional and multinomial logit analyses to study firms’ marginal debt choice decisions.

The authors show that firms with poorer credit quality, less ability to absorb flotation costs and more informational asymmetries issue debt in US144A and Eurobond markets. On the contrary, firms issuing global bonds – subject to full Securities and Exchange Commission requirements – are financially sounder and larger. This exercise also shows that following the global crisis, firms from emerging economies are more likely to tap less regulated debt markets.

This is, to the authors’ knowledge, the first study that examines if the ranking in stringency of regulation – global bonds have the most stringent regulations and Eurobonds have the most lenient regulations – is consistent with an ordinal choice by firms. The authors also explore if this ranking is monotonic in all determinants or there are firm-specific features which make firms unlikely to borrow in a given market. Finally, the authors analyze if there are any changes in the debt-choice behavior of firms after the global financial crisis.

The purpose of this paper is to examine the earnings differentials between the locals and the rural–urban migrants in urban labor market in Vietnam.

Using the new Vietnam Rural-Urban Migration Survey 2013 (VRUMS2013) that is specifically designed for rural–urban migration, the author applies Appleton et al.’s (1999) procedure correcting for potential selectivity to decompose the offered earnings gap between the locals and the rural–urban migrants into within- and between-occupation pay differential. Bootstrapping is used to derive the standard errors for the decomposition results. The author further applies the propensity score matching (PSM) method to check whether the results are robust by restricting the sample to the “common support.”

Within-job difference, particularly, the favorable treatment toward urban workers contributes significantly to the overall and total unexplained earnings gap. Further, between-job pay differential attributed to the over-representation of urban workers in high-paying job also helps to widen the gap. These results are robust restricting to the “common support” sample using PSM.

Due to the sample size, occupations are only classified into three broad categories. Finer classification will allow a better comparison between the contributions of between and within-occupation to earning inequality. The data are only limited to a few cities and do not include other urban centers that also receive rural–urban migrants.

Policies to promote equal pay and alleviate within-job “discrimination,” especially the preferential treatment favoring the locals (rather than to provide equal access to different jobs) are crucial for migrants’ labor outcome. Moreover, this study can, to some extent, be seen as a timely contribution for the debate on household registration reform in general and in Vietnam specifically. Given China’s announcement to grant permanent household registration (hukou) to unregistrated migrants in late 2015, investigating whether there is a two-tier labor market in the cities in Vietnam is particularly important for the ongoing debate regarding future of household registration system (ho khau).

This is the first study in Vietnam on rural–urban migration and occupation segregation – an area that has been relatively less well studied in developing/transitional countries. Vietnam is also one of the few developing countries who have household registration system in place. This has made it an interesting case. The author uses a new survey data to apply the Appleton et al. (1999) decomposition on the offered wage gap rather than observed wage gap. Standard errors of the decomposition results are bootstrapped and a robust check using propensity score method is conducted.

The aim of this study is to understand the determinants of relationship between banks and nonfinancial corporations within Poland (which are considered relationship banking from this point onward).

The main sources of data used in the study are the large credit database (credit register of the National Bank of Poland (NBP)) and other aggregated data, including data from the Warsaw Stock Exchange and the NBP. Econometric panel logit methods have been used to test how different factors affect bank–firm relationships. Three main groups of factors have been investigated: the characteristics of the firm (i.e., size, ownership type, and R&D activity); the characteristics of the financial sector (i.e., competition in the banking sector); and macroeconomic conditions.

The findings demonstrate that Polish firms readily establish single-bank relationships, and firms with the highest quality of credit portfolios borrow often from multiple creditors. All conducted estimations demonstrated that the relationship between financing from a single bank and from foreign capital had a positive sign. Also, a decrease in concentration in the banking sector, which may be identified with an increase in competition, supports the establishment of relationship banking.

The study was performed using the data from large exposure database collected for supervisory purposes. Exposures (credits, derivatives, etc.) larger than 500 thousand PLN (approx. 120 thousand EUR) were only considered. Future research on bank–firm relationships should focus on the influence of financing costs, maintaining relationships when the borrower is in a difficult financial position, and other unique features of banks using the strategy of relationship financing.

The understanding of the characteristics of bank–firm relationships can help to improve banking practice and supervisory policy in Poland.

This study makes a noticeable contribution to the understanding of the banking sector and its relationships with nonfinancial corporations in Poland. It is the first empirical study on such a large sample of panel data from Polish banking sector and industries, too.