Search results

The purpose of this paper is to investigate the potential link between Sweden’s high reliance on equity capital financing among small and medium-sized enterprises (SMEs) and its recognition as the most innovative economy in Europe according to the European Innovation Scoreboard (EIS). This paper examines the idea that the high levels of trust within Swedish society can explain why private equity financing is more prevalent among Swedish SMEs.

To test these ideas, the authors use data from the Survey on Access to Finance for Enterprises to measure the private equity reliance of firms. The authors also use the EIS to measure the innovation capacity of nations and various aspects of SMEs’ innovation activities. Finally, societal levels of trust are measured through the World Value Survey.

First, the authors find that European countries with a higher proportion of SMEs relying on equity financing tend to be ranked as more innovative by the EIS. Second, the authors find that the correlation between a nation’s share of SMEs relying on equity financing and their level of innovation activities is marginally stronger for product innovations than for business process innovations. Third, the authors find that countries with higher levels of trust tend to have higher equity capital reliance among SMEs.

This study builds upon previous research on equity capital and SMEs’ innovation activity while introducing new insights into the relationship between societal trust and equity financing.

This paper investigates the probable differential impact of the confirmed cases of COVID-19 on the equities markets of G7 and Nordic countries to ascertain possible interdependencies, diversification and safe haven prospects in the era of the COVID-19 pandemic over the short-, intermediate- and long-term horizons.

The authors apply a unique methodology in a denoised frequency-domain entropy paradigm to the selected equities markets (Li et al. 2020).

The authors’ findings reinforce the operability of the entrenched market dynamics in the COVID-19 pandemic era. The authors divulge that different approaches to fighting the pandemic do not necessarily drive a change in the deep-rooted fundamentals of the equities market, specifically for the studied markets. Except for an extreme case nearing the end (start) of the short-term (intermediate-term) between Iceland and either Denmark or the US equities, there exists no potential for diversification across the studied markets, which could be ascribed to the degree of integration between these markets.

The authors’ findings suggest that politicians should pay closer attention to stock market fluctuations as well as the count of confirmed COVID-19 cases in their respective countries since these could cause changes to market dynamics in the short-term through investor sentiments.

The authors measure the flow of information from COVID-19 to G7 and Nordic equities using the entropy methodology induced by the Improved Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (ICEEMDAN), which is a data-driven technique. The authors employ a larger sample period as a result of this, which is required to better comprehend the subtleties of investor behaviour within and among economies – G7 and Nordic geographical blocs – which largely employed different approaches to fighting the COVID-19 pandemic. The authors’ focus is on diverging time horizons, and the ICEEMDAN-based entropy would enable us to measure the amount of information conveyed to account for large tails in these nations' equity returns. Furthermore, the authors use a unique type of entropy known as Rényi entropy, which uses suitable weights to discern tailed distributions. The Shannon entropy does not account for the fact that financial assets have fat tails. In a pandemic like COVID-19, these fat tails are very strong, and they must be accounted for.

The purpose of this research is to understand the long‐run dynamics between returns, commodity prices, volatility, and US equity investment into Brazil. This research is prompted by the rapid increase in foreign equity investment into Brazil.

To address long‐run dynamic nature of the variables, multivariate autoregressive model is fitted for the period of January 1998 to May 2008. To achieve identification of this model, restrictions are imposed based on underlying financial theory and the nature of the data.

The paper finds consistent with a long literature, that US institutional equity investment is forecasted by past returns on the Brazilian stock index (BOVESPA). The paper also documents the important role of commodity prices in forecasting US equity flows to Brazil, a variable that has not been considered in much of existing literature. Finally, the paper uncovers a strong relationship between US equity flows to Brazil and measures of risk. The paper documents that an unexpected shock to US equity flows increases the volatility of the Brazilian equity market beyond what could be predicted by other variables in the system. The strong joint dynamics among US portfolio equity flows and the risk and return of the Brazilian equity market demonstrates the need for policy makers in Brazil to monitor short‐term portfolio flows.

There is a broad literature on the dynamics of US investment in emerging and developed markets but very little work focuses directly on Brazil. Additionally, this work is one of the first to explicitly consider the role of commodity prices on the dynamics of foreign equity flows to resource rich nations.

For well over three decades, the concepts of equity and efficiency have been used by policy analysts and elected officials to frame the debate about the formulation and evaluation of public policies and programs. In this paper we use these ideas to organize an historical analysis of policies and research strategies in K‐12 education finance from the 1960s through the 1990s. In each decade we stress the dominant themes, major events, and research strategies regarding equity and efficiency, knowing that themes and research strategies span many decades but are sometimes in the foreground and other times in the background. We conclude with an assessment of how these two concepts can be compatible and how current policies are increasingly “win‐win” ones that are proposed to make progress on both goals.

The United Nations Educational, Scientific and Cultural Organization's (UNESCO) Recommendation on Open Educational Resources (OER) was a milestone when it was uniformly adopted by its member states on November 25, 2019. The purpose of this conceptual paper is to provide an overview of the OER Recommendation in relation to some of the UN Sustainable Development Goals (SDGs). The paper focuses on SDG 4 on education, but also on other SDGs that are directly linked to the relevant SDGs for the overall implementation of the UNESCO OER Recommendation. These SDGs are: SDG 5 (gender equality), SDG 9 (industry, innovation and infrastructure), SDG 10 (reduce inequalities within and between countries), SDG 16 (peace, justice and strong institutions), and SDG 17 (partnerships for the goals). All five areas of the OER recommendation are closely linked to the above SDGs. This paper also discusses how to advocate with stakeholders at all levels to implement and mainstream OER and the SDGs across all areas of the OER recommendation. In addition, this concept paper discusses accessibility for all (e.g. any type of impairment/disability, etc.) and addresses quality issues at OER and their implications.

This conceptual paper provides an overview of the UNESCO OER Recommendation and its relationship to some of the SDGs. The paper also addresses the role of stakeholders in implementing the OER Recommendation and the potential problems of its accessibility and quality. This paper has been designed as a literature review including mainly official reports from the organizations in the field, such as the UN UNESCO SDGs (UN, n.d; UNESCO, 2016) and the UNESCO OER Recommendation (UNESCO, 2019, 2021a). This conceptual paper is discursive in nature. It contains a discussion based on a literature review comparative studies, experiences, works, and reflections of the author, who has been working in this field since its beginnings in 2002. This contribution is also based on the experiences, works, and reflections of other authors on the OER movement.

The UNESCO OER Recommendation (UNESCO, 2019) clarifies that all five areas of the OER Recommendation for implementation are closely linked to the SDGs (UN, n.d; UNESCO, 2016), particularly SDG4, which targets to achieve education for all by 2030, and other SDGs, such as SDG5 (gender equality), SDG9 (industry, innovation, and infrastructure), SDG10 (reducing inequalities within and between countries), SDG16 (peace, justice, and strong institutions), and SDG17 (partnerships for the goals). Since OER does not consist of a single goal but is linked to universal values, such as the common good, human rights (United Nations, 1948), equality, ethics, and social justice, this concept paper discusses how they are interconnected and how both the SDGs and the five domains of the UNESCO OER Recommendation (UNESCO, 2019) can be achieved. To date, however, there have been few studies on how they are interconnected. This paper proposes a model that highlights their relationships as two sides of the same coin, as they are interconnected and influence, facilitate, and reinforce each other.

The study presented in this concept paper may have limitations as it is mainly based on a review of the official relevant literature by UNESCOan OECD. A large-scale study relying on more comprehensive methods, such as focus groups, grounded theory, or even other qualitative and quantitative methods, could have validated the findings. However, since this is a first attempt, and there are few, if any studies in this area, it was decided to conduct the study in the form of a literature review and with a personal approach based on more than 20 years of research, experience, and consultation in the area of open education, OER, human rights (United Nations, 1948), social justice, ethics, and the common good.

The practical impact of the findings of this conceptual paper is that by breaking down the broad SDG goals to a practical level, it shows how the SDGs can be part of daily life and seamless daily education and learning throughout the lifespan of the learners.

The higher values of the SDGs relate to human rights United Nations (1948), social justice, and equity. Several of the SDGs, including SDG 4 and others addressed in the UNESCO OER Recommendation, such as the following: SDG5 (gender equality), SDG9 (industry, innovation, and infrastructure), SDG10 (reduce inequalities within and between countries), SDG16 (peace, justice, and strong institutions), and SDG17 (partnerships for the goals) can be achieved through open education (Inamorato Dos Santos et al., 2016), Achieving these SDGs and implementing the OER Recommendation will benefit both individuals and the planet. Education for all will also help solv climate problems.

The OER Recommendation (UNESCO, 2019) clarifies that all five areas of its implementation are closely linked to the SDGs, particularly SDG4, which targets education for all by 2030 (OECD, 2009; UNESCO, 2016), as well as SDG5 (gender equality), SDG9 (industry, innovation, and infrastructure), SDG10 (reducing inequalities within and between countries), SDG16 (peace, justice, and strong institutions), and SDG17 (partnerships for the goals). Since OER is not a stand-alone goal but is related to overarching values, such as human rights (United Nations (1948), equity, and social justice, this conceptual paper explores how these are interconnected and how both the SDGs and the five goals can be achieved. The proposed model is new and clearly needed in research on this topic.

This study focuses on country branding indices. The main purpose of this study is to build an objective country brand strength index using secondary data. The new index, the Modified Country Brand Strength Index (MCBSI), builds on Fetscherin's (2010) Country Brand Strength Index (CBSI) but uses more rigorous methods and design to create a complementary index to be used together with the survey-based Anholt–GfK Nation Brands Index (NBI). The MCBSI also utilized human development, which is an important dimension of country brands not captured by CBSI.

The MCBSI addresses three significant limitations of the CBSI by using an alternative methodology in constructing the index: specifically, it uses weights for the dimensions, longitudinal data, and relative values by dividing each factor by its cross-country maximum.

Our index ranks 131 countries based on the strength of their country brand. A stronger correlation was found between the MCBSI and NBI than between the CBSI and NBI.

Our contribution has strong implications for both policymakers and academic researchers as it provides a tool for assessing the strength of country brands through accurate but less costly data compared to primary data collected by consultancies for country brand strength indices. The MCBSI informs country brand managers regarding how well their country brand performs across a range of critical dimensions, including export, tourism, foreign direct investments, immigration, government environment and human development.

This study contributes to the emerging academic literature on country brand indices. Currently, there is a lack of objective measurement instruments for assessing country brands. The MCBSI is designed for this purpose to complement the NBI by measuring country brands with objective secondary data. Viewed together, the NBI and our index overcome the obvious shortcomings inherent in each method by providing objective, factual data on country brand equity while providing insight into how people socially construct and evaluate nation brands.

Earnings quality is of great concern to corporate stakeholders, including capital providers in international markets with widely varying regulatory pedigrees and ownership patterns. This paper aims to examine the association between the cost of equity capital and earnings quality, contextualised via tests that incorporate the potential for moderating effects around institutional settings. The analysis focuses on and compares evidence relating to (common law) UK/US firms and (civil law) German firms over the period 2005–2018 and seeks to identify whether, given institutional dissimilarities, significant differences exist between the two settings.

First, the authors undertake a review of the extant literature on the link between earnings quality and the cost of capital. Second, using a sample of 948 listed companies from the USA, the UK and Germany over the period 2005 to 2018, the authors estimate four implied cost of equity capital proxies. The relationship between companies’ cost of equity capital and their earnings quality is then investigated.

Consistent with theoretical reasoning and prior empirical analyses, the authors find a statistically negative association between earnings quality, evidenced by information relating to accruals and the cost of equity capital. However, when they extend the analysis by investigating the combined effect of institutional ownership and earnings quality on financing cost, the impact – while negative overall – is found to vary across legal backdrops.

This paper uses institutional ownership as a mediating variable in the association between earnings quality and the cost of equity capital, but this is not intended to suggest that other measures may be of relevance here and additional research might usefully expand the analysis to incorporate other forms of ownership including state and foreign bases. Second, and suggestive of another avenue for developing the work presented in the study, the authors have used accrual measures of earnings quality.

The results are shown to provide potentially important insights for policymakers, creditors and investors about the consequences of earnings quality variability. The results should be of interest to firms seeking to reduce their financing costs and retain financial viability in the wake of the impact of the Covid-19 pandemic.

The reported findings extends the single-country results of Eliwa et al. (2016) for the UK firms and Francis et al. (2005) for the USA, whereby both reported that the cost of equity capital is negatively associated with earnings quality attributes. Second, in a further increment to the extant literature (particularly Francis et al., 2005 and Eliwa et al., 2016), the authors find the effect of institutional ownership to be influential, with a significantly positive impact on the association between earnings quality and the cost of equity capital, suggesting in turn that institutional ownership can improve firms’ ability to secure cheaper funding by virtue of robust monitoring. While this result holds for the whole sample (the USA, the UK and Germany), country-level analysis shows that the result holds only for the common law countries (the UK and the USA) and not for Germany, consistent with the notion that extant legal systems are a determining factor in this context. This novel finding points to a role for institutional investors in watching and improving the quality of financial reports that are valued by the market in its price formation activity.

Although recent models of place branding have proposed culture as a crucial element in establishing a strong place or nation brand, the way in which cultural products influence the brand equity of other products from the same nation has not yet been studied. This study aims to argue that when a nation has strong legal institutions, as perceived by investors and managers, it offers fertile soil for cultivating cultural products that, when exported, can act as “cultural ambassadors,” promoting the country image in the minds of consumers and the value of the country's brands.

Exports of cultural products are provided by UNESCO. Valuable brands are those that brand finance included in its global top 500 most valuable brands list. The rule of law is provided by the World Bank. Panel regression models are used.

Supporting the hypotheses, exports of cultural products show positive effects on the value of brands from that country, and the rule of law shows positive effects on exports of cultural products.

Policymakers could improve the brand value of local firms by promoting exports of cultural products. To do so, policymakers should initiate judicial reforms that strengthen the rule of law to protect contracts and property rights.

This study examines the hitherto underexplored effects that a country's cultural product exports have on the brand value of firms from that country. Most prior research has focused on factors affecting imports of cultural products.