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Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

This chapter addresses an unresolved theoretical issue in international business: the impact of existing, committed assets in a host location on parent and subsidiary decisions regarding the configuration of future value-adding activities for the location. We develop a measure of investment committedness, or the degree of flexibility versus specificity of existing assets in a host location, to explore this issue. The measure assesses whether assets, such as brands, human capital, process technologies, and supplier relations, retain only scrap value outside their current application or they can be redeployed to alternative value-adding activities in the host location or shifted offshore, either within the multinational enterprise (MNE) or to another user. The measure is a key step in developing a model of strategic choice for the future configuration of value-adding activities by MNEs in host locations. Drawing on firm-specific data from 237 MNE subsidiaries operating in Australia, we first present a traditional integration-responsiveness classification of subsidiary activities. This static snapshot of the subsidiaries’ current profiles is then compared with the measure's preliminary findings on the levels of investment committedness and strategic flexibility available to the sample MNEs and how this may shape strategic allocation decisions, including divestment and withdrawal.

This paper aims to examine how multinational enterprises (MNEs) and local partners, including suppliers, customers and competitors in China, improve their innovation capabilities through collaboration. This collaboration was analysed as a three-way interaction between the ownership-specific (O) advantages or firm-specific assets (FSAs) of the MNE subsidiary, the FSAs of the local partner and the location-specific assets of the host location.

The propositions are examined through a survey of 320 firms, supplemented with 30 in-depth case studies, based in Mainland China.

It is found that the recombination of asset-type (Oa) FSAs and transaction-type (Ot) FSAs from both partners leads to new innovation-related ownership advantages, or “recombinant advantages”. Ot FSAs, in the form of access to local suppliers, customers or government networks are particularly important for reducing the liability of foreignness for MNEs.

The study reveals important patterns of reciprocal transfer, sharing and integration for different asset categories (tacit, codified) and different forms of FSA and explicitly links these to different innovation performance outcomes. The paper reports on these findings, making an empirical contribution in an important context (China-based partnerships). This paper also contributes to conceptual developments, connecting various kinds of FSA, tacit and codifiable assets and “recombinant advantages”. Limited conceptual, methodological and empirical contributions are made in linking asset integration with (measurable) innovation performance outcomes in international partnerships.

This paper examines the profitability and performance measurement of U.S. regional banks during the period 1994–2011, using the GMM estimator technique. Our study extends prior research by including several factors not previously considered using U.S. data.

We use bank-specific, industry-specific, and macroeconomic determinants of profitability contemporaneous with our performance indicators. We follow the accounting fundamental analysis path in explaining the bank performance.

Among the performance measures, the efficiency ratio and provisions for credit losses are negatively and equity scaled by assets is positively related to profitability. However, these relationships either reverse (efficiency ratio and provisions for credit losses) or become insignificant (equity scaled by assets) when the target becomes change in profitability. The level of nonperforming assets is negatively related to profitability across all measures of profitability used. Macroeconomic variables are largely unrelated to profitability during the year they are measured. However, they have a significant relationship with earnings change measures, suggesting they have a lagged effect on profitability. The slope of the yield curve is especially strong in this regard.

We use our determinants to model changes in bank profitability one year ahead, in addition to including several factors not previously considered, using the predictive focus of the fundamental analysis research.

The governance structure of international franchise firms varies from higher control modes, such as wholly owned subsidiaries and joint venture franchising, to lower control modes, such as area development and master franchising. Based on organizational economics, strategic management, and international business perspectives, the purpose of this paper is to use the case study analysis to empirically evaluate an integrative model on the franchisor’s choice of international governance modes.

The study applies qualitative methods, such as in-depth case analysis, to investigate a large set of variables that influence the governance structure decision of the international franchise firm. Specifically, it applies a theory-testing case study with two major competitors in the European automotive rental industry, i.e. Europcar and Sixt. Theory-testing case research is justified by the lack of explanatory research due to the complexity of the franchisor-franchisee relationship phenomena, such as the factors that influence the franchisor’s choice of international governance modes. The investigation of the complex governance structure phenomenon requires a holistic analysis.

The case study shows that environmental, behavioral, transaction-specific, resource-based (system-specific, market-specific, financial resources), and international strategy considerations are important determinants of the governance mode decision of the international franchise firm.

The study responds to the recent call in organizational economics, marketing, strategic management, and international business literature to develop and test a multi-theoretical framework to explain the governance structure of inter-organizational networks, such as franchise networks.

Few previous studies in international franchising have used more than one theoretical perspective to explain the governance structure of the international franchise firm. This study contributes to the theory-testing case study literature by applying a rigorous method of conducting case research. This includes developing a theoretical framework and a systematic research design. A systematic research design requires a holistic analysis by investigating the international franchise governance modes from a variety of theoretical perspectives which are the organizational economics, strategic management, and the strategy-structure perspective.

The concept of switching costs or transaction‐specific investments has been widely used in theoretical models of industrial buyer‐seller relationships. Yet there are few empirical studies that have examined the dimensionality of switching costs. The purpose of this study is to investigate empirically the dimensions of switching costs. Different typologies, or dimensions, of switching costs are identified from a review of the literature. Measures of these dimensions are developed and empirically tested for construct and pragmatic validity using confirmatory factor analysis and structural equation modelling. Two switching cost dimensions are identified and validated: hard assets and soft assets.

The purpose of this paper is to examine the impact that three sets of variables – derived from transaction cost theory (TCT), the resource‐based view (RBV), and institutional environment – have on choice of entry strategies of multinational corporations (MNCs) from an emerging market.

The sample consisted of 819 Taiwanese firms which were investigated using a national survey, and logistic regression analysis was used for testing the hypotheses.

The empirical findings confirm that the following factors affect this decision: firm‐specific assets, international experience, whether a firm is investing abroad in pursuit of a particular customer, whether a firm seeks complementary assets abroad, and the perceived institutional differences (PEDs) between a firm's home country and the host country. The findings also suggest that PEDs have a moderating effect on foreign market entry.

As MNCs from emerging markets make the decision of entry mode strategies, they must carefully consider not only the related variables in terms of TCT and the RBV, but also the influence of institutional factors in host countries.

This paper explores the modes of entry chosen by Taiwanese firms investing in China on the basis of TCT, institutional environment, and the RBV.

The purpose of this paper is to examine how the convergence of private and public sector accounting standards is affecting conceptual and practical issues relating to heritage. More specifically, the paper is intended to provide a better understanding of the state of the art in national and international accounting standards on heritage assets, and of the views influencing such standards.

A qualitative documentary analysis is carried out to explore the variety of existing positions and views on heritage, ranging from the scholarly literature, through potential stakeholders and users, to international and national standard setters.

The analysis shows that the path of convergence between public and private sector standards and practices is still problematic. After more than two decades of debate around the nature, definition, measurement, and reporting of heritage, these issues are far from settled.

In the light of calls for increased measurement and reporting of public sector “assets”, and specifically for the definition of standards to recognise heritage, the paper suggests the need to strongly reconsider whether the convergence between public and private sector standards is desirable, feasible and effective. As such, the risks of embracing simplified or hybrid forms of accounting and reporting for heritage should be more seriously assessed. While reporting on heritage is important, it is fundamental to keep it distinct from reporting on government’s regular operations, in order to appreciate its specific value, nature and features.

Looking at European national standards for heritage, the IPSASB’s proposals, and the reactions to the latter by relevant stakeholders, the paper provides a pluralistic view on the positions and experiences about heritage, contributing to the debate on the convergence between private and public sector accounting standards.

The purpose of this paper is to analyse vertical integration in the rail sector using a combination of transaction cost economics (TCE), the resource-based view (RBV) and the relational view, through which rail wagons are viewed as “relationship specific assets”.

The empirical analysis is based on a cross-case comparison of four case studies of intermodal operators in Europe, each exhibiting different levels of collaboration and integration between terminals, operators and sub-contractors.

Viewing rail wagons as relationship specific assets rather than merely transaction specific (TCE) or firm specific (RBV) demonstrates that wagon ownership is not only a good indicator of the level of vertical cooperation but of the existence of trust and learning within a collaborative environment.

The organisational setup is not derived purely from transaction or resource characteristics, but by the integration of processes through the purchase of assets that will be used to produce a service, with the expected levels of trust and commitment. In this sense, the role of the wagon as a relationship specific asset is a microcosm of the key elements of a successful intermodal transport system.

As one of the key operational aspects of the rail sector is the use of expensive equipment and the relative responsibility for fixed and moveable assets, an analysis of the use of rail wagons as relationship specific assets allows a more dynamic understanding of vertical integration in the rail sector than currently provided by TCE or RBV alone.

The purpose of this research is to first examine whether the amount of impairment losses recognized by Thai listed firms is associated with the economic indicators suggested in the relevant accounting standard. Second, the study investigates whether efficiency versus opportunism dominates accounting for impairment by Thai listed firms.

The multiple regression model is used to test whether impairment indicators and reporting incentives associate with impairment losses for a sample of 1,418 non‐financial listed Thai companies during 1999‐2004.

Impairment losses are associated with all three levels (macro, industry, and firm‐specific performance measures) of impairment indicators described in Thai Accounting Standard (TAS) No. 36 (which is in accordance with the IAS No. 36). The results also reveal that management opportunistically recognizes impairment losses to smooth earnings when earnings increase. Inconsistent with Francis et al. and Riedl, the association between impairment losses and economic factors is relatively greater than that between impairment losses and reporting incentives behaviors.

This is the first study that provides empirical evidence for the indicators of assets' impairment prescribed in TAS/IAS No. 36. The results support the pre‐condition indicators for measurement of impairment losses under TAS/IAS No. 36 in the emerging Thai capital market. Further, efficiency is documented to dominate opportunism as the principal of Thai firms' accounting policy with respect to asset impairment.