Search results

A quarter of a century has passed since Stonehill and Nathanson (1968) surveyed multinational companies to determine their foreign capital budgeting practices. Since then, research has not only refined its theoretical base on this subject but also expanded the knowledge of actual practices by multinational companies. This article summarizes the findings of major multinational capital budgeting studies for the last 25 years to ascertain whether companies followed theoretically prescribed approaches. Then, it suggests further research to advance the knowledge on this subject.

The purpose of this study is to examine the capital budgeting strategies that are used by foreign subsidiaries of U.S.‐based multinational enterprises. While the results indicated a preference for sophisticated capital budgeting techniques as the primary method of analysis, the actual use of sophisticated capital budgeting techniques by foreign managers may not be as widespread as expected by financial theorists. Although it was found that certain environmental and company‐specific factors influenced the level of sophistication of capital budgeting practices used by U.S. foreign subsidiaries, the associations were small and had only minor explanatory significance. The results showed that foreign subsidiaries exposed to high levels of political and financial risk tended to use sophisticated capital budgeting strategies. Subsidiaries characterized by high levels of financial leverage and high cost of capital requirements also employed advanced capital budgeting strategies. Multinational enterprises (MNEs) have many options available to them in terms of how they manage their foreign subsidiaries. Traditionally, most major policy decisions were made at the parent firm's headquarter office while foreign subsidiaries had few opportunities to influence major corporate decisions. Today, more companies are using a flexible approach which involves setting strategic goals at the home office and allowing local managers to implement their own specific policies. An important question in this study involved determining how effective local foreign managers were in implementing their capital budgeting processes. As U.S.‐based MNEs continue to expand their operations abroad, there is an increased need to examine which financial decision models are actually used by subsidiary managers to deal with the increased complexity of investing in foreign countries. Unlike traditional capital budgeting analysis, international analysis is a considerably more complex process. These complexities occur for a number of reasons including complicated cash flows estimates, changes in foreign exchange rates, different accounting systems, potential for blocked funds, and political risk considerations. These factors are rarely experienced by traditionally domestic U.S. firms. To maintain a competitive edge, MNEs must continue to use the most efficient approaches available to them. This study provides a detailed analysis of the capital budgeting practices that are actually being used by foreign subsidiaries of U.S.‐based MNEs. The paper is organized in the following manner. Section I provides a brief overview of the theoretical and practical issues of international capital budgeting analysis. Section II focuses on the areas of data collection, questionnaire design, and environment‐specific and company‐specific factors. Section III discusses usage of capital budgeting techniques, adjustment and assessment of project risk, and factors influencing capital budgeting policies. The final section presents some findings from this study.

This paper explores the major factors influencing multinational companies’ (MNCs) propensity to change the level of resource commitments during financial crises in emerging markets. Favorable changes in the host government policies, market demand, firm strategy, and infrastructural conditions are hypothesized to influence the MNCs’ decision to increase resource commitments during a crisis. The hypotheses are tested with data collected in a survey of 82 MNCs during the recent Argentine financial crisis (late 2002). While all the above variables are considered by the respondents as generally important reasons for increasing resource commitments during a crisis, only favorable changes in government policies significantly influence MNCs’ decisions to change the level of resource commitments during the Argentine financial crisis. The research, managerial implications, and policy‐making implications are discussed.

In response to a call for more research on the “why” of capital budgeting practices, a survey was sent to the Fortune 500 firms to (1) look at the detailed reasons they used particular capital budgeting techniques, (2) to determine if and why they had changed their emphasis on any of those techniques in the last five or ten years, and (3) to explore the importance of strategic considerations in capital budgeting. Detailed reasons and their rankings are given for the choices of payback, discounted payback, accounting rate of return, internal rate of return, modified internal rate of return, profitability index, net present value, and other miscellaneous techniques.

Large French banks have restructured over the last two decades responding to the evolution of the French banking system, European union integration, and globalization. Using financial time‐series and cross‐sectional data of three major French banks (Societe Generale, BNP Paribas, and Credit Lyonnais) from 1993 to 1999, this paper analyzes their performance. Our findings indicate that the French banks’ performance (return on equity capital ratio) was influenced negatively by total assets, the efficiency ratio, the Tier‐1 capital ratio, and loan loss provisions, but not at all influenced by non‐interest income (contrary to our hypothesis). When the French banks were compared their global counterparts, common factors explaining the performance of these banks are efficiency and total assets in at least 3 of the 6 countries.

This empirical research conceptualises the impact of celebrity effectiveness on consumer purchase intention, with customer perception and attitude as mediators. A cross-cultural approach is adopted to analyse consumer response to celebrity branding across Britain and Pakistan containing non-explicit and explicit sex appeals.

A within-subject experimental design (2 countries × 2 ad designs) is employed to test the research model across Western and South Asian cultures. Structural equation modelling (SEM) and multi-group analysis (MGA) are used to test proposed hypotheses.

SEM results confirm the theoretical model: perception and attitude towards the advert and brand mediate the impact of celebrity effectiveness on purchase intention. Celebrity-endorsed advertising without explicit sex appeals elicited an overall favourable response across markets. British consumers respond to both adverts similarly. Yet, Pakistani consumers filter advert themes through salient cultural values and respond negatively to explicit sex appeals whilst, interestingly, accepting sexuality in associations of a celebrity endorser.

International celebrities can have cross-cultural appeal, and commonalities exist between the markets. A global or domestic marketing strategy can be utilised across the cultures based upon the environmental conditions and the themes and appeals incorporated within advert design.

The conceptual model is developed by consolidating existing models within celebrity endorsement and considering the mediating influence of both the advert and brand. The model is validated across theoretically different cultures. The comparative approach and selection of an underrepresented market provide novel insight into international branding strategies and global consumer culture.

Infrastructure construction has experienced significant recent advances in automation. Such advances will only accelerate in the future. They are founded on enabling technologies such as positioning systems, advanced control methods, and graphical interfaces. This paper begins by describing the relevance of these enabling technologies to automation in infrastructure construction. It then focuses on classes of applications, including earth moving, compaction, road construction and maintenance, and trenchless technology. Because of the less regulated, relatively repetitive, and well‐financed nature of such work, it is likely to experience quicker progress than other application domains.

This paper aims to critically investigate the past hype of internationalization of higher education institutions (HEIs) and its complex international, national and local processes under the influence of globalization.

In particular, the authors employed the knowledge–policy–power interface framework through a scoping review in order to reexamine the political dynamics among international, national and local higher education actors in driving the internationalization of HEIs in the context of South Korea between the 1990s and the 2020s. The perspective taken by this research brings much-needed nuance to the analysis by focusing on the complex dynamics of external factors and key actors and their responses in the process of internationalization.

This research found three characteristic dynamics of internationalization of Korean HEIs: uncritical acceptance of external pressures for internationalization; unbalanced formal and informal participation at the national level and different ways HEIs absorb change. In short, this research discussed how the powerful government, which has been stirred by external forces, shaped the limited knowledge discourse on internationalization while triggering power games among various HEIs. The research highlights that the characteristics of HEIs and the voices of all stakeholders should be better accounted for so that internationalization can proceed in diverse ways from the ground up to enhance and assure educational quality.

The research limits itself by analyzing the political dynamics in driving the internationalization of HEIs in the context of South Korea only through scoping review. However, the attempt to disentangle the underlying political dynamics through its original framework is worthy unlike previous more traditional models that cast policy-making as a uniform cycle proceeding rationally through the policy process regardless of the issue.

These findings enable a better analysis of the key dynamics of how HEI internationalization policies in Korea were understood, planned and implemented. Without examining the political dynamics among various factors as well as the responses of significant actors to HEI internationalization, the current challenges and remaining tasks in translating higher education policy into practice cannot be thoroughly assessed.

Most importantly, the multilayered political dynamics that come together to shape the content and directions of policies in a certain national context should be taken into account in the process of policy-making. Such recontextualization would provide a better understanding of the underlying dynamics that lead to certain consequences of and challenges in translating higher education policy into practice, especially for those who face the challenge of balancing between state-driven policies and ever-diversifying needs and demands of HEIs.

As there is a lack of understanding of the critical context of the knowledge–policy–power interface despite the significant influence of political dynamics in the process of internationalization, this research reexamined the internationalization of HEIs in Korea by providing a better understanding of the political dynamics between knowledge and power that influence the directions and contents of policy dialogues and documents.

This article examines the rhetoric of recent civil service reform measures in Korea, their initial implementation, and growing concerns about their sustainability. Civil service reform in Korea was initiated by an enthusiasm for New Public Management (NPM) and public calls for reform. The changes initiated by the Korean Civil Service Commission and other government organizations have sought to encourage openness, competition, flexibility, diversity, and performance-based management. Despite the bold rhetoric heralding the reform initiatives, outcomes have fallen short of expectations, and many civil servants are losing their confidence and esprit de corps. Considering both the initial promise and the ultimate reality of Korean civil service reform, this article investigates problems and limitations confronting the sustainability of these reform measures

This paper examines the impact of the assassination of Mexico’s leading presidential candidate on Mexican Brady bonds and its spillover effects to other emerging financial markets. On the day of the assassination, Mexican Brady bonds declined by a significant 0.97 percent and continued to experience significant declines over the following three trading sessions. However, with the naming of Ernesto Zedillo as the ruling party’s presidential candidate, Mexican Brady bonds recovered over 75 percent of the losses incurred during the previous four trading days. The assassination did not significantly affect other emerging financial markets. The availability of a $6 billion swap facility, holding of large foreign reserves, selection of Ernesto Zedillo, and well managed responses by the Mexican government all served to attenuate spillover effects from the Mexican political crisis.