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Might the impact of the financial stress on exchange markets be asymmetric and exposed to regime changes? Departing from the existing literature, highlighting that the domestic and foreign financial stress in terms of money market have substantial effects on exchange market, this paper aims to investigate the impacts of the bond yield spreads of three emerging countries (Mexico, Russia, and South Korea) on their exchange market pressure indices using monthly observations for the period 2010:01–2019:12. Additionally, the paper analyses the impact of bond yield spread of the US on the exchange market pressure indices of the three mentioned emerging countries. The authors hypothesized whether the negative and positive changes in the bond yield spreads have varying effects on exchange market pressure indices.

To address the research question, we measure the bond yield spread of the selected countries by using the interest rate spread between 10-year and 3-month treasury bills. At the same time, the exchange market pressure index is proxied by the index introduced by Desai et al. (2017). We base the empirical analysis on nonlinear vector autoregression (VAR) models and an asymmetric quantile-based approach.

The results of the impulse response functions indicate that increases/decreases in the bond yield spreads of Mexico, Russia and South Korea raise/lower their exchange market pressure, and the effects of shocks in the bond yield spreads of the US also lead to depreciation/appreciation pressures in the local currencies of the emerging countries. The quantile connectedness analysis, which allows for the role of regimes, reveals that the weights of the domestic and foreign bond yield spread in explaining variations of exchange market pressure indices are higher when exchange market pressure indices are not in a normal regime, indicating the role of extreme development conditions in the exchange market. The quantile regression model underlines that an increase in the domestic bond yield spread leads to a rise in its exchange market pressure index during all exchange market pressure periods in Mexico, and the relevant effects are valid during periods of high exchange market pressure in Russia. Our results also show that Russia differs from Mexico and South Korea in terms of the factors influencing the demand for domestic currency, and we have demonstrated the role of domestic macroeconomic and financial conditions in surpassing the effects of US financial stress. More specifically, the impacts of the domestic and foreign financial stress vary across regimes and are asymmetric.

This study enriches the literature on factors affecting the exchange market pressure of emerging countries. The results have significant economic implications for policymakers, indicating that the exchange market pressure index may trigger a financial crisis and economic recession.

The purpose of this study was to gain a deeper understanding of the selection criteria used in preincubation programs. Particular focus has been placed on examining the exclusive and inclusive nature of these criteria, and how they relate to both egalitarian and utilitarian considerations.

The study used two data sources: archival available online data and semi-structured interviews. Forty-nine preincubation programs were examined, with 19 representatives interviewed. The data was analyzed using content analysis to understand the access and selection criteria applied at the preincubation stage.

The goals of preincubation programs vary, including developing students’ competencies, creating new companies or achieving the goals of the corporation that sponsored the program. preincubation programs use three levels of selection criteria, including entry criteria, the potential of the submitted idea and team and the personal characteristics and competencies of the applicants. The entry criteria varied across programs, with some programs being open only to university employees and students, while others were open to the public. The study found that the majority of preincubation programs used a combination of both egalitarian and utilitarian motivations in their selection criteria.

The criteria used to evaluate applications flowing into preincubation should be strongly related to the goals that preincubation is supposed to achieve. It is essential to consider that, contrary to previous knowledge, this process is not only aimed at supporting the creation of new businesses.

To the best of the author’s knowledge, this is the first study that analyzes the approach to selection criteria in preincubation programs with such diverse goals and in different countries as well as expanding the understanding of the criteria used at different stages of the incubation process and relating to the inclusiveness in entrepreneurship.