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The purpose of this paper is to explore location effects on firm performance in emerging economies simultaneously accounting for permanent and transitory country, industry, country-industry and firm-specific effects.

The authors utilize a novel methodological approach: an autoregressive, cross-classified, mixed-effect linear regression model that allows them to simultaneously estimate a permanent (long-run) component, a transitory (short-run) component and the speed of decay of the transitory (autoregressive) component.

The authors find that the firm-specific effect is most important in explaining permanent and transitory differences. The country–industry interaction is the second most important effect, confirming that industries are not completely global and are still subject to country conditions. Broader views of the country–business context and industry conditions taken independently would be incomplete unless the country–industry interactions are considered. In other words, country matters because industry matters and vice versa. Country effects are also significant, but only transitory emphasizing the dynamic nature of emerging economies and the shortcomings that may result from considering the country business context static. Finally, the authors find that the chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

To the authors' knowledge, this is the first to simultaneously estimate country, industry, country–industry and firm effects on the permanent and transitory components of abnormal returns in a sample of emerging economies. The study generates important evidence regarding the sources of sustainable differentiation for firms competing in emerging economies. Finally, the authors find that chances of achieving sustainability of abnormal returns in emerging economies are dynamic and have significantly increased recently.

This study examines the effect of public debt on the economic growth of OECD countries by disentangling the effect into permanent and transitory components. The study covers 37 OECD countries.

The Mundlak decomposition was employed to decompose the effect of public debt into its transitory and permanent effect on economic growth. To account for potential endogeneity problem, the Hausman and Taylor estimator was employed to estimate the decomposed model. Further, the study disaggregated the OECD model into country group models for further analysis of the dynamics of the relationship between the variables.

The findings of the study reveal that in the full OECD model public debt exerts a significant negative permanent and positive transitory effect on economic growth. This was robust to alternative model specifications. The magnitude of the negative permanent effect of debt was found to be larger than the positive transitory effect. Further, the estimates of the disaggregated models reveal that though public debt has a negative permanent effect across all the country groups, it was not the case for the transitory effect of debt. Also, a net public debt model was estimated, and its effect on public debt was found to be largely insignificant, exhibiting a Ricardian-like behaviour.

To the best of our knowledge, this is the first study, particularly in the OECD context that employed the Mundlak transformation to examine the permanent versus transitory effect of public debt on economic growth.

The proliferation of terror threats in the past decades and the increasing number of terror incidents at different locations around the world have engendered a counter reaction from the members of the international community. This study aims to examine how terror incidents that happened over the past decade have affected the capital markets of the targeted countries and whether the effect was permanent or transitory.

To examine the incident’s effect, the study uses the TI (variable) index – a measure of pessimism with values ranging from 5 to 16 – for four days around a terrorist incident. By using this index, this study can reflect the investors’ level of pessimism resulting from the intensity of the terrorist incident. Five parameters that have a major influence on the incident’s severity have been used to construct the index.

By using the terror index, terror incidents were analyzed in four main tests. The results point at the following conclusions: There is a correlation between the yield index on the day of a terror incident and the two following work days. There is a negative correlation between the severity of the event and the yield indices. On the day of the terror incident, there is no difference in yield indices between large and small countries and between democratic and authoritarian countries. Developing countries, however, show a steeper decline than developed countries. In larger and developed countries, terror incidents are permanent, whereas in democratic countries, they are transitory.

This study investigates the effect of terrorism on the stock markets of different countries with relation to the country’s size, type of regime and level of development. The work is based on a unique sample of terror attacks. The study offers a quantitative index to measure the level of pessimism that contains different components of an incident, such as the location of the incident and the type of terrorism.

The assignment of targets to instruments in developing countries cannot satisfactorily follow any simple universal rule. Which approach is appropriate is influenced by whether the economy is dominated by primary exports, by the importance of the domestic bond market and bank credit, by the extent of existing restriction in foreign exchange and financial markets, by the presence or absence of persistent high inflation, and by the existence or non‐existence of an active international market in the country's currency. Eighteen observations and maxims on stabilisation policy are tentatively drawn (pp. 64–8) from the material reviewed, and the maxims are partly summarised (pp. 69–71) in a schematic assignment, with variations, of targets to instruments.

The purpose of this paper is to investigate credit rationing across firms in euro zone countries, as it relates to its own sovereign credit ratings.

The authors utilize firm-level data from the Survey on Access to Finance of Enterprises for the period 2009-2013 conducted by the European Central Bank.

A negative association between the rating of sovereign creditworthiness and credit rationing is identified, while credit rationing varies substantially even among countries with the highest quality of sovereign bonds. Credit rationing is lower in sovereigns with high-quality ratings and higher in sovereigns near default. These results remain intact when fundamental firm characteristics (e.g. firm’s age and size, sector of economic activity, financial situation, etc.) are taken into consideration. This indicates that the interconnection of sovereign debt risk with domestic credit market outcomes is robust.

The present study contributes to the relevant literature by performing a detailed analysis of credit rationing for euro zone SMEs and by exploring the link between sovereign credit rating and credit rationing during the sovereign debt crisis period.

The overall purpose of this paper is to explore the limits of HRM in public sector organisations, within the context of international public management. The cultural basis of HRM, derived chiefly from North America and Western Europe continues to underpin public sector HR reforms, aided and abetted by the international institutions. The paper seeks to begin with an overview of the impact of wider public sector reform on HR practice by briefly exploring the limitations of orthodox HRM in a public service setting. However, the main argument of the paper aims to follow the conceptual position that an understanding of the institutional and cultural contexts is required before attempting HRM‐type reforms.

The author visited the Republic of Georgia in 2008 to work with the Public Service Commission on HRM reforms in central government. Thus, the paper presents the illustrative case of Georgia, which is both a transitional state and susceptible to Western ideas regarding public service reform. The case of Georgia is derived from observation, documentary analysis and correspondence from the Georgian Civil Service.

The paper found that, despite the acceptability of HRM and the desire by public officials to promote HRM‐based reforms, deep politicisation of the administrative system provided considerable implementation problems.

These took the form of lack of academic literature on Georgia, lack of resources to conduct further in‐depth interviews with key officials and difficulty of applying HR to the public sector in post‐Communist/transitory countries

The findings suggest that alternative approaches to HRM reform will be required in similar institutional contexts to that of the Republic of Georgia.

The paper challenges the popular notion of international convergence around “universally applicable” models of HRM in countries such as the Republic of Georgia, where the post‐Soviet legacy provides significant resistance to any reform momentum, HRM‐based or otherwise.

The paper presents a sequential approach regarding the environmental management in the coal basin of the Jiu Valley. Mining activity in the Jiu Valley has an important impact both in environmental and socio‐economic terms. The main problem these days is identifying the correct and significant impacts of the mining activity, defining also the ways to mitigate and monitor the process associated with coal extraction. Romania, a country experiencing a lack of tradition regarding very strict environmental legislation, has made important efforts in focusing, identifying and possibly resolving the environmental problems associated with mining activity, particularly coal mining in the Jiu Valley. The paper also presents some western European regulations adapted to the specific conditions in a country with a transitory state of the economy.

The purpose of this paper is to examine the effects of institutional factors and the European Union (EU) accounting harmonization on the value‐relevance and comparability of dirty surplus accounting flows (DSFs) in the member countries throughout the period 1993 to 2002.

The returns‐earnings models and fixed‐effect operating income growth models are used to examine the differences in the incremental and relative relevance of DSFs between countries which have a piecemeal system of regulation with significant input from the profession and/or market participants, and the code law countries with the government being the most important institution with regard to accounting regulation. Moreover, the relevance of DSFs in the three sub‐periods is compared, each reflecting quite distinct attitudes in the EU towards international accounting harmonization.

DSFs are incrementally relevant in Denmark, Finland, Ireland, Sweden and the UK, where equity market plays an important role in the country's financing system; and in comparison to comprehensive income, reported income is a dominant measure of performance in most European countries, with the exception of the five afore‐mentioned countries. There is also evidence that cross country differences in the value‐relevance and predictability of DSFs decrease in the later years of this sample period.

Future research focusing upon the specific accounting changes made by companies in the EU is needed for a better understanding of the relative importance of stock market integration and standard setting changes in explaining the characteristics of DSFs.

The results indicate that the convergence in the reporting of DSFs over time is driven by global capital market integration, and more importantly, the accounting harmonization activities carried out via self‐regulation with significant input from the profession and/or market participants at national level.

The paper seeks to explore, firstly, the extent to which differences in the reporting of DSFs across the EU may be explained by institutional differences. Secondly, it explores whether or not differences across the countries have decreased in three phases of the EU harmonization process.

This paper aims to investigate the decisions of listing for Vietnamese banks and the impact of listing on bank performance.

A longitudinal data set of 30 commercial banks in the period of 2006–2018 with various univariate and multivariate tests is used.

This study found that listing is positively associated with bank profitability. The results are consistent even after the control for potential endogeneity problems by propensity score matching methodology and Heckman selection bias models. Further analysis suggests some new alternative channels for the positive impact, namely, the increased quality of information disclosure, technological development and income diversification of commercial banks after listing.

Hence, this paper provides recommendations and policy implications for regulatory bodies regarding the listing of commercial banks in Vietnam.

The contributions to the literature are three-folds. First, this study contributes to a strand of literature on the impact of going public [initial public offering (IPO)/listing] of financial institutions on their performance. While the literature on non-financial firm performance post-going public is ample, few have directly considered the IPO/listing of banks and other financial institutions. Second, in further looking at the impact of listing on bank performance, this study also sheds some light on the new possible channels of the effect and provides evidence of new channels. Then, last but not least, the case of Vietnam could possibly yield interesting results for a transitory stock market. From the evidence, the recommendations and policy implications for a listing of Vietnamese banks are provided.