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1 – 10 of over 63000Sruthi Rajan and Shijin Santhakumar
The innovations in fundamentals coupled with noise traders induce co-movement in diverse markets. This co-movement in equity markets which is evidenced higher during the turmoil…
Abstract
Purpose
The innovations in fundamentals coupled with noise traders induce co-movement in diverse markets. This co-movement in equity markets which is evidenced higher during the turmoil period influences economic fundamentals of a country dissimilar in nature. The purpose of this paper is to examine whether economic fundamentals or investors’ behavior attributable to disturbances across the world are the rationale behind the crisis transmission, and thereby distinguish fundamental-based contagion from investor-induced contagion.
Design/methodology/approach
Initially, the study investigates the role of macroeconomic fundamentals and stock returns on crisis occurrence using panel probit estimates. Additionally, ordinary least squares estimates controlling the influence of fundamentals on domestic return capture the discrete country effect measuring the influence of domestic as well as foreign economic fundamentals along with foreign returns on the domestic stock index.
Findings
The empirical results reveal that foreign country stock index returns are having a significant influence on domestic returns besides a prominent role in crisis occurrence. The binary probit model confirmed the influence of both macroeconomic factors and foreign returns in crisis occurrence. The OLS estimates found evidence for investor-induced contagion in the crisis period where the effects of economic fundamentals are small in comparison to foreign market returns that are mainly dominant in pre- and post-crisis period.
Research limitations/implications
The propagation of crisis from one market to other would enable the policy makers to make clear regulations at right time to control for the crisis in future. The results can help the policy makers as well as investors in reducing the impact of the crisis in future by clearly monitoring the behavior of the factors under study.
Originality/value
The current study addresses the role of macro fundamentals and investors influence in crisis propagation. Adopting subprime crisis of 2008-2009 as a reference point and separating the sample period into pre-crisis, crisis and post-crisis period, the study explains how badly the other 30 markets impacted the crisis that emerged in the USA.
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Wei Li and Zhichao Zhang
The purpose of this paper is to explore in depth the impact and transmission mechanism of different international capital flows on domestic employment and wages in China within a…
Abstract
Purpose
The purpose of this paper is to explore in depth the impact and transmission mechanism of different international capital flows on domestic employment and wages in China within a systematic framework; also to reveal whether the empirical results can confirm the basic model inferences.
Design/methodology/approach
Using dynamic economic model and empirical experiment, this study designs and conducts the analysis within a systematic framework. The authors acquire the needed and credible empirical data.
Findings
The international capital inflows will increase the average wage level, and the international capital outflows will significantly reduce the level of domestic wages. The unofficially recorded capital flows would appear negatively related to the domestic wages. Due to the complexities of relevant elements, the impact of different international capital flows on domestic employment is of insignificance. It is noteworthy that the impact of international capital flows on the average wage changes of different provinces will tend to converge to a certain extent.
Practical implications
The results have reflected that the capital flows between the different provinces have no obvious frictions and barriers.
Originality/value
The paper explores in depth the impact and transmission mechanism of different international capital flows on domestic employment and wages within a systematic framework. The empirical analysis related to the China different provinces is an exploratory experiment.
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Ankur Srivastava, Nitin Gupta and Nripendra P. Rana
This study investigates the role of consumer cosmopolitanism on consumer attitudes and purchase intentions (PIs) towards foreign and local brands.
Abstract
Purpose
This study investigates the role of consumer cosmopolitanism on consumer attitudes and purchase intentions (PIs) towards foreign and local brands.
Design/methodology/approach
The responses were collected on a structured questionnaire through a consumer survey. The data were then analysed through structural equation modelling (SEM).
Findings
The results depict the positive influence of consumer cosmopolitanism on consumer attitudes towards foreign brands, which positively influences PIs towards foreign brands and negatively influences the PIs of local brands. Further, the mediating role of perceived quality was observed in explaining the consumer preference towards foreign and domestic brands.
Practical implications
Finally, the study concludes by providing implications for marketing scholars and managers of global and local brands.
Originality/value
The paper examines the underlying mechanisms related to consumer cosmopolitanism and its role in influencing the foreign and local brand purchase.
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This paper considers the influences that have shaped local domestic violence policy and how this has affected police practice in one English police force.
Abstract
Purpose
This paper considers the influences that have shaped local domestic violence policy and how this has affected police practice in one English police force.
Design/methodology/approach
The research in this paper is based upon theoretical concepts of central government and local accountability over policing; policy making and implementation; and pressure group influence. Documents issued to local police forces from Central Government were examined and compared to local policy documents to assess their affect over local police policy. Using a structured format, senior managers were interviewed to gain their impressions of these influences. Views of ground level staff were obtained through postal questionnaires.
Findings
This paper finds public opinion and pressure from academic research upon Central Government has resulted in a very strong central influence over local police policy and practice. Police officers believe that these influences have had a major affect upon the way that they respond to domestic violence issues at a local level, to the point where both managers and front line police officers believe that their discretion in dealing with these issues has been curtailed, and that top down control over police practice has increased. Police attitudes towards policing domestic violence are more enlightened than they once were.
Originality/value
This paper examines the opinions of both senior local police policy makers and front line policy implementers and will be of value to those interested in the policing of domestic violence issues.
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Olawumi Fadeyi, Stanley McGreal, Michael J. McCord, Jim Berry and Martin Haran
The London office market is a major destination of international real estate capital and arguably the epicentre of international real estate investment over the past decade…
Abstract
Purpose
The London office market is a major destination of international real estate capital and arguably the epicentre of international real estate investment over the past decade. However, the increase in global uncertainties in recent years due to socio-economic and political trends highlights the need for more insights into the behaviour of international real estate capital flows. The purpose of this study is to evaluate the influence of the global and domestic environment on international real estate investment activities within the London office market over the period 2007–2017.
Design/methodology/approach
This study adopts an auto-regressive distributed lag approach using the real capital analytics (RCA) international real estate investment data. The RCA data analyses quarterly cross-border investment transactions within the central London office market for the period 2007–2017.
Findings
The study provides insights on the critical differences in the influence of the domestic and global environment on cross-border investment activities in this office market, specifically highlighting the significance of the influence of the global environment in the long run. In the short run, the influence of factors reflective of both the domestic and international environment are important indicating that international capital flows into the London office market is contextualised by the interaction of different factors.
Originality/value
The authors provide a holistic study of the influence of both the domestic and international environment on cross-border investment activities in the London office market, providing more insights on the behaviour of global real estate capital flows.
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Rosa Portela Forte and Sérgio Carvalho
The purpose of this study is to analyze the influence of the firms' external environment on their export intensity. More specifically, it assesses whether domestic market…
Abstract
Purpose
The purpose of this study is to analyze the influence of the firms' external environment on their export intensity. More specifically, it assesses whether domestic market characteristics such as domestic demand and general export environment related to tradability across borders affect firms' export intensity.
Design/methodology/approach
The authors use a sample of 29,266 firms from nine European countries, for the period of 2010–2016, and test several estimation methods (random effects models, Tobit models, and Heckman's selection models).
Findings
Results show that external factors such as domestic demand and ease of trade across borders are important determinants of firms' export intensity. Moreover, results reveal that firm's internal characteristics such as age, size and productivity also play an import role.
Originality/value
Studies about the influence of the firms' external environment on firms' export intensity are scarce because most of them are confined to a single country context. In this way, the present study contributes to the body of knowledge on the influence that external factors can have on firms' export performance by analyzing firms from nine European countries, which has important policy implications.
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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…
Abstract
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.
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Jung Suk Kim, Bomin Ko, Yoon Heo and Jee Hoon Lee
The purpose of this paper is to assess the current state of Korea’s internal negotiation system and the role of domestic policy factors in the process of Korea’s joining the mega…
Abstract
Purpose
The purpose of this paper is to assess the current state of Korea’s internal negotiation system and the role of domestic policy factors in the process of Korea’s joining the mega FTAs such as Trans-Pacific Partnership (TPP).
Design/methodology/approach
Along with Putnam’s three determinants of win-set size, the authors analyze a new set of policy factors – including Trade Adjustment Assistance (TAA), the FTA Domestic Planning Division, and the Trade Procedure Act – to examine the institutional arrangements available for the ratification of the TPP in Korea.
Findings
To minimize the social cost of the internal negotiation process of the trade, better understanding of the role of domestic policy factors is essential. The paper proposes some important policy suggestions which will scale up the benefit of the trade.
Research limitations/implications
The very same analysis can be easily extended to examine the domestic reactions for future FTA negotiation, especially for Mega FTA negotiation.
Practical implications
The authors propose six policy suggestions: a Master Process Manual; measures to diagnose domestic reactions; emphasizing non-economic issues; strengthening human resources; considering the strategic role of the Trade Procedure Act; and reshaping TAA, to ensure that a tranquil environment exists for domestic negotiation and confirmation and the authors believe these policies can be implemented widely in trade negotiations.
Originality/value
This paper contributes to the existing literature in at least three respects. First, the authors made the first attempt to integrate the domestic policy tools with the domestic determinants of trade negotiation outcomes. Second, the policy proposals can be extended to other countries’ cases with a minor adjustment. Finally, the analysis is based on the assumption that international trade negotiations are multi-level frameworks where domestic influences play a vital role in the aftermath of bilateral FTAs.
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Abstract
Purpose
Prior studies have argued that multinational firms with dynamic capabilities can reconfigure and upgrade their internal and external resources and adapt to an ever-changing competitive global environment. The impact of home country networks exerting on multinational corporations’ (MNCs) dynamic capabilities has been rarely discussed in extant research. This paper aims to explore how two types of home country networks’ relational embeddedness (from domestic firms and foreign firms) affect Chinese MNCs’ dynamic capabilities.
Design/methodology/approach
Several hypotheses were tested by analyzing the survey data from 204 multinational companies in china.
Findings
The results reveal the impact mechanism of the home country network on dynamic capabilities. Embeddedness in domestic networks positively affects embeddedness in the foreign network; embeddedness in foreign firms exerts positive effects on the three dimensions of MNC’s dynamic capabilities. Additionally, the effect of domestic firms’ relational embeddedness on resource reconfiguring capability is mediated by foreign firms’ embeddedness. Consequently, this study provides a theoretical introduction for MNCs from emerging economies.
Practical implications
This study has several managerial implications for emerging MNCs’ international operations. For MNCs from emerging economies, close cooperation with domestic firms helps firms to develop a close relationship with foreign firms; meanwhile, developing a close relationship with foreign firms can obtain spillover about technology and management experience better, improving dynamic capability. Specifically, domestic embeddedness, through foreign embeddedness, can extend the impact to focal firms in developing resource reconfiguring capability.
Originality/value
This study provides an alternate view of how home country networks influence the dynamic capabilities of Chinese MNCs and outlines its impact mechanism. Therefore, the study contributes both to the international business literature and social network literature.
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Luccas Assis Attílio, Joao Ricardo Faria and Mauricio Prado
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Abstract
Purpose
The authors investigate the impact of the US stock market on the economies of the BRICS and major industrialized economies (G7).
Design/methodology/approach
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. Global vector autoregressive (GVAR) empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
Findings
The authors summarize the results in four points: (1) financial integration variables increase the effect of the US stock market on the BRICS and G7, (2) the US shock produces similar responses in these groups regarding industrial production, stock markets and confidence but different responses regarding domestic currencies: in the BRICS, the authors detect appreciation of the currencies, while in the G7, the authors find depreciation, (3) G7 stock markets and policy rates are more sensitive to the US shock than the BRICS and (4) the estimates point out to heterogeneities such as the importance of industrial production to the transmission shock in Japan and China, the exchange rate to India, Japan and the UK, the interest rates to the Eurozone and the UK and confidence to Brazil, South Africa and Canada.
Research limitations/implications
The results reinforce the importance of taking into account different levels of economic development.
Originality/value
The authors construct the world economy and the vulnerability between economies using three economic integration variables: bilateral trade, bilateral direct investment and bilateral equity positions. GVAR empirical studies usually adopt trade integration to estimate models. The authors complement these studies by using bilateral financial flows.
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