Portfolio Optimization and Diversification in China: Policy Implications for Vietnam and Other Emerging Markets

Anastasia N. Stepanova - National Research University The Higher School of Economics, E-mail: [email protected] Anna Alexandrovna Tereshchenko - National Research Institute "Higher School of Economics R&D projects in the pharmaceutical industry are extremely risky and bring benefits in the long-run period. Self-interested managers try to avoid risk and underinvest in R&D. In this paper we study the effect of independent directors, insider ownership and scientific connections on R&D investments. Independent directors and insider ownership can mitigate the agency problem by additional monitoring and convergence of interests. Scientific collaboration promote technological development and increase R&D. The research reveals the difference of the effects in emerging and developed markets.In emerging markets theproportion of independent directors is positively connected with R&D investments. Such results can be explained by the fact that independent directors monitor risk-averse managers that underinvest in risky but perspective projects. Scientific connections significantly positively influence R&D investments. Empirical evidence also shows that companies with a higher proportion of independent directors have more collaborations with scientific institutions in emerging markets. Insider ownership also has no significant influence on R&D investments. Such a result can be explained by the fact that not all the insiders can influence the investment process. Moreover, beneficial owners can lack industry specific knowledge that allows them to monitor the process. In developed markets the situation is different. The proportion of independent directors is associated with lower R&D investment intensity. As R&D investments are extremely high in developed markets, we suppose that the overinvestment problem can exist. Thus, better corporate governance can decrease the investments closer to an optimal level. Scientific connections and insider ownership are not a significant factor. The research has wide policy implications. The results can be used by shareholders and government regulating institutions in creating optimal management structures.

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Air Pollution and Health Studies in China—Policy Implications

Journal of the Air & Waste Management Association ◽

10.1080/10473289.2011.604288 ◽

2011 ◽

Vol 61 (11) ◽

pp. 1292-1299 ◽

Cited By ~ 24

Author(s):

Bingheng Chen ◽

Haidong Kan ◽

Renjie Chen ◽

Songhui Jiang ◽

Chuanjie Hong

Keyword(s):

Air Pollution ◽

Policy Implications ◽

China Policy ◽

Health Studies

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An impact assessment of disaster education on children’s flood risk perceptions in China: Policy implications for adaptation to climate extremes

The Science of The Total Environment ◽

10.1016/j.scitotenv.2020.143761 ◽

2021 ◽

Vol 757 ◽

pp. 143761

Author(s):

Shuang Zhong ◽

Qiu Cheng ◽

Shuwei Zhang ◽

Cunrui Huang ◽

Zhe Wang

Keyword(s):

Impact Assessment ◽

Flood Risk ◽

Risk Perceptions ◽

Climate Extremes ◽

Policy Implications ◽

China Policy ◽

Disaster Education

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Downstream oil supply security in China: Policy implications from quantifying the impact of oil import disruption

Energy Policy ◽

10.1016/j.enpol.2019.111077 ◽

2020 ◽

Vol 136 ◽

pp. 111077 ◽

Cited By ~ 4

Author(s):

Meng Yuan ◽

Haoran Zhang ◽

Bohong Wang ◽

Liqiao Huang ◽

Kai Fang ◽

...

Keyword(s):

Policy Implications ◽

China Policy ◽

Oil Supply ◽

The Impact

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An integrated-dynamic mode of entry model: global MNEs entering into emerging markets

Review of International Business and Strategy ◽

10.1108/ribs-04-2019-0046 ◽

2020 ◽

Vol 30 (1) ◽

pp. 97-107 ◽

Cited By ~ 3

Author(s):

Bolortuya Enkhtaivan ◽

Zagdbazar Davaadorj

Keyword(s):

Emerging Markets ◽

Conceptual Model ◽

Emerging Market ◽

Integrated Approach ◽

Policy Implications ◽

Dynamic Mode ◽

Content Type ◽

Mode Of Entry ◽

Entry Model

Purpose The purpose of this paper is to develop a conceptual model for the mode of entry in a particular case of global MNEs entering into emerging markets. Design/methodology/approach The conceptual model builds on institutional theory and follows an integrated approach of entry mode theories using bargaining theory, the liability of foreignness and local legitimacy. Findings The conceptual model introduces five propositions. Research limitations/implications The study has policy implications for emerging market institutions. Also, the model highlights the significance of long-term vision in global MNEs’ sustainability. However, the model excludes the MNEs’ internal institutions, home country institutions, as well as institutional and cognitive distances. Originality/value The conceptual model addresses the dynamics of MNEs’ entry decisions with long-term strategic vision. It helps to recognize the global MNEs’ internalization of the host country’s formal and informal institutions when the bargaining power is in imbalance.

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The influence of institutional factors on MNC’s triple bottom-line reporting

International Journal of Emerging Markets ◽

10.1108/ijoem-08-2015-0164 ◽

2016 ◽

Vol 11 (4) ◽

pp. 497-513 ◽

Cited By ~ 15

Author(s):

Boris Urban ◽

Rutendo Hwindingwi

Keyword(s):

Emerging Markets ◽

Multinational Corporations ◽

Triple Bottom Line ◽

Policy Implications ◽

Institutional Factors ◽

Validity And Reliability ◽

Bottom Line ◽

Cross Sectional ◽

Content Type ◽

Targeted Interventions

Purpose Recognising the rapid institutional changes multinational corporations (MNCs) face in emerging markets, the purpose of this paper is to investigate the influence of various institutional factors on their triple bottom-line (TBL) reporting. The study builds on existing research where it has been noted that international business theory needs to adapt to the changes in the global economy, particularly the need to recognise the influence of several contingent variables in African emerging markets (AEMs). Design/methodology/approach The study design was cross-sectional where a survey was administered to MNCs operating in four leading countries situated in key economic regions in Africa. Following validity and reliability testing, hypotheses were tested using regression analysis. Findings Findings show that an independent judiciary system and an adequate national security system were found to have a positive and significant influence on the MNC’s TBL reporting. These institutional factors highlight the perceived importance of “law and order” for MNCs in AEMs. Research limitations/implications Policy implications relate to the need for specific and targeted interventions aimed at improving institutional factors in AEMs. Originality/value Instead of focusing on the internationalisation of AEM firms, the study took a different approach by focusing instead on countries previously under researched and how MNCs are affected by the institutional regimes in these AEMs.

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The Pricing of Country Funds from Emerging Markets: Theory and Evidence

International Journal of Theoretical and Applied Finance ◽

10.1142/s0219024998000060 ◽

1998 ◽

Vol 01 (01) ◽

pp. 111-143 ◽

Cited By ~ 40

Author(s):

Vihang Errunza ◽

Lemma W. Senbet ◽

Ked Hogan

Keyword(s):

Emerging Markets ◽

Capital Markets ◽

Emerging Market ◽

International Market ◽

Policy Implications ◽

Substitution Effects ◽

Country Funds ◽

Study Country ◽

Emerging Capital Markets ◽

The Relationship

This paper provides a theoretical and empirical analysis of country funds focusing on emerging economies whose capital markets are not readily accessible to outside investors. We study country fund pricing and the associated policy implications under alternative variations of international market structure segmentation. We show that country funds traded in the developed capital markets can be beneficial in promoting the efficiency of pricing in the emerging capital markets and in enhancing capital mobilization by local firms. These efficiency gains vary depending upon the degree to which the emerging market securities are spanned by the core or advanced market securities, and cross-border arbitrage restrictions. A country fund premium or discount arises in our framework owing to access and substitution effects characterizing the relationship between the host and emerging markets. We present some empirical evidence supporting our principal predictions. In particular, we investigate the issues of country fund pricing, relative influences of the home market, the international market, the global closed-end fund factor, and the behavior of fund premia/discounts.

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How emerging markets firms will become global leaders

International Journal of Emerging Markets ◽

10.1108/ijoem-07-2015-0138 ◽

2016 ◽

Vol 11 (3) ◽

pp. 274-287 ◽

Cited By ~ 15

Author(s):

Robert Grosse

Keyword(s):

Emerging Markets ◽

Multinational Enterprises ◽

Design Methodology ◽

Value Added ◽

Policy Implications ◽

Single Model ◽

Content Type ◽

Success Stories ◽

Practical Implications ◽

Insight Into

Purpose – Over time the countries characterized as “emerging” change, and some of the companies from these countries become world leaders even as many of those from traditional economic powers fade. There is nothing guaranteed about success of companies from emerging markets (EMs), other than the fact that some of the firms that do survive will be among the success stories of the future. The purpose of this paper is to explore two questions: what enables companies from EMs to compete with existing firms? Is there a conceptual structure that is best for analyzing these firms and their strategies? Design/methodology/approach – This paper discusses the strengths of EM multinational enterprises (MNEs) from the perspective of Dunning’s eclectic view, and gives four detailed examples of companies from this perspective. Findings – It is suggested that while the eclectic view offers excellent insight into EM MNEs, an analysis of their strategies and policy implications requires further perspective such as through the global value-added chain. Research limitations/implications – No single model will capture all of the important features of EM MNEs, but Dunning’s view and the global value-added chain are good tools. Practical implications – Hopefully, both research analysts and company managers will be able to utilize the view presented here to better manage/understand EM MNEs. Originality/value – This view demonstrates a mechanism for exploring key elements of EM MNEs and by moving to the global value-added chain additional, original perspective is gained.

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