Explanatory factors and limitations of Spanish local debt

2018 ◽  
Vol 31 (2) ◽  
pp. 360-377 ◽  
Author(s):  
Jorge Olmo Vera
Keyword(s):  
Economic Crisis ◽  
Dynamic Models ◽  
Political Factors ◽  
Content Type ◽  
Explanatory Variables ◽  
Explanatory Factors ◽  
The Law ◽  
Generalised Method Of Moments ◽  
Fiscal Pressure ◽  
The Impact

Purpose The purpose of this paper is to evaluate the impact of the Law on Budgetary Stability of 2012 over the level of accumulated debt in Spanish municipalities. The paper also analyses the influence of the socioeconomic environment, political factors and budgetary indicators on the level of accumulated debt for the 2008–2014 period, which coincides with the economic crisis. Design/methodology/approach The paper uses panel data methodology. First, the t-test of difference of means is used to analyse which political variables are significant. Then, the analysis is carried out using the generalised method of moments in order to obtain the explanatory variables of the level of debt. Findings The results show that in 2013–2014, the Law on Budgetary Stability did not have a significant effect on reducing the accumulated debt. However, the law has led to a change of the trend in debt levels, as the debt decreased from 2013 to 2014. Moreover, population, unemployment, immigration, personnel expenditure, direct fiscal pressure and level of investment have an influence over the level of accumulated debt. Originality/value This paper contributes to analyse to what extent the Law on Budgetary Stability has affected accumulated debt. The study reveals a slight impact on reducing debt, although it is not significant. An original aspect of this paper is that it uses dynamic models to study the accumulated debt of Spanish municipalities. The study shows the impact of socioeconomic, environmental and political factors as well as of budgetary indicators on the level of debt in the context of economic crisis.

The impact of within-country and within-firm factors on Japanese foreign subsidiary performance during economic crisis

2017 ◽  
Vol 9 (3) ◽  
pp. 190-205 ◽  
Author(s):  
Matheus Baldo Cordeiro ◽  
Mario Henrique Ogasavara ◽  
Gilmar Masiero
Keyword(s):  
Economic Crisis ◽  
Fixed Effects ◽  
Multinational Firms ◽  
Negative Impact ◽  
Foreign Subsidiaries ◽  
Productivity Measurement ◽  
Subsidiary Performance ◽  
Content Type ◽  
Subsidiary Management ◽  
The Impact

Purpose The purpose of this paper is to analyze the relevant aspects that influence foreign subsidiary’s performance and remain how they retain competitiveness in international markets during economic crisis. To investigate this effect, this research analyzes the behavior of Japanese subsidiaries located in European countries during the pre- and post-crisis periods that started in the USA in 2008 and spread all over the world. Design/methodology/approach This is a quantitative study with an analysis based on longitudinal data of foreign subsidiaries of Japanese multinational firms during the period 2006-2013. It applies a multiple linear regression with panel data using fixed effects models. Findings The findings show that within-firm factors related to local experiential knowledge, market entry through joint ventures with partners from the same nationality, and subsidiary management with a team of expatriates all have a positive impact on subsidiary performance during times of economic crisis. Moreover, within-country factors involving macroeconomic aspects related to inflation rate and population income indicators show a negative impact on performance. Finally, the results confirm that subsidiary performance is higher in the pre-crisis period, showing the importance of considering economic crisis aspects in longitudinal studies. Practical implications The result has implications for managers of multinational firms to understand which factors most impact the success of their foreign subsidiaries during times of economic crisis. In this way, managers can, with greater confidence, decide to reach the most important performance indicator in subsidiary management. Originality/value The majority of studies on economic crisis is based on an economic perspective and mostly investigates Asian and Argentinean crises. When considering a firm-level perspective, most research studies conducted on a subsidiary level are cross-sectional or use survival as a measure of performance. This paper applies a longitudinal study using subsidiary-level data and analyzes performance by sales and productivity measurement. In addition, it investigates whether or not within-country and within-firm factors impacted subsidiary performance during the 2008 economic crisis.

Mozambique party politics may trump national interest

2021 ◽  
Keyword(s):  
Economic Crisis ◽  
Debt Crisis ◽  
Party Politics ◽  
Security Sector Reform ◽  
Security Sector ◽  
Sector Reform ◽  
Content Type ◽  
The Government ◽  
Fiscal Pressure ◽  
Broad Consensus

Significance There is broad consensus that security sector reform is necessary, but lingering concern that the government lacks a coherent plan, and will end up being distracted by other issues. Impacts The economic crisis resulting from the debt crisis will continue to put the government under severe fiscal pressure. Small amounts of gas should begin to be exported in 2022, but uncertainty over the timelines for larger projects will persist. Mozambique’s relations with neighbours should continue to improve over the immediate term.

scholarly journals Product diversification and large construction firm productivity: the effect of institutional environments in Malaysia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Azrai Azman ◽  
Carol K.H. Hon ◽  
Bo Xia ◽  
Boon L. Lee ◽  
Martin Skitmore
Keyword(s):  
Firm Performance ◽  
Positive Impact ◽  
Product Diversification ◽  
Content Type ◽  
Construction Firms ◽  
Unrelated Diversification ◽  
Construction Firm ◽  
Related Diversification ◽  
Generalised Method Of Moments ◽  
The Impact

PurposeMany large construction firms (LCFs) adopt product diversification (PD) to counter downturns and spread risks. However, no detailed information is available concerning the type of PD that improves their performance. In addition, it is still uncertain how much changes in institutional dimensions influence the effectiveness of PD. Therefore, the aim is to resolve this issue by establishing a model that shows the extent of this influence.Design/methodology/approachThe generalised method of moments (GMM) estimator is used to model the PD strategies of 86 LCFs in Malaysia over 14 years (2003–2016) and its impact on productivity and profitability performance.FindingsUnrelated diversification (UD) decreased firm performance in 2003–2016, while related diversification (RD) had a positive impact during the more liberal 2010–2016 phase. The models show that the impact of PD is highly dependent on changes in institutional dimensions.Practical implicationsFirstly, managers may adjust the type of PD and its level of diversification to improve firm performance. Secondly, they may devise PD strategies based on changes in institutional dimensions to maximise their effectiveness.Originality/valueThe study contributes to the literature by determining the optimal amount of PD (including RD and UD) and its impact on performance. Secondly, the study is the first to investigate the moderating relationship of the institutional dimensions of economic and regulatory institutions on PD-firm performance. Thirdly, the study is the first to explore the components of technical-scale-scope economies (movement towards and around the production frontier), this being crucial to the strategy that was only conjectured in previous studies.

Corporate governance and underpricing of small and medium enterprises IPOs in India

2020 ◽  
Vol 20 (3) ◽  
pp. 503-525
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Small And Medium Enterprises ◽  
Curvilinear Relationship ◽  
Board Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Explanatory Variables ◽  
Corporate Governance Mechanisms ◽  
Medium Enterprises ◽  
The Impact

Purpose The purpose of the paper is to examine the impact of corporate governance mechanisms, i.e. board structure and ownership structure on the underpricing of small and medium enterprises (SME) IPOs in India. Design/methodology/approach Most of the extant empirical research studies have either pivoted on mainstream IPOs or SMEs IPOs in developed economies, but the present study examines 200 SME IPOs issued during Feb 2012 to April 2017. Multiple regressions have been used to examine the impact of the corporate governance mechanisms on raw return (RR). Furthermore, robustness of the results has been verified through the employment of market-adjusted excess return (MAER) as an additional proxy of underpricing. Findings The results highlight that board size, inverse of board committees, board independence, board age, board directorships positively, and top ten shareholding negatively influence RR. Further, direction of promoter ownership variable indicates curvilinear relationship with underpricing. Other explanatory variables used in model lack statistical validity. Similar results have been obtained when variables were regressed against MAER with related board members being additionally significant in model. Practical implications The findings suggest that Indian investors do take cues from board structure and ownership patterns for making investment decisions in small- and medium-sized firms. Further, the results are also helpful to top management in structuring their boards. Originality/value The present research enriches SME IPOs underpricing literature because the impact of corporate governance mechanisms on unadjusted returns is relatively under explored particularly within the context of small- and medium-sized firms.

The impact of the Chinese stimulus program on earnings management

2019 ◽  
Vol 27 (4) ◽  
pp. 653-670
Author(s):  
Qian Hao ◽  
Xiangyan Shi ◽  
Danlu Bu ◽  
Liaoliao Li
Keyword(s):  
Earnings Management ◽  
Design Methodology ◽  
State Ownership ◽  
Political Factors ◽  
Stimulus Period ◽  
Content Type ◽  
Management Level ◽  
Factors Influencing ◽  
The Impact ◽  
Big Four

Purpose The purpose of this paper is to investigate the impacts of the 2008 Chinese stimulus program on earnings management. Design/methodology/approach Using a sample period from 2004 to 2011 (per-stimulus period: 2004-2007 and post-stimulus period: 2008-2011), the authors compare the change in earnings management between the firms that received the stimulus funds and those that did not receive the stimulus funds. Findings The authors find that from the pre- to post-stimulus period, the recipient firms experienced a greater increase in downward accrual management and a greater decrease in real management than the non-recipient firms did. This result is primarily driven by the non-state-owned enterprises and firms using non-Big-Four auditors. Originality/value The results suggest that the earnings management level is ultimately determined by the underlying economic and political factors influencing managers’ and auditors’ incentives (Cohen, 2008; Ball et al., 2003). Meanwhile, some mechanisms, such as high-quality audit (Eshleman and Guo, 2014) and state ownership (Wang and Yung, 2011) can also play a role in determining the level of earnings management.

Hague Securities Convention goes into effect in the United States

2017 ◽  
Vol 18 (4) ◽  
pp. 72-77
Author(s):  
Bryan L. Barreras ◽  
Barbara M. Goodstein ◽  
Kevin C. McDonald
Keyword(s):  
The United States ◽  
Choice Of Law ◽  
Content Type ◽  
Commercial Code ◽  
The Us ◽  
Secured Transactions ◽  
The Hague ◽  
Market Practice ◽  
The Law ◽  
The Impact

Purpose To explain the Hague Securities Convention in the context of secured financing transactions in the US and to discuss the implications of the Convention on new and existing transactions, as well as on market practice going forward. Design/methodology/approach This article provides a broad overview of the Hague Securities Convention and the impact of the Convention’s choice of law rules on secured financing transactions in the US involving intermediated securities, including how this deviates from previously applicable laws (such as the Uniform Commercial Code), and provides practical considerations with respect to secured financing transactions. Findings While in most circumstances the Convention provides for the same choice of law as previously applicable laws, there are certain scenarios where the Convention will produce a different result. Market practice with respect to perfecting security interests will likely change to take account of the Convention and to provide the parties with certainty regarding the law applicable to secured transactions. Practical implications The Convention calls for increased diligence with respect to the law governing the account agreement between the debtor and the securities intermediary and whether the securities intermediary has a qualifying office in that jurisdiction. Originality/value Practical guidance from experienced finance lawyers.

Does working to pay for higher education really harm French academic results?

2019 ◽  
Vol 40 (4) ◽  
pp. 591-615 ◽  
Author(s):  
Liliane Bonnal ◽  
Pascal Favard ◽  
Kady Marie-Danielle Sorho-Body
Keyword(s):  
Higher Education ◽  
Negative Impact ◽  
Working Hours ◽  
Drop Out ◽  
First Year ◽  
Content Type ◽  
Explanatory Variables ◽  
Student Profiles ◽  
The Impact ◽  
Academic Results

Purpose This paper is the first of its kind to look at first-year undergraduates in France. The purpose of this paper is to measure the impact of holding down a job on the probability of students dropping out of higher education or passing their first year. Design/methodology/approach Given the existence of relevant unobserved explanatory variables, probit models with two simultaneous equations have been estimated. The first equation will enable us to explain paid employment or working hours, and the second academic outcomes that allow for dropout. Findings The results show that being employed means students are more likely to drop out during their first year and less likely to pass. The latter finding is comparable with results for subsequent academic years although the impact is greater for first-year undergraduates. The more intensive the work, the greater the adverse effects of employment. Originality/value By refining the research, this negative impact of employment is not verified for all the student profiles. For some of them, e.g., those with honours at the secondary bachelor, employment does not harm their academic results.

Factors driving indebtedness among small- and medium-sized dairy companies

2020 ◽  
Vol 123 (1) ◽  
pp. 159-175
Author(s):  
Alberto Mazzoleni ◽  
Enrica Pollonini
Keyword(s):  
Economic Crisis ◽  
Food Production ◽  
Design Methodology ◽  
Financial Structure ◽  
Decision Makers ◽  
Third Party ◽  
Production Chain ◽  
Content Type ◽  
The Impact ◽  
Practical Implications

PurposeWe developed a model to demonstrate how multiple interrelated aspects of a firm influence its recourse to third-party financing, which frequently depends on the characteristics of each food production chain.Design/methodology/approachWe conducted an empirical research on a relevant sample of small- and medium-sized Italian dairy firms. Our research methodology is inspired by the grounded theory (Glaser and Strauss, 1967).FindingsOur findings illustrated that firm indebtedness is the result of intertwined variables, linked to different firm dimensions, including growth, financial structure and economic dynamics.Research limitations/implicationsA portion of the analysed phenomenon is not explained using the sample and econometric tools.Practical implicationsThere are practical implications for the decision-makers in a firm (in particular, the managers and the shareholders) as the model allows to evaluate the influence of a set of mutually interdependent firm variables for the indebtedness level.Originality/valueFirst, we considered the recourse to third-party financing within the context of the systems theory (Millová and Blatný, 2015) and from the perspective of linked causes and mutually connected variables. Second, our research focussed on a well-defined food chain and on features of firms operating in this context. Last, our model considered the impact of the recent economic crisis, which motivated us to review the existing models.

The influence of gender on the choice of education: the mediating effect of interest in statistics

2020 ◽  
Vol 13 (1) ◽  
pp. 87-105
Author(s):  
Jeanette Carlsson Hauff ◽  
Jonas Nilsson
Keyword(s):  
Indirect Effect ◽  
Business School ◽  
Perceived Competence ◽  
Mediating Effect ◽  
Interpersonal Contact ◽  
Content Type ◽  
Explanatory Variables ◽  
Use Of Technology ◽  
Variable Level ◽  
The Impact

Purpose The purpose of this paper is to verify the existence of a gender unbalance regarding choice of quantitatively oriented masters’ programs at a business school. The aim, further, is to analyze variables potentially affecting this unbalance: interest in quantitative matters, perceived competence regarding quantitative subjects and measures of quantitative knowledge. Design/methodology/approach Empirical data was collected through a survey of 203 students at a Swedish business school. A measure of quantitative orientation was developed to assess the level of nine masters’ programs at the school. A regression analysis was used to identify the impact of gender and the other explanatory variables. Findings The results indicate that there is a gender unbalance: female students choose master programs perceived to be less quantitatively oriented. However, when studying gender together with level of interest, perceived competence and objective knowledge, the direct gender effect disappears. Instead, a strong positive effect of interest in quantitative matters emerges, as does an indirect effect of gender through the mediating variable level of interest. Practical implications The dual importance of level of interest influences the pedagogical suggestions made. Interpersonal contact between teacher and student and use of technology are suggested to raise the level of interest. To reduce the indirect effect of gender through interest, a suggestion is made to work with stereotype threats. Originality/value The paper addresses a topic of importance: the potential gender unbalance as regards qualitative orientation. It manages to nuance the picture of the importance of gender – and through the introduction of level of interest suggests a productive path forward.

The impact of Jordanian anti-money laundering laws on banks

2016 ◽  
Vol 19 (1) ◽  
pp. 70-78 ◽  
Author(s):  
Ahmad Mohammad Abdalla Abu Olaim ◽  
Aspalella A. Rahman
Keyword(s):  
Money Laundering ◽  
Arab Spring ◽  
Banking Industry ◽  
Primary Source ◽  
Crime Rates ◽  
Content Type ◽  
Terrorist Financing ◽  
The Law ◽  
The Arab Spring ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the Jordanian anti-money laundering law and its instructions on the Jordanian banking industry. The anti-money laundering law in Jordan is newly enacted, but there are new developments not covered by the law. For instance, the revolutionary wave known as the Arab Spring surrounding Jordan has increased the crime rates in Jordan, and it has also reduced international coordination and cooperation to encounter money laundering operations. The emergence of new means for money transfer is affecting the efficiency and speed of bank transfers. Subsequently, the impact of the law on Jordanian banks is unknown. Design/methodology/approach – This paper relies on the Jordanian Anti-Money Laundering and Counter Terrorist Financing Law 2007 as a primary source of information. The relevant Jordanian anti-money laundering instructions that have directly been affecting banks include the Jordanian Anti Money Laundering and Counter Terrorist Financing Instructions Number (51) 2010. These instructions were considered the most important legislation for the purpose of this paper. Findings – While the Jordanian anti-money laundering law is based on certain principles, the effectiveness of the law is unknown. The Arab Spring, particularly the Syrian revolution, has negatively increased the crime rates and money laundering activities in Jordan. To make matters worse, the international cooperation and coordination between countries in combating money laundering are not at the required level, and this has encouraged money laundering groups to exploit the situation. Only time will tell whether the banks will be able to cope sufficiently with the increased anti-money laundering obligations. Obviously, it is critical at this stage to establish effective coordination between legislators, regulators and the banking industry to minimize problems encountered by the banks, thereby to ensure effective implementation of the law. Originality/value – This paper provides an examination of the impact of the Jordanian anti-money laundering law that has directly affected banks. It is hoped that this paper would provide some insight into this particular area for academics, practitioners, the legal advisers, banks and policy-makers not only in Jordan but also elsewhere. In view of the international nature of money laundering and banking, there will be significant interest in how the anti-money laundering law affects banks operation in Jordan.

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