Market reaction to open innovation announcements

2018 ◽  
Vol 21 (1) ◽  
pp. 142-156 ◽  
Author(s):  
Dawid Szutowski
Keyword(s):  
Open Innovation ◽  
Information Disclosure ◽  
The European Union ◽  
Content Type ◽  
Service Companies ◽  
Significant Difference ◽  
Short And Long Term ◽  
The Impact ◽  
Positive Effect

Purpose Open innovation is of crucial importance for all companies operating in the economics of widely distributed knowledge. However, the effects of its disclosure remain largely uncharted in the case of service companies. Therefore, the purpose of this paper is to measure the impact of open innovation announcements on the market value (MV) of service enterprises. Design/methodology/approach The research covered 398 open innovation announcements released by service companies. It was conducted in the whole of the European Union in the period February 2011-December 2016. The data were analysed in the short and long term with the use of event-study and buy-and-hold methods. Findings The results indicated the significant positive effect of open innovation disclosure in both short and long term. At the same time, the market was not able to immediately fully value the information in the short run and tended to overestimate the positive effect of the innovation announced. No significant leakage and dissemination effects were observed prior to the announcement. There was no significant difference in the magnitude of positive and negative reactions to the releases. Practical implications From the point of view of business practice the research proved the benefits of information disclosure and supported the long-term planning. From the investors’ viewpoint, it signalled the small risk of significant fluctuations resulting from aggressive trading prior to the announcement and unwinding part of the acquired position afterwards. Originality/value The paper attempts to fulfil the research gap on the impact of the announcements on open innovation on the MV of companies.

scholarly journals Impact of COVID-19 on the trade of goods and services in Spain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asier Minondo
Keyword(s):  
Negative Impact ◽  
The European Union ◽  
Firm Level ◽  
Health Crisis ◽  
Content Type ◽  
Goods And Services ◽  
Containment Measures ◽  
Trade Of Services ◽  
The Impact

Purpose This paper aims to analyze the impact of COVID-19 on the trade of goods and services in Spain. Design/methodology/approach This paper uses monthly trade data at the product, region and firm level. Findings The COVID-19 crisis has led to the sharpest collapse in the Spanish trade of goods and services in recent decades. The containment measures adopted to arrest the spread of the virus have caused an especially intense fall of trade in services. The large share of transport equipment, capital goods, products that are consumed outdoors (i.e., outdoor goods) and tourism in Spanish exports has made the COVID-19 trade crisis more intense in Spain than in the rest of the European Union. Practical implications The nature of the collapse suggests that trade in goods can recover swiftly when the health crisis ends. However, COVID-19 may have a long-term negative impact on the trade of services that rely on the movement of people. Originality/value It contributes to understand how COVID-19 has affected the trade in goods and services in Spain.

scholarly journals COVID-19 and tourist mobility at destinations: a literature review and emerging research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alba Viana-Lora ◽  
Antoni Domènech ◽  
Aaron Gutiérrez
Keyword(s):  
Literature Review ◽  
Research Agenda ◽  
Empirical Studies ◽  
Future Research ◽  
Content Type ◽  
Future Research Agenda ◽  
The Future ◽  
Short And Long Term ◽  
The Impact

PurposeThis paper aims to review conceptual and empirical studies that analyse the impact of the pandemic on mobility and tourism behaviour at destinations in order to identify proposals, forecasts and recommendations to guide the future research agenda on the subject.Design/methodology/approachThis study used a systematic literature review to synthesise information from scientific articles published in journals indexed in the Web of Science database related to tourism mobility at destinations during the COVID-19 pandemic.FindingsThis article found that, according to the existing literature, the COVID-19 pandemic is acting as a catalyst for the sustainable transition of tourism. Although the findings reveal a lack of empirical research on the impact of the pandemic on tourism mobility at destinations, the article synthesizes the short- and long-term impacts of the pandemic and sets out the future research agenda on tourist mobility at destinations.Originality/valueTo the best of the authors' knowledge, this is the first systematic review of the impact of the pandemic on mobility and tourism behaviour at destinations that attempts to describe the emerging challenges and the agenda for future research.

Tourism – resilient but vulnerable as “the times they are a changing” in the “new normality”

2020 ◽  
Vol 12 (6) ◽  
pp. 663-670
Author(s):  
Richard Butler
Keyword(s):  
Design Methodology ◽  
Content Type ◽  
External Agents ◽  
Agents Of Change ◽  
Short And Long Term ◽  
The Times ◽  
Traditional Patterns ◽  
Current Concerns ◽  
The Impact

Purpose The purpose of this paper is to present a viewpoint about the short- and long-term future of tourism in the light of the effects of the response to Covid-19 and the implications of potential changes tourism might be facing. Design/methodology/approach The paper is based on a review of current media and academic commentaries and articles on the impact of Covid-19 on tourism, and the likelihood of changes being forced on tourism by external agents of change desiring a different form that the industry should take. Findings Current concerns and changes in patterns of tourism are being driven by two main forces: restrictions imposed on travel, both domestic and international, and fear by potential tourists and destination hosts of infection being caused by the resumption of tourist travel. The situation is extremely vulnerable, changing long-established patterns of behaviour and the effects of tourism on economies, communities and environments. The future for tourism is seen as generally positive in the long term, but agents of change opposed to the traditional patterns of tourism may create a negative environment that could cause severe disruption to the industry and its customers, unless tourism displays willingness and resolve to correct previously inappropriate ways of operating. Originality/value This paper presents a viewpoint about the short- and long-term future of tourism.

Competition law and policy for the EU banking sector in a period of increased economic uncertainty

2012 ◽  
Vol 54 (4) ◽  
pp. 284-301 ◽  
Author(s):  
Ilias Kapsis
Keyword(s):  
Banking Sector ◽  
Government Support ◽  
Bank Failures ◽  
The European Union ◽  
Content Type ◽  
Regulation And Supervision ◽  
The Impact ◽  
State Aids

PurposeThe purpose of this article is to discuss the long‐term impact of the current financial and economic crisis on competition in the European Union (EU) banking sector.Design/methodology/approachThe article first discusses the long term role of competition in the banking sector, commenting on policy developments prior to the crisis. Then the impact of the crisis is discussed focusing on two main areas of policy state: aids and bank regulation and supervision. The article culminates with the conclusions.FindingsThe main findings about state aids are that the efforts of the Commission to ensure that aided companies would not use the government support to distort competition seem to be working. However, given that the full impact on competition of these aids may take years to be felt, the Commission should be prepared to take action where necessary to ensure that competition will be protected. The provision of state aids could not have been avoided due to the grave systemic risks associated with bank failures. In respect of regulation and supervision, the article concluded that there is a lot of work to be done in this area to ensure that mistakes that led to the crisis will not be repeated but also that there is need for the Commission to ensure that the reforms to the regulatory and supervisory architecture do not occur at the expense of competition.Originality/valueThe article contains proposals about policy adjustments, thus contributing to the ongoing debate about the role of competition policy in the efforts to address the impact of the crisis.

scholarly journals Impact of COVID-19 on China's agricultural trade

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lijuan Cao ◽  
Tianxiang Li ◽  
Rongbo Wang ◽  
Jing Zhu
Keyword(s):  
Food Availability ◽  
Scenario Analysis ◽  
Agricultural Trade ◽  
Policy Implications ◽  
Content Type ◽  
Agricultural Exports ◽  
The World ◽  
Short And Long Term ◽  
The Impact

PurposeThe outbreak of the novel COVID-19 virus has spread throughout the world, causing unprecedented disruption to not only China's agricultural trade but also the world's agricultural trade at large. This paper attempts to provide a preliminary analysis of the impact of the COVID-19 pandemic on China's agricultural importing and exporting from both short- and long-term perspectives.Design/methodology/approachThis study seeks to analyze how the outbreak of COVID-19 could potentially impact China's agricultural trade. With respect to exports, the authors have pinpointed major disruptive factors arising from the pandemic which have affected China's agricultural exports in both the short and long term; in doing so, we employ scenario analysis which simulates potential long-term effects. With regard to imports, possible impacts of the pandemic regarding the prospects of food availability in the world market are investigated. Using scenario analysis, the authors estimate the potential change in China's food market—especially meat import growth—in light of the implementation of the newly signed Sino-US Economic and Trade Agreement (SUETA).FindingsThe results show that China's agricultural exports have been negatively impacted in the short-term, mostly due to the disruption of the supply chain. In the long term, dampened external demand and potential imposition of non-tariff trade barriers (NTBs) will exert more profound and lasting negative effects on China's agricultural export trade. On the other hand, despite panic buying and embargoing policies from some exporting and importing countries, the world food availability and China's food import demand are still optimistic. The simulation results indicate that China's import of pork products, in light of COVID-19 and the implementation of SUETA, would most likely see a sizable climb in quantity, but a lesser climb in terms of value.Originality/valueAgricultural trade in China has been a focal-point of attention in recent years, with new challenges slowing exports and increasing dependence on imports for food security. The outbreak of the COVID-19 pandemic adds significant uncertainty to agricultural trade, giving rise to serious concerns regarding its potential impact. By exploring the impact of the unprecedented pandemic on China's agricultural trade, this study should contribute to a better understanding of the still-evolving pandemic and shed light on pertinent policy implications.

Acquisitions and the shareholder base

2019 ◽  
Vol 45 (10/11) ◽  
pp. 1416-1432
Author(s):  
Nicholas Wonder ◽  
Claire Lending
Keyword(s):  
Design Methodology ◽  
Market Value ◽  
Empirical Literature ◽  
Content Type ◽  
Short And Long Term ◽  
Long Term Impact ◽  
The Impact ◽  
Instrumental Variables Approach ◽  
Practical Implications

Purpose The purpose of this paper is to study the impact of acquisitions on the number of shareholders of the acquirer (the shareholder base) and relate that effect to the method of payment and the ratio between the target’s and acquirer’s shareholder bases prior to the acquisition. Design/methodology/approach Using 348 acquisitions from 1993 to 2013 for which both parties are public, American firms, the paper measures changes in the acquirer’s shareholder base from before announcement through to four years after completion. OLS regressions, together with an instrumental variables approach addressing the endogeneity of acquisition payment, indicate the determinants of those changes. Findings Acquisitions completed partly or entirely in stock lead to large increases in the shareholder base, and the increases mostly endure over the four-year window examined in the study. Regression results indicate that the target to acquirer shareholder ratio has a much greater impact on the acquirer’s base for stock acquisitions than for cash acquisitions. The ratio is also associated with changes in beta. Practical implications Because existing theoretical and empirical literature shows that the shareholder base impacts the risk, liquidity, and market value of stock, managers evaluating potential targets and modes of payment may wish to consider the likely impact on their firms’ shareholder bases, as may investors contemplating the effects of an acquisition announcement. Originality/value This is the first work documenting both a short- and long-term impact of acquisitions on the shareholder base and the first to investigate the determinants of the change in the base.

Residential mortgages, the real estate market, and economic growth: evidence from Europe

2018 ◽  
Vol 36 (6) ◽  
pp. 552-577 ◽  
Author(s):  
Umberto Filotto ◽  
Claudio Giannotti ◽  
Gianluca Mattarocci ◽  
Xenia Scimone
Keyword(s):  
Real Estate ◽  
European Countries ◽  
Content Type ◽  
The Real ◽  
The Real Estate ◽  
Persistent Effect ◽  
Residential Mortgages ◽  
The Impact ◽  
Positive Effect

Purpose The purpose of this paper is to evaluate the impact of macroeconomic condition and real estate price trend on the amount of residential loan. Design/methodology/approach The paper using a sample of 16 European Countries for the time period 2007–2015 evaluates the impact of change in the gross domestic product (GDP) growth and the inflation rate on the amount of residential loans. The analysis is performed by using a vector autoregressive (VAR) and generalized VAR approach for the full sample and for each country considered. Findings For a short-term horizon, shocks to mortgages, the house price index (HPI) and the GDP have a positive effect on the GDP, a shock to the amount of mortgages has a positive effect on the mortgage supply and a shock to the GDP has a negative effect on HPI. The main results for the long-term horizon are that a GDP shock has a positive and persistent effect on the amount of mortgages, a shock to HPI has a negative and persistent effect on mortgages and a shock to the amount of mortgages seems to have no persistent effect on the GDP or the HPI. Moreover, the analysis shows that a spillover risk among countries exists and a GDP shock in a European area has an effect on the GDP, real estate prices and residential mortgages in almost all European countries. Practical implications Results obtained show that both macroeconomic and housing prices shocks matter for the real estate lending and the effect are different in the short- and in the medium–long-term horizon. Results are also different country by country and they are affected by the level of financial development of the country. Originality/value The paper studies a lending crisis period and evaluates for the European market the impact of shock on macro-variables for mortgages focusing the attention for the first time only on residential mortgages.

The impact of eco-innovation on the stock returns of technology-based KIBS: role of eco-innovation type and its degree of novelty

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dawid Szutowski
Keyword(s):  
Stock Returns ◽  
The European Union ◽  
Content Type ◽  
Service Companies ◽  
The North ◽  
The Usa ◽  
Knowledge Intensive ◽  
The Impact ◽  
Innovation Type

Purpose The purpose of this paper is to determine the role of eco-innovation type and its degree of novelty in increasing the stock returns of technology-based knowledge-intensive business service companies (T-KIBS), to advance the development of the concept of eco-innovation within the literature on the effects of innovation. Design/methodology/approach The effects of four eco-innovation types were examined across three degrees of novelty involved. The event study methodology was applied to the sample of 238 eco-innovation announcements released during the period of January 2016–June 2019 (inclusive) by European T-KIBS. Findings While the implementation of product and organisational eco-innovation was the most beneficial, the results indicated that a high degree of novelty resulted in larger increase of stock returns in the case of all the four eco-innovation types. Research limitations/implications The eco-innovation announcements were gathered from specialised databases. However, it could be the case that companies may have used different communication channels (e.g. social media) to communicate innovation. Furthermore, a certain amount of bias undoubtedly exists, as the data came only from the European Union. Expanding the spatial scope to include the North American (especially the USA) and Asian economies appears necessary. Practical implications The practical insights into the role that the degree of novelty plays in eco-innovation announcements were formulated, which may be used to increase the market valuation of the firm. Social implications Strategies supporting eco-innovation are crucial for business development as the value created for the stakeholders involved transmits in time into the enterprise value. Originality/value The paper attempts to fill the research gap concerning the impact of eco-innovation on the stock returns of T-KIBS.

An investigation of the promotion effects of uncertain level discount: evidence from China

2019 ◽  
Vol 31 (4) ◽  
pp. 957-979 ◽  
Author(s):  
Hongying Tan ◽  
Umair Akram ◽  
Yujia Sui
Keyword(s):  
Perceived Quality ◽  
Product Knowledge ◽  
Long Term Effects ◽  
Information Process ◽  
Content Type ◽  
Influencing Mechanism ◽  
Short And Long Term ◽  
New Perspective ◽  
The Impact

Purpose Uncertain level discount (ULD) is a type of promotion combining regular discount (RD) with uncertainty. The purpose of this paper is to explore the impact of ULD on consumers’ perceived quality compared with RD and to identify the relevant influencing mechanism and boundary for the effectiveness of ULD. Design/methodology/approach Three online experiments were conducted with 445 participants from China. First, experiment 1 compares the attractiveness of ULD and RD. Second, experiment 2 evaluates the impacts of ULD and RD on consumers’ perceived quality and clarifies the mechanism in this process. Finally, experiment 3 examines the moderating effect of product knowledge. Findings ULD has the same level of attractiveness as RD with equivalent expected discount value for consumers. Besides, consumers in ULD give higher ratings to product quality compared with those in RD, and the lower diagnosticity of price cues in ULD underlies the differential effects of ULD vs RD. Furthermore, product knowledge moderates the relationship between the two promotions and perceived quality. Practical implications The findings provide valuable guidance for managers to conduct promotional campaigns. ULD is an effective promotion to attract consumers to purchase with keeping consumers’ perceived quality high, and such effectiveness will rise for products that consumers are unfamiliar with. Managers can make rational use of ULD to achieve positive promotion results in both the short and long term. Originality/value Few studies pay attention to the long-term effects of the uncertain promotion. This research profoundly investigates the impact of ULD on perceived quality, which complements existing studies from a more integrated perspective that combines short- and long-term effects. Also, this research identifies the mechanism based on the cue diagnosticity theory and puts forward a new explanation for positive uncertainty in uncertain promotions. Finally, this research applies the impact of product knowledge on information process strategies into the uncertain promotion, which clarifies the utility boundary of ULD from a new perspective and offers a more comprehensive understanding for this promotion.

scholarly journals Egyptian budgetary responses to COVID-19 and their social and economic consequences

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emad M. Elkhashen ◽  
Ahmed Sarhan ◽  
Amanze Ejiogu
Keyword(s):  
Design Methodology ◽  
Cash Transfers ◽  
Economic Consequences ◽  
Positive Outcomes ◽  
Content Type ◽  
Social Interventions ◽  
Short And Long Term ◽  
Fiscal Space ◽  
The Impact

PurposeThis paper discusses the impact of COVID-19 pandemic on the Egyptian economy and Egyptian government's budgetary responses to the pandemic.Design/methodology/approachThe authors undertake a critical analysis of Egyptian government's economic and social interventions in response to the COVID-19 pandemic, the funding of these interventions and their short- and long-term implications.FindingsThe analysis shows that the Egyptian government's response to the pandemic will shrink Egypt's fiscal space significantly as increased borrowing and debt service obligations are not offset by the levying of corona tax on salaries and wages. However, increased taxation will impact negatively on poverty. The authors show that social interventions such as cash transfers are not provided at a level which will make an impact on alleviating poverty. The authors highlight increased spending on health as well as the adoption of a gender perspective in the response to the pandemic as positive outcomes with potential for future societal impact.Originality/valueThe authors highlight the Egyptian government's budgetary response to the COVID-19 pandemic and the economic and social implications of this response.

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