Economic regulation, opportunity-driven entrepreneurship and gender gap: emerging versus high-income economies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elena Bárcena-Martín ◽  
Samuel Medina-Claros ◽  
Salvador Pérez-Moreno
Keyword(s):  
Gender Gap ◽  
Emerging Economies ◽  
Credit Market ◽  
High Income ◽  
Least Square ◽  
Economic Regulation ◽  
Market Regulation ◽  
Method Of Moment ◽  
Content Type ◽  
Opportunity Entrepreneurship

PurposeInstitutional environment plays a crucial role in determining the nature of entrepreneurship that prevails in an economy. In this paper, the authors address how business, labour and credit regulations contribute differently to both the overall prevalence of opportunity-driven entrepreneurship (ODE) and its gender gap in high-income and emerging economies.Design/methodology/approachOn the basis of an unbalanced panel of 41 countries over the period 2005–2016, the authors estimate system generalised method of moment models. The authors also perform an ordinary least square analysis to address gender differences in ODE.FindingsThe authors find that higher credit market liberalisation is especially associated with more entrepreneurship by opportunity. Nevertheless, while credit market regulation stands out as a key element to promote opportunity-based entrepreneurship in both high-income and emerging countries, in the emerging world business regulation is also largely related to the prevalence of opportunity entrepreneurship. In terms of gender gap, business and labour market freedom seem to exert an equalising effect on the divide in entrepreneurship by opportunity, specifically in emerging economies.Originality/valueFindings allow the identification of regulatory policy reform priorities to enhance the prevalence of ODE depending on the level of a country's development. They also identify which specific areas of economic regulation would speed up closing the gender gap in opportunity entrepreneurship.

scholarly journals Supporting SMEs’ internationalisation through a deeper understanding of human and technology barriers

2019 ◽  
Vol 6 (4) ◽  
pp. 205-226 ◽  
Author(s):  
John Mendy ◽  
Mahfuzur Rahman
Keyword(s):  
Emerging Economies ◽  
Small Businesses ◽  
Structural Equation ◽  
Emerging Market ◽  
Theory Development ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Technology Type

Purpose The purpose of this paper is to investigate small- and medium-sized enterprises’ (SMEs) internationalisation from an emerging market perspective. It explores and applies human resource management (HRM) processes to small businesses’ internationalisation efforts in order to ascertain the extent to which human- and technology-oriented barriers to internationalisation can be better understood and their processes better managed by SMEs. Design/methodology/approach The data collection and analysis involved a mixed method technique so as to identify the two dominant barriers faced by SMEs at the employer and employee levels. By using primary survey data obtained from 212 Bangladeshi SMEs, a partial least square based structural equation model was successfully validated and its development enhanced the comparison of processes involved in managing people and technology-type barriers. Findings The research results highlight the importance of HRM processes in the proper management of both human and technology-type barriers, which are equally as significant to SMEs’ internationalisation. Practical implications The results highlight the urgent need for governments in emerging economies to prioritise SMEs’ internationalisation and to dedicate resources and processes in order to effectively optimise economic and social dividends. The practical, theoretical and methodological implications of the paper raise opportunities for further research in SMEs’ internationalisation and people management processes and practices as well as new policy guidelines. Originality/value The examination of the link between humans and technology is a much under-represented area in developing countries and the actual contribution of effective HRM processes in the context of SMEs’ internationalisation is missing. Applying HRM processes to these aspects serves to deepen the knowledge of small businesses’ internationalisation efforts and the contributed model enhances professional practice and theory development in these disciplines and in emerging economies.

Tax avoidance as earning game player in emerging economies: evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jahanzeb Marwat ◽  
Suresh Kumar Oad Rajput ◽  
Sarfraz Ahmed Dakhan ◽  
Sonia Kumari ◽  
Muhammad Ilyas
Keyword(s):  
Stock Returns ◽  
Emerging Economies ◽  
Positive Impact ◽  
Empirical Studies ◽  
Tax Avoidance ◽  
Cash Flows ◽  
Least Square ◽  
Short Term ◽  
Content Type ◽  
The Impact

PurposeThe current study aims to achieve two targets. First, examine empirically that whether corporate managers use tax avoidance to influence short-term profitability? Second, investigate the impact of tax avoidance on the value of firms. The tax accounts provide the opportunity to influence temporary/permanent profitability but empirical studies overlooking this matter, particularly in emerging economies.Design/methodology/approachFirst, the authors identified unexpected fluctuations of tax avoidance and then examine whether it impacts the profitability signal and firms' value? The unbalanced panel data of 189 non-financial firms for the period 2000–2018 are used for empirical analysis. The estimation biases and results consistency are verified by using two different econometric models including generalized least square and two-stage least squareFindingsThe study identifies that managers manipulate the profitability signal through tax avoidance. Tax avoidance practices help in earning management and earning smoothing to avoid negative signals in the stock market. In line with the behavioral finance view, tax avoidance has a positive impact on current stock returns because investors focus on profitability without a detailed screening of cash flows.Originality/valueA limited number of studies investigate the use of tax avoidance for manipulation of the short-term earning signal. Identifying gaps and limitations in the literature, this study provides invaluable insights into tax avoidance and its association with the profitability and value of firms. The findings are important for investors, managers and policymakers in making portfolio decisions and corporate policies.

Formal credit usage and gender income gap: the case of farmers in Cambodia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vichet Sam
Keyword(s):  
Gender Equity ◽  
Gender Gap ◽  
Financial Literacy ◽  
Financial Services ◽  
Causal Effect ◽  
Financial Education ◽  
Least Square ◽  
Content Type ◽  
Income Gap ◽  
Female Farmers

PurposeThe purpose of this article is to analyze the factors that drive gender income differences among farmers in Cambodia with a focus on the role of formal credit.Design/methodology/approachTo decompose the gender income gap, this article employs the Blinder–Oaxaca decomposition technique, while a two-stage least square (2SLS) regression is also employed to check the causal effect of formal credit usage on earnings.FindingsResults show a positive effect of formal credit on farmers' earnings and the gender gap in formal credit usage is not found. Despite that, formal credit still contributes to the gender earnings gap with a higher return to credit usage for male farmers. This can be due to the difference in the level of education, financial literacy and other dimensions in favor of men, allowing them to use credit more effectively than women.Research limitations/implicationsThe findings underline the importance of boosting general and financial education among female farmers in Cambodia. Meanwhile, the expansion of access to financial services for women must be accompanied by policies addressing gender gaps in other economic and social dimensions, so that women are able to reap the potential benefit of using those financial services.Originality/valueLack of research focuses on the link between the gender gap in the use of financial services and the gender income gap. The significant gender gap in returns to formal credit usage found in this study demonstrates that the benefits of gender equity in access to and usage of financial services also depend on the effects of other indicators that policymakers must be aware of.

Nonlinear linkages between bank asset quality and profitability: evidence from dynamic and quantile approaches using a global sample

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faisal Alqahtani ◽  
Besma Hamdi ◽  
Michael Skully
Keyword(s):  
Empirical Evidence ◽  
Emerging Economies ◽  
Test Procedure ◽  
Credit Market ◽  
Nonlinear Relationship ◽  
Content Type ◽  
Nonperforming Loans ◽  
Generalised Method Of Moments ◽  
Asset Quality ◽  
Credit Standards

PurposeThe purpose of this study is to examine whether the relationship between asset quality and profitability is linear or nonlinear, using a global dataset containing 2,943 banks from advanced and emerging economies.Design/methodology/approachThe authors use the U-shape test to investigate the existence of a nonlinear relationship between asset quality and profitability. In addition, the dynamic panel generalised method of moments (GMM) and quantile regression are used to examine the nonlinear effect of profitability on nonperforming loans (NPLs).FindingsAfter controlling for macroeconomic and bank internal factors, the authors find empirical evidence supporting the existence of a nonlinear relationship in the form of a U-shape. This is also confirmed through the three-stage U test procedure. After distinguishing between advanced and emerging economies, the authors also find that, in advanced markets, the credit policy responds more rapidly to changes in credit market conditions than in emerging markets, providing insights into credit market dynamics.Research limitations/implicationsFurther research can check the robustness of this study’s findings in different markets and investigate the existence of nonlinearity in other bank variables.Practical implicationsIn a nutshell, the results demonstrate potential implications for policymakers who need to carefully monitor banks' lending behaviour to ensure that banks do not lower lending standards. In addition, banking regulators and supervisors should consider the possible nonlinear relationship in their risk assessments and macrostress tests. Further, these results are important for bank managers, who should monitor the performance of their loan portfolios to ensure that their credit officers do not lower credit standards. Likewise, for banks located in an emerging economy, investing in human capital and advanced technologies can enable them to respond more effectively to changes in the credit market.Originality/valueTo the best of the authors' knowledge, this study is considered the first to provide empirical evidence for the nonlinear relationship between asset quality and profitability.

scholarly journals Boardroom gender diversity and intellectual capital efficiency: evidence from China

2017 ◽  
Vol 29 (4) ◽  
pp. 590-615 ◽  
Author(s):  
Muhammad Nadeem ◽  
Tracy-Anne De Silva ◽  
Christopher Gan ◽  
Rashid Zaman
Keyword(s):  
Intellectual Capital ◽  
Unobserved Heterogeneity ◽  
Gender Diversity ◽  
Value Added ◽  
Least Square ◽  
Method Of Moment ◽  
Corporate Structure ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship

Purpose This paper aims to investigate the relationship between boardroom gender diversity and intellectual capital (IC) efficiency in China – while the previous literature focuses only on traditional accounting-based performance measures such as return on assets or Tobin’s Q. Design/methodology/approach A well-developed Arrelano–Bond generalised method of moment (GMM) is applied to account for endogeneity – mainly because of simultaneity and unobserved heterogeneity. Moreover, this study uses an adjusted-value added intellectual coefficient (VAIC) model to measure the IC efficiency of 906 Chinese listed firms for 2010-2014. Findings The empirical analysis shows a significant relationship between gender diversity and IC efficiency, in static ordinary least square estimation, but this disappears when endogeneity is accounted for using dynamic GMM. This insignificant relationship remains consistent, even when two alternative proxies of gender diversity, i.e. the Blau index and the women dummy, are used. Practical implications This study provides some useful insights into the traditional Chinese corporate structure where females cannot use their powers to bring corporate changes in firms. The findings show that gender-related stereotypical attitudes continue to exist in China. The regulators, therefore, should look into strengthening gender related regulations – which are currently non-existent in China. Originality/value This is the first study of its kind to investigate the relationship between gender diversity and IC efficiency in China using the A-VAIC model and GMM to mitigate endogeneity.

Impact of globalization on income inequality in Asian emerging economies

2019 ◽  
Vol 40 (1/2) ◽  
pp. 44-57
Author(s):  
Kashif Munir ◽  
Mahnoor Bukhari
Keyword(s):  
Income Inequality ◽  
Emerging Economies ◽  
Financial Integration ◽  
Least Square ◽  
Financial Globalization ◽  
Trade Restrictions ◽  
Policy Makers ◽  
Content Type ◽  
The Rich ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of three modes of globalization, i.e. trade globalization, financial globalization and technological globalization, separately on income inequality on the Asian emerging economies. Design/methodology/approach The study uses Hecksher–Ohlin and the Stolper–Samuelson theorem as a theoretical model for the relationship between globalization and income inequality. The study uses pooled least square (POLS) and instrumental variable least square (IVLS) estimation technique but prefers the IVLS over POLS due to the problems of omitted variable biased and endogeneity. Due to unavailability of data for all the Asian emerging economies, the study uses the following 11 countries, i.e. Bangladesh, China, India, Indonesia, Malaysia, Pakistan, Philippines, Sri Lanka, Singapore, South Korea and Thailand, from 1980 to 2014 for the trade and technological globalization model and from 1990 to 2014 for the financial globalization model. Findings Trade globalization significantly contributes to reduce income inequality in the Asian emerging economies. The impact of financial globalization on income inequality suggests that financial integration causes an increase in income inequality. Therefore, the benefits of financial globalization are not evenly distributed among the rich and the poor. The impact of technological globalization significantly contributes in the reduction of income inequality. Practical implications Government has to invest in research and development activities, establish efficient financial system, reduce trade restrictions and provide subsidies that help to increase the volume of trade. Originality/value This study contributes in the existing literature by analyzing the impact of trade globalization, financial globalization and technological globalization on income inequality in Asian emerging economies. The study provides useful guidelines to policy makers and governments to make effective policies in relation to globalization and income inequality that lead toward economic growth and reducing income inequality.

scholarly journals Income inequality and financialization: a not so straightforward relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantinos Alexiou ◽  
Emmanouil Trachanas ◽  
Sofoklis Vogiazas
Keyword(s):  
Income Inequality ◽  
Gini Coefficient ◽  
Trade Unions ◽  
Fixed Effects ◽  
Credit Market ◽  
Market Regulation ◽  
Cross Sectional ◽  
Content Type ◽  
Panel Fixed Effects ◽  
The Impact

PurposeThe authors explore the impact of financialization on income inequality for a panel of 19 OECD countries over the period 2000–2017. The authors control for the effect of banking crises, credit market regulation and globalization, among other factors.Design/methodology/approachThe authors use three proxies for income inequality and four proxies for financialization. The authors employ a panel fixed effects approach using Driscoll and Kraay’s (1998) nonparametric covariance matrix estimator, which produces standard errors that are robust to general forms of cross-sectional dependence.FindingsThe authors provide evidence which to a great extent supports the view that the process of financialization has increased income inequality. In the disposable Gini specifications, two out of the four financialization measures are found to significantly contribute to rising inequality whilst in the specification with the market income Gini coefficient, three out of the four financialization proxies appear to adversely affect inequality. In the specification with the Gini coefficient based on manufacturing pay, the evidence is weak. Furthermore, trade unions appear to play a significant role in reducing inequality in two out of the three Gini specifications while the effect of credit market regulation is rather ambiguous.Originality/valueThe authors’ findings suggest a positive relationship between financialization and income inequality; however, the results depend on the proxies used to measure financialization and income inequality. The authors conclude that the process of financialization in triggering income inequality is complex and merits additional research.

Foreign trade, financial development, agriculture, energy consumption and CO2 emission: testing EKC among emerging economies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Koshta ◽  
Hajam Abid Bashir ◽  
Taab Ahmad Samad
Keyword(s):  
Emerging Economies ◽  
Resource Curse ◽  
Unit Root Test ◽  
Least Square ◽  
Causality Test ◽  
Content Type ◽  
Ordinary Least Square ◽  
Long Run ◽  
Time Period ◽  
New Policies

Purpose The main purpose of this study is to explore the presence of the EKC hypothesis in emerging economies. Additionally, the present study also explores the existence of the “resource curse hypothesis” (RCH), and the causal relationship among the variables that are considered for testing the presence of EKC and RCH hypothesis for a panel of selected emerging economies for the time period between 1990 and 2014. Design/methodology/approach The authors performed unit root test followed by cointegration test to test the existence of cointegrating relationship among the variables. Dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) methods are used to obtain long-run estimates of considered variables, and the Granger causality test is performed to test the directional causality. Findings The long-run estimates obtained from DOLS and FMOLS techniques support the presence of the EKC (inverted U-shape) and the RCH. Originality/value To the best of the authors’ knowledge, the present work is the pioneer study for EKC and RCH investigation in the context of emerging economies. The policy implication is that these economies should look forward to drafting new policies to reduce environmental degradation and promote sustainable development.

Do spouses influence each other's stated son preference?

2020 ◽  
Vol 13 (3) ◽  
pp. 561-588
Author(s):  
Marie-Claire Robitaille ◽  
Ishita Chatterjee
Keyword(s):  
Empirical Studies ◽  
Marriage Market ◽  
Son Preference ◽  
Least Square ◽  
Method Of Moment ◽  
Selective Abortion ◽  
Content Type ◽  
Married Men ◽  
Sex Selective Abortion ◽  
Using Data

Purpose This paper aims to understand the motivations behind married men preferring sons and to quantify the association between a couple’s stated son preferences. Son preference is an endemic problem in India. With half a million female foetuses aborted each year, the root causes of son preference in India have been widely studied. Little is known, however, on how couples mutually decide on their desired child sex-ratio. Design/methodology/approach Using data from the third National Family and Health Survey, the authors apply three-stage least square and optimal general method of moment methods to demonstrate association. Robustness checks are performed on plausibly exogenous instrumental variables and selection issues in the marriage market. Findings The authors show that their spouse's son preference is by far the most significant factor associated with a person's own stated son preference. The association between spouse's stated son preference is observed only for couples being married for three to five years. It is postulated that this is the critical period when sex-selective abortion decisions are being made. Originality/value The focus of existing empirical studies is nearly always on the mother's son preference only. The hypothesis is that spouses mutually influence each other’s preferences and models estimating determinants of son preference should include preferences of both spouses. To the best of the authors’ knowledge, this is the first attempt to understand the motivations of married men towards preferring sons and quantify the association between spouse's stated son preference and respondent's stated son preference.

Consumer buying behaviour and purchase intention of organic food: a conceptual framework

2020 ◽  
Vol 31 (6) ◽  
pp. 1515-1530 ◽  
Author(s):  
Neeraj Dangi ◽  
Sandeep Kumar Gupta ◽  
Sapna A. Narula
Keyword(s):  
Conceptual Framework ◽  
Emerging Economies ◽  
Organic Food ◽  
High Income ◽  
Health Concern ◽  
Related Factor ◽  
Content Type ◽  
Food Purchase ◽  
Buying Behaviour ◽  
The Impact

PurposeThe paper aims to investigate existing research in factors impacting organic food purchase with special reference to eco-labels and identify the relative influence of various determinants.Design/methodology/approachA conceptual framework is proposed of organic food buying behaviour after analysing a sample of 154,072 consumers reported in 91 research studies from 2001–2020. The factors are categorised into four categories on the basis of relatedness. In addition, the factors were analysed based on time, region and national economic status.FindingsThe impact of consumer psychographics, socio-demographic and product-related factor categories were found to be more pronounced compared to supply-related factor category. The results show that among individual factors like health concern, environment concern, knowledge and awareness, eco-labels and price followed by trust in organic food are the most important factors in organic food purchase. The findings suggest that eco-labels increase trust in organic food by reducing information asymmetry in consumers. However, there were differences in perception and factors importance between high-income economies and emerging economies.Originality/valueThe study is unique, as it analyses secondary research based on criteria of high-income economies and emerging economies. The conceptual framework can also be incorporated further into different cognitive models like the theory of planned behaviour.

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