State ownership and firm profitability in emerging markets

2018 ◽  
Vol 31 (2) ◽  
pp. 167-183 ◽  
Author(s):  
Mouna Ben Rejeb Attia ◽  
Naima Lassoued ◽  
Mohamed Chouikha
Keyword(s):  
Developing Countries ◽  
Explanatory Power ◽  
Simultaneous Equation ◽  
State Ownership ◽  
Governance System ◽  
Internal Governance ◽  
Content Type ◽  
Public Firms ◽  
Equation Analysis ◽  
Firm Profitability

Purpose The purpose of this paper is to examine the relationship between state ownership and firm profitability in developing countries by considering the endogenous nature of state ownership and firm profitability. Design/methodology/approach A simultaneous equation analysis is applied to study 232 Tunisian firms over the 2001-2013 period. This analysis is compared with OLS estimates to show its power in terms of an endogenous setting and its potential to improve estimation. Findings Unlike the OLS estimates that show a non-significant relationship between state ownership and firm profitability, the simultaneous equation analysis reveals a non-symmetrical concave relationship. Specifically, state ownership affects positively firm profitability when it is relatively small and negatively when state ownership dominates. Specification test indicates that both state ownership and firm profitability are endogenous. Furthermore, the simultaneous model’s explanatory power exceeds that of OLS estimates and proves to be a suitable estimation technique. Practical implications Taking into account public firms’ categorization, the authors implicitly examine the effect of privatization and corporatization on firm profitability. The findings imply that privatization is not the only solution to the operational problems of public firms, but an internal governance system restructuring can also be favorable for these firms. Originality/value In addition to focusing on a new database of developing countries, the case of Tunisian firms, the main empirical analysis is conducted by considering the endogeneity issue. Thus, the findings improve understanding of the role played by state ownership and suggest that a partial state control appears to be beneficial to firm profitability.

scholarly journals What makes MNCs succeed in developing countries?

2015 ◽  
Vol 23 (3) ◽  
pp. 224-247 ◽  
Author(s):  
Michael W. Hansen ◽  
Wencke Gwozdz
Keyword(s):  
Developing Countries ◽  
Explanatory Power ◽  
Location Factors ◽  
Related Factors ◽  
Subsidiary Performance ◽  
Developed Country ◽  
Content Type ◽  
Mnc Subsidiary ◽  
Preparatory Work ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the evolution in subsidiary performance and the factors influencing this performance based on a unique database of approximately 800 multi-national company (MNC) subsidiaries in developing countries. Developed-country multi-national companies (MNCs) are increasingly establishing subsidiaries in developing countries. The potential gains are high; however, so are the risks. While the issue of subsidiary performance should be at the heart of any international business (IB) enquiry into MNC activity in developing countries, surprisingly little research has examined this issue. Design/methodology/approach – Based on a comprehensive literature review of the IB performance literature, it is hypothesized that subsidiary performance essentially is shaped by five clusters of factors: location, industry, MNC capabilities, subsidiary role and entry strategy. These factors’ ability to explain variance in subsidiary performance is tested through a multiple regression analysis. Findings – MNC subsidiary performance in developing countries has improved enormously in recent decades. Especially, MNC capability and subsidiary role-related factors appear to explain variance in performance, while location factors appear to have less explanatory power. This suggests that strong MNC capabilities and organization can make MNCs succeed regardless of location. Practical implications – The key preparatory work for MNCs contemplating entry into developing countries is to carefully scrutinize internal capabilities and organization. Originality/value – The paper presents a model for explaining variation in subsidiary performance in developing countries specifically. The paper offers unique empirical insights into the state and drivers of subsidiary performance in developing countries.

Determinants of telecommunication stock prices

2015 ◽  
Vol 42 (4) ◽  
pp. 534-548 ◽  
Author(s):  
Andros Gregoriou ◽  
Jerome Healy ◽  
Jairaj Gupta
Keyword(s):  
Developing Countries ◽  
Stock Prices ◽  
Capital Expenditure ◽  
Explanatory Power ◽  
Price Volatility ◽  
Mobile Internet ◽  
Cross Sectional ◽  
Content Type ◽  
The World ◽  
Significant Factors

Purpose – The purpose of this paper is to analyze the determinants affecting the stock prices of telecommunications firms in both developed and developing countries around the world. Design/methodology/approach – The empirical analysis is performed using panel data from 160 countries and 45 companies, covering the time period from 2000 to 2011. To identify the significant factors, company level firm-specific financial and non-financial factors have been analyzed that are expected to bear significant impact on price volatility of telecommunications stock. Findings – The test results reveal that capital expenditure and book value are the most significant factors. Dividends and debt levels only affect prices significantly in specification tests with either time-series or cross-sectional effects, whereas firms’ earnings and numbers of mobile internet subscribers do not contribute to the explanatory power of telecommunication stock price variability. Practical implications – The study sheds light to the potential investors in evaluating the risk associated with investment in stocks of telecommunications firms and take informed investment decisions. Originality/value – This is the first study that presents a comprehensive analysis of determinants affecting the stock prices of telecommunications firms in both developed and developing countries around the world.

Exploring students’ satisfaction with universities’ portals in developing countries

2015 ◽  
Vol 32 (2) ◽  
pp. 82-93 ◽  
Author(s):  
Abdel Monim Shaltoni ◽  
Hamza Khraim ◽  
Abdullah Abuhamad ◽  
Mohammad Amer
Keyword(s):  
Developing Countries ◽  
Information Quality ◽  
Positive Impact ◽  
Explanatory Power ◽  
Educational Services ◽  
System Quality ◽  
Cultural Perspective ◽  
Content Type ◽  
Factors Affecting ◽  
Students Satisfaction

Purpose – The purpose of this paper is to investigate the factors affecting students’ satisfaction with university portals in developing countries. The factors examined are educational services availability, user ability, system quality and information quality. Design/methodology/approach – A self completion questionnaire was developed and distributed to a sample of 550 students in several universities. Correlation and regression analysis were used to identify relationships and explore which of the factors had the strongest explanatory power. Findings – The results showed that educational services availability, system quality and information quality influence students’ satisfaction, with service availability being the major determinant. The cultural perspective was employed to explain these results. Originality/value – Understanding what students expect from a university portal should increase their satisfaction and consequently have a positive impact on universities’ performance. The results of this study also contribute to the current literature, which is very limited in developing countries. The paper concludes by discussing implications for both research and practitioners.

GREEN OPEN ACCESS IN KENYA: A REVIEW OF THE CONTENT, POLICIES AND USAGE OF INSTITUTIONAL REPOSITORIES

Mousaion ◽  
2016 ◽  
Vol 33 (3) ◽  
pp. 25-54
Author(s):  
Wanyenda Leonard Chilimo
Keyword(s):  
Developing Countries ◽  
Open Access ◽  
Descriptive Study ◽  
Google Scholar ◽  
Research Institutions ◽  
Journal Articles ◽  
Content Type ◽  
Institutional Repositories ◽  
Current State ◽  
Theses And Dissertations

 There is scant research-based evidence on the development and adoption of open access (OA) and institutional repositories (IRs) in Africa, and in Kenya in particular. This article reports on a study that attempted to fill that gap and provide feedback on the various OA projects and advocacy work currently underway in universities and research institutions in Kenya and in other developing countries. The article presents the findings of a descriptive study that set out to evaluate the current state of IRs in Kenya. Webometric approaches and interviews with IR managers were used to collect the data for the study. The findings showed that Kenya has made some progress in adopting OA with a total of 12 IRs currently listed in the Directory of Open Access Repositories (OpenDOAR) and five mandatory self-archiving policies listed in the Registry of Open Access Repositories Mandatory Archiving Policies (ROARMAP). Most of the IRs are owned by universities where theses and dissertations constitute the majority of the content type followed by journal articles. The results on the usage and impact of materials deposited in Kenyan IRs indicated that the most viewed publications in the repositories also received citations in Google Scholar, thereby signifying their impact and importance. The results also showed that there was a considerable interest in Swahili language publications among users of the repositories in Kenya.

scholarly journals Corporate debt maturity and economic development

2019 ◽  
Vol 15 (5) ◽  
pp. 669-687 ◽  
Author(s):  
Celia Álvarez-Botas ◽  
Víctor M. González-Méndez
Keyword(s):  
Developing Countries ◽  
Economic Development ◽  
Financial Crisis ◽  
Firm Size ◽  
Debt Maturity ◽  
Corporate Debt ◽  
Content Type ◽  
Country Level ◽  
The Relationship ◽  
Bank Concentration

Purpose The purpose of this paper is to analyse the effect of economic development on the influence of country-level determinants on corporate debt maturity, bearing in mind firm size and the period of financial crisis. Design/methodology/approach The authors employ panel data estimation with fixed effects to examine the role of economic development in influencing the relationship between country-level determinants on corporate debt maturity. The paper uses a sample of 30,727 listed firms, belonging to 39 countries, over the period 2005–2012. Findings Corporate debt maturity increases with the efficiency of the legal system and bank concentration and decreases with the weight of banks in the economy. However, the importance of these country determinants is greater in developing than in developed countries. The authors also show that firm size in developed and developing countries influences country determinants of corporate debt maturity. Finally, the results reveal that the financial crisis has affected the debt maturity of firms differently in developed and developing countries, with the effect of bank concentration lengthening debt maturity, this effect being more pronounced in developing countries. Practical implications The findings provide useful insights to guide policy decisions providing access to long-term financing, as corporate debt maturity depends on economic development, institutional environment, banking structure and firm size. Originality/value This study incorporates economic development in explaining the relationship between country-level determinants and corporate debt maturity.

When foreign brands appear local, and local brands appear foreign

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bo Chen
Keyword(s):  
Developing Countries ◽  
Purchase Intention ◽  
Empirical Studies ◽  
Country Of Origin ◽  
Developed Countries ◽  
Brand Names ◽  
Content Type ◽  
Product Categories ◽  
Foreign Brand ◽  
Foreign Brands

PurposeBoth foreign and local companies frequently name their brands in foreign language on the market of developing countries, and some of them choose to disclose the brands' country of origin to consumers. The purpose of this research is to investigate the joint effects between the practices of disclosing the actual country of origin of the brands and the language of the brand names on consumers' purchase intention for foreign brands and local brands in developing countries.Design/methodology/approachThe proposed hypotheses were tested in two studies, namely an experiment and a field experimental survey, with stimuli from two product categories.FindingsThe results of the two empirical studies with Chinese participants consistently demonstrate that revealing the actual country of origin of the brands undermines consumers' purchase intention for local brands that use foreign brand names, but does not impact consumers' purchase intention for foreign brands that use local brand names.Originality/valueThis research first investigates the effects of adapting the brand names into local language of developing countries for brands from developed countries on consumers' purchase intention, which provides new insight into the literature on foreign branding and country of origin effects as well as practical implications for brand managers.

Impact of economic and financial crimes on economic growth in emerging and developing countries

2019 ◽  
Vol 26 (3) ◽  
pp. 910-920 ◽  
Author(s):  
Sani Abubakar Saddiq ◽  
Abu Sufian Abu Bakar
Keyword(s):  
Systematic Review ◽  
Developing Countries ◽  
Negative Impact ◽  
Meta Analysis ◽  
Eligibility Criteria ◽  
Content Type ◽  
Research Reporting ◽  
Financial Crimes ◽  
Emerging And Developing Countries ◽  
The Impact

Purpose The purpose of the study is to investigate the impact of economic and financial crimes on the economies of emerging and developing countries. Design/methodology/approach Preferred Reporting Items for Systematic review and Meta-Analysis (PRISMA) guidelines and meta-analysis of economics research reporting guidelines were used to conduct a quantitative synthesis of empirical evidence on the impact of economic and financial crimes in developing and emerging countries. Findings A total of 103 studies were searched, out of which 6 met the selection/eligibility criteria of this systematic review. The six selected studies indicated that economic and financial crimes have a negative impact in emerging and developing countries. Originality/value To the best knowledge of the authors, no published systematic review of the impact of economic and financial crimes in developing countries has been conducted to date.

The effect of the adoption of an alternative corporate governance system on firms’ performances

2016 ◽  
Vol 35 (4) ◽  
pp. 517-529 ◽  
Author(s):  
Carlo Bellavite Pellegrini ◽  
Bruno S. Sergi ◽  
Emiliano Sironi
Keyword(s):  
Corporate Governance ◽  
Propensity Score ◽  
Performance Outcomes ◽  
Corporate Law ◽  
Law Reform ◽  
Governance System ◽  
Content Type ◽  
Alternative System ◽  
The Impact ◽  
Board System

Purpose – Alternative corporate governance systems (CGSs) have attracted a significant bulk of research recently. While the connection between the adoption of an alternative system (one tier board or two tier board system) and firms’ performances has not been fully analysed yet, the purpose of this paper is to analyse whether companies which have turned into an alternative board system have eventually improved their performance over time. Design/methodology/approach – Using a sample of more than 15,000 Italian unlisted joint stock companies, the authors compare performance outcomes in 2009 of firms adopting alternative systems with performances of firms that maintained the system in force before the 2003 Corporate Law Reform (defined as “traditional”). Because of the choice of an alternative system (one tier or two tier board) instead of a traditional one is not random, the authors reduce selection bias implementing matching methods and comparing firms that are close in terms of propensity score measured in 2003 (the year before the new CGSs have been introduced by a corporate law reform). Findings – The authors do not find evidence of a significant improvement of performances in 2009 concerning those firms that have adopted a one tier or two tier board systems with respect to those which maintained a traditional one. Originality/value – The novelty of the study concerns the application of propensity score matching for the evaluation of the impact of the change of the CGS that is possible in presence of two conditions that are all verified in our setting: first, to have a country where corporate law allows for choosing among different systems; in this case Italy is a good laboratory, because it allows for the choice among three different systems; and second, to have the opportunity to evaluate the effect of the change in light of a relatively recent “pre-treatment” condition; this is made possible by the fact that before the 2003 Reform of corporate law all the companies had a traditional system.

Combatting organised crime and terrorism in Central Asia

2018 ◽  
Vol 25 (2) ◽  
pp. 309-319 ◽  
Author(s):  
Emma van Santen
Keyword(s):  
Central Asia ◽  
Explanatory Power ◽  
Academic Research ◽  
Organised Crime ◽  
The State ◽  
State Crime ◽  
International Policy ◽  
Content Type ◽  
Central Asian ◽  
Terrorist Groups

Purpose This paper aims to examine the shift away from the traditional distinction between organised crime and terrorist groups towards their conceptual convergence under the crime-terror nexus narrative in the context of international security and development policy in post-Soviet Central Asia. It assesses the empirical basis for the crime-terror and state-crime nexus in three Central Asian countries – Kyrgyzstan, Tajikistan and Uzbekistan – and argues that the exclusion of the state from the analytical framework undermines the relevance of the crime-terror paradigm for policy-making. Design/methodology/approach This paper draws on a literature review of academic research, recent case studies highlighting new empirical evidence in Central Asia and international policy publications. Findings There is a weak empirical connection between organised crime and Islamic extremists, such as the Islamic Movement of Uzbekistan and Hizbut Tahrir, in Central Asia. The state-crime paradigm, including concepts of criminal capture, criminal sovereignty and criminal penetration, hold more explanatory power for international policy in Central Asia. The crime-terror paradigm has resulted in a narrow and ineffective security-oriented law enforcement approach to counter-narcotics and counter-terrorism but does not address the underlying weak state governance structures and political grievances that motivate organised crime and terrorist groups respectively. Originality/value International policy and scholarship is currently focussed on the areas of convergence between organised crime and terrorist groups. This paper highlights the continued relevance of the traditional conceptual separation of terrorist and organised crime groups based on their different motives, methods and relationship with the state, for security and democratic governance initiatives in the under-researched Central Asian region.

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