Relative institutional quality and FDI inflows in ASEAN countries

2017 ◽  
Vol 44 (1) ◽  
pp. 115-137 ◽  
Author(s):  
Tajul Ariffin Masron
Keyword(s):  
Multinational Corporations ◽  
Relative Effectiveness ◽  
Institutional Quality ◽  
Least Square ◽  
Limited Information ◽  
Fdi Inflows ◽  
Content Type ◽  
Ordinary Least Square ◽  
Asean Countries

Purpose Foreign direct investment (FDI) inflows into any country, especially ASEAN countries, is affected by any improvement in the institutional quality (IQ) of competitors such as China. As generally investors make decisions by comparing two countries’ IQ, the ratio of two countries’ IQ matters more than a single country’s IQ. The purpose of this paper is to re-examine the role of IQ on FDI inflows in ASEAN countries for the period 1996-2013. Design/methodology/approach With limited information on IQ, this study pools eight ASEAN countries as the sample for analysis from 1996 until 2013. A panel dynamic approach – namely, dynamic ordinary least square and fully modified ordinary least square – is utilized. Findings This study confirmed that relative IQ significantly affects FDI inflows into ASEAN countries. The low effect is more reflective of the small portion of world FDI inflows into the ASEAN region. Research limitations/implications This study observes the crucial relationship between IQ and FDI – that the relative effectiveness of IQ in attracting FDI inflows depends heavily on the changes in both countries’ IQ. Hence, the effort of ASEAN countries to improve IQ and use it as a means to lure FDI inflows should go beyond a mere improvement. Focus should be on significant improvement of IQ so that multinational corporations will comfortably remain or inject new FDI into the country. Practical implications Every ASEAN country should double their efforts toward improving their IQ in order to attract future FDI. Originality/value Several studies have confirmed the role of IQ on FDI inflows. However, the majority of these studies have investigated the effect of IQ exclusively for a specific country even though some of them have used a panel of several countries’ data. On the other hand, investors normally evaluate their decision on whether or not to invest based on the relative terms, comparing several potential locations of investment at once. This study can be considered the first to explore the potential effect of IQ after taking into account the possibility of each ASEAN country’s IQ being easily offset by changes in the IQ of China.

Insurance regulations, risk and performance in Ghana

2019 ◽  
Vol 28 (1) ◽  
pp. 74-96
Author(s):  
Baah Aye Kusi ◽  
Abdul Latif Alhassan ◽  
Daniel Ofori-Sasu ◽  
Rockson Sai
Keyword(s):  
Random Effect ◽  
Least Square ◽  
Insurance Market ◽  
Content Type ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
And Performance ◽  
First Time

Purpose This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study. Design/methodology/approach This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis. Findings The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability. Practical implications The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana. Originality/value This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.

Board independence and firm performance: evidence from Kuwait

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Firm Performance ◽  
Least Square ◽  
Independent Directors ◽  
Board Independence ◽  
Content Type ◽  
Listed Firms ◽  
Ordinary Least Square ◽  
Large Shareholders ◽  
The Relationship

Purpose This paper aims to reduce the knowledge gap by using a large sample and different regressions while controlling the endogeneity and causality issues. Design/methodology/approach This study used the ordinary least square (OLS) and two stage least squares (2SLS) regressions to control the endogeneity and causality problems; this estimation strategy allows for comparison of both estimates to identify any inconsistency and biases in the parameters. Findings General speaking, this study found that board independence negatively affected firm performance based on Tobin’s Q only and the relationship between the two variables ran from board independence to firm performance but not vice versa. Originality/value The current independent directors are not adding value to Kuwait’s listed firms. Some directors who represent large shareholders and the conflict between large shareholders and small shareholders could affect the role of independent directors in Kuwait. To best of the researchers’ knowledge, this study is the first to consider board independent after controlling the issues of endogeneity and causality in Kuwait; thus, the results could be useful for Kuwaiti firms, regulators and policymakers.

Understanding the determinants of festival attendee spending: the role of cultural capital

2020 ◽  
Vol 11 (2) ◽  
pp. 145-159 ◽  
Author(s):  
Andrea Báez-Montenegro ◽  
María Devesa
Keyword(s):  
Cultural Capital ◽  
Regression Models ◽  
Least Square ◽  
Tobit Regression ◽  
Content Type ◽  
Ordinary Least Square ◽  
The City ◽  
Practical Implications

PurposeThe purpose of this paper is to explore which factors determine visitor spending at a cultural festival, focusing particularly on cultural capital variables.Design/methodology/approachThe case study is the Valdivia International Film Festival. Data from a survey conducted amongst a representative sample of attendees at the festival is used and ordinary least square (OLS) and Tobit regression models are applied.FindingsSix of the variables included from the model prove statistically significant: gender, age, place of residence, participation in other activities at the festival, and “leisure and sharing” motivation.Practical implicationsFestival organisers should draw up a programme and prepare activities that are balanced so as to attract local film lovers, but that should also appeal to outside visitors, who would see the festival as an opportunity to enjoy a wider tourist experience, all of which would have a broader economic impact on the city.Originality/valueUnderstanding which factors determine spending leads to an improvement in the event's viability and ensures its future sustainability. This study adds to the growing literature establishing a sound theoretical corpus on the topic.

A nexus between macroeconomic dynamics and trade openness: moderating role of institutional quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yu Zhuang ◽  
Shuili Yang ◽  
Supat Chupradit ◽  
Muhammad Atif Nawaz ◽  
Rong Xiong ◽  
...  
Keyword(s):  
Trade Openness ◽  
Negative Relationship ◽  
Institutional Quality ◽  
Least Square ◽  
Content Type ◽  
Cointegration Tests ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

PurposeFirst, the current study contributes to the available debate by reinvestigating the impact of economic growth (EG), foreign direct investment (FDI), technological innovation (TI) and inflation (INF) on trade openness (TO). Second, the study tests the moderating role of institutional quality (INS) on the relationship among EG, FDI, TI and TO. Third, the study tests how TO contributes to EG efficiency.Design/methodology/approachThe study collects the data from the group of twenty (G20) economies for the period of 1998–2020. The study applied the Kao (1999), Pedroni (2001), and Palamuleni (2017) cointegration tests to test the long-run association between variables. The study applied fully modified least square (FMOLS) and dynamic least square (DOLS) models to test the hypotheses.FindingsFindings of the study showed the positive impact of EG, FDI and TI on TO, which becomes more positive in the presence of institutional quality. Results indicate that INS plays an enhancing role in the relationship between FDI and TO, EG and TO and TI and TO. The study showed a negative relationship between INF and TO, and institutional quality plays a buffering role in the relationship between INF and TO.Originality/valueFirst, the study reinvestigates the empirical association among EG, FDI, TI, INF and TO. Second, the study tests the moderating role of INS on the relationship between the proposed variables by developing an index of all the indicators of INS. Third, the study tests the contributions of TO in economic efficiency (ECE). The contributions of the present study will increase the available literature of TO and help the policy makers of G20 nations to suggest important policies to promote TO and ECE.

Role of educational, regional and religious attributes of CEOs in performance of Indian family firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ranjan DasGupta ◽  
Rajesh Pathak
Keyword(s):  
Educational Attainment ◽  
Fixed Effects ◽  
Family Firms ◽  
Religious Affiliation ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Top Executives ◽  
Northern India

PurposeThe authors investigate whether community-based CEO's attributes, particularly educational attainment, regional and religious affiliation, are direct antecedents of performance in family-controlled Indian firms. The authors further examine whether CEO's education moderates the linkage of firm performance with regional and religious affiliation.Design/methodology/approachThe authors employ pooled Ordinary Least Square with fixed effects and Fama-Macbeth regression techniques to test their hypotheses.FindingsThe results reveal that firms with post-graduate CEOs in business and firms with doctorate CEOs, significantly outperform peer firms. The authors also find that CEOs from northern India outperform peer CEOs consistently which emanates from the risk-taking differentials of CEO's across regions. Hindu CEOs also deliver superior return on assets. However, CEO's educational attainment moderates the influence of regional and religious affiliations.Originality/valueThis study is unique as it contributes on the role of regional affiliation of top executives in determining performance which almost remains unexplored in existing literature.

Tacit knowledge transfer in coopetition

2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Least Square ◽  
Service Firms ◽  
Content Type ◽  
Ordinary Least Square ◽  
Tacit Knowledge Transfer ◽  
Potential Benefits ◽  
Ordinary Least Square Regression ◽  
Empirical Context

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.

Users’ perception of cybersecurity, trust and cloud computing providers’ performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Xu ◽  
Sakthi Mahenthiran
Keyword(s):  
Cloud Computing ◽  
Structural Equation ◽  
Design Methodology ◽  
Positive Relationship ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
Computing Literature

Purpose This study aims to develop a scale to measure the cloud provider’s performance and it investigates the factors that impact that performance from the users’ perspective. Design/methodology/approach This paper proposes a research framework, develops hypotheses and conducts a survey to test the framework. Findings The results from both ordinary least square regression and structural equation modeling analyzes indicate that information technology complexity negatively and significantly affects users’ perception of the cloud computing providers’ performance. Additionally, the trust in the supervisor significantly enhances the otherwise insignificant positive relationship between providers’ cybersecurity capability and users’ perception of their providers’ performance. Originality/value The research makes important contributions to the cloud computing literature, as it measures users’ perception of the cloud computing provider’s performance and links it with cybersecurity, technical complexity and incorporates both the trust in the client firm’s supervisor and the strength of cybersecurity offered by cloud computing provider.

Islamic calendar and stock market behaviour in India

2018 ◽  
Vol 45 (11) ◽  
pp. 1550-1566
Author(s):  
Dharani Munusamy
Keyword(s):  
Stock Market ◽  
Least Square Method ◽  
Least Square ◽  
Stock Market Returns ◽  
Content Type ◽  
Ordinary Least Square ◽  
Average Return ◽  
Year Effect ◽  
The Common ◽  
The Impact

Purpose The purpose of this paper is to examine the behavior of the stock market returns in the different days of the week and different months of the year in accordance with the Islamic calendar. Further, the study estimates the risk-adjusted returns to test the performance of the indices during the Ramadan and non-Ramadan days. Finally, the study investigates the impact of Ramadan on the returns and the volatility of the stock market indices in India. Design/methodology/approach Initially, the study applies the Ordinary Least Square method to test the day-of-the-week and the month-of-the-year effect of the common and Shariah indices. Next, the study employs the risk-adjusted measurement to examine the underperformance and over-performance of the indices for both the periods. Finally, the study estimates the GARCH (1,1) and GJR-GARCH (1,1) models to observe the impact of Ramadan on the returns and the volatility of the Shariah indices in India. Findings The study finds that an average return of the indices during the Ramadan days are higher than non-Ramadan days. Further, the average returns of the Shariah indices are significantly higher on Wednesday than other days of the week. In addition, the highest and significant mean returns and mean risk-adjusted returns of the indices during the Ramadan days are observed. Finally, the study finds an evidence of the Ramadan effect on the returns and volatility of the indices in India. Originality/value The study observes evidence that the Ramadan effect influences the Shariah indices, but not the common indices in the stock market of the non-Muslim countries. It indicates that the Ramadan creates the positive mood and emotions in the investors buying and selling activities. The study suggests that investors can buy the shares before Ramadan period and sell them during the Ramadan days to get an abnormal return in the emerging markets.

Antecedents of switching intention in the mobile telecommunications industry

2018 ◽  
Vol 30 (4) ◽  
pp. 1087-1111 ◽  
Author(s):  
Farzana Quoquab ◽  
Jihad Mohammad ◽  
Norjaya Md Yasin ◽  
Nor Liza Abdullah
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Telecommunications Industry ◽  
Switching Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Mediating Effect ◽  
Loyalty Programs ◽  
Content Type

Purpose This study sheds some light on factors that affect customer switching intention in the Malaysian mobile phone service industry. More particularly, the purpose of this paper is to examine the effect of service quality (SQ), customer satisfaction, switching cost and consumer innovativeness (CI) on service switching intention (SWI); the mediating role of customer satisfaction; and the moderating role of service switching cost on the relationship between CI and SWI. Design/methodology/approach Data were collected using a self-administered questionnaire survey that yielded 535 responses. Using structural equation modelling approach, the partial least square software, version 3 was utilised to test the study hypotheses. Findings Results reveal that customer satisfaction, service switching cost and CI directly affect SWI. However, no significant relationship was found between SQ and SWI. Again, data supported the mediating effect of customer satisfaction as well as the moderating effect of service switching cost. Research limitations/implications It is expected that the findings from this study will enable policymakers, managers and marketers to formulate better strategies and effectively implement loyalty programs, preventing their customers from switching. Originality/value This study contributes to the existing literature by testing switching costs as the quasi moderator. Moreover, this is a pioneer study to consider CI as the antecedent of SWI.

Portfolio investment outflow and the complementary role of direct investment

2015 ◽  
Vol 7 (3) ◽  
pp. 190-206 ◽  
Author(s):  
Abdullah Noman ◽  
Mohammad Nakibur Rahman ◽  
Atsuyuki Naka
Keyword(s):  
Direct Investment ◽  
Relevant Literature ◽  
Explanatory Power ◽  
Least Square ◽  
Policy Implications ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Complementary Role

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

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