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.

Public sector bank dominated financing and earning quality: Indian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Santanu K. Ganguli ◽  
Soumya Guha Deb
Keyword(s):  
Public Finance ◽  
Public Sector ◽  
Credit Risk ◽  
Least Square ◽  
Policy Implications ◽  
Content Type ◽  
Public Sector Banks ◽  
Flow Generation ◽  
Earning Quality

Purpose Good earnings quality (EQ) provides reasonable assurance as to the reliability of future cash-flow generation capability of the borrowing firms and thereby mitigates the credit risk of the banks. Against the backdrop of the stressed-assets problem in public-sector banks in India, adversely impacting the public finance system, this paper aims to explore the role of EQ of the borrowers in obtaining bank credit and the ways to mitigate the problem. Design/methodology/approach Using a sample of listed 3,486 non-financial and non-government firms, the authors apply Jones (1991) model to estimate their EQ. Then, the authors conduct Hausman’s (1970) test and find the existence of a two-way relation between bank finance and EQ. The authors adopt a two-stage least-square regression model to test the nature of the association between the two after controlling for firm and industry-level characteristics. Findings The empirical results suggest that there exists a two-way negative association between EQ and bank finance implying that the Indian firms tend to report abnormal accruals to enhance tangibility for enjoying higher credit limits and easier access to bank finance. Also, the poor EQ is associated with earnings volatility, adversely impacting the credit quality. The findings are consistent. Practical implications The study highlights the role of EQ in mitigating credit risk and addressing adverse selection problems in granting credit by practicing bankers. Originality/value The findings of the study enrich the literature on EQ, capital structure, agency theory and public finance in several ways and have significant ethical and policy implications in bank-finance-led economies.

scholarly journals The Relationship between Foreign Portfolio Investment, Foreign Direct Investment and Economic Performance of Nigerian Economy: (1980-2017): An Empirical Analysis

2019 ◽  
Author(s):  
Ekine,D.I, Ewubare ◽  
Dennis Brown ◽  
Ajie, Charity
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Incentives ◽  
Least Square ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
External Resources ◽  
Development Indicator ◽  
Stable Economy ◽  
The Impact

The study examined the impact of foreign portfolio investment and Foreign Direct Investment on the performance of the Nigerian Economy over a period of 1980-2017. The data used were purely secondary sourced from the central Bank of Nigeria statistical Bulletin and World Bank Development indicator. The ordinary least square (OLS) regression analysis was used. The findings revealed that the performance of the Nigerian Economy is directly related to inflow of foreign portfolio investment and foreign direct investment and it is also statistically significant at 5% level. This means that a good performance of the economy depends on the inflow of these variables, or that the variables serve as an engine of economic growth. The study therefore recommends that policy makers should work on improvement of economic incentives capable of mobilizing external resources to the country to engender macroeconomic stability. A stable economy will attract foreign investment and this result to increased inflow of foreign capital.

scholarly journals Regional economic integration, natural resources and foreign direct investment in SADC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gameli Adika
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Resources ◽  
Economic Integration ◽  
Natural Resource ◽  
Direct Investment ◽  
Least Square ◽  
Regional Economic Integration ◽  
Content Type

PurposeThis paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC).Design/methodology/approachThe study employed the ordinary least square-random effects and the generalized two-stage least square instrumental variables (IV) regression to examine the relationship between the variables.FindingsThe authors find that regional economic integration and natural resource abundance are essential for promoting economic growth. The results further show a potential resource curse phenomenon, offset by the complementary effect of FDI in resource-rich countries. The findings are robust after conditioning for different measures of institutional quality.Practical implicationsThe findings suggest the need for deeper regional trade integration and international cooperation, prudent natural resource management and concerted effort toward economic diversification.Originality/valueMany studies have examined the determinants of economic growth in the Southern African Development Community (SADC). However, these studies did not incorporate or assess the potential of economic integration in the region. Moreover, studies that examined the growth effects of FDI did not assess the complementary role of the region's natural resource endowment which potentially drives FDI inflows. This study fills these gaps and provides a robust analysis of economic growth drivers in the region.

The role of boundary management in open innovation: towards a 3D perspective

2021 ◽  
Vol 27 (8) ◽  
pp. 57-84
Author(s):  
Rosita Capurro ◽  
Raffaele Fiorentino ◽  
Stefano Garzella ◽  
Rosa Lombardi
Keyword(s):  
Open Innovation ◽  
Qualitative Methodology ◽  
Relevant Literature ◽  
Firm Boundaries ◽  
Boundary Management ◽  
Innovation Implementation ◽  
Content Type ◽  
Listed Firms ◽  
The One

PurposeThe aim of this paper is to investigate the role of boundary management when firms should implement open innovation.Design/methodology/approachThe relevant literature on strategic management, firm boundaries and open innovation fields is revised and critically assessed. An interpretive-qualitative methodology is applied to analyse empirical data obtained from a questionnaire and subsequent interviews of a sample of Italian listed firms. By critically integrating literature review and empirical analysis, a framework is provided with the objective of supporting open innovation implementation.FindingsThe study shows that on the one hand, open innovation and many modern paths of growth are connected to a firm's boundaries and that on the other hand, boundary management plays a key role in the implementation of open innovation.Practical implicationsThe paper has implications for practitioners by driving them to shift the focus of open innovation implementation towards the management of boundaries, in which boundary capabilities and activities play a key role.Originality/valueThis paper sheds light on the advantages and risks that can jeopardize a successful opening up innovation processes without the effective management of boundary studies. Thus, the authors identify and propose causes for reflection and tools maximizing potentiality and reducing risks in the implementation of such processes.

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.

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

scholarly journals Effectiveness of controlling foreign portfolio investment inflows using macroeconomic policy instruments and institutional strengthening (case study in Indonesia and Thailand)

2021 ◽  
Vol 6 (2) ◽  
pp. 121-134
Author(s):  
Zainuri Zainuri
Keyword(s):  
Inflation Rate ◽  
Policy Instruments ◽  
Least Square ◽  
Portfolio Investment ◽  
Institutional Variables ◽  
Foreign Portfolio Investment ◽  
Vector Error Correction ◽  
Asean Countries ◽  
Analytical Tools

This study analyzed the influence of macroeconomic and institutional variables on foreign portfolio investment inflows in two ASEAN countries, Namely Indonesia and Thailand, in 2005 – 2019. The analytical tools used in this research are Panel Vector Error Correction Model (PVECM) and Panel Ordinary Least Square (POLS). The estimation results show that the macroeconomic variables that are proxied using inflation and openness economy and institutional variables that are proxied using the variable level of corruption and quality of regulation have a significant effect. In the long term, the inflation rate, the openness economy, and the quality of regulation variables significantly affect foreign portfolio investment. Meanwhile, in a short time, only the inflation rate variable and the openness ratio have a significant effect on foreign portfolio investment. The two analytical tools used found that macroeconomic and institutional variables consistently affect foreign portfolio investment.

scholarly journals The Role of Technical Innovation and Development of Industrial Sector in Korean International Business

2021 ◽  
Vol 22 (1) ◽  
pp. 55-73
Author(s):  
Ali Mohammed Khalel Al-Shawaf ◽  
Tahira Yasmin
Keyword(s):  
Time Series Data ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Industrial Sector ◽  
Least Square ◽  
Policy Implications ◽  
Series Data ◽  
Significance Level

With the pace of development and competitiveness, innovation plays an important role to capture the market share. Various countries have effective strategies to enhance Research and Development (R&D) and exchange value added products in international market. So, based on this the aim of this research is to examine the role of R&D, industrial design and charges for intellectual property in innovative exports in South Korean economy. Time series data for the period 1998 to 2017, Ordinary Least Square (OLS) and Generalized Method of Moments (GMM) models are used to determine the dynamic interrelationship among the study variables. In summary, the overall results show that there is co-integration rank of in both trace test and value test at 1% significance level. Moreover, OLS and GMM findings depict that there is significant and positive coefficient for ID & RD which represent that they have positive impact on HT. Whereas, the IP displays a negative and significant relationship with high technology exports accordingly. Lastly, the diagnostic tests show that model is stable for the study time period and result is reliable. The current study also suggests some policy implications which can enhance innovative export products of South Korea while enhancing R&D.

From the boundaries of management to the management of boundaries

2019 ◽  
Vol 25 (3) ◽  
pp. 391-413 ◽  
Author(s):  
Andrea Caputo ◽  
Raffaele Fiorentino ◽  
Stefano Garzella
Keyword(s):  
Best Practices ◽  
Business Processes ◽  
Relevant Literature ◽  
Firm Boundaries ◽  
Content Type ◽  
Multiple Partners ◽  
The One ◽  
Development And Management ◽  
Practical Implications

PurposeThe purpose of this paper is to examine some of the new capabilities that are required for the facilitation of business processes management (BPM) in the current political and technological landscape. Specifically, the goal is to investigate the role of firm boundaries, from a business processes perspective, in new contexts in which the affirmation of digitalization requires more integration across a complex network of partners.Design/methodology/approachThe paper is based on a review of relevant literature on BPM, firm boundaries and negotiation. By critically integrating this literature, a framework is developed with the objective of supporting the management of boundaries.FindingsBPM, new competitive contexts, and the technological landscape require the development and management of boundary capabilities. Among these capabilities, “boundary management” – how managers coordinate resources, activities and business processes on the boundaries of the firm – should play a key role. Moreover, as managers must continuously interact with multiple partners in digital supply chains, the organizational model of negotiation serves as a means of effectively managing firm boundaries.Practical implicationsThe framework offers insights and guidelines that can help practitioners manage the boundaries of business processes. The authors encourage a focus on business processes occurring at firm boundaries. Furthermore, the authors encourage the development of new capabilities in response to the needs of practitioners to ensure best practices of negotiation.Originality/valueThis study shifts the emphasis of BPM from the boundaries of management to the management of boundaries. By shedding light on new capabilities required, this paper enriches the BPM literature and can assist, on the one hand, in reconfiguring business processes in the new political and technological landscape and, on the other hand, in facilitating effective negotiation.

scholarly journals Breaking compulsive buying-financial trouble chain of young Malaysian consumers

2018 ◽  
Vol 19 (3) ◽  
pp. 328-344 ◽  
Author(s):  
Eugene Cheng-Xi Aw ◽  
Jun-Hwa Cheah ◽  
Siew Imm Ng ◽  
Murali Sambasivan
Keyword(s):  
Structural Equation ◽  
Group Analysis ◽  
Sampling Technique ◽  
Compulsive Buying ◽  
Partial Least Square ◽  
Least Square ◽  
Mediation Effect ◽  
Content Type ◽  
Money Attitude

Purpose The purpose of this study is to examine compulsive buying and its interrelationships with careful spending, loan dependence and financial trouble. This study also aims to investigate the moderating role of gender. Design/methodology/approach A questionnaire-based survey was conducted. Two hundred and seven responses were collected using purposive sampling technique. Partial least square–structural equation modelling was performed to analyze the proposed hypotheses. Findings The salient findings are (1) careful spending negatively influences compulsive buying, (2) compulsive buying positively influences loan dependence and financial trouble, (3) loan dependence positively influences financial trouble, (4) the relationships between careful spending and compulsive buying, and between loan dependence and financial trouble differ between male and female consumers, (5) there is a sequential mediation effect between careful spending and financial trouble and (6) there are gender differences between careful spending and compulsive buying and between loan dependence and financial trouble. Research limitations/implications This study empirically validates the role of short-term money attitude, conceptualized as careful spending in compulsive buying context and how it attenuates the consequences of compulsive buying. Originality/value This study explains the serial mechanism in which careful spending can be used to counteract financial trouble of youngsters, and further looks into the differences of relationships in term of gender through multi-group analysis.

Sign in / Sign up

Export Citation Format

Share Document