Mining boom will fuel growth in the Dominican Republic

2015 ◽  
Keyword(s):  
Dominican Republic ◽  
Latin American ◽  
Negative Impact ◽  
Environmental Risks ◽  
Local Economy ◽  
Weak State ◽  
Gold Production ◽  
Content Type ◽  
Export Structure ◽  
International Prices

Subject Mining in the Dominican Republic. Significance Since 2013, the exploitation of the Pueblo Viejo mine has boosted gold production. Gold mining has benefited from high international prices and increased its importance in the local economy, in contrast to other sectors that have been hit by the global crisis, such as manufacturing and tourism. Nonetheless, mining also poses environmental risks for a country with weak state capacity. Impacts Concerns over environmental costs and negative impact on local communities could give rise to increased protests by civil society groups. The diversification of the country's export structure remains a key pending task. The mining boom will intensify efforts towards new commercial and technical exchanges with other Latin American and Caribbean countries.

Family business valuation in emerging economies: the arcor case

2021 ◽  
Vol 11 (4) ◽  
pp. 1-52
Author(s):  
Florencia Roca
Keyword(s):  
Latin American ◽  
Family Business ◽  
Cost Of Capital ◽  
Financial Statements ◽  
Country Risk ◽  
Local Economy ◽  
Financial Information ◽  
Developing Economy ◽  
Private Company ◽  
Content Type

Learning outcomes This case can be used to help students achieve the following objectives: To project financial statements and assemble different pieces of financial information to create a valuation model (objective #1, create), To calculate a value for Arcor shares, supporting the estimated value with the chosen assumptions and methodologies (objective #2, evaluate), To draw connections between four different approaches to valuation (DCF, EVA, RV and VI), contrasting them and weighting their advantages and limitations (objective #3, analyze), To examine the relationship between forecasted financial statements and valuation (objective #3, analyze), To discuss the calculation of the Weighted Average Cost of Capital in a new situation as is an emerging economy, with the corresponding country-risk adjustment (objective #4, apply), To discuss the sources of value creation in a family-owned private company in a developing economy (objective #4, apply), To understand the dilemma that the head of a company was facing, identifying the three possible financing alternatives discussed in the text as follows: corporate bonds, earnings reinvestment and an IPO (objective #5, understand). To recall basic facts, as the main character’s opinion on the direction of the local economy or the fact that Arcor already complies with the information requirements of a public company (objective #7, remember). Case overview/synopsis This case is based on the valuation of the world’s largest candy maker, Arcor S.A.I.C., originally a Latin American company, which remains a private family business. The key problem presented by the case is the use of different valuation approaches to price Arcor shares, in view of a possible Initial Public Offer. The case illustrates the application of four main valuation approaches as follows: Discounted Cash Flow (DCF), Economic Value Added (EVA), Relative Valuation (RV) and Value Investing (VI). Additionally, it includes a fundamental analysis of eight years of historical financial information and the preparation of forecasted financial statements. Set in a developing economy, the Arcor case introduces the complexities of calculating the cost of capital with the inclusion of country risk, as well as the financial analysis distortions caused by an environment of high inflation. Complexity academic level The Arcor case is appropriate to be used in graduate courses of Corporate Finance, Valuation or Private Equity. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

Prospects for Central America/Caribbean in 2018

2017 ◽  
Keyword(s):  
Natural Disasters ◽  
Central America ◽  
Latin American ◽  
Public Debt ◽  
Negative Impact ◽  
Oil Prices ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
The Caribbean

Subject Prospects for Central America and the Caribbean in 2018. Significance Most countries in Central America and the Caribbean (CA/C) grew above the Latin American average in 2017, with low oil prices and the recuperation of the US economy helping to drive positive economic outcomes. Challenges still facing the sub-region include corruption, high public debt and the negative impact of natural disasters.

A comparative analysis of banking institutions: examining quiet life

2019 ◽  
Vol 45 (6) ◽  
pp. 726-743
Author(s):  
Mine Aysen Doyran ◽  
Zachary Roman Santamaria
Keyword(s):  
Costa Rica ◽  
Public Good ◽  
Latin American ◽  
Developing Economies ◽  
Negative Impact ◽  
Dynamic Panel Data ◽  
Bank Performance ◽  
Content Type ◽  
The Public ◽  
Banking Institutions

Purpose The purpose of this paper is to analyze the performance of banking institutions in Costa Rica over the period 2004–2014. Design/methodology/approach This paper employs system GMM, dynamic panel data and traditional financial hypothesis framework to analyze bank performance and assess marketplace sustainability for a sample of commercial and cooperative banks from Costa Rica. In the assessment, the authors visit the relative market power, structure conduct performance (SCP) and efficient structure literature. Findings Market share (MS) is positively related to performance whereas the authors find a negative effect of market concentration (Herfindahl–Hirschman index) on bank profits, thereby refuting the SCP hypothesis. The authors accept the “quiet life” hypothesis within Costa Rican banks since a moderate level of profit persistence is detected. Commercial banks are less profitable. Yet when crisis is introduced to the models, it has a significant and negative impact on overall bank performance. Research limitations/implications The authors selected years and banks based on available data plus default information in the relevant database. More insights can be gained from post-2014 developments. Practical implications The current results and conclusions have implications for developing economies (and economic development, in general) by showing that the traditional understanding of cooperative bank model as better for the public good may not be necessarily true. They offer insight into the understanding of how different bank-type institutions affect the public good. Furthermore, expanding the research to Latin America in order to directly compare commercial and cooperative enterprises via a meta-frontier technique would help buttress this evidence. Originality/value This is the most recent study to provide such an investigation for a Latin American country with a sizable MS for cooperative and public sector banks. The paper offers analysis that has been limited in Latin American banking markets thus far.

Dialogue deadlock raises political stakes in Venezuela

2018 ◽  
Keyword(s):  
Dominican Republic ◽  
Latin American ◽  
Presidential Election ◽  
Regime Change ◽  
Candidate Selection ◽  
Content Type ◽  
Latin American Region ◽  
The Government ◽  
Oil Embargo ◽  
American Region

Significance The dialogue between the government and opposition convened in the Dominican Republic has broken down amid mutual recriminations. The government will press ahead with the presidential election. Washington, which already warned that it will not recognise the result, is pressing for a more aggressive position to force regime change. Impacts Fissures in the opposition will widen as deliberations intensify over participation and candidate selection. US contemplation of an oil embargo on Venezuela will be divisive within the wider Latin American region. Absent guarantees of a lifting of individual sanctions and immunity from prosecution, Maduro and his core team will not readily leave power.

Covid-19 impact on the Caribbean academic library: Jamaica's preliminary response to people, place, product and services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sasekea Yoneka Harris
Keyword(s):  
Latin American ◽  
Academic Libraries ◽  
Negative Impact ◽  
Behavioural Change ◽  
Academic Library ◽  
Complete Response ◽  
University Libraries ◽  
Content Type ◽  
The Caribbean ◽  
The Impact

PurposeThis paper examined the impact of the coronavirus disease 2019 (COVID-19) pandemic on people, place, product and services in Jamaican academic libraries. It also compares the Jamaican academic library’s COVID-19 experience with US academic library’s COVID-19 preliminary experience.Design/methodology/approachThe local academic libraries in higher education in Jamaica (also referred to in this paper as university libraries) were surveyed.FindingsGovernment mandates, university mandates and the absence of a vaccine influenced academic library response. The measures implemented, though unplanned and developed on-the-go, constituted a behavioural change model (BCM). COVID-19 has had a positive-negative impact on library people, place, product and services and has created a new normal for Jamaican academic libraries.Research limitations/implicationsThis paper captures the preliminary response of Jamaican academic libraries to the first wave of the COVID-19 pandemic and its impact on library people, place, product and services. As such, a follow-up survey on changes, challenges, strengths, impact, lessons and plans would be a useful complement to this paper. As COVID-19 information is rapidly evolving, this preliminary response of Jamaica is neither the final nor complete response to the pandemic.Practical implicationsThe COVID-19 pandemic has revealed a gap in the literature on disaster management generally and pandemic management in particular, and on the management of health disasters in academic libraries; this paper seeks to fill this gap, albeit incrementally, through Jamaica's preliminary response to the COVID-19 pandemic.Originality/valueThis paper gives voice to the Caribbean academic library’s COVID-19 experience, through the voice of Jamaica. It is the first scholarly paper on the impact of COVID-19 on university libraries in the Jamaican / English-speaking Caribbean, and so presents the elements of the BCM implemented by Jamaica, which provides an important guide to Caribbean academic library leaders. The findings can also inform the Latin American and Caribbean section of international library papers on COVID-19 impact on academic libraries globally.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

scholarly journals Trends in social inequalities in breastfeeding and infant formulas in Latin American countries between the 1990 and 2010 decades

2021 ◽  
pp. 1-10
Author(s):  
Camila S Ferreira ◽  
Catarina M Azeredo ◽  
Ana Elisa M Rinaldi
Keyword(s):  
Dominican Republic ◽  
Social Inequality ◽  
Latin American ◽  
Low Income ◽  
Social Inequalities ◽  
Weighted Least Squares ◽  
Cross Sectional Study ◽  
Demographic And Health Surveys ◽  
Cross Sectional ◽  
Simultaneous Decrease

Abstract Objective: To analyse trends of social inequality in breastfeeding and infant formula (IF) use in Latin America between 1990 and 2010 decades. Design: Time-series cross-sectional study with data from Demographic and Health Surveys. We described the prevalence of exclusive breastfeeding (EBF), breastfeeding between 6 and 12 months (BF6-12) and IF for infants under 6 months (IF < 6) and between 6 and 12 months (IF6-12). Social inequalities were assessed using the slope index of inequality (SII) and concentration index (CIX). Trends in the prevalence of breastfeeding, IF and index of social inequality were analysed by a linear regression model with weighted least squares variance. Setting: Bolivia, Colombia, Dominican Republic, Guatemala, Haiti and Peru. Participants: 51·358 alive infants younger than 12 months. Results: Five countries showed an increasing trend for EBF and BF6-12, four increased for IF < 6 and six for IF6-12. Simultaneous decrease in IF < 6 (Colombia: −0·3/year; Haiti: −0·02/year) and increase in EBF (Colombia: +2·0/year; Haiti: +1·9/year) were observed only in two countries. EBF prevalence was high in the lowest income quintiles in five countries, and IF prevalence was high in the highest income quintiles in all countries and over the decades. For BF6-12, a decrease in inequality (prevalence increased in the highest quintile) was observed in Guatemala (SII1995 = −0·42; SII2015 = −0·28) and the Dominican Republic (SII1996 = −0·54; SII2013 = −0·26). Guatemala was the only country showing a decrease in inequality for BF (SII = −0·005; CIX = −0·0035) and an increase for IF (SII = 0·022; CIX = 0·01). Conclusions: The inequality in BF and IF remained over time. However, inequality in IF < 6 has decreased because low-income infants have increased use and high-income infants have decreased.

Power imbalance issues in athlete sponsorship versus endorsement in the context of a scandal

2014 ◽  
Vol 48 (5/6) ◽  
pp. 1070-1091 ◽  
Author(s):  
François Anthony Carrillat ◽  
Alain d’Astous
Keyword(s):  
Experimental Design ◽  
Design Methodology ◽  
Negative Impact ◽  
Balance Of Power ◽  
Brand Attitude ◽  
Power Imbalance ◽  
Content Type ◽  
Probabilistic Sample ◽  
A Company

Purpose – The purpose of this study is to contrast athlete endorsement vs athlete sponsorship from a power imbalance perspective when a scandal strikes the athlete. Design/methodology/approach – A first study was conducted with a probabilistic sample of 252 adult consumers where the type of brand–athlete relationship (endorsement or sponsorship) and the level of congruence between the two entities (low or high) were manipulated in a mixed experimental design. A second study with a probabilistic sample of 118 adult consumers was conducted to demonstrate that consumers perceive that the balance of power between the brand and the athlete is not the same in endorsement and sponsorship situations. Findings – The results of the first study showed that when an athlete is in the midst of a scandal, the negative impact on the associated brand is stronger in the case of an endorsement than in the case of a sponsorship. However, this occurs only when the brand–athlete relationship is congruent. The results of the second study showed that the athlete’s power relative to the brand is greater in an endorsement than in a sponsorship context. Research limitations/implications – The findings suggest that a company that worries about the possibility that the athlete with whom it wants to build a relationship be eventually associated with some negative event (e.g. a scandal) should consider sponsorship rather than endorsement as a strategy. Originality/value – This study is the first to compare the athlete endorsement and sponsorship strategies in general and the first to put forward the notion of power imbalance in brand–athlete partnerships, its impact on how the two entities are represented in consumers’ memory networks and the consequences on brand attitude when the athlete is associated with a negative event.

Heuristic biases in investment decision-making and perceived market efficiency

2018 ◽  
Vol 10 (1) ◽  
pp. 85-110 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Maqsood Ahmad ◽  
Faisal Mahmood
Keyword(s):  
Financial Markets ◽  
Market Efficiency ◽  
Negative Impact ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Investment Strategy ◽  
Individual Investors ◽  
Content Type ◽  
Specific Investment ◽  
The Relationship

Purpose This paper aims to clarify the mechanism by which heuristics influences the investment decisions of individual investors, actively trading on the Pakistan Stock Exchange (PSX), and the perceived efficiency of the market. Most studies focus on well-developed financial markets and very little is known about investors’ behaviour in less developed financial markets or emerging markets. The present study contributes to filling this gap in the literature. Design/methodology/approach Investors’ heuristic biases have been measured using a questionnaire, containing numerous items, including indicators of speculators, investment decisions and perceived market efficiency variables. The sample consists of 143 investors trading on the PSX. A convenient, purposively sampling technique was used for data collection. To examine the relationship between heuristic biases, investment decisions and perceived market efficiency, hypotheses were tested by using correlation and regression analysis. Findings The paper provides empirical insights into the relationship of heuristic biases, investment decisions and perceived market efficiency. The results suggest that heuristic biases (overconfidence, representativeness, availability and anchoring) have a markedly negative impact on investment decisions made by individual investors actively trading on the PSX and on perceived market efficiency. Research limitations/implications The primary limitation of the empirical review is the tiny size of the sample. A larger sample would have given more trustworthy results and could have empowered a more extensive scope of investigation. Practical implications The paper encourages investors to avoid relying on heuristics or their feelings when making investments. It provides awareness and understanding of heuristic biases in investment management, which could be very useful for decision makers and professionals in financial institutions, such as portfolio managers and traders in commercial banks, investment banks and mutual funds. This paper helps investors to select better investment tools and avoid repeating expensive errors, which occur due to heuristic biases. They can improve their performance by recognizing their biases and errors of judgment, to which we are all prone, resulting in a more efficient market. So, it is necessary to focus on a specific investment strategy to control “mental mistakes” by investors, due to heuristic biases. Originality/value The current study is the first of its kind, focusing on the link between heuristics, individual investment decisions and perceived market efficiency within the specific context of Pakistan.

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