Ageing in Emerging Markets

2016 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Lady English
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Developed Countries ◽  
Population Ageing ◽  
Full Report ◽  
Emerging Market Countries ◽  
The Usa

In January 2015, I attended the Emerging Markets Symposium on Ageing, held in Oxford, UK. A group of 50 experts, from 20 countries and a range of relevant disciplines, collaborated to produce recommendations designed to be of practical value to policymakers faced with the challenges of population ageing. The topic is timely because the proportion of the population over age 65 is increasing in Emerging Market countries at an accelerated rate; changes that developed over 150 years in developed countries such as Britain or the USA will occur over a period of 25 years in the Emerging Markets (EMs). This article will highlight the main themes from the Symposium and encourage interested readers to move on to the full report.

scholarly journals Impact of Ownership Structure on Bank Profitability in Nigeria

2008 ◽  
Vol 4 (3) ◽  
pp. 170-183
Author(s):  
Uhomoibhi Aburime Toni
Keyword(s):  
Emerging Markets ◽  
Ownership Structure ◽  
Developed Countries ◽  
Bank Profitability ◽  
Limited Applicability ◽  
The Usa ◽  
The Individual ◽  
The Uk ◽  
Finance Theory ◽  
Political Economic

Ownership structure is considered an important factor that affects a firm’s health. If ownership structure affects a firm’s health, it is possible then to use the ownership structure to predict firm profitability. Against this backdrop, this paper analyzes the relationship between ownership structure and bank profitability in Nigeria. There are two motivations for this paper. Firstly, midway into the banks consolidation exercise in Nigeria, the CBN identified the need for a determination of the most appropriate composition of bank capitalization that would enhance the individual and systemic profitability and efficiency of banks in Nigeria post-consolidation. Hence, it decided to minimize state governments’ investment in banks during the exercise and also issued a December 2007 ultimatum to all tiers of governments that have stakes in banks to dilute their investments to a maximum of 10 per cent. Unfortunately, the CBN did not state any econometrically-based rationale giving credence to its directives. Secondly, the effect of ownership structure and concentration on a firm’s performance is an important issue in the literature of finance theory. However, no researcher has studied this important aspect of finance theory in the Nigerian context. It is worth noting that most research on ownership structure and firm performance has been dominated by studies conducted in developed countries. However, there is an increasing awareness that theories originating from developed countries such as the USA and the UK may have limited applicability to emerging markets. Emerging markets have different characteristics such as different political, economic and institutional conditions, which limit the application of developed markets’ empirical models.

The impact of artificial intelligence (AI) finance on financing constraints of non-SOE firms in emerging markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jun Shao ◽  
Zhukun Lou ◽  
Chong Wang ◽  
Jinye Mao ◽  
Ailin Ye
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Financing Constraints ◽  
Content Type ◽  
Emerging Market Countries ◽  
Finance Development ◽  
Cash Flow Sensitivity ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

PurposeThis study investigates the impact of AI finance on financing constraints of non-SOE firms in an emerging market.Design/methodology/approachUsing a sample of non-SOE listed companies in China from 2011 to 2018, this research employs the cash–cash flow sensitivity model to examine the effect of AI finance on financing constraints of non-SOE firms.FindingsWe find that the development of AI finance can alleviate the financing constraints of non-SOE firms. Further, we document that such effect is more pronounced for smaller firms, more innovative firms and firms in developing areas.Practical implicationsThis study suggests that emerging market countries can ease the financing constraints of non-SOE firms by promoting AI finance development.Originality/valueThis study, to the best of our knowledge, is the first one to explore the relationship between AI finance development and financing constraints of non-SOE firms in emerging markets.

The influence of motivations on international location choice in least developed, emerging and developed countries: evidence from Chinese MNEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fernando Angulo-Ruiz ◽  
Albena Pergelova ◽  
William X. Wei
Keyword(s):  
Emerging Markets ◽  
Multinational Enterprises ◽  
Location Choice ◽  
Emerging Market ◽  
Developed Countries ◽  
Asia Pacific ◽  
Institutional Constraints ◽  
Least Developed Countries ◽  
Content Type ◽  
Developed Economies

Purpose This research aims to assess variations of motivations when studying international location decisions. In particular, this study aims to assess the influence of diverse motivations – seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints – as determinants of the international location choice of emerging market multinational enterprises (EM MNEs) entering least developed, emerging, and developed countries. Design/methodology/approach The authors develop a set of hypotheses based on the ownership–location–internalization framework and complement it with an institutional perspective. The conceptual model posits that the different internationalization motivations (seeking technology, seeking brand assets, seeking markets, seeking resources and escaping institutional constraints) will impact the location choice of EM MNEs in developed economies, emerging markets or least developed countries. This study uses the 2013 survey data collected by the China Council for the Promotion of International Trade and the Asia Pacific Foundation of Canada. The final sample of analysis of this research includes 693 observations. Findings After controlling for several variables, two-stage Heckman regressions show there is a variation of motivations when EM MNEs enter least developed countries, emerging markets and developed economies. EM MNEs are motivated to enter least developed countries to seek markets and resources. Conversely, those firms enter developed countries in their search for technological assets and to escape institutional constraints at home. While the present study findings show a clear difference in the motivations that lead to location choice in least developed vs developed countries, the results are not as clear for location in other emerging countries. Research limitations/implications The paper offers empirical support for the importance of motivations as crucial determinants of location choice. Originality/value This paper provides a detailed quantitative study on the internationalization location choice of EM MNEs based on their motivations. Though theoretical models underscore the importance of motivations, we know very little about how, in practice, motivations drive location choice. This study contributes to the international location choice literature a deeper understanding of how diverse motivations drive choices of expansion into developed economies, emerging markets or least developed countries.

Parenting Advantage in Business Groups of Emerging Markets

2007 ◽  
Vol 11 (3) ◽  
pp. 1-10 ◽  
Author(s):  
Anurag Mishra ◽  
M. Akbar
Keyword(s):  
Emerging Markets ◽  
Group Structure ◽  
Emerging Market ◽  
Business Groups ◽  
Developed Countries ◽  
Business Group ◽  
Managerial Practices ◽  
Developed Economies ◽  
Divisional Structure ◽  
Made In

The concept of parenting was originally proposed by Campbell et al (1995) in the context of conglomerates in developed economies. In contrast to the divisional structure of conglomerates in developed countries, business groups as found in most emerging consist of a network of affiliated yet independent firms. This difference in the structure of multi-business firms in developed and emerging markets solicits a revisiting the concept of parenting as originally proposed by Campbell et al. (1995). Does ‘parenting advantage’ exist in emerging markets? If so, what are the sources of ‘parenting advantage’? Given the multi-firm, multi-business group affiliated setup how does ‘parenting’ differ in emerging markets when compared to conglomerates of developed economies? How does the business group structure and associated managerial practices impact ‘parenting advantage’ of firms affiliated to a business group in emerging market? This paper examines some of these critical yet unanswered questions. The contribution made in this work is threefold… One, we redefine the concept of ‘parenting’ as relevant to business group structure found in emerging markets like India. Two, we articulate the drivers of parenting value for affiliate firms bound in a business group structure. Three, the paper discusses the nuances of parenting and its advantages in an emerging market, in contrast to its conceptualization in developed economies. Finally, extending the parenting literature to a wider context of an emerging market is an important outcome of this work.

scholarly journals Internationalization of state-owned enterprises from emerging markets: Overview of theoretical approaches

2020 ◽  
Vol 19 (2) ◽  
pp. 227-255
Author(s):  
Daria S. Klishevich ◽  
◽  
Andrey Yu. Panibratov ◽  
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Emerging Market ◽  
State Ownership ◽  
Research Field ◽  
Future Research ◽  
Institutional Perspective ◽  
Theoretical Approaches ◽  
Emerging Market Countries ◽  
International Strategies

The article presents the analysis of the theoretical and empirical research on the phenomenon of the internationalization of state-owned enterprises from emerging market countries. Contemporary internationalized state-owned enterprises are far from the uncompetitive and ineffective firms of the 20th century that mostly operated domestically and give examples of truly exciting international strategies. However the question stays open, namely how exactly state ownership shapes their international strategies. The existing studies are vast and lack systematization, and the purpose of this article is to analyze the most widely used theoretical approaches that investigate internationalization of emerging markets of stateowned enterprises. The most popular theoretical approach to study the internationalization of emerging markets of state-owned enterprises is the institutional perspective that studies how the interplay of state ownership of companies and institutional environment shapes their international strategies. Nevertheless, the synergy of theoretical approaches is needed in order to extend knowledge on the internationalization of the state-owned enterprises. Examples of such a synergy are presented in this paper. It also offers prospects for future research and further topics to study. Analysis of theoretical approaches that study internationalization of emerging markets of state-owned enterprises helps map the research field and show where it is moving. The paper has value for both academia and practitioners that deal with the global expansion of state-owned enterprises from emerging markets.

What differentiates successful strategic marketing among manufacturers in an emerging vs developed market?

2018 ◽  
Vol 30 (2) ◽  
pp. 309-332 ◽  
Author(s):  
Roger Brooksbank ◽  
Zahed Subhan ◽  
Steven Miller
Keyword(s):  
Decision Making ◽  
Emerging Markets ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Conventional Model ◽  
Content Type ◽  
Developed Markets ◽  
Marketing Decision ◽  
The Usa ◽  
Competitive Success

Purpose Emerging markets present strategists with a unique set of challenges that result from a business environment that is quite different from that which characterises developed markets. Yet, little is known about marketing’s contribution to successful strategic decision making in emerging markets. Thus, the purpose of this paper is to examine the usage of conventional strategic marketing practice, as it relates to developed markets, within groups of higher- and lower- performing manufacturers in the emerging market of India, comparing it against that of their counterparts in the developed market of the USA. Design/methodology/approach The study is based on separate web-hosted questionnaire surveys conducted in India and the USA, yielding samples of 71 and 84 self-reported manufacturing companies, respectively. Data analyses were conducted using independent-sample t-tests and logistic multiple regression, and sought to compare and contrast successful strategic marketing decision making in each country. Findings The results confirm that conventional strategic marketing plays a vital role in facilitating the competitive success of manufacturers in India. However, they also suggest that differences in the strategic environments faced by manufacturers in both countries necessitate quite different priorities for success at each stage of the strategic marketing decision-making process. Research limitations/implications Due to relatively low response rates, the extent to which the study samples are representative of the population under scrutiny remains unknown. Also, differences in the respondents’ interpretation of certain questions and some of the marketing vocabulary and terminology used cannot be ruled out. Practical implications The research highlights the important contribution that conventional strategic marketing makes to the achievement of competitive success of manufacturers in India. However, it also identifies several specific practices that differentiate higher firm performance in the two countries, drawing into question the direct applicability of the conventional model of strategic marketing within an emerging market. Originality/value As far as is known for the first time, the applicability of the conventional model of successful strategic marketing within an emerging market is assessed. As a result, a new model is forwarded.

Engineering the Roadmap of Reverse Innovation

2020 ◽  
pp. 745-755
Author(s):  
Pável Reyes-Mercado
Keyword(s):  
Product Development ◽  
Emerging Markets ◽  
Emerging Market ◽  
Developed Countries ◽  
Technology Planning ◽  
Reverse Innovation ◽  
Firm Level ◽  
Integrate Technology ◽  
Systematic Framework ◽  
Analyse Case

The reverse innovation concept has gained traction in the practitioner and academic domains since it alters the traditional view of innovations flowing from developed countries to emerging markets. Reverse innovations depart from the assumption that product development appeals to value offers with reduced performance and radically lower price points for consumers in emerging markets. Existing literature on reverse innovations has been limited to analyse case studies and anecdotic evidence but a systematic framework is needed to innovate in systematic ways. Drawing from the technology planning and forecasting, this paper proposes that technology roadmaps are suitable tools to analyse how a reverse innovation designed initially in an emerging market encroaches developed countries. At the firm level, roadmaps integrate technology planning, product development, and market aspects. Hence, they become suitable tools to design and commercialize products and services based on the reverse innovation paradigm.

Exploiting emerging market complementarities

2019 ◽  
Vol 27 (1) ◽  
pp. 54-76 ◽  
Author(s):  
Nic Robertson ◽  
John M. Luiz
Keyword(s):  
Emerging Markets ◽  
New Technologies ◽  
Emerging Market ◽  
Multinational Enterprise ◽  
Media Technology ◽  
Host Countries ◽  
Content Type ◽  
The Usa ◽  
Market Opportunities ◽  
African Media

PurposeThis paper aims to explore the delayed, then accelerated, internationalisation of an emerging multinational enterprise (EMNE), with a particular focus on the media technology sector, and how it exploited complementarities between emerging markets.Design/methodology/approachThe research is qualitative in nature and focuses on the expansion of a South African media technology EMNE case study that has a footprint in over 130 countries and has one of the largest market capitalisations of any media company outside the USA and China.FindingsEMNEs have unique capabilities in navigating uncertain institutional environments in emerging markets and are able to capitalise upon the institutional complementarities between their home and host countries. This may facilitate the recognition of market opportunities and the harnessing of new technologies to meet these opportunities in complementary markets for accelerated internationalisation.Practical implicationsEMNEs must capitalise upon the institutional complementarities between home and host country locations and use this to take advantage of identified market opportunities. This creates the possibility for a process of accelerated internationalisation. New technologies are creating particular market opportunities in emerging markets which can be exploited by EMNEs.Originality/valueThe authors provide a framework which illustrates how an EMNE can exploit complementarities between emerging markets to identify market opportunities, capitalise upon institutional similarities and harness new technologies in the process.

Corporate fraud and information asymmetry in emerging markets

2019 ◽  
Vol 26 (1) ◽  
pp. 95-112 ◽  
Author(s):  
Abdul Ghafoor ◽  
Rozaimah Zainudin ◽  
Nurul Shahnaz Mahdzan
Keyword(s):  
Emerging Markets ◽  
Information Asymmetry ◽  
Event Study ◽  
Capital Market ◽  
Emerging Market ◽  
Developed Countries ◽  
Governance Mechanism ◽  
Ols Regression ◽  
Content Type ◽  
Practical Implications

PurposeThe purpose of this study is to examine changes in firms’ level of information asymmetry in emerging market of Malaysia for the period of 2000-2016. Specifically, the study focuses on changes in the quoted spread and quoted depth following the fraud announcement.Design/methodology/approachThe study uses a unique set of fraud sample using enforcement action releases (EARs) identified from the Security Commission of Malaysia and Bursa Malaysia. To estimate the result, the authors use event study methodology, OLS regression and simultaneous model on a set of 67 fraudulent firms.FindingsThe results of event study, OLS regression and simultaneous equation models suggest that information asymmetry increases on fraud discovery. The authors also use the analysis on subsamples classified by the type of regulator (who issued the enforcement release) and type of fraud committed. However, the authors find no evidence of a difference in information asymmetry across these groups. Overall, the results support the reputational view of fraud that it damages the firms’ reputation and increases uncertainty in the capital market.Research limitations/implicationsThese findings provide valuable insights into understanding the information asymmetry around fraud announcements, especially for Malaysia, where the majority of the public-listed companies are family-controlled and under significant state control. The results of this study call for the active role that regulators can play to achieve a transparent and liquid capital market.Practical implicationsThe research has practical implications. Specifically, for Malaysia, fraud is the primary area for National Results Areas (NKRA) in the Government Transformation Program (GTP). Therefore, for regulators and policymakers to ensure a liquid and transparent capital market, identifying the factors that elicit the fraudulent behavior and improving the related governance mechanism are necessary steps to prevent the fraudulent practices.Social implicationsDue to increased information asymmetry on fraud announcements, the demand for equity decreases that may affect not only the fraudulent firms but also results in negative externality for non-fraudulent firms, thus impairing their ability to fund equity.Originality/valueA significant majority of studies have focused on corporate frauds in developed countries such as the USA that is characterized by dispersed ownership system and a strong capital market. One of the vocal critics of the agency theory is that it neglects the social and institutional framework within which companies operate. In emerging markets, such as Malaysia, the published academic papers on fraud and information asymmetry are very limited. As emerging markets practice different cultures, corporate governance mechanisms and market regulations, the study is significant to investigate the behavior of investors in such markets.

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