scholarly journals Does Knowledge from Home Markets Boost Outward Foreign Direct Investments of Emerging Economy Multinationals? Evidence from Indian Family EMNEs

2020 ◽  
Vol 23 (2) ◽  
pp. 211-240
Author(s):  
Arindam Mondal ◽  
Sarada Devi Gadepalli
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Supporting Evidence ◽  
Foreign Direct Investments ◽  
International Expansion ◽  
Domestic Markets ◽  
Theoretical Predictions ◽  
Longitudinal Dataset

Despite increasing research on multinationals from emerging economies (EMNEs), our understanding of the antecedents of their international expansion is still limited. In this study, we seek to examine whether knowledge gained from operating in their complex and diverse domestic markets deter or aid the outward foreign direct investments of EMNEs. As family firms are dominant in emerging economies, we further explore how heterogeneity within family firms moderate this relationship. We conduct our investigations using a proprietary longitudinal dataset comprising 213 EMNEs from India featuring in the S&P Bombay Stock Exchange (BSE) 500 index covering a six-year period from 2007-08 to 2012-13, of which 175 were family EMNEs and find supporting evidence for our theoretical predictions.

scholarly journals The Competitiveness of Business Groups and Their Affiliates in International Operations

2016 ◽  
Vol 8 (1) ◽  
pp. 251-262
Author(s):  
Roderick Caballero Bugador
Keyword(s):  
Emerging Economies ◽  
Critical Review ◽  
Business Groups ◽  
Business Group ◽  
Emerging Economy ◽  
Theoretical Background ◽  
International Expansion ◽  
Vast Literature ◽  
International Operations ◽  
Managerial Capabilities

AbstractThe discourse on the competitiveness of emerging economy firms continues with globalization. This paper joins the dialogue by providing a framework of the competitiveness of business groups and their affiliates in international operations. The goal is to address the vast literature on emerging economies that remains short in providing the theoretical background on the competitiveness of emerging and transitioning economy firms. To do this, this study used a critical review and analysis of the literature. It offers some propositions to illustrate the applicability of the framework in analyzing the international expansion of business group affiliates across borders. Ultimately, the paper contributes to the literature on managerial capabilities and competitiveness of firms to sustain their operations as the new emerging economy multinationals.

How Family Firms from Emerging Economies are Responding to Inward Foreign Direct Investments

2020 ◽  
Vol 2020 (1) ◽  
pp. 18396
Author(s):  
Arindam Mondal ◽  
Somnath Lahiri ◽  
Sougata Ray ◽  
Ramachandran Kavil
Keyword(s):  
Emerging Economies ◽  
Family Firms ◽  
Foreign Direct Investments

Moderating role of CEO compensation in lean innovation strategies of Chinese listed family firms

2020 ◽  
Vol 20 (5) ◽  
pp. 887-902
Author(s):  
Muhammad Zulfiqar ◽  
Khalid Hussain ◽  
Muhammad Usman Yousaf ◽  
Nadeem Sohail ◽  
Sadeen Ghafoor
Keyword(s):  
Ceo Compensation ◽  
Family Firms ◽  
Stock Exchange ◽  
Emerging Economy ◽  
Content Type ◽  
Innovation Strategies ◽  
Patent Applications ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this paper is to examine the impact of Chinese listed family firms on lean innovation strategies. Additionally, the authors also examined the moderating role of CEO compensation on the family ownership and lean innovation strategies relationship. Design/methodology/approach Data is obtained from CSMAR database about Chinese family firms listed at Shenzhen Stock Exchange and Shanghai Stock Exchange. Panel data comprising of firm year observations from 2007 to 2016 is analyzed using STATA. Findings Family firms are proactive towards research and development investment (innovation input) as well as towards patent applications (innovation output). Moreover, family firms show propensity towards patent applications and towards converting their R&D investment into granted patent applications. CEO compensation negatively moderates the nexus between family firms and lean innovation which seriously needs to be addressed to reduce agency costs. Research limitations/implications The study has focused on Chinese market only. The study is useful for policy makers to address the serious concerns identified in the conclusion section, i.e. effectiveness of CEO compensation in addressing the lean innovation strategies in emerging economy like that of China. Originality/value Given the usually considered conservative approach of family firms towards innovation, this is the first study which has tested the moderating role of CEO compensation on family firms and lean innovation relationship in an emerging economy. This study is unique because it provides a detailed analysis of lean innovation process by splitting the process into different stages. The negative moderating impact of CEO compensation raises new concerns to resolve agency conflicts.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

scholarly journals The persistence of family firms: How does performance threshold affect family firm exit?

2021 ◽  
Author(s):  
Noni Symeonidou ◽  
Dawn R. DeTienne ◽  
Francesco Chirico
Keyword(s):  
Family Firms ◽  
English Summary ◽  
Future Generations ◽  
Family Influence ◽  
Firm Exit ◽  
Lower Performance ◽  
Threshold Theory ◽  
Exit Decisions ◽  
Future Work ◽  
Longitudinal Dataset

AbstractResearch on family firms provides mixed evidence of the effect of family ownership on firm performance and exit outcomes. Drawing on threshold theory and the socioemotional wealth perspective, we argue that family firms have lower performance thresholds than non-family firms, reducing the likelihood of firm exit. Using a longitudinal dataset of 1191 firms over the period 2008–2011, we find support for this contention, suggesting that performance threshold is an important, yet poorly studied, construct for understanding exits of family versus non-family firms.Plain English Summary Why firms with similar economic performance make different exit decisions? We find evidence that family firms have lower “performance thresholds” than non-family firms, reducing family firms’ likelihood of exit. Using a longitudinal dataset, we examine differences in performance threshold between family and non-family firms and help clarify why some firms persist with their ventures even though their performance may indicate they should exit the market. Our theory and related findings suggest that nonfinancial attributes such as identity, the ability to exercise family influence, and to hand the business down to future generations may affect family firms’ attitudes toward exit decisions. Our study contributes to sharpening our understanding of exit in family firms while motivating future work on exit strategies in family firms and other contexts.

scholarly journals RISK ATTITUDES IN THE BOARD ROOM AND COMPANY PERFORMANCE: EVIDENCE FOR AN EMERGING ECONOMY

2016 ◽  
Vol 11 (04) ◽  
pp. 1650019
Author(s):  
DENICE BODEUTSCH ◽  
PHILIP HANS FRANSES
Keyword(s):  
Stock Returns ◽  
Recent Literature ◽  
Stock Exchange ◽  
Market Value ◽  
Emerging Economy ◽  
Board Members ◽  
Risk Attitudes ◽  
Company Performance ◽  
Book Value ◽  
Earnings Per Share

We personally interview thirteen board members of seven (out of the ten) companies listed at the Suriname Stock Exchange and ask questions about their past and current decisions and on their risk attitudes. Next, we correlate the answers to company performance in between 2003–2011, like earnings per share, stock returns, book value and market value. Recent literature on risk attitudes in the board, which usually draws on western economies, guides our formulation of hypotheses. At the same time we also perform some exploratory analyses. Our main result is that, for this emerging economy, more risk adversity leads to better firm performance.

scholarly journals PENGARUH PERUSAHAAN KELUARGA DAN PERAN KOMISARIS INDEPENDEN TERHADAP PRAKTIK MANAJEMEN LABA DI INDONESIA

2017 ◽  
Vol 11 (1) ◽  
Author(s):  
Go Meliana Indah Lestari ◽  
Senny Harindahyani
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Stock Exchange ◽  
Independent Directors ◽  
Multiple Linear Regressions ◽  
Banking And Finance ◽  
Linear Regressions ◽  
Problem Data

Family firms don’t have effective oversight, therefore they tend to do earnings management higher compare than others. This study aims to prove whether this phenomenon true or not and whether the role of independent commissioners have been effectively overcome the problem. Data used in this research covers all firms listed in Indonesian Stock Exchange for the period of 2012 to 2014, except for banking and finance sector. The study is conducted using multiple linear regressions. The result shows that there is no significant different between family firms and non-family firms to manage earnings, and the role of independent directors can’t decrease the earnings management in family firms.

scholarly journals Social Entrepreneurial Intention among Business Undergraduates: An Emerging Economy Perspective

2013 ◽  
Vol 15 (3) ◽  
Author(s):  
Ayob Noorseha
Keyword(s):  
Emerging Economies ◽  
Social Entrepreneurship ◽  
Sampling Technique ◽  
Entrepreneurial Intention ◽  
Emerging Economy ◽  
Social Enterprises ◽  
Private Higher Education ◽  
Social Entrepreneurs ◽  
The Social ◽  
Perceived Desirability

Social entrepreneurs are viewed as having the abilities to combat social and economic problems in which government, businesses, and non-profits may not be able to solve the problems alone. Consequently, with the collaboration among these sectors, more social enterprises can be established to create social values and development in a nation, specifically among the emerging economies. Therefore, it is timely to investigate what motivates undergraduates to develop social entrepreneurial intention. Drawing from the entrepreneurial models of Shapero and Sokol (1982) and Kruger and Brazeal (1994), this study aims to examine the social entrepreneurial intention among undergraduates from the perspective of an emerging economy. The proposed conceptual model differs from the existing entrepreneurial intention studies by adding the concepts of empathy and social entrepreneurship exposure as the antecedents to perceived desirability and perceived feasibility of social enterprising start-up, which in turn link to social entrepreneurial intention. Using the quota sampling technique, data were collected from 257 business and economics undergraduates from both public and private higher education institutions in Malaysia. The survey instrument was adapted from prior related studies, for instance, Davis (1983) for empathy; Shapero and Sokol (1982) for social entrepreneurship exposure; Krueger (1993) for perceived desirability and perceived feasibility; and Chen et al. (1998) for social entrepreneurial intention. Partial least squares path modelling was used to analyze the hypothesized relationships in the proposed conceptual framework. It is hoped that the findings of this study will shed light on the existing literature of social entrepreneurship, specifically the social entrepreneurial intention studies from the emerging economies perspective.    

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