Country- and Firm-Level Determinants of Legal Internationalization By Emerging-Market Firms

2012 ◽  
Vol 2012 (1) ◽  
pp. 16322
Author(s):  
Joel Malen ◽  
Paul M Vaaler ◽  
Ivy Zhang
Keyword(s):  
Emerging Market ◽  
Firm Level ◽  
Emerging Market Firms

scholarly journals Innovating with Limited Resources: The Antecedents and Consequences of Frugal Innovation

2019 ◽  
Vol 11 (20) ◽  
pp. 5789 ◽  
Author(s):  
Quan Cai ◽  
Ying Ying ◽  
Yang Liu ◽  
Wei Wu
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Value Added ◽  
Resource Constrained ◽  
Firm Level ◽  
Value Innovation ◽  
Frugal Innovation ◽  
Innovation Cost ◽  
Emerging Market Firms ◽  
Antecedents And Consequences

Frugal innovation is a resource scarce solution for emerging market firms. Based upon the resource-constrained innovation perspective, this research theoretically explores and empirically examines the drivers and consequences of frugal innovation. The results of a firm-level survey show that two types of frugal innovation (cost innovation and affordable value innovation) positively affect the performance of emerging-market firms. We also address the issues of how emerging-market firms deal with institutional, technological, and market constraints in emerging markets, and we show how these constraints drive frugal innovation. We find that emerging-market firms with higher levels of capability for institutional leverage and bricolage, and firms that face perceived dysfunctional competition, tend to generate more affordable, value-added new products. Overall, these findings have important implications for emerging-market firms seeking to conduct frugal innovation in resource-constrained emerging markets.

Ownership participation of cross-border mergers and acquisitions by emerging market firms

2015 ◽  
Vol 53 (1) ◽  
pp. 221-246 ◽  
Author(s):  
Monica Yang
Keyword(s):  
Mergers And Acquisitions ◽  
Cultural Distance ◽  
Emerging Market ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Firm Level ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Relationship

Purpose – The purpose of this paper is to adopt a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (M&As). In addition, the author would like to know if companies from emerging markets that possess higher (or lower) ownership in cross-border M&As receive higher valuation in the market. Design/methodology/approach – Using panel data of cross-border M&As by emerging market firms from 2000 to 2012, the author tests the hypothesized effects of the independent variables on the level of ownership participation; and uses a standard event study methodology to assess the market reaction of a particular cross-border M&A deal. Findings – The author finds that a country-level factor (institutional distance), an industry-level factor (industry unrelatedness) and a firm-level factor (board concentration) have significant impact on ownership participation in cross-border M&As. The author also finds that investors do give high valuation to those emerging market firms that chose high ownership participation in cross-border M&As. However, the author did not finds the support for the relationship between ownership participation and cultural distance. Neither did the author finds the support for the relationship between ownership participation and board independence. Originality/value – This study enhances the understanding of conditions under which the level of ownership participation in cross-border M&As would increase (decrease) and how the market reacts to high (low) ownership participation of cross-border M&As by emerging market firms.

Liabilities of regionalization and the emerging market firm

2016 ◽  
Vol 31 (3) ◽  
pp. 146-163
Author(s):  
Keith J. Kelley
Keyword(s):  
Multinational Enterprises ◽  
Design Methodology ◽  
Strategic Behavior ◽  
Emerging Market ◽  
Diversification Strategy ◽  
Firm Level ◽  
Content Type ◽  
Strategic Impact ◽  
Strategic Options ◽  
Emerging Market Firms

Purpose The purpose of this paper is to revisit the causal relationships of the liabilities of inter-regional foreignness to show that the process of regionalization itself has affected firms’ strategic capabilities and focus. The constraints of these regions, a consequence of regionalization that limits the strategic options of multinational enterprises, are known as the liabilities of regionalization (LOR). Design/methodology/approach This study reviews previous literature and uses a mixture of theory and inference to make propositions regarding the existence of liabilities attributable to the regionalization process. The propositions discuss macro-level, and industry and firm-level strategic impact on firms of Triad and non-Triad regions. Findings It is argued specific emerging market attributes, in relation to the developed Triad regions, will influence strategic focus of those emerging market firms. This in turn will also influence global strategic behavior and capabilities in the future, creating additional LOR in some cases and reducing them in others. Originality/value Previous scholars have focused on the liabilities of inter-regional and regional foreignness and its effect on international diversification strategy both upstream and downstream. This study attempts to explain the formation of regions that shape the FSAs that limit global strategic diversification, which are characterized as the LOR. More importantly, it discusses them from perspective of emerging market firms, which on the outside of the Triad regions, may form their own regions and FSAs.

Determinants of Price Multiples for Technology Firms in Developed and Emerging Markets: Variable Selection Using Shrinkage Algorithm

2021 ◽  
pp. 097226292110230
Author(s):  
Himanshu Joshi ◽  
Rajneesh Chauhan
Keyword(s):  
Variable Selection ◽  
Emerging Market ◽  
Cash Flows ◽  
Discounted Cash Flow ◽  
Firm Level ◽  
Technology Firms ◽  
High Investment ◽  
Emerging Market Firms ◽  
Selection Operator ◽  
High Level

Globally, technology firms are characterized by high level of innovation, rapid obsolescence of technologies, high investment risk and unpredictability of future cash flows. All these make conventional discounted cash flow valuation methods inadequate for valuation of technology firms. This study aims to develop sector regression models for relative valuation of technology firms by evaluating firm-level determinants of price multiples. Results suggest that price to book is the most appropriate multiple for valuing developed market technological firms, whereas price to sales is the most apt multiple for emerging market firms. Variable selection by least absolute shrinkage and selection operator (lasso) validates that growth rate, research intensity and cash holding influence value of price multiples for both developed market and emerging market firms. Similarly, smaller firms tend to generate higher value of the multiples under both categories. Firms’ ESG practices is an important determinant of price multiples for developed market firms, however, it does not influence the multiples’ value for emerging market firms.

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

2018 ◽  
Vol 67 (9) ◽  
pp. 1566-1584 ◽  
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Regression Analysis ◽  
Quantile Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Data Availability ◽  
Firm Level ◽  
Liquidity Management ◽  
Ols Regression ◽  
Content Type ◽  
Quantile Regression Analysis

PurposeThe management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia.Design/methodology/approachData are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose.FindingsAnalysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels ofθ=0.10 and 0.90. Atθ=0.10, only profitability, tangibility and firm status are significant, while atθ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels.Originality/valueTo the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis.

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