Financial internationalization of emerging country multinationals: evidence from India

Purpose Financial internationalization is of particular importance to emerging country firms. Its significance arises from the impact of institutional void and related agency problems (common to emerging markets) on the internationalization path of these firms. Building on concepts from international finance, agency theory and institutional theory, this paper aims to examine the main aspects of financial internationalization by emerging country multinationals, namely, cross-listing, foreign ownership and foreign independent directors. Design/methodology/approach This paper follows a multiple case study approach which is a good fit for the exploratory nature of this research. The interest is to examine the context-driven financial internationalization of each case firm and replicate the firm-level information to find a common strategy. Findings The findings suggest that financial internationalization by emerging country multinationals starts mainly as these firms plan to enter advanced country markets. It is a dynamic process that entails interaction between financial internationalization and real internationalization, as well as among different aspects of financial internationalization. Cross-listing comprises the first stage of the process. Then, foreign ownership, particularly foreign institutional investments, would increase gradually in response to advances in financial and factor markets. Recruiting foreign independent directors seems to be adopted last, possibly out of fear of losing control of strategic decisions. Originality/value This paper presents a unique perspective that delineates different stages of the process of financial internationalization by emerging country multinationals. This complements the efforts to explain the distinct path of internationalization followed by these firms and supplements scarce literature by including emerging multinationals from India where the matter has not yet attracted proper attention.

Volatility Similarity and Spillover Effects in G20 Stock Market Comovements: An ICA-Based ARMA-APARCH-M Approach

Financial internationalization leads to similar fluctuations and spillover effects in financial markets around the world, resulting in cross-border financial risks. This study examines comovements across G20 international stock markets while considering the volatility similarity and spillover effects. We provide a new approach using an ICA- (independent component analysis-) based ARMA-APARCH-M model to shed light on whether there are spillover effects among G20 stock markets with similar dynamics. Specifically, we first identify which G20 stock markets have similar volatility features using a fuzzy C-means time series clustering method and then investigate the dominant source of volatility spillovers using the ICA-based ARMA-APARCH-M model. The evidence has shown that the ICA method can more accurately capture market comovements with nonnormal distributions of the financial time series data by transforming the multivariate time series into statistically independent components (ICs). Our findings indicate that the G20 stock markets are clustered into three categories according to volatility similarity. There are spillover effects in stock market comovements of each group and the dominant source can be identified. This study has important implications for investors in international financial markets and for policymakers in G20 countries.

Motivation, Dilemma and Countermeasures of Foreign Bond Financing of Real Estate Enterprises?Based on Perspective of Financial Internationalization

Several real estate enterprises in China (hereinafter referred to as housing enterprises) rely on overseas financing to meet their financing needs, but it is fraught with challenges such as high financing costs. Premised on the internationalization of finance, combined with the background of "staying and not speculating" and establishing a long-term mechanism for real estate market, based on the investigation of the financing motives of real estate enterprises, combined with a large amount of data, the present study examines the current situation and predicament of overseas financing of housing enterprises. It proposes four feasible countermeasures to promote sustainable development of real estate enterprises overseas financing including building a special financing system to reduce the cost, expanding various financing channels, strengthening the supervision of overseas bond financing, and reducing the loss devaluation of RMB internally and externally.

COMPETITIVENESS OF HIGHER EDUCATION SYSTEM: INTERNATIONAL DIMENSION

The globalization of the scientific-educational area determines the search for new competitive advantages of universities. One of the modern instruments of competition in the world educational services market is universities ranking. Nowadays the educational rankings are widespread; they are studied by researchers and experts of international organizations. In the same time the high dynamism of scientificeducational area requires the permanent monitoring of the competitive positions of the national higher education systems. The purpose of the article is to analyze the competitive positions of higher education systems of selected countries in the world rankings, as well as to identify the directions of increasing their competitiveness in the context of globalization and digitization of the scientific-educational area. The authors studied the methodology of a range of popular rankings of educational systems, and analyzed the ranks of selected countries (United States of America, Switzerland, United Kingdom, Sweden, Denmark, Canada, Finland, Norway, Ukraine, Germany, France, Austria, Poland, China, and Spain). The selection is based on the differentiation of the countries according to the geographic position and ranking position. The source of data: bases of international organizations OECD, World Bank, UNESCO, ILO; and rankings ARWU, SCImago, Webometrics, and Leiden Ranking. Based on the comparative analysis, the article concludes that the increasing of competitiveness of the national higher education system needs the use of integrated approach combining the set of educational, research, financial, internationalization, and managerial components. The authors emphasized the urgency of developing and implementing institutional strategies for internationalization of universities, synchronized with national ones.

Financial dimension of internationalization: serving two masters

Purpose Drawing on the agency and institutional theory, this paper aims to explore how financial internationalization shapes firm performance through the influence of foreign actors. Design/methodology/approach By using a unique panel database, composed of over 26,000 curricula and 4,000 corporate reports from approximately 450 Brazilian companies, the effects of financial internationalization were explored in a longitudinal view by using multiple regression analysis with fixed effects. Findings The results present consistent and non-trivial effects of financial internationalization on firms’s performance. When tested together, foreign ownership showed inconclusive results, foreign directors and depositary receipts showed a positive association with performance and foreign currency debt showed a negative association. Research limitations/implications In most cases, the data on foreign stakeholders, foreign directors and foreign currency debt do not address the home country. Practical implications Serving the interest of foreign stakeholders from multiple institutional perspectives can be a challenge for managers. The findings of this study provide an opportunity for research focusing on institutional duality and financial internationalization. Originality/value This paper extends the prior literature on corporate governance and financial internationalization by investigating the latter on a perspective of firms from an emerging market. The empirical evidence section provides support for the argument that the simultaneous presence of foreign actors in multiple mechanisms of the corporate governance structure impacts the performance of emerging market firms.