External Investment Research Articles

Balancing power and prosperity: China’s geo-economic engagement with the Gulf Cooperation Council

Since the 1990s, China’s engagement beyond its geographical periphery, especially with Asian regions, has grown exceptionally, which is best evident in the Gulf sub-region and Western Asian nations. Indeed, energy-based interactions were the first to be established with Gulf Arab countries, and today, more than two decades after the Cold War, such relationships have evolved into tighter partnerships and engagement networks. Thus, in the last decade, China has increased its economic and political footprint in the Gulf region, as it has become one of the region’s largest external investors and trade partners. In its relations with the Gulf Cooperation Council (GCC) states, China faces varying challenges as each country pursues its interests, making the Chinese strategy in the region more complex. The Gulf countries have had to balance their relationship between the US as a security guarantor and China as an important economic partner. They strive to maximize their political and economic interests in the process. The main contention of this paper is that the GCC should not be viewed as a homogenous entity and that the Belt and Road Initiative (BRI) is a flexible approach designed to bolster China’s economic objectives in each Gulf country. Our research scrutinizes China’s geo-economic strategy and geopolitical aims about the Gulf States’ aspirations to maximize their economic ties with China. Against this background, this paper discusses the political and economic relationships between the People’s Republic of China and the Gulf Arab states: Bahrain, Kuwait, Qatar, Oman, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE).

Wage implications of FDIs in Slovakia and Slovenia on post-communist emerging markets

This study investigates the impact of Foreign Direct Investments (FDIs) on wage dynamics in Slovakia and Slovenia, with a particular emphasis on gender-specific effects in post-Communist emerging markets. By analyzing wage outcomes for male and female workers separately, the research reveals potential disparities in FDIs-driven wage growth. Employing econometric techniques and longitudinal data, the study explores the nuanced relationship between FDIs, wage policies, and economic development over time. A temporal lag in FDIs analysis suggests that Slovakia and Slovenia have experienced differing impacts from past foreign capital flows. In Slovakia, significant correlations indicate persistent FDIs influence and a pronounced effect on gender wage disparities. In Slovenia, more moderate correlations and FDIs volatility suggest a less stable relationship between external investment and wage dynamics. The originality of this research lies in its comparative approach, examining two distinct post-Communist nations and identifying unique country-specific patterns and trends. This study contributes to a deeper understanding of FDI’s role in labor market management and its implications for gender equality in two European emerging economies.

Data assetization and capital market information efficiency: evidence from Hidden Champion SMEs in China

Data assets serve functions such as value preservation and appreciation, financing, and value creation. They contain extensive information about enterprises’ operational status and future development prospects, providing significant references for external investors’ decision-making and greatly impacting the information efficiency in capital market. This study examines the correlation between data assetization and capital market information efficiency, along with the mechanisms and influencing factors involved. We select a sample of Chinese Hidden Champion small and medium-sized enterprises (SMEs) from 2011 to 2021, utilize text analysis methods to build a data assets dictionary, and extract keywords from corporate annual reports to depict the level of data assetization. The research results indicate that data assetization significantly enhances the information efficiency of capital market, specifically reducing stock price synchronicity and stock price delay. By categorizing data assets into own-use data assets and transactional data assets, we find that both types can improve the information efficiency of the capital market. Mechanism analysis reveals that enterprise data assetization can enhance the information efficiency of capital market by alleviating corporate financing constraints and improving forward-looking information disclosure. Factors analysis demonstrates that digital infrastructure and data circulation transactions can strengthen the enhancement effect of data assetization on the information efficiency of capital market. This study enriches the research outcomes in the micro-research field of data assets, providing valuable insights for promoting the digital transformation of Hidden Champion SMEs and the high-quality development of capital market.

Policy approaches to increase external investment by US pension funds in African countries

AbstractLimited external investment has dampened the prospect for a prosperous African continent that capitalises on economic integration and its demographic dividend. This article explores US pension funds as a candidate for increased investment by framing it through an institutional lens and the scholarly understanding of the risk–return dynamics in private capital allocation. The original research is centered on interviews of senior‐level professionals who work in the US pension fund investment ecosystem as well as experts at multilateral organisations. It identifies the primary investment impediments articulated in interviews and offers approaches policymakers in OECD member countries could undertake to increase the scale of US pension fund investment in African countries. These include: (1) Transform guarantee programs in size, scope, and risk tolerance; (2) Establish large pass‐through investment vehicles; (3) Focus resources to improve capital markets in African countries; and (4) Mandate development organisations to coordinate and proactively collaborate with firms in the US investment ecosystem.

CEO Optimism on Corporate Risk Management: Evidence from China

Based on impression management theory and upper echelons theory, this study constructs an integrated mediating model involv-ing external investors. It aims to explore the impact of CEO optimism, a positive psychological advantage, on corporate crisis management performance. The research uses machine learning based on LSTM to analyze content text, measuring CEO displayed optimism. It also uses a Python program to crawl objective financial data and third-party objective reports after corporate crises occur, evaluating investor confidence and corporate crisis management performance. This study reveals the positive psychological advantage factors of leaders that enhance corporate crisis management performance and potential mediating mechanisms. It deepens our understanding of how CEOs improve corporate crisis management performance, provides practical insights for en-terprises and managers, and offers reference value for future research.

Green path development: The agency of the City of Vaasa in establishing the battery industry

AbstractEmpirical studies on agency in green path development (GPD) have underexplored non‐firm actors' roles. Through a semi‐structured interview, this article provides insight into how the City of Vaasa exercises agency toward developing the battery industry and the concomitant effects. The findings reveal that the City of Vaasa provides place‐based leadership, for example, through a local‐based initiative, that is, the GigaVaasa, as a platform to increase participation and coordinate the actions of public and private actors. As an institutional entrepreneur, they govern the issuance of operating licenses to optimize their economic interest; as innovative entrepreneur, they strategically plan and coordinate infrastructure development to increase the region's attractiveness to external investors and talents. The City of Vaasa agency increases the chances for the region to participate in the global battery market and stimulate the region's economic development. Nonetheless, environmental sustainability concerns remain a profound unintended effect. Conceptually, the article introduces the agency cyclicality and synchronization model to enhance the understanding of the interplay and effect of agency in an emerging green industry's development trajectory.

Diversification and the Resource Curse: An Econometric Analysis of GCC Countries

This research explores the effects of significant global economic shocks, such as the 2008 Global Financial Crisis and the 2020 COVID-19 pandemic, on GDP growth in the Gulf Cooperation Council (GCC) nations. Employing a dynamic generalized method of moments (GMM) model, the analysis highlights the strong momentum effect of lagged GDP growth, where past performance plays a critical role in shaping current economic outcomes. The findings also reveal that natural resources continue to positively influence short-term growth, but with diminishing returns over time, supporting the resource curse hypothesis and underscoring the need for broader structural reforms to ensure long-term sustainability. In addition, the results show that external investments flowing into the country, trade balance, and inflation emerge as key drivers of economic growth. While moderate inflation is positively associated with economic expansion, unemployment exerts a significant negative effect on GDP growth, particularly in models that account for country-specific characteristics. This emphasizes the need for labor market reforms to improve employment rates and support sustainable development. The role of gross capital formation, particularly in both the dynamic GMM and random effects models, further underscores the importance of strategic domestic investment, especially during periods of global disruption. These findings emphasize the critical need for economic diversification in the GCC. Policymakers should focus on attracting foreign investment, managing inflation, enhancing human capital, and boosting domestic investment to mitigate the adverse effects of the resource curse and secure sustainability. While market capitalization and oil rents may stimulate short-term growth, their long-term sustainability remains uncertain without greater diversification. Both external and domestic investments emerge as critical drivers of long-term growth, while persistent challenges such as inflation and unemployment continue to pose risks to economic stability. The study highlights the need to reduce reliance on oil and leverage human capital to build more resilient economies capable of adapting to future challenges. By offering dynamic, empirical insights into the balance between resource reliance and sustainable growth, this research adds valuable insights to the policy discussion on economic diversification in the GCC. Policymakers are urged to prioritize FDI, inflation management, domestic capital formation, and human capital development to mitigate vulnerabilities and ensure sustainable economic growth in the face of ongoing global uncertainties.

“She” power: role transition and self-empowerment of women in rural tourism

It is widely believed that participation in tourism empowers women, particularly by providing direct employment and income generation. However, this perspective frequently overlooks women’s agency and self-actualization. This study examines the Tingsong Cultural Community (TCC) in northeast China, integrating self-empowerment with role theory to focus on female participation in tourism. Utilizing multiple data collection strategies, both primary and secondary data were gathered between July 2019 and December 2022. Through inductive thematic analysis, the research unpacks the role transitions of Chinese rural women within tourism practices and the dynamics of self-empowerment. The findings reveal that: (1) role transition is a dynamic process involving exploration, identification, and obligation, marked by an enhanced sense of self-empowerment; (2) self-empowerment arises from awareness and interaction, benefiting from economic, cultural, and subjective dimensions; and (3) external support is essential for empowerment, ideally starting with vulnerable individuals to allow self-empowerment to develop organically. This study refines the concepts of role theory and self-empowerment while establishing the relationship between rural women’s role transitions and self-empowerment, contributing to existing knowledge. The practical implications related to external investment, endogenous development, and digital engagement are insightful for the sustainability of similar destinations.

ФОРМУВАННЯ ФІНАНСОВО-ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ ПІДПРИЄМСТВА З ПОЗИЦІЇ СТРАТЕГІЧНОГО ПІДХОДУ

The article analyzes approaches to the concepts of "financial potential" and "investment potential", reveals their content and features. Based on the results of a critical analysis of scientific sources, it is justified that the financial and investment potential of the enterprise must be considered as a single definition, which is determined by a set of general characteristics. Based on the conducted research, the author's definition of the concept of "financial and investment potential" of an enterprise is proposed. The financial and investment potential of an enterprise is the ability of an enterprise to accumulate a set of internal and external financial and investment resources, to use them as efficiently as possible for the purpose of obtaining economic benefits, to ensure strategic and tactical development goals. It has been proven that the financial and investment potential of a business entity has a number of varieties. The classification features of the financial and investment potential of the business entity are singled out, namely: according to the time required to achieve a certain value of the financial and investment potential of the business; depending on the degree of realization of the financial and investment potential of the business entity; depending on the method of obtaining information necessary for assessing the financial and investment potential of the business entity; on the basis of the expected results of the realization of the financial and investment potential of the enterprise. The classification of factors affecting the financial and investment potential of a business entity is generalized. The sequence of development and implementation of the strategy for the formation of the financial and investment potential of the enterprise is proposed. It determines the priority directions of development, the sources of investment resources and the sequence of stages of realization of long-term financial and investment goals, which ensure the overall development of the enterprise's activities in the future. The formation of the financial and investment potential of the enterprise in the strategic perspective is aimed at restoring the stable state of enterprises, including as a result of investment. And it includes the effect of the joint action of financial and investment resources, combining current and strategic goals with the possibility of attracting internal and external sources for financial support of the enterprise's investment activities.

Can enterprise ESG practices ease their financing constraints? Evidence from Chinese listed companies

Under the guidance of the United Nations SDGs target framework, enterprises' ESG practices of developed countries can effectively promote external investors' ESG investment, thus easing enterprises' financing constraints. Using the data of Chinese A-share listed companies in the Shanghai- and Shenzhen-stock exchange markets from 2013 to 2022, this study explores the causal relationship between enterprises' ESG practices and their financing constraints to provide Chinese experience, examines the mediating effect with corporate transparency and investor sentiment, and analyzes the heterogeneity with external auditor type and earnings management motivation. It is found that enterprise ESG practices can enhance their financing ability by improving corporate transparency and suppressing investor sentiment; for the non-Big 4 audit listed companies and the listed companies with the weak motivation of earnings management, the corporate ESG practice has a more significant effect on their financing ability. This study enriches the research on the relationship between ESG practice and ESG financing by providing Chinese evidence.

Propuesta para desarrollar el turismo y actividades conexas en el área rural (Creación de empresas comunitarias en un enfoque de RSE)

Although there is a law to promote tourism, applying it is difficult due to the current contextual conditions in Bolivia. The objective of the research is to define some regulatory actions that should be developed to encourage the creation of productive community tourism businesses in the area rural, generating incentives for locals. The present work is qualitative descriptive, for this purpose the experiences developed in other countries are compared and based on consultation with experts and inspired by Corporate Social Responsibility (CSR), a proposal is developed that could respond to the peculiarities of this reality. The proposal establishesthe development of specific tax exemptions and a tax incentive from the use of the Corporate Profits Tax (IUE) in coordination between the community companies created and the communities based on their social control, with a differentiated treatment with external investors and in national parks in addition to a State that assumes different roles than those it has traditionally assumed in recent years.

Financial Analysis of COFCO Capital under the Framework of Harvard

In recent years, COFCO Capital will continue to benefit from the synergistic advantages of the gold-control platform and the release of dividends from state-owned enterprise reform. The company has industrial advantages in the direction of strategic layout of food security, and realizes rapid growth in revenue and profit. Taking COFCO Capital Corporation, a professional finance company and investment platform under COFCO Group, as an example, this study applies Harvard financial analysis method, selects data from the 2018-2022 annual report, and comprehensively analyzes COFCO Capital Corporation's current operating status, competitive advantages, and future development potential in four dimensions: strategy, finance, accounting, and outlook to provide decision-making reference for the company and relevant stakeholders. It is found that the enterprise's solvency and operating ability are good, but its profitability and growth ability are in poor condition. It is proposed that solutions should be explored in terms of internal management and external investment and financing to improve its financial status and operational performance, which provides a reference for the company and relevant stakeholders to make decisions.

Gi’iko Ce:mo’oidag: A proposal for urban-agrarian development in the Gila River Indian Community, Arizona

The urban fabric of the Phoenix Metropolitan Area (PMA) is becoming inhospitable. Contributing factors are: low population density, dependence on automobiles and air conditioning, Urban Heat Island effect, uncertain water supply, lack of sustainable policies, and low community connectivity. Failing to adapt could spell the end of the PMA’s life cycle. This paper highlights the Indigenous Akimel O’Otham as key agents of sustainable change in this region, on account of their espousal of sustainable values; and their water rights reclamation allocating resources for agricultural development, of which the tribe has already undertaken the Pima-Maricopa Irrigation Project (P-MIP). The design presented offers a possible avenue for the tribe to complement P-MIP’s ambitions with urban-agrarian development, diversifying the uses of their water supply. The proposal is accompanied by a speculative financial plan to ensure their independence from external investment. This could contribute to fostering urban change and promoting a more resilient future.

Стратегічні пріоритети формування економічної безпеки і диджиталізації управлінської звітності для розвитку малих форм господарювання на сільських територіях

The article is dedicated to examining the fundamental strategic priorities for developing managerial reporting in the context of economic security for small-scale enterprises in rural areas, considering the growth of agribusinesses in Ukraine and worldwide. It has been demonstrated that integrating digitalization into managerial accounting significantly improves the efficiency of the information support system for agricultural enterprises. Approaches have been proposed to establish optimal managerial reporting for small-scale enterprises in rural areas. It is noted that implementing digital technologies in reporting dramatically enhances the transparency and accuracy of financial operations, allowing for the timely identification of financial risks and the prevention of undesirable losses, thereby maintaining the economic security of agribusiness enterprises. Small enterprises in rural areas, which are limited in resources and opportunities for obtaining credit or external investments, can. However, they leverage digitalized reporting systems to improve their financial reliability when collaborating with potential investors and creditors. Moreover, the digitalization of managerial reporting facilitates the optimization of management processes, allowing for more rational planning of the enterprise’s available resources. To this end, we analyzed data from a sheep farming enterprise. In calculating economic indicators in managerial reporting, a developed format for digitalized accounting and reporting information is presented for small-scale enterprises involved in sheep farming. The decrease in the number of sheep and the productivity of products (milk and wool) by 4% from the planned volumes relates to the low quality of fodder, which directly affected the economic results of the agrarian business enterprise. At the same time, the actual revenues of the enterprise turned out to be 4.2% lower than planned due to the fall in the wool market and a slight decrease in revenues from the sale of dairy products. The conclusion is drawn that further implementation of digitalization in accounting processes is advisable to reduce bookkeeping costs. It is substantiated that, in the context of globalization and the digital transformation of markets, the digitalization of accounting procedures is an integral element of the development of management systems, ensuring their adaptability to the challenges of the modern economy. Keywords: agrarian business, strategic priorities, economic development, small businesses, international business, rural areas, enterprise, digitalization, management reporting, economic security.

Green and global? A policy frame analysis of the European Investment Bank’s re-branding from 2018–2023

ABSTRACT This article examines the European Investment Bank’s (EIB) positioning and response to reforms in the European development financing landscape. These reforms aimed to enhance the role of Development Finance Institutions in promoting external investment, threatening the EIB’s privileged access to EU budgetary resources. The EIB responded by creating “EIB Global” and rebranding as the European climate bank. Through framing analysis, this article studies the EIB’s discourse supporting these reforms. It concludes that in striving for institutional survival, the EIB has unintentionally created a situation in which its development and green finance mandates now compete for attention.

Financing and Farm-Gate Pricing Strategies for Agricultural Cooperatives With Cash-Constrained Farmers

Equity investment in agricultural cooperatives (co-ops) is typically limited to farmer-members; yet farmers are usually cash-constrained. In addition to the common stock that is held by farmer-members, many co-ops are changing their financial structure by raising equity from external investors. This helps co-ops to collect capital, but also brings to the fore the conflicting benefits of farmers and external investors. In this paper, we develop a two-stage game-theoretic model to examine a start-up co-op’s farm-gate pricing and financing strategies, considering two types of external fund: preferred stock that bears a fixed return rate and outside stock that shares the net profit (in proportion to equity) with common stock. We characterize the co-op’s strategies in different scenarios and generate the following insights. First, while both types of external equity outperform the case with common stock only, the preferred stock generally outperforms outside stock due to its lower financial cost, higher tolerance for fund size limits, and flexibility in setting farm-gate prices. However, outside stock can outperform preferred stock if it allows a higher fund size limit. Second, the co-op’s financial strategy exhibits a similar structure in equilibrium regardless of whether it is preferred stock or outside stock, despite their distinct financial terms. Finally, farm-gate pricing has a unique role in co-ops affecting the returns to farmers and external investors, which also highlights the conflicting roles of farmers as both patrons and investors when external equity is used.

Unveiling the complex U‐shaped relationship between entrepreneurial orientation and exploratory/exploitative innovations: strategic planning as a moderator

Grounded in agency and stewardship theories, this study investigates the U‐shaped relationship between entrepreneurial orientation and exploratory/exploitative innovations and the moderating effects of strategic planning. Empirical data is collected from 396 A‐share listed public companies in China. Entrepreneurial orientation is assessed via internal R&D and external investment data, while content analysis captures exploitative, exploratory innovation, and strategic planning. The empirical findings yield two core conclusions: (1) This study finds the presence of U‐shaped relationships between entrepreneurial orientation and exploratory/exploitative innovations. As entrepreneurial orientation increases to an inflection point, it exhibits negative effects due to managerial agency behavior; however, beyond this point, it yields positive outcomes due to stewardship. (2) Strategic planning positively moderates the U‐shaped relationships, countering agency impact at low orientation levels while enhancing stewardship at higher levels. These insights advance entrepreneurial orientation research, agency vs. stewardship literature, and provide a roadmap for fostering exploratory and exploitative innovations through strategic integration of entrepreneurial orientation and leveraging of strategic planning.

THE IMPACTS OF INNOVATION EFFICIENCY AND GOVERNMENT SUBSIDY ON EXTERNAL FINANCING: EVIDENCE FROM CHINA

Subsidies from the government and financial resources from external investors play critical roles in supporting firm innovations. We develop a model to empirically investigate the role of firm innovation efficiency in government subsidy allocations and the joint effect of innovation efficiency and government subsidies on external investor decision-making in China. We collect panel data from 337 firms in China over ten years (2011–2021). The results show an inverted U-shaped relationship between innovation efficiency and government subsidies. Both government subsidies and innovation efficiency are positively associated with external financing. Government subsidies positively moderate the impact of innovation efficiency on external financing. The findings provide empirical evidence of the complex relationships among firm innovation efficiency, government subsidies and external financing. In this study, insights are provided into how Chinese government officials and external investors interpret signals of firm innovation. The findings of this study can also be used by managers to attract financial resources and by investors to make investment decisions.

Organizational and economic mechanism of financing agricultural production in conditions of market transformation

The article is devoted to the problems of financial support for agricultural sector of economy of Kazakhstan. The goal is to study organizational and economic mechanism of financing agricultural industry in conditions of market transformation in order to develop recommendations for optimizing this system to improve access to financial sources for agricultural enterprises, develop financial instruments, and promote the expansion of market relations. Methods – abstract-logical, graphic, comparative analysis, generalization. Results - available financial resources for agro-industrial complex are analyzed: budgetary funds, investments, loans based on the use of various state financial assistance programs. The relevance of the study lies in the possibility of implementing individual proposals when developing rules for financing, lending, changing the criteria for subsidizing AIC, as well as the effective use of investment funds, loans and other financial resources. The need for additional attraction of internal and external investors has been identified. Conclusions - the state has a regulatory impact on the investment process by ensuring rational pricing, increasing flexibility of lending, tax and depreciation policies, stimulating business activity by providing investors with benefits, and highlighting priority areas of investment. It is necessary to monitor current and future factors of external and internal environment at the state, regional levels and enterprises. There is a need in the near and medium term for effective measures to financially support production and processing of competitive products, increase the variety of produced goods and maintain high quality at all stages of their production. Financial decisions are the basis for effective investment projects.

Changing Social Movements in Lisbon? Housing Financialisation and Post-pandemic Activism

During the last decade, following years of austerity and rapid growth driven by tourism, real estate, and external investment, Lisbon has become a paradigmatic case of the financialisation/crisis nexus in the housing field. The simultaneous emergence and growth of social movements for the right to housing has been widely documented, with some accounts focusing on anti-financialisation struggles. In this article, we present the repertoires and claims of four activist groups and platforms born between 2022 and 2023 and discuss how Portuguese social movements are contending with the increasing centrality of financialisation in housing. In sum, we present three broad patterns of rescaling – intersectionality, internationalisation, and relations with political parties – in relation to the general endeavour to build a mass movement.