National Firms Research Articles

Internationalisation as a boost for many firms: evidence from Germany

AbstractThe advantages of globalisation have been increasingly called into question, and protectionist tendencies have entered the stage. So what experiences have firms had after going international in an open economy over the past years? With respect to foreign investor takeovers of initially national firms, we see predominantly positive effects for acquired manufacturing firms in terms of productivity, sales and expenditures on the labour force – likely due to higher employment – in the short and long term. Looking at the results, firm size matters: positive effects are stronger among large firms. In the case of firms starting to invest abroad, positive effects are very rare and limited to short-term sales of acquiring small manufacturing firms. All in all, the largely positive evidence is generally supportive of internationalisation and thus largely contradicts the negative views sometimes present in the public sphere, though even unaffected firms may see themselves as relative losers.

CEO power and firm risk at the onset of the 2007 financial crisis and the COVID-19 health crisis: international evidence

AbstractWe investigate the association between CEO power and firm risk at the onset of the global financial crisis in 2007 and the COVID-19 pandemic health crisis in 2020. Examining an international sample of publicly listed firms in the G7 nations between 2006 and 2021, we show that firms led by CEOs with greater power are exposed to higher risk than firms led by CEOs with lesser power. The result is primarily driven by the impact of CEO power on idiosyncratic risk rather than systematic risk. Further, we find that powerful CEOs tend to be more cautious and conservative during crises that they have no reference for or experience of, as in the case of the pandemic, during which the positive power–risk associations are less pronounced. Nevertheless, the power–risk association remains relatively unchanged during the more familiar financial crisis. This study has important implications for firms, investors, regulators, and policymakers.

Marketing technologies of promoting products on the internet

In the course of the present research the authors conducted a literary review of 16 scientific publications, including 2 textbooks, 2 monographs, 3 articles in international journals Scopus, 4 articles in journals recommended by CQASHE of MSHE of the RK, 5 articles in the database Google Scholar. As an analysis of the literature shows, the issues of tools and technologies for promotion in the Internet environment remain open and debatable. One of the most important digital solutions for product promotion are virtual exhibitions, which, however, have not been sufficiently studied and reflected in modern scientific literature on marketing. Therefore, virtual exhibitions are the subject of study in this paper. The purpose of the study is to develop practical recommendations for organizing and holding virtual exhibitions as an effective tool for the successful promotion of goods and services on the market. The main directions of the research are the study of world, Russian and domestic experience in carrying out online exhibition activities for its use in the activities of Kazakh enterprises. The idea of the study is to create a virtual platform in Kazakhstan to assist national firms in holding virtual exhibitions. The results of the study are that the authors have developed a model of marketing technologies for promoting products on the Internet, and offered practical recommendations for the creation and operation of a specialized exhibition company for organizing virtual exhibitions. Kazakh companies can use the authors’ recommendations for holding virtual exhibitions to successfully promote their products. In addition, the results of the study will be used to teach courses in «Digital Marketing» and «Marketing Communications».

Специфика принятия финансовых решений национальными менеджерами

The article considers the main prerequisites for the formation of a specific model of financial decision-making by managers, examines its input data through the prism of the main criteria of entrepreneurship: risk appetite, ownership relationships, income generation and management functions. Revealed that in the conditions of globalization, under the influence of the loss of orientation, managers form a new type of thinking that is not just influenced by the environment, but also tries to copy it, that is, global values and guidelines achieve irrevocable dominance over local ones, and the business behavior model of managers of national firms is unified with other foreign models, as a result what is the unification of the model of business behavior of firms and the synergy of economic behavior in the economy of countries as a whole. In the conditions of modern hypermobility, the integration impact on national entrepreneurs acquires signs of extreme power and pervasiveness. Analyzed the motivational mechanism of financial decision-making by national managers. Proved that the decision-making mechanism of managers can be considered as based on internal patterns of behavior (habits) or external role models.

Integrated water resource management in the decision-making of large firms in Morocco: Case of Managem group (Hydraulic basin of Tensift AL Haouz)

Water resources and economic growth are two preoccupations that take different senses. The overconsumption can be very costly in terms of the quantity and quality of water resources, which indulges many negative impacts on water reserves. In arid zones, institutions and large national firms are obligated to deliver more efforts in term of adaptation to the area’s hydraulic situation. In this work, we addressed the issue of integrating good governance of water resources into the decision-making process of large firms in Morocco. We studied the case of the Guemassa mine of the Managem group, located in the Tensift Haouz basin. In order to assess the efficiency of their strategy, we carried out an impact study of the company’s mining activities on the quality and quantity of the region’s waterresources and we provided key information on the hydraulic situation of the region in question. As a result, the company is monopolizing a large part of the water resources of the Haouz plain and their integrated water resource management strategy is deemed insufficient.

Audit committee characteristics, external audit quality, board diversity and firm performance: evidence from SAARC nation

Purpose The purpose of this study is to investigate the association between three corporate governance (CG) idiosyncrasies, namely audit committee characteristics, external audit quality (AQ), board diversity and firm performance (FP) in the South Asian Association for Regional Cooperation (SAARC) nations.Design/methodology/approach The study used a sample of 200 listed nonfinancial firms in the SAARC nations from 2012 to 2021. The System Generalized Method of Moment model was applied to the data consisting of 2000 firm-year observations. The Generalized Estimating Equation population-averaged model was also employed for added robustness. The study employed Tobin's Q as the measure of FP.Findings The findings revealed that amongst the CG variables tested, external AQ exhibited a significantly positive relationship with Tobin's Q. Significant negative influences on FP have been demonstrated by the variables of audit committee meeting and board's independence. Furthermore, gender diversity, CEO duality, audit committee strength and independence failed to record any significant association.Originality/value This study is one of the first to investigate the association between CG idiosyncrasies and FP in the SAARC nations. The study findings have important implications for policymakers and regulators in the region.

The History and Mystery of the Public Accounting Firm of Barrow, Wade, Guthrie & Co. (1883–1950)

ABSTRACT The late 1880s saw the rise of early public accounting practice in the United States and the origin of emerging national firms, one of which was Barrow, Wade, Guthrie & Co. (BWG). BWG served a broad range of clients, from railroads to breweries, and a variety of financial and other commercial enterprises. This project was started as a search for the answer to a mystery surrounding early audit reports and then developed into a history of BWG from its origin until the merger with Peat Marwick in 1950. Throughout its existence, BWG was at the forefront of the trends in public accounting practice. The firm and its employees were leaders in all aspects of the developing CPA profession. The paper contributes to historical literature and advances the understanding of the earliest periods of public practice by emerging public accounting firms.

Environmental Product Declaration Approaches on the Brazilian Experiences: A Review

The Environmental Product Declaration (EPD) is a type of label that has been considered reliable and complete, and it is commonly used in purchasing decisions, product design definition, environmental communication, data sources, and other applications. This article examines the approaches for the development of EPD in the Brazilian context, taking into account the initiatives of interested parties as well as the circumstances for its adoption by national firms. This work adds value by assessing which works in Brazilian literature and experiences focus on EPD, contextualizing the issue, and offering this type of label as a strategic resource. Between 2015 and 2022, the bibliographical survey uncovered 20 works. The Prisma 2020 checklist was utilized to conduct the systematic review, and the analysis in this study was both quantitative and qualitative. Since NBR ISO 14025 (2015), the publications have been consistent. Only 35% of the review content was obtained from journals, with 6 of the 7 publications resulting from academic works from their authors' postgraduate training processes, indicating a concentration of studies by a few scholars, all linked to universities in Brazil's south and southeast. Studies have shown that EPD is a valuable tool for environmental management due to its consistency, reliability, and completeness of data. However, due to a lack of Brazilian experience, this resource is not commonly known, disseminated, or employed. EPD has potential to be used as a strategic resource for businesses due to Brazil's normative, legal, and structural conditions for adoption.

How Do Productivity Benefits Spill Over Across Firms? Explorations in a Heterogeneous Firm Applied General Equilibrium Trade Model

Considerable diffusion of technology occurs via global trade and foreign direct investment (FDI) while firm heterogeneities cause considerable production heterogeneities. Hi-tech products and investment goods of differentiated varieties from emerging and developed economies are vehicles of superior technology. Given this stylized evidence, we analyse factors facilitating (or inhibiting) technological spillover to domestic firms in the host nations in a counterfactual scenario of a Trans-Pacific-Partnership (TPP) deal. By using a mixture interface of global computable general equi-librium (CGE) models of FDI (GTAP-FDI) and firm heterogeneity model of Global Trade Analysis Project, GTAP Heterogeneous (GTAP-HET), we calibrate impacts of trade and FDI spillovers on: (i) global production, (ii) trade patterns, (iii) welfare and (iv) regional productivity gains. Importance of regional trade agreements and policy for productivity spillovers is highlighted.

СУЧАСНА ТЕОРІЯ МІЖНАРОДНОЇ ТОРГІВЛІ

International trade is a system of international commodity-monetary and economic relations, consisting of foreign trade of all countries of the world. International trade is the central link of the link of global economic relations, mediating almost all types of international division of labor and connecting all countries of the world into a single international economic system. The purpose of the article is to highlight the problematic aspects of the modern theory of international trade. Methods used in the research: comparison, comparative analysis, systematization and logic, etc. The hypothesis of the study was the assumption that trade is a means by which countries can develop specialization, increase the productivity of their resources and, in general, increase the total volume of production (develop as a whole). Presenting main material. Economic and political risks in international trade are determined by geographic, political, and demographic factors. Modern international trade is dynamic. The structure and volumes of exports and imports of the turnover of various countries and regions of the world are rapidly and continuously changing. Originality and practical significance of the research. Modern theories of international trade either develop the principles of classical theories, extending them to a larger number of goods, countries and factors of production, or study certain aspects of international trade that for some reason remained unexplained by classical theory. Conclusions. The competitiveness of large national firms is certainly oriented towards national ones. To analyze their activities, Porter's concept of the value chain (value chain, production chain) is used, i.e. the set of business operations of the firm during which it creates added value. Concentration on the company's most expensive links of this chain (for example, R&D and sales) and the transfer of other operations to partner firms (foreign or domestic small and medium-sized enterprises) allows TNCs to maximize the production of added value. For example, the American company Nike dominates the world market of sportswear and shoes, but it almost does not produce them itself, because it distributes orders mainly to foreign partner companies and specializes in design and logistics.

Glasgow climate pact and the global clean energy index constituent stocks

PurposeThis study examined the impact of the Glasgow Climate Pact on the abnormal returns of global clean energy stocks. Further, this study examines which country-specific and firm-specific variables drive the cumulative abnormal returns (CARs) of clean energy stocks.Design/methodology/approachThe authors used the event study method and cross-sectional multivariate regression model. The clean energy stocks in this study are limited to 81 constituent firms of the S&P Global Clean Energy Index across 17 nations. The final sample includes 80 firms and the sample period ranges from January 26, 2021, to December 07, 2021.FindingsThe study finds that the Glasgow Climate Pact negatively affects the stock returns of clean energy firms. Moreover, the climate change performance index (CCPI) positively impacts cumulative abnormal returns (CARs), signifying that clean energy investors react positively to firms in nations with good CCPI scores. The environmental, social and governance (ESG) measure for the shorter window (−1, +1) exhibited a negative relationship with CARs. The firm-specific variables (BTM, stock liquidity, size and past returns) exhibit a negative relationship with CARs in different event windows.Research limitations/implicationsThe authors use the CCPI as a proxy for the stringency of environmental policies in any nation. The authors extend the existing literature by employing firm-specific variables and supporting previous findings. Their findings have policy implications for clean energy investors, policymakers and other market participants.Practical implicationsClimate risks impact the global financial market, so the findings have implications for global regulatory bodies. Currently, there are bankruptcy cases due to climate risks. Because financial markets must play a critical role in shifting the economy toward a green one, regulators can use the cross-sectional drivers of this study to shape policy. It is also critical for regulators to reduce stock price volatility in the event of the implementation of environmental regulations and improve environmental disclosures by publicly traded companies. Furthermore, governments are interested in researching the effects of environmental regulations to protect stakeholders' interests. These regulations significantly impact emerging markets because they lack the same solid institutional frameworks as developed markets.Originality/valueThe authors provide evidence that firms with better ESG scores and larger firm sizes have experienced fewer abnormal returns, as these firms have stable financial and non-financial fundamentals. This timely study on the ongoing regulatory shift in environmental policy will help investors, policymakers, firms and other stakeholders make relevant decisions.

Unbundling the State: Legal Development in an Era of Global, Private Governance

AbstractWhat happens to a public, domestic institution when its authority is delegated to a privately run, transnational institution? I argue that outsourcing traditionally national legal responsibilities to transnational bodies can lead to the stagnation of domestic institutional capacity. I examine this through a study of international commercial arbitration (ICA), a widely used system of cross-border commercial dispute resolution. I argue that ICA provides commercial actors an “exit option” from weak public institutions, reducing pressure on the state to invest in capacity-enhancing reform. I find that the enactment of strong protections for ICA leads to the gradual erosion of the capacity of domestic legal institutions, particularly in countries with already weak legal systems. I test the mechanism driving this dynamic using dispute data from the International Chamber of Commerce. I find that pro-arbitration laws increase the use of international arbitration by national firms, suggesting that firms use ICA as an escape from domestic institutions. This article contributes to debates on globalization and development as well as work on the second-order effects of global governance institutions.

Impact of Foreign Direct Investment From Offshoring on the Efficiency of Russian Companies

This paper examines the impact of foreign direct investment (FDI) from offshoring and developed countries on the efficiency of Russian companies. The empirical basis for this analysis includes the financial performance of 18,804 domestic companies from 2013 to 2020, which provided 150,432 data points. The research methodology included panel regression and DEA data shell analysis, which enables comprehensive analysis of a company’s performance in comparison with other companies. Both horizontal and vertical spillover effects were determined in order to trace the effect of offshore companies. Horizontal spillover consists of the side effects on productivity that exclusively national firms are subject to when operating in the same industry alongside firms with foreign investment. Vertical spillover is due to reciprocal and direct links between foreign companies and their suppliers and buyers. This study indicates that efficiency measured in terms of spillover effects is greater for companies with FDI from white offshores than for companies with FDI from gray and black offshores. Furthermore, the efficiency of investment from developed countries in terms of spillover effects is greater than that of investment from gray and black offshores. The spillover effects from investment by gray and black offshores is negligible because of the return of capital. These results may be informative for the top management of Russian enterprises, shareholders, boards of directors, specialists from financial and tax services, analysts, the Ministry of Finance of the Russian Federation, the Federal Tax Service and other interested parties.

Nature-inspired innovation policy: Biomimicry as a pathway to leverage biodiversity for economic development

One of the most important challenges of the 21st century is the quest for economic development models that respect the planet's ecosystem. Rather than imposing our industrial systems on nature, why not let nature influence our industrial and innovation systems?From wind turbine blades to bullet trains and solar cells, many of the technologies we rely on today have been inspired by solutions found in nature. Although relatively widespread in the fields of architecture and engineering, biomimicry/biomimetics remains largely overlooked in economics, public policy, and development studies. This is paradoxical because the world's remaining biodiversity stock-a knowledge bank of solutions to both current and unknown challenges- is largely held in developing economies and can be leveraged as a source of inspiration for -and entry door to- industrial innovation. This paper, therefore, investigates the relevance of biomimicry in the formulation of sustainable development strategies in biodiverse developing countries and maps out the national policy landscapes that can advance it.Several findings arise from this study. First, despite the exponential growth of biomimicry as a field and our understanding of its economic impact, what drives nature-inspired innovation remains elusive. Second, the biomimicry innovation landscape is dominated by industrialised economies that have relied on proactive policy interventions, while virtually no developing country has adopted biomimicry as an innovation strategy, consolidating the exploitation of the biodiversity in the developing world by firms in high-income nations. Third, by drawing on empirical evidence from a selection of Latin American countries, this paper shows that while biomimicry presents tremendous opportunities to leapfrog towards high value-added knowledge-intensive activities by using local biodiversity and related expertise as factor endowments, policy, and institutional factors have led to the persistence of important coordination failures that hinder the expansion and commercialization of biomimicry-based R&D. This paper concludes by discussing the public policies needed to support the integration of developing nations at the innovation frontier through biomimicry.

The ties that don’t bind: trading state debates and role of state capacity in Turkish foreign policy

ABSTRACT The literature on trading states has advanced our understanding of foreign economic policy dynamics, but what constitutes a proper trading state and determines its resilience remains somewhat unclear. This article contributes to the literature by developing a political economy framework to assess the role of ‘state capacity’ in conditioning Turkey’s foreign economic policies. Using Turkey as a case, we argue that states are more likely to show suboptimal economic engagement in case of weak state capacity, as (i) they fail to pursue effective industrial policy resulting in low exit costs, (ii) business elites cannot put pressure on the political leadership for the preservation of existing trade ties in the event of an external shock, and (iii) weak financial support mechanisms lead to insufficient assistance to national firms operating abroad.

The globalization of production, national labour regulations and income inequality in the global North and South, 1980–2013

AbstractA central concern over global value chains (GVCs) is whether the integration of national firms into GVCs exacerbates income inequality within countries. However, despite decades of research, the distributional consequences of GVCs remain unclear in the empirical literature. Drawing on panel data from 96 countries between 1980 and 2013, we examine the effects of GVC integration on market income inequality and whether national labour regulations moderate these effects. We find integration increases inequality in the global North and South. More importantly, we find labour regulations amplify the inequality effects of integration in Southern countries by expanding the size of the informal sector while suppressing these effects in Northern countries by promoting unionization. This suggests institutional power from national labour regulations may enhance the bargaining power of labour in the North through increasing collective resources while disempowering labour in the South through reinforcing labour market segmentation between formal and informal sectors.

REGULATORY ISSUES AND CHALLENGES: GLOBAL NORMS AND RELIGIOUS CONSTRAINTS

Regulation is a balancing act. Different, often contradictory, goals – flexibility and consistency, freedom and strict controls, innovation and crisis-avoidance, consolidation and conflicts of interest, efficiency and consumer protection, openness and protection of national firms – must be applied in proper dosages by people familiar with the political and cultural environment. The audit systems and incentive structures must be flexible yet strict enough to allow innovation but prevent rogue operations. Before the disruptions of the 1970s, regulators performed a mostly technical task outside of the political limelight. In recent years however, virtually every country – including those with well-established regulatory authorities and traditions – has been rocked by banking crises. By October 1998, regulators worldwide were committed to the implementation of the 'Core Principles for Effective Banking Supervision' issued in 1997 by the Basle Committee. Similarly, as of March 1999, the 102 signatories of the December 1997 Free Trade in Financial Services Agreement (under the aegis of the World Trade Organization) were expected to liberalize their markets which is directed at literature research. In this case, The author takes two problems based on the description on the background problem. The formulation of the problem is How the Value of Islam in Islam The Era of Globalization and How Globalization Affects Religious Values Islam. The research methods include: the type of research Library Research is research through literature review or literature. The data sources in this study are primary data, namely books that directly discuss on the Effect of Globalization on Islamic Religious Values. Data analysis techniques used to get the conclusion is descriptive qualitative by drawing conclusions deductively, namely how to draw conclusions from the general to the specific. The author draws conclusions and suggestions that: the influence of globalization covers many aspects of life. However, that doesn't t mean we cannot provide an understanding of globalization that includes all symptoms the. Looking at the aspects of globalization above, we can conclude that globalization is nothing but the application of rational and scientific knowledge to all activities in all areas of life or to all aspects Public.

MACROECONOMIC ANALYSIS OF THE IMPACT OF INNOVATIONS ON THE ECONOMIC GROWTH OF ISRAEL

Abstract. Countries that actively participate in the international division of labor in the globalized world economy are interdependent and have to withstand increasing competition for access to the markets of production factors, product markets, and often for the opportunity to survive, to remain on the political map of the world. An important factor that increases the competitiveness of national economies, makes it possible for them to achieve strategic goals, remains the implementation of scientific achievements in production, through maintaining the innovative activity of domestic economic entities at the appropriate level. There are not many countries in the world that have been implementing an innovative model of economic growth for a long time and, thanks to this, have maintained leadership in the world economy. In our opinion, one of the countries whose experience deserves to be studied by Ukrainian scientists is Israel – a country that, despite the unfavorable external environment, has been demonstrating positive dynamics of economic growth for a long time, the driver of which is the rapid implementation of innovations by national firms. The purpose of the study is to identify the impact of the innovative factor on the rate of economic growth in Israel. The publication examines the mechanisms of influence of innovations and innovative development of the state on the economic growth of a country that is unique from many points of view. Quantitative parameters of this influence were revealed using the construction of a correlation model, which confirmed the existence of a direct relationship between the introduction of innovations in production and the rate of development of the Israeli economy. The direct impact of the innovative component of business activity on such macroeconomic indicators as GDP, GDP per person, the number of exports and the amount of attracted foreign direct investments has been proven. It has been confirmed that the sector that generates innovations is a significant factor in attracting investments into the economy and increasing the share of the country’s high-tech exports. It also forms one of the biggest advantages that provide Israel with positive dynamics of real GDP growth and improvement of other indicators, including an increase in the level of employment, an increase in the competitiveness of the national economy, and a decrease in its import dependence. The experience of Israel is indicative, useful, important and worth imitating for Ukraine, as it demonstrates the approaches and directions in which the economy can and should be developed in conditions of instability and the impossibility of reliably predicting the development of events. To achieve the goal of the research, the following methods were used: generalization – to analyze economists’ views on the object of research; analysis and synthesis – to clarify the main scientific categories used in the article; graphical analysis – to visualize research results and statistical data; logical – to determine the factors of economic growth in Israel; comparative analysis – to assess innovative activity and the level of competitiveness of the Israeli economy; correlation-regression analysis – to create a model of the influence of factors of competitiveness of the national economy on macroeconomic indicators reflecting the level of economic development of the country. Key words: innovations, correlation analysis, innovative development, global innovation index, economic growth, competitiveness.

Impact of Country-Level Governance and Ownership Concentration on Firm Value in Central Europe

Purpose: The article considers country-level governance factors (legal/regulatory system and financial development) and ownership concentration that impact the value of non-financial firms in Central European nations, specifically by describing a study done in Austria, Czech Republic, Germany, Hungary, Slovenia, and Switzerland. Methodology: A fixed effect panel data regression analysis was applied to a strongly balanced panel data using a collection of six diverse Central European countries’ non-financial firms across the sample period of 2010–2020. Results: According to regression analysis, the legal and regulatory system as well as financial development have a positive relationship with firm value. The firm’s value rises as the legal and regulatory system improves. Furthermore, the growth of financial markets adds to the firm’s value. However, our study reveals a negative relationship between ownership concentration and firm value, which indicates that ownership concentration is too high to allow for effective supervision, implying that more ownership concentration lowers firm value, as the expropriation theory suggests. Originality: The study examines the value of a firm by incorporating both country- and firm-level factors, which broadens the current literature’s insight. Implications: Overall, our findings add to the literature on the value of non-financial firms by providing new significant information. Some of the recommendations may be beneficial to the long-term success of non-financial companies.

How Do National Firms Respond to Local Cost Shocks?

Recent research shows prices are insensitive to local demand conditions because national chains charge geographically uniform prices. We examine the price response to local cost shocks, including 68 excise tax changes, 76 sales tax changes, and other geographically based cost differences, using data on 35,151 retail stores in 96 multi-state chains. We find local cost shocks are passed through to local prices, with no spillovers to unaffected stores in otherwise affected chains, and at similar rates for national and local chains. Firms adjust local prices according to local cost changes, suggesting retailers respond asymmetrically to local cost and demand shocks. (JEL D22, D40, H22, H25, H71, L10, L81)