Business Freedom Research Articles

Financial performance drivers in BRICS healthcare companies: Locally estimated scatterplot smoothing partial utility functions

AbstractThe Healthcare sector is increasing in importance and relative size in BRICS countries (Brazil, Russia, India, China, South Africa). Despite BRICS relevance, the financial performance of their healthcare companies has been scarcely studied. This research fills this literature gap not only by focusing on the impacts of such diverse business environments on the financial performance of healthcare providers but also by proposing a novel approach to estimate an overall financial performance index based on weighted additive utility functions given a set of financial performance criteria. Precisely, bootstrapped Singular Value Decomposition is the cornerstone for identifying an orthogonal base of rotated financial performance criteria, upon which partial utility functions (PUFs) are estimated using locally estimated scatterplot smoothing (LOESS) polynomial regression. A compromise weighting scheme between singular values and quadratic programming results for minimal covariance and joint entropy matrices of residuals was used for summing up the PUFs. Results indicate that the values of financial performance range between 0.7 and 0.85. We further find that current assets, level of debt and liability, the company's Tobin Q are related to the financial performance. Besides, business freedom, government integrity, tax burden, monetary freedom and government spending are also the determinants of financial performance.

독일제국의 종합금융기업 드레스트너뱅크(Dresdner Bank): 지역에서 제국으로

This paper studies and analyzes the background, crisis response, business policy and performance of the German Dresdner Bank in 1850-1904. Dresdner Bank was founded locally, but was a financial institution that succeeded in expanding its field of activity in the center of Germany and across the country. In June 1867, the customs union and the so-called “freedom of business” served as an important foundation for the development of Saxony’s business activities. As a result, Saxony was one of the most industrialized regions in Germany economically, which was a major basis for business and finance to grow. There are three points to note in the development of Dresdner Bank. First, this bank was under the universal banking system at the time. This is a financial system that has various areas of business in addition to the bank’s own corporate loan business. Secondly, Dresdner Bank was a regional bank that started its activities with roots in the Saxony region, but successfully advanced into the center of the German Empire, namely Berlin and other regions of Germany and the world. Third, it is an active and aggressive response, strategy and business execution to the rapidly changing economy and the crisis of the bank''s key personnel. However, it was not without problems. Financial activities through political relations were frustrated, as in the case of Hiberna, and also left a mark on reputation. Participation in corporate management was also a business area that had to be given up for Dresdner Bank at the time. For the sake of the bank’s profit, the systematic absorption of available local funds and lending to large corporations outside the region did not correspond to the local sentiment at the time. In particular, it was true that expansion through aggressive mergers and acquisitions left a negative impact on the sound corporate image. (Youngsan University / yensupark@yahoo.com)

The Impact of Institutional Dimensions on Entrepreneurial Intentions of Students—International Evidence

Acknowledging the role of different forms of entrepreneurship to continued economic prosper-ity and the role of institutional dimensions on entrepreneurship, this paper investigates if and to what extent a selected number of institutional dimensions influence students’ intentions to ei-ther start a company or take over an existing one. Based on a Global University Entrepreneurial Spirit Students’ Survey (GUESS) dataset and international country-level databases, evidence shows that both entrepreneurship options are hampered by corruption and limited business freedom while promoted through favourable labour regulations and trade freedom. Property rights, fiscal freedom, government spending, monetary freedom, and investment freedom only affect start-ups, while financial freedom adversely affects both options. The study provides new insight into the impact of institutional dimensions on different types of entrepreneurship. Thus, in contrast to extant research in this area, it goes beyond the typical focus on start-ups. Evidence also suggests that male students prefer starting a new company, while female students seem to prefer a takeover. This improved understanding could help in not only designing more targeted entrepreneurship and entrepreneurial financing policies but also in improving entrepreneurship education.

Impacts of Political Stability on Shadow Economy: Evidence from Bay of Bengal Initiative for Multi-sectoral Technical and Economic Cooperation Countries

The issue of political stability and the shadow economy is the most vital concern for sustainable development. However, the relationship between them is yet to be explored. Particularly, in the context of Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation Countries (BIMSTEC) countries, there are no studies that have examined the influence of political stability on shadow economy. This study fills these gaps. Using panel data from 1998 to 2015, this study empirically investigated whether and how political stability affects shadow economy. Findings indicate that political stability has significant negative effects on the size of shadow economy. We also observed that regulation freedom, fiscal freedom, business freedom, trade freedom, government integrity, government spending and gross domestic product (GDP) growth have significant negative effects, while unemployment has significant positive effects on the shadow economy. Findings of this study imply that governments and policymakers should make efforts to ensure greater political stability in their countries, which will lessen the size of shadow economy that, in turn, will accelerate economic growth. The present study adds to empirical literature of the analogous issue by confirming (or else) the findings of past studies carried out across the world. The findings indicate that there exists a positive association between the extent of political stability and the shadow economy for BIMSTEC countries.

The Influence of Agricultural Farmers' Entrepreneurial Behavior on the Business Performance of Dairy Farmers in Andhra Pradesh

In the present worldwide serious business and industrialization, entrepreneurs can assume a larger part. The innovative movement has an immediate bearing on the country's financial development. It fills in as an impetus during the time of industrialization and monetary turn of events. Entrepreneurship is the focal power of monetary action, which is needed for the advancement of the country. The innovative characteristics contribute to pay, fearlessness and a wellspring of accomplishment. Entrepreneurs are the critical people of any country in advancing financial development and innovative change. The dairy area plays a multi-faceted part in the financial improvement of country family units. Animals’ raising emphatically affects value regarding pay; and work and neediness decreases in provincial territories. Dairy is a significant aspect of farming development and is additionally considered as a possible area for trade income. India has the biggest milk maker of milk on the planet. Dairy endeavor turns out to be nonstop revenue as well as gives great business freedoms to the poor provinces. Current investigation was conducted to know the innovative conduct of dairy farmers in Vizianagaram District of Andhra Pradesh in 2020 with 240 dairy entrepreneurs. The significant discoveries of the investigation were that a large portion of the prepared dairy farmers were in the medium to the high enterprising class and that lion's share of dairy farmers had an undeniable degree of pioneering qualities viz: self-confidence, achievement motivation, innovativeness, and risk-orientation.

Impact of regulatory efficiency and market openness to social and financial efficiency: empirical evidence from microfinance institutions

PurposeMicrofinance institutions (MFIs) play a significant role in society to help low-income consumers that liaise with sustainable development goals. Therefore, the purpose of this paper is to examine the effects of two economic freedom components, namely, regulatory efficiency on business freedom and monetary freedom; and market openness on investment freedom and financial freedom. Their influence on the efficiency of MFIs in both social and financial ways is examined.Design/methodology/approachThis study collected a total of 88 MFIs from Thailand and the Philippines for the years 2011 to 2017. The data envelopment analysis approach has been used to measure the MFIs’ efficiency level. Then, the ordinary least squares and generalised least square estimation methods serve to analyse the effects of economic freedom and other determinants on efficiency.FindingsThe results show that overall MFIs operate at an encouraging level. However, they were managerially inefficient when exploiting resources to achieve both social and financial efficiency. Therefore, MFIs should focus more on managerial operations to improve the level of efficiency. Results from panel regression analysis showed a mixed outcome for the relationship between economic freedom and MFIs’ efficiency both financially and socially. This suggested that different freedoms will result in different outcomes and significantly influence MFIs’ financial and social efficiency.Originality/valueRegulatory efficiency and market openness are the vital aspects of economic freedom components that may significantly influence MFI’s performance specifically on social and financial efficiency. This study fills the research gap by examining the relationship between economic freedom components and specific MFIs’ social and financial efficiency, to ensure MFIs work to achieve sustainable development goals.

Impact of Economic Freedom on Corruption Revisited in ASEAN Countries: A Bayesian Hierarchical Mixed-Effects Analysis

Conceptual and applied studies assessing the linkage between economic freedom and corruption expect that economic freedom boosts economic growth, improves income, and reduces levels of corruption. However, most of them have concentrated on developed and developing groups, while the Association of Southeast Asian Nations (ASEAN) countries have drawn much less attention. Empirical findings are most often conflicting. Moreover, previous studies performed rather simple frequentist techniques regressing one or some freedom indices on corruption that do not allow for grasping all the aspects of economic freedom as well as capturing variations across countries. The study aims to investigate the effects of ten components of economic freedom index on the level of corruption in ten ASEAN countries from 1999 to 2018. By applying a Bayesian hierarchical mixed-effects regression via a Monte Carlo technique combined with the Gibbs sampler, the obtained results suggest several findings as follows: (i) In view of probability, the predictors property rights, government integrity, tax burden, business freedom, labor freedom, and investment freedom have a strongly positive impact on the response perceived corruption index; (ii) Government spending, trade freedom, and financial freedom exert a strongly negative effect, while the influence of monetary freedom is ambiguous; and (iii) There is an existence of not only random intercepts but also random coefficients at the country level impacting the model outcome. The empirical outcome could be of major importance for more efficient corruption controlling in emerging countries, including ASEAN nations.

Natural Resources, Governance, and Corruption

: In efforts to explain the resource curse, researchers have examined the connection between the resource curse and national corruption. Because being relatively rich in natural resources may encourage rent-seeking behavior, some have speculated that the root cause of the curse might be corruption rather than an abundance of natural resources. The evidence is mixed. This article turns the question around and asks, given political, cultural, institutional, and economic influences, whether there is a statistical relationship between resource abundance and corruption. The focus is on the interaction of autocratic governance and resource abundance. The results suggest that the rents on natural resources alone are not a strong cause of corruption. There is evidence that natural resources combined with autocratic governance influences corruption but, after controlling for other influences the relationship is not strong and the results are sensitive to the way that corruption is operationalized. Meanwhile, several non-resource variables including, larger government, more competition, political stability, and business freedom do seem to reduce national corruption. The study is based on 125 nations using average 2012–2016 variable values.

Access to venture capital in Africa: the role of public institutions and corporate governance

The venture capital market in Africa remains relatively undeveloped. But, over the last decade, Africa has received much interest from venture capitalists. It is one of the most attractive emerging markets. Investor confidence has increased due to the performance of venture capital firms. The objective of this study is to indicate the influence of public institutions and corporate governance on access to venture capital in Africa in 2019. Based on multiple regression analysis, the relationships between public institutions, corporate governance and access to venture capital are identified. The results show that the strength of auditing and accounting standards, business freedom, fiscal health and judicial effectiveness had significant and positive effects on access to venture capital. However, shareholder governance and trade freedom had significant and negative impacts on access to venture capital. The study underlines that policy-makers in Africa have a considerable interest in reinforcing the economic environment and corporate governance.

Does economic freedom affect entrepreneurship? Insights from Africa

Purpose - Literature suggests that entrepreneurship can serve as a veritable tool for providing decent employment and improving economic prosperity. Therefore, the objective of this study is to examine the impact of economic freedom on entrepreneurship in Africa. Design/methodology/approach - The study employs data of 18 African countries covering a period of 2007-2018. The analysis is based on the following techniques: Panel-Corrected Standard Errors (PCSE), generalized method of moments, Hausman–Taylor IV estimator and Driscoll-Kraay standard errors. Findings - Finding based on Panel-Corrected Standard Errors (PCSE) technique reveals that economic freedom and its dimensions improve the level of entrepreneurship in Africa. This finding is robust to other alternative estimation techniques. Secured property right, relaxed tax burden , monetary freedom, trade freedom, freedom from corruption, investment freedom, financial freedom, business freedom and labor freedom have positive impact on African entrepreneurship. Practical implications - The study, hence, suggests that policy should be implemented to maximize the level of economic and fundamental freedom of citizens to encourage indigenous entrepreneurs in Africa. Quality of infrastructure should be improved as well as simplification of firms’ registration procedures. African government also needs to build effective and efficient institutional framework to maintain government integrity in Africa. Originality/value - The position of African countries in the nexus between economic freedom and entrepreneurship is rarely discussed in the literature. Hence, this study contributes in this respect and showcases how economic freedom influence the decision to engage in entrepreneurial venture in African perspectives

Access to venture capital in Africa: the role of public institutions and corporate governance

The venture capital market in Africa remains relatively undeveloped. But, over the last decade, Africa has received much interest from venture capitalists. It is one of the most attractive emerging markets. Investor confidence has increased due to the performance of venture capital firms. The objective of this study is to indicate the influence of public institutions and corporate governance on access to venture capital in Africa in 2019. Based on multiple regression analysis, the relationships between public institutions, corporate governance and access to venture capital are identified. The results show that the strength of auditing and accounting standards, business freedom, fiscal health and judicial effectiveness had significant and positive effects on access to venture capital. However, shareholder governance and trade freedom had significant and negative impacts on access to venture capital. The study underlines that policy-makers in Africa have a considerable interest in reinforcing the economic environment and corporate governance.

The Nexus Between Economic Freedom and Tourist Arrivals: Evidence from Mediterranean Countries

Mediterranean countries are indispensable places of tourism with their world-famous shores, wonderful climate and impressive historical places. The aim of this paper is to investigate the relationship between tourist arrivals and economic freedom indicators such as government integrity, tax burden, government spending, business freedom and trade freedom. For this purpose, the panel vector autoregression (PVAR) method was used for a Mediterranean countries sample covering the period from 1996 to 2016. The results of causality testing showed that the tourist arrivals have a bidirectional causality relationship with each explanatory variable, while the coefficient estimates showed that an increase in economic freedom indices affected tourist arrivals negatively in Mediterranean countries. That is, economic freedoms do not mean an advantage for tourists without supportive public policies for tourism. The test results suggest that policymakers should take into account the various aspects of the tourism sector, particularly natural resources and environmental factors, while making policies that increase economic freedom in Mediterranean countries.

THE PLACE OF ECONOMIC FREEDOM IN THE ECONOMIC POLICY OF THE COUNTRY

A market economy is based on economic freedom, which is revealed in freedom of choice. Choice is the main precondition for competition, and competition is the main driving force of economic development. Economic freedom contributes to the development of the economy of country and the well-being of the population the country depends on it. The International Heritage Foundation has been conducting annual surveys since 1995 on the fulfillment of these conditions in 180 countries around the world, including Georgia. The index of economic freedom in Georgia changes every year. A country is considered economically free if it does not restrict individual choice, voluntary exchange, freedom of competition. A necessary condition is the protection of private property. In an economically free society, every person has the full right, at his own discretion and in the conditions of free choice, to achieve his own goals, the state does not interfere in its activities and choices. It should be noted that economic freedom does not mean economic independence. At the present stage of society's development, the economic activities of any economic entity are so intertwined, so dynamic and in-depth, that the notion of economic independence sounds more an anachronistic than a 21st-century achievement.This applies to relations between countries, as well as relations between individuals and legal entities. Economic freedom means, above all, freedom of choice. Index of Economic Freedom (Economic Freedom of the World) is a measure of economic freedom compiled by the Heritage Foundation, a leading center for American policy research and ,,The Wall Street Journal“ . This index has been established since 1995.The world rating of "economic freedom" has a great importance in terms of further attracting investment in the country. The Index of Economic Freedom is based on ten criteria. These are: freedom of business, freedom of trade, fiscal freedom, government costs, monetary freedom, freedom of investment, financial freedom, property rights, freedom from corruption, freedom of labor. The information on the results of survey of the Heritage Foundation "Economic Freedom Index" 2020 is posted on the official website of the Ministry of Economy and Sustainable Development of Georgia, according to the survey 2020 of the "Heritage Foundation" Index of Economic Freedom " rating score of Georgia reached a historical maximum - 77.1 points, it was promoted by 4 positions in the world ranking and took the 12th position. Compared to the previous year, Georgia was promoted by 2 positions in the European region - with this result Georgia is in the 6th place among 45 countries in the European region with the status of "mostly free". Total score ofGeorgia exceeds both the regional (69.8 points) and the world average point (61.6 points). In our view, property rights are crucial in this large system of valuation. In terms of private ownership, the benefit or loss is the property of the owner, which gives him an incentive to use the resource efficiently. When a resource is transferred to collective ownership, the responsibilities are dispelled, and the different motives of the owners ultimately make the preservation and reasonable use of that resource less possible. An even worse result is achieved if the asset becomes state-owned, because then the liability for profit and loss is not dispersed but divided among different groups.There are known cases in the Czech Republic, Poland and Hungary, where after the end of socialism, the profitability of privately owned companies increased by an average of 77% in just a few years. There are many such stories in the former socialist countries, although privatization is a permanent process in developed countries as well, and the value of privately owned assets around the world has, in fact, been rising every year since the 1980s.

İSLAM ÜLKELERİNDE EKONOMİK ÖZGÜRLÜĞÜN GİRİŞİMCİLİK ÜZERİNDEKİ ETKİSİ

The level of economic freedom which is expressed as institutions and policies based on market economy is one of the most significant indicators of entrepreneurial activities since the increase in economic freedom has caused a decrease in transaction costs preventing the entrepreneurial activity. The aim of this study is to analyze the effect of economic freedom on entrepreneurship in Islamic countries by using the data belonging to years between 1995 and 2019. In the study, self-employment rate has been used as entrepreneurial criterion; gross domestic product per capita, money supply, import and inflation have been used as the indicators of the entrepreneurship; economic freedom index presented by The Heritage Foundation and its 9 subcomponents out of 12 (property rights, government integrity, government spending, tax burden, business freedom, monetary freedom, trade freedom, investment freedom and financial freedom) have been used as the economic freedom criterion. According to the findings of this study, entrepreneurship has been affected positively by economic freedom and property rights, government integrity, government spending, monetary freedom, investment freedom and financial freedom and negatively by tax burden and trade freedom.

Institutional determinants of FDI in Oman: Causality analysis framework

AbstractThis paper explores the institutional determinants of FDI in Oman and the role of FDI in enhancing Oman's economic diversification strategy. Time series data was collected for the selected institutional factors influencing FDI during the period 1996–2018. Unit root and Granger causality framework were used in the analysis. Results indicated that strong and clear property rights protection, corruption freedom, fiscal and trade freedom, cause FDI inflows in Oman, whereas business freedom had no effects. It is crucial for policy makers in Oman to strengthen these institutional factors, craft and implement a policy framework to sustain their efficacy, while improving business freedom towards an open economic model. This also includes strengthening the legal framework, combating corruption and reducing subsidies and other forms of favouritism towards state‐owned enterprises. Such policy measures, aimed at channelling FDI flow towards targeted sectors, would enhance Oman's diversification strategy and foster economic growth and development.

La garantía de prioridad de permanencia de los representantes de los trabajadores en el despido colectivo

En la presente contribución se analiza la prioridad de permanencia de los repre­sentantes de los trabajadores como límite a la facultad del empresario de seleccio­nar a los trabajadores afectados por el despido colectivo. Se estudia su conexión con las funciones representativas así como con la libertad sindical, y se detalla su operatividad aplicando la lógica de la sustitución. Si bien la garantía no es esgri­mible con carácter absoluto, la inclusión entre los afectados de un titular de la misma requiere que el empresario aporte una justificación expresa. Finalmente, se enumeran los sujetos beneficiarios de la garantía, así como la necesidad de que los representantes tengan el mandato vigente en el momento de aplicarla.

Analyzing the Current Situation About the Constitution Protecting the Business Freedom Under The Background of the New Era

With the continuous progress of the economy of China and the full integration with the system of socialism with Chinese characteristics, Chinese economy has been further developed and gradually tends to be improved. Under the background of the new era, there are great differences between the public economy and the non-public sector of the economy that is including the private economy and the individual economy. The non-public sector of the economy is mainly to pursue the maximization of operating profits. In fact, it defers to the intention of managers. Therefore, the planning of business freedom becomes a power to protect the business property and business freedom, which is the most important issue to be considered in the context of the new era.

La libertad de empresa como derecho fundamental en México

El reconocimiento jurídico de la empresa en México no es del todo claro. Varias normas contienen el concepto, pero no lo definen, y en la doctrina es abordado por distintas áreas del derecho. Desde el ámbito mercantil, se ha entendido que la empresa es un acto de comercio y desde siempre se le ha tratado como tal. No obstante, la empresa es consecuencia de un acto de libertad individual y en consecuencia debería considerarse como la manifestación de un derecho fundamental, el derecho a la libertad de empresa. La libertad de empresa ha sido reconocida en los textos constitucionales de varios países del mundo occidental, sobre todo después de la Segunda Guerra Mundial. No ha sido el caso de México. El reconocimiento expreso de la libertad de empresa en nuestro país redundaría en una fortaleza de la figura de la empresa, del empresario, de la libertad de mercado y, en última instancia, de la democracia misma.

El “tribunal supremo” de Facebook: ¿un nuevo paso hacia la justicia sin estado?

El presente estudio introduce al lector la naturaleza y funcionamiento del “Tribunal Supremo” de Facebook como un nuevo medio de resolución alternativa de conflictos en línea. La falta de regulación del Estado del mundo virtual, y en concreto de las redes sociales, ha favorecido la crea­ción de sistemas de “justicia privada” con el objetivo de ofrecer a los usuarios soluciones más rápidas y eficientes a sus conflictos. Este fenómeno, limitado inicialmente a para proteger los derechos de propie­dad, se ha extendido a los derechos de la personalidad, la libertad de expresión y la libertad de empresa. La aparición de órganos no jurisdiccionales especializados en esta materia ofrece importantes ventajas como alternativa a la tradicional “justicia pública”, lo cual puede guiarnos en un futuro hacia una recon­ceptualización del ejercicio de la abogacía en la que sea necesaria una formación en la lex electronica y los procedimientos que se aplican en las redes sociales.

Male and female entrepreneurs\u2019 employment growth ambitions: the contingent role of regulatory efficiency

Entrepreneurs start and grow their ventures in a widely varying set of institutional contexts. One differentiator is a country’s regulatory efficiency which encompasses the freedom to start and to run a business without excessive government interventions around registering, hiring, and firing employees, and price controls on currency. The efficiency of regulations varies substantially among countries and imposes additional costs and risks on entrepreneurs’ activities. We integrate insights from institutional theory and recent literature on gender and entrepreneurship to better understand how a country’s regulatory efficiency affects male and female entrepreneurs’ employment growth ambitions. We explore three aspects of regulatory efficiency: business freedom (e.g., to start, operate, and close a venture), labor freedom (e.g., laws around minimum wage, layoffs, severance), and monetary freedom (e.g., price stability) using data from over 47,000 entrepreneurs in 68 countries. We find that entrepreneurs’ growth ambitions are higher in countries with more efficient regulations, particularly those countries characterized by fewer labor law restrictions and greater monetary freedoms. These findings are further exacerbated by gender by such that, relative to their female counterparts, male entrepreneurs have significantly greater venture growth ambitions. Our paper contributes to the discussion on how formal institutions influence women and men entrepreneurs in distinct ways.