Market-related Factors Research Articles

Evaluation of Shadow Economy Emergence and Development Factors in Service Sector: Greek Case

Despite the steady growth in the number of the studies on shadow economy, relatively little research has been done to identify the factors that cause emergence and development of shadow economy in particular countries. This article is aimed at evaluation of shadow economy emergence and development factors in Greek service sector. The methods of the research include logic, systematic analysis of scientific literature and the method of expert evaluation. The research has enabled to identify the factors contributing to the emergency and development of shadow economy in such factor groups as market-related, economic-financial, public administration, social and individual factors. Neither of legal factors was marked by the statistically significant number of the respondents, and weak resource base of the country, attributed to the group of resources-related factors, was not marked by any respondent, which shows that its impact on the emergency and development of shadow economy was not recognized. From all analysed factor groups, economic – financial factors were recognized as the ones that have the greatest impact on the emergency and development of shadow economy in Greece service sector. DOI: 10.5901/mjss.2014.v5n13p0438

Together but Unequal

This article provides a renewed understanding of migrants’ citizenship rights in urban China. Specifically, we look at how migrants fare in attaining homeownership and social benefits, in comparison with local residents. We also explore how migrant outcomes relate to both individual socioeconomic and institutional factors. The results are primarily based on the 2005 One Percent Population Survey in two of China’s largest cities—Beijing and Shanghai. Migrants have experienced improvement in homeownership and housing conditions, but there is marked heterogeneity in rights attainment among migrants, particularly by type of origin (urban vs. rural). Making the most gains are those from urban origins and with better education. Market-related factors, such as education, are increasingly important predictors of migrant outcomes in the cities.

Determinants of Market Participation among Maize Producers in Oyo State, Nigeria

Smallholder farmers constitute the largest share of farm households in Nigeria and many of them are poor. A way out of poverty for them is to address market related problems. In this paper, the market options available to these farmers, as well as market related factors that are problematic were investigated. Primary data were collected from 100 maize farmers in Saki Agricultural Zone of Oyo State, Nigeria. Seventy five maize farmers participate in the market while 25 farmers produce only for subsistence. The farmers are well experienced and cultivate about 5.6 hectares of land. About 90% do not have access to market while 64% do not have access to good roads. The study identified 4 market options and the most patronized was the farm gate market option. The censored tobit result, market price show that, member of a producer group, farm size, educational and total maize produced, road condition, primary occupation and transaction costs significantly affect farmers’ market participation. Policy interventions that seek to improve these factors are very important to market participation.

Is Money All? Financing Versus Knowledge and Demand Constraints to Innovation

The paper adds to the scattered empirical evidence on the role of obstacles to innovation in a three-fold way. First, we correct for the usual sample selection bias by filtering out firms not interested in innovation from ‘potential innovators’. Second, we assess what mostly affects firms’ propensity to realize innovative outputs. Third, we do so in a panel framework by using an unbalanced panel of UK firm for the period 2002 - 2010. We find that demand- and market-related factors are as important as financing conditions in determining firms’ innovation failures. This evidence puts much of the latest hype on finance in perspective.

The Impact of Market-Related Factors on the Entry Mode of Small and Medium Enterprises

Understanding a firm's internationalization processes, including entry mode decisions, has attracted increasing attention from the literature in international business. This article researches the impact of market determinants on the entry modes choice of exporting small and medium enterprises (SMEs), specifically on the variables associated with the home market, the host market, and the proximity between them. Following a quantitative methodological approach, an Internet survey was applied to AIMinho's associates, a regional industry association in Northern Portugal. Principal components analyses and Mann-Whitney tests were performed to analyze data. The study's results reveal a patent preference of SMEs for export entry modes in detriment of both contractual and investment modes. Moreover, results reveal the lack of influence of market-related variables on the choice between exports or contractual entry modes. This research contributes to the current knowledge on SMEs internationalization by aggregating in one single study all market-related variables identified in the literature.

Analyzing the Effects of Brand Innovativeness on Attitude towards the Brand Considering the Moderating Role of Consumer Innovativeness with a Case Study in Students of University of Isfahan

As Ouellet (2006) noted, Introduction of really new products by organizations is not a risk-free strategy for companies, some having less success at it than others. Factors such as changing consumer behavior towards really new products based on segments of adopters, product-related issues (e.g. pricing of the product and physical characteristics of the product) influence adoption, along with firm- and market-related factors. Brand and brand innovativeness concept, as one of brand associations and perceptions, less have been noted across factors of adoption of new products. In the long run, one crucial factor of brands pursuing innovation certainly has to do with consumer reactions to said brands and the products they sign. Therefore, the objective of this research is analyzing the effects of brand innovativeness on attitude towards the brand considering the moderating role of consumer innovativeness with a case study in students of Isfahan University. Brand innovativeness, consumer innovativeness, and attitude towards brand as the research variables were studied across students of Isfahan University, as the study population. The collection instrument is a questionnaire that 200 were distributed and 173 collected and analyzed. A random sampling procedure was applied and the validity of questionnaire was confirmed and reliability of it was calculated and confirmed by Cranach's Alpha. For data analysis and hypotheses testing has been used SPSS, AMOS, and PLS software. The results indicate that brand innovativeness, with regression weight equals' 0/78 and sig equals 0/000, has influenced on attitude towards bran. It means consumers have positive attitude towards brand if perceived brand innovativeness is high. Moreover, regression weight of the relationship is 0/732 for high-level consumer innovativeness and 0/651 for low-level consumer innovativeness and the calculated amount of t-value that equals 20/5853, indicates that the moderating influence of consumer innovativeness on the relationship has been confirmed.

Determinants of the Onshore and Offshore Chinese Government Yield Curves

As part of its effort to internationalize the Renminbi, China’s government has promoted the establishment of a regulated offshore Renminbi capital market hub in Hong Kong, where, among other activities, it issues RMB-denominated government bonds providing foreign investors access to Chinese bond markets. In a VAR model where yield curves are represented by Nelson-Siegel latent factors and which includes macroeconomic variables, we find that on-shore government bond yields are primarily driven by policy-related factors such as the policy rate and money supply, whereas offshore government bond yields are additionally driven by market-related factors such as consumer confidence, GDP and FX rate expectations as well as liquidity constraints. At the current stage of market development there are virtually no spillover effects between the onshore and offshore government bond curves. Our results add quantitative evidence that China’s efforts to internationalize its currency results in a simultaneous liberalization of its financial system.

The adoption of high performance work practices in small businesses: the influence of markets, business characteristics and HR expertise

This paper explores the extent to which the adoption of high performance work practices (HPWPs) in UK small businesses with less than 50 employees is associated with the nature of the market in which the business operates, its business characteristics and its access to HR expertise. Drawing on data from the 2004 Workplace Employment Relations Survey, the analysis suggests that, where market-related factors are concerned, the uptake of HPWPs is higher in small businesses that require a highly skilled workforce but is unrelated to either the degree of market competition or the presence of large dominant customers. In terms of access to HR expertise, the analysis finds greater use of HPWPs in small businesses that have contact with external sources of HR advice via membership of business advisory networks or Investors in People (IiP) recognition. However, uptake is unrelated to the presence of personnel/HR specialists. Overall, the findings suggest that rather than depicting employment practices in small businesses as the inevitable consequence of market circumstances, encouraging greater small business involvement with business advisory networks and IiP may have the potential to increase the adoption of HPWPs in the sector.

Horticultural markets promote alien species invasions: an Estonian case study of herbaceous perennials

Gardening is a popular pastime, but commercial horticulture is responsible for the introduction of alien species and contributes to invasions in a variety of ways. Although an extensive international literature is available on plant invasions, it is still important at the national level to examine the influence of local factors. Accordingly, 17 nurseries in Estonia that cultivated and sold perennial alien species were selected, and a list of species and prices was compiled. The relationships between species status, and factors such as their abundance in the wild were examined statistically. A qualitative list of the nationally problematic species among herbaceous perennials was also completed. A total of 880 taxa were recorded, of which 10.3% were native and 89.7% alien. In all, 87.3% of the alien species were still confined to cultivated areas. The ecological and socio-economic characteristics of the taxa were described, and lists of the families of casual, naturalised and invasive aliens were provided. Both native and increasing wild alien species have a very similar profile on the market. Alien species that are less expensive, widely available and have more cultivars per species on the market are also more likely to escape. The invasive status and abundance of escaped aliens in an area increases with residence time. In general, socio-economic factors create new and reflect previous propagule pressures from commercial horticulture, which continuously increase the likelihood of alien species surviving and invading new areas. Our findings suggest that these national socio-economic market-related factors explain much of the invasiveness of various perennial ornamental species, and therefore regional and national authorities urgently need to regulate and control the ornamental plant trade to diminish the risk of new invasions.

Natural-Resource or Market-Seeking FDI in Russia? An Empirical Study of Locational Factors Affecting the Regional Distribution of FDI Entries

Dieses Arbeitspapier ist eine empirische Studie der Faktoren, die auf den raumlichen Verteilungsprozess von Auslandsdirektinvestitionen (FDI) in den russischen Regionen wirken. Insbesondere befasst sich die Studie dabei mit den Regionen, die mit naturlichen Ressourcen und umfassenden Markten ausgestattet sind. In unserer Analyse kombinieren wir umfangreiche Regionaldaten mit Firmendaten russischer Unternehmen, in die mindestens ein auslandischer Investor im Zeitraum zwischen 2000 und 2009 investiert hat. Die Analyse nach den Standortfaktoren wird in einem Conditional Logit Modell untersucht. Die grundlegenden Ergebnisse der Studie sind dreifach zu differenzieren. Erstens kann festgestellt werden, dass eine Theorie alleine nicht ausreicht, um das geographische Muster von FDI in Russland zu erklaren. Vielmehr kann eine Kombination der Determinanten festgestellt werden; marktbedingte Faktoren und die Zuganglichkeit von naturlichen Ressourcen stellen sich als wichtige Komponenten fur die Ansiedlung auslandischer Investoren dar. Der Einfluss naturlicher Ressourcen ist dabei stetig uber die Zeit gewachsen, ungeachtet von exogenen Schocks wie beispielsweise dem Yukos-Prozess. Zweitens wirken Agglomerationseffekte auf die Standwortwahl auslandischer Investoren sowohl durch sektorspezifische als auch durch intersektorale Externalitaten. Drittens zeigen die Ergebnisse, dass der Zugang zu naturlichen Ressourcen FDI in Dienstleistungssektoren nach sich zieht. Auch wenn Investitionen in Moskau ausgegrenzt bzw. M&A (Mergers & Acquistions) Investitionen hinzugenommen werden, bleiben die Regressionsergebnisse stabil.

Is Money All? Financing versus Knowledge and Demand Constraints to Innovation

The paper adds to the scattered empirical evidence on the role of obstacles to innovation in a three-fold way. First, we correct for the usual sample selection bias by filtering out firms not interested in innovation from ‘potential innovators’. Second, we assess what mostly affects firms’ propensity to realize innovative outputs. Third, we do so in a panel framework by using an unbalanced panel of UK firm for the period 2002 - 2010. We find that demand- and market-related factors are as important as financing conditions in determining firms’ innovation failures. This evidence puts much of the latest hype on finance in perspective.

The Case for Secondary Buyouts as Exit Channel

Do private equity firms have a clear pecking order when deciding on exit channels for their portfolio companies? Are secondary buyouts—that is, sales to other PE firms—always an exit of last resort? And are there company‐ or market‐related factors that have a clear and predictable influence on decisions to pursue secondary buyouts?Using a proprietary dataset of over 1,100 leveraged buyouts that exited in North America or Europe between 1995 and 2008, the authors attempt to answer these questions by analyzing the returns associated with public, private, and secondary (or “financial”) exits. Based on their analysis of the realized returns, there is no clear pecking order of exit types. Secondary buyouts deliver rates of return that are the equal of those achieved through public exits.In addition, the authors assess the relationship between the likelihood of choosing a financial exit and certain company‐related as well as market‐related factors. Portfolio companies with greater debt capacity are more likely to be sold in secondary buyouts. Furthermore, increases in both the liquidity of debt markets and the amount of undrawn capital commitments to the private equity industry increase the probability of exit through secondary buyouts.

What Drives India's Outward FDI?

We empirically assess the determinants of India’s FDI outflows across a large sample of host countries in the 1996-2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India’s outward FDI is hardly affected by motives to access raw materials or superior technologies. Market-related factors appear to have dominated the location choices of Indian direct investors. A larger Indian diaspora in the host countries attracts more FDI. Finally, it seems that Indian direct investors are relatively resilient to weak institutions and economic instability in the host countries. However, we do not find robust evidence that India provides an alternative source of FDI for countries that traditional investors tend to avoid.

What Drives India’s Outward FDI?

We empirically assess the determinants of India’s FDI outflows across a large sample of host countries in the 1996–2009 period. Based on gravity model specifications, we employ Poisson pseudo maximum likelihood (PPML) estimators. Major findings include: India’s outward FDI is hardly affected by motives to access raw materials or superior technologies. Market-related factors appear to have dominated the location choices of Indian direct investors. A larger Indian diaspora in the host countries attracts more FDI. Finally, it seems that Indian direct investors are relatively resilient to weak institutions and economic instability in the host countries. However, we do not find robust evidence that India provides an alternative source of FDI for countries that traditional investors tend to avoid.

An Investigation of Trait Prioritization in Rosaceous Fruit Breeding Programs

Over 60 rosaceous crop breeding programs exist in North America, but no information has been available on which traits are targeted for selection or how breeders make such decisions. We surveyed all active rosaceous fruit breeding programs in the United States and Canada to determine: 1) the relative importance of over 50 plant traits that breeders select for 2) the likelihood of selection for the most important traits; and 3) the factors influencing breeders’ decisions. A double-bounded Tobit model was used to investigate the effect of supply chain parties, technical and socioeconomic challenges, and crop characteristics on the likelihood of selection for trait clusters. We found that consumer-driven forces positively impact the likelihood of selection for traits more than producer forces and a breeder’s own experience. Technical factors are as important as socioeconomic factors but less important than market-related factors. Our findings provide the first ever evidence that a socioeconomic approach in specialty crop breeding programs can contribute to an improved understanding of the effects of different supply chain factors on breeding programs’ trait priority setting.

Exit of Last Resort? Empirical Evidence on the Returns and Drivers of Secondary Buyouts as Private Equity Exit Channel

Despite an increasing importance of secondary buyouts in the private equity market, little is known about the perspective of the seller and his motives for choosing this exit type. Do private equity firms have a clear pecking order regarding the exit channels for their portfolio companies? Is a secondary buyout only an ’exit of last resort’? And furthermore, have company or market related factors an influence on the decision to pursue a secondary buyout? This article’s aim is to answer these research questions. Based on a proprietary dataset of 1,112 leveraged buyouts exited in North America or Europe between 1995 and 2008, the authors empirically analyze the return potential of different exit channels including public, private and financial exits. They find that based on the realized returns, there is no clear pecking order of exit types. Secondary buyouts, i.e. financial exits, deliver returns that are equally attractive to the ones achieved through public exits. In addition, the authors empirically assess the relationship between the likelihood to choose a financial exit and company as well as market related factors. They show that portfolio companies with a higher lending capacity are more likely to be exited via a secondary buyout. Furthermore, the liquidity of debt markets and the amount of undrawn capital commitments to the private equity industry increase the probability of a secondary buyout. Overall, the authors conclude that private equity firms engage in market arbitrage between debt and equity as well as private and public equity markets.

The determinants of sovereign credit spread changes in the Euro-zone

Using a database of Euro-denominated government bonds covering the period from January 2000 to December 2010, this paper provides an empirical analysis of the determinants of government credit spreads in the Euro-area. The analysis is divided into two sub-periods delimited by the global financial crisis that started in August 2007. We find evidence of a clear shift in the behavior of market participants from a convergence-trade expectation, based on market related factors, before August 2007, to one mainly driven by macroeconomic country-specific variables and an international common risk factor. There is no evidence of a significant role for the liquidity risk before or during the financial crisis period. Overall, our results give support to the Merton-type structural credit risk models and confirm that there are considerable similarities between the factors explaining the dynamics of the credit risk spreads and the factors driving the prices on the government bond markets.

The impact of power market structure on CO2 cost pass-through to electricity prices under quantity competition – A theoretical approach

We present a theoretical analysis of the impact of power market structure on the pass-through rate (PTR) of CO2 emissions trading (ET) costs on electricity prices. Market structure refers in particular to the number of firms active in the market and the intensity of oligopolistic competition as measured by the conjectural variation, as well as to the functional form of the power demand and supply curves. In addition, we analyse briefly the impact of other power market-related factors on the PTR of carbon costs to electricity prices. These include in particular the impact of ET-induced changes in the merit order of power generation technologies and the impact of pursuing other market strategies besides maximising generator profit, such as maximising market shares or sales revenues of power companies. Each of these factors can have a significant impact on the rate of passing-through carbon costs to electricity prices.

The Determinants of Commercialization Strategy: Idiosyncrasies in British and German Biotechnology

The intention of this paper is to investigate whether market–related factors have a stronger influence on the strategic decision making of ventures in “liberal market economies” than on that of their counterparts in “coordinated economies.” Thereby, I focus on a particularly important strategic decision that firms face—the commercialization choice. Using a unique survey data set on the commercialization of British and German biotechnology firms, I analyze the determinants of commercialization strategy, paying particular attention to national idiosyncrasies. Together, the findings indicate that the commercialization strategy follows distinct patterns in the British “liberal market economy” and the German “coordinated economy.”

The fragile returns to investor relations: evidence from a period of declining market confidence

This paper assesses the capital market effects of investor relations activities during a period of high-profile corporate scandals. We find no support for the prediction that an established reputation for effective investor relations helped shield US firms from a perceived decline in management credibility and financial reporting integrity associated with Enron and related scandals. On the contrary, tests reveal that firms with an established reputation for superior investor relations activities fared worse on a series of market-related factors. Results suggest that distrust in corporate reporting practices spilled over to investor relations practices, and that best practice investor relations programmes developed during normal market conditions offered little protection from systemic declines in investor confidence arising from the corporate misdeeds of other firms.