Revenue Creation Research Articles

Foreign bank efficiency in Australia: what makes a difference?

PurposeThe purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested.Design/methodology/approachA three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger sample of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from the above theories. Third, general to specific modelling is used to determine which of the factors from the second stage determine differences in foreign bank efficiency.FindingsFollowing clients (defensive expansion) was found to increase host nation efficiency, and new trade theory tended to, (but not conclusively), dominate comparative advantage theory. The limited global advantage hypothesis was found to apply for US bank revenue creation efficiency, but not for transformation of physical inputs into outputs. Banks from the UK and Japan were also found to display superior revenue creation efficiency. Competitor market share reduces host nation efficiency and positive parent bank attributes such as size, credit rating and profits are associated with lower host nation efficiency, as is home nation financial development.Originality/valueThis is the first study that has used a combination of factor analysis and general to specific modelling to study determinants of foreign bank efficiency in the host nation.

The CAT (Casino Tourism) and the MICE (Meetings, Incentives, Conventions, Exhibitions): Key Development Considerations for the Convention and Exhibition Industry in Macao

ABSTRACT In 2006, Macao became the world's leading gaming destination in terms of gaming revenue and by mid 2008 had surpassed the gaming revenues of Las Vegas and Atlantic City combined. Casino tourism (CAT) in Macao continues to grow, but with the opening of The Venetian, the first integrated resort on the Cotai Strip,1 convention and exhibition-based tourism is beginning to emerge. Due to its lure of being a high-yield tourism sector, MICE (meetings, incentives, conventions, exhibitions) tourism has been increasingly introduced at destinations, including gaming jurisdictions such as Las Vegas. Yet, Macao's gaming industry for the greater part remains divorced from the need for a convention product in terms of revenue creation at present, with two models of gaming development emerging. It is a key aim of the Macao Government to develop Macao into a major leisure and entertainment center, widening and expanding its tourism market segment beyond gaming. The MICE sector has therefore become an increasingly important focus and direction of resources for the Macao Government. Macao, though, is faced with the challenge of changing traveler perceptions of the destination from being solely a gaming destination to that of additionally being an attractive convention and exhibition destination image. Macao is also entering a regional market with mature and leading MICE destinations. This article examines strategic planning and management considerations for Macao as it attempts to reposition itself to develop the MICE industry in the world's most lucrative gaming market. Highlighted are the challenges in re-branding and repositioning Macao, economic justification, and tourism policy considerations on issues such as infrastructure development to support this vision of the Macao Government and those of the newly integrated resorts emerging on Macao's Cotai Strip.

Rents, Rights N'Rhythm: Cooperation, Conflict and Capabilities in the Music Industry1

The need for better informed copyright policy and management is a huge problem because of the enormous and growing size and scope of the creative industries. In this paper we challenge the prevailing thinking dominating the theoretical literature on the economics of copyrights. By integrating the very real effect of cooperation (strategic interaction and creative interdependence) and conflict (asymmetric relationships in terms of interests, financial dominance, power and capabilities) throughout the economic system in generating value and appropriating rent from music copyrights, we argue how prevailing theory on copyright can be improved by integrating it into a framework of New Institutional Economics. Focus is on the interplay between (i) the “institutional environment” (or “rules of the game”) with respect to the regulation of copyrights underpinned by the economic rationales; and (ii) the “institutions of governance” (or the “play of the game”) with respect to the specific institutional mechanisms in organizing the creation and distribution of value and revenue from music copyrights, and with respect to royalty management. 1. The views expressed in this paper are those of the authors and do not necessarily reflect the official view of the United Nations where two of the authors work.

Public Policy Analysis: Ideas and Impacts

▪ Abstract Both economists and political scientists have made important contributions to the field of public policy analysis. Economists have stressed the roles of competition, natural monopolies, information asymmetries, externalities, incentives, and federalism in promoting or undermining efficiency. Political scientists, in contrast, have focused more on the mechanics of agenda change, the likelihood of nonincremental policy change, and how the policy-making process varies across issue areas. Economists have influenced government decisions that led to the creation of public utility commissions, emissions trading, revenue sharing, and health maintenance organizations. Political scientists have influenced government decisions on the design of political institutions (environmental impact statements, legislative redistricting) and on the choice of public policies (criminal justice strategies, welfare reform). In general, the presence of a scholarly consensus facilitates the use of policy analysis. However, interest group politics and electoral incentives also play an important role.

Information technology, revenue creation and growth: an international comparison of causality

In this paper, we examine the extent of the relationship between PC installation and revenue creation using Gross Domestic Product (GDP) growth in different economies and by running a series of Granger causality tests. Our findings show that in developed economies the total PC installation and the PC installation in home market Granger cause GDP growth, whereas GDP growth only Granger causes the PC installation in the market for education. However, in developing economies, there appears to be a unidirectional causality in that GDP growth Granger causes total PC installation, PC installation in education and PC installation in business and government markets. We do not find any PC installation variables Granger causing GDP growth, including PC installation in home market. Overall, our results show that developing economies, unlike developed economies, do not gain from investing in Information Technology (IT) in the short run.

Comunicações uma contribuição ao aprimoramento da informação contábil, no tocante à mensuração do resultado contábil da produtora cinematográfica

Este artigo apresenta uma proposta de aprimoramento dos critérios de mensuração do resultado contábil de uma produtora cinematográfica que realiza suas atividades no mercado brasileiro. O interesse pelo assunto é motivado pela admiração ao cinema, em especial, o nacional. A necessidade de aprimoramento da informação foi constatada pela falta de normas de procedimentos contábeis a serem observados pelas produtoras nacionais. Neste trabalho foi desenvolvido um modelo contábil próprio considerando a produção de um filme como um contrato de longo prazo, sendo o resultado apurado de acordo com a geração efetiva de receitas.

Financing divided governments

This paper finds that when the Congress and Presidency are controlled by the different political parties in the USA the creation of the seigniorage revenue to finance spending is not higher than when those two branches are controlled by the same party. However, the hypothesis that the creation of seigniorage revenue was lower during the period when the country had a fixed exchange rate regime was partially supported.

Building a sustainable growth capability

The creation of future revenues is a formidable challenge and one to which organizational leaders are increasingly turning, now that they have been through years of reengineering and restructuring. Many of these leaders are finding that all the hard work, which may have been necessary for survival, hasn't proved enough for success.

The International Economic Interests of U.S. States

During the 1970s, global interdependence penetrated deeply into the U.S. economy, drawing state governments into novel international trade and investment activities. State promotional programs sought to capture revenue and job creation benefits from export expansion and foreign investment inflows, while other state actions attempted to minimize costly local disruptions associated with import competition andforeign control of resources. As foreign and domestic economic factors intertwined, national jurisdiction in matters of foreign affairs increasingly overlapped traditional state government prerogatives concerning economic development and citizen welfare. State governments began direct lobbying on international issues, leading to both complementary and conflictual national-state positions. As the United States adjusts to an interdependent global economy, a new international dimension will be added to federal relationships. National and state officials must fashion creative new instruments to accommodate diverse domestic political and economic needs while still exerting positive Iladership in international economic forums.

Virtual Goods: Good for Business?

Whilst 2008 saw the emergence of the virtual worlds sector, 2009 has to be called the year of the virtual good. With online destinations such as social networks seeing a creation of brand-new revenue steams and virtual worlds ‘giving the users want they want’, the virtual goods sector is one of the fastest growing areas of the Internet. In its most popular form, virtual goods relate to accessories for avatars–clothing, hair and other person-related apparel. These are purchased by users to customize their appearance and are popular across all types of virtual worlds, from kids and tweens right through grown-up worlds and also apply across all genres. There is an incumbent demand for users to want to change andcontrol how they are seen in virtual worlds. But virtual goods don’t just include avatar appearance customization. Online communities are learning how to monetize all aspects of the user experience, including the ability, for example, to buy a bespoke user name or access specific areas inside a virtual world. On the SocNet side, virtual goods are being used to great effect with social/mini-games, providing ‘tools’ to complete a game faster/level-up.