Pub Date : 2023-10-09DOI: 10.1177/09721509231166256
Madhuri Gandhi, Savita Ubba, None Jyoti
Consumer values are the foundation of every successful purchase and motivate customers to buy more. The purpose of this research study is to explore the effect of customer value perception on consumer purchase intention for private label apparels. Further, the mediation effect of perceived quality between customer value perception and consumer purchase intention is also determined. A total of 800 valid questionnaires are collected from consumers who are regularly buying private label apparels. In order to analyse the data, techniques such as exploratory factor analysis, confirmatory factor analysis and structural equation modelling are employed to evaluate the proposed framework. The findings reveal that financial, functional, individual and social value perceptions positively influence the perceived quality of private labels. Value perceptions of respondents also influence the consumer purchase intention except for the functional and social value perception. Consumer purchase intention is directly influenced by perceived quality. Furthermore, with the exception of social value perception, the findings imply that perceived quality mediate between the distinct consumer value perception (CVP) and purchase intention of private label apparels. Relevant implications are provided by this study which helps the retailers in better understanding customer value perception and concentrating on improving CVP.
{"title":"Effect of Consumer Value Perception on Consumer Purchase Intention: A Case of Private Label Apparels","authors":"Madhuri Gandhi, Savita Ubba, None Jyoti","doi":"10.1177/09721509231166256","DOIUrl":"https://doi.org/10.1177/09721509231166256","url":null,"abstract":"Consumer values are the foundation of every successful purchase and motivate customers to buy more. The purpose of this research study is to explore the effect of customer value perception on consumer purchase intention for private label apparels. Further, the mediation effect of perceived quality between customer value perception and consumer purchase intention is also determined. A total of 800 valid questionnaires are collected from consumers who are regularly buying private label apparels. In order to analyse the data, techniques such as exploratory factor analysis, confirmatory factor analysis and structural equation modelling are employed to evaluate the proposed framework. The findings reveal that financial, functional, individual and social value perceptions positively influence the perceived quality of private labels. Value perceptions of respondents also influence the consumer purchase intention except for the functional and social value perception. Consumer purchase intention is directly influenced by perceived quality. Furthermore, with the exception of social value perception, the findings imply that perceived quality mediate between the distinct consumer value perception (CVP) and purchase intention of private label apparels. Relevant implications are provided by this study which helps the retailers in better understanding customer value perception and concentrating on improving CVP.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135095526","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-07DOI: 10.1177/09721509231191357
Avik Das, Tapas Chakraborti
For Indian asset managers and speculators to assess the volatility spillover to the Indian market, identifying connections among the G7 countries might be of tremendous assistance. Using the DYCI methodology, we gauge volatility spillover (connectedness) for the Indian market throughout the financial cycle. Utilizing conditional (rolling-sample) connectedness, we assess the total directional volatility spillover for India. Additionally, we map the volatility spillover between India and the G7 nations using pairwise directional volatility connectedness. According to our findings, India changed from being a transmitter of volatility to being a recipient of it during financial cycle upturns and downturns.
{"title":"Volatility Spillover and Connectedness Mapping of India Through the Financial Cycle","authors":"Avik Das, Tapas Chakraborti","doi":"10.1177/09721509231191357","DOIUrl":"https://doi.org/10.1177/09721509231191357","url":null,"abstract":"For Indian asset managers and speculators to assess the volatility spillover to the Indian market, identifying connections among the G7 countries might be of tremendous assistance. Using the DYCI methodology, we gauge volatility spillover (connectedness) for the Indian market throughout the financial cycle. Utilizing conditional (rolling-sample) connectedness, we assess the total directional volatility spillover for India. Additionally, we map the volatility spillover between India and the G7 nations using pairwise directional volatility connectedness. According to our findings, India changed from being a transmitter of volatility to being a recipient of it during financial cycle upturns and downturns.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135252416","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-06DOI: 10.1177/09721509231195169
Fernando Angulo-Ruiz, Etayankara Muralidharan
Hybrid businesses that combine profit and social objectives at their core play an important role in their communities. In this article, we use insights from paradox theory to examine the influence of entrepreneurs’ cultural value orientations and ethnicity on distinct forms of hybrid businesses. We use a unique random sample of international small- and medium-sized privately owned businesses in Canada. After controlling for alternative explanations and using propensity scores to match the samples of Indigenous and non-Indigenous entrepreneurs, we consistently find that entrepreneurs’ self-expression values and Indigenous ethnicity are positively associated with a higher degree of hybridity in the businesses they start. Our findings contribute to the conversations on the micro-foundations of organizational paradox and to the literature on the factors that influence different hybrid organizational forms. Besides, our findings also add to the literature that examines hybridity in the context of internationalized businesses. The rationality and culture of the entrepreneur affect organizational paradox. Entrepreneurs with self-expressive values and identified with an Indigenous ethnicity have higher proclivities to form ideal hybrids and embrace paradoxical organizational forms.
{"title":"The Influence of Entrepreneurs’ Culture and Ethnicity on Firms’ Degree of Hybridity","authors":"Fernando Angulo-Ruiz, Etayankara Muralidharan","doi":"10.1177/09721509231195169","DOIUrl":"https://doi.org/10.1177/09721509231195169","url":null,"abstract":"Hybrid businesses that combine profit and social objectives at their core play an important role in their communities. In this article, we use insights from paradox theory to examine the influence of entrepreneurs’ cultural value orientations and ethnicity on distinct forms of hybrid businesses. We use a unique random sample of international small- and medium-sized privately owned businesses in Canada. After controlling for alternative explanations and using propensity scores to match the samples of Indigenous and non-Indigenous entrepreneurs, we consistently find that entrepreneurs’ self-expression values and Indigenous ethnicity are positively associated with a higher degree of hybridity in the businesses they start. Our findings contribute to the conversations on the micro-foundations of organizational paradox and to the literature on the factors that influence different hybrid organizational forms. Besides, our findings also add to the literature that examines hybridity in the context of internationalized businesses. The rationality and culture of the entrepreneur affect organizational paradox. Entrepreneurs with self-expressive values and identified with an Indigenous ethnicity have higher proclivities to form ideal hybrids and embrace paradoxical organizational forms.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"110 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135351093","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-06DOI: 10.1177/09721509231195170
Duleepa Lakshman, Janak Kumarasinghe, and Rukmal Weerasinghe
Small and medium enterprises (SMEs) are critical to Sri Lanka’s economy, but their potential for internationalization remains underexplored. This study aims to identify the various antecedents of internationalization and the impact of identified antecedents on the internationalization of Sri Lankan SMEs. This study was conducted following a quantitative approach. Data were collected from 250 SMEs currently engaged in international business activities and located in the Western Province of Sri Lanka. Correlation analysis and multiple regression analysis were performed to test the hypothesis after ensuring the reliability and validity of the measurement items. The results of this study found that marketing and networking capabilities, among others, significantly influence the internationalization of SMEs. In addition, the study discovered that human capital, managerial capabilities, innovation capabilities, marketing capabilities, networking capabilities, financial capabilities and technological capabilities jointly influence the internationalization of Sri Lankan SMEs. The results of this study provide better insights for managers and owners to capitalize more on marketing capabilities and networking capabilities to achieve synergies by collaborating with local and international partners. In addition, study results benefit policymakers in formulating better policies to support SMEs in finding new markets and making information available about foreign markets to better develop their marketing and networking strategies.
{"title":"Internationalization of SMEs in a Developing Economy: Empirical Evidence from SMEs in the Western Province, Sri Lanka","authors":"Duleepa Lakshman, Janak Kumarasinghe, and Rukmal Weerasinghe","doi":"10.1177/09721509231195170","DOIUrl":"https://doi.org/10.1177/09721509231195170","url":null,"abstract":"Small and medium enterprises (SMEs) are critical to Sri Lanka’s economy, but their potential for internationalization remains underexplored. This study aims to identify the various antecedents of internationalization and the impact of identified antecedents on the internationalization of Sri Lankan SMEs. This study was conducted following a quantitative approach. Data were collected from 250 SMEs currently engaged in international business activities and located in the Western Province of Sri Lanka. Correlation analysis and multiple regression analysis were performed to test the hypothesis after ensuring the reliability and validity of the measurement items. The results of this study found that marketing and networking capabilities, among others, significantly influence the internationalization of SMEs. In addition, the study discovered that human capital, managerial capabilities, innovation capabilities, marketing capabilities, networking capabilities, financial capabilities and technological capabilities jointly influence the internationalization of Sri Lankan SMEs. The results of this study provide better insights for managers and owners to capitalize more on marketing capabilities and networking capabilities to achieve synergies by collaborating with local and international partners. In addition, study results benefit policymakers in formulating better policies to support SMEs in finding new markets and making information available about foreign markets to better develop their marketing and networking strategies.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135351082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-05DOI: 10.1177/09721509231189573
Gnyana Ranjan Bal, Arjuna Kumar Maharana
The present study examines the time–frequency relationship between conventional equity, environmental, social and governance (ESG) Index and commodities in the Indian context. The present study uses wavelet-based decomposition methodology, and wavelet coherence to examine the co-movement and coherence among these markets. In addition, wavelet analysis explored in-phase and out-phase time–frequency relationships among the variables. The findings of the study highlight the coherence between these markets in different time horizons. Our results show that the impact of the COVID pandemic persisted across the time scales in the case of ESG index, Nifty and Oil. There is strong co-movement between ESG index and Nifty, hence ESG index cannot be considered as a hedge during crisis periods. Whereas gold exhibits hedging attributes against the volatility of conventional equity. The empirical findings have several implications for understanding the hedging attributes of ESG indices and commodities against conventional equities.
{"title":"Can Equity Market Risk be Diversified with the Help of ESG Investment and Commodities?","authors":"Gnyana Ranjan Bal, Arjuna Kumar Maharana","doi":"10.1177/09721509231189573","DOIUrl":"https://doi.org/10.1177/09721509231189573","url":null,"abstract":"The present study examines the time–frequency relationship between conventional equity, environmental, social and governance (ESG) Index and commodities in the Indian context. The present study uses wavelet-based decomposition methodology, and wavelet coherence to examine the co-movement and coherence among these markets. In addition, wavelet analysis explored in-phase and out-phase time–frequency relationships among the variables. The findings of the study highlight the coherence between these markets in different time horizons. Our results show that the impact of the COVID pandemic persisted across the time scales in the case of ESG index, Nifty and Oil. There is strong co-movement between ESG index and Nifty, hence ESG index cannot be considered as a hedge during crisis periods. Whereas gold exhibits hedging attributes against the volatility of conventional equity. The empirical findings have several implications for understanding the hedging attributes of ESG indices and commodities against conventional equities.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135484086","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-05DOI: 10.1177/09721509231192174
Umberto Filotto, Dario Sgrulletti, Gian Paolo Stella
This study explores the relationship between LinkedIn ESG-related activities of CEOs and the stock market performance of their respective companies. The study analyses data of CEOs of listed SMEs on Euronext Growth Milan and their LinkedIn activity, along with their company’s performance. In particular, this study focuses on the diffusion of ESG topic-related contents during the COVID-19 pandemic on LinkedIn using a sample of approximately 37 thousand activities and more than 2 million words examined. Clustering the sample of SMEs in n.2 groups by stock performance with k-means method, we applied textual analysis to identify LinkedIn contents containing ESG topic-related contents. The study found a significant and positive correlation between CEOs’ ESG-related LinkedIn and their company’s stock market performance. Results show that CEOs of best performing SMEs share a higher volume of ESG contents and they suggest a role of LinkedIn in ESG information dissemination on financial markets.
{"title":"CEOs on LinkedIn, ESG Communication and Listed SMEs Stock Performance During COVID-19 Pandemic","authors":"Umberto Filotto, Dario Sgrulletti, Gian Paolo Stella","doi":"10.1177/09721509231192174","DOIUrl":"https://doi.org/10.1177/09721509231192174","url":null,"abstract":"This study explores the relationship between LinkedIn ESG-related activities of CEOs and the stock market performance of their respective companies. The study analyses data of CEOs of listed SMEs on Euronext Growth Milan and their LinkedIn activity, along with their company’s performance. In particular, this study focuses on the diffusion of ESG topic-related contents during the COVID-19 pandemic on LinkedIn using a sample of approximately 37 thousand activities and more than 2 million words examined. Clustering the sample of SMEs in n.2 groups by stock performance with k-means method, we applied textual analysis to identify LinkedIn contents containing ESG topic-related contents. The study found a significant and positive correlation between CEOs’ ESG-related LinkedIn and their company’s stock market performance. Results show that CEOs of best performing SMEs share a higher volume of ESG contents and they suggest a role of LinkedIn in ESG information dissemination on financial markets.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135483964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-05DOI: 10.1177/09721509231195167
Subbarao NV, Bindu Chhabra, Manit Mishra
Social connectedness, a key determinant of intention to use in many social media applications is influenced by users’ hedonic (fun, enjoyment) and utilitarian (usefulness) perceptions. This study investigates the effect of social connectedness on job search through social media by using an extended technology acceptance model (TAM) as the theoretical framework. A hypothesized model is examined to understand how job search behaviour is influenced by social connectedness when applying for a job or choosing a company. Data gathered from 578 respondents via an online survey were analysed using covariance-based structural equation modelling (CB-SEM). The study results show social connectedness to have a statistically significant indirect effect on intention to use social media and to be mediated by both utilitarian and hedonic perceptions. However, the mediating influence of hedonic perceptions is perceived to be stronger to suggest job seekers perceive fun in the workplace as a stronger need. The study has implication for organizations to prioritize social connectedness as employee well-being, job performance, talent management and innovation efforts could be enhanced. The study extends and revalidates the TAM model in a job search context and supports its use as a valuable framework for understanding the impact of social connectedness in job search.
{"title":"Fun at Work: Need or Fad? Understanding the Effect of Social Connectedness in Job Search with Social Media","authors":"Subbarao NV, Bindu Chhabra, Manit Mishra","doi":"10.1177/09721509231195167","DOIUrl":"https://doi.org/10.1177/09721509231195167","url":null,"abstract":"Social connectedness, a key determinant of intention to use in many social media applications is influenced by users’ hedonic (fun, enjoyment) and utilitarian (usefulness) perceptions. This study investigates the effect of social connectedness on job search through social media by using an extended technology acceptance model (TAM) as the theoretical framework. A hypothesized model is examined to understand how job search behaviour is influenced by social connectedness when applying for a job or choosing a company. Data gathered from 578 respondents via an online survey were analysed using covariance-based structural equation modelling (CB-SEM). The study results show social connectedness to have a statistically significant indirect effect on intention to use social media and to be mediated by both utilitarian and hedonic perceptions. However, the mediating influence of hedonic perceptions is perceived to be stronger to suggest job seekers perceive fun in the workplace as a stronger need. The study has implication for organizations to prioritize social connectedness as employee well-being, job performance, talent management and innovation efforts could be enhanced. The study extends and revalidates the TAM model in a job search context and supports its use as a valuable framework for understanding the impact of social connectedness in job search.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"57 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135483940","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-05DOI: 10.1177/09721509231195172
Raghuveer Negi, A. Muthusamy, Abuzar Nomani, Shetty Deepa Thangam Geeta
We explore the unplumbed dimension of the O-L-I specific advantage of the firm in this research by shifting the focus from the entry mode of MNEs to problems faced by home-based manufacturer exporters, which is unique from its original concept. The proposed approach transposes the idea and implication of the eclectic paradigm in an international trade setting. To test the upside-down approach of the O-L-I framework, various challenges were identified through EFA and CFA, and in the final phase, the impact of ownership, location and internalization has been measured (using path analysis) on production problems faced by these manufacturer exporters. We used a structured questionnaire to collect the data from 220 motors and pump manufacturer exporters from January to September 2021. Moreover, the Coimbatore city wears the crown of ‘Pump City of Asia’, which makes the spot an ideal place for generalization of research and optimization of desired results. The research outcome illustrates the significant impact of location and internalization on the production problems encountered by the manufacturer exporters. The novelty of the study is substantiated by extending the application of O-L-I specific advantage for FDI to home-based exports, which we labelled as the ‘up-side-down approach’ of the O-L-I framework.
{"title":"Debunking the Production Predicaments among the Motor and Pump Exporters in the Coimbatore Region: Upside-down Approach of O-L-I Framework","authors":"Raghuveer Negi, A. Muthusamy, Abuzar Nomani, Shetty Deepa Thangam Geeta","doi":"10.1177/09721509231195172","DOIUrl":"https://doi.org/10.1177/09721509231195172","url":null,"abstract":"We explore the unplumbed dimension of the O-L-I specific advantage of the firm in this research by shifting the focus from the entry mode of MNEs to problems faced by home-based manufacturer exporters, which is unique from its original concept. The proposed approach transposes the idea and implication of the eclectic paradigm in an international trade setting. To test the upside-down approach of the O-L-I framework, various challenges were identified through EFA and CFA, and in the final phase, the impact of ownership, location and internalization has been measured (using path analysis) on production problems faced by these manufacturer exporters. We used a structured questionnaire to collect the data from 220 motors and pump manufacturer exporters from January to September 2021. Moreover, the Coimbatore city wears the crown of ‘Pump City of Asia’, which makes the spot an ideal place for generalization of research and optimization of desired results. The research outcome illustrates the significant impact of location and internalization on the production problems encountered by the manufacturer exporters. The novelty of the study is substantiated by extending the application of O-L-I specific advantage for FDI to home-based exports, which we labelled as the ‘up-side-down approach’ of the O-L-I framework.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135480875","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aims to analyse the impact of force majeure events or exogenous shocks, characterized by a high level of uncertainty, on the US and European stock market behaviour through cross-regional and inter-industrial comparisons. Based on the sample of 832 largest stock-listed companies publicly traded in both regions, the authors investigate whether specific regional and industrial differences in the stock market reaction to exogenous shocks—as exemplified by the ongoing COVID-19 pandemic—and their recovery paths to be determined. The novelty of the research conducted by the authors is underpinned by the application of a dynamic network analysis method—supported by the exponential random graph modelling—for a data sample of publicly traded companies, encompassing major players and industrial leaders in both regions. Furthermore, the methods are applied quarterly for an identical set of industries in cross-market comparison, within a time span of periods before, during and beyond the exogenous shock. The results reveal significant differences in the reaction of US and European stock markets to exogenous shocks, despite globally integrated financial markets. The connectivity of the largest listed companies on the US market is higher than the European ones. Thus, publicly traded companies in the United States are more likely to be closely connected to their industry peers. As demonstrated by a cross-market comparison of the European and US stock market network configuration, the US network reveals higher probabilities of intra-industrial connections of its market participants. In contrast, the European stock market exhibits fewer connections and a less dense network of market participants in times of uncertainty or exogenous shocks. Except for the European financial industry, which behaves similarly to its US counterpart, the overall interconnectedness of European companies is weaker within the uncertainty-related timespan. The latest could be partially explained by numerous national regulations being implemented at a country level, which are partly deviating from the EU single-market policies. In contrast to a relatively homogeneous setting of the US market, a low level of interconnectedness of publicly traded companies in Europe could be further argued by the application of non-harmonized industrial policies, with the latest being expanded during the ongoing crisis in selected European locations. This difference could also be explained by the absence of a mutual strategy for alleviating the effects of the COVID-19 pandemic in Europe. The obtained results could be valuable for academics, conducting similar thematic research; for portfolio investors, and policymakers in forecasting, reacting and assessing stock market behaviour overall—and at the level of industrial sectors in particular—in response to events characterized as force majeure, exogenous shocks or periods of uncertainty.
{"title":"US and European Stock Markets in Response to Exogenous Shocks: Cross-Regional Analysis of Dynamic Networks During the COVID-19 Pandemic","authors":"Jan-Hendrik Schuenemann, Natallia Katenka, Natalia Ribberink","doi":"10.1177/09721509231158867","DOIUrl":"https://doi.org/10.1177/09721509231158867","url":null,"abstract":"This study aims to analyse the impact of force majeure events or exogenous shocks, characterized by a high level of uncertainty, on the US and European stock market behaviour through cross-regional and inter-industrial comparisons. Based on the sample of 832 largest stock-listed companies publicly traded in both regions, the authors investigate whether specific regional and industrial differences in the stock market reaction to exogenous shocks—as exemplified by the ongoing COVID-19 pandemic—and their recovery paths to be determined. The novelty of the research conducted by the authors is underpinned by the application of a dynamic network analysis method—supported by the exponential random graph modelling—for a data sample of publicly traded companies, encompassing major players and industrial leaders in both regions. Furthermore, the methods are applied quarterly for an identical set of industries in cross-market comparison, within a time span of periods before, during and beyond the exogenous shock. The results reveal significant differences in the reaction of US and European stock markets to exogenous shocks, despite globally integrated financial markets. The connectivity of the largest listed companies on the US market is higher than the European ones. Thus, publicly traded companies in the United States are more likely to be closely connected to their industry peers. As demonstrated by a cross-market comparison of the European and US stock market network configuration, the US network reveals higher probabilities of intra-industrial connections of its market participants. In contrast, the European stock market exhibits fewer connections and a less dense network of market participants in times of uncertainty or exogenous shocks. Except for the European financial industry, which behaves similarly to its US counterpart, the overall interconnectedness of European companies is weaker within the uncertainty-related timespan. The latest could be partially explained by numerous national regulations being implemented at a country level, which are partly deviating from the EU single-market policies. In contrast to a relatively homogeneous setting of the US market, a low level of interconnectedness of publicly traded companies in Europe could be further argued by the application of non-harmonized industrial policies, with the latest being expanded during the ongoing crisis in selected European locations. This difference could also be explained by the absence of a mutual strategy for alleviating the effects of the COVID-19 pandemic in Europe. The obtained results could be valuable for academics, conducting similar thematic research; for portfolio investors, and policymakers in forecasting, reacting and assessing stock market behaviour overall—and at the level of industrial sectors in particular—in response to events characterized as force majeure, exogenous shocks or periods of uncertainty.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135591918","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-10-02DOI: 10.1177/09721509231195673
Francesca Battaglia, Mario Ossorio, Paolo Fiorillo, Dario Salerno
Understanding the drivers of innovation in family firms is essential for their survival. While previous studies have mainly investigated innovation behaviours in private or public family firms, we focus on their R&D investment in the year following an IPO. Observing family firms in this context is crucial because it allows to analyse their propensity to innovate when financing constraints are relaxed. This work aims to investigate whether a relationship exists between R&D expenditures and family ownership in the setting of Initial Public Offerings (IPOs). Using a sample of IPOs in the period 2013–2018 by 132 French and Italian family and non-family firms, results reveal the existence of a U-shaped relationship in this regard. In addition, the curvilinear relationship is positively influenced by institutional investors. This study contributes to the debate around family firms’ innovation propensity, as well as to the literature on the heterogeneity among family firms.
{"title":"Family Ownership After Going Public: Exploring Nonlinear Effect on Innovation Inputs and the Role of Institutional Investors","authors":"Francesca Battaglia, Mario Ossorio, Paolo Fiorillo, Dario Salerno","doi":"10.1177/09721509231195673","DOIUrl":"https://doi.org/10.1177/09721509231195673","url":null,"abstract":"Understanding the drivers of innovation in family firms is essential for their survival. While previous studies have mainly investigated innovation behaviours in private or public family firms, we focus on their R&D investment in the year following an IPO. Observing family firms in this context is crucial because it allows to analyse their propensity to innovate when financing constraints are relaxed. This work aims to investigate whether a relationship exists between R&D expenditures and family ownership in the setting of Initial Public Offerings (IPOs). Using a sample of IPOs in the period 2013–2018 by 132 French and Italian family and non-family firms, results reveal the existence of a U-shaped relationship in this regard. In addition, the curvilinear relationship is positively influenced by institutional investors. This study contributes to the debate around family firms’ innovation propensity, as well as to the literature on the heterogeneity among family firms.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-10-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135899233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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