Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal最新文献

{"title":"Trade Sides or Trade Modes: What Matters for Productivity Sorting of International Traders? Evidence from Latin American Countries","authors":"Marco Di Cintio, Emanuele Grassi, C. Petti","doi":"10.2139/ssrn.3452687","DOIUrl":"https://doi.org/10.2139/ssrn.3452687","url":null,"abstract":"In this paper, we complement the empirical evidence on the productivity sorting literature by considering different modes of import combined with different modes of export. Using the data of six Latin American countries, we test the first-order stochastic dominance to evaluate the Total Factor Productivity (TFP) differences among eight categories of traders. Our main result shows that, rather than the side, it is the mode of trade that matters. We show that the most productive firms choose to trade directly. In addition, firms that are both importers and exporters are more productive than firms active just on one side of the international market. Provided that the mode of trade is the same, firms that just import do not differ from those that just export. Similarly, we did not find a significant productivity difference between firms trading directly on one of the two trade sides and indirectly on the other. Thus, we concluded that direct two-way traders have the highest TFP, followed by direct one-way traders and then mixed two-way traders, indirect two-way traders, and, finally, indirect one-way traders.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"220 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122330800","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}

{"title":"Firm Heterogeneity, Market Power and Macroeconomic Fragility","authors":"A. Ferrari, Francisco Queirós","doi":"10.2139/ssrn.3466783","DOIUrl":"https://doi.org/10.2139/ssrn.3466783","url":null,"abstract":"We investigate how firm heterogeneity and market power affect macroeconomic fragility, defined as the probability of long-lasting recessions.We propose a theory in which the positive interaction between firm entry, competition and factor supply can give rise to multiple steady-states.We show that when firm heterogeneity is large, even small temporary shocks can trigger firm exit and make the economy spiral in a competition-driven poverty trap. Calibrating our model to incorporate the well-documented trends in increasing firm heterogeneity we find that, relative to 2007, an economy with the 1985 level of firm heterogeneity is 5 to 9 times less likely to experience a very persistent recession. We use our framework to study the 2008–09 recession and show that the model can rationalize the persistent deviation of output and most macroeconomic aggregates from trend, including the behavior of net entry, markups and the labor share. Post-crisis cross-industry data corroborates our proposed mechanism. Firm subsidies can be powerful in preventing quasi-permanent recessions and can lead to a 21% increase in welfare.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127445456","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}

{"title":"In the Eye of the Storm: Firms and Capital Destruction in India","authors":"Martino Pelli, J. Tschopp, N. Bezmaternykh, Kodjovi M. Eklou","doi":"10.2139/ssrn.3449708","DOIUrl":"https://doi.org/10.2139/ssrn.3449708","url":null,"abstract":"This paper examines the response of firms to capital destruction, using a new measure of firm\u0000exposure to tropical storms as a negative exogenous shock on firms’ capital stock. Drawing on a\u0000panel of Indian manufacturing firms between 1995 and 2006, we establish that, depending on their\u0000strength, storms destroy up to 75.3% of the fixed assets of the median firm (in terms of its\u0000productivity and industry performance). We quantify the response of firm sales within and across\u0000industries and find effects akin to Schumpeterian creative destruction, where surviving firms build\u0000back better. Within an industry, the sales of less productive firms decrease disproportionately\u0000more, while across industries capital destruction leads to a shift in sales towards more performing\u0000industries. This build-back better effect is driven by firms active in multiple industries and, to a\u0000large extent, by shifts in the firm-level production mix within a firm’s active set of industries.\u0000Finally, while there is no evidence that firms adjust by investing in new industry lines, firms tend\u0000to abandon production in industries that exhibit lower comparative advantage.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115010338","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}

{"title":"The Powers that Be: Concentration of Authority Within the Board of Directors and Variability in Firm Performance","authors":"Hai Tran, Jason Turkiela","doi":"10.2139/ssrn.3318660","DOIUrl":"https://doi.org/10.2139/ssrn.3318660","url":null,"abstract":"In this study, we examine how the concentration of authority within the board of directors affects the variability of firm performance. Using directors' committee assignments as a proxy for decision-making power, we develop two unique measures of board concentration of authority. We find that firms with greater concentration of power within their boards have higher variability in firm performance. In additional tests, we demonstrate that our results are not driven by endogeneity bias. Finally, we also show concentrated boards adopt more extreme corporate strategies, providing several different mechanisms through which board concentration of power affects firm performance volatility.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127657766","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}

{"title":"Carmax: Driving What's Possible","authors":"R. Nelson, Ryan Wright","doi":"10.2139/ssrn.3445956","DOIUrl":"https://doi.org/10.2139/ssrn.3445956","url":null,"abstract":"CarMax, based in Richmond, Virginia, is the largest retailer of used cars in the United States. Over the past several years leading up to 2019, CarMax has undergone a major digital transformation, integrating agile, lean, and user experience (UX) design best practices to become a customer-centric, product-driven organization.In this case, CarMax is facing new competitors (e.g., digital native players Carvana and CarsDirect), changing consumer shopping behavior, and technological advancements in electric cars, autonomous vehicles, and ride-sharing platforms. In order to maintain its dominant position in the used-car marketplace, CarMax must continue to evolve from a traditional brick-and-mortar model marked by legacy corporate practices (such as annual roadmaps and budget cycles) to a product-focused, omnichannel experience that delivers significant value to its customers. \u0000Excerpt \u0000UVA-S-0317 \u0000Aug. 26, 2019 \u0000CarMax: Driving What's Possible \u0000CarMax, a Fortune 200 company, was the largest used-vehicle retailer in the United States in 2019, operating 206 stores in 102 markets nationwide. Started as “just a test” by then–electronic giant Circuit City in 1993, “CarMax revolutionized the auto industry by delivering an honest, transparent, and high-integrity car buying experience” to its customers. For 26 years, CarMax's focus had been on making “car buying more ethical, fair, and stress free by offering a no-haggle experience and an incredible selection of vehicles.” In addition, CarMax had made car selling easy by offering no-obligation appraisals good for seven days, using the slogan “At CarMax, we'll buy your car even if you don't buy ours.” Headquartered in Richmond, Virginia, as of February 2019, CarMax had “nearly 25,000 associates nationwide and for 15 consecutive years [had] been named as one of the Fortune 100 Best Companies to Work For.” \u0000The size of the pre-owned market in 2019 was at the highest levels since the recession, with sales of over 40 million vehicles totaling over $ 150 billion. Competition for this market included local dealer franchises that sold used cars, and large traditional players such as CarMax, Penske, AutoNation, and Lithia, plus a host of online dealerships that had recently emerged, such as CarsDirect and Carvana. Despite the intense competition, CarMax's sales had remained strong with impressive financial results (see Exhibit 1). CarMax sold more than one million vehicles (748,961 retail and 447,491 wholesale) in fiscal year 2019, a 7% increase from the previous year, while posting over $ 18 billion in revenue. In addition to selling more cars than any other used car dealer, an industry source reported that CarMax had the highest gross profit margin (over $ 2,100) and the highest gross profit per unit sold (10.7%). By comparison, upstart Carvana made less than $ 1,000 per car and a gross profit of about 5% per unit sold. \u0000In addition to competing through their different business models, the entire automotive industr","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133185086","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}

{"title":"Financing Fixed Assets Decision: An Analysis","authors":"Dr. G. Rajendran","doi":"10.34218/ijm.10.4.2019.010","DOIUrl":"https://doi.org/10.34218/ijm.10.4.2019.010","url":null,"abstract":"The investment in fixed assets is imperative for carrying out the operating activities of a business concern. It determines the profitability, growth, risk reduction and social goals of the business concern. Financing fixed assets is a challenging task. This is true especially in the case of manufacturing concerns. Financing fixed assets is one of the significant aspects of fixed assets management. It requires a large cash outlay and, thus, involves a crucial financial decision. It is very difficult to reverse after the decision has been taken. The financial manager, therefore, has to take such a decision with utmost care. The present paper focuses on the real corporate world practices regarding financing fixed assets decision in the management of fixed assets. The main aim is to enlighten the shareholders, creditors, investors, bankers, prospective entrepreneurs, students and academicians relating to financing fixed assets decision and its implications. The study would reveal how far, the risk and return associated with the financing mix and a trade-off between risk and return will result in an acceptable financing strategy for most of business concerns.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127125450","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}

{"title":"Investigating Firm Heterogeneity in Country-of-Origin Cluster Location Choice Decisions","authors":"Francisco Puig, A. Madhok, Zhi Shen","doi":"10.1108/mbr-07-2018-0051","DOIUrl":"https://doi.org/10.1108/mbr-07-2018-0051","url":null,"abstract":"\u0000Purpose\u0000This paper aims to analyse which firm-level characteristics drive their location decisions when investing in a foreign country. Focusing on origin clusters, the authors will study the potential influence of the home country context and, in particular, the impact of firm-level factors, both investor- and investment-related, underlying heterogeneity in their location choice decisions.\u0000\u0000\u0000Design/methodology/approach\u0000The empirical analysis draws on data gathered from mainland Chinese MNEs that have invested in Germany between 2005 and 2013 (269 firms). The authors chose a single host (Germany) and a single home (China) country for their representativeness and for methodological reasons to control for country effects. The authors used a multinomial logit model to assess the effects of the independent variables on the probability that each of the three location possibilities would be selected.\u0000\u0000\u0000Findings\u0000The results suggest that investors preferring co-location in origin clusters have distinct structural and strategic characteristics. From a more structural point of view, Chinese foreign direct investment (FDI) undertaken by smaller firms and those without prior experience in the EU prefer an area where there are other Chinese investors. From a more strategic perspective, these FDI flows are more likely to tap into industry agglomerations when the investors’ objective is strategic asset seeking, and they have less knowledge-intensive investments.\u0000\u0000\u0000Practical implications\u0000The findings may be of great practical value to practitioners and policymakers. Knowledge of the advantages and disadvantages of the types of agglomeration networks can help managers to balance the rewards and risks in their decision-making and to select a suitable development path for their FDIs. For policymakers, an understanding of the structure and formation of different groups of firms in one location and the characteristics of investors who may enter the location can help them to improve their regulatory work and to develop policies to attract investments, thereby enhancing local economic development and community stability.\u0000\u0000\u0000Originality/value\u0000The research shifts the emphasis of the location choice decision beyond just where to locate toward with whom to collocate. It also contributes to the growing research on emerging market multinationals by providing further insight into understanding of FDI location behavior by firms from emerging economies.\u0000","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126167006","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}

{"title":"Insulin Insulated: Barriers to Competition in the United States Insulin Market","authors":"Ryan P Knox","doi":"10.2139/ssrn.3441664","DOIUrl":"https://doi.org/10.2139/ssrn.3441664","url":null,"abstract":"Insulin is increasingly unaffordable in the United States. Despite the fact that insulin was developed almost one hundred years ago, the insulin market is dominated by only three companies, and there continue to be no biosimilar competitors in the United States. Insulin has been insulated from competition for years. However, insulin is unlike many other high-priced prescription drugs and faces several unique legal, regulatory, and practical challenges to permitting increased competition in the market. This Article examines the barriers to competition in the insulin market, considering the challenges surrounding regulatory approval, pricing, interchangeability, trade secrets, and anti-competitive behavior. In doing so, this Article attempts to explain why there is such limited competition in the insulin market and raises considerations in developing competition-based proposals to address access to affordable insulin in the United States.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"211 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132439325","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}

{"title":"The Extent of Engagement in Global Value Chains by Firms in Rwanda","authors":"G. Frazer, Johannes Van Biesebroeck","doi":"10.1596/1813-9450-8979","DOIUrl":"https://doi.org/10.1596/1813-9450-8979","url":null,"abstract":"Using administrative data for an exhaustive sample of formally registered firms, reveals that the engagement of Rwandan firms in global value chains (GVCs) is remarkably limited. The paper documents several patterns of firm-level exports and compares firm characteristics between exporters and non-exporters. It also illustrates which firm-level characteristics are good predictors for a variety of extensive margins of export and import activities. The analysis includes firms from three goods-producing sectors, agriculture, mining, and manufacturing, but focuses mostly on manufacturing firms. The results indicate large differences between small and large exporters in terms of export market participation, type of products exported, and destinations served. GVC engagement has increased over the 2008-2016 sample period, especially for manufacturing firms, but this is a slow process with frequent set-backs.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"144 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115469114","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}

{"title":"The Perceptions of Managers on the Usefulness of Accounting Information during the Decision-Making Process (Case Study: Iran Khodro Automotive Co)","authors":"Harriet Borteley Botchway, Hadi Rashedi","doi":"10.2139/ssrn.3514157","DOIUrl":"https://doi.org/10.2139/ssrn.3514157","url":null,"abstract":"Accounting information plays a decision-facilitating role since it possesses value relevance capabilities to enhance decision making. Through the use of accounting information, managers are enabled to ascertain the meaning and significance of day-to-day activities of an entity. In this regard, the aim of this study is to examine the perceptions of managers on the usefulness of accounting information during decision-making process. The study employs the qualitative research method. This method aids discovering meanings that people attribute to events they experience. The study investigates the perceptions and views of respondents on the usefulness of accounting information in the decision-making process. In doing so, the study locates meanings that managers confer on the subject matter. The study finds that managers find accounting information useful in various stages of the decision- making process. The study indicates that usefulness of accounting information in decision making is influenced by the roles of accounting information in financial management, investment decision making, organizational growth, performance evaluation and determination of organizational profitability and position. The study recommends that participant observation or ethnography should be used by researchers for further studies in order to critically assess how managers engage with accounting information in the decision-making process.","PeriodicalId":236490,"journal":{"name":"Emerging Markets Economics: Firm Behavior & Microeconomic Issues eJournal","volume":"201 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114594588","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}