Eurasian Business Review

In this paper, we examine how the cash holdings have an impact on R&D expenditures and whether the ownership mechanisms moderate the R&D expenditures- the resource of internal funds relationship. The result showed that cash holdings have a positively relationship with R&D expenditures. Specially, we found that institutional ownership had a positive moderating effect of the R&D expenditures-the resource of internal funds relationship. In additional analysis, the large business group and the share of managers doesn’t moderate the relationship between cash holdings and R&D expenditures. These results provide that institutional investor in Korea tend to be long-term oriented, “active” and “sophisticated” investor. They are less likely to evaluate corporate executives on the basis of short-term earnings alone and are more likely to support value-creating.

Evidence exploring the relationship between corporate social responsibility (CSR) disclosure and corporate financial performance (CFP) is consistently inconsistent, if not outright contradictory. We assert that much of this confusion is due to a failure to integrate both firm internal performance and the external environment into theoretical and empirical analyses of the effect of CSR disclosure on firm efficiency. This paper attempts to bring these two facets together in an examination of banking sector efficiency in a situation where the entire external environment is in flux, namely transition. Using a database of 319 banks from 21 transition countries, and using dynamic panel and quantile regressions, we provide empirical evidence that banks in transition countries saw benefits in firm performance only when CSR activities were layered on top of a strategy which already was profitable. Indeed, once profitability was achieved, only then did CSR disclosure begin to confer a competitive edge in developing firm resources. However, the external environment continues to exert an influence, and even where banks met profitability goals, predatory institutions can still make engaging in CSR a detriment to competitive advantage.

This article investigates if there are valuation and operating performance gains from international cross listing, using a sample of 55 Taiwanese firms that instituted deposit receipt (DR) programs in the US, the UK and Luxemburg from 1992 to 2009. We find that Tobin’s q, stock returns and operating performance of DR issuers deteriorate and under-perform their benchmarks substantially after issue. Taiwan has been an emerging market not very accessible for foreign investors for the best part of our sample period and DR issuers from Taiwan should be in a better position to reap valuation gains and other benefits by listing their shares in more prestigious markets. Our findings suggest that the potential benefits of international cross listing might not be as significant as previously thought. These results are of practical relevance and contribute to the ongoing debate on the costs and benefits of international cross listing.

This study investigates the link between productivity and innovations (technological as well as non-technological), taking into account the information and communication technology (ICT) intensity of firms, measured as the proportion of broadband internet connected employees. The analysis is based on official firm-level data on innovation activities and ICT usage in firms for the years 2002–2010, linked to the business registers and the production statistics in ten European countries. The datasets encompass 117,000 firm-year observations. Estimation results reveal that firm productivity is significantly related to product innovations, but to a lesser extent than broadband connected employees. The strength of the association varies across countries and between manufacturing and service firms. As a contrast, process, marketing and organizational innovations are not significantly related to productivity in the majority of countries. Overall, broadband usage appears to be a better predictor of productivity than product innovations.

The purpose of this paper is to identify the critical determinants of Bangladeshi small and medium-sized enterprises’ intention to continue their business. 1724 business owners participated as respondents in this survey. Using logistic regression, our results suggest that continuance intention is affected positively by innovation, informality, risk attitude, and debt. On the other hand, the age of the business owner and the size of firm do not play any significant role in this intention. The probability of continuance in the presence of each of these factors is also calculated in Manufacturing, Service, and Trade sectors separately. Understanding the influential determinants of continuance intention of business owners would help the policy makers to devise appropriate policies from a better insight to support the industry in different sectors.

A substantial literature claims that the strong increase in inequality over the last decade in Western industrial countries such as the United States (US) would lead to increasing tensions between different socio-economic groups which might in turn hamper economic growth. The population’s fading hopes regarding the outlook on the future seem to confirm this. This paper qualifies this interpretation using survey data collected by the Pew Research Center for the People covering 1999–2014. Over the first decade, the decline in hope cannot be traced back to the rising inequality. However, recent data from 2014 suggest that inequality is now a major driver of a lower than ever level of hope. Hence inequality is a recent factor, not the driver of the long-term decline in hope.

We examine whether video surveillance data enables improved retail performance. We analyze sales data collected from six sporting goods stores. We relate the sales data to an experiment where three stores had placebo video surveillance, and the other three stores made use of information learned in the video surveillance starting half-way through the sample period. A difference-in-differences analysis of the data indicates the use of video surveillance enables a substantial increase in total sales per hour, the number of transactions per hour, and the average size of each transaction.

This study investigates and determines the most crucial factors that impact electronic commerce (EC) adoption among home-based business (HBB) owners in an emerging economy i.e. Malaysia and developed economy i.e. Singapore. An empirical survey research was conducted and 150 home-based business owners participated from Malaysia and Singapore respectively. The research is descriptive and causal in nature, interviews and data collection from both countries were conducted between June 2017 to April 2018. Data analysis was done using statistical software SPSS version 24 and SmartPLS 3.0. Findings reveal HBB owners’ IT knowledge, risk perception and online trust are significant predictors of their EC adoption and online trust is found to be the most important factor that contributes to EC adoption collectively for both countries. HBB owners from both countries are found to have different sets of ranking for EC adoption drivers as indicated by the importance-performance map analysis chart. The governments’ role in encouraging HBB ownership in the wake of Industry 4.0 can be enhanced in both countries. HBB Owners could be empowered with the right training, awareness and policy that is HBB friendly. Especially in Malaysia, risk perception is still a significant hindrance for HBB owners to engage in EC. This study pioneers in comparative EC adoption research between a developed and an emerging economy who are neighboring each other and share rich history together. The results assist in understanding the dynamics of EC in this region as well as pave paths for further research inquiries, especially with the advent of Big Data and increasing numbers of HBB owners in both countries powered by Social Media.

This paper analyzes the factors that affect delays in the signing of audit reports. Audit delays are measured by the number of days that elapse from the end of the financial year until the date when the auditor report is signed. Previous studies of audit delays in various countries are reviewed, along with some of the results of the variables that were tested. This study focuses on 149 and 177 companies listed on the Kuwait stock market in 2006 and 2007, respectively. Six explanatory variables are tested to investigate delays in issuing audit reports. The results show that company size is the only variable that negatively correlates with audit delay in the period tested. The variables industry classification, leverage, percentage change in earning per share, type of auditors, and liquidity show no significant correlation with audit delays for listed companies in Kuwait. Liquidity, leverage, and type of auditors are negatively correlated with audit delay in 2006 for the first two variables and in 2007 for the type of auditors. Future research would consider other variables such as other interpretation of company size, ownership concentration, quality of internal control, direction of income or loss, and the mix of audit work

The nature of innovation persistence is still open to debate. In this paper, we attempt to shed some light to the topic by providing a novel analysis of the impact of exporting strategies on changes in innovative status. We derive exhaustive information regarding the innovative behavior of firms using a large sample extracted from the Spanish Technological Innovation Panel. Applying both a multinomial and a random-effects probabilistic approach, we observe that exporting experience is relevant to guarantee stability in innovation activities. However, firms exporting only to the EU are comparatively less persistent than those with a broader geographical range, as nearer and safer markets provide less incentives to innovation activities than engaging in broader commercial ventures.