Khushboo Gupta1, Venkata Ramana Thanikella2, Omkar Singh Deol3 and Kanishka Gupta4
The objective of the current paper is to study the relationship between company financial factors, macroeconomic factors and the market measures of risk of the Consumer Goods Sector of the Indian economy. Systematic, unsystematic and total risks are the measures of the risk used. Dynamic panel data regression techniques have been applied to the data of the companies comprising the S&P BSE FMCG index of the Bombay Stock Exchange (BSE) of India. The time frame established for the study is the period from 2011 to 2020. The results show that on average 89.6 percent of total risk is attributable to the unsystematic portion, whereas the rest is attributable to the systematic portion. Furthermore, both the financial variables and macroeconomic variables can be used to gauge the risk related to investments. Moreover, marketing personnel may justify their expenditure that builds their brand value as these efforts will reduce the risk for investors and increase their wealth. The results of this study are especially useful for business managers, as well as investors, helping them to understand risk and the factors contributing to it, which may provide useful insights regarding cost-of-capital and value-of-firm calculations.
Nada Trivić1 and Bojana Todić2
The theoretical model of a perfectly competitive market leads to the efficient allocation of resources, and one of the assumptions of that model is complete information of market participants. In reality, however, market participants are usually asymmetrically informed. The goal of this analysis is to point out the fact that asymmetric information is almost ubiquitous, and also to point out the consequences of asymmetric information and the possibility of their elimination or mitigation. In addition, the research aim also reflects in achieving a theoretical confirmation of the presence of such asymmetric information and its consequences on the labor market as well, and in an attempt to mathematically formalize such markets, especially the labor market, by modeling the method of calculating wages and the employer’s objective function as an opportunity to overcome the principal-agent problem. The precisely defined research goals determined the structure of the paper, as well as the methodological tools. In order to test and prove the defined research hypotheses in this study and to realize the defined research goals of the study, the methods of theoretical analysis, abstraction, comparison, concretization, generalization, and critical evaluation are used.
Vallari Chandna
Temporary organizations take on numerous forms and can be found within and across traditional organizational forms. With the rise of remote work, born-global organizations and collaborative work, temporary organizations are becoming more prevalent. They are playing critical roles in a host of situations and organizational leaders need to better understand the phenomena so as to be able to navigate and utilize them correctly. In this paper, a conceptual model intended to understand how temporary organizations partially embedded in multiple parent organizations are being faced with unique identity issues is proposed. The individuals involved with such boundary spanning temporary organizations have identity issues due to their multiple identities being at odds with each other. Using the theories of temporary organizational forms and the social identity, the given conceptual framework shows that the dilemmas related to multiple identities can be resolved by: buffering and ordering identities, self-selecting into temporary organizational forms, and acknowledging such multiple identities and allowing them to simultaneously be salient. Additionally, the consequences of a lack of resolution are explored, including reduced group cohesion, lower performance and the unethical behavior on the part of the pro-parent organization.
Vlastimir Leković
After a double-blind peer review procedure had been conducted and after the received manuscripts had been improved, the Issue 1 Volume 24 Year 2022 of the Economic Horizons scientific journal contains a total of five scientific and one review paper and the Announcement of the Scientific Conference, apart from the Editorial.
Nyore Sandra Ofogbe, Chidiebere Nnamani, Chika Anastesia Anisiuba and Charity Nkeiru Ezuwore-Obodoekwe
This study is aimed at analyzing the influence of Corporate Social Responsibility (CSR) on the Cost of the Capital (CoC) of the companies quoted on the Nigerian Stock Exchange (NSE). The annual panel data of the 32 companies quoted on the NSE pertaining to the period from 2005 to 2019, were judgmentally selected. The Thomson Reuthers Index was used as the measure for CSR, whereas the Cost of Equity (CoE) and the Cost of Debt (CoD) were used as the measure for CoC. The findings revealed the existence of a positive/negative nonsignificant relationship, on the one hand, and a positive/negative significant relationship as well, on the other, between CSR and CoC. The results obtained are supportive of the findings found in scholars’ works, especially those in the developed countries in which this aspect has extensively been explored. To conclude, the companies that spend on CSR have a better chance of accessing capital at a better and low cost. Based absolutely on the findings, the researcher advocates that investment should incessantly be made in the issues concerning CSR, given the fact that, if consistently made, such investment may ease access to funds at a reduced cost.
Anh Thu Nguyen1 and Thi Mai Thanh Tran2
The Association of Southeast Asian Nations (ASEAN) considers trade facilitation as a driving force in forming a single market and a single production base. This paper constructs an ASEAN scorecard for measuring the performance of trade facilitation strategic plans by ASEAN member states. Next, a structural gravity model is used in the paper in order to estimate the trade facilitation performance influence on ASEAN trade flows. The fact that the indicator of easing Nontariff Barriers (NTBs) and institutional coordination, on the one hand, and the ASEAN member states’ engagement indicator, on the other, had the highest enforcement scores in ASEAN in the period 2017-2019. Those two indicators also exert the biggest influence on ASEAN trade flows, especially ASEAN extra-regional trade.
Maria Rio Rita, Yeterina Widi Nugrahanti and Ari Budi Kristanto
This study aims to examine whether Peer-to-Peer (P2P) lending, financial bootstrapping and government support affect the performance of Micro, Small, and Medium-sized Enterprises (MSMEs) by adding a mediating variable in the form of innovation. Innovation mediation is expected to be able to optimize the influence of government funding and incentives towards improving business performance. This study used an SEM-PLS analysis technique. The study samples were the MSMEs located in the city of Salatiga – Central Java, Indonesia. The results showed that P2P lending and financial bootstrapping had a positive effect on business performance and innovation. While government support had a positive effect on innovation, on the one hand, it had no effect on business performance, on the other. Innovation itself is proven to have an influence on business performance. This study also finds that innovation mediates the effect of P2P lending on business performance, facilitates the effect of financial bootstrapping on business performance and reconciles the effect of government support on business performance.
Aleksandra Bošković
In the digitalization era, traditional organizational success factors have been called into question, so it is necessary to reconsider the established work patterns and find new ways to create sustainable value. Given the fact that, as bearers of knowledge, people are the key drivers of value, it is important to explore possible ways to improve their potential. The research study carried out in this paper is aimed showing that autonomy contributes to the development of employee engagement in the digital environment, especially so in remote working conditions. In that sense, the concept of employee engagement was explained, as a state of high vigor, dedication and absorption. Possible ways to improve engagement through increasing autonomy are pointed out as well. The empirical research has confirmed that autonomy has a positive effect on vigor and dedication as the engagement dimensions. The impact autonomy exerts on vigor is stronger in the employees working remotely in comparison with those who do not work remotely.
Lich Khac Hoang1, Binh Tan Cao2, Kim My Le2 and Dung Thi Thuy Nguyen2
This paper examines the impact of taxes on the economic growth based on classifying countries by GDP per capita and a tax burden. The Partitioning Around Medoids (PAM) technique is used because it is not too sensitive to outliers. Through this multicriteria classification technique, the Generalized Method of Moments (GMM) is employed to analyze the data of the three groups consisting of 63 countries from 2003 to 2017. The results show that most taxes have a positive impact on economic growth in poor countries (Group 1). Interestingly, taxes on goods and services promote economic growth in rich countries (Group 3), rather than having a negative effect, as is concluded by some previous studies. Specially, while the property tax has a negative effect on economic growth in rich countries, its impact is significantly positive in poor countries.