Competitive Effects of Intra-Industry Public Equity Offerings on Stock Repurchases and Bond Issuance Decisions of Rival Firms: Empirical evidence from the Nordic Region.

nhhma

The Effects of Transactional Barriers on the Effectiveness of a Firm’s Competitive Strategy

Extant literature has shown that firms’ decisions can exert a bearing on the effectiveness of their competitive strategy. This paper seeks to extend this body of literature by demonstrating how and under what circumstances a firm’s decision about transactional barriers, which it can impose on its customers, can impact the degree to which it can effectively deploy its competitive strategy in realizing its maximum possible profits. The study’s main findings demonstrate that at equilibrium, the size of the set transactional barrier is on average inversely related to the effectiveness of the firm’s competitive strategy, holding constant the consumers' income and other factors. Furthermore, the effectiveness of the firm’s competitive strategy in attaining the firm’s optimal profits is jointly and individually enervated by the price elasticity of the firm’s product demand and the size of the transactional barrier that it imposes on its customers. Additionally, the effectiveness of the firm’s competitive strategy tends to be maximized as the size of the transactional barrier tends to be zero. Therefore, the findings in this paper suggest that under the assumptions of the model in this paper, the optimal size of a transactional barrier to be imposed by a firm, in the service industry, should be zero. &nbsp

Microfoundations of Organizational Growth: Consequences for Entry Strategies and Financing of New Ventures

An enormous number of firms fail to deliver economically profitable growth in output even though they may have strong managerial teams and adequate capital.  In this paper, we provide new empirical evidence to demonstrate a few fundamental factors that can account for the ability of a firm to achieve economically sustainable scaling. In a bid to achieve that, we surveyed and discussed the prevailing theories that have established various grounds for organizational growth. On the basis of these theories, we hypothesized about the likely microfoundations for organizational growth.  We went further to test these hypotheses using empirical data for all publicly-listed Nordic firms over a lengthy span of time, specifically ranging from 1990 to 2020. To implement the test, we established an econometric model, which is predicated on variables that we argued are capable of serving as a proxy for the microfoundations identified. It is our submission that effective and sustainable attainment of growth in output requires a new entrant to develop strategies that are centered on innovative products, as well as target highly concentrated industries, which are characterized by large markets, while financing such economic activities using equity capital as against debt capital

The Implications of the Incursion of Cryptocurrency on the Effectiveness of Fiscal Policy

Existing literature has examined a plethora of factors that can affect the effectiveness, performance or nature of fiscal policy in an economy. In this paper we build on the fundamental tenets of micro-economic models to examine the potential ways cryptocurrencies can affect the effectiveness of a country’s fiscal policy. Our finding is that under the assumptions of an absence of uncertainties, perfectly competitive markets, household utility maximization, and usage of public money and cryptocurrency, the government purchases as well as the ability of the government to raise funds by issuing bonds and by taxation is decreasing in new investments in cryptocurrencies but increasing in the income earned from cryptocurrencies. We go further to discuss the factors that account for the sustained ability of cryptocurrencies to weaken the state’s fiscal-policy capabilities and possible ways the effects of cryptocurrencies on the state’s fiscal integrity can be mitigated.</jats:p