Financial system development in central and Eastern Europe: time for equity culture?

Equity culture is underdeveloped in Central and Eastern Europe. The corporate sector's dependence on debt as an external source of capital, scarce and illiquid capital markets and distrust in corporate sharing are the reasons for this. Yet, according to a number of surveys, firms are dissatisfied with the existing forms of debt driven external capital. The barriers of access to capital and the cost of capital are high resulting in unattractive and inflexible financing options. However, the availability of capital is a necessity for corporate existence and economic growth. The question of the viability of equity financing development as an alternative to the traditional debt financing in the transition economies of Central and Eastern Europe puzzles many. National policymakers as well as domestic and foreign investors need this question answered so that time and effort is not wasted on pursuing unviable strategies and creating unrealistic investment plans. The development of an equity culture in the CEECs is the main focus of this study. We develop a theory-bridging conceptual framework through which we attempt to demonstrate what factors contribute to its formation. We maintain that fIrms seeking equity finance are the main drivers for equity culture development in a country. This demand is affected by the size of transaction costs these finns incur in the process of searching for, establishing and co-ordinating contractual relationships with equity providers. We establish that the size of transaction costs is detennined by a set of conditions stemming from internal (managerial) and external (macro-economic and institutional) environments impacting the firm. The conceptual framework is empirically tested using quantitative data on ten Central and Eastern European countries (CEECs) (EU member countries since 2004 and 2007) for a continuous period of thirteen years (1996-2008). Firstly, a relatively new graphical display method - the Co-Plot method - is applied to cluster the gathered data. This method facilitates benchmarking against two representatives of the equity oriented financial system (UK and USA) and two representatives of the bank (debt) oriented financial system (Germany and Japan). The outcome of this analysis is the identification of three separate groups within our sample ofCEECs (Leaders, Potentials, Laggards) in terms of the potential for equity culture development they exhibit. Secondly, a regression analysis follows. It determines causal relationships between the demand-based dependent variables and independent variables represented by equity culture supportive conditions. Regressions are performed while controlling for different finn sizes (Large finns, SMEs, Micro firms and the total number of firms) to detennine the driving factors of equity culture development for each firm size individually as differing effects are expected. Furthermore, we carry out the regression analysis while controlling for the groups of Leaders, Potentials, and Laggards on a case by case basis. Finally, a qualitative comparative analysis for three CEECs, Slovakia, Hungary and Bulgaria, (each being a representative for a group with different potential for equity culture development) is provided. Our findings suggest that CEECs belonging to the group of Leaders have the macroeconomic and institutional conditions necessary for the development of an equity culture in place and that it is the equity-oriented financial institutions and the managerial capabilities which require further attention so that equity culture can be fully developed. By contrast, countries from the Potentials group have the macroeconomic performance required for the development of an advanced equity-based fmancial system, however the conditions stemming from the institutional (including both quality as weil as adequacy of equityiii r I .1 oriented financial intermediaries) and the managerial environment need improving. The results for the group of Laggards indicate that in order for an equity culture to be able to develop, a complex set of macro-economic, institutional and managerial conditions requires attention. Furthermore, we establish that large firms do not necessarily require the presence of adequate managerial conditions for them to become the drivers of equity culture development. In the case of SMEs we fmd that it i& primarily the presence of appropriate institutional rather than macro-economic and managerial conditions that have be satisfied in order for these finns to opt for equity finance. Finally. our results for micro firms imply that although the presence of adequate macro-economic and institutional conditions is important, however, it is not sufficient. It is the presence of appropriate managerial conditions which motivate micro firms to consider equity finance. Our study contributes to the existing literature in several ways. Firstly, it contributes to theory by providing a Dew conceptual perspective on the financial system development and finn financing options in transition economies typical for their limited experience with equity financing and an underdeveloped equity culture, such as the CEECs. Secondly, it provides contributions to practice by proposing managerial and policy recommendations, how to identify best investment targets, and how to support equity culture development should it be desired

Kent SME Internationalisation Study

The Kent SME Internationalisation Study 2016/2017 investigates the internationalisation status of SMEs located Kent, UK. The core aims of the study are the understanding of the existing levels of SME international activities; the identification of drivers for and barriers to SME cross-border activities; the assessment of the existing support mechanisms; the initiation of the Brexit impact discussion; and ultimately the provision of recommendations on the increase of internationalisation capacity and activity among Kent businesses. The rationale for the SME focus is due to the significant population of SMEs in the region and their contribution to economic growth, as SMEs create employment opportunities, contribute to achieving higher production volumes, boost exports and drive innovation

Students’ Enactment of Feedback Through a Series of Graded Low-Stake Learning-Oriented Presentations.

For feedback to be effective, students must have opportunities to take action based on information provided. We explored students’ enactment of feedback and enhanced learning behaviours through a series of graded low-stake learning-oriented presentations. 70 final year International Business undergraduate students at a UK university were assessed by peers and staff on eight group presentations each contributing 2.5% to their final grade. This allowed for dialogic peer feedback, presentation skill improvement, knowledge exchange, critique and enactment of feedback in subsequent presentations (Carless, 2013b, Bearman et al, 2014, Nicol et al, 2014). Central to the dialogic nature of the peer feedback interactions was the meaning making and influence this had upon students’ future learning behaviours (Ajjawi & Boud, 2017; Yang & Carless, 2013). Students were surveyed about their experience at the beginning, mid-point and end of the module. Data were thematically analysed. At the beginning, students were positive about the challenge of working in groups, but concerned about the amount of work required and their peers work ethic. At the midpoint students reported, their knowledge had deepened. At the end of the module, students felt their presentation skills and confidence had improved. However, they felt the presentations required a lot of work for a small weighting. The students’ perceptions of peer feedback fluctuated. At the beginning, students were positive about the potential for using peer feedback for improvement in their next presentation. At the midpoint and end of the module, the vast majority said they had used peer feedback to address identified weaknesses in their next presentation. A minority suggested peer feedback was superficial and not useable. Most students reflected that the assessment had deepened their approach to learning and their use of feedback in similar assessments in other modules. A few students reported that the feedback was not transferable to other assessments. Overall, it appears that many students welcomed the incentive to work throughout the module on multiple, low-stakes presentations, enacted the peer feedback and perceived that their learning had improved. The students’ grade outcomes support these contentions. After presentation one the average grade was 62.6 % (±8.26), at the mid-point of the module the average grade was 70.1% (±8.69) and on the final presentation the average grade was 75.1% (±9.8). These results are an indication that despite the relatively low weighting, an integrated feedback and assessment regime helps students to enact feedback, increases their learning and improves performance

Explaining alternative termination modes of international joint ventures

Purpose The authors combine options logic with transaction cost economics to explain why firms maintain, divest or buy out their international joint ventures (IJVs). It is suggested that a decline in environmental risk and higher partner-related risk makes a firm more likely to acquire an IJV but less likely to divest an IJV. The study also investigates how IJV age moderates the effects of a decline in environmental risk and higher partner-related risk. Design/methodology/approach The study employs competing risks analyses to examine the drivers of different termination outcomes using a dataset consisting of 459 IJVs in the People's Republic of China, of which 110 were either acquired or divested by their foreign parent. Findings The study finds that changes in environmental risk and partner-related risk affect how firms terminate their IJVs in the People's Republic of China. Specifically, the authors find that the effect of exogenous and endogenous risk are more pronounced for the acquisition of IJVs than for the divestment of IJVs. Research limitations/implications The study contributes to international marketing research by complementing options logic with transaction cost economics to provide a theoretical explanation of the different ways in which IJVs in the People's Republic of China are terminated. Practical implications IJVs continue to be an important yet often unstable method to serve international markets. Our findings increase managers' awareness of the effect that two important sources of risk may have on the termination of IJVs in the People's Republic of China. Originality/value The study provides novel insights into the effect that changes in exogenous and endogenous risk have on a firm's choice of termination mode drawing on novel data on the different ways in which foreign firms have terminated their IJVs in the Peoples' Republic of China

Comparative Study Analysis 2022: Post Covid-19 SME Internationalisation Study

Executive Summary The main aim of this study is to provide a comparative analysis of six regional studies on the internationalisation of SMEs in the post-Covid 19 period from the first stage of the SME Internationalisation Exchange (SIE) Interreg project. This study builds on the findings produced by regional studies from Kent County in the UK, Cantabria in Spain, Lower Saxony in Germany, Nouvelle-Aquitaine in France, Ústí Region in Czech Republic and Molise in Italy. It focuses on identifying the key facilitators of SME internationalisation barriers to SME internationalisation, insights into how Covid-19 has affected firm turnover and internationalisation, support available for SME internationalisation, best practice and gaps in supporting SME internationalisation and recommendations for better support for SME internationalisation within and across the partner regions. Despite the differences in the methodological approaches from the different partners a number of findings have been put forward. Facilitators of SME internationalisation A common trend identified as a facilitator for exports across the six regions appears to be the role of new technologies and in particular digitalisation. The ability to innovate has been identified as a key facilitator. Access to specialised support and access to financial subsidies have also been identified as important facilitators. Barriers to SME Internationalisation Both Covid-19-related and general barriers exist. Bureaucracy and bureaucratic burden appears to be a key concern across several regions. Also logistical and supply chain issues, decline in purchasing/buying demand and lack of digital skills have been noted across the six studies. The Impact of Covid-19 on SME Exports Despite the fact that Covid-w19 has generally led to a decline of exports across the six regions, firms show resilience in the face of Covid-19 across the six regions. Across the six regions some industries were more resilient than others, and some even thrived during Covid-19. Export intensive firms have been more resilient during Covid-19, as they depended on the export market for survival and they were experienced in tackling changes and uncertainty. Support available for SME internationalisation All studies identified a complex and bureaucratic environment of support mechanisms. Significant overlaps exist between national and local/regional support mechanisms but also lack of awareness and therefore lack of engagement from SMEs. A number of best practices have been identified throughout the regions that facilitate better engagement, better information dissemination and a more focused or tailored approach to the needs of individual SMEs. Best practice and gaps in supporting SME internationalisation All studies identified areas of best practice in terms of the support available to either encourage domestic firms to internationalise or those exporting already to boost their internationalisation efforts. Best practices noted across the six regions were a targeted and tailored SME support, digitalisation technology-driven productivity increase and growth, innovative funding mechanisms and effective collaboration and networking of national and regional bodies providing advice and support with exporting. Recommendations for better support for SME internationalisation Several recommendations have been put forward in this report, namely: increasing the awareness of the support available; reducing bureaucracy associated with exporting; creating industry clusters, i.e. networks that also include related and supporting industries, investors and universities; identifying potential markets and suppliers that are geographically closer to the firms’ domestic market; and finally tailoring support depending on the stage of internationalisation of a firm (i.e. new to exporting, already exporting, returning to exporting, etc.), their export intensity (i.e. the extent to which exports contribute to their turnover), their innovative capabilities (i.e. whether they are innovative or not) and the industry in which they operate

Abnormal Motor Activity and Thermoregulation in a Schizophrenia Rat Model for Translational Science

Schizophrenia is accompanied by altered motor activity and abnormal thermoregulation; therefore, the presence of these symptoms can enhance the face validity of a schizophrenia animal model. The goal was to characterize these parameters in freely moving condition of a new substrain of rats showing several schizophrenia-related alterations.Male Wistar rats were used: the new substrain housed individually (for four weeks) and treated subchronically with ketamine, and naive animals without any manipulations. Adult animals were implanted with E-Mitter transponders intraabdominally to record body temperature and locomotor activity continuously. The circadian rhythm of these parameters and the acute effects of changes in light conditions were analyzed under undisturbed circumstances, and the effects of different interventions (handling, bed changing or intraperitoneal vehicle injection) were also determined.Decreased motor activity with fragmented pattern was observed in the new substrain. However, these animals had higher body temperature during the active phase, and they showed wider range of its alterations, too. The changes in light conditions and different interventions produced blunted hyperactivity and altered body temperature responses in the new substrain. Poincaré plot analysis of body temperature revealed enhanced short- and long-term variabilities during the active phase compared to the inactive phase in both groups. Furthermore, the new substrain showed increased short- and long-term variabilities with lower degree of asymmetry suggesting autonomic dysregulation.In summary, the new substrain with schizophrenia-related phenomena showed disturbed motor activity and thermoregulation suggesting that these objectively determined parameters can be biomarkers in translational research

Mapping genomic loci implicates genes and synaptic biology in schizophrenia

Schizophrenia has a heritability of 60-80%1, much of which is attributable to common risk alleles. Here, in a two-stage genome-wide association study of up to 76,755 individuals with schizophrenia and 243,649 control individuals, we report common variant associations at 287 distinct genomic loci. Associations were concentrated in genes that are expressed in excitatory and inhibitory neurons of the central nervous system, but not in other tissues or cell types. Using fine-mapping and functional genomic data, we identify 120 genes (106 protein-coding) that are likely to underpin associations at some of these loci, including 16 genes with credible causal non-synonymous or untranslated region variation. We also implicate fundamental processes related to neuronal function, including synaptic organization, differentiation and transmission. Fine-mapped candidates were enriched for genes associated with rare disruptive coding variants in people with schizophrenia, including the glutamate receptor subunit GRIN2A and transcription factor SP4, and were also enriched for genes implicated by such variants in neurodevelopmental disorders. We identify biological processes relevant to schizophrenia pathophysiology; show convergence of common and rare variant associations in schizophrenia and neurodevelopmental disorders; and provide a resource of prioritized genes and variants to advance mechanistic studies

Somewhere in-between : narratives of place, identity and translocal work

This article discusses the de/construction of liminal identities in relation to translocal patterns of work. Through a phenomenological analysis of three autobiographical narratives, it informs management and organization studies, discussing liminality and translocality as embedded and embodied phenomena experienced in relational, spatio-temporal, and inter-corporeal levels. In particular, the article proposes that a post-dichotomous conceptualization of place and non-place, self and other, and fixity and mobility unveils the complexities of studying identity, liminality, and translocality as interrelated phenomena. Liminal identities are explored as socio-spatial, temporary crystallizations of translocal bodily experiences, disrupted by differentially embodying displacements and emplacements across space–time. Finally, we suggest that translocal socio-spatial scales are inter-corporeal performances that challenge both material and immaterial boundaries. The article concludes with the contributions of this work to identity, liminality, and translocality studies and a discussion of future research directions

Explaining the effect of rapid internationalization on horizontal foreign divestment in the retail sector. An extended penrosean perspective

Building on and extending Penrosean logic we argue that rapid international expansion by firms might lead to a breach of Penrosean constraints on efficient expansion and to subsequent divestment of international operations to bring firm scope back into Penrosean constraints. We further predict that intra-regional concentration and international experience moderate the above effect because they influence firms ability to avoid a breach of Penrosean constraints and/or weaken the consequences of such a breach. Using data on the international expansion and divestment of large retail MNEs over the period 2003-2012 we find empirical support for the proposed extended Penrose effect in explaining international divestment as well as for the moderating effects of intra-regional concentration and international experience. Our study contributes to the development of Penrosean logic and to our understanding of the factors that drive firms to divest overseas operations

Mapping genomic loci prioritises genes and implicates synaptic biology in schizophrenia

Schizophrenia has a heritability of 60–80%1, much of which is attributable to common risk alleles. Here, in a two-stage genome-wide association study of up to 76,755 individuals with schizophrenia and 243,649 control individuals, we report common variant associations at 287 distinct genomic loci. Associations were concentrated in genes that are expressed in excitatory and inhibitory neurons of the central nervous system, but not in other tissues or cell types. Using fine-mapping and functional genomic data, we identify 120 genes (106 protein-coding) that are likely to underpin associations at some of these loci, including 16 genes with credible causal non-synonymous or untranslated region variation. We also implicate fundamental processes related to neuronal function, including synaptic organization, differentiation and transmission. Fine-mapped candidates were enriched for genes associated with rare disruptive coding variants in people with schizophrenia, including the glutamate receptor subunit GRIN2A and transcription factor SP4, and were also enriched for genes implicated by such variants in neurodevelopmental disorders. We identify biological processes relevant to schizophrenia pathophysiology; show convergence of common and rare variant associations in schizophrenia and neurodevelopmental disorders; and provide a resource of prioritized genes and variants to advance mechanistic studies