Internationalisation of SMEs and firm performance: evidences from Bangladesh

One of the key objectives of this paper is to identify the impacts of internationalisation of SMEs on firm performance. Although there have been a number of research that examined the relationship between SME internationalisation and firm performance, research from the context of smaller developing economies are really scant. This is against the fact that SMEs are main vehicle for growth in those economies and extensive research on various dimensions of SMEs including its impact on firm performance may help to better understand the operational aspects of SMEs in those economies. Using primary data and structural equation modelling to analyse those data, the paper has found that internationalisation of SMEs has significant impact on both financial and non-financial performance of SMEs in Bangladesh. More specifically, the paper has found that internationalisation impacts in two dimensions (Financial impacts and non-financial impacts) with 8 indicators (higher sales, higher profit, assets maximization, market expansion, competitive advantage, better reputation, better customer service and added knowledge)

Recent advances in explaining hedge fund returns:implicit factors and exposures

We survey articles covering how hedge fund returns are explained, using largely non-linear multifactor models that examine the non-linear pay-offs and exposures of hedge funds. We provide an integrated view of the implicit factor and statistical factor models that are largely able to explain the hedge fund return-generating process. We present their evolution through time by discussing pioneering studies that made a significant contribution to knowledge, and also recent innovative studies that examine hedge fund exposures using advanced econometric methods. This is the first review that analyzes very recent studies that explain a large part of hedge fund variation. We conclude by presenting some gaps for future research

Hedge fund performance attribution under various market conditions

We investigate US hedge funds' performance. Our proposed model contains exogenous and endogenous break points, based on business cycles and on a regime switching process conditional on different states of the market. During difficult market conditions most hedge fund strategies do not provide significant alphas. At such times hedge funds reduce both the number of their exposures to different asset classes and their portfolio allocations, while some strategies even reverse their exposures. Directional strategies share more common exposures under all market conditions compared to non-directional strategies. Factors related to commodity asset classes are more common during these difficult conditions whereas factors related to equity asset classes are most common during good market conditions. Falling stock markets are harsher than recessions for hedge funds

Hedge fund index-engineering methodologies:a comparison and demonstration

We examine hedge fund (HF) index construction methodologies, by describing and analyzing case studies from two well-known database vendors and evaluating them using numerical examples on the same dataset. Despite the fact that they follow a similar due diligence process, there are great differences in the index engineering practices arising from different quantitative techniques, even for indices in the same HF category. However, those quantitative techniques provide similar results. The differences are rather due to the use of different HF universes and different inclusion criteria. This paper is the first to use actual numerical case studies to illustrate and compare how HF index engineering works. Having read it the reader will have a good understanding of how HF indices are formed

Drivers for internationalisation of SMEs: evidence from an emerging country

Purpose –Internationalisation is considered as a key strategy to grow and survive over longer period of time for the Small and Medium Enterprises (SMEs). Although internationalisation is a popular strategy both for large and small firms, the decision to enter in a foreign market is not a straight forward story particularly for the small firms. Considering the resource limitation, SMEs need to analyse the key drivers of internationalisation very carefully. The purpose of this paper is to identify these drivers for the SMEs in a developing country. Design/methodology/approach – By using questionnaire survey, this study collected primary data from 212 Bangladeshi SMEs. From sampling point of view, this study used cluster sampling. A mixed method data analysis technique is used to analyse the firms both from micro and macro levels. Based on the survey data, this study has developed and validated partial least square based structural model (PLS-SEM) to assess the key drivers to enter in foreign markets. Findings – This study contributes to extend our knowledge in relation to the drivers of internationalisation in the context of developing countries’ SMEs with particular attention to Bangladesh. To identify the major drivers, this study develops and validates a hierarchical reflective model through PLS based SEM. From the structural analysis, this study proposes 3 major types of drivers related to the internationalisation of SMEs in the context of Bangladesh- Firm specific drivers, industry specific drivers and country specific drivers. While all of these three types of drivers (Firm specific drivers, industry specific drivers and country specific drivers) are significantly related to the overall drivers of internationalisation, firm specific drivers seems most influentia

CEO power, bank risk-taking and national culture: International evidence

Using unique hand-collected data for 336 large banks across 48 countries, together with values of national culture, our empirical analysis uncovers three new robust findings. First, variations of bank risk-taking across national culture and CEO power are more pronounced when cultural values and CEO power indicators are high. Second, while the individualism dimension of national culture has a moderating influence, the uncertainty avoidance dimension has a reinforcing effect, on the relationship between CEO power and bank risk-taking. In more detail, the results for the average marginal effect of CEO power on risk for different cultural values show that CEO power has a negative (positive) or insignificant impact on bank risk-taking when the value of individualism (uncertainty avoidance) is low; however, the impact becomes positive (negative) and statistically significant as the value of individualism (uncertainty avoidance) increases. Third, intra-cultural diversity matters: ‘tight’ cultures (e.g., strong social norms) are more pronounced than ‘loose’ cultures (e.g., heterogeneous values) in influencing bank risk

Investment-cash flow sensitivity: Evidence from investment in identifiable intangible and tangible assets activities

Open access article The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link. open access articleIn this study, we examine whether investments in fixed (identifiable) intangible assets and tangible assets are sensitive to cash flow and the extent to which this sensitivity differs for firms with different levels of financial constraints. Using both UK private and public firms’ data, our overall analysis shows strong positive (negative) effects of cash flow on intangible assets (tangible assets) investments. When we split the data on the basis of listing status, we observe that cash flow is positively (negatively) and significantly related to intangible assets (tangible assets) investments for private firms but not so for public firms. In addition, we further observe that both public and private firms' investments follow a similar pattern when we split our data based on the availability of internal funds. Moreover, we also find that the sensitivity of investment (identifiable intangible assets) to cash flow is higher for young and large private firms but lower for small and old ones. Our results remain similar to other econometric specifications which account for possible endogeneity issues

Investment‐cash flow sensitivity: Evidence from investment in identifiable intangible and tangible assets activities

In this study, we examine whether investments in fixed (identifiable) intangible assets and tangible assets are sensitive to cash flow and the extent to which this sensitivity differs for firms with different levels of financial constraints. Using both UK private and public firms' data, our overall analysis shows strong positive (negative) effects of cash flow on intangible assets (tangible assets) investments. When we split the data on the basis of listing status, we observe that cash flow is positively (negatively) and significantly related to intangible assets (tangible assets) investments for private firms but not so for public firms. In addition, we further observe that both public and private firms' investments follow a similar pattern when we split our data based on the availability of internal funds. Moreover, we also find that the sensitivity of investment (identifiable intangible assets) to cash flow is higher for young and large private firms but lower for small and old ones. Our results remain similar to other econometric specifications, which account for possible endogeneity issues

Barriers to Enter into Foreign Markets: Evidence from SMEs in an Emerging Economy

Design/methodology/approach – This study has collected primary data through questionnaires from 212 Bangladeshi SMEs. A mixed method data analysis technique is used to analyse firms from micro and macro level. Following the running example based case study approach, this paper has developed and validated a partial least square based structural model (PLS-SEM) to assess the key barriers to entering foreign markets. Findings – In entering into foreign markets, and emerging economies, this study has identified key socio-economic barriers faced by Bangladeshi SMEs. Additionally, the study has successfully framed the obstacles as a second order hierarchical model. Originality/value – Consider that foreign market entry is perhaps more affected by social barriers as explained by existing theories, including the Uppsala model. Using institutional interpretation, this study reveals that in developing countries, SME international market expansion is more sensitive to the existence of economic barriers

Market Sentiment and Firm Investment Decision-Making

While research on factors driving corporate investment decisions has blossomed, knowledge related to the Chief Executive Officer's (CEO's) market sentiment on investment decision outcomes is lacking. In this study, we extend the existing corporate finance literature by examining the underexplored issue of how CEOs' market sentiment drives firms' investment decisions. Capitalising on a large sample of US firms for the period 2004–2014, we uncovered some crucial observations. First, we found empirical support for our theoretical contention that market sentiment drives corporate investment decisions. Second, we established that, while financial flexibility induces managers to overinvest, the expectation of future profitability leads firms to underinvest during high sentiment periods. In addition, we uncovered that the 2007/08 financial crisis significantly impacted firm behaviour and realigned managerial decision-making. Thus, the sentiment-investment relationship is more pronounced during the crisis and the post-crisis periods. Our results are robust after accounting for the possibility of endogeneity and using alternative measures of both CEOs' market sentiment and firm investment