Department of International Economics and Management (INT) Titler
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An exploration of micro- and macro-level determinants of board effectivenessMinichilli, Alessa Andro; Zattoni, Alessandro; Nielsen, Sabina; Huse, Morten (, 2012)[Flere oplysninger][Færre oplysninger]
Resume: This paper addresses recent calls to narrow the micro–macro gap in management research (Bamberger, 2008), by incorporating a macro-level context variable (country) in exploring micro-level determinants of board effectiveness. Following the integrated model proposed by Forbes and Milliken (1999), we identify three board processes as micro-level determinants of board effectiveness. Specifically, we focus on effort norms, cognitive conflicts and the use of knowledge and skills as determinants of board control and advisory task performance. Further, we consider how two different institutional settings influence board tasks, and how the context moderates the relationship between processes and tasks. Our hypotheses are tested on a survey-based dataset of 535 medium-sized and large industrial firms in Italy and Norway, which are considered to substantially differ along legal and cultural dimensions. The findings show that: (i) Board processes have a larger potential than demographic variables to explain board task performance; (ii) board task performance differs significantly between boards operating in different contexts; and (iii) national context moderates the relationships between board processes and board task performance. Copyright # 2010 John Wiley & Sons, Ltd. URI: http://hdl.handle.net/10398/8773 Filer i denne post: 1
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Hvass, Kristian (Frederiksberg, 2012)[Flere oplysninger][Færre oplysninger]
Resume: Research in business model innovation has identified its significance in creating a sustainable competitive advantage for a firm, yet there are few empirical studies identifying which combination of business model activities lead to success and therefore deserve innovative attention. This study analyzes the business models of North America low-cost carriers from 2001 to 2010 using a Boolean minimization algorithm to identify which combinations of business model activities lead to operational profitability. The research aim is threefold: complement airline literature in the realm of business model innovation, introduce Boolean minimization methods to the field, and propose alternative business model activities to North American carriers striving for positive operating results. URI: http://hdl.handle.net/10398/8403 Filer i denne post: 1
Kristian_Hvass_WP_2012.pdf (69.29Kb) -
An Empirical Reconciliation of Two Critical ConceptsOhnemus, Lars (Frederiksberg, 2010)[Flere oplysninger][Færre oplysninger]
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Pedersen, Torben; Thomsen, Steen (København, 1999)[Flere oplysninger][Færre oplysninger]
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a brief story of India's software industry and policy implicationsPatibandla, Murali; Kapur, Deepak; Petersen, Bent (København, 1999)[Flere oplysninger][Færre oplysninger]
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Pedersen, Torben; Thomsen, Steen (København, 2001)[Flere oplysninger][Færre oplysninger]
Resume: The causal relationship between insider ownership and market valuation is tested by simultaneous estimation of the causes and effect of insider ownership among the largest continental European companies. Controlling for nation and industry effects insider ownership (measured by the fraction of "closely held" shares) is found to have a positive effect on market valuation (market-to-book values). And market valuation is found to have a positive feedback effect on the level of insider ownership. The findings provide empirical support for a theoretical model proposed by La Porta et al (1999). But the results are also found to be sensitive to owner identity: while a higher level of financial and corporate insider ownership is found to increase market valuation, family ownership has no significant effect, and a higher level of government ownership is found to reduce market valuation. URI: http://hdl.handle.net/10398/6535 Filer i denne post: 1
linkwp01-13.pdf (92.70Kb) -
Gammeltoft, Peter; Tarmidi, Lepi T. (Frederiksberg, 2011)[Flere oplysninger][Færre oplysninger]
Resume: China‟s increasing integration with the world economy is met with much anticipation and much anxiety in the Southeast Asian region. In Indonesia, there is intense interest in Chinese foreign direct investment (FDI), not only among academics but also among policy makers, industrialists and the general public. So much more surprising is the fact that no systematic study of Chinese FDI in Indonesia has been undertaken to date. The current paper contributes to filling this gap and analyses the current composition as well as the historical evolution of Chinese FDI in Indonesia. Relying on a survey conducted in 2008 among Chinese invested enterprises supplemented with available official statistics and secondary data, the study finds that Chinese FDI in Indonesia is performed by mixed entities: some are owned by central government, some by regional government and some are private firms. In the case of joint ventures, their local partners are mostly local Chinese, except in the infrastructure, mining and energy sector where their local partners are Indonesian state-owned enterprises. Where the local developmental effects are concerned, a picture emerges where Chinese investments, at this early period of their internationalization, are likely to give rise to a more modest extent of positive spillovers than investor from more economically advanced countries. This stems from the sectors, investment motives and operational strategies of Chinese investors, the heritage of ethnic tension and segmentation of the economic system along ethnic lines in Indonesia, and the likelihood that Chinese MNCs as latecomers are more vertically integrated than their developed-country counterparts. Finally, considering the evolution of Chinese investments in Indonesia over time, investments have evolved from being individual and isolated projects to acquiring more systemic properties. Chinese companies have acquired a broader sectoral presence in Indonesia and Chinese invested companies in e.g. extractive or manufacturing activities can increasingly rely on complementary Chinese investments in logistics, travel, finance etc. URI: http://hdl.handle.net/10398/8397 Filer i denne post: 1
Peter_Gammeltoft_2011.pdf (575.2Kb) -
Evidence from EstoniaJones, Derek C; Kalmi, Panu; Mygind, Niels (København, 2003)[Flere oplysninger][Færre oplysninger]
Resume: In this paper we use rich panel data for a representative sample of Estonian enterprises to analyse diverse issues related to the determinants of ownership structures and ownership changes after privatisation. A key focus is to determine whether ownership changes are related to economic efficiency. While employee owned firms are found to be much more prone than other firms to switch ownership categories, often "employee owned" firms remain "insider-owned" as ownership passes from current employees to managers and former employees. Logit analyses of the determinants of ownership structures and ownership changes provides mixed support for several hypotheses. As predicted: (i) wealth and resource constraints play a crucial role in the determination of ownership, with foreigners buying firms with the highest equity levels and insiders buying firms with the lowest equity valuations; (ii) risk aversion explains subsequent ownership changes, especially away from employee ownership; (iii) allocation of ownership depends on the pre-privatisation origin and location of the firm, and these factors also influence subsequent ownership changes. Finally we compare our findings with those achieved by using more conventional approaches to analyze efficiency that use very similar data. Reassuringly the evidence presented in this paper is consistent with the view that efficiency considerations drive ownership changes (while earlier analysis for Estonia and for many other transition economies has identified the impact of ownership on economic performance.) However, the findings in this paper also establish that there are important influences besides economic efficiency that affect enterprise ownership and ownership changes. URI: http://hdl.handle.net/10398/6610 Filer i denne post: 1
wp560.pdf (577.5Kb) -
a dynamic extension of the existing typology of acquisition motivesGammelgård, Jens (København, 1999)[Flere oplysninger][Færre oplysninger]
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Understanding How Resource-Poor Firms Survive and ThriveLi, Xin (Frederiksberg, 2016)[Flere oplysninger][Færre oplysninger]
Resume: In this paper, I first critique the composition-based view of Yadong Luo and John Child for understanding how resource-poor firms survive and thrive. To remedy the deficiencies in their perspective, I then propose a dynamic theory of compositional advantage and strategy. Here, the compositional advantage is redefined as the attractiveness of the composition of the producer’s offering in terms of scope and perceived value/price ratio. I identify five ways or basic compositional strategies to improve the value/price ratio. A firm may have an overall compositional strategy that is composed of some or all of the five basic compositional strategies. I argue there are three indispensable key success factors for a composition-based competition, i.e., aspiration (ambition-position asymmetry), attitude (being ALERT), and action (turning asymmetry into advantage). I also discuss the particular relevance of the present theory to understanding Chinese firms. I conclude with managerial implications and suggestions for future research. URI: http://hdl.handle.net/10398/9321 Filer i denne post: 1
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Nebenzahl, Israel D.; Jaffe, Eugene D.; Kavak, Bahtisen (København, 2000)[Flere oplysninger][Færre oplysninger]
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different learning engagements of entrant firmsPetersen, Bent; Pedersen, Torben (København, 2001)[Flere oplysninger][Færre oplysninger]
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Different Learning PathsPetersen, Bent; Pedersen, Torben (København, 2001)[Flere oplysninger][Færre oplysninger]
Resume: Much has been written about how international firms create and sustain firm-specific advantages that offset their liability of foreignness. Less attention has been devoted the question of how international firms can reduce their liability of foreignness. Looking for different paths of learning our study explores the dynamics of firms’ liability of foreignness. A sample of 494 international firms from Sweden, Denmark and New Zealand is clustered along three structural dimensions of liability of foreignness: (1) perceived lack of knowledge about the foreign market, (2) the longevity of operations in the foreign market, and (3) international experience of the entrant firm. The four clusters that precipitate represent different learning path positions. One group of firms can be identified as pre-entry learners, another group as post-entry learners. A minor group of firms is characterized by perceiving a persistent lack of knowledge about the foreign market they are operating in. One might speculate if these firms engage in any learning about the foreign business environment. Furthermore, the data suggest that firms with extensive international experience are more capable in familiarizing with the foreign business environment than are firms with little international experience. URI: http://hdl.handle.net/10398/6893 Filer i denne post: 1
linkwp01-11.pdf (146.1Kb) -
Theory and Evidence from the BalticsJones, Derek C.; Mygind, Niels (København, 2004)[Flere oplysninger][Færre oplysninger]
Resume: We begin by identifying a typical governance life-cycle, defined as changes in ownership structure, and including both the identity of the major owner and ownership concentration. The cycle is marked by key events and phases including start-up, initial growth, mature growth, and possibly a crisis and restructuring stage or exit stage. The governance cycle for transitional countries reflects some specific characteristics –e.g. often privatization produces specific initial ownership structures, with an unusually high proportion of insider, especially, employee ownership. Subsequently pres-sures for restructuring produce strong impulses for ownership changes. There is limited possibility for external finance because of the embryonic development of the banking system and the capital markets during early transition. The governance cycle is also influenced by specific features of the institutional, cultural and economic environment in a country. The varying importance of these fac-tors is expected to produce differences in key features of ownership cycles such as the speed at which particular ownership changes occur. To provide simple hypothesis tests, we use new and rich enterprise panel data sets for the three Bal-tic countries. The data enable various measures of ownership to be constructed (including the iden-tity of major owners and ownership concentration). The empirical analysis covers the ownership cycle with emphasis on initial ownership and subsequent changes. Our key method is to assemble a series of transition matrices showing both starting and final ownership configurations for sample enterprises and to simultaneously provide information on changes in concentration for the largest single owner. For Estonia this is supplemented with an analysis of the frequencies of different own-ership-cycles including intermediary stages of ownership. In spite of important differences in insti-tutional development, especially concerning the privatization process, we find that governance cy-cles are broadly similar in all countries. Employee ownership is rapidly fading and mainly being succeeded by managerial ownership. There are changes back and forth between manager and do-mestic external ownership, while foreign ownership is quite stable. Ownership concentration is mostly increasing after privatization, which included diversification both to employees and external owners. Since ownership diversification did not sit well with the slow development of the institu-tional framework, as expected we see a subsequent concentration of ownership on both managers, external domestic and foreign owners. However, variation in institutions, there are also important differences across countries. The adjustment of ownership structures is faster in Estonia and this can be explained by the relatively fast pace of institutional change and evolution of important gov-ernance institutions, including tough bankruptcy legislation and advances in the financial system. JEL-codes: G3, J5, P2, P3 Keywords: corporate governance, life-cycle, privatization, ownership change, transition econo-mies, Estonia, Latvia, Lithuania . URI: http://hdl.handle.net/10398/6611 Filer i denne post: 1
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A Dynamic AnalysisHobdari, Bersant; Jones, Derek; Mygind, Niels (København, 2007)[Flere oplysninger][Færre oplysninger]
Resume: New and rich panel data for a large and representative sample of firms are used to estimate the sensitivity of access to capital to differing ownership structures. The investment behaviour of firms is examined in a dynamic setting in the presence of adjustment costs, liquidity constraints and imperfect competition. The empirical work is based on the derivation of Euler equations in the presence of symmetric and quadratic adjustment costs and both debt and equity constraints. Whereas the norm is to use ad hoc approaches to model these constraints, our alternative and more consistent leads to the inclusion of financial variables in investment equation in first differences rather than in levels. Our GMM estimates confirm the importance of financial factors in determining investment rates and suggest that firms owned by insiders, especially non-managerial employees, are more prone to be liquidity constrained than are others. Among the other groups, somewhat surprisingly, only domestic outsider owned firms display sensitivity to both measures of the availability of finance, with manager owned firms being sensitive to the availability of external finance, while state owned firms being sensitive to the availability of internal finance. Corporate Investment, Corporate Governance, Adjustment Costs, Liquidity Constraints, GMM Estimates, Transition Economies. URI: http://hdl.handle.net/10398/6585 Filer i denne post: 1
dynamicinvestmentpaper-2.pdf (381.1Kb) -
The Norwegian maritime sectorWallevik, Kristin (Frederiksberg, 2009)[Flere oplysninger][Færre oplysninger]
Resume: The four papers in this thesis investigate corporate governance in family firms from different angles, with emphasis on industry and industry networks. I divide the industry networks into social and commercial networks, where social networks are measured by interlocking boards and commercial networks by investments in other firms in the same industry. Focus is on the governance structures in family firms, how industry and networks may be determinants of family ownership, and the effect of family ownership and strong industry networks on financial performance in certain industries (such as the maritime industry). Two of the papers are theoretical papers and two are empirical papers. The empirical papers are based on the same hand-collected dataset comprising 167 Norwegian listed companies from 1996-2005. The first paper - “Corporate Governance in Family firms” comprises a survey of the corporate governance literature on family firms, paying attention to the unique issues in the governance of these firms. I discuss different forms of ownership and how different agency contexts and business environments may suit family ownership better than other ownership structures. I also discuss how firms can reap the benefits of family ownership, by using a relational governance model, if there is an atmosphere of positive relationships, trust and shared visions. A relational governance model focuses on the social capital embedded in personal relations between owners, managers and board members. A contractual governance model, however, focuses on finding the optimal incentives in the relations between owners and managers, in addition to having greater focus on the monitoring role of the board. These two models may complement and supplement each other in a governance structure. The question is how these different governance models affect firms’ operations, decision-making, and competitiveness. The second paper - “The Effect of Industry Networks on Family Ownership” deals with possible effects of industry networks on the prevalence of family firms in different industries. I discuss how various networks can be determinants of family ownership, in addition to elements like incentives, monitoring, and altruism, as well as firm, industry and nation specific factors. I also discuss whether family firms can gain more from these industry networks than other firms due to a higher degree of ”thick trust”, strong owner-manager relations and the use of a relational governance structure. This paper proposes that strong social and commercial networks affect the number of family firms in an industry, as a result of the social capital embedded in these relations. Paper three - “Social and Commercial Networks as Determinants of Family Ownership - The Norwegian Shipping Industry” is an empirical paper testing whether industry networks are among the determinants of family ownership in the Norwegian shipping industry. The overall question is why family ownership is more prevalent in some industries, and which elements that influence this ownership structure. I focus on industry effects such as the number of firms in an industry and the social and commercial industry networks between firms. These are potential determinants of family ownership. I find that both industry and various industry networks have a significant and positive effect on family ownership in the shipping industry. The fourth paper - “Family Ownership, Networks and Financial Performance” takes up the question whether family ownership and various networks affect financial performance, measured by Tobin’s q and ROA lagged, or not. Earlier studies come to different conclusions regarding the relationship between family ownership and firm performance, which may be due to differences in the agency context of the studies. I add industry and industry networks as central variables to disentangle some of the contextual factors in this relationship. This paper argues that it is not necessarily the family ownership that affects performance, but how this ownership is used in a strategic manner. Establishing and using networks are seemingly a means of operation in some industries, sometimes with a positive effect on performance. URI: http://hdl.handle.net/10398/7901 Filer i denne post: 1
Kristin_Wallevik.pdf (3.039Mb) -
Comparing networks and formal institutionsSinani, Evis; Thomsen, Steen; Staffsud, Anna; Randoy, Trond; Edling, Christofer (København, 2007)[Flere oplysninger][Færre oplysninger]
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URI: http://hdl.handle.net/10398/6545 Filer i denne post: 1
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Resume: Despite the celebration and promotion of the creative economy, there is still a “dark” side to creativity. Creativity entails experimentation, chaos and failures. A creative space blends the aesthetics with chaos, sleek design with experimentation, and economic development with failed ideas. This case looks at the ambiguous and ambivalent interfaces of history in the historical city of Melaka (also known as Malacca) in Malaysia. History, by its definition, is a documentation of the past. Any historical documentation can be contested and revised. This case will not engage in the debate on revisionist history. Instead, it will show how history and heritage is negotiated and appropriated under present circumstances in the historic city of Melaka. The re‐interpretation and revision of history is part of the everyday creative response to changing circumstances. Such contemporary responses to the past, however unclear and acrimonious, are the essence of a creative place. URI: http://hdl.handle.net/10398/8927 Filer i denne post: 1
Ooi.pdf (1.077Mb) -
Freedom of Expression in a Soft Authoritarian RegimeOoi, Can-Seng (København, 2006)[Flere oplysninger][Færre oplysninger]
URI: http://hdl.handle.net/10398/6580 Filer i denne post: 1
working paper int_can-seng ooi_1.pdf (81.37Kb)