Shrabani Saha, Anindya Sen, Christine Smith-Han and Dennis Wesselbaum
This paper aims to examine the impact of the Brexit referendum on the risk structure of financial asset prices. Co-movements are analysed using daily price returns of major stock…
Abstract
Purpose
This paper aims to examine the impact of the Brexit referendum on the risk structure of financial asset prices. Co-movements are analysed using daily price returns of major stock and bond indices as well as commodities and exchange rates from June 2014 to June 2018. The authors used a multivariate GARCH model to study the dynamics of the conditional correlation matrix of asset returns. It was found that the conditional variances and correlations of assets spike on and after the Brexit referendum and then quickly revert to normal levels, suggesting that the effect of the referendum was transient rather than structural. The findings are of interest to investors as co-movements of financial assets can significantly impact financial portfolios and hedging strategies.
Design/methodology/approach
The authors used a multivariate GARCH model to study the dynamics of the conditional correlation matrix of asset returns.
Findings
It was found that the conditional variances and correlations of assets spike on and after the Brexit referendum and then quickly revert to normal levels, suggesting that the effect of the referendum was transient rather than structural.
Research limitations/implications
The findings are of interest to investors as co-movements of financial assets can significantly impact financial portfolios and hedging strategies.
Originality/value
To the best of the authors’ knowledge, research studying the underlying asset co-movements around Brexit does not exist.
Details
Keywords
Rosalind Heather Whiting, Paul Hansen and Anindya Sen
The purpose of this paper is to develop a rating and scoring tool for measuring small and medium enterprises’ (SMEs) reputation, engagement and goodwill (REG), including internet…
Abstract
Purpose
The purpose of this paper is to develop a rating and scoring tool for measuring small and medium enterprises’ (SMEs) reputation, engagement and goodwill (REG), including internet presence and following on social media, by an exploratory study undertaken in New Zealand.
Design/methodology/approach
A discrete choice experiment (DCE) applying the PAPRIKA method via an online survey was conducted to determine weights representing the relative importance of six indicators related to SMEs’ REG. Usable responses were received from 159 people involved with SMEs. Cluster analysis to identify participants with similar patterns of weights was performed.
Findings
The six indicators, in decreasing order of importance (mean weights in parentheses), are: “captured” customer opinions about the business (0.28); contact with customer database (0.19); website traffic (0.16); Google Search ranking (0.15); size of customer database, (0.11); and following on social media (0.11). These indicators and weights can be used to rate and score individual SMEs. The cluster analysis indicates that participants’ age has some influence on their weights.
Research limitations/implications
Only 159 usable responses for the DCE.
Practical implications
The indicators and their weights provide a practical and inexpensive tool for measuring SMEs’ REG.
Originality/value
This is the first study to use a DCE to determine weights representing the relative importance of indicators included in a tool for measuring SMEs’ REG. The tool is innovative because it includes readily available indicators of firms’ internet presence and following on social media.
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Elisa Mohanty and Anindya Jayanta Mishra
The widespread use of information and communication technologies (ICTs) has had a significant effect on various groups and communities of people including micro, small and medium…
Abstract
Purpose
The widespread use of information and communication technologies (ICTs) has had a significant effect on various groups and communities of people including micro, small and medium enterprises (MSMEs) and their owners/managers. The current study aims to analyze recent literature regarding adoption of ICTs by MSMEs. Further, it tries to locate gender within this broader context of diffusion of ICTs among MSMEs.
Design/methodology/approach
Using the thematic analysis approach, the research articles pertaining to six leading journals on ICTs, gender and entrepreneurship published during the time period from 2011 to 2019 are reviewed.
Findings
The literature selected for the study has been discussed under two primary categories, viz. “adoption of information and communication technologies for development (ICT4D) for business purposes” and “insights on gender in ICT4D use by MSMEs.”
Research limitations/implications
The context-dependent nature of ICT use can enable future entrepreneurs to assess the scope of specific ICTs in given areas of operation. The gendered nature of ICTs helps to evaluate as well as question the empowerment potential of ICTs. The study emphasizes the need to account for historical specificities and transnational linkages in understanding access, adoption and use of ICT4D by women MSME entrepreneurs.
Originality/value
The study bridges together literature on ICT4D use by MSMEs and the role of gender in ICT-mediated entrepreneurial environments. While unraveling the interplay of power dynamics in such environments, the scope for future research in terms of tapping into the content of information exchanges and exploring the implications of “dark side of internet” for women MSME entrepreneurs is also indicated.
China has emerged as an undisputed leader of global business and as a preferred hub for global value chains. However, recent threats of the trade war, the allegation of violation…
Abstract
Purpose
China has emerged as an undisputed leader of global business and as a preferred hub for global value chains. However, recent threats of the trade war, the allegation of violation of intellectual property rights and more recently the COVID-19 pandemic seemed to have dampened China’s attractiveness. Multinational corporations may be contemplating diversifying their dependence on China – a strategy known as “China-Plus-One”. What could be possible destinations in Asia for such a diversification strategy?
Design/methodology/approach
Towards understanding the “China-Plus-One” phenomenon, the authors use a methodology of arriving at an aggregate ranking of the major economies of emerging Asia. This is built on a few standard indices such as World Bank's Logistic Performance Index; World Bank’s Ease of Doing Business Indicator; World Economic Forum’s Global Competitiveness Index; Economic Complexity Index of the Harvard University; Economist Magazine’s Country Rating of Financial Strength; and Corruption Perception Index compiled by the Transparency International. Accordingly, the authors rank seven countries (namely, Thailand, Malaysia, India, Vietnam, Indonesia, the Philippines and Bangladesh) next to China as possible destinations for selecting the “Plus one” country.
Findings
In the aggregate ranking, China ranks first followed by Thailand, Malaysia, Philippines, India, Indonesia, Vietnam and then Bangladesh. This sequence gives some pointers on the possible shifts from China as potential hubs of global value chains. The authors observe the following: first, it is challenging to move away from China in the short run; second, corporations could pursue a “China-plus-One” strategy, whereby they may move marginally from China and relocate part of their supply chain elsewhere; third, in looking for alternative locations, corporations may look for the following countries in emerging Asia, namely, Thailand, Malaysia, India, Vietnam, Indonesia, Philippines and Bangladesh.
Originality/value
The aggregate ranking method applied in this paper is one of the first applications in the context of ranking developing Asian economies based on economic, logistics, supply chain, financial and corruption metrics. It is one of the first conceptual works in the domain of identifying possible diversification options for the “China-Plus-One” strategy that can be extended to include many context-specific rankings.