Corporate bond appeared in 1992-1994 in Vietnamese capital markets. However, it is still not popular to both business sectors and academic circles. This paper explores different dimensions of Vietnamese corporate bond market using a unique and perhaps, most complete data set. State not only intervenes in the bond markets with its powerful budget and policies but also competes directly with enterprises. The dominance of state-owned enterprises and large corporations also prevents small and medium enterprises from this debt financing (...) vehicle. Whenever a convertible term is available, bondholders are more willing to accept lower fixed income payoff. But they would not likely stick to it. On the one hand, prospective bondholders could value the holdings of equity when realized favourably ex ante. On the other hand, the applicable coupon rate for such bonds could turn out negative inflation-adjusted payoff when tight monetary policy is exercised and the corresponding equity holding turns out valueless, ex post. Given the weak primary market and virtually non-existent secondary market, the corporate bond market in Vietnam reflects our perception of the relationship-based and rent-seeking behaviour in the financial markets. For the corporate bonds to really work, they critically need a higher level of liquidity to become truly tradeable financial assets. Updated entries in 2010 affirm the findings and conclusions. (shrink)

This paper focuses on flows to emerging capital markets (ECMs) and examines the importance of corporate transparency and public governance in attracting portfolio flows to ECMs. This paper's empirical investigation centers on the hypothesis that ceteris paribus, ECMs with better quality accounting standards and good governance attract higher levels of portfolio equity and bond flows. To assess the incremental impact of each of these factors, a pooled time series, cross‐sectional model was econometrically tested for 17 ECMS over the (...) 1998–2002 time period. Our empirical analysis demonstrates a positive association between public governance, corporate transparency, and portfolio flows after controlling for other macroeconomic factors. The results suggest that good public governance and high accounting quality are important determinants of portfolio flows to ECMs. Finally, the paper establishes that while portfolio equity flows are significantly attracted to ECMs with strong democratic institutions, there is no significant association between portfolio bond flows and the presence of democratic institutions. (shrink)

This article illustrates how the circulation of capital and culture in Asia produces divergent embodied gendered ideals of national belonging through the case of Vietnam’s global sex industry. Introducing the concept of competing technologies of embodiment, I show how sex workers’ surgical and cosmetic bodily projects represent different perceptions of an emerging nation’s divergent trajectories in the global economy. In a high-end niche market that caters to local elite Vietnamese businessmen, sex workers project a new pan-Asian (...) modernity highlighting emergent Asian ideals of beauty in a project of progress that signals the rise of Asia. Women who cater to Western men, in contrast, embody Third World dependency, portraying Vietnam as a poverty-stricken country in need of Western charity. By comparing multiple markets, I illustrate how individual agents in the developing world actively reimagine their nation’s place in the global economy through their embodied practices. (shrink)

In its roughly 25 years of existence, the trial consulting profession has grown dramatically in membership, recognition, and breadth of practice. What began as a small activist group of social scientists volunteering their expertise to assist in the defense of Vietnam War protestors has evolved into a diverse set of professionals from a range of educational and professional backgrounds. In spite of such enormous growth, the work of trial consultants has gone largely unexamined. Trial Consulting takes an in-depth look (...) at the primary activities of trial consultants, including witness preparation, focus groups and mock trials, jury selection, change of venue surveys, and attorney presentation style. It also examines the profession's struggle to define itself, resisting certification and licensure requirements and settling instead for a set of practice standards. The authors draw upon empirical and other scholarly work in the social sciences, recommended "best practices" from trial lawyers, and the written and spoken recommendations and reflections of the trial consultants themselves. Addressing a broad spectrum of topics ranging from handwriting analysis to medical malpractice cases, they also suggest reforms for improving the profession and the efficacy of the trial consultant in the courtroom. The result is a critical analysis of what trial consulting truly adds to, and detracts from, the administration of justice. This book is an indispensable guide for practicing and aspiring trial consultants as well as the judges, attorneys, and psychologists who work with them. Trial Consulting provides a thought-provoking statement on the state of the profession, and students and professionals alike will benefit from the challenges it offers. (shrink)

ABSTRACT:We focus on the core institution of the capital market and the institutional work of professional service firms that provide ratings on corporate issuers, initially in a bid to maintain this institution, which suffered when those involved relied solely on information from the issuers themselves. Through our analysis we identify a new type of decoupling—complicit decoupling. Complicit decoupling evolves over time, beginning with the creation of a new practice, here corporate ratings as a form of policing work, which (...) emerges to help to maintain a core institution. This practice is then adopted, implemented and later becomes decoupled. Exposure does not undermine the legitimacy of the practice because external actors collude in the ‘window dressing’ and, because it has become normalized, only partial repairs are enacted. It is by nature field-level institutional work, benefiting the majority of the field and inherently involves a violation of promise keeping. We conclude with implications for managers and behavioral ethics researchers. (shrink)

ABSTRACT:We focus on the core institution of the capital market and the institutional work of professional service firms that provide ratings on corporate issuers, initially in a bid to maintain this institution, which suffered when those involved relied solely on information from the issuers themselves. Through our analysis we identify a new type of decoupling—complicit decoupling. Complicit decoupling evolves over time, beginning with the creation of a new practice, here corporate ratings as a form of policing work, which (...) emerges to help to maintain a core institution. This practice is then adopted, implemented and later becomes decoupled. Exposure does not undermine the legitimacy of the practice because external actors collude in the ‘window dressing’ and, because it has become normalized, only partial repairs are enacted. It is by nature field-level institutional work, benefiting the majority of the field and inherently involves a violation of promise keeping. We conclude with implications for managers and behavioral ethics researchers. (shrink)

AbstractForeign direct investment (FDI) in offshore financial centers (OFCs) is gaining increased attention in business ethics research. Much of this research tends to focus on OFCs as locations where firms can avoid taxes, considering such behavior as unethical. Yet, there is dearth of studies on capital round-tripping by emerging market firms, which is an integral part of this phenomenon. Such round-tripping involves firms sending capital into OFCs only to invest it back in the home country under (...) the guise of “foreign” investment. Presently there is little discussion of the ethical implications of such round-trip FDI activities. In this paper, we conceptualize round-tripping as institutional arbitrage and look at the determinants and ethical implications of such investments into OFCs. Exploring Russian round-tripping we note that firms tend to invest more funds in OFCs that offer a combination of tax and secrecy, or secrecy and property rights protection arbitrage opportunities. In either case firms exploit the opportunities provided by institutional differences between the OFC and Russia while investing back into Russia. Our results tend to indicate that equating OFC investment to tax avoidance and thus deeming it as unethical behavior is too narrow an explanation in the case of emerging economy round-tripping. This is because such investments are often motivated by the unethical behavior of home country stakeholders and may in fact provide benefits to society. (shrink)

ABSTRACT:We focus on the core institution of the capital market and the institutional work of professional service firms that provide ratings on corporate issuers, initially in a bid to maintain this institution, which suffered when those involved relied solely on information from the issuers themselves. Through our analysis we identify a new type of decoupling—complicit decoupling. Complicit decoupling evolves over time, beginning with the creation of a new practice, here corporate ratings as a form of policing work, which (...) emerges to help to maintain a core institution. This practice is then adopted, implemented and later becomes decoupled. Exposure does not undermine the legitimacy of the practice because external actors collude in the ‘window dressing’ and, because it has become normalized, only partial repairs are enacted. It is by nature field-level institutional work, benefiting the majority of the field and inherently involves a violation of promise keeping. We conclude with implications for managers and behavioral ethics researchers. (shrink)

This paper is the first major and a thorough study on the Merger & Acquisition (M&A) activities in Vietnam’s emerging market economy, covering almost entirely the M&A history after the launch of Doi Moi. The surge in these activities since mid-2000s by no means incidentally coincides with the jump in FDI and FPI inflows into the nation. M&A industry in Vietnam has its socio-cultural traits that could help explain economic happenings, with anomalies and transitional characteristics, far (...) better than even the most complete set of empirical data. Proceeds from the sales of existing assets and firms have mainly flowed into the highly speculative industries of securities, banking, non-bank financials, portfolio investments and real estates. The impact of M&A on Vietnam’s long-term prosperity is thus highly questionable. An observable high degree of volatility in the M&A processes would likely blow out the high ex ante expectations by many speculators, when ex post realizations finally arrive. The effect of the past M&A evolution in Vietnam has been indecisively positive or negative, with significant presence of rent-seeking and likelihood of causing destructive entrepreneurship. From a socio-economic and cultural view, the degree of positive impacts may result in domestic entrepreneurship which will perhaps be the single most important indicator. (shrink)

Starting from sociological perspectives on complexity, we show how the social capital of boards and owners networks affects the implied cost of capital of companies listed on Brazilian stock exchange. We specifically show arguments and evidence that the effect of the relational resources found in the direct, indirect, and heterogeneous board’s ties reduces the cost of capital while relational resources embedded in shareholder networks increase the cost of capital. Our results show that while the increase in (...) the relational resources of the board reduces the implied cost of capital, an increase in these shared resources in the ownership relationships of the firm increases the cost of financial capital. (shrink)

This paper analyzes the interlink among managerial experience, capabilities, and social capital in relation to corporate social responsibility (CSR) activities of multinational enterprises' (MNEs) subsidiaries in an emerging market context. Based on the empirical sample of 104 subsidiaries of 28 Italian MNEs operating in India, we found that CEO managerial capabilities are positively associated with CSR activities. However, interestingly, our findings also show that subsidiary CEO (managerial) experience is negatively associated with CSR activities in emerging markets. (...) Therefore, our study is one of the few that highlights the negative repercussions of experience in the context of CSR activities in emerging markets. Moreover, our findings show that while social capital alleviates the negative influences of CEO experience on CSR activities, it does not enhance the role of CEO managerial capabilities in CSR activities. As such, our study contributes to research on business ethics with a focus on sustainable development in business. (shrink)

In 1997, the World Bank Group1 published in English one of its many country studies, entitled Vietnam: Education Financing. Its goal was to measure 'what changes in educational policies will ensure that students who pass through the system today will acquire the knowledge, skills and attitudes needed for Vietnam to complete the transition successfully from a planned to a market economy'(World Bank 1997: xiii). Skills, knowledge, and attitude designate the successfully 'educated' Vietnamese national subjects for the bank. (...) The educational 'system' performs, therefore, a disciplinary function by using the technologies of the nation state to cultivate productive humans—measured by technical expertise and computer and business skills—for transnational companies who do business in the region. (shrink)

The objective of this research is to investigate the effects of corporate governance scores and environmental, social, and governance scores (ESG) on firms’ cost of capital in emerging countries. The sample consists of 800 firm-year observations collected from Thomson Reuters. We analyze the data using panel-corrected standard errors (PCSE) regressions, which correct for heteroskedasticity issues and contemporaneous errors in the data. When moderated with emerging market variable, our findings indicate that in the financial sector, corporate governance (...) and ESG score is negatively associated with cost of capital. Nonetheless, in the nonfinancial sector, no evidence is found on the effect of corporate governance and ESG on cost of capital. Our findings indicate that emerging countries, different institutional, ownership, and legal structural has an effect on corporate governance and ESG implementation. (shrink)

Entrepreneurship plays an indispensable role in the economic development and poverty reduction of emerging economies like Vietnam. The rapid development of technologies during the Fourth Industrial Revolution (Industry 4.0) has a significant impact on business in every field, especially in the innovation-focused area of entrepreneurship. However, the topic of entrepreneurial activities with technology applications in Vietnam is under-researched. In addition, the body of literature regarding entrepreneurial finance tends to focus on advanced economies, while mostly neglecting the contextual (...) differences in developing nations. Therefore, this research contributes to these topics by investigating the main characteristics of a high potential market for entrepreneurs in Vietnam, which is the English language training market (ELTM). It also aims at indicating the impacts of technology on the entrepreneurial firms within this market, with an emphasis on financing sources. To answer the research questions, this study employs a qualitative analysis and conducts 12 in-depth, semi-structured interviews with entrepreneurs and researchers in the field. The key findings in our study highlight the main contributing factors to the growth of the market, both universally and context-specific for a developing nation like Vietnam. It also lists the leaders in each market segment and the industry’s potential profit margin. The results also show that most entrepreneurs in the ELTM utilized private sources of finance rather than external ones, such as bank loans. It again confirms the idea from previous works that even with the rapid development of the economic and technological landscape, entrepreneurial activities in general barely benefit from additional sources of funding. However, it also points out the distinct characteristics of the ELTM that may influence these financing issues; for example, English training services usually collect revenues from customers before delivering their classes. This is of advantage for entrepreneurs in this area and helps significantly reduce the financial barriers. These findings, which are among the first attempts to contribute to a better understanding of entrepreneurial opportunities in the Industry 4.0 in Vietnam, provide valuable insights for policymakers and entrepreneurs, as well as investors. (shrink)

Engaging with the work of C. Wright Mills and Eve Sedgwick, in this article I theorize how homoerotic relations facilitate the flow of global capital into risky market economies. Drawing on interview data with more than 60 financial professionals managing foreign investments in Vietnam, I examine the co-constitution of gender and global capital by identifying three categories of deal brokers. System maintainers are men and women who accept that women’s bodies are necessary for male homosocial bonding (...) between political and economic elites. System transformers are men and women who disrupt the status quo and develop alternative ways of deal brokering outside of erotic spaces. System defectors are those break the triangle altogether and work to create new markets. (shrink)

Vietnam’s money and capital markets continue to see dramatic stages in the remaining months of 2011 due to high bank rates and also increasing foreign-exchange exposure faced by domestic enterprises.

The transition economy of Vietnam enjoyed remarkable achievements in the first 20 years of economic renovation (Doi Moi) from 1986 to 2006. Notably, the economy grew at an average annual rate of 7.5% in 1991-2000 period. Vietnam’s Amended Constitution 1992 recognized the role of private sector in the economy. U.S.-Vietnam Trade Bilateral Agreement (US-BTA) was signed in 2001. The country's stock market made debut trading in 2000. Vietnam became a member of Association of Southeast Asian (...) Nations (ASEAN) in 1995, then proceeded to full membership of the World Trade Organization in 2007, following which registered foreign direct investment (FDI) reached an all-time high of US$71.7 billion in 2008. Together with the impressive economic achievements, Vietnam also saw its diplomatic and political status constantly improved in the international arena. The country has established diplomatic relations with more than 170 countries in the world, strategic partnerships with 12 important economies, both developed and emerging, namely China, Japan, Russia, India, England, France, North Korea, Italy, Germany, Indonesia, Malaysia and Thailand. The country also successfully hosted important events including the Asia Pacific Economic Cooperation (APEC) in 2006. (shrink)

Decision-making regarding healthcare expenditure hinges heavily on an individual's health status and the certainty about the future. This study uses data on propensity of general health exam (GHE) spending to show that despite the debate on the necessity of GHE, its objective is clear—to obtain more information and certainty about one’s health so as to minimise future risks. Most studies on this topic, however, focus only on factors associated with GHE uptake and overlook the shifts in behaviours and attitudes regarding (...) different levels of cost. To fill the gap, this study analyses a dataset of 2068 subjects collected from Hanoi (Vietnam) and its vicinities using the baseline-category logit method. We evaluate the sensitivity of Vietnamese healthcare consumers against two groups of factors (demographic and socioeconomic-cognitive) regarding payment for periodic GHE, which is not covered by insurance. Our study shows that uninsured, married and employed individuals are less sensitive to cost than their counterparts because they value the information in reducing future health uncertainty. The empirical results challenge the objections to periodic health screening by highlighting its utility. The relevance of behavioural economics is further highlighted through a look at the bounded rationality of healthcare consumers and private insurance companies in using and providing the service, respectively. (shrink)

This article reports the findings of a field study conducted on the purchasing intentions of ethical consumers in India. We explored how the involvement of ethical consumers with social networking sites (SNSs such as Facebook, Twitter, Instagram, Snapchat, LinkedIn, and others) affects their intentions to buy ethical products. Applying an extended theoretical lens of theory of planned behavior and social capital, we present an analysis of a rich qualitative data. We identify and describe 7 dimensions, representing the 19 factors (...) and manifesting the informational, relational, and valuation usage of SNSs that explain their impact on the purchase intention of ethical consumers in India. We conclude by highlighting the decision-making role played by the ethical knowledge and price sensitivity of ethical consumers, reflecting the peculiarities and dynamics of ethical consumption in India. (shrink)

Social capital can serve as informal governance in weak investor-protection regimes. Using hand-collected data on entrepreneurs’ political connections and firm ownership, we construct several original measures of social capital and examine their effect on the performance of entrepreneurial firms in China after their initial public offerings. Political connections or a high percentage of external investors tend to enhance firm performance, but intragroup related-party transactions commonly lead to performance decline. These forms of social capital have a strong influence (...) on the performance of Chinese firms, whereas formal governance variables such as board size or board independence have little effect. Although social capital may serve as an informal governance mechanism and effectively substitute for formal governance mechanisms in an emerging market, this role of social capital raises several ethical concerns, notably the development of rent-seeking and crony capitalism. (shrink)

Introduction. Higher education plays a particularly important role in the development of a country. The goal of the article is to describe the development of concepts about education in general and higher education in particular to explain the role of education in social life. Humboldt sees higher education as a process toward freedom and the search for true truth. Humboldt's philosophy of higher education is an indispensable requirement in the context of people struggling to escape the influence of the state (...) and church forces. The purpose is to find out the content and principles of higher education, especially meaningful suggestions for building an autonomous education in Vietnam today. Materials and Methods. The article uses materialist dialectic to analyze Humboldt's philosophy of higher education. In addition, the article also uses methods of analysis, synthesis, comparison and contrast to clarify views on education in the history of human thought from ancient, medieval, modern and modern times, from which to draw the basic contents and principles in the philosophy of higher education of Humboldt. Results and Discussion. Humboldt is the founder of the University of Berlin - known as the mother of modern universities. It is a new university model based on the philosophy of upholding freedom in learning and teaching, upholding the scientific spirit to seek and discover the truth, and at the same time, combining teaching with scientific research. His liberal education philosophy has contributed to affirming the strength and position of universities. He criticized state intervention in university institutions. Based on the anthropological foundation of emphasizing human diversity, Humboldt's higher education philosophy is truly liberating when it comes to bold views. Humboldt believes that a university is a pure place of science and research, so it is not influenced by any outside force, even from the state. A university is where academic freedom, scientific freedom and other autonomy are guaranteed so that the institution can run smoothly. Universities must have unity between research and teaching. However, Humboldt's philosophy of higher education still contains many issues that need to be considered thoroughly. Specifically, the promotion of internal self-determination requires financial autonomy while the state's investment capital in universities is still quite large; Calling for education to be privatized is still inadequate. The elitist spirit in the Humboldt model is no longer fully relevant in the context of a market economy that tends to lead to the pursuit of targets, which are often related to quality. Practical significance. Humboldt's liberal philosophy of higher education has a strong influence, dominates and becomes a reality in many countries with advanced education. For Vietnam, Humboldt's higher education philosophy is a meaningful suggestion to build an autonomous education under the country's socio-historical conditions. (shrink)

Belief in the benevolence of free markets has become a fundamental credo of professional experts, economists, business people and politicians. We regard this discourse as part of a new culture of markets, which has also taken root in Southeast Asia. Expanding markets and using high-tech devices of communication are interpreted as cultural systems that are used in the construction of modernity. An `unbridled romanticism of productivity' (Baudrillard) and a `romance of capitalism' are the meta-narratives underlying the culture of markets. This (...) theme is followed up on two empirical levels. The development policy of three Southeast Asian governments, namely Malaysia, Vietnam and Indonesia, is briefly characterized as market corporatism, market socialism and high-tech developmentalism. We then focus on the emergence of the new middle classes, their actual and symbolic consumption and their lifestyles. Finally the decline of real markets, the creation of virtual markets and the state of postmodernity in Southeast Asia are discussed. We conclude that market fundamentalism and postmodern lifestyles characterize the beginning rather than the end of modernity in Southeast Asia. (shrink)

Purpose ‐ The purpose of this paper is to explore the "resource curse" problem as a counter-example of creative performance and innovation by examining reliance on capital and physical resources, showing the gap between expectations and ex-post actual performance that became clearer under conditions of economic turmoil. Design/methodology/approach ‐ The analysis uses logistic regressions with dichotomous response and predictor variables on structured tables of count data, representing firm performance as an outcome of capital resources, physical resources and innovation (...) where appropriate. Findings ‐ Key findings relevant to economic and business practice follow. First, a typical characteristic of successful Vietnamese firms in the transition period is their reliance on either capital resources or physical asset endowments. Second, poor performers exhibit evidence of over-reliance on both capital and physical assets. Third, firms that relied on both types of resources tended to downplay creative performance. Some evidence suggests that firms face more acute problem caused by the law of diminishing returns in troubled times. Fourth, the "innovation factor" has not been tapped as a source of economic growth. Research limitations/implications ‐ This study has some limitations. The size of the survey sample is approximately 150 firms, while the potential sample of > 300 should be possible in the future. When the size increases, the research could be expanded to include further variables that will help investigate more deeply into the related issues and business implications. With regard to the implications of the study, the absence of innovations has made the notion of "resource curse" identical to "destructive creation" implemented by ex-ante resource-rich firms, and worsened the problem of resource misallocation in transition turmoil. The Vietnamese corporate sector's addiction to resources may contribute to economic deterioration, through a downward spiral of lower efficiency leading to consumption of more resources. Practical implications ‐ Insights obtained from this study could save transition economies' resources which have almost always been considered sine qua non before any critical major policymaking, while this is not necessarily true, and in many cases, even counterproductive. Originality/value ‐ Original data set on Vietnam stock market are collected, processed, prepared and used by the authors. Original design by the authors for regression equations with dichotomous predictor variables: dependence on endowed physical assets, reliance on capital resources and significant signs of creative performance/innovations. Original idea of viewing "resource curse" as absence of innovation and due to uncreative "destructive creation" of poor-performing commercial operations by resource-rich firms is used in the paper. We have searched the literature in business research and found that the empirical results have not been previously reported. (shrink)

The globalizations of capital markets in the last 20 years has led to a historic degree of financial integration in the world. It is clear, however, that globalization is not conducive to a complete homogeneity of financial markets and institutions. Among others, one element of diversity is the importance of the impact of corruption in emerging countries. Corruption decreases the credibility of financial institutions and markets. Scandals and unethical behavior in financial institutions erode confidence in such firms. Relying (...) on neoinstitutional literature, this article focuses on the link between corruption and organizational isomorphism in financial institutions in emerging countries. Therefore, our aim is to examine the institutional reasons for corruption in financial institutions in emerging countries. Our structural equation model is based on empirical research in financial institutions in emerging countries. A questionnaire was administrated to 70 top executives of financial institutions in 18 different emerging countries. (shrink)

So far, most ethical consumerism research has been contained within Western countries, thus limiting our understanding of the concept in emerging markets. Given the call for extending empirical-based knowledge for a better understanding of peculiarities, dynamics and country-level variations (i.e. social, cultural) in the context of ethical consumerism in emerging markets, this research cross-examines the interactive nature of individual- and country-level predictors of ethical consumerism in emerging and developed markets, employing a multilevel approach. At the individual level, (...) we posit that ethical consumerism is motivated by social and cultural capital. In contrast, at the contextual level, we choose country-level affluence as an influential factor that might impact the relationship between socio-cultural capital and ethical consumerism. The study uses the International Social Survey Programme’s (ISSP) 2014 citizenship module data set (including 34 countries) for investigating individual-level predictors (of social and cultural capital). The GDP per capita data from the International Monetary Fund’s (IMF) Economic Outlook database was used to examine the cross-level interactions between individual-level predictors and country-level affluence. The findings suggest that social and cultural capitals positively influence ethical consumerism in emerging and developed markets. Further, country-level affluence moderates the relationship between socio-cultural capital and ethical consumerism for both markets. However, cultural capital proved to be a stronger predictor of ethical consumerism as country-level affluence increases. The research findings highlight meaningful cross-country-level interactions that help further understand the basis of ethical consumerism from a global perspective. (shrink)

Using theories by Pierre Bourdieu and the Frankfurt School that causally link art to class interests, this article examines the differential development of modern architecture in the United States and central Europe during the early 20th century. Modern architecture was the aesthetic expression of technocracy, a movement of the new class of professionals, managers and engineers to place itself at the center of rationalized capitalism. The aesthetic of modernism, which glorified technology and instrumental reason, was weak and undeveloped in the (...) US, because this class defined by its cultural capital was quickly integrated into modernizing corporations, where it was compelled to cater to the emerging mass market and drop its distinctive aesthetic. Modern architecture emerged mainly in interwar central Europe, because here industrial modernization was blocked, forcing the new class to pursue an alliance with state managers pushing modernization. Thus unencumbered by the demands of the mass market, modern architects were free to express their machine aesthetic in state-financed housing projects. (shrink)

The first question we will try to answer is how did a Communist Party that rejected all forms of a market economy during its first 30 years in power succeed in establishing capitalism in China when so many attempts had failed after the mid-nineteenth century. Instead of relying on the traditional economic explanation based on labor, capital, and productivity that is favored by economists and that has been well discussed in the economic literature, we will focus more on (...) the political and social factors that explain this acceleration of history.The second question is related to the different problems that the Chinese economy faces today. China has registered one of the fastest economic growth rates in the history of capitalism, but this take-off still appears fragile in many analyses, potentially reversible. Again, if we consider what has been achieved during 25 years of reform, the question we can ask is whether the problems that create the concern with fragility represent a real threat to the economic modernization launched in 1978, and to the definitive establishment of a capitalism system in China.Finally, a third question that has been repeated like a mantra in foreign government circles and by reformers in China: Will the economic transformations that have taken place in the People’s Republic soon lead to the emergence of a democratic regime that will enable China to complete its cycle of modernization? (shrink)

As a most important component of capital market, stock market has always been regarded as the “barometer” of macroeconomy. However, many researchers have found that the stock market is not always in the lead, especially for the emerging markets, and the leading role of different sector indices is also different for the corresponding sectors. From the perspective of a comparison between mature market and emerging market at sectoral level, this paper utilizes the (...) thermal optimal method to examine the dynamic lead-lag relationships between stock sector indices and macroeconomic variables for the USA and China. The results show that, for the US stock market, three sector indices including consumption, industry, and real estate have been leading the corresponding macroeconomic variables since 2013; for the Chinese stock market, the lead-lag relationships are different for these sectors. The real estate sector index and the industry sector index have been leading the corresponding macroeconomic variables since 2010, and the lead-lag relationship between the consumption sector index and the total retail sales is not always positive or negative, which means that the consumption sector index does not always lead the total retail sales. The empirical results confirm that the “barometer function” of immature stock market is still weak and easier to be disabled by factors such as irrational market sentiment. (shrink)

What signals do firms in emerging economies send to stakeholders when they adopt corporate social responsibility practices? We argue that in emerging economies, firms that adopt CSR practices positively signal investors that their firms have superior capabilities for filling institutional voids. From an institution-based view, we hypothesize that the institutional environment moderates the signaling effect of CSR on a firm’s financial performance. Based on a sample of firms from ten Asian emerging economies, we find a positive relationship (...) between CSR practices and financial performance. This positive relationship is stronger in the less developed capital market than in the more developed one. The financial benefits of CSR practices are also more salient in the low information diffusion market than in the high one. We emphasize that signaling theory and the institution-based view can jointly contribute to the CSR literature. (shrink)

“Moral capital” is a concept emerged in the China ethical community at the end of the 20th century. The issue of moral capital arises from discussions about economy and ethics. The controversial point in this concept consists in that morality is a kind of capital. Will morality become a capital? I think it is possible. The interpretation of the concept “capital” should go back to the logical starting point of economics, namely, “rational-economic man.” From the (...) perspective of moral philosophy, every economic activity is committed to morality. The maximization of self-interest is only a part of rationality. Rationality should also cover the acquisition of no self-interest valuable goals. People’s economic behaviors may also be connected with culture, ethics, intelligence, aesthetic appreciation or emotions. I think it is time to radically reform rationality. The issue of moral capital reinterprets capital by basing on humanity. The core of moral capital consists in the revealing of capital’s property of value; this value functions against the background of the socialist market economy system. It is the issue of economic justice in the context of contemporary China. (shrink)

Examining how new forms of currencies diffuse is important to uncover their impact on the organization of communities, and thus motivates our study of community currencies. Community currencies provide a medium of exchange by using alternative banknotes or electronic money, which circulates only within particular communities, allowing members to trade goods, increase social cohesion, and achieve collective goals. In this study, we examine how community currencies help facilitate social commons by serving as a setting for building community relationships and a (...) catalyst for other social activities beyond market relations. We analyze cases of community banks that provide microfinance and issue community currencies in Brazil. We find that microfinance entrepreneurs who involve a greater diversity of stakeholders from public, private, and nonprofit sectors in decision making even prior to startup, while also facilitating the formation of supportive social capital from diverse cross-sector stakeholders, increase opportunities for developing new community currencies. By exploring the implications of entrepreneurial actions that promote inclusive participation of diverse stakeholders for accomplishing collective goals, our findings are relevant for other activities that create a common pool of resources while also developing the vitality of the community, including initiatives that use cryptocurrencies and other emerging forms of currencies for building social commons. (shrink)

The emerging critique of alternative food networks (AFNs) points to several factors that could impede the participation of low-income, minority communities in the movement, namely, spatial and temporal constraints, and the lack of economic, cultural, and human capital. Based on a semi-experimental study that offers 6 weeks of free produce to 31 low-income African American households located in a New Orleans food desert, this article empirically examines the significance of the impeding factors identified by previous scholarship, through participant (...) surveys before, during, and after the program. Our results suggest economic constraints are more influential in determining where the participants shop for food than spatial and temporal constraints, and the study participants exhibit high levels of human and cultural capital regarding the purchase and consumption of locally grown produce. We also find them undeterred by the market’s predominantly White, middle-class cultural social space, which leads us to question the extent to which cultural exclusivity discourages their participation in AFNs. For all five factors we find that the constraints posed to accessing the local food market were not universal but varied among the participants. Finally, the study reveals some localized social constraints, fragmented social ties in particular, as a possible structural hurdle to engaging these residents in the alternative market in their neighborhood. Conclusions point to the need for a multi-dimensional and dynamic conceptualization of “food access.”. (shrink)

Business Ethics, the Environment & Responsibility, EarlyView.

To grasp current trends within capitalism without abandoning the framework of Marx’sCapitalwe need to return to the category of ‘fictitious capital’ and make it central to our explanations. Based on the 2012 Isaac and Tamara Deutscher Memorial Lecture, this essay combines reflections on Marx’s account of ‘fictitious capital’; an investigation of the role of bills of exchange; and an analysis of the recent turmoil in British and US banking. It looks at the way the opium trade, financed through (...) the London bill market, integrated a constellation of interests in the City with the labour of peasant households in India as parts of a unified accumulation process. Opium was vital to the fortunes of British capitalism for most of the nineteenth century. The merchant banks that were the mainstay of Britain’s form of capitalism were also the key element in the re-emergence of global finance in the postwar period. The concluding part of the paper deals with the current banking crisis and follows Hilferding in arguing that by providing liquidity to the markets for fictitious capital, speculation plays a crucial role in sustaining profitability for the bigger capitals. (shrink)

To understand the changing patterns within agriculture, it is important to look not only at social relations and organisational configurations. Also salient to such an analysis is an examination of how those formations give shape to non-humans. Much attention has been placed recently on the political economy of agriculture when speaking of these emergent patterns. Yet in doing this, the natural environment is all too often relegated to the backdrop; where the agroeconomy is viewed as something that manoeuvres within the (...) environment but never through it. The conceptual groundwork for this paper draws from two often unconnected scholars: Michel Foucault and Fernand Braudel. In Foucault, we find a framework, with a little conceptual development, through which to talk about how the economy (of both discipline and capital) enters into nature. Specifically, the argument is made that through the embodiment of discipline, nature too becomes disciplined. Yet in Foucault we find a discursive conception of socio-economic history; where capitalism is discussed, but always as an effect of the discursive structures of power/knowledge. Enter the work of Braudel, to provide us with a materialist counterweight to Foucault's theorising. In Braudel, we find a detailed analysis on the emergence of capitalism, out of which then comes his distinction between markets and anti-markets. In short, when both accounts of history are overlaid, interesting connections between the emergence of Braudelian anti-markets and Foucaultian discipline are revealed. Two brief case studies are then examined to add further depth to the discussion: the first focusing on corn; the second centring on the cow. The paper then concludes speaking on the issue of resistance. (shrink)

Scholarship on Corporate Social Responsibility has progressed to encompass a variety of theoretical frameworks. The adoption of Stakeholder Theory is prominent with regard to CSR among big businesses but its applicability towards micro and small businesses is contested. Micro and small businesses possess distinct differences most notably their less formal structure and more pronounced indigenous cultural diversity. To expand scholarship on CSR, this research explores the relatively less studied realm of micro businesses or informal businesses. Due to their rudimentary structure, (...) micro businesses normally operate with other organizations, institutions, and each other, and are thus intricately linked with the local community. Hence, this research explores a locality and institution where micro businesses thrive—Jelutong wet market in Penang, Malaysia. This research offers a rare and arguably novel perspective. Firstly, the micro businesses are operating alongside and constantly interacting with each other within the institutional setting of a wet market. Secondly, the said wet market is located in Penang, Malaysia that is highly diverse in terms of ethnicity, culture, religion, language, age, and socio-economics. The fieldwork employs multiple local languages for a high degree of authenticity and richness in data. Thirdly, this research adopts the methodology of phenomenology with a multi-layered approach. The fieldwork consists of thirty primary interviews followed by five verification interviews all conducted in local languages the respondents are most comfortable in expressing themselves, fifteen non-participant observations, and ten participant observations. An abductive research strategy is adopted and first-order constructs in the form of everyday typifications are adduced. The first-order constructs are analyzed along the layers of Carroll’s Pyramid of CSR. Subsequently, the second-order constructs are iteratively analyzed and three typologies on CSR among micro businesses emerged. Finally, the findings from the second-order constructs are superimposed back onto the Pyramid of CSR. A different Pyramid of CSR emerges with fresh insights on the phenomenon of CSR among micro businesses. Retroductive reflection, reasoning, and analysis reveal Social Capital Theory as the most suitable theoretical framework and the implications for CSR scholarship are discussed. (shrink)

Non-domestic companies are increasingly present on the London Stock Exchange. Such companies have specific governance requirements. They may seek to access capital in a more liquid market and to diversify ownership. The reputational ‘bonding’ to a prestigious exchange should be a statement to the market of a propensity to disclosure and a willingness to protect minority shareholders. Yet, many non-domestic companies retain tightly controlled shareholding structures and are based in emerging regions where national culture norms differ (...) to the UK. We hypothesise that non-domestic companies are likely to be less compliant with the principles of the UK Corporate Governance Code and suggest a correlation between lower levels of compliance and non-domestic companies from countries that demonstrate high power distance in the Hofstede cultural value framework. We find some encouraging signs of compliance with the reigning governance code principles in Board structures. However, we find only partial compliance in leadership and Board effectiveness measures in those companies from cultures high on the power-distance scale. Further, we include analysis into ownership characteristics and find companies from emerging markets are dominated by a single or controlling group of shareholders, which is likely to impact on attitudes to compliance and is particularly evidenced in terms of Board structures with no executive directors or led by an executive Chairman. Much of the prior research effort into the levels of compliance with the UK’s ‘comply-or-explain’ approach to governance has produced mixed results and focused on all companies. In our exploratory approach to analysing only the non-domestic subsample, we report some evidence linking cultural distance to lower levels of compliance with the UK standards. We develop a framework to guide future research into the context and cultural underpinnings of this sub-sample of companies, hypothesising that frequent market capitalisation-induced index changes may divert attention away from any potential compliance issues. On the one hand, our evidence is encouraging for governance regimes based on voluntary compliance disclosures such as the UK and similar European and international markets, as we report partial compliance with the principles of the current governance code. Our research may, however, be helpful in guiding future versions of the UK governance framework and other international governance regimes adopting the ‘comply-or-explain’ approach and in setting policy to improve disclosure. It contributes to the understanding of the specific context of non-domestic companies and any cultural tendencies to non-compliance. By demonstrating evidence of lower levels of compliance with key principles of the Code by non-domestic companies, we present a framework enabling lawmakers to further improve corporate governance codes. (shrink)

Wage inequality and land and labor insecurity are critical barriers to sustainable palm oil production among those employed in Indonesia’s small-farm sector. Palm oil contract farming, a pre-harvest agreement between palm oil farmers and transnational processors and traders, facilitates smallholder participation in global agro-commodities markets, improves smallholder livelihoods, and promotes local economic development in rural communities. But negative externalities in contract farming can emerge depending on whether corporate guarantors of contract-farm assets manage farmer assets equitably. This study explores how contract (...) farming agreements between smallholder farmers of palm oil and futures traders of palm stocks impact the long-term economic development of smallholder palm oil farming in Indonesia. We examined the relative impact of transnational palm oil corporations on smallholder assets in the Indonesian palm oil industry using annual financial data (2003–2019) from Indonesian commodities trading firms. Temporal trends indicated that oligopolistic market conditions were strongly associated with a growing comparative advantage in palm oil, the asymmetric accumulation of land resources by transnational firms, and excessive firm revenues from palm farmer activities. Our regression modelling results suggested that the comparative advantage in Indonesian palm oil was driven by state-oriented policies such that benefit palm traders but disadvantage smallholder farmers. And, through non-metric multidimensional scaling, we demonstrated that smallholder farmers were inefficiently used by firms to produce palm oil, but that smallholder assets were a significant driver to firm revenue growth. Notwithstanding the adverse consequences on palm farmers, these results indicate a set of unique effects of palm oil contract farming on land and labor security in Southeast Asia. The paper reasons that a system of inequitable contract farming is operating in the Indonesian palm oil industry, whereby smallholder palm oil farmers are trapped by transnational firms into socio-economic farming schemes of low oil yield and non-market activity, thus providing palm firms with lucrative non-market revenue streams. Large transnational trading firms are thereby implicated in the long-run commodification of smallholder land for marginal fruit production while exploiting a farmer’s non-market advantages through the manipulation of farmer assets. (shrink)

This article uses Public Use Microsample data drawn from the 1990 census to explore the relationship between military presence, defined as the percentage of the local labor force in the active-duty armed forces, and women's employment and earnings across local labor market areas in the United States. Comparisons of local rates of unemployment and mean women's earnings are made between those LMAs in which the military plays a disproportionate role in the local labor market and those in which (...) military presence is low. Results suggest that women who live in labor market areas with a substantial military presence have, on average, lower annual earnings and higher rates of unemployment than their counterparts who live in nonmilitary LMAs. The argument is made that through the interaction of several socially situated conditions—including gender, family, labor markets, human capital, and place—the military emerges as a source of inequality in labor market outcomes for women working on or around military installations. (shrink)

Using a unique dataset provided by the international rating agency GES®, we investigate the effects of corporate sustainability and industry-related exposure to environmental and social risks on the market value of MSCI World firms. The results show a negative relationship in the earlier years of our sample period. However, the analysis reveals that the capital market perception of sustainability has changed owing to the financial crisis. Looking at the height of the crisis in September 2008, the month (...) in which Lehman Brothers shocked the world’s capital markets by filing for Chapter 11 bankruptcy protection, we find that the previously negative perception of corporate sustainability across its various dimensions was positively affected and offset. In addition, as a moderated regression analysis shows, the crisis led to a positive perception of corporate sustainability in industries that are exposed to higher environmental and social risks. Our study has the practical implication that executives, in particular in industries with high environmental and social risks, should increase their commitment to corporate sustainability due to the changes in the institutional setting triggered by the financial crisis. (shrink)

As a rapidly growing emerging capital market, China has attracted the attention of both investors and scholars. To alleviate the expectation of external users of listed companies’ financial statements to “discount” items in levels 2 and 3 of the fair value measurement, listed companies will treat these items as conditional conservatism. It refers to the conservatism of companies when confirming bad news of unrealized gains and losses sooner than confirming good news. A sample was selected for empirical (...) analysis to verify the existence of this relationship. The results are as follows: the higher the proportion of levels 2 and 3 fair value measurements, the stronger the conditional conservatism of the company’s profit and loss; the higher the proportion of cash holding of operating activities in a company’s operating profit and the higher the audit quality, the higher the proportion of levels 2 and 3 fair value hierarchy measurements, and the stronger the conditional conservatism of the company’s profit and loss; and the lesser the internal control defects in a company, the higher the proportion of levels 2 and 3 fair value hierarchy measurements, and the stronger the conditional conservatism of its profit and loss. The findings provide empirical evidence to identify listed companies adopting conditional conservatism to alleviate discounting expectations of fair value items of financial statements’ external users and provide a reference for improving the standards and regulation of listed companies. (shrink)

Based on the concept of Informational Cities, which are the highly developed prototypical cities of the 21st century, we conducted a regional comparison of four Japanese cities in terms of their “cityness” and “informativeness”. The purpose of our articles is to specify the theoretical framework for measuring the informativeness and cityness level of any desired city, to quantify the chosen indicators in order to compare the investigated cities, and finally, to conclude what is their advancement level in terms of a (...) modern city of the knowledge society. Our methodology is based on a new approach to measure the position of a city in a national or a global scale, originating from information science and its indicators of the knowledge society. It includes such procedures as desktop research and bibliometrics, ethnographic field study, or grounded theory method. The investigated aspects under the notion of the informativeness level are the distinct labour market and mix of companies located in the city, as well as the progressive e-governance and advanced e-government. The notion of cityness level oscillates around the concept of space of flows in the city, including the flow of money, power, information, and human capital. In order to make our model practical and grounded on available evidence, we have chosen four Japanese cities to undergo the process. Tokyo, Yokohama, Osaka and Kyoto are big and economically significant Japanese metropolises. However, our results show that they differ from each other regarding many important aspects. We were able to quantify their performances and create a ranking. The limitation of our approach appears to be the strict quantification method that makes the cityness and informativeness levels of the cities dependent on other cities’ performances, and that does not precisely reflect the actual dimension of the differences between them. Hence, in the future work we will develop a more flexible and independent approach, enabling us to make more accurate statements on cities’ advancement unregarded the advancement level of the other metropolises. (shrink)

We examine whether gender-diverse boards prioritize product market concerns over capital market incentives when proprietary costs are high. We argue that gender-diverse boards protect their firm’s competitive edge and maximize long-term shareholder wealth by ethically and carefully maintaining the confidentiality of proprietary information. Due to the reduced disclosure of proprietary information, firms with gender-diverse boards are likely to face more adverse selection when proprietary costs are high. However, the reduced disclosure of proprietary information enables firms with gender-diverse (...) boards to enhance and maintain their competitive edge and gain higher long-term returns. Using a matched sample of the United States-listed companies, we find that firms with gender-diverse boards, relative to similar firms with all-male boards, (1) are associated with higher adverse selection costs and (2) higher long-run stock returns when the firm faces high product market competition. Collectively, our results suggest that firms with gender-diverse boards, which initially experience higher adverse selection in a competitive environment, are rewarded with a net gain of about 10 percent of their stock price in three years. Our research contributes to the literature by highlighting the importance of board gender diversity in fostering the ethical redaction of proprietary information for proprietary cost-based motives as opposed to agency cost-based motives. Our findings have important implications for regulators, firms, and shareholders by identifying gender-diverse boards as an antecedent for the ethical redaction of proprietary information. (shrink)

This article examines the work of professional service firms (PSFs) in their relationships with public corporations; work that is designed to ensure that investors and potential investors have information that will enable them to participate in the capital markets. Using an institutional theory lens, we view these efforts by PSFs as institutional maintenance work and specifically analyze their work related to policing (i.e., rating), enabling (i.e., tutoring), and embedding and routinizing (i.e., collaborating) that helps to support the capital (...) market as a core institution in society. We illustrate how there is a “dark” side to each of these forms of institutional work that exists because of ongoing conflicts of interest within and between their work practices. This dark side has the unintended consequence of producing often biased information or information unavailable to many. When a crisis brings this bias to light, some repair is introduced but often not enough to alleviate the distortion. Our contribution is, therefore, to shed light on the dark side of institutional maintenance work and to explore why repair is increasingly necessary, but often only partially effective. (shrink)

Integrated reporting, as a novel corporate reporting approach, focuses on how six forms of capital promote corporate value. This paper explores whether this kind of multiple capitals disclosure framework has an impact on the capital market. Using a sample of Chinese A-share firms from 2012 to 2016, we examine the relationship between MCD quality and firm value. The results indicate that a higher MCD quality leads to a greater firm value. Our results are robust to a variety (...) of sensitivity tests. Further evidence suggests that MCD quality could increase profitability by affecting the decision-making of non-financial stakeholders and enhance the value relevance of financial information by affecting the decision-making of investors. The paper helps understand how the IR approach affects the perception of investors on the value of a firm. The findings of the paper are of interest to academics, corporate management, investors, and governmental officials. (shrink)