scholarly journals Natural Catastrophes and Sovereign Bond Prices

10.28945/3784 ◽  
2017 ◽  
Author(s):  
Burkhard N Schrage
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Sovereign Debt ◽  
Emerging Market ◽  
Investment Decisions ◽  
Future Research ◽  
Bond Prices ◽  
Sovereign Bond ◽  
Natural Catastrophes ◽  
Parametric Analyses

Aim/Purpose: This study investigates effects of natural catastrophes on the cost of sovereign debt in developing countries and discusses MNC financing strategies. Background: Over the last decades, natural disasters have increased in both number and severity. The combination of higher event frequency and intensity, coupled with fragile economic conditions in emerging market countries, may affect sovereign bond prices—particularly in developing countries—and consequently may have effects on the financing strategy of MNCs Methodology: Parametric and non-parametric analyses and event study method. Contribution: The current literature in International Business research has overlooked natural catastrophes as a source of heterogeneity across countries for investment decisions. We develop the theory and demonstrate empirically that both researchers and practitioners should take into account natural disasters when making internationalization decisions. Findings: We find that natural disasters have a material impact on the bond returns issued by developing country governments and consequently on MNCs’ host-country financing costs. Recommendations for Practitioners: Practitioners may consider the likelihood of natural disasters when making investment decisions in foreign countries. Recommendation for Researchers: Researchers may consider including natural disasters when in internationalization research; our research adds in particular a new dimension to the location choice literature. Impact on Society: Governments—in particular those in emerging markets—may rethink their strategies of how to “insure” themselves against natural disasters. Not being insured against these disasters result in negative secondary effects on economic development through higher cost of capital, and possible through lower FDI activities. Future Research: Future research can be done. There are several avenues: using our insights and applying them to governmental reinsurance strategies would be a worthwhile topic. On a different level, one could also investigate further the contingencies of our findings and extend the theoretical framework towards developed markets.

Mispricing of Risk in Sovereign Bond Markets with Asymmetric Information

2016 ◽  
Vol 17 (4) ◽  
pp. 491-511 ◽  
Author(s):  
Benedikt Mihm
Keyword(s):  
Asymmetric Information ◽  
Default Risk ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Fiscal Sustainability ◽  
Bond Prices ◽  
Sovereign Bond ◽  
European Sovereign Debt Crisis ◽  
The Government ◽  
Sovereign Bond Markets

Abstract The likelihood that a government will repay its sovereign debt depends both on the amount of debt it issues and on the government’s future ability to repay. Whilst the former is publicly observable, the government may have more information about the latter than investors. This paper shows that this asymmetric information problem impairs the market’s ability to differentiate economies according to their fiscal sustainability, and can lead to a disconnect between bond prices and default risk. The model can help rationalise the behaviour of Eurozone bond prices prior to the recent European sovereign debt crisis.

Choosing the "Plus" in Core-Plus: The Cases for High-Yield Bonds, Emerging Market Debt, and Sovereign Debt

2001 ◽  
Vol 2001 (1) ◽  
pp. 60-79
Author(s):  
Barry Coffman ◽  
Ismail Dalla ◽  
Kenneth Windheim
Keyword(s):  
Sovereign Debt ◽  
Emerging Market ◽  
High Yield

Website Information Security and Privacy Concerns in 4IR: The Moderating Role of Trust in B2C e-Commerce

10.29007/jlq6 ◽  
2019 ◽  
Author(s):  
Thabang Mofokeng
Keyword(s):  
South Africa ◽  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Success Factors ◽  
Industrial Revolution ◽  
Emerging Market ◽  
Security And Privacy ◽  
Future Research ◽  
Privacy And Security ◽  
Customer Trust

The technology devices introduced in recent years are not only vulnerable to Internet risks but are also unable to elevate the growth of B2C e-commerce. These concerns are particularly relevant today, as the world transitions into the Fourth Industrial Revolution. To date, existing research has largely focused on obstacles to customer loyalty. Studies have tested e-commerce models guided by the establishment of trusting, satisfied and loyal consumers in various international contexts. In South Africa, however, as an emerging market, there has been limited research on the success factors of online shopping.This study examines the influence of security and privacy on trust, seen as a moderator of customer satisfaction, which in turn, has an effect on loyalty towards websites. Based on an exhaustive review of literature, a conceptual model is proposed on the relationships between security and privacy on the one hand, and customer trust, satisfaction and loyalty on the other. A total of 250 structured, self-administered questionnaires was distributed to a purposively selected sample of respondents using face-to-face surveys in Johannesburg, South Africa. A multivariate data analysis technique was used to draw inferences from the data. With an 80.1% response rate, the findings showed that privacy and security do influence customer trust; security strongly influences customer trust and weakly influences satisfaction. In South Africa, customer loyalty towards websites is strongly determined by satisfaction and weakly determined by trust. Trust significantly moderates the effect of customer satisfaction on loyalty. The study implications and limitations are presented and future research directions are suggested.

Consumer Behavior in Emerging Markets

2018 ◽  
pp. 218-240 ◽  
Author(s):  
Raquel Castaño ◽  
David Flores
Keyword(s):  
Consumer Behavior ◽  
Emerging Markets ◽  
Emerging Market ◽  
High Income ◽  
Future Research ◽  
Psychological Processes ◽  
Developed Markets ◽  
Contextual Characteristics ◽  
Initial Framework

Emerging markets are substantially different from markets in high-income, industrialized societies. While many aspects of consumer behavior are the result of inherent psychological processes and are, thus, generalizable across countries and cultures, the specific contextual characteristics of emerging markets can significantly influence other aspects of consumer behavior. In this chapter, we explore the behavior of emerging market consumers. This chapter reviews the existing literature and proposes an initial framework delineating the main differences between emerging markets and developed markets consumers that describe how consumers in these societies recognize a need for, select, evaluate, buy, and use products. The chapter discusses the issues and contributions of the research on emerging consumers and presents implications of extant research for international managers. Finally, the chapter elaborates on an agenda for future research in this area.

Investments by Emerging-Market Multinationals in Other Emerging Markets

2018 ◽  
pp. 630-656
Author(s):  
Jing Li ◽  
Daniel Shapiro
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Emerging Economies ◽  
Multinational Enterprises ◽  
Emerging Market ◽  
Institutional Development ◽  
Spillover Effects ◽  
Investment Strategy ◽  
Future Research ◽  
Foreign Direct Investments

This chapter reviews the literature on foreign direct investments among emerging economies (E-E FDI), focusing on the motivations behind E-E FDI, country-specific advantages and firm-specific advantages associated with emerging-economy multinational enterprises (EMNEs), and spillover effects of E-E FDI on host-country economic and institutional development. We identify the following topics as posing important questions for future research: EMNEs’ ability to leverage home-government resources and diplomatic connections to promote investment in other emerging economies; nonmarket strategies of EMNEs in emerging economies; ownership and corporate governance affecting investment strategy and performance of EMNEs; E-E FDI contributions to sustainable development in host countries. Future studies should also consider potential heterogeneity among EMNEs by integrating insights from institutional theory, network theory, political science, corporate governance, corporate social responsibility, and sustainable-development research.

scholarly journals Pursuing Frugal Innovation for Sustainability at the Grassroots Level

2021 ◽  
pp. 1-8
Author(s):  
Mokter Hossain ◽  
Jarkko Levänen ◽  
Marleen Wierenga
Keyword(s):  
Developing Countries ◽  
Environmental Sustainability ◽  
Business Models ◽  
Business Strategies ◽  
Future Research ◽  
Frugal Innovation ◽  
New Business ◽  
Grassroots Level ◽  
Societal Problems ◽  
New Business Models

ABSTRACT Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level in India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.

Potential Impacts of Extreme Heat and Bushfires on Dementia

2021 ◽  
Vol 79 (3) ◽  
pp. 969-978
Author(s):  
Taya L. Farugia ◽  
Carla Cuni-Lopez ◽  
Anthony R. White
Keyword(s):  
Rural Communities ◽  
Natural Disasters ◽  
Low Socioeconomic Status ◽  
Forest Fires ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Extreme Heat ◽  
Indigenous Populations ◽  
Future Research ◽  
Diagnosis Of Dementia

Australia often experiences natural disasters and extreme weather conditions such as: flooding, sandstorms, heatwaves, and bushfires (also known as wildfires or forest fires). The proportion of the Australian population aged 65 years and over is increasing, alongside the severity and frequency of extreme weather conditions and natural disasters. Extreme heat can affect the entire population but particularly at the extremes of life, and patients with morbidities. Frequently identified as a vulnerable demographic in natural disasters, there is limited research on older adults and their capacity to deal with extreme heat and bushfires. There is a considerable amount of literature that suggests a significant association between mental disorders such as dementia, and increased vulnerability to extreme heat. The prevalence rate for dementia is estimated at 30%by age 85 years, but there has been limited research on the effects extreme heat and bushfires have on individuals living with dementia. This review explores the differential diagnosis of dementia, the Australian climate, and the potential impact Australia’s extreme heat and bushfires have on individuals from vulnerable communities including low socioeconomic status Indigenous and Non-Indigenous populations living with dementia, in both metropolitan and rural communities. Furthermore, we investigate possible prevention strategies and provide suggestions for future research on the topic of Australian bushfires and heatwaves and their impact on people living with dementia. This paper includes recommendations to ensure rural communities have access to appropriate support services, medical treatment, awareness, and information surrounding dementia.

Accounting for natural disasters from a historical perspective: A literature review and research agenda

2021 ◽  
Vol 26 (2) ◽  
pp. 179-204
Author(s):  
Massimo Sargiacomo ◽  
Stefania Servalli ◽  
Serena Potito ◽  
Antonio D’Andreamatteo ◽  
Antonio Gitto
Keyword(s):  
Natural Disasters ◽  
Economic History ◽  
Research Agenda ◽  
Historical Research ◽  
Future Research ◽  
Research Topics ◽  
Open Research ◽  
Emerging Themes ◽  
Published Research ◽  
Selection Of

This study offers an analysis of published historical research on accounting for natural disasters. Drawing on the insights provided by an examination of 35 accounting/business/economic history and generalist journals, 11 articles have been selected and analysed. The analysis conducted on the scattered literature identified the emerging themes, disasters investigated, periods of time explored and main contributions of published research. The analysis is extended by the examination of some key conferences of interdisciplinary history associations, and of the eventual journals/issues where the papers presented were published. The investigation has also been complemented by a brief selection of books showing historical analyses of diverse disasters, typologies and periods of investigation. The stimuli provided by the study have helped to portray the main features of an open research agenda, highlighting possible future research topics and suggesting ancient and recent disasters’ loci to be investigated worldwide.

scholarly journals The Impact of the Introduction of Uniform European Collective Action Clauses on European Government Bonds as a Regulatory Result of the European Sovereign Debt Crisis

2020 ◽  
Vol 14 (1) ◽  
pp. 1
Author(s):  
Nicoletta Layher ◽  
Eyden Samunderu
Keyword(s):  
European Union ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Sovereign Debt Crisis ◽  
The European Union ◽  
Bond Yields ◽  
Member States ◽  
Sovereign Bond ◽  
European Sovereign Debt Crisis ◽  
Collective Action Clauses

This paper conducts an empirical study on the inclusion of uniform European Collective Action Clauses (CACs) in sovereign bond contracts issued from member states of the European Union, introduced as a regulatory result of the European sovereign debt crisis. The study focuses on the reaction of sovereign bond yields from European Union member states with the inclusion of the new regulation in the European Union. A two-stage least squares regression analysis is adopted in order to determine the extent of impact effects of CACs on member states sovereign bond yields. Evidence is found that CACs in the European Union are priced on financial markets and that sovereign bond yields do respond to the inclusion of uniform CACs in the European Union.

scholarly journals Natural Disasters and Economic Growth: The Mitigating Role of Microfinance Institutions

2021 ◽  
Vol 13 (9) ◽  
pp. 5055
Author(s):  
John Sseruyange ◽  
Jeroen Klomp
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Legal Status ◽  
Agricultural Sector ◽  
Banking System ◽  
Fe Model ◽  
Microfinance Institutions ◽  
Natural Event ◽  
Negative Effect

In this study, we explore whether microfinance institutions (MFIs) can mitigate the adverse macroeconomic consequences of natural disasters. The provision of capital immediately following a natural event is recognized as one of the necessary conditions for a fast economic recovery. However, one concern is that a large majority of natural disasters occur in developing countries where households and the private sector have only limited access to the formal banking system. As an alternative, MFIs may fill up this gap in providing liquidity in the form of microcredit. The existing evidence on how MFIs respond to disaster effects is foremost based on case and micro-level evidence. In turn, the focus of this study is more on the macro impact of MFI activities after a natural disaster. Based on the finding obtained from an OLS-FE model using an unbalanced panel considering more than 80 developing countries and emerging economies, we can conclude that natural disasters harm macroeconomic performance primarily through their effect on the agricultural sector. However, access to lending facilities from MFIs mitigates a large part of this negative effect. Moreover, the extent to which MFIs are able to mitigate these effects depends to a great extent on their nature, i.e., their organizational structure, profitability, legal status, age, and the number of clients they serve.

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