The MNC as an externally embedded organization: An investigation of embeddedness overlap in local subsidiary networks

MNCs have been conceptualized as differentiated networks that, in turn, are embedded in external networks. Previous research has predominantly focused on the embeddedness of established subsidiaries into their local environment, omitting to shed light on the phenomenon of headquarters linkages to the local context which creates embeddedness overlap. We develop a model of why MNCs develop overlapping linkages to local subsidiary networks even if the subsidiaries have grown out of the initial start-up phase. Using detailed information on 168 European subsidiaries, we find that MNCs build and maintain more overlapping network ties when subsidiaries are high performers, hold important resources, operate in turbulent environments, and are closely connected to multinational actors as opposed to purely domestic firms.

Estágio profissional na administração local

Relatório de Estágio apresentado ao Instituto Superior de Contabilidade e Administração do Porto para a obtenção do Grau de Mestre em Auditoria Orientador: Professor Coordenador Rodrigo Mário Oliveira Carvalho

Shiva's dance: Crisis, local institutions and private firms

The uneven spatial distribution of start-ups and their respective survival may reflect comparative advantages resulting from the local institutional background. For the first time, we explore this idea using Data Envelopment Analysis (DEA) to assess the relative efficiency of Portuguese municipalities in this specific context. We depart from the related literature where expenditure is perceived as a desirable input by choosing a measure of fiscal responsibility and infrastructural variables in the first stage. Comparing results for 2006 and 2010, we find that mean performance decreased substantially 1) with the effects of the Global Financial Crisis, 2) as municipal population increases and 3) as financial independence decreases. A second stage is then performed employing a double-bootstrap procedure to evaluate how the regional context outside the control of local authorities (e.g. demographic characteristics and political preferences) impacts on efficiency.

Les processus additifs markoviens et leurs applications en finance mathématique

Cette thèse porte sur les questions d'évaluation et de couverture des options dans un modèle exponentiel-Lévy avec changements de régime. Un tel modèle est construit sur un processus additif markovien un peu comme le modèle de Black- Scholes est basé sur un mouvement Brownien. Du fait de l'existence de plusieurs sources d'aléa, nous sommes en présence d'un marché incomplet et ce fait rend inopérant les développements théoriques initiés par Black et Scholes et Merton dans le cadre d'un marché complet. Nous montrons dans cette thèse que l'utilisation de certains résultats de la théorie des processus additifs markoviens permet d'apporter des solutions aux problèmes d'évaluation et de couverture des options. Notamment, nous arrivons à caracté- riser la mesure martingale qui minimise l'entropie relative à la mesure de probabilit é historique ; aussi nous dérivons explicitement sous certaines conditions, le portefeuille optimal qui permet à un agent de minimiser localement le risque quadratique associé. Par ailleurs, dans une perspective plus pratique nous caract érisons le prix d'une option Européenne comme l'unique solution de viscosité d'un système d'équations intégro-di érentielles non-linéaires. Il s'agit là d'un premier pas pour la construction des schémas numériques pour approcher ledit prix.

A Case Study Of The Finance Of Selected Panchayats In Ernakulam District

The objectives of the present study are to inquire into the financial aspects of the selected Panchayats in Ernakulam district; , to analyse the income and expenditure pattern of selected and ‘District Panchayats'16 during 1969-70 through 1983-84; , to suggest the steps to be taken by the Panchayat for the proper utilisation of resources and for increasing the availability of resources; to suggest the additional sources of revenue for the Panchayats

Natural resource windfalls and efficiency of local government expenditures: evidence from Peru

We study the role of natural resource windfalls in explaining the efficiency of public expenditures. Using a rich dataset of expenditures and public good provision for 1,836 municipalities in Peru for period 2001-2010, we estimate a non-monotonic relationship between the efficiency of public good provision and the level of natural resource transfers. Local governments that were extremely favored by the boom of mineral prices were more efficient in using fiscal windfalls whereas those benefited with modest transfers were more inefficient. These results can be explained by the increase in political competition associated with the boom. However, the fact that increases in efficiency were related to reductions in public good provision casts doubts about the beneficial effects of political competition in promoting efficiency.

Can British multinational enterprises finance economic development in South East Asia?

Purpose – The purpose of this paper is to shed new light on the debate about the role of foreign direct investment (FDI) and public policy in fostering economic development. Specifically, can the capital inflow of multinational enterprises (MNEs) and the ability of the subsidiaries to raise funds locally help promote development? This paper addresses this issue by examining the capital structure and financing sources of foreign subsidiaries of MNEs. Design/methodology/approach – This paper integrates the capital structure theories in finance with internalization theory in international business. It uses an original primary dataset collected by a survey of 101 foreign subsidiaries of British MNEs in six emerging economies in the ASEAN region. Findings – There are three significant findings. First, these subsidiaries rely heavily on internal funds generated within the MNEs and less on external debts raised in the host countries. Second, the foreign subsidiary's capital structure is influenced by the home country of origin of the parent firm and the parent firm's financing sources. Third, these subsidiaries have used the financial resources to develop business networks with local small and medium enterprises (SMEs) which contribute to economic development of the host countries. Originality/value – This paper examines the internal capital market within the MNE. It provides theoretical and empirical support for the capital structure theory of the hierarchy financing approach and also for internalization theory by addressing FDI inflows by MNEs and the raising of funds locally. These findings have important implications for public policy, namely the facilitation of MNE entry to encourage economic development.

Application of sequential nonparametric confidence bands in finance

In a nonparametric setting, the functional form of the relationship between the response variable and the associated predictor variables is assumed to be unknown when data is fitted to the model. Non-parametric regression models can be used for the same types of applications such as estimation, prediction, calibration, and optimization that traditional regression models are used for. The main aim of nonparametric regression is to highlight an important structure in the data without any assumptions about the shape of an underlying regression function. Hence the nonparametric approach allows the data to speak for itself. Applications of sequential procedures to a nonparametric regression model at a given point are considered.

The primary goal of sequential analysis is to achieve a given accuracy by using the smallest possible sample sizes. These sequential procedures allow an experimenter to make decisions based on the smallest number of observations without compromising accuracy. In the nonparametric regression model with a random design based on independent and identically distributed pairs of observations (X ,Y ), where the regression function m(x) is given bym(x) = E(Y X = x), estimation of the Nadaraya-Watson kernel estimator (m (x)) NW and local linear kernel estimator (m (x)) LL for the curve m(x) is considered. In order to obtain asymptotic confidence intervals form(x), two stage sequential procedure is used under which some asymptotic properties of Nadaraya-Watson and local linear estimators have been obtained.

The proposed methodology is first tested with the help of simulated data from linear and nonlinear functions. Encouraged by the preliminary findings from simulation results, the proposed method is applied to estimate the nonparametric regression curve of CAPM.

Fiscal stringency and fiscal sustainability : panel evidence from the American state and local governments

Most state (and local) governments in the U.S. operate under formal fiscal rules which limit their ability to run budget deficits and resort to debt financing. A priori, one would expect to find evidence in favor of an intertemporally balanced budget, or fiscal sustainability, for these states, especially those characterized by a relatively high degree of fiscal stringency. We test this hypothesis for a panel of 47 state–local government units (1961–2006) using four budget balance definitions and several subsamples defined based on regional classifications, or presence of certain balanced budget requirements (BBRs). Our results, obtained from panel estimation techniques that allow for general forms of serial and cross-sectional dependence, suggest that a sufficient condition for “strong” sustainability is consistently satisfied for the full sample and all subsamples in relation to balances that include special funds and/or federal grants. However, we find evidence consistent with the “weak” version of sustainability for the full sample and some regional subsamples (particularly Far West dominated by California) in at least one of the two balances that exclude these items. Finally, the BBRs seem to matter only in relation to the sustainability of the more narrowly defined balances. We discuss the implications of these findings for the role of fiscal rules and federal grant policies.

Boom and bust in Australian screen policy: 10BA, the Film Finance Corporation, and Hollywood's 'race to the bottom'.

In recent years, a narrative has emerged in the Australian popular media about the box office 'unpopularity' of Australian feature films and the 'failure' of the domestic screen industry. This article explores the recent history of Australian screen policy with particular reference to the '10BA' tax incentive of the 1980s; the Film Finance Corporation of Australia (FFC), a government screen agency established in 1988 to bring investment bank-style portfolio management to Australia's screen industry; and local production incentive policies pursed by Australian state governments in a chase for Hollywood's runaway production.

We argue the 10BA incentive catalysed an unsustainable bubble in Australian production, while its policy successor, the FFC, fundamentally failed in its stated mission of 'commercial' screen financing (over its 20-year lifespan, the FFC invested 1.345 billion Australian dollars for 274.2 million Australian dollars recouped - a cumulative return of negative 80 percent). For their part, private investors in Australian films discovered that the screen production process involved high levels of risk.

Foreign-financed production also proved highly volatile, due to the vagaries of trade exposure, currency fluctuations and tax arbitrage. The result of these macro and micro-economic factors often structural and cross-border in nature was that Australia's screen industry failed to develop the local investment infrastructure required to finance a sustainable, non-subsidised local sector.

The experience of semi-formal infrastructure finance in developing countries: proposals for Brazil and Latin America

This paper has the purpose of analyzing the role of civil society in funding and providing nfrastructure projects in developing countries. Considering that local associations around the world have been directly engaged on some infrastructure projects – some scholars define it as “semi-formal finance” –, the intention is to demonstrate that the experiences on such arrangements in developing countries have been responsible for fostering infrastructure investments in the poorer regions where the government is more absent. Based upon legal, economic and social aspects, this paper aims to contribute to a broader debate for the development of infrastructure in emerging countries. The conclusion is that, under a more social approach, the legal and economic mechanisms in developing countries are able to consider such arrangements in the benefit of their development.

California's School Finance Reform: An Experiment in Fiscal Federalism

The 1971 ruling of the California Supreme Court in the case of Serrano v. Priest initiated a chain of events that abruptly ended local financing of public schools in California. In seven short years, California transformed its school finance system from a decentralized one in which local communities chose how much to spend on their schools to a centralized one in which the state legislature determines the expenditures of every school district. This paper begins by describing California's school finance system before Serrano and the transformation from local to state finance. It then delineates some consequences of that transformation and draws lessons from California's experience with school finance reform.