Investment protection clauses, and the investor-state dispute settlement mechanisms they enable, have become a common feature of international agreements on trade and investment. Intended to promote foreign investment, these protections may also discourage governments from regulating in the public interest. This raises challenging normative questions about the rights of investors and distributive justice. In this paper, I argue that a global investment regime that disadvantages developing countries and socially disadvantaged groups is prima facie unfair. This conclusion must be (...) defended against the claim that investors have certain independent moral rights to have their property protected, regardless of the distributive consequences. Granting the premise that such investor rights exist, I argue that these cannot plausibly ground a general rule against public interest regulation that undermines the value of property. I conclude that even if foreign investors have rights that must be safeguarded, the current investment regime must be reformed. (shrink)

The United States' failed effort to impose an East Asian-style, export-led industrial development regime on the Dominican Republic in the aftermath of the 1965 “Dominican crisis” poses two related empirical puzzles. First, why did the Dominicans reject the widely praised and ultimately rather successful East Asian model? And, second, how did the Dominicans overrule their erstwhile North American overlords? I answer the first question by underscoring the incompatibility of export-led industrialization and the island nation’s prevailing system of patrimonial rule. I (...) answer the second question by illuminating the patrimonial regime's “asymmetrical” desire for independence. And I thereby suggest that the social and political underpinnings of successful export-led industrialization are decidedly more restrictive than the mainstream social science literature would have us believe. (shrink)

The disclosure of corporate environmental performance is an increasingly important element of a firm’s ethical behavior. We analyze how the legal origin of foreign institutional investors affects a firm’s voluntary greenhouse gas emissions disclosure. Using a large sample of firms from 36 countries, we show that foreign institutional ownership from civil law countries improves the scope and quality of a firm’s greenhouse gas emissions reporting. This relation is robust to addressing endogeneity and selection biases. The effect is (...) more pronounced in firms from non-climate-sensitized countries, for which the gap between firms’ environmental standards and investors’ environmental targets is potentially larger, and in less international firms. Firms with a higher level of voluntary greenhouse gas emissions disclosure also exhibit higher valuations. (shrink)

Investor-state-dispute-settlement is an arbitration mechanism to settle disputes between foreign investors and host-states. Seemingly a technical issue in private international law, ISDS procedures have recently become a matter of public concern and the target of political resistance, due to the power they grant to foreign investors in matters of public policies in the countries they invest in. This article examines the practice of ISDS through the lenses of liberal-statist theories of international justice, which value self-determination. It (...) argues that the investor-state arbitration system illustrates how liberal-statist theories of international distributive justice ought to care about relative socioeconomic disadvantage, contra the sufficiency principle that they typically defend. The sufficiency principle draws on a questionable conception of the freedom that self-determination consists in. (shrink)

In this paper, we employ the unique qualified foreign institutional investors (QFII) scheme in China to investigate whether and how the different religious beliefs in the areas where foreign institutional shareholders from are associated with the corporate social responsibility (CSR) performance of domestic firms. After controlling for other determinants, we find robust evidence that firms with QFII investors from areas with stronger religious beliefs have better CSR performance than those that do not have these beliefs'. This (...) association is more pronounced when a QFII has a shorter holding period, has a relatively large ownership in the firm, or is a more committed investor in China. The above moderating results show that the stock preference may be a channel through which religious QFIIs affect firms’ CSR performance. Our paper contributes to the growing body of literature on CSR and on the effects of investors’ religious beliefs. It also offers useful guidance to listed companies, institutional investors, regulators, and other stakeholders. (shrink)

A large body of scholarship in political economy suggests economic growth, and foreign direct investment in regulated industries in particular, is more likely to occur when formal institutions allow states to provide credible commitments regarding the security of property rights. In contrast, this article argues that we must instead examine differences in firm organizational structure and embeddedness to explain variation in the resilience of privatization contracts in weak institutional environments. Domestic investors—or, if contracts are granted at the subnational (...) level, domestic investors with diverse local holdings—work most effectively in the developing world. Domestic investors are better able to negotiate mutually beneficial adaptations to their formal contracts with host governments because they can draw on informal contractual supports that derive from cross-sector diversification and embeddedness in the market. This article finds strong support for this argument through an analysis of fourteen water privatization contracts in Argentina. (shrink)

This research paper examines the foreign investment laws and procedure of Pakistan and their role in protection of foreign investment in Pakistan. These laws are untapped area of research and one cannot find any specific research tracing the legal development in this highly specialized field. So far Pakistan has 48 BITs enforced with different countries and has also signed ICSID Convention, which is promulgated locally through Arbitration Act, 2011 incorporating the Convention in the schedule to ease the difficulty (...) of foreign investors to enforce the awards rendered under auspices of ICSID in the territory of Pakistan. Under this research, an attempt has been made to study prevalent foreign investment laws and its trends in Pakistan. Though Pakistan has significantly improved its foreign investment regime by introducing new investor’s friendly laws like, Special Economic Zones Act, 2011 and Investment Policy, 2013 etc., apart from its previous legislation on the subject, yet this regime needs more improvement and updating. Extensive overview of all existing foreign investment laws were carried out in this research. Fair and Equitable Treatment, Expropriation and other factors affecting foreign investment laws are the areas, which need to be taken care of by policy maker in the existing foreign investment laws of Pakistan. With these aims, it is hoped that this research paper would be a humble contribution in the literature on the subject. (shrink)

This article examines the rise of foreign ownership in France and Germany. I argue that the firm-level institutional arrangements of workplace organization constitute the most significant variable to account for the greater attractiveness of French firms over their German counterparts to short-term, impatient capital—namely, hedge and mutual funds. I demonstrate how key notions of the Varieties of Capitalism perspective—institutional interaction, institutional latency, and the distinction between institutional framework and the mode of coordination that follows from these institutions—provide important theoretical (...) insights to account for the different structures of foreign ownership in France and Germany. (shrink)

This study examines the role of foreign institutional ownership in corporate social responsibility (CSR). Using the Shanghai-Hong Kong Stock Connect as a quasi-natural experiment, our difference-in-differences estimation shows that foreign institutional ownership drives firms’ CSR corporate social responsibility. Further, the positive effect of foreign institutional ownership on CSR is motivated by foreign institutional investors shifting the stakeholders’ logics about social responsibility, not by profit maximization. We also provide evidence that this effect of foreign institutional (...) ownership on CSR is more pronounced among firms with fewer political connections and with non-overconfident CEOs. Overall, our results indicate that foreign institutional investors transmit social norms and shift stakeholders’ logics regarding social responsibility and, in turn, propel firms to improve CSR to satisfy their stakeholders’ expectations. (shrink)

In an effort to reduce risk and uncertainty, we hypothesize that investors avoid countries where high corruption exists. We investigate this issue by examining the relationship of levels of perceived corruption on Japanese Foreign Direct Investment (FDI) in both industrialized and emerging economies. The analysis presented utilizes a sample of 29,546 investments in 59 countries. Results suggest that in emerging nations, where comprehensive legal and regulatory frameworks do not exist to effectively curtail fraudulent activity, corruption serves to reduce (...) FDI. Managers need to consider the level of perceived corruption in their assessment of any market prior to potential investment. (shrink)

Using data on shareholder-initiated class action lawsuits in the US, I investigate the corporate scandals of US-listed foreign firms. The shareholders of scandal firms suffer considerable loss in both the short term and the long term. I document that firms domiciled in countries with weak institutions are more likely to be embroiled in corporate scandals, but such a relation can be moderated by the presence of Big 4 auditors. Investors automatically adjust for undiscovered misconduct when valuing the stocks (...) of non-scandal firms. Investors rely on the audit quality to form their expectations about the severity of undiscovered misconduct, and thus impose less negative spillovers on firms with Big 4 auditors, especially when the firms are from countries with weak institutions. Taken together, my results suggest that listing on US exchanges does not fully compensate for weak local institutions; voluntarily bonding to a more stringent audit process has an incremental effect on protecting shareholder interests and enhances the confidence of investors in firms’ financial integrity. (shrink)

Sports officials, players, and fans are concerned about overseas player rankings for the IPL auction. These rankings are becoming progressively essential to investors when premium leagues are commercialized. The decision-makers of the Indian Premier League choose cricketers based on their own experience in sports and based on performance statistics on several criteria. This paper presents a scientific way to rank the players. Our research examines and contrasts different multicriteria decision-making algorithms for ranking foreign players under various criteria to (...) assess their performance and efficiency. The paper uses three MCDM algorithms, TOPSIS, TODIM, and NR-TOPSIS, for foreign players ranking in the Indian Premier League. Our analysis is limited to the batsmen and bowlers only. We perform the analysis using Python language, a popular high-level programming language. Finally, we perform a sensitivity analysis to determine the stability of each method when the weights of the criterion or the value of a parameter was changed. Our analysis exhibits the superiority of TODIM over TOPSIS and NR-TOPSIS. (shrink)

The legal regime regulating cross-border investment gives key rights to foreign investors and places significant duties on states hosting that investment. It also raises distinctive moral questions due to its potential to constrain a state’s ability to manage its economy and protect its people. Yet international investment law remains virtually untouched as a subject of philosophical inquiry. The questions of international political morality surrounding investment rules can be mapped through the lens of two critiques of the law – (...) that it systemically takes advantage of the global South and that it constrains the policy choices of states hosting investment. Each critique contains certain moral and empirical assumptions that deserve further attention. The distributive justice implications of international investment rules are also relevant to scholars of global distributive justice. The aim of the analysis is to develop an interdisciplinary agenda – among law, philosophy, and social science – for inquiry into the justice of investment law and reform of its unjust elements. (shrink)

From Syrian asylum seekers to super-rich foreign investors, immigration is one of the most controversial issues facing Britain today. Politicians kick the subject from one election to the next with energetic but ineffectual promises to ‘crack down’, while newspaper editors plaster it across front pages. -/- But few know the truth behind the headlines; indeed, the almost daily changes to our complex immigration laws pile up so quickly that even the officials in charge struggle to keep up. -/- (...) In this clear, concise guide, Thom Brooks, one of the UK’s leading experts on British citizenship – and a newly initiated British citizen himself – deftly navigates the perennially thorny path, exploding myths and exposing absurdities along the way. Ranging from how to test for ‘Britishness’ to how to tackle EU ‘free movement’, Becoming British explores how UK immigration really works – and sparks a long-overdue debate about how it should work. -/- Combining expert analysis with a blistering critique of the failings of successive governments, this is the definitive guide to one of the most hotly disputed issues in the UK today. Wherever you stand on the immigration debate, Brooks’s wryly observed account is the essential roadmap. (shrink)

During the last two decades, the intra-industry trade between western companies and former socialist enterprises in Central and Eastern Europe gradually shifted from the subcontracting of marginal operations such as final assembly to the outsourcing of products and intermediate inputs. To further enhance their competitiveness, firms in Central and Eastern Europe have yet to take one more step forward: integrate services with manufacturing. Developing such capabilities hinges, aside from intensive training and learning on the existence of functional interactive knowledgebased innovation (...) systems. Whereas Central and East European economies exhibit conspicuous weaknesses in this last respect, they still possess a countervailing advantage that is apt to lure foreign investors into the region: lower wage rates relative to western countries across all industries and skill levels. Offshoring therefore seems to be the most appropriate means to reconcile the two sides of the coin. (shrink)

This study examines how the corporate philanthropy decisions of group-affiliated firms in Korea are made. Based on the attention-based view, we argue that when corporate decision makers at group-affiliated firms focus their attention more on internal markets than external stakeholders because of the firm’s high reliance on intragroup transactions, the firm will decrease its level of corporate philanthropy. We further argue that the relationship will be stronger when governance mechanisms focus on the instrumental value of corporate philanthropy. Using a panel (...) sample of group-affiliated firms in Korea from 2011 to 2015, we find that as intragroup sales increase, the level of corporate philanthropy decreases, and such a negative relationship is stronger when outside director representation and foreign investor ownership are high. Our study suggests that internal dependence and corporate governance mechanisms jointly affect the level of corporate philanthropy at firms in a business group. Thus, this study contributes to the literature on corporate philanthropy, business group, and corporate governance. (shrink)

This chapter reviews Europe's contributions to basic assumptions made in international law and governance. It examines the internal legal models that Europe created and that became foundational blueprints for modern liberal democracies. The chapter also focuses on international legal structures that were designed to operate in a manner consistent with the domestic European model e.g., liberalization of trade, legal protections for foreign investors, or uniform codes of commercial law for international transactions. The post‐Second World War regulation of commerce (...) and livelihood in the European statecraft model came hand‐in‐hand with the protection of personal rights. The modern liberal democratic state derived its legitimacy from management of a social and political structure that bettered the material lot of its nationals. The historical process of formation of the European nation‐states’ geographical map created blocs that had clear boundaries associated with national identity. (shrink)

Recent scandals such as those involving Enron and WorldCom (USA), Nortel and Crocus (Canada), and Parmalat and Royal Ahold (EU) exposed failures in corporate governance that shook the capital markets in developed countries and put the spotlight on weak corporate governance in developing, emerging and transitional economies. Companies from developing economies with weak financial transparency and governance will find it difficult to raise capital and attract foreign investors. We investigate the challenges and evaluate the progress of corporate governance (...) in Egypt. Using historical, empirical and interview data, we review the development of stock markets and accounting and financial reporting standards. We analyse the structure of capital markets, major players in the economy, the privatisation policy, board structure and the cultural and legal environment of corporate governance. We review initiatives and impediments for improving corporate governance, including the establishment of the Egyptian Institute of Directors. The implications of this study are important for Egypt, developing countries and global investors seeking international diversification. (shrink)

In rural Cambodia the rampant allocation of state land to political elites and foreign investors in the form of “Economic Land Concessions (ELCs)”—estimated to cover an area equivalent to more than 50 % of the country’s arable land—has been associated with encroachment on farmland, community forests and indigenous territories and has contributed to a rapid increase of rural landlessness. By contrast, less than 7,000 ha of land have been allotted to land-poor and landless farmers under the pilot project (...) for “Social Land Concessions (SLCs)” supported by various donor agencies. Drawing on fieldwork conducted in two research sites in Kratie Province, this article sheds light on the mechanisms and discourses surrounding the allocation of ELCs and SLCs. Our findings suggest that large-scale and non-transparent land leases in the form of ELCs are discursively justified as land policy measures supporting national development, creating employment opportunities in rural areas, and restoring “degraded” and “non-use” land, while SLCs are presented by the government and its international donors as a complementary policy to reduce landlessness, alleviate rural poverty, and ensure a more equitable land distribution. We argue that the SLC pilot project is a deliberate strategy deployed by the Cambodian ruling elite to instrumentalize international aid agencies in formalizing displacement and distributional injustices, in smoothing the adverse social impacts of their very own land policies and in minimizing resistance by dispossessed rural people. (shrink)

Using food regime analysis, this paper critically analyzes how corporate actors amass, secure and apply power in the global agrifood system through International Investment Agreements (IIAs). IIAs are a key enabler of increasing corporate power in the agrifood system. We focus on three sets of investment provisions in IIAs: (a) the stringent enforceability mechanism of the investor-state dispute settlement (ISDS) system, (b) the expansion of the concept of expropriation, and (c) limitations or prohibitions on host countries to impose performance requirements (...) on foreign investors. We argue that these provisions compromise fairness in the international economic system. Attracted by promises of technology transfer, economic growth and employment, host states often prioritize policies that favor foreign investors even if such policies compromise domestic policy space. We provide analysis and examples of escalating corporate power at different stages of the industrial and transgenic model of agriculture. (shrink)

How is legitimacy to be secured for constitution-like legal orders operating beyond the state? Some scholars recommend connecting aspects of global law to human rights adjudication and enforcement by adopting their preferred method for resolving conflicts, namely, proportionality analysis. Adopting a frame of analysis widely embraced by apex courts might generate the requisite regime legitimacy, it is argued. This turns out to be a strategy that is difficult to pursue in the realm of international investment law, a global legal order (...) made up of over 3,300 investment and regional treaties, enforced by private systems of dispute resolution, that incorporates standards of treatment familiar to national constitutional law. By undertaking an analysis of statements made by relevant actors in the field, principally investment lawyers and arbitrators, we learn that there is not that much interest in taking up proportionality analysis, despite the legitimacy problems that continue to dog the system. Whatever the purported advantages of turning to proportionality, it turns out that investment lawyers and arbitrators are not so interested in embracing logics other than one preoccupied with owing solicitude to foreign investors. This reluctance renders investment law a less legitimate, and therefore less sustainable, form of constitution-like global law. (shrink)

Philosophers, on the theoretical level, as well as foreign investors and business executives, on the practical level, can no longer avoid dealing with the moral reasoning and ethical dilemmas associated with guanxi. Accordingly, this paper attempts to discuss guanxi as one of the most challenging ethical issues facing foreign firms in China today. While guanxi is a cultural value acceptable in the Chinese market, its abuse can lead to unethical practices,such as dishonesty, bribery, and big-time corruption. Based (...) on the methodology of applying critical reviews and meta-analysis of selected Asian studies published between 1999 and 2005, the author’s intent is to clarify issues surrounding guanxi using its potential abuse and ethico-moral consequences as points of departure in pursuing a discussion on global ethics. (shrink)

Relatively little research has examined the effects of ownership on the firms’ corporate social responsibility (CSR). In addition, most of it has been conducted in the Western context such as the U.S. and Europe. Using a sample of 118 large Korean firms, we hypothesize that different types of shareholders will have distinct motivations toward the firm’s CSR engagement. We break down ownership into different groups of shareholders: institutional, managerial, and foreign ownerships. Results indicate a significant, positive relationship between CSR (...) ratings and ownership by institutions and foreign investors. In contrast, shareholding by top managers is negatively associated with firm’s CSR rating while outside director ownership is not significant. We conclude that different owners have differential impacts on the firm’s CSR engagement. (shrink)

Post-conflict economies often prove daunting for foreign investors. Many of these nations are reaching out to diasporans, emigrants, and their descendants living abroad, for much-needed foreign investment capital. Little is known about why diasporans invest in their countries of origin. Recent scholarly inquiry regarding investment decision making has suggested that non-pecuniary, psychological concerns often motivate investment decisions. We develop a conceptual model identifying three types of investment return expectations — financial, emotional, and those related to social status (...) — that may drive diaspora investment interest. We contend that the psychological realities and social-status structure of the diaspora experience generate greater salience for non-pecuniary investment motivations, particularly when the origin country emerges from a period of conflict. We outline an agenda for future research and discuss the implications of our model for policies seeking to promote peace utilizing diaspora investment. (shrink)

This Article discusses the impact of the international financial crisis on Brazilian capital markets. While the banking industry was not severely affected, leading nonfinancial corporations experienced severe financial turmoil. Two Brazilian corporations cross-listed in the United States - Sadia S.A. and Aracruz Celulose S.A. - suffered billion-dollar losses when the Brazilian real unexpectedly plummeted in relation to the dollar. Despite earlier disclosure that these companies had engaged only in pure hedging activity, these great losses were found to be the result (...) of their highly speculative trading in currencyderivatives. Consequently, several private lawsuits were filed both in the United States and in Brazil. This Article takes a novel approach to the transnational securities litigation debate by examining the particular consequences of private litigation in a developed and in an emerging country. It compares the types of lawsuits filed and their final outcomes. Despite substantially similar alleged wrongdoing, the outcomes for securities holders in each jurisdiction contrast strikingly. Only U.S. investors of both companies were able to obtain substantial financial recoveries; Brazilian investors obtained none. This Article examines the reasons behind these discrepant results and the consequent economic distributional effects on global securities markets after the U.S. Supreme Court decision in Morrison. The Article argues that Morrison aggravates such shareholder cross-border non pro rata compensation and transfers of company value from foreign to U.S. investors. It identifies a set of costs borne by foreign investors, and so far neglected by scholars, as a consequence of the current status of U.S. and international securities law regimes. These costs are the result not only of the typical “circularity problem” in securities litigation, but also of a “double circularity problem” as they fall on foreign shareholders who also suffered equivalent damages to those experienced by the U.S. class being compensated. The Article then discusses potential policy reforms for fixing transnational securities litigation. (shrink)

The recent phenomenon of land grabbing—that is, the large-scale acquisition of private land rights by foreign investors—is an effect of increasing global demand for farmland, resources, and development opportunities. In 2008–2010 alone, land grabs covered approximately 56 million hectares of land, dispossessing and displacing inhabitants. This article proposes a philosophical framework for evaluating land grabbing as a practice of territorial alienation, whereby the private purchase of land can, under certain conditions, lead to a de facto alienation of territorial (...) sovereignty. If land grabs alienate territorial sovereignty, it follows that inhabitants can claim a violation of the people’s right to “permanent sovereignty over natural resources.” However, because sovereignty is entangled in the historical and contemporary causes of land dispossession, I cast doubt on this strategy. Territorially sovereign regimes often undermine democratic land governance by obstructing participation in activities such as zoning, land use, property regulation, and environmental stewardship. These activities, which I theorize as practices of “world-building,” are key to democracy because they give occupants a say in the shape of their common home. The perplexities of sovereignty in matters of land governance suggest that establishing democratic participation in rule over land requires fracturing sovereignty. (shrink)

Constructive engagement in international business practice is defined as purpose-driven behavior in which economic contributions by the foreign investor also advance social progress in the host country. This paper distinguishes between amoral and moral social agency, and proposes a model of principled constructive engagement that describes a principled constructive engagement regime enacted in a disciplined, morally-directed manner.

Under what conditions would authoritarian rulers be interested in the rule of law? What type of rule of law exists in authoritarian regimes? How do authoritarian rulers promote the rule of law without threatening their grip on power? Tying the Autocrat's Hands answers these questions by examining legal reforms in China. Yuhua Wang develops a demand-side theory arguing that authoritarian rulers will respect the rule of law when they need the cooperation of organized interest groups that control valuable and mobile (...) assets but are not politically connected. He also defines the rule of law that exists in authoritarian regimes as a partial form of the rule of law, in which judicial fairness is respected in the commercial realm but not in the political realm. Tying the Autocrat's Hands demonstrates that the rule of law is better enforced in regions with a large number of foreign investors but less so in regions heavily invested in by Chinese investors. (shrink)

Development is a process of achieving a right balance between economic growth and psychic income growth. A foreign investor’s manner of conducting business in a country could result in any of four scenarios in which economic/psychic income is low/inadequate, high/inadequate, low/adequate, or high/adequate. Foreign investment will contribute to development only if it reflects the fourth scenario. A responsible corporation can contribute to money income and more importantly to psychic income of a company’s workers. This paper examines the corporate (...) responsibility performance of Indian and Chinese investments in Zambia’s mining sector. The paper finds that while Chinese companies seem to be operating close to the first scenario, Indian companies are operatingbetween the first and fourth. Thus, neither of them is contributing to true development. (shrink)

Globally, corporate social responsibility (CSR) needs to find its sustainable development via the recognition of tangible benefits that CSR will bring to organizations and their stakeholders. The less tangible but likely most important benefit lies in the continual improved leadership and management quality emerging from organizations investing in CSR. Companies’ failure to act in a CSR way and the lack of wise leadership and quality management is a dominant root factor in the past scandals and financial crisis. Looking at current (...) interactions between Chinese companies and their various influencing environmental, society and government (ESG) factors, many of the motivational drivers for Western companies to invest in CSR are today still being challenged here based on China’s market specifics. More rapid development of the regulatory framework with adequate enforcement resources, as well as incorporation of CSR “value” education at universities can accelerate this needed development. In the short term, foreign companies as “guests” of China should also be a catalyst as role models. Apart from a foreign investor’s actions, it is equally important to acknowledge and address local China challenges remaining to provide the right climate for a foreign company’s CSR programs to be successfully executed here. The world is at a cross roads of a new value-based leadership paradigm. With global interdependence accelerating and hence, management and leadership complexity expanding, there is a need for a new leadership model, bringing “common wisdom” more pronounced to the forefront, arising from a renewed focus and strengthening of an aligned set of values between family, society, and corporate life. China’s unique demographic challenges and economic progress provide a fertile environment to lead the world in this development. (shrink)

There are various notions of capital, but in this article movement of capital is being analysed from the perspective of international investment law – a country has an asset, which it cannot exploit or do so efficiently and there is a foreigner who possesses financing, technology or know-how, which allows to develop such asset. Lithuania is a net importer of capital, thus this article analyses on what might be the asset that Lithuanian government is interested in developing through foreign (...) investment and why Lithuania does not develop such asset through other means, i.e. borrowing. As China is one the biggest capital exporters and becomes one of the biggest outward investors, this article also analyses driving factors behind such increase of outward investment from China – the Going Out policy and various instruments used by China to encourage such policy. Finally, the article analyses the possible underlying reasons Chinese company CAMCE has in Kaunas free economic zone and what such interest means under international investment law. (shrink)

Corporate social responsibility (CSR) is becoming increasingly important in China. This paper investigates the implementation of instruments for dimensions of CSR that are relevant for the Chinese context and the challenges that Chinese companies face. Based on a survey among 109 Chinese companies, we find that formal instruments to implement CSR are rather common. Companies spend most effort in improving the economic aspects of CSR, such as competitiveness, product innovation and process innovation. Only a small minority of the companies set (...) concrete targets and report the realization of these targets for social and environmental goals. This indicates that the attention to social and environmental aspects of CSR is still rather loose. The most important challenges for improving CSR are strong competitive pressure, insufficient support from the government and/or nongovernmental organizations and high costs of CSR implementation. Multiple regression analysis shows that the use of instruments is positively related to company size and foreign ownership and negatively related to lack of resources and support for CSR by investors and consumers. (shrink)

Banks face a dilemma in choosing between maximising profits and facilitating the sustainable use of resources within a carbon-constrained future. This study provides empirical evidence on this dilemma, investigating whether a bank loan announcement for a firm with high carbon risk conveys information to investors about the firm’s carbon risk exposure collected through a bank’s pre-loan screening and ongoing monitoring. We use a sample of 120 bank loan announcements for ASX-listed firms over the period 2009–2015. We measure high carbon (...) risk exposure based on whether firms meet the reporting threshold of the NGER scheme. We document positive and significant excess loan announcement returns for loan renewals for high carbon risk firms, but not for loan initiations. Further, we document a more significant loan announcement return for renewals with favourable term revisions. Finally, we find no evidence that the market differentiates between domestic and foreign lenders. Taken together, our results suggest that investors perceive that banks incorporate carbon risk considerations into their lending decisions. Our results highlight the value of banks as financial intermediaries given the information asymmetry surrounding firms’ carbon risk exposure, and more generally the need to extend modern banking theory to consider issues such as the impact of banks’ CSR reputation on lending decisions. (shrink)

This paper is intended to investigate the role of Venture-Capital Syndication background in the relationship between intellectual capital and portfolio firm performance ; specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected from VCS-backed and listed firms in China (...) during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments to reduce endogeneity and unobserved factor control, and also return on equity instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS. (shrink)

As populations grow and arable land becomes increasingly scarce, large-scale long- term land leases are signed at a growing rate. Countries and investors with large amounts of financial resources and a strong agricultural industry seek long-term land leases for agricultural exploitation or investment purposes. Leaders of financially poorer countries often advertise such deals as a fast way to attract foreign capital. Much has been said about the short-term social costs these types of leases involve, however, less has been (...) said about the normative dimension of their long-term environmental impact. We therefore will focus on the likely impact such deals have for soil conservation, by (1) briefly introducing the basics of long-term leasing arrangements by comparing land leases to the renting of buildings, (2) explaining from a soil sciences perspective the difficulties in assessing the current value of an estate and in calculating the damages of soil erosion and degradation, and (3) show how difficult it is to incentivize the conservation of soil quality when one cannot sufficiently and cost-effectively valorize existing environmental capital and eventual future damages. Attempting to oblige tenants through contracts to invest in sustainable stewardship has limited potential when liability payments do not reflect true costs and are hard to enforce. (shrink)

This article looks at how imaginaries of land and climate play a role in farmland investment discourses and practices. Foreign farmland investors in the fertile black earth region of Russia and Ukraine have ‘celebrated’ soil fertility while largely ignoring climatic factors. The article shows a centuries-long history of outsiders coming to the region lured by the fertile soils, while grossly underestimating climate which has had disastrous implications for farm viability and the environment. Comparisons with historical and contemporary literature (...) on other regions suggest that the underestimation of climatic risks by newcomers is remarkably prevalent in resource frontiers. (shrink)

The company's profit and profitability are one of the most important criteria for assessing the enterprise performance. According to the achieved results of profit and profitability, it is being judged what benefits may receive different interest groups of the company - owners, employees, investors and creditors. All business enterprises are concerned to increase the profitability. The article analyses the theoretical aspects of profit and profitability assessment. The analysis of scientific literature of foreign and Lithuanian authors suggests that the (...) company's profitability analysis helps to determine the financial aspects of the company's financial performance, to assess the current situation in order to make appropriate management decisions. The company's profit and profitability are one of the most important criteria for assessing the enterprise performance. According to the achieved results of profit and profitability, it is being judged what benefits may receive different interest groups of the company - owners, employees, investors and creditors. All business enterprises are concerned to increase the profitability. The article analyses the theoretical aspects of profit and profitability assessmentWhile assessing company’s activity efficiency in various aspects, its competitiveness and growth possibilities, it is not enough to analyse absolute profit indices and based on them to take particular decisions, because an absolute profit index does not reflect company’s real financial situation. More comprehensive information is obtained by calculating relative profitability indices and comparing them with profitability. Besides, profitability indices in a structured form provide to company’s managers the most important and most precise information in form of indicators based on which there is a possibility to assess company’s financial situation and to forecast company’s future financial situation, foresee activity’s success and failures. Therefore, even a profitable company needs a constant analysis of these indices, their dynamics, affecting factors, because due to affecting factors the company’s managers can assess and forecast profitability indices. In search for the ways how to increase a profit and profitability indices, it is very relevant for the company’s managers to assess introduction of new services to a market, because new implemented services reach a success, the company’s managers can take decisions, determining dynamics of development of profitability indices, and direct company’s management towards profitable direction.The article analyses the theoretical aspects of profit and profitability assessment. The analysis of scientific literature of foreign and Lithuanian authors suggests that the company's profitability analysis helps to determine the financial aspects of the company's financial performance, to assess the current situation in order to make appropriate management decisions. (shrink)

Jordan agreed to extensive liberalization undertakings under the General Agreement on Trade in Services (“GATS”) that would open some sectors that were previously closed or restricted to foreign suppliers and investors. It undertook horizontal commitments in cross-border movement of individuals and commercial presence covering all types of services.

ArgumentIt seems theoretically convenient to construe knowledge practices in financial markets and organizations as “applied economics.” Alternatively or additionally, one might argue that practitioners draw on economic knowledge in order to systematically orient their actions towards profit-maximization; models, then, are understood as devices that make calculative rationality possible. However, empirical studies do not entirely confirm these theoretical positions: Practitioners’ actual calculations are often not “framed” by models; organizations and institutions influence the choice and adoption of models; and different professional groups (...) in financial markets have diverging attitudes towards model calculations. In order to account for this diversity, this article proposes the concept ofcultures of economic and financial expertise; the concept focuses on the patterns of knowledge practices and knowledge-related self-definitions of groups within financial organizations and markets; it also facilitates an analysis of the relations between and, more specifically, the hierarchies among different practices and identities. The article then goes on to explore the process of foreign exchange forecasting in a particular bank. The description immediately reveals that two groups are involved in this process: economists and analysts. These groups maintain quite different practices and self-descriptions in relation to models: While the economists in the bank use the models as organizational resources for consistent forecasting procedures and observe data with the help of simple model structures, analysts approach model forecasts from the perspective of critics: They see limits in the variable-centered, as opposed to a “thematic” approach and they disregard a model's imposed temporality. Nevertheless, analysts use model forecasts as anchors for developing their own “paths” and stories about possible future expectation changes in the markets. The specific division of labor between economists and analysts, and specifically the dominant role of analysts in the forecasting process, fit into a larger picture: The rise of institutional investors in the foreign exchange markets and their demand for genuine market knowledge for speculative investment projects has contributed to the rise and dominance of analysts’ culture. (shrink)

To examine how different ownership structures, varying from diverse ownership bases to narrow ownership bases, influence the extent of corporate social responsibility (CSR) reporting by companies in emerging market. The motivation for this study is the reported inconsistent results for this association in developing countries and the lack of research in emerging markets. Eight hundred observations of 80 nonfinancial sector listed companies in the Amman Stock Exchange for the period 2006 to 2015 were used for a content analysis to assess (...) the extent of CSR reporting. Ordinary least square multiple regression analysis was undertaken to examine the association between five different ownership structures and their extent of CSR reporting. The results reveal three separate associations between the types of ownership and the extent of CSR reporting. First, the two types of ownership (foreign and government) have a significant and positive influence on the extent of CSR reporting. Second, another two types of ownership (Family and managerial) have a significantly negative association. Finally, institutional ownership has an insignificant and negligible influence on the extent of CSR reporting. These findings provide insights into how ownership structure influences the CSR reporting extent by emerging market companies such as Jordan. These findings suggest that policy makers, regulatory bodies, companies, and investors should increase their awareness about how different concentration of company ownership influences the extent companies voluntarily disclose CSR reporting. The evidence adds to the limited body of knowledge about different ownership groups' influence on the extent of CSR reporting in a developing country because few empirical studies have undertaken such a comprehensive analysis of this association. (shrink)

Delaware’s famous corporate law and its highly respected specialized Court of Chancery attract entrepreneurs from all over the world, who choose the small state as their locus of incorporation and litigation forum, and global investors who choose Delaware law as the law governing their corporate investments and mergers and acquisitions. Other jurisdictions vie with Delaware in regard to these choices. This interjurisdictional competition makes Delaware a significant global norm exporter in the field of corporate law because jurisdictions emulate some (...) of its corporate law. Israel leads the global pack. For two decades, it has been approximating its corporate law to Delaware’s and emulating its principal institutions, including by establishing a specialized Chancery-like court whose judges seek guidance in Delaware’s case law in deciding open corporate law questions. This Article employs qualitative methods—interviews with M&A practitioners from the United States, the United Kingdom, and Israel. We use the interviews to assess whether the project of approximating Delaware corporate law has succeeded in shifting incorporation decision preferences away from Delaware to Israel and watering down the natural reluctance of global investors to accepting an unfamiliar corporate law when engaging in cross-border corporate M&A transactions involving an Israeli party. Our findings indicate that the approximation project has countervailing effects, opinions about its success being polarized and nuanced; that approximation increases the familiarity of domestic practitioners with the foreign law being emulated, making the emulated law easier to implement; and that approximation creates more room for other aspects of interjurisdictional competition to influence private choices. (shrink)

As globalized corporations are traded intemationally, with investors and workers from many countries, nation-states have diminishing interest in fighting wars promoting competitive profit interests of intemational companies. Theoretically, this trend could prompt diminution in the role of warfare. Militarism continues to serve corporations that are globally owned, operated, and controlled, fought by the very workers who then must compete against the resulting unregulated and often cormpt intemational labor and resource markets—driving down the real wages of domestic and foreign (...) workers. But if philosophical attitudes eventually catch up with the new thinking about wars that are fought in the context of such complete globalization of labor and resource markets, it seems inevitable that voters will understand that the interests of the people within nation-states no longer coincide with any one global corporation any more than with any other—reducing incentives to sacrifice national blood and treasure defending the interests of nationless entities. (shrink)

This study investigates the conditions under which host country portfolios are more likely to regularize corporate tax behavior. We use a sample comprising data on Japanese multinationals covering 2004 to 2014 to examine the relationship between foreign direct investment host country portfolios and tax avoidance from the perspectives of investor protection and ethical standards. Our multivariate regression results show that the number of countries with strong investor protection/high ethical standards in the FDI host country portfolio is negatively related to (...) tax avoidance. We also find that the effect of investor protection/ethical standards is less pronounced when the degree of indulgence is high. Further analyses show that the relationships we find are affected by disclosure requirements, local regulations, and accounting standards. These findings remain unchanged after several sensitivity checks. Overall, this study contributes to the business ethics literature by showing that FDI host country investor protection and ethical standards are external monitoring mechanisms for mitigating tax avoidance by multinationals. (shrink)

The article presents the results of a study of the interaction between the public and private sectors in the field of outer space exploration. The purpose of the study was to identify the peculiarities of interaction between public authorities and private companies involved in space activities. It has been established that all leading space powers create favorable conditions for attracting private companies to space exploration. The main areas of space activity that are most attractive for private investment are identified: 1) (...) production, launch and operation of spacecraft and launch vehicles; 2)production and operation of ground equipment; 3) space research; 4) satellite observation of the Earth; 5) TV and radio broadcasting and lease of repeaters; 6) satellite internet; 7) mining in space; 8) space tourism; 9) space waste management; 10) cargo delivery to Earth orbit, etc. The current state of the space industry in Ukraine is determined. The main obstacles to space commercialization in Ukraine are also highlighted: 1) legal regulation lags far behind and does not meet the needs of space activities in Ukraine; 2) international agreements are not in line with the level of national regulation of advanced countries and new global trends; 3) Ukraine’s space industry is focused mainly on less profitable areas of the space economy, which reduces the attractiveness for private investors; 4) there is no clear distinction between national interests and commercial activities in space; 5) mechanisms for coordinating private, state and public interests in the context of space commercialization are either absent or extremely ineffective; 6) there are no effective mechanisms for attracting foreign capital to space exploration. The authors identify two main competitive models of the interplay between the public and private sectors in space exploration: “American” and “European.” It is emphasized that both models can serve as a model for the space policy implementation in Ukraine. However, given a number of considerations, it is determined that the “European” model is more optimal. (shrink)

Goal of this article is to study the system application directions of marketing tools and technologies to improve the competitiveness of the region and regional markets in the changing conditions of the environment. It is noted that the theory and practice of marketing in the modern territorial administration considers it as a key factor of competitiveness, which will help to keep existing residents and attract expensive, educated, skilled workforceand form comfortable conditions for the operation of existing businesses and develop programs (...) of attractiveness for investors and new entrepreneurs, to develop a unique tourism product focused on the re-visiting etc. It was considered the role of regional marketing definitions of national and foreign scientists. The attention is focused to the fact that despite the growth of attention of theorists and practitioners to territorial management technologies and marketing tools, many questions remain in terms of adapting to the needs of different territorial levels. The main problems associated with the direct transfer of technology of the corporate sector in management system and life activity of regions and cities. Stated that competitiveness as the object marketing impact should be considered within the classical concept of territorial marketing, according to which the bodies of local authorities should seek to identify current and future needs of target segments and play them in goods and services area better than do competitors. The classical concept, along with other modern concepts of territorial marketing gives to marketing a kind of integrator partnership of territorial authorities and target audiences. Were described the main subjects marketing in the region, discussed their role in enhancing the competitiveness of the regional markets systems on condition of the realization of their own interests and considered. It is noted that the main task of marketing should be increasing the attractiveness of its territory - complex of resources conditions, relationships, objects that allow in the market conditions to reorient themselves to the flow of resources, which will compete with other regions. Marketing territories allows to clearly understand that successful economic and social development should be to re-evaluate the area and conditions for the operation and development of the territory. It was established that today is activated the use of marketing approach in the local administration, but there is no systematic use of all marketing tools when forming strategies of Ukrainian cities and regions the use of limited marketing application of communication tools and event technologies and remain out of sight other important elements of the marketing mix. Specified directions for using the elements of the marketing mix in the process of ensuring the competitiveness of the region and the transformation of the system of regional markets. Integrated use of elements of the complex of territorial marketing, its successful "mixing", harmonization of marketing strategies and policies, can form a set of practical tools of adaptation the region to the market situation in the region to ensure competitiveness and create conditions for the implementation of strategic development programs. It was concluded that regional marketing system of regional markets makes it possible to form the best competitive advantages for customers compared with other areas, promotes the efficient use of resources to improve the competitiveness and image, helping to attract economic agents increasing the attractiveness and competitiveness of the region aimed at sustainable development of the region, and creating a long term and mutually beneficial relationships with internal and external partners. Client-orientation of marketing approach to the management of the region and to transform the system of regional markets allows you to create unique properties of the region as a place of residence, visiting, business investment and promote it successfully in domestic and foreign markets. (shrink)

This article analyzes the Turkish central bank's “managed uncertainty” policy after the global financial crisis. During 2010–14, the central bank intentionally generated uncertainty around short-term interest rates, using the level of predictability faced by financiers as a tool to buffer the domestic economy from volatile capital flows. How did the central bank implement this unconventional policy? Building on interview data and public texts, the article argues that the surge in capital inflows after the crisis sourced a debt-led, financialized economic growth (...) model and deepened Turkey's reliance on external financing. The central bank could diverge from the financial sector's policy preferences despite Turkey's increased foreign capital dependence because the availability of low-cost, ample, private funding opportunities temporarily expanded policymakers’ room to maneuver. However, operating vis-à-vis an unsustainable growth regime, the central bank had to revert to orthodoxy in 2014 due to declining investor confidence and capital flight. This article contributes to the literature on the structural power of finance by demonstrating how finance derives its structural power from funding financialized growth, not productive investments. It also shows that financial structural power varies based on the source and cost of external financing beyond the degree of foreign capital dependence. (shrink)