international labor and capital flows complements or substitutes in a global context foreign direct investment fdi and migration substitute one another in the matching process between workers and firms yet migrants provide information about future investment opportunities in their country of origin evidence from u s data is consistent with contemporaneous substitutability and dynamic complementarity between migration and fdi

state characteristics and the location of foreign direct investment within the united states a conditional logit model of the location decision of foreign firms investing in manufacturing facilities in the united states is developed and estimated the authors results for 1981 83 indicate that states with higher per capita incomes and higher densities of manufacturing activity attracted relatively more foreign direct investment in addition higher wages deterred foreign direct investment while higher unemployment rates attracted it surprisingly higher unionization rates were associated with increased foreign direct investment overall higher taxes deterred foreign direct investment however more extensive transportation infrastructures and larger promotional expenditures were associated with increased foreign direct investment copyright 1991 by mit press

the distribution of daily stock returns and settlement procedures the paris bourse in many countries settlements take place a fixed number of business days after the transaction u s japan in other countries settlements take place periodically on a fixed date when all transactions performed before this date are settled u k france italy in both cases settlement procedures should cause returns not to be identically distributed over all days the effect is likely to be the largest on markets where all trades are settled only once a month an empirical investigation of the largest of those markets the paris bourse demonstrates the importance of the settlement procedure on the distribution of daily returns settlement procedures vary considerably across national stock markets in many countries settlements take place a fixed number of business days after the transaction these countries are referred to in this paper as countries with a fixed settlement lag in other countries settlements take place periodically on a fixed date and all transactions performed before this date are settled then these countries are referred to as countries with a fixed settlement date in both cases settlement procedures should cause returns not to be identically distributed over all days

day of the week effects and asset returns the number of empirical studies using daily stock returns is rapidly increasing researchers generally assume that the distribution of stock returns is identical for all days of the week a convenient statistical assumption but not a necessary condition of market equilibrium nevertheless there are reasons to suspect that the distribution of returns may vary according to the day of the week the most obvious is the impact of weekends on monday s return since monday s return is calculated over three instead of one calender day the mean and variance may well be higher on monday compared with any other daily return perhaps three times as large previous research has examined the daily distribution of stock returns for a monday effect while fama 1965 does not compare daily mean returns he does report that monday s variance is about 20o greater than other daily returns with a traditional distributional assumption regarding the returns on a financial asset specifies that the expected returns are identical for all days of the week contrary to this plausible assumption this paper discovers that the expected returns on common stocks and treasury bills are not constant across days of the week the most notable evidence is for monday s returns where the mean is unusually low or even negative several explanations of the results are investigated but none proves satisfactory aside from documenting significant day of the week effects the implications of the results for tests of market efficiency are examined while market adjusted returns continue to exhibit day of the week effects these effects are no longer concentrated on monday during the last year we have had many conversations with our colleagues throughout the professions we are particularly thankful to the participants at sessions of the western and american finance associations where preliminary versions of this paper were presented special thanks are due to gene fama gailen hite jon ingersoll robert jarrow merton miller clifford smith and rex thompson the expert research assistance of frank rabinovitch and youngsup yun is gratefully acknowledged 1 the list of papers using daily stock returns is too long to name recent examples include charest 1978 dodd 1980 banz 1981 and reinganum 1981

highly skilled and well connected migrant inventors in cross border m as based on a relational view of international business we investigate the role of migrant inventors in cross border mergers and acquisitions undertaken by r d active firms we hypothesize that the migrant inventors international social networks can be leveraged by their employers in order to identify and or integrate relevant knowledge bases of acquisition targets in the inventors home country we nuance our hypothesis by means of several conditional logistic regressions on a large matched sample of deals and control cases the impact of migrant inventors increases with the distance between countries and for targets located in countries with weak administrative legal systems as well as when targets are either innovative or belong to high tech sectors or to the same sector as the acquirer and for full versus partial acquisitions

marshallian factor market externalities and the dynamics of industrial localization abstract when an industry has thus chosen a locality for itself it is likely to stay there long so great are the advantages which people following the same skilled trade get from near neighborhood to one another a localized industry gains a great advantage from the fact that it offers a constant market for skill employers are apt to resort to any place where they are likely to find a good choice of workers while men seeking employment naturally go to places where there are many employers who need such skill as theirs the advantages of variety of employment are combined with those of localized industries in some of our manufacturing towns and this is a chief cause of their continued growth alfred marshall principles of economics 8th ed pp 271 272 1920

sectoral growth patterns at the metropolitan level an evaluation of economic development incentives abstract economic development incentives are much used and expensive yet information on their effectiveness is scarce this paper reports a regression analysis of employment growth in 37 disaggregated sectors across u s metropolitan areas in the time period 1977 1984 the results indicate that variation in taxes and subsidies are not related significantly to the location of either high technology manufacturing or most services our results suggest however that enterprise zones and university research parks which may be proxies for focused economic development programs are associated with increased job growth nevertheless the strongest determinants of growth are localization and urbanization externalities along with labor costs and skill factors we hypothesize that localization economies operate through the reduction of information costs especially those associated with firms search behaviors for skilled labor forces

social ties and international entrepreneurship opportunities and constraints affecting firm internationalization international entrepreneurship involves the identification and exploitation of opportunities for international exchange yet little is known about the entrepreneurial methods used for opportunity recognition while previous work emphasizes effects operating at the level of the business network i propose that the recognition of exchange opportunities is a highly subjective process shaped by entrepreneurs existing ties with others based on interview data collected from 41 managers i develop a comprehensive measure for classifying different methods of opportunity recognition i then use this measure to classify 665 international exchange ventures set up by entrepreneurs in four chinese cities in contrast with past research i find virtually no role for blind luck although the majority of exchange opportunities were discovered rather than sought these discoveries were intentional rather than accidental i also find that entrepreneurs idiosyncratic connections with others both promote and inhibit international exchange tie based opportunities lead to higher quality and more valuable exchanges that are constrained in terms of geographic psychic and linguistic distance from this i conclude that entrepreneurial networks have distinct opportunity horizons that limit the reach of tie based exchanges and potentially lead to sub optimal internationalization trajectories

the day of the week effect the international evidence abstract we re examine the day of the week effect for eleven indexes from nine countries during the 1969 1992 period the standard methodology as well as the moving average methodology are used and we find returns to be lower at the beginning of the week but not necessarily on monday for the full period as in chang et al international evidence on the robustness of the day of the week effect journal of financial and quantitative analysis 28 1993 497 514 the anomaly disappears for the most recent period in the usa however the effect is still strong for european countries hong kong and toronto

a global assessment of human capital mobility the role of non oecd destinations discussions of high skilled mobility typically evoke migration patterns from poorer to wealthier countries which ignore movements to and between developing countries this paper presents for the first time a global overview of human capital mobility through bilateral migration stocks by gender and education in 1990 and 2000 and calculation of nuanced brain drain indicators building on newly collated data the paper uses a novel estimation procedure based on a pseudo gravity model then identifies key determinants of international migration and subsequently uses estimated parameters to impute missing data non oecd destinations account for one third of skilled migration while oecd destinations are declining in relative importance

clusters dispersion and the spaces in between for an economic geography of the banal while the geographical clustering of economic activities remains an enduring feature of the industrial landscape and a perennial source of theoretical and empirical interest the geographical scale at which external economies and agglomerative effects are now claimed to operate is on the increase such changes in the spatial form and potential causes of agglomeration over time pose important questions how should we analyse changes in the spatial extent of external economies and agglomerative effects ought we to pay more attention to the sorts of banal economic spaces thrown up as part of increasingly diffuse forms of agglomeration to answer the first of these questions it is noted how economists and geographers have explained agglomerations often in the rather singular and invariant categories of pecuniary and marshallian externalities respectively this paper considers the relevance of neo marshallian analysis and the concept of borrowed size as variations on these classical principles to an analysis of the mobility and fixity of external economies and contemporary diffuse forms of agglomeration whilst reflecting important changes in the spatial extent of industrial agglomerations they are insufficiently sensitive to the interaction of different types of external economies with different scale dependencies in answering the second question it is noted that part of the value of analysing the economic basis of largely overlooked banal intermediate places lies in what they may reveal about the functioning of diffuse forms of agglomeration

do state and local taxes affect economic growth this paper tests if variations in the treatment of expenditures by state and local governments are an explanation for the inconsistent results of previous tax studies estimates for net investment and employment in manufacturing for 1962 82 support this conjecture indicating that state and local taxes have a negative effect when the revenues are devoted to transfer payment programs and that with taxes held constant increases in expenditures on health education consistent with the vicious circle phenomenon do not appear simply to reflect common cyclical movements and provide evidence of structural linkages implicit in previous results for growth in state personal income copyright 1990 by mit press

patterns in japanese common stock returns day of the week and turn of the year effects stock markets in the united states and foreign countries exhibit a strong weekly seasonal 1 an empirical regularity for which no theoretical explanation has been found one s belief in this phenomenon would be strengthened if it is known to also occur in capital markets separated from those in the united states by distance institutional arrangements and culture this paper extends the results found in 5 and more closely examines the day to day stock market returns for japan while we find a weekly seasonal in japan its nature is significantly different in a statistical sense from the american one for example the lowest mean return in japan occurs on tuesday not monday as in the united states thus while the day of the week effect for american stocks has been casually called the weekend effect it should not be referred to in this way for japanese stocks the next part of the paper examines causes for the unique japanese seasonal we investigate whether the results in japan are associated with those in the united states and in particular consider whether the low tuesday return in japan and the low monday return in the united states are due to time zone differ ences the settlement process and the measurement error problem also are treated we next consider the relationship between foreign exchange returns and stock market returns the seasonal in daily foreign exchange returns does not offset the seasonal in daily stock market returns thus both japanese and american investors confront a day of the week effect in the japanese stock mar ket our data also allow us to investigate the turn ofthe year effect japanese stock returns in january are significantly above the returns during the rest of the year however unlike some reports using u s data see 12 and 13 we find no interaction in japan between the monday effect and the january effect

international evidence on the robustness of the day of the week effect consistent with connolly s 1989 1991 evidence this study finds that sample size and or error term adjustments render u s day of the week effects statistically insignificant in contrast day of the week effects in seven european countries and in canada and hong kong are robust to individual sample size or error term adjustments and day of the week effects in five european countries survive the simultaneous imposition of both types of adjustments in most countries where day of the week effects are robust however the effects are statistically significant in not more than two weeks out of the month these findings are inconsistent with explanations of the day of the week effect based on institutional differences or on the arrival of new information thus in the absence of other potential explanations already dismissed by jaffe and westerfield 1985 evidence in this study further complicates the international day of the week effect puzzle

the impact of culture on the strategy of multinational enterprises does national origin affect ownership decisions this paper tests the proposition that national origin affects the strategies of multinational enterprises by looking at the determinants of the choice they make between entering the united states through partially versus wholly owned subsidiaries we pool entries into the united states made by firms based in two countries japan and finland which differ both in their cultural characteristics and in their cultural distance to the united states after carefully controlling for the known firm and industry level determinants of subsidiary ownership strategies we find that cultural distance between the home base of the investor and the target country or perhaps political risk exerts a powerful influence on ownership of subsidiaries but cultural characteristics of the home base do not

innovating in the periphery the impact of local and foreign inventor mobility on the value of indian patents abstract we examine the impact of local and foreign labor mobility in india by modeling one regional and one global network each of which captures the inter organizational mobility of inventors our analysis of the regional network shows that within india the productivity of inventors does not improve when they move from foreign to indian organizations in the global network we find that indian organizations remain located in the periphery as a result of employing a small number of inventors from foreign organizations however in the instances when inventors are hired from foreign organizations they are able to produce patents with a higher impact in comparison to inventors hired from other indian organizations furthermore when the inventors are hired from abroad the impact of their patents is even higher in comparison the implications of these findings for innovation and policy in the emerging economy context are discussed

location and the multinational enterprise a neglected factor this article first traces the changing world economic scenario for international business over the past two decades and then goes on to examine its implications for the location of foreign direct investment and multinational enterprise activity it suggests that many of the explanations of the 1970s and early 1980s need to be modified as firm specific assets have become mobile across natural boundaries a final section of the article examines the dynamic interface between the value added activities of multinational enterprises in different locations

reappraising the eclectic paradigm in an age of alliance capitalism this article discusses the implications of the advent of alliance capitalism for our theorizing about the determinants of mne activity in particular it argues that due to the increasing porosity of the boundaries of firms countries and markets the eclectic or oli paradigm of international production needs to consider more explicitly the competitive advantages arising from the way firms organize their inter firm transactions the growing interdependencies of many intermediate product markets and the widening of the portfolio of the assets of districts regions and countries to embrace the external economies of interdependent activities

day of the week effect on the paris bourse abstract we present evidence on the day of the week effect on a stock market with a particular settlement procedure the paris bourse a strong and persistent negative return is found on tuesdays a similar result was previously found for japan and australia the settlement procedure is shown to have an effect on the distribution of daily returns consistent with forward pricing theory it cannot explain the negative tuesday return after adjusting for this settlement effect the mean return on mondays is the largest in the week a result at odds with the evidence in the u s a

a further investigation of the weekend effect in stock returns this study uses a longer time period and additional stocks to further investigate the weekend effect we find consistently negative monday returns 1 for the s p composite as early as 1928 2 for exchange traded stocks of firms of all sizes and 3 for actively traded over the counter otc stocks the otc results are based on bid prices and therefore appear to reject specialist related explanations for the 30 individual stocks of the dow jones industrial index the average correlation between friday and monday returns is positive and the highest of all pairs of successive days the latter finding is inconsistent with fairly general measurement error explanations some of the most puzzling empirical findings reported in recent years indicate that the distribution of common stock returns varies by day of the week most notably the average return for monday close friday to close monday is significantly negative cross 3 and french 6 find negative monday returns using the standard and poor s composite index and gibbons and hess 7 find negative monday returns for the 30 individual stocks of the dow jones industrial index 1 this negative monday return or weekend effect has yet to be explained this study undertakes a further investigation of the weekend effect in stock returns we examine additional time periods extending the total period covered to 55 years we examine additional stocks such as those of small low capitalization firms and those traded over the counter in all cases the data exhibit a weekend effect that is at least as strong as that reported in previous studies the study also readdresses potential explanations for the effect such as measurement error but concludes that none of these explanations is satisfactory the first section presents a history of the weekend effect from 1928 through 1982 based on the standard and poor s composite index we essentially double the length of the period beginning in 1953 examined by french 6 the results indicate consistently negative monday returns throughout the 55 year period during much of the 25 year period from 1928 through 1952 the new york stock exchange was open on saturdays so monday s return is then computed from saturday s close to monday s close 2 these returns for one day weekends are consistently negative and not significantly different from the two day weekend

a new approach to data access and research transparency dart recent debates on transparency and replicability suggest that jibs needs to update its approach on data access and research transparency dart we propose a series of initiatives knowing well that there is a balance to be struck there are clear benefits on the one hand chief among these the potential for learning and knowledge accumulation and equally manifest challenges on the other the imperative to respect privacy confidentiality and intellectual property rights without addressing these challenges will there be the high quality data on which the benefits depend we present access and transparency objectives and set out how an actionable and effective approach towards dart will be implemented but also address ethical legal and organizational challenges of concern to us as a scholarly community

transaction cost determinants and ownership based entry mode choice a meta analytical review entry mode choice is a critical ingredient of international entry strategies and has been voluminously examined in the field the findings however are very mixed especially with respect to transaction cost related factors in determining the ownership based entry mode choice this study conducted a meta analysis to quantitatively summarize the literature and empirically generalize more conclusive findings based on the 106 effect sizes of 38 empirical studies the meta analysis shows that the findings of the existing studies are moderated to varying degrees by both study setting factors and statistical artifacts although the combined overall effects of transaction cost based determinants are consistent with the predictions of transaction cost economics we extensively discuss the implications of meta analytical results especially moderating effects of location country of origin industry type and statistical artifacts highlight the measurement adequacy equivalence and multidimensionality of transaction cost determinants and present our suggestions to improve theoretical inquiries and empirical verifications on entry mode choice

explaining the internationalization of ibusiness firms information and communication technologies have given rise to a new type of firm the ibusiness firm these firms offer a platform that allows users to interact with each other and generate value through user co creation of content because of this ibusiness firms face different challenges when they internationalize compared with traditional firms even those online in this article we extend existing internationalization theory to encompass this new type of organization we theorize that because ibusiness firms produce value through the creation and coordination of a network of users these firms tend to suffer greater liabilities of outsidership when expanding abroad and therefore concentrate on network and diffusion based user adoption processes as they internationalize based on a multi case investigation of a sample of ibusiness firms we develop new theory and testable hypotheses thus we make an important contribution by expanding internationalization theory to a new set of firms

intraweek and intraday seasonalities in stock market risk premia cash and futures abstract the unique nature of the settlement procedures on the london stock exchange are utilised to directly investigate intraweek and intraday seasonalities in ex post risk premia rather than total returns and compare them with the corresponding intraweek and intraday seasonalities in the index futures market seasonalities in the occurrence of extreme price changes are also examined the results reported are based on about 4 years of hourly cash and futures data the analysis is conducted using both parametric and non parametric methods the observed empirical regularities have implications for explanations of seasonality based on market microstructure timing of news and psychological behavioural patterns it is also found that the stock market has not efficiently accounted for the interest costs inherent in its own settlement procedures

the saturday effect an interesting anomaly in the saudi stock market the vast majority of empirical research on calendar anomalies has studied financial markets in countries where the western calendar is used this article investigates day of the week effects in saudi arabia s stock market where an islamic calendar is used and where saturday is the first working day of the week over the sample period considered the saudi stock market is the largest in the gulf region and we consider both total market data the tasi index and data for 15 sector indices our investigation reveals the existence of a positive saturday effect which contrasts with the results on first day of the week effects that are typically obtained for western calendar markets

new findings regarding day of the week returns over trading and non trading periods a note this paper decomposes daily close to close returns into trading day and non trading day returns we discover that all of the average negative returns from friday close to monday close documented in the literature for stock market indexes occurs during the non trading period from friday close to monday open in addition average trading day returns open to close are identical for all days of the week january firm size turn of the year anomalies are shown to be interrelated with day of the week returns

does state economic development spending increase manufacturing employment abstract recent studies which have attempted to determine what causes an industrial sector in a state to grow have ignored the general role of the state s economic development agency we extend the analysis to include its effect and determine that economic development expenditure by the state is significantly correlated with manufacturing growth in the state our result is robust to a variety of specification tests

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

is the efficient market hypothesis day of the week dependent evidence from the banking sector in this article we propose a new hypothesis that the efficient market hypothesis is day of the week dependent we apply the test to firms belonging to the banking sector and listed on the nyse we find significant evidence that the efficient market hypothesis is day of the week dependent overall for only 62 of firms the unit root null hypothesis is rejected on all the five trading days we also discover that when investors do not account for unit root properties in devising trading strategies they obtain spurious profits

global talent flows the global distribution of talent is highly skewed and the resources available to countries to develop and utilize their best and brightest vary substantially the migration of skilled workers across countries tilts the deck even further using newly available data the paper first reviews the landscape of global talent mobility which is both asymmetric and rising in importance next the determinants of global talent flows at the individual and firm levels are presented and some important implications are sketched third the national gatekeepers for skilled migration and broad differences in approaches used to select migrants for admission are reviewed looking forward the capacity of people firms and countries to successfully navigate this tangled web of global talent will be critical to their success

mnes as border crossing multi location enterprises the role of discontinuities in geographic space spurred by the classic work of dunning mne location has become the focus of a growing body of research in the field in this paper we argue that international business ib research examining the spatial dimension has serious weaknesses stemming from its traditional assumption of the country as the location unit of analysis while border crossing remains the key research context of ib placing it within a general spatial framework that recognizes both international and subnational spatial heterogeneity opens up vast new vistas for research analyzing mnes as border crossing multi location enterprises allows the researcher to distinguish between discrete border effects and continuous distance effects and undertake a more fine grained analysis of location within such analysis national borders may appear as qualitative discontinuities in space that is points at which spatial heterogeneity changes abruptly however subnational spatial heterogeneity is often the characteristic that drives firm strategy as mnes decide to locate in particular agglomerations and not at random locations within a country the complex firms that ib scholars study typically include multiple units within the same country so that a complete analysis requires considering both subnational distance effects as well as international border effects

network linkages and location choice in foreign direct investment this paper shows that network linkage is an important determinant of location choice in foreign direct investment fdi network linkages are divided into internal intra firm and external inter firm linkages external linkages are further separated into strategic and relational linkages we found that taiwanese firms are keen on making external linkages but are indifferent to or incapable of making internal linkages through fdi strategic linkages motivate taiwanese fdi in the united states while relational linkages facilitate taiwanese fdi in southeast asia and china small firms are more sensitive to relational linkages than large firms in their choice of fdi location

spatial geography and control in foreign acquisitions this article examines how spatial geography influences firms choice of control in cross border acquisitions cbas building our arguments on the information asymmetry in cbas we argue that geographic distance affects adverse selection and moral hazard problems in cbas geographic distance hinders acquirers efforts to assess the true value of the target firm prompting them to opt for a partial control at the same time geographic distance hampers acquirers ability to manage contractual relationships and integrate target firms prompting them to opt for a full control we argue that the cost and benefit trade off of full vs partial ownership varies at different levels of geographic distance accordingly we propose a curvilinear u shaped relationship between geographic distance and equity ownership this relationship is contingent on acquisition relatedness and the listing status of the acquirer public vs private as the geographic distance between acquirer and target increases acquirers assume higher equity stakes in related acquisitions than in unrelated acquisitions at greater geographic distances public firms acquire more equity ownership than do private firms findings from 10 181 deals across 52 acquiring and 61 target countries provide robust support for these arguments

the effect of cultural distance on entry mode choice international diversification and mne performance a meta analysis although a growing literature indicates that cultural distance that is differences between national cultures is an important determinant of organizational actions and performance both empirical and theoretical concerns abound in this study the relationships of cultural distance with entry mode choice international diversification and mne performance are examined by meta analyzing data from 66 independent samples with cumulative sample sizes ranging from 2 255 to 24 152 regression results failed to provide statistical evidence of significant relationships between cultural distance and entry mode choice international diversification and mne performance the examination of moderator effects however yielded important results we found a strong negative association between cultural distance and entry mode choice for us based mnes the cultural distance international diversification relationship was negative for high technology industries while it was positive for other industries cultural distance also had a strong positive effect on mne performance for developed country investments a similar strong positive relationship was found between cultural distance and international diversification in studies with more recent samples results of this study indicate that substantial additional research is needed before the role of cultural distance is fully understood

social ties and foreign market entry the social dynamics which precede international exchange are considered in light of data collected on 133 foreign market entries from a sample of highly internationalized manufacturing firms consistent with research done in the social network field the findings support the hypothesis that knowledge of foreign market opportunities is commonly acquired via existing inter personal links rather than collected systematically via market research this study thus contributes towards an understanding of those antecedent conditions that lead to the formation of export exchange relationships

turn of month and pre holiday effects on stock returns some international evidence abstract this study examines turn of month and pre holiday effects on international markets turn of month effects are significant in canada the uk australia switzerland and west germany pre holiday effects are significant in canada japan hong kong and australia the absence of these effects in certain markets suggests that they originate from country specific institutional practices all countries exhibiting pre holiday effects do so before local holidays only hong kong does so before us holidays this reinforces the conclusion that such anomalies are not generated solely by american institutions

effects of economic incentives in the american film industry an ecological approach abstractus states have offered billions of dollars in film industry incentives but despite the popularity of these incentives the effects of these investments are unclear this study adopts an ecological framework and tests the hypothesis that film incentives are effective when they produce changes in the composition of organizational communities the results of longitudinal linear mixed effects models centred around incentive introduction in each state show that above the impact of their dollar value the simple presence of economic incentives organizational diversity and the presence of dominant organizational populations are associated with increases in filming employment and new establishments theoretical and policy implications are discussed

international experience and fdi location choices of chinese firms the moderating effects of home country government support and host country institutions we examine the extent to which chinese government support of foreign direct investment fdi projects and host country institutional environments interact with prior entry experience by chinese firms and how this interrelationship affects fdi undertaken by chinese firms we hypothesize that home country government support and well established host country institutions enhance organizational capabilities to take risks in fdi as such they reduce the need to accumulate experiential knowledge and capabilities relating to entering host countries based on prior entry experience in a particular country when undertaking follow up investment projects using a unique hand collected panel data set of chinese publicly listed firms during 2002 2009 we find that home government support and well developed host country institutions reduce the importance of prior entry experience and significantly increase the likelihood of fdi entry into a host country further from our subsample analyses we identify differences between entering developed and developing host countries in terms of the impact of home country government support and quality of host country institutions our findings help explain the puzzle concerning why emerging economy firms have rapidly internationalized in a short period of time and do not follow the pattern predicted by classical ib theories

familiarity breeds investment diaspora networks and international investment what explains cross national patterns of international portfolio and foreign direct investment fdi while existing explanations focus on the credibility of a policy maker s commitment we emphasize the role of diaspora networks we hypothesize that diaspora networks connections between migrants residing in investing countries and their home country influence global investment by reducing transaction and information costs this hypothesis is tested using dyadic cross sectional data for both portfolio and fdi the findings indicate that even after controlling for a multitude of factors disapora networks have both a substantively significant effect and a statistically significant effect on cross border investment

on the behavioral differences between professional and amateur investors after the weekend abstract this paper compares the trading patterns of amateur and professional investors during the days following the weekend the comparison is based on all the daily transactions of a large sample of both amateurs and professionally managed investors in a major brokerage house in israel from 1994 to 1998 we find that weekends influence both amateurs and professional investors however they affect them in opposite directions individuals increase both their buy and sell activities and their propensity to sell rises more than their propensity to buy professionals on the other hand tend to perform fewer buy as well as sell trades after the weekend but unlike individuals the drop in their activity is almost the same for buy trades and for sell trades the results agree with previous hypotheses raised in the literature which were not directly tested about the effects of the weekend on the predisposition to trade of individuals and institutions in other markets we also find that returns on the israeli stock market index are correlated in general with the behavioral patterns exhibited by the investors in our sample in particular the returns on the days following the weekend are lower than those in other weekdays in a manner consistent with the behavioral patterns we found

the week end effect in common stock returns the international evidence this paper examines the daily stock market returns for four foreign countries we find a so called week end effect in each country in addition the lowest mean returns for the japanese and australian stock markets occur on tuesday the remainder of the paper answers four questions are seasonal patterns in foreign stock markets independent of those previously reported in the u s do japan and australia exhibit a seasonal one day out of phase due to different time zones do settlement procedures across countries bias week end effects does the seasonal pattern in foreign exchange offset the week end effect in stocks for americans investing overseas some of the most anomalous empirical findings in finance are associated with the sample distributions of daily common stock returns cross 1 french 2 gibbons and hess 3 and keim and stambaugh 4 have documented that the average return on friday is abnormally high and the average return on monday is abnormally low to our knowledge this so called day of the week effect or week end effect has yet to be explained because this anomaly has been reported primarily for u s stock returns it is appropriate to investigate whether similar results occur for other countries positive findings would strongly support the proposition that the weekly seasonal effect is a general world wide phenomenon rather than the result of a special type of institutional arrangement in the u s to shed more light on this proposition our paper examines stock market returns in the u k japan canada and australia since we find a week end effect in each country we can examine a set of interesting questions for example are these seasonals independent of the previously reported seasonal in the u s due to different time zones do far eastern countries exhibit a seasonal one day out of phase do different settlement procedures across countries influence weekend effects does the seasonal in foreign exchange fluctuations see mcfarland pettit and sung 7 and levi 6 offset the week end effect in stock market returns for americans investing overseas

institutions transaction costs and entry mode choice in eastern europe the process of change from a centrally planned system to a market economy generates an institutional framework that is only partially reformed and therefore inconsistent and unstable this leads to high transaction costs for economic agents multinational enterprises entering transition countries have to adapt their strategies to the local institutions and reduce exposure to highly imperfect markets this paper analyzes how the costs of organizing business in transition environments influence entry mode choice the empirical results show that host country institutions in transition economies have an impact on the choice of entry modes moreover different mechanisms determine the internalization of managerial and technological knowledge

migration and cross border financial flows migration facilitates the flow of information between countries thereby reducing informational frictions that potentially hamper cross country financial flows using a gravity model migration is found to be highly correlated with financial flows from the migrant s host country to her home country the correlation is strongest where information problems are more acute e g between culturally more distant countries for asset types that are more informational sensitive and for the type of migrants that are most able to enhance the flow of information on their home countries namely skilled migrants these differential effects are interpreted as evidence for the role of migration in reducing information frictions between countries

no place like home the effect of exporting to the country of origin on the financial performance of immigrant owned smes immigrants and sustained international migration are transforming developed western countries at an unprecedented pace and scale sustained international migration is also further accentuating the already dominant presence of immigrant entrepreneurs in the international business landscape these immigrant entrepreneurs often operate small and medium sized enterprises smes that primarily export to their country of origin however conflicting findings suggest theoretical ambiguity in how the level of country of origin export intensity influences the smes financial performance adopting a contingent perspective we theorize how and when socially embedded immigrant owners derive superior performance from high country of origin export intensity based on a sample of 2584 immigrant owned smes and 6391 firm year observations we find that smes led by immigrant owners with longer stays in their country of residence and whose country of origin is geographically proximate to their country of residence generate superior financial performance from high country of origin export intensity these findings are consistent with the view that immigrant entrepreneurs international financial success is a function of network and cognition based advantages linked to their level of concurrent embeddedness in their countries of residence and origin we also provide actionable insights for immigrant entrepreneurs and for policy makers tasked to design suitable export promotion programs

a transaction data study of weekly and intradaily patterns in stock returns abstract weekly and intradaily patterns in common stock prices are examined using transaction data for large firms negative monday close to close returns accrue between the friday close and the monday open for smaller firms they accrue primarily during the monday trading day for all firms significant weekday differences in intraday returns accrue during the first 45 minutes after the market opens on monday mornings prices drop while on the other weekday mornings they rise otherwise the pattern of intraday returns is similar on all weekdays most notable is an increase in prices on the last trade of the day

calendar anomalies abnormal returns at calendar turning points 1988 calendar anomalies abnormal returns at calendar turning points financial analysts journal vol 44 no 6 pp 28 39

the effect of state and local taxes on economic growth a time series cross section approach results based on pooled time series and cross section data are presented which indicate that state and local tax increases significantly retard economic growth when the revenue is used to fund transfer payments however when the revenue is used instead to finance improved public services such as education highways and public health and safety the favorable impact on location and production decisions provided by the enhanced services may more than counterbalance the disincentive effects of the associated taxes these findings underscore the importance of considering the incentives provided by a state s expenditures as well as by its taxes i n the past several years a number of states have implemented limitations on taxes or expenditures while others have raised tax rates in response to the revenue shortfalls of the early 1980s although much of the ongoing debate over state fiscal structures revolves around expressed preferences over tax expenditure combinations per se the question of how state and local taxes may affect economic growth is often central to the discussion nonetheless the empirical evidence remains sparse previous studies can be divided into two broad categories assessments of the magnitudes of tax costs and statistical analyses of the relationship between tax rates and growth cost studies have tended to minimize the role of taxes in business location decisions either because state and local taxes are a relatively small component of total costs for most businesses or because interstate tax differences are small relative to other cost differences between states although these results suggest that the role played by taxes is a minor one describing how large the tax disparities may be is not the same as ascertaining their economic effect of the statistical studies many including bloom 1955 thompson and mattila 1959 and carlton 1979 1983 find no relationship between taxes and growth however kleine 1977 grieson 1980 and generally grieson et al 1977 report negative correlations romans and subrahmanyam 1979 find growth to be negatively related to the fraction of revenues devoted to transfer payments and a variable which they claim measures personal tax progressivity but positively related to business taxes with the exception of carlton who estimates models of the birth and size of firms within metropolitan areas and the grieson et al 1977 and grieson 1980 studies which consider taxes in new york city and philadelphia these authors use data from a single cross section of states more recently newman 1983 and plaut and pluta 1983 both use cross sectional data from two time periods the former finding negative effects of corporate tax rates and the latter yielding mixed results in this study we utilize a time series from 1965 through 1979 of cross sections of 48 states exploiting the richness of this data set we are able to allow for otherwise unexplained differences between states which could be expected to bias results based on a single cross section moreover this much larger sample provides the statistical power necessary to disentangle the separate effects of different categories of taxes public expenditures and transfer payments a distinguishing feature of this paper is that we explicitly recognize the government budget constraint linking these fiscal variables and the deficit or surplus in addition we have taken account of the effects of labor force characteristics by including variables for wage rates unionization and population density our results indicate that tax increases significantly retard economic growth when the revenue is used to fund transfer payments as a result programs of income redistribution are more effectively undertaken at the federal than at the state and local level on the other hand when the revenue is received for publication april 30 1984 revision accepted for publication january 22 1985 university of california davis i am indebted to the institute of governmental affairs at the university of california davis for financial support to adrienne kandel for invaluable research assistance and to two referees for their helpful comments 1 see williams 1967 morgan and brownlee 1974 vasquez and deseve 1977 and the advisory commission on intergovernmental relations 1981 see also due 1961 for a survey of the early literature including a discussion of the findings and limitations of survey results on this topic 574 1 copyright 1985 this content downloaded from 157 55 39 35 on mon 29 aug 2016 04 45 38 utc all use subject to http about jstor org terms state and local taxes and economic growth 575 used instead to finance enhanced public services such as highways education and public health and safety the favorable impact on location and production decisions provided by the improved services may more than counterbalance the disincentive effects of the concomitant taxes these findings underscore the importance of considering the incentives provided by a state s expenditures as well as by its taxes we begin by sketching a model which provides the basis for the analysis and discussing appropriate estimation techniques then in section ii we describe the data used and our hypotheses the econometric results are presented in section iii followed by brief concluding remarks in the final

the uppsala internationalization process model revisited from liability of foreignness to liability of outsidership the uppsala internationalization process model is revisited in the light of changes in business practices and theoretical advances that have been made since 1977 now the business environment is viewed as a web of relationships a network rather than as a neoclassical market with many independent suppliers and customers outsidership in relation to the relevant network more than psychic distance is the root of uncertainty the change mechanisms in the revised model are essentially the same as those in the original version although we add trust building and knowledge creation the latter to recognize the fact that new knowledge is developed in relationships

weekend effects on stock returns a note some researchers have apparently been surprised to discover that the distribution of stock returns depends on the day of the week kenneth french 3 for example in testing whether daily stock returns are generated by a trading time or calendar time hypothesis provided convincing evidence of a negative market return on mondays as french carefully notes this finding runs counter to both hypotheses since a trading time view would have expected stock returns equal on different days and a calendar time view would have higher expected returns on monday to compensate for the longer holding period in this paper we offer a partial explanation for the apparently puzzling discovery of different daily returns we argue that the expected stock returns as measured for example from closing to closing prices should depend on the day of the week in general we argue that the expected returns on mondays should be lower than would be implied simply by a trading time or calendar time model and the returns on fridays should be higher in addition we anticipate that holidays will have complex effects on stock returns on other days of the week our argument is based on the delay between trading and settlements in stocks and in clearing checks the explanation that we offer for different measured daily returns does not contradict the efficient market hypothesis as correctly adjusted expected returns should not differ according to the day of the week