BUSINESS, TECHNOLOGY AND FINANCE FINANCIAL PERFORMANCE ANALYSIS, MEASURES AND IMPACT ON ECONOMIC GROWTH No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein This digital document is sold with the clear understanding that the publisher is not engaged in rendering legal, medical or any other professional services BUSINESS, TECHNOLOGY AND FINANCE Additional books in this series can be found on Nova‘s website under the Series tab Additional e-books in this series can be found on Nova‘s website under the e-book tab BUSINESS, TECHNOLOGY AND FINANCE FINANCIAL PERFORMANCE ANALYSIS, MEASURES AND IMPACT ON ECONOMIC GROWTH ELAINE MORENO EDITOR New York Copyright © 2016 by Nova Science Publishers, Inc All rights reserved No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher We have partnered with Copyright Clearance Center to make it easy for you to obtain permissions to reuse content from this publication Simply navigate to this publication‘s page on Nova‘s website and locate the ―Get Permission‖ button below the title description This button is linked directly to the title‘s permission page on copyright.com Alternatively, you can visit copyright.com and search by title, ISBN, or ISSN For further questions about using the service on copyright.com, please contact: Copyright Clearance Center Phone: +1-(978) 750-8400 Fax: +1-(978) 750-4470 E-mail: info@copyright.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers‘ use of, or reliance upon, this material Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works Independent verification should be sought for any data, advice or recommendations contained in this book In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services If legal or any other expert assistance is required, the services of a competent person should be sought FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS Additional color graphics may be available in the e-book version of this book Library of Congress Cataloging-in-Publication Data ISBN: (eBook) Published by Nova Science Publishers, Inc † New York CONTENTS Preface Chapter Chapter Chapter Chapter Index vii Family Business and Economic Growth: An International Analysis Isabel Mª García-Sánchez, Lázaro Rodríguez-Ariza, Jennifer Martínez-Ferrero and José Daniel Lorenzo-Gómez CEO Duality and Firm Performance in Nigeria: Implication for Family Owned Firms Augustine Ujunwa and Chinwe Okoyeuzu 35 Corporate Governance Scores and Financial Performance: Do Revisions Matter? Claude Francoeur and Joseph Gawer 59 Does Financial Accessibility and Inclusion Promote Economic Growth in Low Income Countries (LICs)? Francis K Agyekum, Stuart Locke and Nirosha Hewa Wellalage 99 137 PREFACE Globally, family businesses constitute one of the pillars of social welfare, exerting an active and fundamental role in modern economies by generating wealth and creating jobs This institution provides security and progress for family participants in the project, and benefits both the community and the national and international economic structure To analyze its impact on the economy, Chapter One empirically examines the effect of the value generated by family business on economic growth worldwide, nationally and in industry sectors Chapter Two studies whether the one-rule-fits-all approach adopted by the Nigerian Securities Exchange Commission promotes firm performance irrespective of the firms‘ ownership structures in Nigerian family owned firms Chapter Three takes a close look at how corporate governance practices are evaluated by stock market participants In Chapter Four, the link between financial inclusion, development and economic growth in low income countries is examined Chapter - Globally, family business constitutes one of the pillars of social welfare, exerting an active and fundamental role in modern economies by generating wealth and creating jobs This institution provides security and progress for family participants in the project, and benefits both the community and the national and international economic structure To analyse its impact on the economy, this chapter empirically examines the effect of the value generated by family business on economic growth worldwide, nationally and in industry sectors This analysis is based on a sample composed of the 17 largest companies in each of nine countries (Canada, France, Germany, Italy, Japan, Hong Kong, Spain, UK and USA), for the period 2002-2010 Using a panel data methodology, the authors analyse the role played by these viii Elaine Moreno companies in the economic growth of their countries of origin The scope of this analysis is global, national and by activity sector The authors‘ findings provide evidence of the positive influence on economic growth of the added value generated in each country by these companies, and concretely, the greater influence of the wealth generated by family firms The influence of family firms is particularly significant in Italy and in the ―basic materials‖ activity sector The results obtained enhance the authors‘ understanding of the importance of these companies to the quality of life enjoyed in their countries of origin, and will enable policy makers to design strategies and actions to promote and facilitate the development of these firms Chapter - Manuscript type: Empirical Purpose: The purpose of this study is to empirically determine whether the one-rule-fits-all approached adopted by the Nigerian Securities Exchange Commission in terms of the separation of board chairman form the CEO promotes firm performance irrespective of the firms‘ ownership structures, in Nigerian with strong dominance of family owned firms Design/methodology/approach: The study is restricted to firms quoted on the Nigerian Stock Exchange Pooled data for 18-years period 1994-2011 were collated from published annual reports and statement of accounts of 91 ownership dispersed firms and 72 ownership concentrated firms Two equation system Ordinary Least Square multiple regressions were used to estimate the relationship between firm financial performance and CEO duality along ownership structures in Nigeria Findings: The findings of the study showed that while board duality was negative in predicting the financial performance of ownership dispersed firms; same cannot be said of ownership concentrated firms (family owned firms) as duality was found to be positive in predicting financial performance Research Limitations/Implications: Paucity of substantial local literature on institutional perspective of agency constitutes the major limitation of this study Although, this study is meant to close this gap, the implication is that foreign theoretical and empirical literature standpoint constitutes the bulk of the review, which may not explain reasons for any identifiable local trends in Nigeria Practical Implication: The study reveals the importance of taking into cognizance, institutional perspective of agency theory in solving the excess power assigned to the board of directors, especially for family owned firms, where the family members have strong incentive to monitor the managers Originality/Value: This study contributes to the institutional perspective of agency theory from Nigerian institutional perspective The study revealed the Preface ix importance of accommodating individual country specificities in draft corporate governance laws Chapter - This study takes a closer look at how corporate governance practices are evaluated by stock market participants The recent study of Bebchuck, Cohen, and Wang (2013) has documented the disappearance of the governance-return association that existed during the 1990s According to these authors, market participants have learned to fully appreciate corporate governance scores This paper revisits this question by specifically looking at the association between revisions in corporate governance (CG) scores and subsequent stock returns The authors therefore focus on the improvement or deterioration of CG quality, rather than its absolute value, as a potential source of stock market anomaly The authors use an event study methodology to measure the market reaction to changes in the CG scores of 600 European public companies between 1999 and 2009 The results show that firms experiencing downward revisions are associated with long-term underperformance and weak and stable tracking-error volatility This suggests that CG negative revisions is a source of abnormal returns that could be harnessed by professional financial analysts Chapter - This study examines the link between financial inclusion, development and economic growth in low income countries (LICs) The analysis is quantitative, covering the period 1998-2013 and uses International Financial Statistics (IFS) and Bankscope data from the World Bank database The use of a quantile regressions model in the analysis provides an extra level of robustness from earlier work and illuminates some interesting issues regarding the impact of financial inclusion Depth of financial inclusion is significant in relation to economic growth compared with financial market depth The study provides a strong case that the potential growth effect of financial institutions (banks) in LICs is much stronger relative to that of the financial market Within the LIC context, the growth-enhancing effect of the financial sector thrives on the synergy of the financial institutions as it engenders wider inclusion A significant outcome of this work is an increased appreciation of the importance of thorough analysis and the many cross dependencies For policy makers there is a clear signal; don‘t develop plans around stimulating or reducing just one instrument in the economy and expect non-confounding results The light shed on these key relationships suggest that policies on growth, financial sector reforms and financial inclusion need not be implemented in isolation This is especially the case in LICs where institutional bottlenecks and structural constraints often widen the existing exclusion gap Table A-1 (Continued) Category Variable Name Variable Definitions Capturing financial institution‘s Stability: IV (regular indicator) NPA Provisions to non-performing Assets (%): Non-performing assets are loans for which the contractual payments are delinquent, usually defined as and NPL ratio Productive international Inflows: IV (conditioning variable) An independent variable used as conditioning factor Proxy for national Savings - IV (conditioning variable) lnFDI Urate Sav2GDP Natural long of FDI (net inflows): Foreign direct investment are the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital This series shows inflows to Ghana from foreign investors, divided by GDP Unemployment Rate: Unemployment refers to the share of the labour force that is without work but available for and seeking employment This is measure as the ratio of unemployed section of the active labour force divided by total labour force Gross savings (% of GDP): Gross savings are calculated as gross national income less total consumption, plus net transfers The ratio is determined as the value of nonperforming loans divided by the total value of the loan portfolio Source Financial Soundness Indicators Database - International Monetary Fund (IMF) - (Reported by World Bank) IMF, International Financial Statistics and Balance of Payments databases, World Bank, International Debt Statistics, World Bank estimates (Reported by World Bank) International Labour Organization, Key Indicators of the Labour Market database (Reported by World Bank) World Bank national accounts data, and OECD National Accounts data files (Reported by World Bank) Does Financial Accessibility and Inclusion Promote Economic … 133 REFERENCES Adu, G., Marbuah, G and Mensah, J T (2013) Financial development and economic growth in Ghana: Does the measure of financial development matter? 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assets, 103 barriers, 123 base, 69, 110 basic research, 8, 14, 18, 23, 27 behaviors, 67 Belgium, 68, 70 benchmarking, 110, 127 benchmarks, 83 benefits, vii, 1, 41, 119, 126, 128 beverages, 42 bias, 15, 69, 74, 78, 79 blood, 49 board members, 41, 44, 50, 52, 63 bribes, 49 Britton Woods Institutions, 102 broad, 83, 94, 105, 109 broad money, 109 business cycle, 63, 135 business organisation, 2, 29 businesses, vii, 3, 4, 6, 30, 42 C B banking, 42, 109, 112, 119, 123, 124, 125, 126, 130, 133 banking sector, 112, 123, 125 CAP, 106 138 Index capital, 2, 4, 5, 7, 8, 14, 18, 23, 27, 31, 33, 42, 52, 63, 67, 71, 100, 104, 111, 112, 119, 120, 132, 134, 135 capital expenditure, 8, 14, 18, 23, 27, 63 capital inflow, 119 capital market, 31, 67, 71, 100, 120 capitalisation, 111, 113 capitalism, 49 capitalization, 68, 69, 77, 81, 106, 109, 123, 130, 131 Caribbean, 134 case study, 100 cash, 98, 131 cash flow, 98 causal relationship, 123 causality, 129, 133 causation, 129 chaos, 40 chemicals, 42 China, 56, 96 Chinese firms, 41 citizenship, 7, 13, 18, 23, 27 civil liberties, classical linear regression, 102 classification, 42 clients, 105 clustering, 65 collaboration, 37 collateral, 48 colonial rule, 42 colonization, 42 commercial, 42, 49, 118 communication, 42 communities, 52 community, vii, 1, 2, 29, 67 compensation, 131 competition, 52, 109, 112, 118, 123, 124, 134 competitive advantage, competitive behaviour, 130 competitors, complement, 16, 123, 125, 126 complementarity, 125 complexity, 47 compliance, 36, 38, 42, 53, 65 composition, 30, 38, 39, 119, 131 computation, 112 conditional mean, 102, 107 conditioning, 110, 119, 130, 131, 132 conflict, 50, 52 conflict of interest, 50 congruence, 94 construction, 8, 14, 18, 23, 27, 42 consumer price index, 131 consumption, 131, 132 contract enforcement, 101, 105 controversial, 40 controversies, 46 convergence, conviction, 71, 72 corporate fraud, 52 corporate governance, vii, ix, 4, 33, 34, 36, 37, 38, 39, 40, 43, 52, 53, 59, 60, 61, 63, 67, 69, 105 corporate scandals, 36, 92 Corporate Social Responsibility, 55, 95 correlation(s), 13, 15, 29, 46, 49, 50, 53, 61, 64, 65, 106, 107, 110, 111, 112, 133 correlation coefficient, 107, 112 corruption, 49 cost, 38, 40, 43, 44, 51, 64, 100, 105, 106, 112, 114, 128, 129, 131 country of origin, 3, 7, 13, 18, 23, 27 covering, ix, 41, 99, 106 CPI, 130 credit, 100, 101, 103, 104, 105, 108, 109, 111, 114, 118, 122, 124, 125, 127, 128, 129, 130, 133, 134, 135 credit controls, 103 criminal activity, 60 CSR, 95 culture, 8, 14, 18, 23, 27, 37, 38, 53 currency, 6, 13, 17, 23, 27, 131 D data availability, data collection, 65 data set, 129 Index database, ix, 3, 41, 44, 45, 64, 67, 68, 99, 132 decision control, 40 deficit, 104 degradation, 6, 7, 13, 17, 23, 27, 68, 71, 91 demand management policies, 114 democracy, 62, 65 demographic factors, Denmark, 68, 70 dependent variable, 6, 46, 102, 107, 108 deposits, 103, 131 depreciation, 6, 7, 13, 17, 23, 27 depth, ix, 65, 99, 109, 111, 126, 128 developed countries, 41, 51, 64 developing countries, 5, 39, 112, 119, 127, 134 developing economies, 37, 42, 52, 101, 102, 111 developing nations, 101 development, 6, 64, 66, 97, 104, 106, 110, 111, 119, 120, 130, 131, 133, 134 deviation, 67 dichotomy, 125 direct investment, 132 directors, viii, 32, 36, 37, 38, 39, 40, 50, 53, 68, 92, 93 disclosure, 31, 62 distress, 118 distribution, 10, 11, 61, 78, 91, 102, 106, 108, 112 diversification, 31 diversity, 10 dominance, viii, 35, 38, 41, 103, 110, 120, 124, 125 draft, ix, 36 duality, viii, 35, 36, 38, 40, 41, 43, 44, 45, 46, 47, 50 Durbin-Watson, 110 dynamism, 9, 103 E earnings, 41, 46, 66, 98, 132 economic activity, 3, 30, 100 economic crisis, 139 economic development, 3, 5, 29, 30, 101, 105, 114, 119, 123, 124, 134, 135 economic downturn, 124 economic growth, vii, ix, 1, 2, 3, 5, 6, 7, 9, 10, 12, 15, 16, 17, 19, 24, 28, 29, 30, 32, 33, 99, 100, 101, 104, 105, 106, 108, 109, 111, 112, 113, 114, 115, 116, 117, 118, 120, 121, 122, 123, 124, 126, 127, 128, 133, 134, 135 economic growth rate, 117 economic status, 105 economics, 45 Egypt, 125 electricity, 8, 14, 18, 23, 27 emerging markets, 42, 62 empirical studies, 104, 123 employees, 131 employment, 2, 30, 63, 114, 117, 132 EMU, 64 endogeneity, 10 endogenous growth model, 104, 117 endowments, 101 energy, 8, 18, 23, 27 enforcement, 53 engineering, 42 entrepreneurship, 5, 16, 104 environment(s), 31, 38, 39, 40, 41, 42, 49, 52, 53, 67, 101, 108, 112, 125, 128 equities, 75, 80, 81, 83, 89, 91, 92 equity, 6, 37, 61, 62, 64, 68, 72, 79, 80, 81, 129, 132 equity market, 129 estimation process, 10 euphoria, 39 Europe, 2, 15, 37, 66, 95 European Monetary Union, 64 European Union, evidence, viii, 1, 3, 16, 28, 30, 33, 39, 62, 63, 64, 65, 101, 133, 134 evolution, 71 exclusion, ix, 100, 127 exercise, 53, 93, 94 expertise, 37, 105 exports, 8, 14, 18, 23, 27 external financing, 101 140 Index F factor incomes, 117 families, 4, 32, 76, 78 family firms, viii, 2, 3, 4, 5, 6, 7, 9, 10, 11, 13, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 33, 34, 43, 45, 48 family members, viii, 4, 36 family relationships, 32 FDI, 107, 114, 118, 123, 132 financial, vii, viii, ix, 2, 5, 6, 29, 30, 32, 33, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 46, 50, 51, 52, 54, 55, 56, 57, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 71, 81, 91, 92, 93, 94, 95, 96, 97, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135 financial accessibility, 100 financial analysts, ix, 60, 61, 95 financial crisis, 2, 30, 36, 118, 119 financial deepening, 101, 119, 128 Financial Depth, 108, 109, 111 financial development, 5, 100, 101, 103, 109, 110, 115, 116, 119, 120, 122, 125, 126, 127, 128, 129, 133 financial firms, financial inclusion, vii, ix, 99, 100, 101, 102, 103, 104, 105, 107, 109, 111, 122, 126, 127, 128, 129, 133 financial institutions, ix, 42, 52, 99, 100, 105, 110, 111, 114, 118, 119, 122, 123, 124, 125, 127, 128, 129 financial intermediaries, 103, 104, 111, 118, 119, 122, 125, 126, 127, 128, 130 financial liberalisation, 101 financial markets, 91, 92, 105, 111, 126 financial performance, viii, 35, 36, 38, 39, 40, 41, 43, 44, 46, 50, 51, 60, 62, 63, 64, 65, 68, 71, 92 financial resources, 102, 103, 105, 118, 130 financial sector, ix, 99, 101, 102, 103, 105, 109, 113, 118, 122, 123, 124, 125, 128, 129, 133, 134 financial sector reform(s), ix, 100, 101, 102, 103, 128 financial structure, 100, 110, 119, 125, 126 financial system, 51, 100, 101, 102, 103, 104, 106, 111, 112, 113, 119, 122, 125, 126, 127, 128, 129, 134 Finland, 68, 69, 70 firm size, 47, 76, 133 firm value, 62 flexibility, 4, 108 fluctuations, 63 food, 42 footwear, 42 force, 119, 120, 132 forecasting, 60 foreign aid, 117 foreign banks, 103 foreign direct investment, 109, 118, 132 foreign firms, 103 foreign investment, 118 formation, 66 foundations, 133 France, vii, 1, 3, 6, 11, 12, 19, 29, 36, 59, 68, 70, 81 fraud, 34 freedom, fringe benefits, 44 funding, 105 funds, 7, 14, 18, 23, 27, 128 G generalised least square model, 102 generalised method of moment (GMM), 101, 129 Germany, vii, 1, 3, 6, 11, 12, 20, 29, 62, 65, 68, 70, 81, 96 Ghana Stock Exchange, 103, 109, 111, 114 GMM, 129 goods and services, 8, 14, 18, 23, 27, 131 141 Index governance, ix, 33, 36, 37, 38, 39, 41, 42, 43, 51, 52, 59, 60, 62, 63, 64, 65, 68, 71, 92 Granger causality test, 129 graph, 110 Greece, 68, 69, 70 gross domestic product (GDP), 2, 3, 5, 6, 7,8, 9, 10, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, ,27, 29, 102, 103, 107, 108, 109, 111, 112, 113, 114, 115, 116, 117, 121, 122, 123, 130, 131, 132 GDP per capita, 107, 109, 121, 130 growth, vii, viii, ix, 1, 2, 3, 5, 6, 7, 8, 9, 10, 12, 13, 15, 16, 17, 19, 23, 24, 27, 28, 29, 30, 32, 33, 54, 55, 56, 62, 77, 99, 100, 101, 102, 103, 104, 105, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 133, 134, 135 growth rate, 6, 8, 10, 13, 17, 23, 27, 103, 114, 117, 118, 123, 131 guidance, 37 H hedging, 129 hegemony, 42 heterogeneity, 8, 9, 10, 15, 45 heteroscedasticity, 108, 110 heteroskedasticity, 15 historical data, 69, 71 holding company, 52 Hong Kong, vii, 1, 3, 6, 11, 12, 29, 32, 37, 64, 96 host, 52 hotel, 42 human, 2, 4, 5, 67 human capital, 2, human resources, 5, 67 human right(s), 67 hypothesis, 3, 4, 6, 8, 15, 16, 28, 43, 60, 62, 82, 89, 101, 110, 112 I Iceland, 68 ideal, 118 identification, 53, 122 idiosyncratic, 91, 123 IMF, 106, 119, 130, 132, 133, 134 immunity, 125 imports, 8, 14, 18, 23, 27 income, vii, ix, 49, 99, 100, 117, 119, 126, 127, 131 independence, 42, 44, 63, 125, 126 independent variable, 15, 45, 46, 107, 119, 130, 132 India, 56 Indicators, 6, 106, 130, 131, 132 individuals, 32, 53, 106 industries, 42, 65 industry, vii, 1, 3, 8, 10, 11, 12, 16, 24, 28, 29, 36, 41, 65, 112, 118 inefficiency, 46, 125 infant industries, 118 inferences, inflation, 103, 106, 107, 109, 115, 116, 131 information asymmetry, 67, 101, 118, 124 infrastructure, 53, 105 institutional infrastructure, 53 institutions, ix, 30, 36, 39, 41, 42, 51, 52, 99, 100, 102, 105, 109, 110, 111, 114, 118, 119, 122, 123, 124, 125, 126, 127, 128, 129, 130 integration, 41 interaction effect(s), 31 interest rate ceiling, 103 interest rates, 103 internal controls, 68, 92 International Monetary Fund(IMF), 106, 130, 131, 132 intervals, 97 investment(s), 5, 7, 14, 18, 23, 27, 37, 42, 53, 63, 68, 73, 75, 83, 90, 92, 101, 104, 109, 111, 118, 122, 126, 129, 132, 134 investment bank, 37 investment model, 134 investors, 60, 61, 66, 71, 83, 91, 92, 132 142 Index IPO, 54 Ireland, 68, 69, 70 isolation, ix, 100, 128 issues, ix, 3, 93, 99 Italy, vii, 1, 3, 6, 10, 11, 12, 21, 27, 28, 29, 36, 37, 68, 69, 70, 81 J Jamaica, 125 Japan, vii, 1, 3, 6, 10, 11, 12, 21, 27, 29 job creation, jurisdiction, 38 K Kenya, 125 Kernel, 106, 108, 112 Keynesian, 114 L labour force, 132 labour market, 37, 52 landscape, 126 Latin America, 37, 134 law enforcement, 41 laws, ix, 36, 38, 41, 42, 43, 52, 53 lead, 40, 44, 50, 51, 72, 73, 117, 118 leadership, 40, 41, 43, 46 learning, 44, 66 legal issues, 30 legend, 121 legislation, 44 lending, 103, 112, 118, 124 Lerner Index, 109, 112, 123, 130, 134 liberalisation, 103 light, ix, 100, 101, 124, 127, 128 linear function, 108 linear model, 102, 118 liquidity, 100, 101, 111, 123, 126, 128 litigation, 37 living conditions, 30 loans, 117, 118, 124, 132 long-term performance, 60, 92 low risk, 90 loyalty, M machinery, 42 magnitude, 117, 118 majority, 103, 106, 119 Malaysia, 56, 133 management, 4, 5, 30, 31, 34, 38, 40, 41, 44, 46, 48, 50, 52, 93, 132 manufacturing, 7, 14, 18, 23, 27, 33 marginal costs, 130 market, vii, ix, 6, 7, 8, 9, 13, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 41, 43, 44, 47, 49, 51, 52, 59, 60, 61, 62, 64, 66, 67, 68, 69, 71, 74, 75, 76, 77, 78, 81, 82, 83, 85, 87, 88, 89, 90, 92, 96, 99, 100, 101, 105, 106, 109, 110, 111, 112, 113, 114, 119, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 134 market capitalization, 69, 77, 81, 106, 123, 130, 131 market position, 47 Market Power, 112 market segment, 62 market structure, 112, 124 market-based system, 119 marketing, 42 materials, viii, 2, 3, 8, 18, 23, 27, 42 matrix(es), 49, 106 matter, 64, 127, 128, 133 maximum likelihood estimate, measurement, 61, 74, 134 media, 30, 42 median, 77, 115, 124 mergers, 31, 41 methodology, vii, viii, ix, 1, 30, 34, 35, 39, 60, 61, 72, 78, 83, 130 micro-econometric, 107, 133 microeconomic theory, 123 Middle East, 37 migrants, 131 military, 49 143 Index model specification, 10, 34 models, 9, 15, 16, 33, 37, 106, 107, 109, 112, 114 modern economies, vii, momentum, 76, 77, 78 monetary expansion, 117 monetary growth rate, 103, 117, 123 monetary policy, 117 money, 109, 129, 130, 131, 133, 134 monopolistic-competition, 112 monotonic, 113 moral hazard, 124 motivation, 16 multicollinearity, 15, 107, 110 multiple factors, 104 multiple regression, viii, 15, 35 multiple regression analysis, 15 multiplier, 105 OECD, 56, 64, 131, 132 officials, 49 oil, 118 OLS, 102, 106, 107, 108, 110, 112 openness, operations, 5, 128, 131 opportunism, 47 opportunities, 5, 30, 31, 101 ordinary least square (OLS), 102, 107 overhead costs, 109, 131 oversight, 36 ownership, vii, viii, 5, 6, 7, 13, 18, 23, 27, 29, 30, 31, 33, 35, 36, 37, 38, 40, 42, 43, 44, 45, 47, 48, 49, 50, 51, 52, 63, 103, 122, 133 ownership structure, vii, viii, 5, 29, 31, 35, 38, 42, 43, 45, 49, 50, 52 P N national income, 132 national product, 116 natural resources, 6, 7, 13, 17, 23, 27 negative effects, 123 negative relation, 112, 116 net profit margin, 62, 64 Netherlands, 68, 69, 70 neutral, 62, 77 New Zealand, 99 Nigeria, viii, 35, 36, 38, 39, 41, 42, 43, 44, 49, 52, 53 non-parametric, 106, 111 normal distribution, 15 Norway, 68, 70 NPL, 132 nuclear family, 45 null, 15, 66, 67, 78, 82, 110, 112 null hypothesis, 15, 78 O objectivity, 93 obstacles, 106 Pacific, 135 paints, 42, 125 parallel, 78 parameter estimates, 120, 125 participants, vii, ix, 1, 59, 66, 101 pathway, 127 per capita GDP, 114, 116 percentile, 114, 124 petroleum, 42 policy, viii, ix, 2, 36, 38, 40, 42, 100, 102, 103, 117, 127, 128, 129 policy makers, viii, ix, 2, 36, 38, 100 political ideologies, 36 political leaders, 49 poor performance, 40 population, 7, 13, 18, 23, 27, 102, 130 portfolio, 62, 65, 66, 67, 73, 74, 75, 76, 79, 82, 83, 85, 87, 88, 89, 90, 92, 132 portfolio management, 66 Portugal, 68, 69, 70 positive correlation, 29, 64, 65 positive relationship, 3, 5, 49, 112, 115, 117, 118, 122, 123, 124 primary function, 50 principles, 37, 42, 64 144 Index private investment, 117 private remittance, 109, 117, 123 private sector, 103, 108, 111, 114, 118, 122, 124, 128, 129, 130 privatization, 43 probability, 72 producers, 6, 13, 17, 23, 27, 130 product market, 52 productive capacity, 114 professionals, 53 profit, 45, 46, 48, 63 profit margin, 63 profitability, 49, 60 project, vii, proposition, 63 prosperity, 117 psychology, 33 public corporations, 42, 43 public domain, 38 public sector, 2, 103 publishing, 37, 42 Q quality of life, viii, quantile, ix, 99, 100, 102, 106, 107, 108, 110, 112, 114, 118, 124, 127, 135 quantile regression, ix, 99, 100, 102, 106, 107, 110, 114, 127, 135 R ratio, 41, 64, 74, 75, 76, 77, 81, 103, 108, 109, 111, 113, 114, 122, 123, 131, 132 real estate, 42, 131 real per capita GDP, 102 reality, 72, 114, 118, 123, 125 recession, 124 recognition, 123, 128 recommendations, 38, 53, 63, 65, 97, 127 recruiting, 53 reform(s), 53, 60, 101, 102, 103, 124, 126, 129 refugees, 7, 13, 18, 23, 27 regression, 7, 8, 9, 16, 27, 28, 30, 45, 49, 50, 51, 53, 54, 100, 102, 106, 107, 110, 111, 112, 114, 119, 127, 135 regression analysis, 16 regression model, 110, 127 regulations, 38, 103 regulatory framework, 101, 129 relatives, 43 relevance, 93, 123 remittances, 117, 131, 133 requirements, 44, 51, 112 researchers, 2, 39, 41, 117, 128, 129 resilience, 118 resistance, 125 resource allocation, 123 resources, 4, 5, 13, 17, 23, 27, 34, 43, 46, 49 response, 29, 100, 103, 105 responsiveness, 40 restrictions, 44 restructuring, 43, 103 rights, 38, 44, 62, 63, 94 risk(s), 60, 61, 65, 66, 67, 73, 74, 78, 90, 91, 92, 93, 96, 97, 98, 100, 101, 105, 123, 125, 129, 134 risk assessment, 93 risk factors, 65, 67 risk management, 105 risk pooling, 105 risk taking, 90 risk-taking, 134 robustness, ix, 65, 67, 99, 101, 102, 107, 108, 110, 112 rules, 43, 53 S SAP, 43, 102 Sarbanes-Oxley Act, 36 savings, 101, 104, 105, 109, 111, 114, 116, 117, 122, 131, 132 scope, viii, securities, 74, 75, 76, 83, 110 security, vii, 1, 71, 73, 75, 89 sensitivity, 109 145 Index services, 42, 105, 110, 111, 124, 125, 126, 128 shape, 4, 128 shareholder value, 39 shareholders, 5, 37, 39, 40, 43, 44, 45, 46, 50, 52, 62, 63, 64, 68, 91, 92, 93, 94 showing, 60 SIC, 65 signals, 100, 104 significance level, 112 signs, 125 skewness, 74, 78, 83, 89, 106 small business(es), 100, 105 small firms, 106 social capital, social responsibility, 31, 37, 61 social welfare, vii, society, 8, 14, 18, 23, 27, 30, 100, 105 South Africa, 37 Spain, vii, 1, 3, 6, 10, 11, 12, 22, 27, 29, 68, 70, 81 specific knowledge, spending, 104 Sri Lanka, 135 stability, 90, 118 stakeholders, 60, 66, 92 standard deviation, 61, 64, 79, 88, 89, 90, 106 standard error, state, 41, 103 statistics, 13, 48, 49, 72, 83, 89, 106, 115 Stewardship Theory, 55, 56 stock, vii, ix, 7, 14, 18, 23, 27, 44, 45, 59, 60, 61, 62, 63, 64, 66, 67, 68, 71, 73, 76, 77, 89, 92, 95, 98, 100, 104, 110, 111, 113, 119, 122, 123, 124, 125, 126, 127, 128, 130, 133 stock exchange, 7, 14, 18, 23, 27, 100 stock market development, 111, 122, 123 stock markets, 123, 127, 128, 133, 134 stock price, 60, 66, 92, 95, 98 stock returns, ix, 59, 60, 61, 62, 64, 66, 67, 68, 71, 73 structural adjustment, 126 Structural Adjustment Program (SAP), 43, 102 structure, vii, 1, 4, 15, 38, 39, 40, 41, 42, 43, 46, 52, 100, 110, 112, 119, 125, 126, 127 structuring, 79 styles, 37 Sub-Saharan African, 119 supervision, 103 supplier, 67 survival, 2, survivors, 41 sustainability, 53 Sweden, 68, 70 Switzerland, 63, 68, 70, 81 synthesis, 33 T takeover, 62 tax evasion, 52 taxes, 6, 13, 17, 23, 27, 130 techniques, 3, 29, 107 technologies, 123 technology, 42, 118 testing, 10, 33, 34, 100, 112, 129 textiles, 42 theory, viii, 4, 32, 33, 34, 36, 37, 38, 39, 40, 41, 46, 50, 52, 55, 56, 98, 114, 117, 118, 123, 134, 135 time series, 8, 92 tobacco, 42 total factor productivity, 104 tourism, 42 trade, 116, 123 trade-off, 116 training, 53 transaction costs, 101, 105 transactions, 73 transparency, 91 transportation, 8, 10, 18, 23, 27, 42 treatment, 94 triggers, 90 turnover, 114, 131 146 Index U unemployment, 109, 116, 132 unemployment rate, 109, 116 unification, 48 United Kingdom, 37, 68, 70, 96 United States (USA), vii, 1, 2, 3, 6, 11, 12, 15, 23, 29, 36, 37, 64, 67 V vacuum, 122 valuation, 62, 63, 64, 74, 76, 95 variables, 5, 7, 8, 9, 15, 18, 23, 27, 30, 47, 49, 106, 109, 112, 119, 122 variations, vehicles, 7, 14, 18, 23, 27 vision, volatility, ix, 60, 61, 67, 78, 79, 87, 88, 89, 90, 92 vote, 94 voting, 94 W wages, 131 water, 8, 14, 18, 23, 27 weakness, 39 wealth, vii, 1, 5, 16, 30, 31, 32, 34, 39, 63, 83 West Africa, 128 Western Europe, 33 workers, 131, 133 workforce, World Bank, ix, 6, 99, 106, 118, 130, 131, 132, 133, 134 worldwide, vii, 1, 3, 5, 6, 29, 30 Z Zimbabwe, 125 ... community and the national and international economic structure To analyse its impact on the economy, this chapter empirically examines the effect of the value generated by family business on economic. .. determinant of economic growth This added value is considered to be a crucial factor in any analysis of economic growth, in view of its positive effect on economic activity and growth In order...BUSINESS, TECHNOLOGY AND FINANCE FINANCIAL PERFORMANCE ANALYSIS, MEASURES AND IMPACT ON ECONOMIC GROWTH No part of this 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